Answer:
Option D : Debit to WIP Inventory - Coloring and Credit to WIP Inventory - Finishing
Explanation:
Definition of Finish Goods Inventory:
Finish Goods means having a product that is ready for the dispatch(consumer) after the completion of all processes of manufacturing. i.e. Molding, Coloring, Finishing for the process in hand.
Therefore Finish Goods Inventory will be the products which we receive after the completion of Finishing process not after the coloring process.
Considering the above statement, Option A & Option B get omitted from the possible correct options.
Thus we are left with only Option C & Option D:
As we know that:
Credit is something due towards a process(person) and increase the liability of respective process or person.
Debit is something given by a process (person) and decreases the liability of respective process or person.
On seeing the definitions of credit & debit, if frishbees are being transferred from coloring to finishing process, then it should be debited from the coloring process's account as it has handed over the product while decreasing it's liability and,
It should be credited to the finishing process's account as it has received the product to work on while increasing it's liability.
Taking the above explanation into consideration:
Option D is our only true choice.
Answer:
A. Customers play important productive roles especially in the creation and delivery of some repeatable services. The roles a customer plays "as a productive resource for the firm" include:
1. The customers act as some partial employees in enhancing the productivity of the firm.
2. The customers contribute to the organization by supplying their valuable time, effort, ideas, and other resources.
3. Without customers playing productive roles, some services cannot be provided to them. Sometimes, the customers actively serve themselves. A typical example is at restaurants and other self-service firms.
4. Customers suggest valuable solutions to resolve some product and service problems.
B. At shopping malls, and even calling for the services of a plumber or electrician,the customer serves in many ways. She pushes the trolley around to pick the goods she requires and afterward, pushes them to the cashier for payment. She helps the plumber or electrician with repair materials or make suggestions on how to solve repair problems.
C. The customer sometimes feel that the plumber or electrician would mess up the repairs without their thoughtful input.
D. Some firms help the customer to perform this role as "a productive resource" when they provide serviceable trolleys for shopping or when they send in some respectful and competent repair people, who dress decently without oozing some offending odor.
Explanation:
It is only some discourteous firms that do not recognize that their customers play an important role as a productive resource. For some service organizations, their services cannot be consummated without the active participation of the customer. It is, therefore, imperative that firms help their customers to perform this role effectively and efficiently.
The customer can act as a productive resource for a firm through co-creation of value. This involves a customer actively participating through offering ideas, suggestions, and feedback, or even taking part in the production process. An example is participating in a customer survey for a restaurant, where the feedback provided helps shape the restaurant’s services and offerings.
In the context of a business, a customer can also act as a productive resource. This is often referred to as co-creation of value. It means that a customer could directly or indirectly be involved in the production process of the goods or services that they consume. This involvement could come in the form of ideas, suggestions, feedbacks, or active participation in the production process.
For instance, let’s say I once participated in a customer survey for a restaurant where I frequently dine. My feedback about their menu, services, and ambience shaped their decision-making process to some extent. This made me feel valued and part of the restaurant's growth and improvement, which is a positive feeling. The restaurant helped me to perform my role effectively by encouraging feedback, implementing suggestions, and communicating subsequent changes. This reciprocal relationship benefited both me as a customer and the restaurant as a business.
#SPJ11
Answer:
the WACC is 8.65%.
Explanation:
Total firm capital = $450,000 + $150,000 + $350,000
= $950,000
Weight of debt in the capital structure = $450,000/ $950,000
= 47.37%
Weight of preferred stock in the capital structure
= $150,000/ $950,000
= 15.79%
Weight of common stock in the capital structure
= $350,000/ $950,000
= 36.84%
The weighted average cost of capital is calculated using the below formula:
WACC= Wd*Kd(1 - t) + Wps*Kps + We*Ke
where:
Wd = Percentage of debt in the capital structure.
Kd = The before tax cost of debt
Wps = Percentage of preferred stock in the capital structure
Kps = Cost of preferred stock
We = Percentage of common stock in the capital structure
Ke = The cost of common stock
T = Tax rate
WACC = 47.37%*8%*(1 – 0.30) + 0.1579*10% + 36.84%*12%
= 2.65272% + 1.5790% + 4.4208%
= 8.65252%
Therefore, the WACC is 8.65%.
The Weighted Average Cost of Capital (WACC) can be calculated by determining the weight of each component of the firm's capital structure and multiplying it by its respective cost. In this case, the WACC is 8.03%.
To calculate the Weighted Average Cost of Capital (WACC), we need to determine the weight of each component of the firm's capital structure and multiply it by its respective cost. The formula for WACC is:
WACC = (Debt / Total Capital) * Cost of Debt + (Preferred Stock / Total Capital) * Cost of Preferred Stock + (Common Stock / Total Capital) * Cost of Common Stock
Using the given information:
Debt = $450,000, Preferred Stock = $150,000, Common Stock = $350,000
Cost of Debt = 8%, Cost of Preferred Stock = 10%, Cost of Common Stock = 12%
We can substitute these values into the formula to calculate the WACC:
WACC = (450,000 / (450,000 + 150,000 + 350,000)) * 8% + (150,000 / (450,000 + 150,000 + 350,000)) * 10% + (350,000 / (450,000 + 150,000 + 350,000)) * 12%
Simplifying the equation:
WACC = 0.4 * 8% + 0.133 * 10% + 0.31 * 12%
Calculating the percentages:
WACC = 0.032 + 0.0133 + 0.0372
WACC = 8.03%
#SPJ3
Answer:
14.70 m
Explanation:
The computation of estimated total capital investment (direct indirect) for the smaller 6-MW farm is shown below:-
Cost of 6MW plant = Cost of 7MW today × (Index today ÷ Index in past) × (Capacity of 6MW plant ÷ Capacity of 7MW plant )^Cost capacity factor
= = 1.1 × 10m × (600 ÷ 400) × (6 ÷ 7)^0.75
= 14.6985
or
= 14.70 m
So, for computing the cost of 6MW plant we simply applied the above formula.
Answer:
15600 , 13600
Explanation:
Annual Depreciation = [Cost of Asset - Salvage Value] / Expected use years
Year 1 Beginning : Cost = $82000 , Salvage Value = $4000, Years = 5
So, Annual Depreciation = [82000 - 4000] / 5
= 78000 / 5 = 15600
Year 4 Beginning : {3 Years gone, 2 years left}
Asset Value remaining = Cost - [(Annual Depreciation)(Years)]
= 82000 - [(15600)(3)]
= 82000 - 46800 = 35200
Dep. = [Cost - Scrap Value] / Years
= [35200 - 8000] / 2
= 27200/2 = 13600
Answer:
See answers below
Explanation:
a. Direct materials & supplies $40,000 = $40,000 × 110%
= $44,000 × 20,000/25,000
= $35,200
Employee costs = $2,900,000 × 105%
= $3,045,000 × 20,000/25,000
= $2,346,000
Variable overhead = $600,000 × 100%
= $600,000 × 20,000/25000
= $480,000
Fixed overhead = $700,000 × 105%
= $735,000
b. Total costs per unit year 2 =
$3,596,000 / 20,000
= $179.81
Answer:
Employee costs for year 2 should be $2,436,000.
Total costs in year 2:
$35,200+$2,436,000+$480,000+$735,000=$3,686,200
b) Total costs per billable hour for year 2=$3,686,200/20000=$184.31
Explanation:
b. Prevent all losses
c. Ensure reliable accounting
d. Control the entry operation
Answer:
C
Explanation:
An internal control system is used to ensure reliable accounting. Internal controls system can be defined as a given set of rules, policies, and procedures an organization puts in place to give direction, increase efficiency and strengthen how people follow to policies.