Answer:
Part 1 . Determine the cost of goods manufactured
Direct materials $280,000
Direct labor $324,000
Factory overhead $188,900
Add Opening Stock of Work In Progress Inventory $72,300
Less Closing Stock of Work In Progress Inventory $76,800
Cost of Goods Manufactured $788,700
Therefore cost of goods manufactured is $788,700
Part 2 . Statement of Cost of Goods Manufactured
Opening Stock of Finished Goods Inventory 39,600
Add Cost of Goods Manufactured 788,700
Less Closing Stock of Finished Goods (41,200)
Cost of Goods Manufactured 787100
Explanation:
Part 1 . Determine the cost of goods manufactured
This is a calculation of all Overheads Incurred in the Manufacturing process
Part 2 . Statement of Cost of Goods Manufactured
It is Important to note that Glenville Company is in the Manufacturing Business and their Cost of Sales cost from cost of Finished Goods.This would be the statement available for external use
Answer:
4.76% and 0.5
Explanation:
The computation is shown below:
Average borrowing rate is
= Cost of debt capital ÷ (1 - tax rate)
= 3% ÷ (1 - 0.37)
= 4.76%
And, the market beta is
Cost of equity = Risk free rate of return + Beta × (Market risk premium - risk free rate of return)
5% = 2.5% + Beta × 5%
So, the beta is 0.5
The (Market risk premium - risk free rate of return) is also known as market risk premium
The average pre-tax borrowing rate for Abbott Laboratories is 4.8%. The market beta cannot be calculated without additional information.
The computations for the average pre-tax borrowing rate and market beta for Abbott Laboratories (NYSE: ABT) require different approaches. The estimate provided in the question, 3.0%, is an after-tax cost of debt capital so to find the pre-tax cost of debt, we need to adjust this rate for the tax impact. You would use the formula: pre-tax cost of debt = after-tax cost of debt / (1 - tax rate). Plugging the given values in, we get:
3.0% / (1 - 0.37) = 4.76%,
rounded to 4.8%.
As for the market beta, additional information would be needed that was not provided in the question, such as the covariance of ABT's stock return with the return on the overall market, and the variance of the market's return. Because of this, the market beta cannot be calculated with the provided information. This underlines the importance of clear and detailed information in solving financial analysis problems.
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b. Segmentation
c. Orientation
d. Centralization
Answer:
The correct answer is letter "C": Orientation.
Explanation:
The primary organization-specific factors are orientation, size of the organization, and degree of centralization. Orientation refers to the function of a company that controls the decisions in regards to purchases. The size of the organization implies decision making will be more centralized in larger firms while more decentralized in smaller firms. Finally, the degree of centralization states that even in highly autonomous corporations, some purchases might be subject to the approval of a manager who confirms the need for the assets being acquired.
Because in Anchor Inc. the purchase decisions are made by engineers the orientation organization-specific factor is more relevant in that company.
b. compensating differential
c. taste-based discrimination
d. not clear why XYZ did not match the other firm's offer
Answer:
The correct answer from the options given is D)
It is not clear why XYZ did not match the other firm's offer.
Explanation:
Alejandro is already an employee at XYZ Tech Corp. If his boss is willing to let him go, it may be because they are unable to match the higher salary being offered by the competition.
Another theory is that Alejandro is no longer very productive in the current company. There is a myriad of possible reasons. However, none of these are hinted in the question.
What we know is that he is Hispanic, He is a computer programmer and he got a better offer which his current company is unable to match.
We cannot posit that this is an issue of statistical discrimination. Why? We don't know that his current boss is not Hispanic as well.
A) Statistical Discrimination arises when agents make use of an individual's measurable trait to draw conclusions regarding another characteristic important to the interaction but more difficult to detect. This clearly is not the case.
B) When the factors surrounding a job suddenly become more adverse, the employee can reject such a change. Sometimes a company may offer such employee(s) additional money to their salary for them to accept such changes. This additional money or benefit is called Compensating Differential.
This also is clearly not the case.
C) Taste-based discrimination simply examines an employer's disposition to hiring a minority applicant. This theory posits that the prejudice of an employer towards people from a minority group will ultimately affect hiring decisions.
Again, this is not the picture painted in the above scenario.
So we are left with option D as the correct answer.
Cheers!
Corporate limited liability refers to a legal concept that separates the assets and liabilities of a corporation from those of its owners (shareholders). In essence, it means that the personal assets of shareholders are protected from the debts and liabilities of the corporation.
If the corporation incurs losses or is faced with legal claims, the shareholders are generally not personally responsible for covering these losses beyond the extent of their investment in the company. Their liability is limited to the amount they have invested in the form of shares.
This protection encourages individuals to invest in corporations without fear of losing their personal assets in case the company faces financial difficulties or legal issues.
However, it's important to note that limited liability does not shield shareholders from all liabilities; there are exceptions, such as instances of fraud or illegal activities.
Nevertheless, for most business activities, limited liability is a fundamental principle that encourages entrepreneurship and investment in corporate entities while mitigating personal financial risk for shareholders.
For more such questions on Corporate limited liability
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Answer: the extent of the assets of the corporation. Limited liability means that corporate owners (stockholders) and limited partners are responsible for losses only up to the amount they invest. Their other personal property is not at risk.
Explanation: