BUSINESS COLLEGE

Production estimates for August for Jay Company are as follows: Estimated inventory (units), August 1 12,000
Desired inventory (units), August 31 9,000
Expected sales volume (units), August 75,000

For each unit produced, the direct materials requirements are as follows:
Material A ($5 per lb.) 3.0 lbs.
Material B ($18 per lb.) 0.5 lb.

The total direct materials purchases (assuming no beginning or ending inventory of material) of Materials A and B required for August production is ______.

a.$1,170,000 for A; $702,000 for B
b.$1,080,000 for A; $1,296,000 for B
c.$1,080,000 for A; $648,000 for B
d.$1,125,000 for A; $675,000 for B

Answers

Answer 1

Answer:

Answer:

c.$1,080,000 for A; $648,000 for B

Explanation:

For computing the total direct material purchase first we have to find out the production units which are shown below:

As we know that

Production units = Ending inventory units + sales units - beginning inventory units

= 9,000 units + 75,000 units - 12,000 units

= 72,000 units

Now the total direct material purchase for Material A and Material B is

For Material A

= 72,000 units × 3 lbs × $5 per lb

= $1,080,000

For Material B

= 72,000 units × 0.5 lbs × $18 per lb

= $648,000

Therefore, the third option is correct

Related Questions

Seasons Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1,550,000 each quarter. The total contract price is $18,600,000 and Seasons estimates total costs of $17,750,000. Seasons estimates that the building will take 3 years to complete, and commences construction on January 2, 2018. 18). Seasons Construction completes the remaining 25% of the building construction on December 31, 2020, as scheduled. At that time the total costs of construction are $18,750,000.What is the total amount of Revenue from Long-Term Contracts and Construction Expenses that Seasons will recognize for the year ended December 31, 2020?Revenue Expenses(A) $18,600,000 $18,750,000(B) $4,650,000 $ 4,687,500(C) $4,650,000 $ 5,250,000(D) $4,687,500 $ 4,687,500
Answer the following questions using the information below: Cannady produces six products. Under their traditional cost system using one cost driver, SR6 costs $168.00 per unit. An analysis of the activities and their costs revealed that three cost drivers would be used under the new ABC system. The new cost of SR6 was determined to be $178.00 per unit. Given this change in the cost ________.
The supply of money increases whena. the value of money increases.b. the interest rate increases.c. the Federal Reserve purchases bonds.d. velocity increases.
An Engel curve:________. A. slopes upward for normal goods and downward for inferior goods. B. slopes upward for inferior goods and downward for normal goods. C. slopes downward for both normal and inferior goods. D. slopes upward for both normal and inferior goods.
The research and development division of Anchor Inc., a manufacturing firm, has a sizeable number of engineers for its employees. The buying decisions related to the equipment to be used in the research and development of new technologies is primarily made by the engineers. Based on these traits, which of the following organization-specific factors is most relevant in the division's purchasing process? a. Monopolization b. Segmentation c. Orientation d. Centralization

Tyrone and Akira, who are married, incurred and paid the following amounts of interest during 2019: Home acquisition debt interest $ 15,000
Credit card interest 5,000
Home equity loan interest (used for home improvement) 6,500
Investment interest expense 10,000
Required: With 2019 net investment income of $2,000, calculate the amount of their allowable deduction for investment interest expense and their total deduction for allowable interest. Home acquisition principal, and the home equity loan principal combined are less than $750,000.

Answers

Answer:

The Investment Interest (limited to Investment income) = $2,000

Allowance deduction for Interest

Investment interest $2,000

Home acquisition debt interest $15,000

Home equity loan interest $6,500

$23,500 - Before phase out limits

Final answer:

In 2019, Tyrone and Akira can deduct $21,500 in home and home equity loan interest, and $2,000 of their investment interest, which adds up to a total deductible interest amount of $23,500.

Explanation:

In 2019, Tyrone and Akira can deduct the Home acquisition debt interest, Home equity loan interest (given it was for home improvements), and Investment interest expense to an extent.

Their Home acquisition debt interest and Home equity loan interest are fully deductible, giving them a total of $21,500 ($15,000 + $6,500) in deductible interest. The credit card interest is non-deductible.

As for the Investment interest expense, it can only be deducted up to the level of their net investment income. Therefore, of their $10,000 investment interest expense, only the $2,000 that corresponds to their net investment income is deductible in 2019. Any leftover deductible interest may be carried over to the next year.

So in total, they can deduct $23,500 ($21,500 + $2,000) in interest in 2019.

Learn more about Interest Deduction here:

brainly.com/question/34643706

#SPJ3

A 7X Corp.just paid a dividend of $2.30 per share. The dividend are expected to grow at 23 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 15 percent, what is the price of the stock today?

Answers

Answer:

Price of stock=$ 77.88

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

The price of the stock will the sum of the present value of the growing annuity and the growing perpetuity

Present value of dividend from year 1 to 8

The PV of the growing annuity = A/r-g) ( 1- (1+g)/(1+r)^n )

A- dividend payable now , r- required of return, g-growth rate, number of years

PV = (2.30×1.23)/(0.15-0.23)× (1- (1.23/1.15)^8) = 25.199

PV of Dividend from year 9 and beyond:

P = D× g/(r-g)

This will be done in two steps:

Step 1: PV(in year 8)of dividend = 2.30× 1.23^8×1.07/(0.15-0.07) = 161.16

Step 2 : PV in year 0 = 161.16× 1.15^(-8)= 52.684

PV of Dividend from year 9 and beyond = 52.684

Price of stock = 25.19 + 52.68= 77.88

Price of stock=$ 77.88

The future of cities in the United States and in other countries will be determined by their ability to benefit from the _________________ and to minimize or counterbalance the ______________________.

Answers

Answer:

The correct answer is letter "B": Economies of agglomeration; corresponding diseconomies.

Explanation:

Economies of agglomeration refer to a type of economy in which companies are located one close to another to take advantage of their core competencies. This economic structure typically helps businesses to reduce relocation and delivery costs increasing their profits but in some other cases, the costs could increase if some of the firms lost their economies of scale.

Thus, metropolises in the U.S. must find ways to boost the benefit of economies of agglomeration minimizing the negative effects of the diseconomies of scale in which some firms might fall.

Gus buys cupcakes every saturday morning. when he walks into the bakery, he always orders by saying, "give me $10 worth of cupcakes." what does this tell you about gus's elasticity of demand for cupcakes?

Answers

Elasticity of demand measures the responsiveness of quantity demanded to a change in the price of the good.

a. Perfectly elastic - The good is perfectly elastic when the consumer is ready to buy any quantity at a fixed price.

b. Perfectly inelastic- The good is perfectly inelastic when the change in the price of the good has not effect on its demand, that is when quantity demanded is same at whatever price.

So, because here Gus is ready to buy any units of cupcakes at a fixed price of $10, the demand for cupcakes should be perfectly elastic.

Name a time you believe you applied the utility maximization rule. What were the goods or services you chose to maximize your utility? How did this relate to your budget constraint?

Answers

Answer and Explanation:

Utility maximization rule is fundamentally the most extreme fulfillment got from utilization of an item.

Like picking between a modest or costly lodging while a costly inn would be high in quality however a tolerably charged inn would likewise offer fulfillment to the purchaser.

The decision relies upon the salary spending plan of the shopper and there are requirements to the purchaser as far as the decisions accessible relying upon costs and pay.

Lyme Home has 5,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 7.65 percent. Interest is paid semiannually. What is the amount of the annual tax shield on debt if the tax rate is 23 percent

Answers

if the tax rate is 23%, the amount of the annual tax shield on debt will be $87,975.

Total Interest = Total Bonds * Face Value * Coupon Rate

Total Interest = (5,000 bonds*$ 1,000) * 7.65%

Total Interest = $5,000,000 * 7.65%

Total Interest = $ 382,500

Annual Tax Shield =Total Interest * Tax Rate

Annual Tax Shield = $382,500*23%

Annual Tax Shield = $87,975

In conclusion, if the tax rate is 23%, the amount of the annual tax shield on debt is $87,975.