Madoff Construction Company uses the percentage of completion method (cost to cost method) for their long term construction contracts.....
They were working on a contract for which they would receive $900,000 at completion....
In 2024, they reported a gross profit of 58,440.....
2025 was a disastrous year for the company. As of the end of the year, they had incurred costs of $800,000 (which includes costs for both 2024 and 2025) , and think it is going to cost 120,266 to finish the project.
How much of a loss should they report in 2025? (Enter the loss as a positive number...Example: loss of "150,000".)
In: Accounting
Eastern Townships Limited currently has no debt. Their cost of borrowing is 7%. The firm’s cost of capital is currently 10.5% and the tax rate is 40%. There are no costs of financial distress.
a) What is the company’s cost of equity?
b) If the firm converts to 35% debt, what will it’s cost of equity be?
c) If the firm converts to 45% debt, what will it’s cost of capital (WACC) be?
In: Finance
Why is it mathematically correct that the Marginal Cost curve crosses the average total cost curve at its lowest point? Show your work using graphs
In: Economics
Q1) Discuss the differences between the constant opportunity cost and the increasing opportunity cost in terms of Production Possibility Curve. ie.) the shapes of PPC and the main assumption behind these two. (2 points)
Q2) Discuss the differences between macroeconomics and microeconomics.(2 points)
Q3) Compare "Change in Demand " with " Change in Quantity demanded" . Discuss causes and shape of curve.(2 points).
Q4) At what price does Shortage and Surplus occur ? Once a market has shortage and Surplus, then what happens to the market price? (2 points)
Q5) If an increase in Demand is larger than an increase in Supply, discuss equilibrium price and output sales. ( 2 points)
In: Economics
What is the difference between a direct and indirect cost? Variable versus fixed cost? What are the differences in accounting for inventoriable (product) versus period costs?
In: Accounting
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In the short-run, in comparing the change in total variable cost (TVC) and total cost (TC) associated with an additional unit of output, |
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The short-run marginal product of a variable input has an inverse relationship with the: |
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In: Economics
Statement of Cost of Goods Manufactured for a Manufacturing Company
Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows:
| Inventories | January 1 | January 31 | ||
| Materials | $231,500 | $201,410 | ||
| Work in process | 155,110 | 134,940 | ||
| Finished goods | 120,380 | 136,960 | ||
| Direct labor | $416,700 | |
| Materials purchased during January | 444,480 | |
| Factory overhead incurred during January: | ||
| Indirect labor | 44,450 | |
| Machinery depreciation | 26,850 | |
| Heat, light, and power | 9,260 | |
| Supplies | 7,410 | |
| Property taxes | 6,480 | |
| Miscellaneous costs | 12,040 | |
a. Prepare a cost of goods manufactured statement for January.
| Sandusky Manufacturing Company | |||
| Statement of Cost of Goods Manufactured | |||
| For the Month Ended January 31 | |||
| Work in process inventory, January 1 | $ | ||
| Direct materials: | |||
| Materials inventory, January 1 | $ | ||
| Purchases | |||
| Cost of materials available for use | $ | ||
| Materials inventory, January 31 | |||
| Cost of direct materials used in production | $ | ||
| Direct labor | |||
| Factory overhead: | |||
| Indirect labor | $ | ||
| Machinery depreciation | |||
| Heat, light, and power | |||
| Supplies | |||
| Property taxes | |||
| Miscellaneous costs | |||
| Total factory overhead | |||
| Total manufacturing costs incurred during January | |||
| Total manufacturing costs | $ | ||
| Work in process inventory, January 31 | |||
| Cost of goods manufactured | $ | ||
In: Operations Management
To calculate the after-tax cost of debt, multiply the before-tax cost of debt by .
Perpetualcold Refrigeration Company (PRC) can borrow funds at an interest rate of 11.10% for a period of four years. Its marginal federal-plus-state tax rate is 25%. PRC’s after-tax cost of debt is (rounded to two decimal places).
At the present time, Perpetualcold Refrigeration Company (PRC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,136.50 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 25%. If PRC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.)
7.64%
6.11%
6.88%
9.17%
In: Finance
6. A manufacturer produces certain items at a labor cost of P315.00 each, material cost of P100.00 each and variable cost of P3.00 each. If the item has a unit price of P995.00, how many units must be produced each month for the manufacturer to break even if the monthly overhead is P461,600.00?
7. A company produces a certain commodity. The labor and material cost for each item produced is P112.00. Other variable cost is P67.00 per unit. The fixed monthly cost is P316,000.00. If each item is to be sold at P425.00, determine the number of units that must be produced per month in order to break-even.
8. A machine has a first cost of P200,000 with a scrap value of P25,000 at the end of its economic life of 10 years. Find its book value after 8 years using the Double Declining Balance Method.
9. An engineer bought an equipment for P500,000. Other expenses, including installation, amounted to P30,000. At the end of its estimated useful life of 10 years, the salvage value will be 10% of the first cost. Using the straight-line method of depreciation, what is the book value after 5 years?
10. An equipment costs P10,000 with a salvage value of P500 at the end of 10 years. Calculate the annual depreciation cost by sinking fund method at 4% interest.
PLEASE ANSWer all question... I just need help i dont have enough question to post more I`m a poor student.. here... I just want help.. if you cant answer them dont post so someone who can help.. would answer it..
In: Accounting
Factory Overhead Cost Variances
The following data relate to factory overhead cost for the production of 8,000 computers:
| Actual: | Variable factory overhead | $188,200 |
| Fixed factory overhead | 61,750 | |
| Standard: | 8,000 hrs. at $29 | 232,000 |
If productive capacity of 100% was 13,000 hours and the total factory overhead cost budgeted at the level of 8,000 standard hours was $255,750, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4.75 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Variance | Amount | Favorable/Unfavorable |
| Variable factory overhead controllable variance | $ | |
| Fixed factory overhead volume variance | ||
| Total factory overhead cost variance | $ |
In: Accounting