Questions
“The reciprocal method is the most appropriate method of support department cost allocation as it takes...

“The reciprocal method is the most appropriate method of support department cost allocation as it takes into account all service flows between departments.” Do you agree? Explain your answer.

In: Accounting

Periodic inventory by three methods; cost of goods sold The units of an item available for...

Periodic inventory by three methods; cost of goods sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 40 units at $124 Mar. 10 Purchase 50 units at $136 Aug. 30 Purchase 20 units at $142 Dec. 12 Purchase 90 units at $144 There are 60 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. Cost of Ending Inventory and Cost of Goods Sold Inventory Method Ending Inventory Cost of Goods Sold First-in, first-out (FIFO) $ $ Last-in, first-out (LIFO) Weighted average cost PreviousNext

In: Accounting

the Weighted Average Cost of Capital (WACC) for a firm can be calculated or found through...

the Weighted Average Cost of Capital (WACC) for a firm can be calculated or found through research. Select two firms in the same industry. The industry may be that in which you currently work or it may be an industry in which you are interested. Calculate or find the WACC for the two firms. How do the WACCs compare? Are the WACCs what you would expect? What causes the differences between the two firms' WACCs?

In: Finance

The Zoe Corporation has the following information for the month of March: Cost of direct materials...

The Zoe Corporation has the following information for the month of March: Cost of direct materials used in production $18,147 Direct labor 26,753 Factory overhead 31,388 Work in process inventory, March 1 21,476 Work in process inventory, March 31 19,244 Finished goods inventory, March 1 23,257 Finished goods inventory, March 31 24,265 a. Determine the cost of goods manufactured. $ b. Determine the cost of goods sold..

In: Accounting

123 Inc. is considering purchasing a new machine. The machine will cost $3,250,000. The machine will...

123 Inc. is considering purchasing a new machine. The machine will cost $3,250,000. The machine will be used for a project that lasts 3 years. The expected salvage of the machine at the end of the project is $800,000. The machine will be used to produce widgets. The marketing department has forecasted that the company will be able to sell 280,000 widgets per year. The marketing department believes that the company will be able to charge $22 per widget. The production department, has indicated that the variable cost per widget will be $9. The company has forecasted that the incremental fixed costs associated with the project are $120,000 per year. The company believes that the project will require an initial investment in operating net working capital of $160,000. Thereafter, the investment in operating net working capital will be 8% of sales. Assume the asset class remains open.

The CCA rate is 30%, the tax rate is 24%, and the required rate of return is 8%.

  1. Using net present value (NPV) calculation, determine if the company should purchase the new machine. Show all work.
  2. Your boss has a number of concerns regarding the project. Therefore, she has asked you to determine the number of units that the company must sell each year for the NPV to be greater than zero.
  3. Your boss has also asked you to determine which input (units sold, price per unit, variable cost per unit, or fixed cost) has the greatest forecasting risk. Therefore, your boss has asked you to do a sensitivity analysis. Your boss wants you to vary the input forecast by 10% and determine the impact on the NPV of the project. Based on this analysis you are to determine which input has the greatest forecasting risk.
  4. Finally, your boss has asked you to perform a scenario analysis. Therefore, your boss has asked to include two new scenarios. A pessimistic scenario and an optimistic scenario. Your boss wishes to know the NPV of the project under these two additional scenarios. The value of the inputs for each scenario are shown in the table below.

Pessimistic

Optimistic

Units sold

180,000

400,000

Price per unit

$16

$32

Variable cost per unit

$12

$7

Fixed Cost

$150,000

$80,000

In: Finance

Compare healthcare cost in US with any OTHER country and advantages and disadvantages of the healtchare...

Compare healthcare cost in US with any OTHER country and advantages and disadvantages of the healtchare systems.

In: Finance

The mean cost of domestic airfares in the United States rose to an all-time high of...

The mean cost of domestic airfares in the United States rose to an all-time high of $400 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $120. Use Table 1 in Appendix B.

a. What is the probability that a domestic airfare is $560 or more (to 4 decimals)?

b. What is the probability that a domestic airfare is $250 or less (to 4 decimals)?

c. What if the probability that a domestic airfare is between $310 and $490 (to 4 decimals)?

d. What is the cost for the 3% highest domestic airfares? (rounded to nearest dollar)

In: Economics

Initially a​ firm's wage is w = $42 and its rental cost of capital is r...

Initially a​ firm's wage is w = $42 and its rental cost of capital is r = $42. After its wage rate doubles, how do its isocost lines​ change?

Let L represent labor and K capital.

Graph an isocost line at the original​ wage, when the wage is w = $42. Label this line "I1"

Graph an isocost line at the new​ wage, when the wage doubles. Label this line "I2"

In: Economics

Create a model for a production cost report using the weighted average method for the month...

Create a model for a production cost report using the weighted average method for the month of May. You should have an input area in which you put the department information for the month, and an output area that calculates the production cost report. Please include step by step directions(in a text box).After completion of the production cost report using the weighted average method, create a new worksheet and label the tab “FIFO”.  Create a production cost report using the same information using the FIFO method.

Department Data:

Information about units:

Units in beginning WIP

31,000

Started during the month

240,000

Units in Ending WIP

21,000

Percentage of Completion:

Beginning Inventory:

Direct materials

60%

Conversion

40%

Ending Inventory:

Direct Materials

30%

Conversion

60%

Costs in Beginning WIP:

Direct materials

$135,000

Conversion

$210,000

Costs incurred during the month:

Direct Materials

$1,250,000

Direct Labor

$48,000

Overhead

$586,000

In: Accounting

Explain what is meant by the total cost approach to logistics. Illustrate your answer with a...

Explain what is meant by the total cost approach to logistics. Illustrate your answer with a diagram

In: Economics