s lace Rw Materiais Inventory$187500 Beginning balance, Work in process Inventor

Question

s lace Rw Materiais Inventory$187500 Beginning balance, Work in process Inventory 300,0 Beginning balance, Finished Goods Inventory Purchases of raw materials Total raw materials used in production Indirect labor payroll Cost of goods manufactured1,250,000 Cost of goods sold 106,250 337,500 406,250 150,000 1,312,500 What was the ending balance in Ted's Raw Materials Inventory account? a. $75,000 b. $931,250 c. $118,750 d. $206,250 16. If the unit cost of direct materials is $20, direct labor is $12, variable overhead is $2, avoidable fixed costs are $6,000 and sunk costs are $9,000, what is the total relevant cost for 300 products? a. $25,200 b. $24,200 c. $16,200 d. $15,200 C Ge rs is considering investing in a new truck that will be used to deliver its 17. Bend Manufacture custom-made furniture. Ron Shop, Controller of Bend Manufacturers, is considering a truck which will cost $80,000 and has a useful life of 5 years. The new truck will save $9,600 per year in operating costs which are realized at the end of each year. Ron believes if the new truck is purchased it could be sold for $64,500 at the end of its useful life. Bend's required rate of return is 10%, what is the new truck's net present value? Type of cash flow (n) Periods(0) Interest rate Factor PV of $1 ??.of$1 10% 10% 1096 10% 62092 1.61051 3.79079 6.10510 PV ordinary annuity Fv-ordinary annuity a. ($80) b. ($8,049) c. ($3,559) d. $18,658

Explanation / Answer

Q16. Answer is C. $ 16200 Explanation: Total relevant cost: material (300*20) 6000 Labor (300*12) 3600 Variable OH (300*2) 600 Avoiodable fixed cost 6000 Total relevant cost: 16200 Q17. Answer is c. $3559 Explanation: Annual Inflows 9600 Annuity factor for 5 years at 10% 3.79079 Present value of inflows 36391.58 Present value of salvage 40049.34 (64500*0.62092) Present value of inflows 76440.92 Less: Initial investment 80000 Net present value -3559.08

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.