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1 year ago

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The journal entry to record applying overhead during the production process is: a. Manufacturing Overhead XXX Work In Process XX

X b. Finished Goods XXX Manufacturing Overhead XXX c. Manufacturing Overhead XXX Finished Goods XXX d. Work In Process XXX Manufacturing Overhead XXX

1 answer:

elixir [45]1 year ago

5 0

Answer:

d. Work in Process Dr. XXX

Manufacturing Overheads XXX

Explanation:

Work in process inventory is a current asset. A debit of current asset accounts increase their balance while a credit reduces it.

Manufacturing overheads refer to indirect costs. Examples would include such as gas electricity used in manufacturing process which represents an indirect cost.

In the given case, the journal entry would be:

Work in Process A/C Dr.

To Manufacturing Overheads

(Being application of manufacturing overheads recorded)

The entry means manufacturing costs i.e indirect costs have been used, transferred and added to cost of work in process.

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In earned value management, a baseline includes ____ (wbs tasks), time (start and finish estimates for each task), and cost info

shusha [124]

Answer:

The correct answer is: scope.

Explanation:

Earned Value Management (<em>EVM</em>) is a helpful method that allows high-rank executives to measure the performance of their projects. It analyses the difference between the work planned in the project with the work performed. The three pillars of EVM are <em>scope, time, </em>and <em>cost information</em>. The scoping process implies a Work Breakdown Structure (<em>WBS</em>) where the initial plan is broken into micro levels for better analysis.

3 0

1 year ago

The risk-free rate of return is 8%, the expected rate of return on the market portfolio is 15%, and the stock of Xyrong Corporat

bearhunter [10]

Answer:

a. The intrinsic value of a share of Xyrong stock is <u>$90.91</u>.

b. Your expected 1-year holding-period return on Xyrong stock is <u>5.82%</u>.

Explanation:

Given in the question are the following:

rf = risk-free rate of return = 8%, or 0.08

rm = expected rate of return on the market portfolio = 15%. or 0.15

b = beta = 1.2

dp = Dividend payout ratio = 40%, or 0.40

e = latest earnings = $10

ROE = Return on equity = 20%, or 0.20

We therefore proceed as follows:

a. What is the intrinsic value of a share of Xyrong stock ? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

This can be calculated using the formula for calculating the intrinsic value of a share as follows:

Intrinsic value = (e * dp) / [rf + b * (rm - rf) - ROE * (1 - dp)] .......... (1)

Substituting the values into equation (1), we have:

Intrinsic value = ($10 * 40%) / [8%+ 1.2 * (15% - 8%) - 20% * (1 - 40%)]

Intrinsic value = $4 / [8% + 1.2 * 7% - 20% * 60%

Intrinsic value = $4 / (8% + 0.084 - 12%)

Intrinsic value = $4 / 0.044

Intrinsic value = $90.91

Therefore, the intrinsic value of a share of Xyrong stock is <u>$90.91</u>.

b. If the market price of a share is currently $100, and you expect the market price to be equal to the intrinsic value one year from now, what is your expected 1-year holding-period return on Xyrong stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

To do this, we first calculate the price of the share after one year from now as follows:

p1 = Intrinsic value * (1 + ROE * (1 - dp)) ............................ (2)

Where p1 denotes the price of the share after one year from now.

Substituting the relevant values into equation (2), we have:

p1 = 90.91 * (1 + 20% * (1-40%))

p1 = 90.91 * (1 + 20% * 60%)

p1 = 90.91 * 1.12

p1 = 101.8192

We can now calculate the expected 1-year holding-period return on Xyrong stock as follows:

Expected 1-year holding-period return = (p1 + e * dp) / 100 - 1 ............ (3)

Substituting the relevant values into equation (3), we have:

Expected 1-year holding-period return = [(101.8192 + 10 * 40%) / 100] - 1

Expected 1-year holding-period return = [105.8192 / 100] - 1

Expected 1-year holding-period return = 1.058192 - 1

Expected 1-year holding-period return = 0.058192, or 5.82%

Therefore, your expected 1-year holding-period return on Xyrong stock is <u>5.82%</u>.

4 0

1 year ago

On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. Marino planned to drive the truck for 100,000

Dmitriy789 [7]

Answer:

a- $38,000

Explanation:

Units-of-production method of depreciation is a method in which depreciation is charged based on the output given by the asset in a period.

Truck Purchase price = $48,000

Estimated unit for depreciation = $100,000 miles

Salvage value = $8,000

Total Millage in 3 years = 40,000 + 20,000 + 35,000 = 95,000 miles

Accumulated Depreciation = ( Initial cost - Salvage value) Driven Millage / estimated total Millage

Accumulated Depreciation = ( $48,000 - $8,000 ) 95,000 / 100,000 = $38,000

4 0

1 year ago

Imrie Corporation makes a product that uses a material with the quantity standard of 9.5 grams perunit of output and the price s

SashulF [63]

Answer:

Option (B) is correct.

Explanation:

Given that,

Standard Price = $5

Direct material (Actual Price) = $4.9

Actual Quantity Purchased = 28,900

Materials price variance for January:

= (Standard Price - Actual Price) × Actual Quantity Purchased

= ($5 - $4.9) × 28,900

= $2,890 (Favorable)

Therefore, the materials price variance for January is $2,890 Favorable.

6 0

2 years ago

On March 1, it was discovered that the following errors took place in journalizing and posting transactions:

kaheart [24]

Answer:

a. Reversal entry:

Debit Rent expense $4,650

Credit Miscellaneous Expense $4,650

Correct Entry:

Debit Rent expense $4,650

Credit Cash $4,650

b. Reversal entry:

Debit Accounts payable $3,700

Credit Cash $3,700

Correct Entry

Debit Cash $3,700

Credit Accounts Receivable $3,700

Explanation:

Reverse entry is to simply close to zero the original entry that has been made in mistake. Afterwards, record the correct entry to properly account the transaction.

To reverse the previously made entry, we simply debit what is credited and debit what is credited.

a. We need to close the rent expense credited by debiting it and credit the miscellaneous expense that is previously debited to zereod out the mistake recording. Then to record the correct entry, Debit Rent expense and Credit Cash at the amount $4,650

b. Just ike what we did on the previous transaction, we will debit the Accounts payable and credit the cash that has been recorded by mistake to zereod out the balance and then make the correct entry. Debit Cash $3,700 and credit Accounts receivable $3,700.

5 0

1 year ago