Ask question

Ask question

All categories

Lubov Fominskaja [6]

2 years ago

15

Lap Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a par

ticular department consisted of 80,000 units, 100% complete with respect to materials and 25% complete with respect to conversion costs. The total dollar value of this inventory was $226,000. During the month, 150,000 units were transferred out of the department. The costs per equivalent unit for the month were $2.00 for materials and $3.50 for conversion costs. The cost of the units completed and transferred out of the department was: Multiple Choice $765,000 $825,000 $821,000 $681,000

1 answer:

SpyIntel [72]2 years ago

7 0

Answer:

The cost of the units completed and transferred out of the department was $825,000.

Explanation:

The costs per equivalent unit for the month were $2.00 for materials and $3.50 for conversion costs.

= 150,000 units × ($2.00 + $3.50) = $825,000.

You might be interested in

Your uncle holds just one stock, East Coast Bank (ECB). You agree that this stock is relatively safe, but you want to demonstrat

g100num [7]

Complete question:

Assume that your uncle holds just one stock, East Coast Bank (ECB), which he thinks has very little risk. You agree that the stock is relatively safe, but you want to demonstrate that his risk would be even lower if he were more diversified. You obtain the following returns data for West Coast Bank (WCB). Both banks have had less variability than most other stocks over the past 5 years.

Year ECB WCB

2004 40.00% 40.00%

2005 -10.00% 15.00%

2006 35.00% -5.00%

2007 -5.00% -10.00%

2008 15.00% 35.00%

a. What is the expected return and risk of each stock?

b. Measured by the standard deviation of returns, by how much would your uncle's risk have been reduced if he had held a portfolio consisting of 60% in ECB and the remainder in WCB? In other words, what is the difference between portfolio's standard deviation and weighted average of components' standard deviations? (Hint: check the example on page 11-12 on my note).

Solution:

The estimated return of the stock is the average profit.

So the average of ECB is (40-10+35-5+15)/5

= $\frac{75 percent}{5}$

= 15% expected return

WCB expected return = 40+15-5-10+35

= $\frac{75 percent}{5}$

= 15%

They've had the same planned return.

This is generally defined in the Greek letter Mu, (U) A weighted average may also be used to calculate portfolio volatility.

Standard deviation of ECB is $\sqrt{{ sum [(x-U)^2]/5}}$

so for ECB:

$(40-15)^2$ = $25^2$ =6.25%

$(-10-15)^2$ = $-35^2$ = 0.1225

$(35-15)^2$ = $20^2$ = 0.04

$(-5-15)^2$ = $-20^2$ = 0.04

$(15-15)^2$ =0

now 0.0625+0.1225+0.04+0.04+0=0.265

stdev= $\sqrt{(0.265/5)}$ = 0.23

So WCB is the same except in a different order to make things quick I'm only going to add the median again WCB=0.23

Then the 60/40 portfolio will be the "weighted average" of the returns.

portfolio returns

2004: (60%*40%)+(40%*40%) = 40%

2005: (60%*-10%)+(40%*15%) = 0%

2006: (60%*35%)+(40%*-5%) = 19%

2007: (60%*-5%)+(40%*-10%) = -7%

2008:(60%*15%)+(40%*35%) = 23%

we have an average return of (40+19-7+23)/5 = 75/5 =15%

The estimated return of all combined stocks is a better way to do so.

we knew they both had expected returns of 15% so we can say

(60%*15%)+(40%*15%)=15% so the portfolio has an expected return of 15%

Now we do the standard deviation for the whole portfolio and get

$(40-15)^2$ = $25^2$ =6.25%

$(0-15)^2$ = - $25^2$ =6.25%

$(19-15)^2$ = $4^2$ = 0.16%

$(-7-15)^2$ = $-22^2$ = -4.84%

$(23-15)^2$ = $8^2$ = 0.64%

now add them up and get 9.78%

$\sqrt{(9.78%/5)}$ = 13.98%

Therefore, the normal portfolio variance is 13.98 per cent and the predicted portfolio return is 15 per cent.

Every stock has a standard deviation of 23 per cent and an average return of 15 per cent, meaning that the fund has the same estimated return but with less standard deviation. This ensures that the same gain is less costly. It's stronger than any of these products.

5 0

2 years ago

Recently it was announced that FC Cola Company was pursuing a merger with Lemon-Lime Soda Co. The proposed merger is expected to

Helga [31]

Answer:c horizontal

Explanation:

6 0

1 year ago

In the Business Loan worksheet, enter the data values and formulas required to calculate the monthly payment on a business loan

Pavlova-9 [17]

Answer:

Monthly Payment: $1,879

Annual Payment: $13,975

Explanation:

To find the answer, we will use the present value of an annuity formula:

The formula is:

PV = A (1 - (1 + i)^-n) / i

Where:

PV = Present value of the investment (in this case, of the loan)
A = Value of the annuity (will be our incognita)
i = interest rate
n = number of compounding periods

The reason why we use this formula is because both the annual payments, and the monthly payments are annuities: payments that have regular time intervals, and have the same interest rate, which means that the value of each payment is the same.

To find the monthly payment, we first convert the annual interest rate of 6.2% to a monthly rate. The result is a 0.5% monthly rate.

Next, the number of compounding periods changes, because the monthly rate compounds each month, not once every year. For these reason, we use the number of months that there are in 15 years, which is 180 months (15 x 12 = 180).

Third, we divide the interest rate by 100 to obtain the decimal value: 0.5 / 100 = 0.005

Finally, we plug the correct amounts into the formula:

225,000 = X (1 - (1 + 0.005)^-180) / 0.005

225,000 = X (118.5)

225,000 / 118.5 = X

1,899 = X

Now, for the annual payment, we simply use the annual rate of 6.2% (divided by 100) instead of the monthly rate, and the compounding periods are now 15 years, instead of 180 months:

225,000 = X (1 - (1 + 0.062)^-15 / 0.062

225,000 = X (16.1)

225,000 / 16.1 = X

13,975 = X

4 0

2 years ago

A freelance writer must choose how to spend her time working on several different types of projects. Newspaper stories take 3 ho

natali 33 [55]

45N + 400M + 20P ≥ 45 is the constraint that limits the amount of time the writer will work each week.

Explanation:

Integer constraints limit any or all variables to only allow integer values in the optimisation issue. It allows for precise simulation of situations that include discrete numbers (such as equity shares) or decisions yes or no.

Both "limits" and "restrictions" are "restrictions," which may be the broadest word to denote anything that prohibits a entity or a mechanism from happening. "Standards" and "controls" typically feel like standing back, where "stretches" sound like being alone.

7 0

2 years ago

In the general environment, many relationships exist among the various elements. General environmental trends can have positive

Advocard [28]

Answer: positive, negative, demographic.

Explanation:

The general environment is the bigger environment within where the task environment is enclosed. The general environment is made up of six segments which are the sociocultural, technological, demographic, political/legal, economic, and global forces.

Demographic forces are results of changes in the attributes of a population, like race, gender, age, ethnic origin, social class and sexual orientation. Demographic forces have a major implications for an economy. .

The aging of the population has a positive impact on the health care industry as there will be need to keep the healthcare industry in a good condition and provide necessary amenities for the aging population. This will therefore lead to a negative impact on the baby product industry as there will be lesser demand for baby products since there are older people in the country.

7 0

2 years ago