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2 years ago

Below is budgeted production and sales information for Octofic Cans Inc. for the month of March:

Business

2 answers:

Dahasolnce [82]2 years ago

7 0

Answer:

The Budgeted sales for the month are 108,000 units. The right answer is b.

The true answer is c. Unit variable cost remains constant with changes in production

Explanation:

In order to calculate the Budgeted sales for the month we would have to calculate the following formula:

Budgeted sales= Estimated sales + Desired ending inventory - Beginning inventory

= (85,000+25,000)+4,000 - 6,000

= 108,000 units

The Budgeted sales for the month are 108,000 units

Variable cost per unit remains same even though there's a change in output. Hence, Unit variable cost remains constant with changes in production.

Murljashka [212]2 years ago

5 0

Answer: 108,000 ; Unit variable cost remains constant with changes in production

Explanation:

The sales budget is part of the main budget and it is used to predict the amount of revenue that will be gotten from sales of a particular good or services. For this question, the budgeted sales for the month will be the estimated sales added to the desired ending inventory, then the beginning inventory is subtracted. This will be:

= (85,000+25,000) + 4,000 - 6,000

= 110,000 + 4,000 - 6,000

= 108,000

The thing true about the variable cost is that the variable cost per unit will remain the same even though there is a change in output. Therefore, option C is the right answer.

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Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below

posledela

Answer:

60,000 units

Explanation:

January February

Budgeted production 50,000 60,000 (4)

Raw materials per unit 2 pounds 2 pounds

Raw materials needed 100,000 120,000 (3)

Add: Ending raw materials 36,000 (2) 48,000

Raw materials available 136,000 (1) 168,000

Less: Beginning raw 30,000 36,000

materials

Budgeted raw materials 106,000 132,000

Note:

1. Budgeted raw materials for January = Raw materials available - Beginning raw materials

106,000 = Raw materials available - 30,000

Raw materials available = 106,000 + 30,000 = 136,000 pounds

2. Raw materials needed + Ending raw materials = Raw materials available

100,000 + Ending raw materials = 136,000

Ending raw materials = 136,000 - 100,000 = 36,000

3. As the company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs, the raw materials needed for the month of February -

Ending raw materials for January = Raw materials needed for February × 30%

or, 36,000 = Raw materials needed for February × 30%

Raw materials needed for February = 36,000 ÷ 30%

Therefore, Raw materials needed for February = 120,000

4. Budgeted production × Raw materials per unit = Raw materials needed

Budgeted production = Raw materials needed ÷ Raw materials per unit

Budgeted production = 120,000 ÷ 2 pounds = 60,000 units

7 0

1 year ago

On December 31, 2019, Wintergreen, Inc., issued $150,000 of 7 percent, 10-year bonds at a price of 93.25. Wintergreen received $

Elina [12.6K]

Answer:

June 30, 2020 Bond Interest expense Debit $5,756.25

Discount on Bonds payable Credit $506.25

Cash Credit $5,250

Explanation:

We have to calculate the interest expense. The bond interest expense = Cash payment + bond amortization discount

Given,

Bond price = $150,000

Interest = 7%

Number of period, n = 10 years × 2 (As it is a semiannual bond) = 20

Cash payment for semiannual interest = $150,000 × 0.07 × (1÷2)

Cash payment for semiannual interest = $5,250 (Credit)

Amortized bond discount (discount on bonds payable) = $10,125 ÷ 20 (as it is a semiannual payment and $10,125 is for 10 years)

Discount on bonds payable = $506.25 (Credit)

Therefore, bond interest expense = $5,250 + $506.25 = $5,756.25 (Debit)

6 0

1 year ago

Josh bought a bond with a par value of 1,500 from company ABC. The bond pays twenty annual coupons of 90 and matures at the end

ElenaW [278]

Answer: c

Explanation:

3 0

1 year ago

On December 31, 2017, Dow Steel Corporation had 770,000 shares of common stock and 47,000 shares of 9%, noncumulative, nonconver

Oksana_A [137]

Answer:

EPS = 3.37

Explanation:

First step we will calculate the income after paying the preferred dividends

net income 2,950,000

86,000 preferred stock dividends

earnings for common stock: 2,864,000

Then we calcualte the average shares outstanding

Feb 28th 68,000 sold shares

May 15th 770,000 x 5% = 38,500 new shares

July 1st 4,000 shares retired

weighted average shares:

770,000 +68,000 x 10/12 + 38,500 x 7.5/12 - 4,000 x 6/12 = 848729.1667

average shares 848,729

Earning per share

(net income - preferred stock) / weighted average shares outstanding

2,864,000 / 848,729 = 3,.744 = 3.37

5 0

1 year ago

Suppose there are only two firms that sell Blu-ray players, Movietonia and Videotech. The following payoff Matrix shows the prof

Karolina [17]

Answer:

From the given Matrix we can see that if videotech is selecting a high price, movietonia has a higher profit when it is charging a low price and this profit is 18. Similarly when videotech is selecting a lower price movietonia again has a higher profit when it is selecting a lower price which is 10. This indicates that movie tonia has a dominant strategy of selecting a low price.

If movietonia is selecting a high price videotech has a a higher pay off of 18 when it is selecting a low price. In case movietonia is selecting a low price videotech again has a higher profit when it is selecting a low price and this profi is 10.

Therefore videotech and movietonia both have dominant strategy of selecting a low price and this implies that low price, low price will be the Nash equilibrium.

In case the two firms are not colluding, both of them will choose a low price.

This is definitely an example of business dilemma game. The statement is true.

Explanation:

6 0

1 year ago