lace, Rw Materiais Inventory$187500 Beginning balance,Work in process Inventory
ID: 2431459 • Letter: L
Question
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 d Manufacturers is considering investing in a new truck that will be used to deliver its 17. Ben 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 10% 1096 10% 10% Factor PV of $1 -FV of $1 62092 1.61051 3.79079 6.10510 PV ordinary annuity Fvordinary annuity a. ($80) b. ($8,049) c. ($3,559) d. $18,658Explanation / Answer
Ans 15 Beginning bal+purchases-raw material used= Ending Raw Material iNventory 187500+337500-406250 118750 Option C $118750 correct answer ans 16 relevant cost is 16200 (300*(20+12+2))+6000 Option c $16200 ans 17 PV of savings (9600*3.79079) 36391.58 PV of salvage (64500*.62092) 40049.34 PV of cash inflows 76440.92 Less: Initial investment 80000 NPV -3559 Option C --$3559 If satisfied you can rate
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