Reference no: EM13951519
Manufacturing statements and cost behavior
Tampa Foundry began operations during the current year, manufacturing various products for industrial use. One such product is light-gauge aluminum, which the company sells for $36 per roll. Cost information for the year just ended follows.
|
Per Unit
|
Variable Cost
|
Fixed Cost
|
|
Direct materials
|
$4.50
|
$ -
|
|
Direct labor
|
6.5
|
-
|
|
Factory overhead
|
9
|
50,000
|
|
Selling
|
-
|
70,000
|
|
Administrative
|
-
|
135,000
|
Production and sales totaled 20,000 rolls and 17,000 rolls, respectively there is no work in process. Tampa carries its finished goods inventory at the average unit cost of production.
Instructions:
a. Determine the cost of the finished goods inventory of light-gauge aluminum.
b. Prepare an income statement for the current year ended December 31
c. On the basis of the information presented:
1. Does it appear that the company pays commissions to its sales staff? Explain.
2. What is the likely effect on the $4.50 unit cost of direct materials if next year's production increases? Why?
|
About interest rate risk of lower-coupon bonds
: Bond X is a 5 percent coupon bond. Bond Y is a 10 percent coupon bond. Both bonds have 8 years to maturity, make semiannual payments, and have a yield to maturity of 10 percent. If the interest rate suddenly falls by 1 percent, what is the percentage..
|
|
Number of investments in common stock
: Ann, age 61, and Bob, age 62, have a large number of investments in common stock of publicly traded corporations, some municipal bonds, and a money market cash account worth several million dollars. In addition, they own a ranch in Texas that may ..
|
|
Create a process map
: Create a process map that walks through all steps of the decision-making process that your selected leader would follow to solve a problem
|
|
Compute the firm cost of equity
: Suppose today is January 1, 2016; on January 1, 2006, XYZ industries issued a 30-year bond with a 5% coupon, paid semi-annually, and a $1,000 face value payable on January 1, 2036. The bond now sells for $975. Assume a 34% tax rate. Suppose the marke..
|
|
Manufacturing statements and cost behavior
: Tampa Foundry began operations during the current year, manufacturing various products for industrial use. One such product is light-gauge aluminum, which the company sells for $36 per roll. Cost information for the year just ended follows.
|
|
What is the value of the firm before restructuring
: A firm has an expected perpetual EBIT = $6,000. The unlevered cost of capital = 8% and there are 20,000 shares of stock outstanding. The firm is considering issuing $10,000 in new par bonds to add financial leverage to the firm. What is the value of ..
|
|
Formulas and charts of the investigation.
: Epidemiological data and operational information about outbreaks is dynamic and changes rapidly. I have to develop a comprehensive Event Management System to manage critical information about an outbreak using.
|
|
About the miraculous recovery
: Phoenix Industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy. Today, it announced a $1 per share dividend to be paid a year from now, the first dividend since the crisis. If the firm’s investors expect to earn a retu..
|
|
Computing the value of constant growth dividend-paying stock
: Explain the difference between computing the value of a zero growth dividend-paying stock and computing the value of a constant growth dividend-paying stock.
|