After the stock dividend, earnings per share stand at $3.636. To elaborate, there are 200,000 shares currently available, with after-tax profits recorded at $800,000. The current price of the shares is set at $48, while the stock dividend is at 10%. After the dividend, the updated number of shares is calculated as 200,000*(1+10%) = 220,000. Consequently, the earnings per share after the dividend is $800,000/220,000, resulting in $3.636.
Answer:
Costs associated with stockouts increase
While carrying costs decline
Explanation:
The implementation of just-in-time (JIT) leads to a reduction in overall inventory levels and an increase in the frequency of deliveries from suppliers.
With the company retaining fewer materials and components, there is a greater likelihood of experiencing stockouts, which results in escalated stockout costs.
As the overall inventory decreases, it follows that carrying costs will correspondingly diminish.
The cost advantage of different locations is $20,000. Phoenix appears to have a cost benefit over Atlanta and should be selected for the new facility instead of other options.
Answer:
The cost of goods manufactured equals 650,000.
Explanation:
Based on the following details:
Beginning inventory= $250,000
Cost accumulated during the period= $500,000
Ending work in process inventory= $100,000.
To find the cost of goods manufactured, apply this formula:
cost of goods manufactured= beginning WIP + cost incurred - Ending WIP
cost of goods manufactured= 250,000 + 500,000 - 100,000
cost of goods manufactured= 650,000
