Suppose that demand for a product is Q = 1200 − 4P and supply is Q = −240 + 2P. Furthermore, suppose that the marginal external

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

Answer:

$404,000

Explanation:

Production Unit totals $135,000 plus $18,000 minus $14,000, resulting in $139,000.

The labor time for each unit is 30 minutes, equivalent to 0.5 hours.

The total labor hours equate to $139,000 multiplied by 0.5, giving 69,500 hours.

The variable overhead amounts to 69,500 hours multiplied by 5, resulting in $347,500.

Summing up the total overhead costs yields $347,500 plus $56,500, leading to a total of $404,000.

Answer:

Net Present Value = $ 34,310.45  

Explanation:

The Net Present Value (NPV) represents the difference between the present value of cash inflows and outflows. A positive NPV indicates a favorable investment decision, while a negative value suggests otherwise.

NPV of a project

NPV = Present Value of Cash inflows - Present Value of Cash outflow  

The cash inflow is characterized as an annuity.

Present Value of annuity= A × 1 - (1+r)^(-n)/r  

A refers to Annual cash flow, - 65,000, r is the discount rate at 12%, and the term is 5 years.

Calculation for Present Value of cash inflow equals 65,000 × (1 - (1.12)^(-5)/0.12) =  234,310.45.

The initial investment is 200,000.

Thus, the Net Present Value calculation is  -  234,310.45  -200,000 = 34,310.45  

Net Present Value = $ 34,310.45