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Concept explainers
(a)(1)
Production Cost Report: A report which gives information about the total units produced and total cost incurred during the production process is called production cost report. This report is useful for the management of the company to take decision regarding production and the measure for cost control.
Equivalent Units of Production: It is an evaluation of the work completed during the period expressed in wholly finished units. Equivalent units of production includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out and ending work in process.
Unit Cost of Production: The cost production derived in terms of corresponding units of production is called unit cost of production.
To prepare: The physical units of production for each plant
(2)
The equivalent units of production for materials and conversion costs.
(3)
The unit cost of equivalent units.
(4)
The cost to be assigned to the units transferred out and in process.
(b)
To prepare: The production cost report for Plant 1 for July 2017.
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Chapter 21 Solutions
Accounting Principles - Standalone book
- REQUIRED Use the information provided below to answer the following questions: 4.1 Calculate the weighted average cost of capital (expressed to two decimal places). Your answer must include the calculations of the cost of equity, preference shares and the loan. 4.2 Calculate the cost of equity using the Capital Asset Pricing Model (expressed to two decimal places). (16 marks) (4 marks) INFORMATION Cadmore Limited intends raising finance for a proposed new project. The financial manager has provided the following information to determine the present cost of capital to the company: The capital structure consists of the following: ■3 million ordinary shares issued at R1.50 each but currently trading at R2 each. 1 200 000 12%, R2 preference shares with a market value of R2.50 per share. R1 000 000 18% Bank loan, due in March 2027. Additional information The company's beta coefficient is 1.3. The risk-free rate is 8%. The return on the market is 18%. The Gordon Growth Model is used to…arrow_forwardA dog training business began on December 1. The following transactions occurred during its first month. Use the drop-downs to select the accounts properly included on the income statement for the post-closing balancesarrow_forwardWhat is the expected return on a portfolio with a beta of 0.8 on these financial accounting question?arrow_forward
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