Answer: Option (a) is correct.
Explanation:
Figure attached with this answer shows the two curves, namely, average product curve and marginal product curve.
Marginal product refers to the change in the total output divided by the change in the quantity of inputs used.
Average product is calculated by dividing the total output produced with the quantity of inputs or factors of production used.
The relationship between marginal product and average product is explained by three phases:
(1) Average product is rising,
Marginal product is greater than the average product.
(2) Average product is maximum,
Marginal product is equal to average product.
(3) Average product is falling because of diminishing marginal utility,
Marginal product is less than the average product.
Answer:
True
Explanation:
P/E ratio is the price to earning ratio. Investor look into this ratio before investing or buying share of the company as it shows the market value of the shares or demand of the shares in the market. If ratio is higher then investor anticipate the growth of the company´s earning in the future, it also show investors are willing to pay higher price for each dollar earning of the company.
Price earning ratio=
Answer:
$45
Explanation:
A surplus is when income exceeds expenses.
One year has 52 weeks. If one week was unpaid leave, then payments were received for 51 weeks.
Average payments per week = $615
Total earning per week =$615 x 51
=$31,365
The total expenses for the year were $31,320. The surplus amount will be income minus expenses
= $31,365 - $31,320
=$45
Answer:
1. Calculate the first production department's equivalent units of production for materials and conversion for May.
- materials = 275,000 + 50,000 = 325,000
- conversion = 275,000 + 12,500 = 287,500
2. Compute the first production department's cost per equivalent unit for materials and conversion for May.
- materials = $169,000 / 325,000 = $0.52
- conversion = $253,000 / 287,500 = $0.88
3. Compute the first production department's cost of ending work in process inventory for materials, conversion, and in total for May.
- materials = 50,000 x $0.52 = $26,000
- conversion = 12,500 x $0.88 = $11,000
- total = $37,000
4. Compute the first production department's cost of the units transferred to the next production department for materials, conversion, and in total for May.
- materials = 275,000 x $0.52 = $143,000
- conversion = 275,000 x $0.88 = $242,000
- total = $385,000
Explanation:
Beginning WIP 70,000 units
materials $56,100
conversion $16,400
Ending WIP 50,000 units
100% completed for materials (50,000 EU)
25% completed for conversion (12,500 EU)
units started 255,000
total units transferred out 275,000
materials cost added during the period = $112,900
conversion cost added during the period = $236,600