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# Carter Corporation weighted-average method

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Carter Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
Work in process, beginning:
Units in beginning work in process inventory 400
Materials costs \$6,900
Conversion costs \$2,500
Percent complete for materials 80%
Percent complete for conversion 15%
Units started into production during the month 6,000
Units transferred to the next department during the month 5,800
Materials costs added during the month \$112,500
Conversion costs added during the month \$210,300
Ending work in process:
Units in ending work in process inventory 1,400
Percent complete for materials 70%
Percent complete for conversion 40%

Required: Calculate the equivalent units for materials (using the weighted-average method) for the month in the first processing department

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Your tutorial is in Excel (attached). The tutorial computes the equivalent units for material and ...

#### Solution Summary

Your tutorial is in Excel (attached). The tutorial computes the equivalent units for material and conversion costs (even though that is not asked) so you can see all the steps in a process costing problem using weighted average method. This is now a template for any problem you have, regardless of the question asked. The specific question in the posting is highlighted in yellow for easy review.

\$2.19

## Return on common stockholders' equity, value per share, interest on bonds, net cash

See attached file.

Carter Corporation had net income of \$250,000 and paid dividends of \$50,000 to common stockholders and \$20,000 to preferred stockholders in 2008. Carter Corporation's common stockholders' equity at the beginning and end of 2008 was \$870,000 and \$1,130,000, respectively. There are 100,000 weighted-average shares of common stock outstanding.
Carter Corporation's return on common stockholders' equity was?

a. 25%

b. 23%

c. 20%

d. 18%

At December 31, the stockholders' equity section shows:
Common stock, \$5 par value; 1,320,000 shares issued
..... and 1,200,000 shares outstanding.............................................................................................................................................. \$6,600,000
Retained earnings.................................................................................... 500,000
Treasury stock, (120,000 shares)............................................................ (700,000)
Total stockholders' equity................................................................................................................................................................. \$7,800,000
The book value per share of common stock is

a.\$5.91

b.\$6.50

c.\$7.08

d.\$6.44

Golden Company received proceeds of \$94,250 on 10-year, 8% bonds issued on January 1, 2007. The bonds had a face value of \$100,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Golden uses the straight-line method of amortization.
What is the amount of interest Golden must pay the bondholders in 2007?

a.\$7,540

b.\$8,000

c.\$8,575

d.\$7,425

Joy Elle's Vegetable Market had the following transactions during 2008:
1. Issued \$25,000 of par value common stock for cash.
2. Repaid a 6 year note payable in the amount of \$11,000.
3. Acquired land by issuing common stock of par value \$50,000.
4. Declared and paid a cash dividend of \$1,000.
5. Sold a long-term investment (cost \$3,000) for cash of \$3,000.
6. Acquired an investment in IBM stock for cash of \$6,000.

What is the net cash provided by financing activities?

a.\$13,000

b.\$25,000

c.\$14,000

d.\$9,000

In accounting for stock investments between 20% and 50%, the _______ method is used

a. consolidated statements

b. controlling interest

c. cost

d. equity

On January 1, 2008, Jonsey Corporation purchased 30% of the common stock outstanding of Karsen Corporation for \$200,000. During 2008, Karsen Corporation reported net income of \$80,000 and paid cash dividends of \$40,000. The balance of the Stock Investments-Karsen account on the books of Jonsey Corporation at December 31, 2008 is

a.\$200,000

b.\$240,000

c.\$280,000

d.\$212,000

On January 1, 2008, Turner Company purchased at face value, a \$1,000, 7% bond that pays interest on January 1 and July 1. Turner Company has a calendar year end.

The entry for the receipt of interest on July 1, 2008, is...

A. Cash................................................... 35
Interest Revenue 35

B. Cash.................................... 70
Interest Revenue............... 70

C. Interest Receivable............................ 35
Interest Revenue............... 35

D. Interest Receivable...................... 70
Interest Revenue..... 70

Buster Company reported a net loss of \$3,000 for the year ended December 31, 2008. During the year, accounts receivable increased \$7,000, merchandise inventory decreased \$5,000, accounts payable decreased by \$10,000, and depreciation expense of \$5,000 was recorded. During 2007, operating activities

a.used net cash of \$10,000

b.used net cash of \$14,000

c.provided net cash of \$14,000

d.provided net cash of \$9,000

The present value of a \$10,000, 5-year bond, will be less than \$10,000 if the

a. contractual interest rate is less than the market interest rate

b. contractual interest rate is greater than the market interest rate

c. bond is convertible

d. contractual interest rate is equal to the market interest rate

Lahey Corporation retires its \$500,000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is \$518,725. The entry to record the redemption will include a

a.credit of \$18,725 to Loss on Bond Redemption

b.debit of \$18,725 to Premium on Bonds Payable

c.credit of \$6,275 to Gain on Bond Redemption

d.debit of \$25,000 to Premium on Bonds Payable

Burgess Corporation began business by issuing 100,000 shares of \$5 par value common stock for \$24 per share. During its first year, the corporation sustained a net loss of \$20,000. The year-end balance sheet would show

a.Common stock of \$500,000

b.Common stock of \$2,400,000

c.Total paid-in capital of \$2,380,000

d.Total paid-in capital of \$1,900,000

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