Homework answers / question archive / 1 Brief Exercise 14-07 Francum Company has the following data: direct labor $248,000, direct materials used $197,000, total manufacturing overhead $223,000, and beginning work in process $28,000

1 Brief Exercise 14-07 Francum Company has the following data: direct labor $248,000, direct materials used $197,000, total manufacturing overhead $223,000, and beginning work in process $28,000

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1 Brief Exercise 14-07 Francum Company has the following data: direct labor $248,000, direct materials used $197,000, total manufacturing overhead $223,000, and beginning work in process $28,000. Compute total manufacturing costs. Total manufacturing costs $ LINK TO TEXT Compute total cost of work in process. Total cost of work in process Click If you would like to show Work for this question Open Show.

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Use the following to answer this and the next two questions The owner of the company you work for has presented you with data about a potential investment. Machine Original outlay (beginning of Year 1): $220 000 Expected net cash inflow: Year Amount 1 2 3 4 $45 000 $45 000 $55 000 $50 000 Salvage value (expected in year 4) $105 000 The owner of the company estimates the cost of capital to be 7%. The company has enough funds to meet all capital expenditure requirements. Required: Calculate the net present value for the investment and state (with a justification of your answer) whether it should be accepted (15 marks). Use the following present value table to help calculate your answer: Number of periods 7% 8% 9% $1 (1+k)" $1 (1+k)" (1+k}" 2 0.935 0.873 0.816 0.762 0.926 0.857 0.794 0.735 0.909 0.826 0.751 0.683 ? 4