What was amount of total direct costs incurred for period

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Reference no: EM131819188

1. You are given the following information on three stocks: Stock A offers an expected return of 8.0% p.a. with a standard deviation of 15.0% p.a. Stock B offers an expected return of 10.0% p.a. with a standard deviation of 20.0% p.a. Stock C offers an expected return of 10.0% p.a. with a standard deviation of 15.0% p.a. For each of the following statements indicate whether the statement is true or false and briefly explain why?

a) A risk neutral investor would be indifferent between stocks B and C.

b) A risk averse investor would prefer to invest in stock B rather than stock C.

c) A risk averse investor would prefer to invest in stock C rather than stock A.

d) A risk seeking investor would be indifferent between stocks B and C.

2. Jurong Manufacturing purchased direct material worth $15,000 during the most recent period. At the end of the period the direct material account balance was $6,000 larger than the beginning balance. Cost of goods sold was $150,000. Overhead is applied at 50 per cent of direct labour cost. Other account balances are: Work in process – Beginning: $75,000; Ending: $20,000. Finished goods – Beginning: $110,000; Ending: $60,000.

What was the amount of the total direct costs incurred for the period?

$36,000.

$29,000.

$9,000.

$33,000.

Reference no: EM131819188

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