Following is a partial process cost summary for mitchell manufacturing's canning department. equivalent units of production direct materials conversion units completed and transferred out 50,000 50,000 units in ending work in process: direct materials (15,000 * 100%) 15,000 conversion (15,000 * 80%) 12,000 equivalent units of production 65,000 62,000 cost per equivalent unit costs of beginning work in process $ 40,500 $ 59,700 costs incurred this period 136,000 183,100 total costs $ 176,500 $ 242,800 cost per equivalent unit $ 2.71 per eup $ 3.92 per eup if the units completed were transferred to the labeling department, what is the appropriate journal entry to transfer the direct materials? work in process—labeling $135,500; work in process—canning $135,500. work in process—labeling $176,500; work in process—canning $176,500. finished goods—labeling $135,500; finished goods—canning $135,500. work in process—labeling $176,500; finished goods—canning $176,500. finished goods $136,000; work in process $136,000.

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine