Answer:
Mr. C
Home office deduction for the year is:
= $20,405.50
Explanation:
Qualifying home office expenses:
Home mortgage interest $12,980
Property tax on residence 2,200
Homeowner’s insurance 1,475
Utilities 2,100
Furnace repairs 300
Depreciation on building 185,000
Qualified home expenses $204,055
10% for home office = $20,405.50
b) Mr. C is entitled to deduct home office expenses relating to mortgage interest, insurance, utilities, repairs, and depreciation, including furnace repairs. The deductions for a home office are based on the percentage of Mr. C's home devoted to his business use.
You have a $1,000 portfolio which is invested in stocks A and B plus a risk-free asset. $400 is invested in stock A. Stock A has a beta of 1.30 and stock B has a beta of 0.70. How many dollars need to be invested in stock B if you want a portfolio beta of 0.90
Answer: $543
Explanation:
The portfolio beta is a weighted average of the individual stock betas.
Portfolio beta = (Weight of stock A * Stock A beta) + (Weight of stock B * Stock B beta)
0.9 = (400/1,000 * 1.3) + (w * 0.70)
0.9 = 0.52 + 0.7w
0.7w = 0.9 - 0.52
0.7w = 0.38
w = 0.38/0.7
w = 0.543
The portfolio value is $1,000 so the dollars would be:
= 0.543 * 1,000
= $543
The amount of dollars that is needed to be invested in stock B if you want a portfolio beta of 0.90 is $543.
Let x represent the amount of dollars
Hence:
Beta Portfolio= .90 = ($400÷$1,000 ×1.3) + ($x ÷$1,000×.7) + [(($1,000-$400)–x) ÷$1,000 ×0]
Beta Portfolio= .90 = ($400÷$1,000 ×1.3) + ($x ÷$1,000×.7) + (($600–x) ÷$1,000 ×0)
.90 = .52 + .7x + 0
.7x=.90-.52
Divide both side by .7x
.7x = .38
x=.38/.7
x = $542.86
x= $543 (Approximately)
Inconclusion the amount of dollars that is needed to be invested in stock B if you want a portfolio beta of 0.90 is $543.
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Financial information is presented below: Operating expense s $ 45,000 Sales returns and allowance s 3,000 Sales discount s 7,000 Sales revenu e 160,000 Remaining Time: 2 hours, 04 minutes, 55 seconds. Cost of goods sol d 96,000 Question Completion Status: The pro t margin would be
Answer:
See below
Explanation:
Sales revenue
$160,000
Sales discount
($7,000)
Sales return and allowance
($3,000)
Net sales
$150,000
Cost of goods sold
($96,000)
Gross income
$54,000
Operating expenses
($45,000)
Net income/ operating income
$9,000
Profit margin = (9,000/160,000) × 100
Profit margin = 56.25%
You are a t-shirt designer and have a new design you are excited about. Another company offers to buy your design for $6,000. Or you could produce and sell your own t-shirts with this new design. You estimate you have a 25% chance your t-shirt is a huge success, a 20% chance of your t-shirt is marginally liked and earns gross revenues of $4,000, and a 55% chance your t-shirt is a failure and earns gross revenue of $500. If your t-shirt is a huge success, there is a 50% chance it will earn gross revenues of $25,000, a 15% chance it will earn gross revenues of $30,000, and a 35% chance it will earn gross revenues of $40,000. The cost to produce the t-shirts yourself is $3,000. Assume you make decisions using expected value, and you make the optimal decision. What is your expected earnings (in $) from your new t-shirt design
Answer:
The expected earnings from the new t-shirt design is:
= $5,825.
Explanation:
a) Data and Calculations:
State Percent Revenue Expected value
Huge success 25% $31,000 $7,750
Marginal success 20% $4,000 800
Failure 55% $500 275
Total expected revenue $8,825
Huge success
Percent Revenue Expected value
50% $25,000 $12,500
15% 30,000 4,500
35% 40,000 14,000
Total expected revenue $31,000
Alternative 1: Sell design:
Earnings = $6,000
Alternative 2: Produce the t-shirts:
Earnings:
Total expected revenue = $8,825
Total cost to produce = 3,000
Net earnings $5,825
EasyFind manufactures and sells golf balls. The company is conducting a price test to find a better price point. Presently their golf balls sell for $19 per dozen. Their current volume is 4,910 dozen per month. They are considering reducing their sales price by 28% per dozen. If EasyFind's variable costs are $10 per dozen, what is their total contribution each month at current prices
Answer:
$44,190
Explanation:
Selling price = $19
Variable cost = $10
Volume = 4,910 dozen per month
Contribution per unit = Selling price - Variable cost
Contribution per unit = $19 - $10
Contribution per unit = $9 per dozen
Total contribution = Volume*Per dozen contribution
Total contribution = 4,910 * $9
Total contribution = $44,190
Nolan Company acquired a tract of land containing a natural resource. Nolan is required by the purchase contract to restore the land after extraction. Geological surveys show that the estimated amount to be extracted will be 5,000,000 tons, and that the land will have a value of $1,000,000 after restoration. Relevant costs:Land $7,000,000Estimated restorationcosts: 1,500,000What should be the charge to depletion expense per ton of extracted material?
Answer:
1.50
Explanation:
Calculation to determine what should be the charge to depletion expense per ton of extracted material
Land cost $7,000,000
Add: Estimated restoration costs $1,500,000
Less: Value of Land after restoration (-$1,000,000)
Cost for Depletion $7,500,000
($7,000,000+$1,500,000-$1,000,000)
÷Divide by Total tons 5,000,000 tons
Depletion expense per ton 1.50
(7,500,000÷5,000,000 tons)
Therefore what should be the charge to depletion expense per ton of extracted material is 1.50
Suppose that Brazil imports semiconductors from the United States. The free market price is $30.00 per semiconductor. If the tariff on imports in Brazil is initially 40%, Brazilians pay_______ per semiconductor.
One of the accomplishments of the Uruguay Round that took place between 1986 and 1993 was significant across-the-board tariff cuts for industrial countries, as well as many developing countries. Suppose that as a result of the Uruguay Round, Brazil reduces its import tariffs to 20%. Assuming the price of semiconductors is still $30.00 per semiconductor, consumers now pay the price of_______ per semiconductor.
Based on the calculations and the scenarios presented, the Uruguay Round most likely_______ in Brazil and________ in the United States.
Answer:
a. $42
b. $36
c. benefits consumers in Brazil. They pay less by $6.
d. does not affect consumers and producers in the United States.
Explanation:
a) Data and Calculations:
Free market price of semiconductor = $30
Brazil tariff on imports = 40%
This means Brazilians pay $42 ($30 * 1.4) per semiconductor
New Brazil tariff on imports = 20%
This implies that Brazilians will now pay $36 ($30 * 1.2) per semiconductor
b) Import tariffs by Brazil are taxes imposed on imports into Brazil by the Brazilian government to discourage imports, generate revenue, and control the type of goods and services imported into Brazil. The Uruguay Round was an international trade conference that birthed the WTO. The purpose of the conference and the creation of WTO was to enable countries negotiate better trade deals and ensure the creation of free trade among the comity of nations.
Longview Manufacturing Company manufactures two products (I and II). The overhead costs ($60,500) have been divided into three cost pools that use the following activity drivers:
Number of Labor
Product Number of Orders Transactions Labor Hours
I 15 50 500
II 10 150 2,000
Cost per pool $12,500 $8,000 $40,000
If the number of labor hours is used to assign labor costs from the cost pool, determine the amount of overhead cost to be assigned to Product I.
a. $8,000.
b. $58,000.
c. $9,600.
d. $32,000.
Answer:
a. $8,000.
Explanation:
The computation of the amount of overhead cost assigned to the product I is shown below:
= $40,000 ÷ 2,500 × $500
= $8,000
Hence, the amount of overhead cost assigned to the product I is $8,000
Therefore the correct option is a.
Consider the following two, completely separate, economies. The expected return and volatility of all stocks in both economies is the same. In the first economy, all stocks move together - in good times all prices go up together and in bad times they all fall together. In the second economy, stock returns are independent - one stock increasing in price has no effect on the prices of other stocks. Assuming you are risk-averse and you could choose one of the two economies in which to invest, which one would you choose
Answer:
As a risk averse investor I would choose the second option.
Explanation:
As a risk averse investor I would choose the second option. The second option described case whereby In an
economy whereby stocks returns are independent. And with this, risk can be diversified away as far as a large portfolio is concerned.
Prepare journal entries to record each of the following four separate issuances of stock. A corporation issued 2,000 shares of $10 par value common stock for $24,000 cash. A corporation issued 1,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $52,000. The stock has a $5 per share stated value. A corporation issued 1,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $52,000. The stock has no stated value. A corporation issued 500 shares of $75 par value preferred stock for $89,500 cash.
Answer:
A. Dr Cash $24,000
Cr common stock $20,000
Cr paid in capital in excess of par-value common stock $4,000
B. Dr organization Expense $52,000
Cr common stock $5,000
Cr paid in capital in excess of par-value common stock $47,000
C. Dr organization expense $52,000
Cr Common Stock $52,000
D. Dr Cash $89,500
Cr Preferred stock $37,500
Cr paid in capital in excess of par-value common stock $52,000
Explanation:
Preparation of the journal entries to record each of the following four separate issuances of stock
A. Dr Cash $24,000
Cr common stock $20,000
(2000*10)
Cr paid in capital in excess of par-value common stock $4,000
($24,000-$20,000)
B. Dr organization Expense $52,000
Cr common stock $5,000
(1,000*$5)
Cr paid in capital in excess of par-value common stock $47,000
($52,000-$5,000)
C. Dr organization expense $52,000
Cr Common Stock $52,000
D. Dr Cash $89,500
Cr Preferred stock $37,500
(500*$75)
Cr paid in capital in excess of par-value common stock $52,000
($89,500-$37,500)
Bizsupply, a manufacturer of office supplies, ended the current year with annual sales (at cost) of $68 million. During the year, the inventory of accessories turned over eight times. For the next year, Bizsupply plans to increase annual sales (at cost) by 25%. What inventory turns must Bizsupply achieve if, through better supply chain management, it wants to support next year's sales with no increase in the average aggregate inventory value?
Answer:
the inventory turns will be "10". A further explanation is given below.
Explanation:
The given values are:
Annual sales,
= $68
Number of inventory turns,
= 8
Increase annual sales,
= 25%
Now,
The average inventory will be:
= [tex]\frac{Annual \ sales}{Number \ of \ inventory \ turns}[/tex]
On substituting the given values, we get
= [tex]\frac{68}{8}[/tex]
= [tex]8.5 \ million[/tex]
The projected annual sales will be:
= [tex]68\times 1.25[/tex]
= [tex]85[/tex]
then,
The revised inventory turns will be:
= [tex]\frac{Project \ annual \ sales}{Average \ inventory}[/tex]
= [tex]\frac{85}{8.5}[/tex]
= [tex]10[/tex]
DriveTrain, Inc. instituted a new process in October 2020. During October, 13,800 units were started in Department A. Of the units started, 8,950 were transferred to Department B, and 4,850 remained in Work-in-Process at October 31, 2020. The Work-in-Process at October 31, 2020, was 100% complete as to material costs and 50% complete as to conversion costs. Material costs of $37,260 and conversion costs of $45,500 were charged to Department A in October. What were the total costs transferred to Department B assuming Department A uses weighted-average process costing
Answer:
$59,965
Explanation:
Equivalent Units
Materials = 8,950 x 100 % + 4,850 x 100 % = 13,800 units
Conversion Costs = 8,950 x 100 % + 4,850 x 50 % = 11,375 units
Total Costs
Materials = $37,260
Conversion Costs = $45,500
Cost per Equivalent unit
Materials = $37,260 / 13,800 units = $2.70
Conversion Costs = $45,500/ 11,375 units = $4.00
Total Unit Cost = $2.70 + $4.00 = $6.70
Total costs transferred to Department B
Total costs = 8,950 x $6.70 = $59,965
Therefore, the total costs transferred to Department B is $59,965
You have been approached by one of the staff who works testing equipment that passes through your facility. Every day, you receive computers from the university that have been repaired but now need to be tested to ensure that they can work under high stress. This means running them in your test labs. Because the test labs are as stressful on the test equipment as it is on the computers, you have planned for downtime in the past. To get this downtime, you have tried to ensure that effective capacity utilization is about 65 percent. Yet, the staff person has informed you that a backlog of yet-to-be tested equipment is building up. Furthermore, the test equipment is now starting to break at a rate faster than anticipated. To address this issue, you know that the design or maximum capacity is 720 hours and that over the last three weeks, you have spent 600 hours per week testing equipment.
Based on this data, what is our effective capacity utilization?
You have been approached by one of the staff who works testing equipment that passes through your facility. Every day, you receive computers from the university that have been repaired but now need to be tested to ensure that they can work under high stress. This means running them in your test labs. Because the test labs are as stressful on the test equipment as it is on the computers, you have planned for downtime in the past. To get this downtime, you have tried to ensure that effective capacity utilization is about 65 percent. Yet, the staff person has informed you that a backlog of yet-to-be tested equipment is building up. Furthermore, the test equipment is now starting to break at a rate faster than anticipated. To address this issue, you know that the design or maximum capacity is 720 hours and that over the last three weeks, you have spent 600 hours per week testing equipment.
You have been approached by one of the staff who works testing equipment that passes through your facility. Every day, you receive computers from the university that have been repaired but now need to be tested to ensure that they can work under high stress. This means running them in your test labs. Because the test labs are as stressful on the test equipment as it is on the computers, you have planned for downtime in the past. To get this downtime, you have tried to ensure that effective capacity utilization is about 65 percent. Yet, the staff person has informed you that a backlog of yet-to-be tested equipment is building up. Furthermore, the test equipment is now starting to break at a rate faster than anticipated. To address this issue, you know that the design or maximum capacity is 720 hours and that over the last three weeks, you have spent 600 hours per week testing equipment.Based on this data, what is our effective capacity utilization?
Speedy Delivery Company purchases a delivery van for $36,000. Speedy estimates that at the end of its four-year service life, the van will be worth $6,400. During the four-year period, the company expects to drive the van 148,000 miles. Actual miles driven each year were 40,000 miles in year 1 and 46,000 miles in year 2. Required: Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.)
Answer:
Year 1 = $8000
Year 2 = $9200
Explanation:
($36000 - $6400) ÷ 148000 = $0.2 /miles
Year 1,
40000 × $0.2 = $8000
Year 2,
46000 × $0.2 = $9200
but I don't know these were pure logic, no formula whatsoever... feel free to delete them if its wrong..
Felicity has modified the location of elements on a form and now needs to ensure that users can navigate using the keyboard. Which option should she use?
Tab order
Keyboard shortcuts
Tools > Align
Tools > Arrange
Answer:
Tab order
Explanation:
Just took it
Answer: A
Explanation:
During 2012, Charles Inc. recorded credit sales of $2,000,000. Based on prior experience, it estimates a 1 percent bad debt rate on credit sales. At the beginning of the year, the balance in net accounts receivable was $150,000. At the end of the year, but before the bad debt expense adjustment was recorded and before any bad debts had been written off, the balance in net accounts receivable was $125,000. Assume that on December 31, 2012, the appropriate bad debt expense adjustment was recorded for the year 2012 and accounts receivable totaling $10,000 were written off for the year, what was the receivables turnover ratio for the year? Please round to one decimal place
Answer:
Charles Inc.
The receivables turnover ratio for the year is:
= 14.5
Explanation:
a) Data and Calculations:
Credit Sales for 2012 = $2,000,000
Allowance for bad debt = 1% on credit sales ($20,000)
Beginning net accounts receivable = $150,000
Ending net accounts receivable = $125,000
Average receivable = ($150,000 + $125,000)/2 = $275,000/2 = $137,500
Receivables turnover ratio = Sales/Average receivable
= $2,000,000/$137,500
= 14.5
b) Charles Inc.'s Receivables Turnover Ratio shows how efficiently the company is able to manage its credit sales through effective and efficient collection of trade debts from customers. It is computed by dividing the credit sales by the average receivable.
Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $589,600 with 376,800 estimated direct labor hours. Deluxe widget production requires 4 direct labor hours for each unit, and regular widget production requires 4 direct labor hours for each unit. Using a single plantwide factory overhead rate with an allocation base of direct labor hours, the factory overhead that Challenger Factory will allocate to regular widget production if budgeted production of regular widgets for the period is 75,000 units and actual production of regular widgets for the period is 127,500 units would be
Answer:
Challenger Factory
The total factory overhead that Challenger Factory will allocate to regular widget production if budgeted production is 75,000 units and actual production for the period is 127,500 units would be:
= $795,600.
Explanation:
a) Data and Calculations:
Total budgeted factory overhead = $589,600
Total estimated direct labor hours = 376,800
Overhead rate = $589,600/376,800 = $1.56
Direct labor hours per unit of widget = 4 hours
Budgeted production of regular widgets for the period = 75,000 units
Total direct labor hours for the period = 75,000 * 4 = 300,000 hours
Actual production of regular widgets for the period = 127,500
Total direct labor hours for regular widgets = 510,000 (127,500 *4)
Total factory overhead that Challenger Factory will allocate to regular widget production if budgeted production is 75,000 units and actual production for the period is 127,500 units would be:
= 510,000 * $1.56 = $795,600
True or False
When operating a franchise, you have the opportunity to run the business as you so choose.
Please help asap
Answer:
true obviously, you can run your buisness however you please its yours
Purchases of merchandise on account were $300,000. b. The cost of freight to receive the inventory was $10,000. This was paid in cash. c. Debra returned $5,000 of the merchandise due to an ordering error. Debra received a full credit for the return. d. Debra paid the remaining balance for the merchandise. Calculate the dollar amount that Debra will have in inventory at the end of the month. Assume Debra uses the perpetual inventory system and there were no sales.
Answer:
$305,000
Explanation:
Calculation for the dollar amount that Debra will have in inventory at the end of the month
Purchases of merchandise on account were $300,000
Add Cost of freight to receive the inventory was $10,000
Less merchandise returned $5,000
Inventory ending Dollar amount $305,000
($300,000+$10,000-$5,000)
Therefore the dollar amount that Debra will have in inventory at the end of the month is $305,000
A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased workload, so the company is considering three alternatives, A (new location), B (subcontract), and C (expand existing facilities). Alternative A would involve substantial fixed costs but relatively low variable costs: fixed costs would be $250,000 per year, and variable costs would be $700 per boat. Subcontracting would involve a cost per boat of $3,100, and expansion would require an annual fixed cost of $60,000 and a variable cost of $1,700 per boat. Expansion would result in an increase of $81,000 per year in transportation costs, sub-contracting would result in an increase of $28,000 per year, and adding a new location would result in an increase of $5,200 per year.
1. Find the range of output for each alternative that would yield the lowest total cost.
A. 315,550 or more.
B. 2,550 or 306,000.
c. 57,050 or 182,000.
2. Which alternative would yield the lowest total cost for an expected annual volume of 115 boats?
A. A.
B. B.
C. C.
Answer:
1. A. 315,550 or more
2. B. B
Explanation:
Number of boats is 115
Alternative A :
New location cost are
Fixed cost $250,000
Transportation cost increase is $5200
Variable cost is $700 per boat
Total cost per boat is (250,000 + 5200 ) / 115 + 700 = 2,919 per boat.
Alternative B :
Subcontract costs are
Transportation cost increase is $28,000
cost per boat is $3,100 per boat
Total cost per boat is 28,000 / 115 + 3,100 = 3,343 per boat.
Alternative C :
New location cost are
Fixed cost $60,000
Transportation cost increase is $81,000
Variable cost is $1,700 per boat
Total cost per boat is (60,000 + 81,000 ) / 115 + 1,700 = 2,926 per boat.
Best alternative is A ( New Location ) which results in lowest total cost per boat.
Answer:
315,550 or more.
Explanation:
Assume that IBM leased equipment that was carried at a cost of $88,000 to Wildhorse Company. The term of the lease is 5 years December 31, 2019, with equal rental payments of $27,365 beginning December 31, 2019. The fair value of the equipment at commencement of the lease is $118,001. The equipment has a useful life of 5 years with no salvage value. The lease has an implicit interest rate of 8%, no bargain purchase option, and no transfer of title. Collectibility of lease payments for IBM is probable. Assume the sales-type lease was recorded at a present value of $118,001.
Required:
Prepare IBMâs December 31, 2020, entry to record the lease transaction with Wildhorse Company.
Answer:
Note: The correct word is "Assume that IBM leased equipment that was carried at a cost of $118,001 to Wildhorse Company"
Date Account Titles and Explanation Debit Credit
Dec 31, Cash $27,365
2021 Lease Receivable $20,114
Interest Revenue b$7,251
[($118001 - $27365) * 8%]
(To record receipt of lease payment along with interest)
Roberto Baldwin As the owner and manager of Fantastic Toys, Roberto Baldwin is fascinated by all the changes occurring and transforming the workplace. Roberto is concerned about the important OB trends that he can understand and take advantage of in developing and positioning his company in the marketplace. If Roberto wants to study deep-level diversity in his organization, he should:_________
A) increases its connectivity with people and organizations in other parts of the world.
B) serves diverse customers within the firm's home country.
C) has a diverse workforce within the firm's home country.
D) has a substantially strong domestic market.
Answer:
A) increases its connectivity with people and organizations in other parts of the world.
Explanation:
deep-level diversity which can be regarded as task-related diversity is
less observable as well as deeper-leveled attributes which could be
attitudes, functional expertise and personality. In the case above, If Roberto wants to study deep-level diversity in his organization, he should increases its connectivity with people and organizations in other parts of the world.
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $22, computed as follows: Direct materials $ 9 Direct labor 7 Variable manufacturing overhead 1 Fixed manufacturing overhead 5 Unit product cost $ 22 An outside supplier has offered to provide the annual requirement of 7200 of the parts for only $19 each. The company estimates that 80% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:
Answer:
$ 2 per unit on average
Explanation:
Calculation for what the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:
First step is to calculate the Relevant cost of making
Relevant cost of making = 9 + 7 + 1 + ( 5 * 80 % ) Relevant cost of making= $ 21
Now let calculate the Financial advantage of buying
Financial advantage of buying = ( 21 - 19 )
Financial advantage of buying= $ 2 per unit on average
Therefore the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:$ 2 per unit on average
Marley Woods Resort would like to buy some land and build a luxury living center. The anticipated total cost is $20.5 million. The CEO of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for the entire construction project. Management has decided to save $1.2 million a quarter for this purpose. The firm earns 6.25 percent, compounded quarterly, on the funds it saves. How long does the company have to wait before expanding its operations
Answer:
3.82 years
Explanation:
FV of annuity = P[(1+r)^n - 1 / r]
Where FV = $20,500,000; P = $1,200,000; r = 6.25%/4 = 1.5625% quarterly
20,500,000 = 1,200,000 * [1+0.015625)^n - 1/0.015625]
20,500,000 / 1,200,000 = [1+0.015625)^n - 1/0.015625]
17.0833 = [(1+0.015625)^n - 1 / 0.015625]
17.0833 * 0.015625 = (1+0.015625)^n - 1
0.266927 = (1+0.015625)^n - 1
1.266927 = (1 + 0.015625)^n
Taking log of both sides of equation
LN(1.266927) = n*LN(1.015625)
n = LN(1.266927)/LN(1.015625)
n = 0.236594/0.015504
n = 15.26 quarters
No of years = 15.26/4
No of years = 3.82 years
A company incurs factory overhead costs of $1,200 and applied $1,500. If the difference is considered immaterial, then the:_______
a) adjusting entry will require a debit to Cost of Goods Sold.
b) adjusting entry will require a credit to Cost of Goods Sold.
c) Factory Overhead account has a credit balance of $300 before adjusting.
d) Factory Overhead account has a debit balance of $300 before adjusting.
Answer:
b) adjusting entry will require a credit to Cost of Goods Sold.
c) Factory Overhead account has a credit balance of $300 before adjusting.
Explanation:
Given that
Actual Overhead = $1200 i.e. debited to the factory overhead account
And,
Applied overhead = $1500 i.e. Credited to the factory overhead account
So, the Factory overhead account has a credit balance of $300 prior adjusting
Also the applied overhead is higher than the actual one so the adjusting entry would needed to credit to the cost of goods sold
Costco is able to keep costs down and offer low prices thanks to a no-frill shopping experience for its 64 million members. They offer around 4000 different products and do take into consideration customer preferences. After realizing the popularity of organic food products, Costco quickly stocked more of these items and created an initiative to help farmers buy land to grow organic crops. How does Costco prioritize efficiency and responsiveness
Answer:
Costco is following Customer Oriented Strategy in the business.
Explanation:
Costco offers around 4000 different products to its 64 million members. Costco is now planning to stock more of organic products as the popularity for these products among its customers in gaining significance. Costco has also planned to help farmers to grow organic farms which will benefit the Costco customers. This is customer oriented strategy because Costco is focusing on the needs of its customers.
Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2021, Isaac had $621 million in sales of this type. Scheduled collections for these sales are as follows:
2021 $61 million
2022 121 million
2023 131 million
2024 152 million
2025 156 million
$621 million
Assume that Isaac has a 25% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses and additional sales in 2022, what deferred tax liability would Isaac report in its year-end 2022 balance sheet?
a. $128 million.
b. $59 million.
c. $104 milion.
d. $8 million.
Answer:
$109,750,000
Explanation:
Note: Options provided in the question belong to similar question but different numbers
Deferred Tax liability = (Revenue from specific sales in 2021 - Cash received against it up to 2022) * Tax rate
Deferred Tax liability = ($621 million - $61 million - $121 million) * 25%
Deferred Tax liability = $439 million * 25%
Deferred Tax liability = $109,750,000
The manager of the main laboratory facility at CapitalHealth Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed but that some costs remain the same each month regardless of the number of lab tests performed. The lab manager collected the following data for the first seven months of the year. (Click the icon to view the data.) Use the high-low method to determine the laboratory's cost equation for total laboratory overhead. Use your results to predict total laboratory overhead if 3,000 lab tests are performed next month.
Number of Lab Tests Performed Total Laboratory Overhead Costs Month January February March ....... 2,800 2,600 3,100 April 3,550 $21,500 $22,700 $27,900 $31,400 $28,500 $19,500 $14,500 May ....... 3,700 1,200 June July 1,400
Answer:
Total cost= $26,668
Explanation:
Giving the following information:
Highest cost= $31,400
Lowest cost= $14,500
Highest activity= 3,700
Lowest activity= 1,200
To calculate the variable and fixed costs, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (31,400 - 14,500) / (3,700 - 1,200)
Variable cost per unit= $6.76
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 31,400 - (6.76*3,700)
Fixed costs= $6,388
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 14,500 - (6.76*1,200)
Fixed costs= $6,388
Now, for 3,000 tests:
Total cost= 6,388 + 6.76*3,000
Total cost= $26,668
The following data were taken from the accounting records of the Mixing Department of Kappa Corporation which uses the weighted-average method in its process costing system:
Beginning work in process inventory:
Cost $ 19,000
Units 30,000 units
Percent completion with respect to materials 100 %
Percent completion with respect to conversion 60 %
Units completed and transferred out 82,000 units
Cost per equivalent unit:
Material $ 1.50
Material $ 0.75
The cost of units transferred out was:________.
a. $184,500
b. $149,500
c. $167,500
d. $145,000
Answer:
a. $184,500
Explanation:
The computation of the cost of units transferred out is shown below:
Total unit cost is
= $1.50 + $0.75
= $2.25 per unit
And, Unit completed and transferred out = 82000
So, Cost of unit completed and transferred out is
= 82,000 units × $2.25
= $184,500
hence, the correct option is a.
Tourism is one of the largest economic components of Hawaii.
a. True
b. False
Answer: True
Explanation:
Tourism is regarded as one of the largest economic components of Hawaii.
Tourism is known to generate about 21% of the revenue that Hawaii earns in its economy. The country has many tourist attraction and there are always visitors who come into the country.
Tourism generates employment opportunities for the people, revenue for the government and.bribgs about economic growth.
Zach is employed by Scott Paper Company and is a key account manager on the WalMart team based in Bentonville, AR so he can be near the corporate headquarters of WalMart. Zach was selected to lead the WalMart purchasing team for paper towels, toilet tissue and other paper products. He coordinates vendors, analyzes sales data, assists with plan-a-gram layouts, and is responsible for interacting with other suppliers in addition to the purchasing and logistics teams at WalMart. Zach's role at WalMart is known as a(n):
Answer: d. channel captain
Explanation:
Channel captains as the term implies, are in charge of a good's distribution channel such that they are to coordinate things to ensure that the good keeps being traded efficiently.
They are responsible for coordinating vendors, and maintaining relationships necessary to keep the good moving. They are also to report on their activities with a view towards expansion. This is what Zach does therefore he is a channel captain.