Answer: e. Both b & d
Explanation:
Economies and Efficiency can be achieved by managing costs better. This can be done by training employees more so that they may use deep skills gained to be able to keep costs low by being more efficient on the job.
A good place to reduce costs would be the common costs. The business can target these costs by optimising them which means to reduce costs while still maximizing output and value. Reducing the costs here would lead to better efficiency.
Lefty provides demolition services in several southern states. Lefty has property as follows: Property State Beginning Ending Alabama $ 123,044 $ 204,241 Kentucky $ 203,317 $ 185,108 Mississippi $ 881,932 $ 1,002,396 Louisiana $ 243,951 $ 350,310 Tennessee $ 143,204 $ 143,204 Total $ 1,595,448 $ 1,885,259 Lefty is a Mississippi corporation. Lefty also rents property in Mississippi and Tennessee with annual rents of $56,000 and $21,000, respectively. What is Lefty's Mississippi property numerator
Answer:
Lefty's Mississippi property numerator is
Property Numerator = $56,000
Which can be expressed as a percentage of the Average Annual Property Value
= Annual Rent/Average Annual Property
= $56,000/$942,164 x 100 = 5.9%
Explanation:
a) Data:
Property State Beginning Ending
Alabama $ 123,044 $ 204,241
Kentucky $ 203,317 $ 185,108
Mississippi $ 881,932 $ 1,002,396
Louisiana $ 243,951 $ 350,310
Tennessee $ 143,204 $ 143,204
Total $ 1,595,448 $ 1,885,259
b) Calculations:
Mississippi
Beginning Property value = $ 881,932
Ending Property value = $ 1,002,396
Average annual property value = $942,164 ($ 881,932 + $ 1,002,396)/2
Rent in Mississippi = $56,000
If the economy booms, RTF, Inc., stock is expected to return 13 percent. If the economy goes into a recessionary period, then RTF is expected to only return 5 percent. The probability of a boom is 83 percent while the probability of a recession is 17 percent. What is the variance of the returns on RTF, Inc., stock
Answer: 0.000903
Explanation:
Expected return is the sum of the probability that the other returns will happen.
= (13% * 83%) + (5% * 17%)
= 10.79 % + 0.85%
= 11.64%
Variance = ((Return during boom - Expected return)²*probability of boom) + ((Return during recession - Expected Return)²*probability of recession)
Variance = ((13% -11.64%)² * 83%) + (5% - 11.64%)² * 17%)
= 0.0001535168 + 0.0007495232
= 0.000903
Designs by Candice is a graphic design studio specializing in logos and business stationery. Candice has just made a $69,300 investment in her company and desires a 11% return. Annually, she designs and prints 3,000 orders. Her costs include
Answer:
Designs by Candice
Her costs include:
Costs of materials, labor, overheads.
Then in charging her customers she would include the profit target of $7,623 (representing 11% of her capital investment).
Explanation:
As a graphic design studio, Design by Candice would buy stationery and design materials, including 3D printers and other software. Candice would also incur labor costs on those doing the design proper. There are also manufacturing overheads, including rent, utilities, etc. and not to forget other indirect costs like selling and marketing and administrative expenses.
In 20X1, Waters LLC generates ordinary business income of $40,000 and makes no distributions to its partners. In 20X2, Waters recognizes $0 ordinary income, but makes a $20,000 total cash distribution to its partners. Pink, a 25% member in Waters, has an outside basis in Waters of over $200,000 when 20X1 begins. What amount of income will Pink recognize in 20X1 and 20X2
Answer:
$10,000 in 20X1 and $0 in 20X2
Explanation:
Pink is allocated $10,000 ($40,000 x 25%) of income in 20X1. In 20X2, Pink is allocated $0 income, as distributions are generally NOT taxable if they do not exceed basis
The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 54,000 shares authorized, 15,000 shares issued, and 4,000 shares held as treasury stock. What is the entry when the dividends are declared
Answer:
DR Dividends $6,600
CR Dividends Payable $6,600
Explanation:
Out of 54,000 shares, 15,000 are issued. Of those 15,000, 4,000 are held as Treasury stock.
Dividends will be;
= (15,000 - 4,000) * $0.6
= $6,600
PROBLEM 1:
Equipment A Equipment B
cost $100,000 $63,000
Accumulated depreciation(1/1) $ 42,000 $36,000
Useful life 8 years 5 years
Depreciation method straight line straight line
Date sold 7/1/12 9/1/12
Sales price $ 39,000 $ 20,000
Journalize all entries required to update deprecition and record thesales of the two assets in 2012.accumulated depreciation includes depreciation recorded through 12/31/11.
Answer:
Equipment A
Journal Entry - update depreciation
Depreciation expense $6,250 (debit)
Accumulated depreciation $6,250 (credit)
Journal Entry - to record the sale
Accumulated depreciation ($ 42,000 + $6,250) $48,250 (debit)
Cash $ 39,000 (debit)
Profit and Loss $12,750 (debit)
Equipment $100,000 (credit)
Equipment B
Journal Entry - update depreciation
Depreciation expense $6,300 (debit)
Accumulated depreciation $6,300 (credit)
Journal Entry - to record the sale
Accumulated depreciation ($36,000 + $6,300) $42,300 (debit)
Cash $ 20,000 (debit)
Profit and Loss $700 (debit)
Equipment $63,000 (credit)
Explanation:
Straight line method charges a fixed amount of depreciation for the time the asset is in use in the business.
Depreciation Expense = (Cost - Residual Value) / Estimated Useful Life
Equipment A
Depreciation Expense = $100,000 / 8 years
= $12,500
Depreciation Expense for 2012 = $12,500 × 6/12
= $6,250
Journal Entry - update depreciation
Depreciation expense $6,250 (debit)
Accumulated depreciation $6,250 (credit)
Journal Entry - to record the sale
Accumulated depreciation ($ 42,000 + $6,250) $48,250 (debit)
Cash $ 39,000 (debit)
Profit and Loss $12,750 (debit)
Equipment $100,000 (credit)
Equipment B
Depreciation Expense = $63,000 / 5 years
= $12,600
Depreciation Expense for 2012 = $12,600 × 6/12
= $6,300
Journal Entry - update depreciation
Depreciation expense $6,300 (debit)
Accumulated depreciation $6,300 (credit)
Journal Entry - to record the sale
Accumulated depreciation ($36,000 + $6,300) $42,300 (debit)
Cash $ 20,000 (debit)
Profit and Loss $700 (debit)
Equipment $63,000 (credit)
On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,914. Cash receipts yet to be deposited into the checking account total $3,308, and checks written by the academy but not yet processed by the bank total $1,395. The company's balance of cash does not reflect a bank service fee of $32 and interest earned on the checking account of $43. These amounts are included in the balance of cash of $6,012 reported by the bank as of the end of August. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2021.
Answer: Reconciled ending balance of cash=$7,925
Explanation:
Bank reconciliation is used by companies to reconcile thier ledger balances and that of their bank's balance and to make necessary adjustments where necessary.
BanK Reconcillation on August 31, 2021
Bank cash balance $6,012
add
Deposit outstanding +$3,308
deduct :
Checks outstanding -$1,395
Bank balance reconciliation $7,925
Company's book balance $7,914.
add:
interest earned + $43
deduct:
service fees - $32
Company balance reconciliation $7,925
Nick and Dale owned Buddy Corporation and had contacted Kurt's Warehousing to about storing some goods. Per the warehouse receipt, Nick and Dale would store the goods on its premises. This is an example of _______________.
Answer:
Flex warehousing
Explanation:
Flex warehousing also known as Public Warehousing, is a form of warehousing in which various firms seek to store high-turnover product in spaces for short periods of time.
It is a type of warehouse space which allows many clients' products to be received, handled, stored, and transported out in a flexible environment.
It is used to cater for overflow of goods, so as to maximize the space and labor reserved for only one contract client at a time.
Hence , in this case, this is an example of FLEX WAREHOUSING.
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations:
Variable costs per unit:
Manufacturing:
Direct materials $14
Direct labor $5
Variable manufacturing overhead $1
Variable selling and administrative $1
Fixed costs per year:
Fixed manufacturing overhead $264,000
Fixed selling and administrative $ 174,000
During the year, the company produced 33,000 units and sold 15,000 units. The selling price of the company’s product is $52 per unit.
Required:
1. Assume that the company uses absorption costing:
a. Compute the unit product cost.
b. Prepare an income statement for the year.
2. Assume that the company uses variable costing:
a. Compute the unit product cost.
b. Prepare an income statement for the year.
Answer:
1a. $28
1b. Income statement for the year Absorption Costing
Sales (15,000 units × $52) $780,000
Less Cost of Sales
Opening Stock $0
Add Cost of Goods Manufactured $924,000
Less Closing Inventory ($504,000) $420,000
Gross Profit $360,000
Less Expenses :
Selling and administrative Expenses :
Variable ($1 × 15,000 units) ($15,000)
Fixed ($ 174,000)
Net Income/ (Loss) $171,000
2a. $20
2b. Income statement for the year Variable Costing
Sales (15,000 units × $52) $780,000
Less Cost of Sales
Opening Stock $0
Add Cost of Goods Manufactured $660,000
Less Closing Inventory ($360,000) ($300,000)
Gross Profit $480,000
Less Expenses :
Selling and administrative Expenses :
Fixed manufacturing overhead ($264,000)
Variable ($1 × 15,000 units) ($15,000)
Fixed ($ 174,000)
Net Income/ (Loss) $27,000
Explanation:
Absorption Costing :
Unit product cost = all manufacturing costs (fixed and variable)
= $14 + $5 + $1 + ($264,000 / 33,000)
= $28
Cost of Goods Manufactured = 33,000 units × $28
= $924,000
Closing Inventory = 18,000 units × $28
= $504,000
Variable Costing :
Unit product cost = variable manufacturing costs
= $14 + $5 + $1
= $20
Cost of Goods Manufactured = 33,000 units × $20
= $660,000
Closing Inventory = 18,000 units × $20
= $360,000
michael's Inc. just paid $2.75 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.9 percent. If you require a rate of return of 10.1 percent, how much are you willing to pay today to purchase one share of the company's stock?
Answer:
$69.33
Explanation:
Calculation for how much are you willing to pay today to purchase one share of the company's stock
Using this formula
P(0)=[Annual dividend *(Increase in future dividend)]/ (Rate of return- Increase in future dividend)
Let plug in the formula
P(0)=[$2.75*(1+0.059)]/(0.101-0.059)
P(0)=$2.75*1.059/0.042
P(0)=$2.91225/0.042
P(0)=$69.33
Therefore the amount you are willing to pay today to purchase one share of the company's stock will be $69.33
A local finance company quotes an interest rate of 19.9 percent on one-year loans. So, if you borrow $48,000, the interest for the year will be $9,552. Because you must repay a total of $57,552 in one year, the finance company requires you to pay $57,552/12, or $4,796.00 per month over the next 12 months.
Required:
a. What rate would legally have to be quoted?
b. What is the effective annual rate?
Answer:
a. What rate would legally have to be quoted?
banks are required to quote the APR, which in this case is 19.9%b. What is the effective annual rate?
22.1%Explanation:
Annual percentage rate (APR) = [($9,552 / $48,000) / 365] x 365 x 100 = 19.9%
In this case, you should only divide $9,552 / $48,000 and then multiply by 100 since the loan only lasts one year.
effective annual rate = (1 + 0.199/365)³⁶⁵ - 1 = 0.2201 = 22.1%
The result of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions was to:_______
a. Make it obligatory for companies to adopt a zero-tolerance approach toward grease payments.
b. Make grease payments mandatory in order to obtain exclusive preferential treatment in a host nation.
c. Consider payment of speed money to be moral, but illegal.
d. Make bribery of foreign officials a criminal offense but not consider facilitating payments a criminal offense.
e. Make it mandatory for companies to adhere to the pollution control standards of their home country in all the nations in which they do business.
Answer: d. Make bribery of foreign officials a criminal offense but not consider facilitating payments a criminal offense.
Explanation:
In December 1997, signatories accounting for around 70% of World Trade adopted the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions which stated that countries must install Legislative laws that would prohibit the bribing of foreign officials as well as strict penalties for parties who engage in such. This was done to ensure that the playing field was level so to speak instead of one company getting special treatment because they paid for it.
One concern however was that the Convention did not consider Facilitating Payments a criminal offence which means that it could be used as a bypass for the bribery of foreign officials to still happen.
A company purchased $270,000 in supplies during the year. The supplies account increased by $10,000 during the year to an ending balance of $66,000. For what amount was the adjusting entry to supplies expense?
Answer:
$260,000
Explanation:
Opening balance = Ending balance - Increase in ending balance
=$66,000 - $10,000
=$56,000
Supplies Expenses = Opening balance + Purchases - Closing balance
=$56,000 + $270,000 - $66,000
=$336,000 - $66,000
=$260,000
Therefore, the amount that will be the adjusting entry to supplies expenses is $260,000
railway cabooses justpaid its annual sividend of $1.70 per share. The company has been reducing the dividends by 11.3 percent each year. how much are you willing to pay today to purchase stock in this company if your required rate of return is 12 percent?
Answer:
$6.47
Explanation:
The computation of the current price of the stock is shown below:
= {Current Dividend x [1 + (Dividend Growth)} ÷ [Required rate of Return - (Dividend growth)]
= {$1.70 × [1 + (- 0.113)]} ÷ [0.12 - (- 0.113)]
= $1.5079 ÷ 0.233
= $6.47
hence, the current price of the stock valued today is $6.47 i.e come by applying the above formula
Jervis sells $3,900 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 3% factoring fee. What entry should Jervis make to record the transaction
Answer:
Dr cash $3783
Dr factoring fee expense $177
Cr accounts receivable $3900
Explanation:
The cash proceeds from the factoring arrangement would be 97% of the value of the receivables since 3% is the factoring fees expenses to be incurred.
Cash proceeds=$3900*97%=$ 3,783.00
Factoring fees expense=$3,900.00-$3,783.00=$117
Cash account and factoring fees expense would be debited with $3783 and $117 respectively, while accounts receivable is credited with $3900
Consider a team that you are familiar with - either by being a member of the team, a team leader, or a bystander. What were the team's goals?
Answer:
• To ensure that there is no income leakage whatsoever
• Ensure that there is no customer complaint made to the company's executives
• Early closure not later than 5pm daily, Monday to Friday
• Ensure customer survey ratings of at least 8.0
• Drive paperless environment.
• Daily reconciliation of the bank's transit accounts.
Explanation:
I used to belong to a team called settlement and reconciliation , which is under operations support, business banking in one of the top financial institution.
The goals are as listed above. For instance as a settlement and reconciliation team, you must ensure accurate settlement of all merchants such that none would receive excess settlement s which could deplete the bank's income. Also, there must be no customer complaint escalated to the bank's executives hence team must promptly resolve all queries and complaint.
Another goal is to drive early closure. No member of staff must remain in the office after 5pm unless permission is obtained to deal urgent transaction. Each year, the bank conducts internal survey among departments to know how well we treat our internal and external stakeholders. The least score approved for my team is 8.0 out of 10 , which must be met.
Again, one of the goals of the bank is paperless drive which was included in each team or unit's goals. We support the drive for paperless transactions by suggesting means to consummate transactions without printing. We must also ensure daily and timely reconciliation of all our transit accounts in order to ensure that no idle fund is sitting in there.
A new machine will cost $25,000. The machine is expectedto last 4 years and have no salvage value. If the interest rate is 12%, determine the return and the risk associated with the purchase. The following projections have been made.
Scenario 1 2 3
probability 0.3 0.4 0.3
annual savings $7000 $8500 $9500
Answer with its Explanation:
Requirement 1. Expected Annual Savings and Expected NPV
As we know that:
Expected Value = Probability P1 * Expected Value E1 + Probability P2 * Expected Value E2 + Probability P3 * Expected Value E3 + ....... Probability Pn * Expected Value En
Here
P1 is 0.3 and E1 is $7000
P2 is 0.4 and E2 is $8500
P3 is 0.3 and E3 is $9500
By putting values, we have
Expected Annual Savings = 0.3 * $7,000 + 0.4 * $8,500 + 0.3 * $9,500 = $8,350
The above amount would be for first four years, hence it must be discounted using the annuity formula to calculate the present value of four annual receipts.
Annuity = [1 - (1 + r)^-n] / r
By putting values, we have:
Annuity = $8,350 * [1 - (1 + 12%)^-4] / 12%
And
Expected NPV = ($25,000) + $8,350 * [1 - (1 + 12%)^-4] / 12%
= $361.87
Requirement 2. Probable Return Percentage
Return Percentage = NPV / Investment = $361.87/ $25,000
= 1.45%
Requirement 3. Associated risk
As we know that
Minimum return = Minimum annual savings – Uniform annual costs
Here
Minimum annual savings are $7,000
Uniform Annual Costs were $8,350
By putting values, we have:
Minimum return = $7,000 – $8,350 = -$1,350 per year
Requirement 4. Risk Amount Percentage
Risk Amount percentage = Minimum Return / Uniform annual costs * 100
Risk Amount percentage = $1,350 / 8,350 * 100 = 16.17%
Chester Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic initiatives. How much will the company pay in separation costs if each worker receives $5,000 when separated?
Answer:
$293,500
Explanation:
The computation of the amount pay in separation cost is shown below:
As there are 587 employees
but 10% are downsized
So, separation cost is
= Current employees × downsized percentage × received amount by workers
= 587 employees × 10% × $5,000
= $293,500
We simply applied the above formula so that the amount pay by the company with respect to the separation cost could arrive
Explain why a firm might want to continue operating and producing goods even after diminishing marginal returns have set in and marginal cost is rising.
Answer:
Explanation:
Overall in a scenario such as this one, a firm may continue operating and producing goods if they believe demand may go back up and result in higher returns or if they expect the tastes of consumers to change in the near future. Both of these will in term cause the market sentiment surrounding the firm's product to change and begin seeing more profitable times. Otherwise, a firm would cut their loses and stop operating and producing goods.
"A customer places an order with a registered representative to sell 5,000,000 shares of ABC stock (NYSE listed) "at the market." The registered representative should:"
Answer:
Contact the firm's large block trading desk.
Explanation:
The reason why the registered representative would contact the firm's large block trading desk is because the order is larger than what can be handled normally on the Newyork Stock Exchange (NYSE) floor. Where large order as in the above is to be sold on the stock exchange floor, such would normally be presented to the firm's large block trading desk who will now decide on how best to handle the order; hence not the duty of registered representative.
Based on past experience, the trade desk would likely hand over the order to one of ABC's stock brokers for execution because for example, Super Display Book - NYSE automated system, which is responsible for dealing NYSE listed issues, has certain limited orders they can take.
Effect of Inventory Errors During the taking of its physical inventory on December 31, 20Y3, Sellers Company incorrectly counted its inventory as $303,295 instead of the correct amount of $327,560 Indicate the effect of the misstatement on Sellers's December 31, 20Y3, balance sheet or income statement for the year ended December 31, 20Y3. For each, select if the amount is overstated or understated. Then, input the over or under amount, entered as a positive value
Cost of goods sold
Current assets
Gross profit
Inventory
Net income
Stockholders' equity
Total assets
Answer:
Cost of goods sold = overstated : $24,265
Current assets = understated : $24,265
Gross profit = understated : $24,265
Inventory = understated : $24,265
Net income = understated : $24,265
Stockholders' equity = understated : $24,265
Total assets = understated : $24,265
Explanation:
Inventory was understated by $24,265 ($327,560 - $303,295). Since inventory is an Asset, also it is a Income Statement element and consequently affects Retained Earnings (Distributions to Shareholders) , the effect is shown above.
Adams Bautista needs $26,700 in 8 years. Click here to view factor tables
Required:
a. What amount must he invest today if his investment earns 12% compounded annually?
b. What amount must he invest today if his investment earns 12% compounded annually?
Answer:
a. $10,783.68
b. $10,510.36 semi annual compounding
Explanation:
a. This question requires the present value of $26,700 given 8 years and compounded annually at 12%.
Present Value = [tex]\frac{Future Value}{ ( 1 + interest)^{number of periods} }[/tex]
Present Value = [tex]\frac{26,700}{ 1.12^{8} }[/tex]
Present Value = $10,783.68
He would need to invest $10,783.68 today.
b. This is a duplicate of question 1 but I will solve it assuming semi-annual compounding just in case.
12% per annum would become = 12/2 = 6% per semi annum
Number of periods would become = 8 * 2 = 16 periods
Present Value = [tex]\frac{Future Value}{ ( 1 + interest)^{number of periods} }[/tex]
Present Value = [tex]\frac{26,700}{ 1.06^{16} }[/tex]
Present Value = $10,510.36
He would need to invest $10,510.36 today.
On April 2, 2017, Montana Mining Co. pays $4,653,970 for an ore deposit containing 1,571,000 tons. The company installs machinery in the mine costing $231,600, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Montana begins mining on May 1, 2017, and mines and sells 154,100 tons of ore during the remaining eight months of 2017.
Required:
Prepare the December 31, 2017, entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mine's depletion.
Answer:
Date General Journal Debit Credit
Dec 31 Depletion expense (Mineral deposit) $456,510
($4,653,970 / 1,571,000 tons *154,100 tons )
Accumulated depletion—Mineral deposit $456,510
Dec 31 Depreciation expense—Machinery $22,718
($231,600 / 1,571,000 tons * 154,100 tons)
Accumulated depreciation—Machinery $22,718
Which of the following statements is false about Activity-based management?
A. While useful, activity-based management and Activity-Based Costing information is not always cost efficient to obtain
B. The information needed for activity-based management is a direct byproduct of Activity-Based Costing
C. Activity-based management is an activity that is similar to Activity-Based Costing but requires a very different set of information
D. Activity-based management is designed to help management know which activities add the most value to goods and services
Answer:
C. Activity-based management is an activity that is similar to Activity-Based Costing but requires a very different set of information
Explanation:
Activity based management is the process by which a business identifies activities that contributes more to profitability of the business. These activities are retained.
While activities whose cost does not justify the profit they generate are discarded.
Activity based costing is used to allocate cost of a product based on level of activity of a particular process.
Activity based management uses information from activity based costing to identify processes that contribute more to profitability.
So the statement - Activity-based management is an activity that is similar to Activity-Based Costing but requires a very different set of information. - Is false
Activity-based management (ABM) is a way of identifying and assessing activities that a firm conducts, as well as doing a value chain analysis or a re-engineering exercise to enhance strategic and operational decisions in an organization, utilizing activity-based costing.
So, option C is correct as this is the only false statement about activity based management.
The other options are incorrect as:
Option A is incorrect as yes activity-based management and activity-based costing are not always cost-efficient.
Option B is incorrect as yes activity-based management and activity-based costing have many similarities but they need different information.
Option D is incorrect as yes activity-based management analysis every good and services provided by company and help organization know which of them add more value to organization.
Thus every statement is correct only statement C is untrue.
For more information about activity-based management refer to the link:
https://brainly.com/question/17192507
Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of Gourmet Grill...
Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets
The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows:
a. Estimated sales for July by sales territory:
Maine:
Backyard Chef 310 units at $700 per unit
Master Chef 150 units at $1,200 per unit
Vermont:
Backyard Chef 240 units at $750 per unit
Master Chef 110 units at $1,300 per unit
New Hampshire:
Backyard Chef 360 units at $750 per unit
Master Chef 180 units at $1,400 per unit
b. Estimated inventories at July 1:
Direct materials:
Grates 290 units
Stainless steel 1,500 lbs.
Burner subassemblies 170 units
Shelves 340 units
Finished products:
Backyard Chef 30 units
Master Chef 32 units
c. Desired inventories at July 31:
Direct materials:
Grates 340 units
Stainless steel 1,800 lbs.
Burner subassemblies155 units
Shelves 315 units
Finished products:
Backyard Chef 40 units
Master Chef 22 units
d. Direct materials used in production:
In the manufacture of Backyard Chef:
Grates 3 units per unit of product
Stainless steel 24 lbs. per unit of product
Burner subassemblies 2 units per unit of product
Shelves 4 units per unit of product
In the manufacture of Master Chef:
Grates 6 units per unit of product
Stainless steel 42 lbs. per unit of product
Burner subassemblies 4 units per unit of product
Shelves 5 units per unit of product
e. The anticipated purchase price for direct materials:
Grates $15 per unit
Stainless steel $6 per lb.
Burner subassemblies $110 per unit
Shelves $10 per unit
f. Direct labor requirements:
Backyard Chef:
Stamping Department 0.50 hr. at $17 per hr.
Forming Department 0.60 hr. at $15 per hr.
Assembly Department 1.00 hr. at $14 per hr.
Master Chef:
Stamping Department 0.60 hr. at $17 per hr.
Forming Department 0.80 hr. at $15 per hr.
Assembly Department 1.50 hrs. at $14 per hr.
Required:
1. Prepare a sales budget for July.
Gourmet Grill Company
Sales Budget
For the Month Ending July 31
Product and Area Unit Sales
Volume Unit Selling
Price Total Sales
Backyard Chef:
Maine $ $
Vermont
New Hampshire
Total $
Master Chef:
Maine $ $
Vermont
New Hampshire
Total $
Total revenue from sales $
2. Prepare a production budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Gourmet Grill Company
Production Budget
For the Month Ending July 31
Units
Backyard Chef Master Chef
3. Prepare a direct materials purchases budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Gourmet Grill Company
Direct Materials Purchases Budget
For the Month Ending July 31
Grates
(units) Stainless Steel
(lbs.) Burner Sub-
assemblies
(units) Shelves
(units) Total
Required units for production:
Backyard Chef
Master Chef
Desired inventory, July 31
Total
Estimated inventory, July 1
Total units to be purchased
Unit price $ $ $ $
Total direct materials to be purchased $ $ $ $ $
4. Prepare a direct labor cost budget for July.
Gourmet Grill Company
Direct Labor Cost Budget
For the Month Ending July 31
Stamping
Department Forming Department Assembly Department Total
Hours required for production:
Backyard Chef
Master Chef
Total
Hourly rate $ $ $
Total direct labor cost $ $
Answer:
Gourmet Grill Company
1. Sales Budget for July:
Gourmet Grill Company
Sales Budget
For the Month Ending July 31
Product and Area Unit Sales
Volume Unit Selling Price Total Sales
Backyard Chef:
Maine 310 $700 $217,000
Vermont 240 $750 180,000
New Hampshire 360 $750 270,000
Total 910 $ 667,000
Master Chef:
Maine 150 $1,200 $ 180,000
Vermont 110 $1,300 143,000
New Hampshire 180 $1,400 252,000
Total 440 $575,000
2. Production Budget for July:
Gourmet Grill Company
Production Budget for the Month Ending July 31
Units
Backyard Chef Master Chef
Units sold 910 440
Ending inventory 40 22
less beginning inventory -30 -32
Units to be produced 920 430
3. Direct Materials Purchase Budget for July:
Gourmet Grill Company
Direct Materials Purchases Budget
For the Month Ending July 31
Grates (units) 5,390 units
Stainless Steel (lbs.) 40,440 lbs
Burner Sub- assemblies (units) 3,545 units
Shelves (units) 5,805 units
Total Required units for production:
Backyard Chef Master Chef Total for prodn.
Grates 2,760 units 2,580 units 5,340 units
Stainless steel 22,080 lbs 18,060 lbs 40,140 units
Burner subassemblies 1,840 units 1,720 units 3,560 units
Shelves 3,680 units 2,150 units 5,890 units
Total used July 31 Total July 1 Purchases
for prodn. Desired Estimated
Grates 5,340 340 5,680 290 5,390
Stainless steel 40,140 1,800 41,940 1,500 40,440
Burner subassemblies 3,560 155 3,7`15 170 3,545
Shelves 5,830 315 6,145 340 5,805
Grates Stainless Burner Shelves
Steel sub-assembly
Total units to be purchased 5,390 40,440 3,545 5,805
Unit price $15 $6 $110 $ 10
Total direct materials
to be purchased $80,850 $242,640 $389,950 $58,050
Total cost of direct materials to be purchased = $771,490
4. Direct labor cost budget:
Stamping Forming Assembly Total
Hours used:
Backyard Chef 460 552 920 1,932
Master Chef 258 344 645 1,247
Total hours used 718 896 1,565 3,179
Hourly rate $17 $15 $14
Total cost $12,206 $13,440 $21,910 $47,556
Explanation:
1) Data for July:
a) Sales by territory
Maine Vermont New Hampshire
Backyard Chef (units) 310 240 360 910
Master Chef (units) 150 110 180 440
Backyard Chef (prices) $700 $750 $750
Master Chef (prices) $1,200 $1,300 $1,400
Sales Value:
Backyard Chef $217,000 $180,000 $270,000
Master Chef 180,000 143,000 252,000
Total sales $397,000 $323,000 $522,000
b. Estimated Inventories at July 1:
Direct materials: Beginning Purchases Desired Ending Used
Grates 290 units 5,390 340 units 5,340
Stainless steel 1,500 lbs. 40,440 1,800 lbs 40,140
Burner subassemblies 170 units 3,545 155 units 3,560
Shelves 340 units 5,805 315 units 5,830
c. Cost of Materials: Units unit costs Total costs
Grates 5,390 $15 $80,850
Stainless steel 40,440 $6 $242,640
Burner subassemblies 3,545 $110 $389,950
Shelves 5,805 $10 $58,050
Total $771,490
d. Labor Cost
Labor cost per hour Hours Required
Backyard Master
Stamping Department $17 0.50 hr 0.60 hr
Forming Department $15 0.60 hr 0.80 hr
Assembly Department $14 1.00 hr 1.50 hrs
Units produced 920 430
Stamping Department total hours 460 hrs 258 hrs
Forming Department 552 hrs 344 hrs
Assembly Department 920 hrs 645 hrs
Direct labor Cost :
Stamping department $7,820 $4,386 $12,206
Forming department $8,280 $5,160 13,440
Assembly department $12,880 $9,030 21,910
Total $28,980 $18,576 $47,556
or
Stamping department cost $8.50 $10.20
Forming department cost 9.00 12.00
Assembly department cost 14.00 21.00
Direct labor cost per unit $31.50 $43.20
Units produced 920 430
Total direct labor cost $28,980 $18,576 $47,556
e. Materials Usage
Backyard Chef Master Chef Total
Units produced 920 430 1,350
Materials used:
Grates 2,760 units 2,580 units 5,340 units
Stainless steel 22,080 lbs 18,060 lbs 40,140 lbs
Burner subassemblies 1,840 units 1,720 units 3,560 units
Shelves 3,680 units 2,150 units 5,830 units
f) Finished products: Beginning Production Desired Ending Units Sold
Backyard Chef 30 units 920 units 40 units 910 units
Master Chef 32 units 430 units 22 units 440 units
The Book of Mormon is one of the biggest musical hits on Broadway. It has received many awards including Tony and Grammy Awards. According to Wikipedia, "High attendance coupled with aggressive pricing allowed the financial backers to recoup their investment of $11.4 million after just nine months of performances." While the highest ticket price was $477, the average price is $170. What is the variable cost per ticket
Answer:
variable cost per ticket = $129.60
Explanation:
some information is missing and I looked it up:
30 performances per month
1,100 seats in the theater and 95% occupancy rate
number of tickets sold during the first 9 months = 30 x 9 x 1,100 x 0.95 = 282,150 tickets
total revenue during the first 9 months = 282,150 x $170 = $47,965,500
variable costs = total revenue - fixed costs = $47,965,500 - $11,400,000 = $36,565,500
variable cost per ticket = $36,565,500 / 282,150 tickets = $129.5959 ≈ $129.60
On October 1, 2017, Waterway, Inc. assigns $1,160,700 of its accounts receivable to Wildhorse National Bank as collateral for a $747,900 note. The bank assesses a finance charge of 3% of the receivables assigned and interest on the note of 9%. Prepare the October 1 journal entries for both Waterway and Wildhorse.
Answer:
Waterway, Inc.
General Journal Debit Credit
Cash $713,079
Interest Expense ($1,160,700 * 3%) $34,821
Notes Payable $747,900
Wildhorse National Bank
General Journal Debit Credit
Notes Receivable $747,900
Cash $713,079
Interest Revenue ($1,160,700 * 3%) $34,821
Mario transferred real estate with an adjusted basis of $140,000 for similar real estate with a fair market value of $160,000. The exchange qualified as a like-kind exchange. The realized gain on the exchange was $
Answer:
$20,000
Explanation:
Calculation for th e realized gain on the exchange
Using this formula
Realized gain=Fair market value - Adjusted basis
Let plug in the formula
Realized gain=$160,000-$140,0000
Realized gain=$20,000
Therefore the realized gain on the exchange was $ 20,000
You are preparing a presentation on networking for a professional development seminar that your company is hosting for its employees. You look at the attendance list and see that you have good relationships with all of the registered seminar participants. Additionally, this presentation is a follow-up presentation that was requested by previous participants. You know you will have a friendly audience. What organizational pattern would be best for this situation
Answer:
any pattern.
Explanation:
When preparing a presentation for an organizational seminar, it is ideal to pre-analyze the audience for whom you will be presenting, the common characteristics of the audience will be essential for choosing the best organizational pattern.
In the scenario above, it is possible to perceive that the public is known and friendly, therefore any organizational pattern can be used, the focus in this case should be the use of a pattern that increases the involvement of the participants.
The essential thing is for the presenter to convey confidence by passing on important information, preparing beforehand, maintaining a friendly and cordial posture and being open to interaction with the public.
Patty Corporation holds 75 percent of Slider Corporation's voting common stock, acquired at book value. The fair value of the noncontrolling interest at the date of acquisition was equal to 25 percent of the book value of Slider Corporation. On December 31, 20X8, Slider Corporation acquired 25 percent of Janet Corporation's stock. Slider records dividends received from Janet as nonoperating income. In 20X9, Janet reported operating income of $100,000 and paid dividends of $40,000. During the same year, Slider reported operating income of $75,000 and paid $20,000 in dividends.
1) Based on the information provided, what amount will be reported as consolidated net income for 20X9 under the treasury stock method?
a. $150,000
b. $100,000
c. $75,000
d. $175,000
2) Based on the information provided, what amount will be reported as income assigned to the controlling interest for 20X9 under the treasury stock method?
a. $18,750
b. $156,250
c. $175,000
d. $100,000
Answer:
1) d. $175,000
2) b. $156,250
Explanation:
1. The computation of net income for 20X9 under the treasury stock method is shown below:-
Net income for 20X9 under the treasury stock method = Janet Operating income + Slider operating income
= $100,000 + $75,000
= $175,000
2. The computation of income assigned to the controlling interest for 20X9 is shown below:-
income assigned to the controlling interest for 20X9 = Janet Operating income + (Slider operating income × Remaining percentage)
= $100,000 + ($75,000 × 75%)
= $100,000 + $56,250
= $156,250
Therefore we have applied the above formulas.