Brief Exercise 8-5 Vaughn Company uses a periodic inventory system. For April, when the company sold 450 units, the following information is available. Units Unit Cost Total Cost April 1 inventory330$22$ 7,260 April 15 purchase380269,880 April 23 purchase 290 29 8,410 1,000 $25,550 Compute the April 30 inventory and the April cost of goods sold using the FIFO method. Ending inventory $ Cost of goods sold

Answers

Answer 1

Answer:

Results are below.

Explanation:

Giving the following information:

Units sold= 450 units

Units Unit Cost Total Cost

April 1 inventory= 330 units at $22

April 15 purchase= 380 units art $26

April 23 purchase= 290 units at $29

To calculate the ending inventory, first, we need to determine the number of units in ending inventory:

Ending inventory in units= 330 + 380 + 290 - 450= 550 units

Ending inventory FIFO= 290*29 + 260*26= $15,170

COGS= 330*22 + 120*26= $10,380


Related Questions

Consider a mutual fund with $200 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $2 million. The stocks included in the fund's portfolio increase in price by 8%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of 1%, which are deducted from portfolio assets at year-end. a. What is the fund's net asset value at the start and end of the year?

Answers

Answer:

At start = $20/share

At end = $21.384

Explanation:

DATA

ASSets at the start = $200m

Outstanding shares = 10m

Dividend income at the end = $2m

Gain in price = 8%

12b-1 fees = 1%

A.

Net assets at the start can be calculated by dividing assets at the start by outstanding shares

Net Assets value at start = Assets at start/Outstanding shares

Net Assets value at start = $200m/10m

Net Assets value at start = $20/share

Net Assets value at the end can be calculated by multiplying gain price with 12b-1 fees

Net assets value at the end = Gain Price x (1-12b-1 fees)

Net Assets value at the end = ($20x$1.08) x (1 - 0.01)

Net Assets value at the end = $21.6 x 0.99

Net Assets value at the end = $21.384

Health and Wealth Company is financed entirely by common stock that is priced to offer a 12 percent expected return. If the company repurchases 20 percent of the common stock and substitutes an equal value of debt yielding 8 percent, what is the expected return on the common stock after refinancing

Answers

Answer: 13%

Explanation:

By substituting 20% of debt for debt yielding 8%, the company now has 20% financing from debt and 80% from equity.

The expected return on common stock after refinancing can be calculated by;

Return after refinancing = Return before refinancing + [tex]\frac{Debt}{Equity}[/tex](return before refinancing - Debt yield)

= 12% + [tex]\frac{0.2}{0.8} (0.12 - 0.08)[/tex]

= 13%

The Bank of Bramblewood would like to increase its loans to customers, but it is currently mandated by a high reserve rate. As a Federal Reserve member bank, it will borrow additional funds from the Fed and charge its customers an interest rate that is higher than the ________________.

Answers

Answer: discount rate

Explanation:

It should be noted that the discount rate is the rate that is charged by the Federal Reserve when any of its member banks borrow money from it.

Therefore, Federal Reserve member bank, the Bank of Bramblewood will borrow additional funds from the Fed and charge its customers an interest rate that is higher than the discount rate.

If Piper Manufacturing manufactures one unique set of stack pipes, and the sell price is $121,000, the variable costs per unit are $62,000, and the fixed costs are $500,000, what is the break-even point in units

Answers

Answer:

8.47

Explanation:

The formula to calculate the break-even point in units is:

Break-even point in units=Fixed costs/(Selling price per unit-Variable cost per unit)

Fixed costs= $500.000

Selling price per unit= $121,000

Variable cost per unit= $62,000

Break-even point in units=$500,000/($121,000-$62,000)

Break-even point in units=$500,000/59,000

Break-even point in units=8.47

According to this, the break-even point in units is 8.47.

What is capital budgeting? a. The process of managing cash flow. b. The analysis of real asset investment opportunities. c. The process of managing current assets. d. None of the above.

Answers

Answer:

b. The analysis of real asset investment opportunities.

Explanation:

Capital Budgeting is the Process of appraising various alternatives of investments.

It uses techniques such as the Net Present Value methods, Internal Rate of Return and Payback Period methods to analyze the best alternatives of investments.

Your company has used competitive bidding to select a supplier for janitorial services. Three suppliers returned acceptable bids within the allotted time frame.
Category Weight Supplier A Rating Supplier B Rating Supplier C Rating
Quality systems 40% 2 3 2
Financial stability 29% 2 2 3
Management experience 20% 4 2 3
Price 11% 1 4 4
All scores on a five-point scale with 1poor, 5 excellent.
a. Calculate the total weighted score for each supplier. (Round your answers to 2 decimal places.)
Total Weighted Score
Supplier A
Supplier B
Supplier C
b. Based on these ratings from the supplier assessment, which supplier appears to be the best?
Supplier A
Supplier B
Supplier C

Answers

Answer:

Competitive Bidding based on Weighted Score

a. Calculation of the total weighted score for each supplier:

Supplier A :

Quality systems 40% x 2/5   = 16%

Financial stability 29% x 2/5 = 11.6%

Management experience 20% x 4/5 = 16%

Price 11% 1/5 = 2.2%

Total weighted score = 45.8%

Supplier B :

Quality systems 40% x 3/5 = 24%

Financial stability 29% x 2/5 = 11.6%

Management experience 20% x 2/5 = 8%

Price 11% x 4/5 = 8.8%

Total weighted score = 52.4%

Supplier C

Quality systems 40% x 2 /5 = 16%

Financial stability 29% x 3 /5 = 17.4%

Management experience 20% x 3 /5 = 12%

Price 11% x 4/5 = 8.8%

Total weighted score = 54.2%

b. Best Supplier:

Supplier C

Explanation:

a) Data and Calculations:

Category                          Weight    Supplier A   Supplier B   Supplier C

                                                          Ranking        Ranking      Ranking

Quality systems                 40%            2                 3                   2

Financial stability               29%            2                 2                   3

Management experience 20%            4                 2                   3

Price                                    11%              1                 4                   4

Standard Direct Materials Cost per Unit Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (2,857 bars) are as follows: Ingredient Quantity Price Cocoa 630 lbs. $0.40 per lb. Sugar 180 lbs. $0.60 per lb. Milk 150 gal. $1.60 per gal. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent. $ per bar

Answers

Answer:

Standard direct material cost per unit= $0.21

Explanation:

Giving the following information:

The standard costs for a batch of chocolate (2,857 bars) are as follows:

Cocoa 630 lbs. $0.40 per lb.

Sugar 180 lbs. $0.60 per lb.

Milk 150 gal. $1.60 per gal

First, we need to calculate the total cost for 2,857 bars:

Total cost= 630*0.4 + 180*0.6 + 150*1.6

Total cost= $600

Now, the unitary standard cost:

Standard direct material cost per unit= 600/2,857

Standard direct material cost per unit= $0.21

Summary: With 250,000 employees in 19 countries, Aramark wanted to motivate its employees who clean airplanes for Delta and Southwest Airlines. Turnover of the low-paid, largely immigrant staff was high while morale was low. Wallets and other valuables left on planes disappeared. After 5 years of efforts to increase motivation, revenue rose from $5 million to $14 million. 1. What motivation theories apply to the workers at Aramark? 2. If you were the manager of these employees, what would you do to motivate them? Be honest regarding your personal management style and beliefs rather than trying to be like Roy Pelaez. 3. What are some possible barriers to the effectiveness of your motivation ideas? What could you do to overcome them?

Answers

Answer:

Explanation:

(A)

What motivation theory applies to the workers at Aramark?

The workers should be motivated with payments for the return of valuables forgotten in the aircraft.

(B)

To motivate them, offer them a salary increase

(C)

Some possible barriers to the effectiveness of these motivation ideas are gluttony (depending on individual worker), a period of stiff or falling profit (which will hinder the smooth running of the new benefit policies), change of management.

(D)

What could you do, to overcome them?

To ensure that workers do not still steal forgotten valuables, place a check or supervision on them.

To ensure the profit level is maintained or increased, make sure the workers do not relent in their duties. Sometimes, more benefits make workers relax more.

Like a good economist, you calculated the opportunity cost of getting your college degree. Suppose that at your university, you will pay $10,000 each year for tuition, $2,500 each year for textbooks, and $12,000 per year for room and board. Before you left for college, your boss at your high-school job offered you a job paying $20,000 per year.
Assume that if you decided not to go to college, your parents would not let you live at home.
What is your opportunity cost for four years of college? $_______

Answers

Answer:

$130,000

Explanation:

Calculation for the opportunity cost for four years of college

The first step is to calculate for the cost of education per year

Using this formula

Cost of education per year =Tuition+Text book +Room and board

Let plug in the formula

Cost of education per year =$10,000+$2,500+$12,000

=$24,500

Second step is to calculate the return in a situation were we decided not to go to college

$20,000-$12,000=$8,000

The last step is to calculate for the opportunity cost for 4 years of college:

Using this formula

Opportunity cost =Cost of education per year+ Return * Numbers of year

Where,

Cost of education per year=$24,500

Return =$8,000

Numbers of years =4

Let plug in the Formula

Opportunity cost =($24,500+$8,000)*4

Opportunity cost =$32,500*4

Opportunity cost =$130,000

Therefore the opportunity cost for four years of college will be $130,000

Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $200,000 and semiannual interest payments.
Semiannual Period-End Unamortized Discount Carrying Value
(0) January 1, issuance $13,466 $ 186,534
(1) June 30, first payment 11,782 188,218
(2) December 31, second payment 10,098 189,902

Answers

Answer: Incomplete question.

the complete queston is

Use the above straight-line bond amortization table and prepare journal entries for the following.

(a) The issuance of bonds on December 31, 2020.

b) The first interest payment on June 30, 2021.

(c) The second interest payment on December 31, 2021.

find answer in explanation column.

Explanation:

Semiannual Period-End Unamortized Discount Carrying Value

(0) January 1,  issuance            $13,466               $ 186,534

(1) June 30, first payment          11,782                188,218

(2) December 31, second payment 10,098             189,902

1. to record issue of bonds payable

Date  Account                         Debit             Credit

Dec 31,2020 Cash(carrying value) $ 186,534  

Discount on bonds payable              $13,466    

Bonds payable                                             $200,000

2. To record first interest payment

Date        Account                         Debit             Credit

june 30, 2021 Interest expense     $7,684

discount on bonds payable                               $1, 684

Cash                                                                $6,000

Calculation =

Cash paid towards interest every semi annual period = $200,000 X 6% X1/2 =$6,000.

interest expense = cash paid + discount on bonds payable written off.

                           = $6000 + $1, 684  = $7,684

discount on bonds payable = unamortised discount on 31 dec - unamortised discount on 30th june) ($13,466 -11,782 ==$1,684)  

3.To record second interest payment on december 31,2021.

 Date        Account                         Debit             Credit

Dec. 31 ,2021 Interest expense         $7,684  

 discount on bonds payable                                $1.684

                          Cash                                          $6,000

Calculation

discount on bonds payable = unamortised discount on 30th june - unamortised discount on 31st december 2021 =11,782-10,098 = $1.684

Allowance for Doubtful Accounts has a debit balance of $441 at the end of the year (before adjustment), and Bad Debt Expense is estimated at 3% of sales. If net credit sales are $903,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts is a.$26,649 b.$27,531 c.$27,090 d.$441

Answers

Answer: $27,090

Explanation:

From the question, we are informed that the allowance for doubtful accounts has a debit balance of $441 at the end of the year (before adjustment), and bad debt expense is estimated at 3% of sales and that the net credit sales are $903,000.

The amount of the adjusting entry to record the estimate of the uncollectible accounts will be 3% of $903,000. This will be:

= 3% × $903,000

= 3/100 × $903,000

= 0.03 × $903,000

= $27,090

Adjusting entries affect at least one balance sheet account and at least one income statement account. For the entrie below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the incom statement account and which is the balance sheet account. Assume the company records prepayments of expenses asset accounts, and cash receipts of unearned revenues in liability accounts.
a. Entry to record consulting services performed but not yet billed (nor recorded).
b. Entry to record Interest revenue earned but not yet collected (nor recorded).
c. Entry to record service revenues performed but not yet billed (nor recorded).
d. To record janitorial expense incurred but not yet paid.
e. To record rent expense incurred but not yet paid
Accounts Account Title Financial Statement
a. Account to be debited Accounts receivable Balance sheet
Account to be credited Consulting services revenue Income statement
b. Account to be debited Interest receivable Balance sheet
Account to be credited interest revenue earned Income statement
c. Account to be debited Accounts receivable Balance sheet
Account to be credited Services revenue earned Income statement
d. Account to be debited Janitorial expense Balance sheet
Account to be credited Accrued expenses payable Income statement
e. Account to be debited Rent expense Balance sheet
Account to be credited Accrued expenses payable Income statement

Answers

Answer and Explanation:

According to the given situation, the income statement and balance sheet as per parts is shown below:-

                        Accounts               Account Title       Financial statements  

For Part A

Debit           Accounts receivable       Liability account      Balance sheet

Credit            Consulting service       Income statement

                        revenue

For Part B

Debit           Interest receivable          Liability account    Balance sheet

Credit            Interest revenue           Income statement

                         

For Part C

Debit           Accounts receivable    Assets account        Balance sheet

Credit            Service Revenue      Income statement

For Part D

Debit           Janitorial expense    Income statement

Credit           Janitorial expense   Liability account        Balance sheet

                         Payable

For Part E

Debit           Rent expenses          Income statement      

Credit          Rent expenses           Liability account        Balance sheet

                     payable

Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 1,000 $ 26 $ 28 $ 32 B 500 31 27 34 C 900 19 18 24 D 900 23 20 22 E 800 30 28 29 The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 35 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.

Answers

Answer:

A)

A 1,000 x $26.00 =  $ 26,000

B   500 x  $30.60 =  $  15,300

C   900 x  $ 19.00 =  $   17,100

D   900 x $ 19.80 =   $  17,820

E   800 x $26.10 =   $ 20,880  

Total                           $ 97,100

B)

102,240

C)

Write-down at NRV 1,060 debit

        Inventory                1,060 credit

Explanation:

We have to  calculate the net realizable value(NRV) for each item and compare with the historic cost:

      Units//    Cost    ///    NRV

A 1,000 $ 26       $ 32(1 - 0.1) = 28.8

B   500 $  31       $  34(1-0.1)   = 30.60

C   900 $  19       $  24(1-0.1)  = 21.60

D   900 $ 23       $  22(1-0.1)  = 19.80

E 800    $ 30      $  29(1-0.1)  =  26.10

We will always pick the lowest to valuate the goods:

A 1,000 x $26.00 =  $ 26,000

B   500 x  $30.60 =  $  15,300

C   900 x  $ 19.00 =  $   17,100

D   900 x $ 19.80 =   $  17,820

E   800 x $26.10 =   $ 20,880  

Total                           $ 97,100  

Total Cost:

1,000 x 26

+ 500 x 31

+ 900 x 19

+ 900 x 23

+ 800 x 30

103,300

Total NRV

1,000 x 28.80

+ 500 x 30.60

+ 900 x 21.60

+ 900 x 19.80

+ 800 x 26.10

102,240

Comparing at the entire inventory level we get the following adjustment

103,300 - 102,240 = 1,060

Furniture costing $61,700 is sold at its book value in 2017. Acquisitions of furniture total $50,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture

Answers

Answer:

cash inflow = $32,100

Explanation:

there is some information missing:

accumulated depreciation 2016 (furniture) = $9,000depreciation expense 2017 (furniture) = $37,600accumulated depreciation 2017 (furniture) = $17,000

we must first determine the book value of the furniture which was sold:

total depreciation related to the sold furniture = $9,000 + $37,600 - $17,000 = $29,600

book value = $61,700 - $29,600 = $32,100

since the furniture was sold at book value, then the cash inflow = $32,100

Cash inflow refers to money being received or earned by the company, while cash outflows refer to money being paid by the company.

The company estimates future uncollectible accounts. The company determines $14,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) Record bad debts at the end of January.

Answers

Answer:

Bad debt expense = $4,690

Explanation:

Entry                                                 DEBIT       CREDIT

Bad debt Expense                         $4,690

Allowance for doubtful debt                           $4,690

In Order to record bad debt expense, we need to go through some minor workings.

Workings

Receivables on January 31  past due =  $14,000 x 30% = $4,200

Receivable not past due = ($14,000 x 70%) x5% = $490

Bad debt expense = Receivables on January 31  past due + Receivable not past due

Bad debt expense = $4,200 + $490

Bad debt expense = $4,690

Suppose that purely competitive firms producing cashews discover that P exceeds MC.
a. Is their combined output of cashews too little, too much, or just right to achieve allocative efficiency?
b. In the long run, what will happen to the supply of cashews and the price of cashews?
1. Supply will increase and the price of cashews will increase.
2. Supply will increase and the price of cashews will decrease.
3. Supply will decrease and the price of cashews will decrease.
4. Supply will decrease and the price of cashews will increase.

Answers

Answer:

a. Too Little

b. 2. Supply will increase and the price of cashews will decrease.

Explanation:

a. Output is always maximised when Marginal Revenue equals Marginal Cost because at this point it is argued that all resources are being utilised. In a purely competitive market, the Price is equal to the Marginal Revenue. If the price is larger than the Marginal Cost that means that Marginal Revenue is larger than Marginal Cost. The firms are therefore not utilising enough resources to produce as much as they can which should change.

b. In the long run in a purely competitive market, more firms will enter the market as they will see it as a chance to make economic profits. As this happens the Supply will increase due to the larger number of firms and the price will decrease as a result as well.

Students arrive at the Administrative Services Office at an average of one every 15 minutes, and their requests take on average 10 minutes to be processed. The service counter is staffed by only one clerk, Judy Gumshoes, who works eight hours per day. Assume Poisson arrivals and exponential service times.

Required:
a. What percentage of time is Judy idle?
b. How much time, on average, does a student spend waiting in line?
c. How long is the (waiting) line on average?
d. What is the probability that an arriving student (just before entering the Administrative Services Office) will find at least one other student waiting in line?

Answers

B how much time on a stage does a a student spend waiting in line

Managers are important members of the organization. Within an organization, there are managers at four levels: top, middle, first-line, and team leaders.

a. True
b. False

Answers

Answer:

The correct answer is the option B: False.

Explanation:

To begin with, the managers are one of the most important parts of the organization due to the fact that they have the task to plan, organize, direct and control the operations of the company. There are at least three levels in which the managers can go and have their work done, like the management area(high), the department areas(middle) and the operations area(low): However, that will depend on the organization and its size due to that an organization can only have managers at one level.

ent "Flounder" Dorfman is a full-time student at Faber College. He is a senior and a member of Delta Tau Chai fraternity. The Deltas awarded Kent a $35,000 scholarship called "The Dean Wormer Double Secret Probation Memorial Scholarship". Kent pays the following amounts, out of his scholarship, to attend Faber College: Tuition - $26,000; Required lab fees - $300; Required books and supplies - $1,000; Room and board - $7,500. Part 1 of 6: Does the $26,000 of the scholarship that was paid for tuition have to be included in Flounder's taxable income for federal income tax purposes?

Answers

Answer:

Kent "Flounder" Dorfman

Scholarship from Delta Tau Chair Fraternity

The $26,000 will not be included in Flounder's taxable income for federal income tax purposes.  It is a qualified scholarship expense.  It is only the portion of $7,500 used for Room and board that is not a qualified scholarship expense.

Though it is required that the $35,000 be disclosed in form 1040.  Qualified expenses like tuition, required lab fee, required books and supplies are tax-exempt, while Room and board and other non-required expenses are not qualified and therefore taxable.

Explanation:

S117(b)(2) of the IRS Code states the expenses that are qualified and tax-exempt if they are tuition-related.

When a qualified student, usually above 18 years and enrolled in post-secondary educational institution, receives a scholarship, the amount she uses to pay for tuition and other required expenses, which are generally payable by other students, are regarded as qualified expenses.  Since they are qualified, they are also tax-exempt, meaning that taxes will not be paid on them, instead they will be deducted for tax purposes from the student's income.  In the case of Kent, the tuition fee is not included in her taxable income for federal income tax purposes.

The common stock of Sweet Treats is selling for $50.15 per share. The company is expected to have an annual dividend increase of 3.6 percent indefinitely and pay a dividend of $3.80 in one year. What is the total return on this stock?

Answers

Answer:

11.2%

Explanation:

Here, we want to calculate the total return on the stock.

From the question, Price = $50.15

Mathematically;

P = D1/Ke-g

D1 = $3.80

g = 3.60%

So let’s calculate Ke-g

50.15 = 3.8/ke-g

Ke-g = 3.8/50.15

Ke-g = 7.6%

but g = 3.6%

Total return Ke = 3.6% + g = 3.6% + 7.6% = 11.2%

A company had the following cash flows for the year: (a) Purchased inventory, $60,000 (b) Sold goods to customers, $90,000 (c) Received loan from a local bank, $150,000 (d) Purchased land, $180,000 (e) Purchased treasury stock, $40,000 (f) Paid dividends, $10,000 (g) Sold delivery truck, $30,000 What amount would be reported for net investing cash flows on the Statement of Cash Flows

Answers

Answer:

($150000)

Explanation:

The computation of the net investing cash flows is shown below;

Purchase of land                                           ($180,000)

Sale of delivery truck                                     $30,000

Net Cash used in Investing activities            ($150000)

The purchase of land is an outflow of cash and the sale of delivery truck is a inflow of cash so it would be shown in a negative and positive amount

Thus all other values would be ignored

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, an auction house sold a sculpture at auction for a price of $10,371,500. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,497,500.
What was his annual rate of return on this sculpture? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Annual rate of return %

Answers

Answer:

-4.25%

Explanation:

purchase price in 1999 = $12,497,500

purchase price in 2003 = $10,371,500

annual rate of return = {[($10,371,500 - $12,497,500) / $12,497,500] / (2003 - 1999)} x 100 = (-0.170114 / 4) x 100 = -4.25%

the annual rate of return refers to how much money you win or loss with an investment during a year. In this case, the investor lost $2,126,000 in 4 years, which resulted in a total loss of 17.01% for the whole period.

On July 1, 2021, a company loans one of its employees $20,000 and accepts a ten-month, 9% note receivable. Calculate the amount of interest revenue the company will recognize in 2021 and 2022

Answers

Answer:

Interest in 2021=900

Interest in 2022=600

Explanation:

Calculatation of the amount of interest revenue the company will recognize in 2021 2022

Month in 2021 - July To December

Interest in 2021 = 20,000*9%*6/12

Interest in 2021=900

Month in 2022 - January To April

Interest in 2022 = 20,000*9%*4/12

Interest in 2022=600

Therefore the amount of interest revenue the company will recognize in 2021 will be 900 while 2022 will be 600

Answer:

2021:900

2022:600

Explanation:

Month in 2021 - July To December  

Interest in 2021 = 20,000x0.0%x(6/12)  

Interest in 2021=900  

Month in 2022 - January To April  

Interest in 2022 = 20,000x0.09x(4/12)  

Interest in 2022=600  

Therefore the answer for 2021 will be 900 and for 2022 will be 600

A July sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. The management forecasts 2% growth in sales each month. Total July sales are anticipated to be:

Answers

Answer:

Budgeted sales July= $63,000

Explanation:

Giving the following information:

A July sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit.

To calculate the budgeted sales, we simply need to multiply the number of units sold for the selling price:

Budgeted sales July= 6,000*10.5= $63,000

Which of the following items are normally classified as current liabilities for a company that has a one-year operating cycle? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

Answers

Answer:

Sales tax payable     FICA-social security taxes payable due in 40 days  Portion of long term note due in 1 month

Explanation:

Current Liabilities refer to obligations owed in a 12 month period. Anything longer is classified as Long Term.

From the options listed the current liabilities will therefore be;

Sales Tax Payable which are the taxes that the government charges on goods and services and it is the responsibility of business to collect these and remit them to the Government on time. This is a current liability as these are remitted quite frequently.

The FICA social security taxes payable due in 40 days is also a current liability due its time period being less than a year.

A portion of a long term loan due in a month will be considered current also due to its time period.

Current liabilities for a company include Sales tax payable, FICA-social security taxes payable due in 40 days and portion of long term note due in 1 month.

What is the term Current Liability about?

Current Liabilities refer to obligations owed in a 12 month period. Anything longer is classified as Long Term.

Sales Tax Payable which are the taxes that the government charges on goods and services and it is the responsibility of business to collect these and remit them to the Government on time

The FICA social security taxes payable due in 40 days is also a current liability due its time period being less than a year.

A portion of a long term loan due in a month will be considered current also due to its time period.

Learn more about Current Liability, refer to the link:

https://brainly.com/question/13388204

Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason's first year of operations and they have hired you as their CPA to prepare the income statement and balance sheet for their company. As such, January 1st , 2018 was the first day that Mason was in business. For the month of January, record all the necessary journal entries for transactions that occurred during the month. In addition, please prepare all necessary adjusting journal entries as of the end of the month.
From the information below, please fill out the "journal entries tab" for all the necessary journal entries. Furthermore, please complete the "T-Accounts" tab for the individual accounts so that the trial balance tab can be updated (automatically). I prepared the first journal entry for you in the journal entries tab and T-Accounts tab. Ensure you label the entries similar to how I have shown in Entry #1.
Once all entries are recored and the T-Accounts tab is updated, please prepare the financial statements (income statement and balance sheet) for the month of January.
Journal Entry #1
Mason Automotive sells 10,000,000 shares at $5 par for $30 on January 1st, 2018.
Journal Entry #2
Ed Mason, the CEO, hires 3,000 employees, whom will receive a combined salary of $12 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 5th. Employee's withholdings are as follows: 10% for federal income taxes 5% for state income taxes and 7% for FICA. Record the necessary entry as of January 1st, 2018.
Journal Entry #3
Mason Automotive issues a bond payable on January 1st, 2018 with a face value of $200 Million at 102. The bond will have a useful life of 5 years and interest is paid out monthly based on a rate of 5% APR. Record the necessary journal entry as of January 1st 2018.
(Note: Assume straight line amortization for the bond discount/premium).
Journal Entry #4
Mason Automotive purchased $80 Million dollars worth of inventory on account on January 2nd, 2018. Mason notes that it will use a perpetual inventory system to track inventory.
Journal Entry #5
Mason Automotive purchases fixed assets of $120 Million that will have a useful life of 10 years and no salvage value on January 2, 2018. $20 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method.
Journal Entry #6
On January 2nd, Mason Automotive shipped an order to Corby Panther Company. The shipping terms were FOB shipping point and the value of the order was $50 Million and the inventory cost was $20 Million. Assume that this sale was made on account.
Journal Entry #7
On January 3rd, Mason Automotive receives $75 Million advance payment from a customer, Michael Scott Paper Company, to manufacture 7,500 cars.
Journal Entry #8
Mason Automotive buys a patent from Apple for $24 Million on January 3rd, 2018. The patent has a legal life of 20 years, but a useful life of 10 years. Record the necessary entry as of January 3rd, 2018. Assume the patent was purchased using cash.
Journal Entry #9
Mason Automotive purchased $2 Million dollars worth of supplies January 4th, 2018. $1.5 Million was paid with cash with the remaining balance on account.
Journal Entry #10
Mason Automotive pre-pays for Rent Expense for the next year of $12 Million and Insurance Expense of $2.4 Million on January 4th, 2018
Journal Entry #11
On January 20th, Mason Automotive decides to purchase 2,000,000 shares of Treasury stock at $25 per share.
Month End Adjusting Entries
There are 10 applicable adjusting entries that need to be made as of the end of the month based on the information provided above. When recording these adjusting entries consider the following facts:
1) Interest expense will be recorded as a operating expense items on the income statement.
2) Record the necessary adjusting entries related to pre-paid expense as separate journal entries.
3) When reviewing the supply room as of the end of the month, Mason Automation noted that it had $1.5 Million worth of supplies still on hand.
4) As of the end of the month, 4,000 cars were completed for Michael Scott Paper Company and the performance obligation had been met on those 4,000 cars. As such, revenue was determined to be earned on those 4,000 vehicles and it was noted that each vehicle costed $8,000 to manufacture.
5) Mason Automation uses the balance sheet approach in estimating the allowance for doubtful accounts as of the end of the period. Based on industry average, Mason noted that it will use 5% of receivables as an estimation.
6) When preparing the balance sheet, close out net income to retained earnings.

Answers

Answer:

1) Mason Automotive sells 10,000,000 shares at $5 par for $30 on January 1st, 2018.  

Dr Cash 300,000,000

   Cr Common stock 50,000,000

   Cr Additional paid in capital 250,000,000

2) Ed Mason, the CEO, hires 3,000 employees, whom will receive a combined salary of $12 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 5th. Employee's withholdings are as follows: 10% for federal income taxes 5% for state income taxes and 7% for FICA. Record the necessary entry as of January 1st, 2019.          

No journal entry required

Adjusting entry:

January 31, 2018, wages expense

Dr Wages expense 12,000,000

Dr FICA taxes expense 840,000

   Cr Federal income taxes withheld payable 1,200,000

   Cr State income taxes withheld payable 600,000

   Cr FICA taxes withheld payable 840,000

   Cr FICA taxes payable 840,000

   Cr Wages payable 9,360,000

3) Mason Automotive issues a bond payable on January 1st, 2018 with a face value of $200 Million at 102. The bond will have a useful life of 5 years with an interest payment of 5% (Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of January 1st,  2018.

Dr Cash 204,000,000

   Cr Premium on bonds payable 4,000,000

   Cr Bonds payable 200,000,000

(Note: When considering the amortization of the discount or premium, assume the straight line method is used).  

Adjusting entry        

January 31, 2018, interest expense

Dr interest expense 766,666.66

Dr Premium on bonds payable 66,666.67

   Cr Interest payable 833,333.33

4) Mason Automotive purchased $80 Million dollars worth of inventory on January 2nd, 2018. $80 Million was paid with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory.  

Dr Inventory 80,000,000

       Cr Accounts payable 80,000,000      

5) Mason Automotive purchases fixed assets of $120 Million that will have a useful life of 10 years and no salvage value on January 2, 2018. $20 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method.  

Dr Fixed assets 120,000,000

   Cr Cash 20,000,000

   Cr Accounts payable 100,000,000

Adjusting entry:

January 31, 2019, depreciation expense  

Dr Depreciation expense 1,000,000

   Cr Accumulated depreciation - fixed assets 1,000,000    

6) On January 2nd, Mason Automotive shipped an order to Corby Panther Company. The shipping terms were FOB shipping point and the value of the order was $50 Million and the inventory cost was $20 Million. Assume that this sale was made on account.          

Dr Accounts receivable 50,000,000

   Cr Sales revenue 50,000,000

Dr Cost of goods sold 20,000,000

   Cr Inventory 20,000,000

Adjusting entry:

January 31, 2018, allowance for doubtful accounts (5%)

Dr Bad debt expense 2,500,000

   Cr Allowance for doubtful accounts 2,500,000

7) On January 3, Mason Automotive receives $75 Million advance payment from a customer, Michael Scott Paper Company, to manufacture 7,500 cars.        

Dr Cash 75,000,000

   Cr Deferred revenue 75,000,000

Adjusting entry:

January 31, 2019, 4,000 cars were finished and delivered

Dr Deferred revenue 40,000,000

   Cr Sales revenue 40,000,000

Dr Cost of goods sold 32,000,000

    Cr Inventory: finished cars 32,000,000

8) Mason Automotive buys a patent from Apple for $24 Million on January 3rd, 2018. The patent has a legal life of 20 years, but a the useful life of 10. Record the necessary entry as of January 3rd, 2018. Assume the patent was purchased using cash.          

Dr Patent 24,000,000

   Cr Cash 24,000,000

Adjusting entry:

January 31, 2018, patent amortization expense

Dr Patent amortization expense 200,000

   Cr Patent 200,000

9) Mason Automotive purchased $2 Million dollars worth of supplies on account on January 4, 2018.      

Dr Supplies 2,000,000

    Cr Cash 1,500,000

    Cr Accounts payable 500,000

Adjusting entry

January 31, 2018, supplies expense

Dr Supplies expense 500,000

   Cr Supplies 500,000    

10) Mason Automotive pre-pays for Rent Expense for the next year of $12 Million and Insurance Expense of $2.4 Million on January 4, 2018.  

Dr Prepaid rent 12,000,000

Dr Prepaid insurance 2,400,000

   Cr Cash 14,400,000

Adjusting entries:

January 31, 2019, rent expense

Dr Rent expense 1,000,000

   Cr Prepaid rent 1,000,000

January 31, 2019, insurance expense

Dr Insurance expense 200,000

   Cr Prepaid insurance 200,000        

11) On January 20th, Mason Automotive decides to purchase 2,000,000 shares of Treasury stock at $25 per share.

Dr Treasury stock 50,000,000

   Cr Cash 50,000,000

Closing journal entries:

Dr Sales revenue 90,000,000

    Cr Income summary 90,000,000

Dr Income summary 71,006,66.66

    Cr Wages expense 12,000,000

    Cr FICA taxes expense 840,000

    Cr interest expense 766,666.66

    Cr Depreciation expense 1,000,000

    Cr Cost of goods sold 52,000,000

    Cr Bad debt expense 2,500,000

    Cr Patent amortization expense 200,000

    Cr Supplies expense 500,000

    Cr Rent expense 1,000,000

    Cr Insurance expense 200,000

Dr Income summary 18,993,333.34

    Cr Retained earnings 18,993,333.34

Answer:

i think this is correct

Explanation:

Classify the following costs incurred by a manufacturer of golf clubs as product costs or period costs. Also classify the product costs as direct materials or conversion costs.
a. Depreciation on computer in president's office
b. Salaries of legal staff
c. Graphite shafts
d. Plant security department
e. Electricity for the corporate office
f. Rubber grips
g. Golf club heads
h. Wages paid assembly line maintenance workers
i. Salary of corporate controller
j. Subsidy of plant cafeteria
k. Wages paid assembly line production workers
l. National sales meeting in Orlando
m. Overtime premium paid assembly line workers
n. Advertising on national television
o. Depreciation on assembly line

Answers

Answer:

a. Period Cost

b. Period Cost

c. Product Costs : conversion costs

d. Product Costs : conversion costs

e. Period Cost

f.  Product Costs :  direct materials

g. Product Costs :  direct materials

h. Product Costs : conversion costs

i.  Period Cost

j.  Product Costs : conversion costs

k. Product Costs : conversion costs

l.  Period Cost

m.Product Costs : conversion costs

n. Period Cost

o. Product Costs : conversion costs

Explanation:

Product Cost

Product Costs are included in Inventory/Product Valuation. All Manufacturing Costs are Product costs.

Direct Materials

The Costs of Materials that can be directly traced to the Cost Object (golf clubs)

Conversion Cost

Cost of Direct labor and Overheads cost incurred during the production of the cost object.

Period Cost

Period Costs are not included in Inventory or Product valuation. All non-manufacturing costs are period costs. These are expensed inthe period they are incurred.

intext:"The description of the relation between a company’s assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the"

Answers

Answer:

Accounting equation

Explanation:

The accounting equation is the basis of the double-entry accounting system.

The accounting equation ensures that each entry made on the debit side of the balance sheet should have a corresponding entry  on the credit side. This ensures that the balance sheet remains balanced

Zebra, Inc., a calendar year S corporation, incurred the following items this year. Sammy is a 40% Zebra shareholder throughout the year.
Operating income (sales) $100,000
Cost of goods sold (40,000)
Depreciation expense (MACRS) (10,000)
Administrative expenses (5,000)
§1231 gain 21,000
Depreciation recapture income $25,000
Short-term capital loss from stock sale (6,000)
Long-term capital loss from stock sale (4,000)
Long-term capital gain from stock sale 15,000
Charitable contributions (4,500)
a. Calculate Sammy’s share of Zebra’s nonseparately computed income or loss.
b. Calculate Sammy’s share of any Zebra long-term capital gain.

Answers

Answer:

a. $70,000

b. $6,000

Explanation:

Non separately income = Operating income +Depreciation recapture income -COGS -ADM expense -depreciation

= $100,000 + $25,000 - $40,000 - $5,000 - $10,000  

= $70,000

a. Sammy share of Zebra’s non-separately computed income or loss

= $70,000 * 0.40

= $28,000

b. Sammy share in Long term capital gain

= $15,000 * 0.40

= $6,000

A 5-year corporate bond yields 7.0%. A 5-year municipal bond (tax exempt bond) of equal risk yields 5.0%. Assume that the state tax rate is zero. At what federal tax rate are you indifferent between the two bonds?

Answers

Answer:

The tax rate is approximately(rounded to a whole) 29%

Explanation:

The federal tax that would make an investor indifferent between the 5-year corporate bond and the 5-year municipal bond can be derived by equating the return on the former to the taxable return of the latter as below:

5%=7%*(1-t)

where the t is the unknown tax rate

Note that the return on 5-year corporate bond is taxable while the return on the municipal bond is tax-free

5%=7%*(1-t)

5%/7%=1-t

0.7143  =1-t

t=1-0.7143  

t=29%

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