Answer:
misguided because the enhanced output from specialization based upon comparative advantage is restricted.
Explanation:
Both countries would have benefited from trading in what the goods they have comparative advantage. Canada would have benefited from the U.S television and magazine programs, while the U.S would have gained by allowing food imports from canada.Goin by the by the theory of comparative advantage, each country benefits by exchanging those goods they have comparative advantage.
Amherst Metal Works produces two types of metal lamps. Amherst manufactures 20,000 basic lamps and 5,000 designer lamps. Its simple costing system uses a single Indirect-cost pool and allocates costs to the two lamps on the basis of cirect manufacturing labor-hours. It provldes the following budgeted cost Information: Calculate the total budgeted costs of the basic and designer lamps using Amherst's simple costing system. Begin by Calculating the budgeted indirect cost rate for the single indirect cost pool. First select the formula, then enter the applicable amounts and calculate the rate Abbreviations used: MOH = Manufacturing Overhead Budgeted indirect manufacturing costs Budgeted manufacturing labor hours- Budgeted MOH rate per manutacturing labor-hour 234,000 13,000 S 18 Now calculate the total budgeted costs and per unit costs of the basic and designer lamps using Amherst's simple costing system. (Round all per unit amounts to two decimal places.] Basic lamps Total Per unit Direct materials Direct manufacturing labor Total direct costs Indirect costs allocated Total costs 180,000 $ 200,000 380,000 9.00 10.00 19.00
Answer:
Total Budgeted Costs = $ 450,000
Total Costs 515,000
Explanation:
Manufacturing Overhead Budgeted 234,000
Budgeted manufacturing labor hours 13,000
Budgeted MOH rate per manufacturing labor-hour = 234,000/13,000= $ 18
Basic lamps 20,000 units
Total Budgeted Costs = 18*20,000= 360,000
Unit Costs Total Costs
Direct materials 9.00 180,000
Direct manufacturing labor 10.00 200,000
Total Per unit 19.00 380,000
Total direct costs 180,000
Indirect costs allocated 200,000
Total costs $ 380,000
Designer lamps 5,000 units
Total Budgeted Costs = 18*5,000= 90,000
Unit Costs Total Costs
Direct materials 15.00 75,000
Direct manufacturing labor 12.00 60,000
Total Per unit 27.00 135,000
Total direct costs 75,000
Indirect costs allocated 60,000
Total costs $ 135,000
Basic Designer Total
Total Direct Materials 180,000 75000 255,000
Direct Labor 200,000 60,000 260,000
Total Budgeted Costs = 360,000+ 90,000= $ 450,000
Total Costs =255,000+ 260,000= $ 515,000
Budgeting is the act of estimating a company's future income and expenditures that goes out from paying expense over a set period of time.
Total Budgeted Costs = $ 450,000
Total Costs 515,000
SOLUTION:-
Manufacturing Overhead Budgeted 234,000
Budgeted manufacturing labor hours 13,000
Budgeted MOH rate per manufacturing labor-hour = 234,000/13,000= $ 18
Basic lamps 20,000 units
Total Budgeted Costs = 18*20,000= 360,000
Unit Costs Total Costs
Direct materials 9.00 180,000
Direct manufacturing labor 10.00 200,000
Total Per unit 19.00 380,000
Total direct costs 180,000
Indirect costs allocated 200,000
Total costs $380,000
Designer lamps 5,000 units
Total Budgeted Costs (18*5,000) 90,000
Unit Costs Total Costs
Direct materials 15.00 75,000
Direct manufacturing labor 12.00 60,000
Total Per unit 27.00 135,000
Total direct costs 75,000
Indirect costs allocated 60,000
Total costs $135,000
Basic Designer Total
Total Direct Materials 180,000 75000 255,000
Direct Labor 200,000 60,000 260,000
Total Budgeted Costs = 360,000+ 90,000= $ 450,000Total Costs =255,000+ 260,000= $ 515,000
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If your uncle borrows $69,000 from the bank at 11 percent interest over the nine-year life of the loan. Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
a. What equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
b. How much of his first payment will be applied to interest? To principal? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
c. How much of his second payment will be applied to each? (Do not round intermediate calculations Round your final answers to 2 decimal places.)
Answer:
a. The annual payment to be made is $12,461.51
b. On first installment interest portion is $7,590 and principal portion is $4,871.51
c. The Interest portion in the second installemnt is $7,054.13 and Principal portion is $5,407.38.
Explanation:
a. According to the given data we have the following:
Loan Amount (Present Value) = $69,000.
Nper = 9 years
Rate = 11%.
Future value = 0
You would have to Compute annual payment using excel function as follows:
Pmt = Pmt(11%,9,-69000,0)
= $12,461.51.
Therefore, annual payment to be made is $12,461.51.
b. To calculate the amount of his first payment to be applied to interest and To principal we would have to make the following calculation:
Interest = $69,000*11% = 7,590.
Installement amount = 12,461.51.
Principal portion = 12,461.51-7590 = $4,871.51.
Therefore, On first installment interest portion is $7,590 and principal portion is $4,871.51.
c. To calculate How much of his second payment will be applied to each we would have to make the following calculations:
Principal Balance at the beginning of the second is $69,000 -$4871.51 = $64128.49.
Interest portion in the second installemnt = $64,128.49 * 11% = $7,054.13.
Principal portion = $12461.51-$7054.13 = $5,407.38.
g Romans sells the Regular blend for $3.60 per pound and the DeCaf blend for $4.40 per pound. Romans would like to place an order for the Brazilian and Colombian coffee beans that will enable the production of 1000 pounds of Romans Regular coffee and 500 pounds of Romans DeCaf coffee. The production cost is $0.80 per pound for the Regular blend. Because of the extra steps required to produce DeCaf, the production cost for the DeCaf blend is $1.05 per pound. Packaging costs for both products are $0.25 per pound. Formulate a linear programming model that can be used to determine the pounds of Brazilian Natural and Colombian Mild that will maximize the total contribution to profit.
Romans Food Market, located in Saratoga, New York, carries a variety of specialty foods from around the world. Two of the stores leading products use the Romans Food Market name: Romans Regular Coffee and Romans DeCaf Coffee. These coffees are blends of Brazilian Natural and Columbian mild coffee beans, which are purchased from a distributor from New York City. Because Romans purchases large quantities the coffee beans may be purchased om an as need basis for the price of 10% higher than the market price the distributor pays for the beans. The current market price is $0.47 per pound for Brazilian Natural and $0.62 per pound for Columbian Mild The composition of each coffee blend are as follows:
Bean Regular DeCaf Blend
Brazilian Natural 75% 40%
Columbian Mild 25% 60%
Romans sells the Regular blend for $3.60 per pound and the DeCaf blend for $4.40 per pound. Romans would like to place an order for the Brazilian and Colombian coffee beans that will enable the production of 1000 pounds of Romans Regular coffee and 500 pounds of Romans DeCaf coffee. The production cost is $0.80 per pound for the Regular blend. Because of the extra steps required to produce DeCaf, the production cost for the DeCaf blend is $1.05 per pound. Packaging costs for both products are $0.25 per pound. Formulate a linear programming model that can be used to determine the pounds of Brazilian Natural and Colombian Mild that will maximize the total contribution to profit.
Answer:
[tex]\mathbf{Max \ Z = 2.033 BR + 2.583 BD + 1.868 CR + 2.418 CD}[/tex]
Explanation:
From the given information:
The total revenue can be illustrated as :
Total revenue = 3.6 BR + 4.4 BD + 3.6 CR + 4.4 CD
On the other hand; the total cost of the beans is:
= 1.1 (0.47 BR + 0.47 BD + 0.62 CR + 0.62 CD)
= 0.517 BR + 0.517 BD + 0.682 CR + 0.682 CD
Also; The total production cost is :
= 0.8 BR + 1.05 BD + 0.8 CR + 1.05 CD
The total profit = Total revenue - Total Cost of Beans - Total Production Cost
The total profit = [tex]\left[\begin{array}{}3.6 BR + 4.4 BD + 3.6 CR + 4.4 CD\\- (0.517 BR + 0.517 BD + 0.682 CR + 0.682 CD)\\-(0.8 BR + 1.05 BD + 0.8 CR + 1.05 CD)\end{array}\right][/tex]
The total profit = 2.033 BR + 2.583 BD + 1.868 CR + 2.418 CD
Therefore the linear programming model represents the Objective function of the total profit as:
[tex]\mathbf{Max \ Z = 2.033 BR + 2.583 BD + 1.868 CR + 2.418 CD}[/tex]
Xu owns two investments, A and B, that have a combined total value of $40,000. Investment A is expected to pay $28,000 in 3 years from today and has an expected return of 7.1 percent per year. Investment B is expected to pay $36,000 in T years from today and has an expected return of 5.5 percent per year. What is T, the number of years from today that investment B is expected to pay $36,000?
Answer:
The number of years is [tex]T =13 \ years[/tex]
Explanation:
From the question we are told that
The total value of the investment A and B is [tex]k =[/tex]$40, 000
The future value of A is [tex]F_A =[/tex]$28,000
The time period is t = 3
The expected return of A is [tex]e_A =[/tex] 7.1 % = 0.071
The future value of B is [tex]F_B =[/tex]$36,000
The time period for B is T
The expected return of B is [tex]e_B =[/tex]5.5 % = 0.055
The present value of investment A is mathematically represented as
[tex]A = \frac{F_A }{(1 + e_A) ^t}[/tex]
substituting values
[tex]A = \frac{ 28000 }{(1 + 0.071) ^3}[/tex]
[tex]A =[/tex]$ 22792.38
The present value of B is mathematically evaluated as
[tex]B = k - A[/tex]
substituting values
B = 40, 000 - 22792.38
B = $17,208
The future value of B is
[tex]F_B = B * (1 + e_B)^T[/tex]
substituting values
[tex]36,000 =17,208 * (1 + 0.055)^T[/tex]
[tex]2.0921 = (1.055)^T[/tex]
take log of both sides
[tex]log(2.0921) =log (1.055)^T[/tex]
[tex]0.32057 = T log (1.055)[/tex]
=> [tex]T = \frac{0.3206}{0.0232}[/tex]
[tex]T =13 \ years[/tex]
Kansas Enterprises purchased equipment for $72,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $7,950 at the end of five years. Using the straight-line method, the book value at December 31, 2021, would be:
Answer:
Depreciation expense $12,910
Book value $46,680
Explanation:
Kansas Enterprises
Formula for Depreciation expenses
Annual depreciation expense=(Cost-Residual value)/Useful Life
Where,
Cost = 72,500
Residual value =7,950
Useful life = 5 years
Let plug in the formula
=(72,500-7950)/5
=64,550/5
=$12,910/year
Therefore depreciation expense for 2021
=$12,910
Calulation for Book value
Book value = $72,500 – ($12,910× 2)
$72,500 -$25,820
=$46,680
Therefore the book value would be $46,680
Juggernaut Satellite Corporation earned $19.6 million for the fiscal year ending yesterday. The firm also paid out 30 percent of its earnings as dividends yesterday. The firm will continue to pay out 30 percent of its earnings as annual, end-of-year dividends. The remaining 70 percent of earnings is retained by the company for use in projects. The company has 2.8 million shares of common stock outstanding. The current stock price is $84. The historical return on equity (ROE) of 14 percent is expected to continue in the future.
What is the required rate of return on the stock?
Answer:
The required rate of return on the stock is 12.55%
Explanation:
According to the given data we have the following:
The Company is distributing 30% of its earnings as dividends
Therefore, company is retaining = 100-30 = 70% of its earnings
Growth = Retention ratio * ROE = 0.7*0.14 = 9.8%
Earning = 19.6 million
hence, Paid as dividends = 19.6*0.3 = $5.88 million
The Number of shares outstanding = 2.8 million
hence, Dividend per share = Total dividends / number of shares outstanding = 5.88/2.8 = $2.1
Current stock price = $84
Therefore, to calculate the required rate of return on the stock we would have to use the following formula:
Price of stock = Current dividend*(1+growth)/(r-growth), where r is required rate of return
84 = 2.1*(1.098)/(r-0.098)
40 = 1.098/(r-0.098)
r - 0.098 = 0.02745
r = 0.02745+0.098 = 0.12545
The required rate of return on the stock is 12.55%
A list of financial statement items for Blue Spruce Corp. includes the following: accounts receivable $28,700; prepaid insurance $5,330; cash $21,320; supplies $7,790; and debt investments (short-term) $16,810. Prepare the current assets section of the balance sheet listing the items in the proper sequence. (List current assets in order of liquidity.
Answer:
BLUE SPRUCE CORPS
PARTIAL BALANCE SHEET
Current Assets $
Cash 21,320
Debt Investment (Short Term) 16,810
Account Receivables 28,700
Supplies 7,790
Prepaid Insurance 5,530
Total Current Assets 79,950
Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnership by making capital contributions of $75,600, $294,000, and $470,400, respectively. They predict annual partnership net income of $498,000 and are considering the following alternative plans of sharing income and loss: (a) equally; (b) in the ratio of their initial capital investments; or (c) salary allowances of $83,600 to Mo, $62,700 to Lu, and $94,500 to Barb; interest allowances of 10% on their initial capital investments; and the balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb. Prepare the December 31 journal entry to close Income Summary assuming they agree to use plan (c) and that net income is $498,000. Mo, Lu, and Barb withdraw $39,300, $53,300, and $69,300, respectively, at year-end.
Answer:
salary allowances of $83,600 to Mo, $62,700 to Lu, and $94,500 to Barb; interest allowances of 10% on their initial capital investments; and the balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb.
net income $498,000, total distributions:
Mo = $83,600 + (20% x $257,200) = $135,040Lu = $62,700 + (40% x $257,200) = $165,580Barb = $94,500 + (40% x $257,200) = $197,380First we need to close Income Summary account to each partner's capital account:
December 31, 202x
Dr income summary 498,000
Cr Mo Meek, capital 135,040
Cr Lu Ling, capital 165,580
Cr Barb Beck, capital 197,380
then we close the drawings accounts to the capital accounts of each partner:
December 31, 202x
Dr Mo Meek, capital 39,300
Cr Mo Meek, drawings 39,300
Dr Lu Ling, capital 53,300
Cr Lu Ling, drawings 53,300
Dr Barb Beck, capital 69,300
Cr Barb Beck, drawings 69,300
Suppose Ms. Smith sells her 2018 Honda Fit next year. The original cost of the vehicle was $10,000. During the time she has owned the car she has taken $3,000 dollars of deprecation on it. Ms. Williams sells the car for $9,000. What is resul
The question is incomplete. Here is the complete question
Suppose Ms. Smith sells her 2018 Honda Fit next year. The original cost of the
vehicle was $10,000. During the time she has owned the car she has taken $3,000 dollars
of deprecation on it. Ms. Williams sells the car for $9,000. What is result of the transaction?
A. An ordinary loss of $1,000
B. Long-term capital gain of $2,000
C. An ordinary gain of $2,000
D. An ordinary gain of $6,000
Answer:
An ordinary gain of $2,000
Explanation:
Ms. Smith wants to sell her 2018 Honda fit car next year
The original cost of the car is $10,000
She has incurred $3,000 worth of depreciation on it during the period that she has used the car
She sells the car for $9,000
Her transaction rate can be calculated as follows:
Net value of the car= $10,000-$3,000
= $7,000
Amount of gain realized while selling the car= $9,000-$7,000
= $2,000
Hence Ms. Smith has an ordinary gain of $2,000 after selling her car
"A registered representative makes it a regular practice to check in with his actively trading customers at least once a week and with his inactively trading customers at least once a month. Some of his less active customers are senior citizens who are getting on in years. He calls one of these elderly clients as part of his regular monthly contacting and finds that the customer does not recognize who he is and appears to be disoriented. The FIRST thing the representative should do is:"
Answer:
contact the firm's compliance department
Explanation:
the first thing the representative should do is to contact the firms compliance department for guidance on how to handle the situation.
The SEC and the FNRA are bodies that have concerns about investors who are old/aging. These people may easily fall prey to scams due to their failing mental capacities. To protect someone like this firms have the responsibility of training their employees to identify diminished mental capacity. FINRA requires that firms have internal process to permit representatives to seek advise from others on what step they are to take.
The Japan Airlines CEO's behavior has been unordinary according to usual industry practices. He doesn't have a corporate jet, as many CEO's do. He also knocked down his office walls and takes a bus to work. What device is Haruka Nishimatsu trying to exemplify and mold
Answer:
Organizational culture
Explanation:
Remember, the CEO holds a leadership role in which he could influence the culture of the organization.
Therefore, by removing the lavish lifestyle common among other CEOs from himself, Japan Airlines CEO is acting as a role model for other employees, so as to mould an organizational culture where workers avoid excessive spending of company money on personal nonessential things.
Oriole Shoes Foot Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case. The attorneys estimated that there is a 40% chance of losing. If this is the case, their attorney estimated that the amount of any payment would be $803000. What is the required journal entry as a result of this litigation
Answer:
No journal entries required
Explanation:
According to attorney estimation, the chances of winning the case are certain therefore no journal entry is required for adjustments since the chances of losing the case are very uncertain.
Suppose that from a new checkable deposit, First National Bank holds 4 million dollars in vault cash, 16 million dollars on deposit with the Federal Reserve, and 18 million dollars in excess reserves. Given this information, we can say First National Bank has ________ million dollars in required reserves.
Answer:
We can say First National Bank has 2 million dollars in required reserves
Explanation:
In order to calculate the required reserves we would have to make the following calculation:
Required reserves = Total reserves - excess reserves = vault cash + deposits with Federal Reserve - excess reserves
vault cash= 4 million dollars
deposits with Federal Reserve= 16 million dollars
excess reserves=18 million dollars
Therefore, Required reserves=4 million dollars+ 16 million dollars-=18 million dollars
Required reserves= 2 million dollars
We can say First National Bank has 2 million dollars in required reserves
Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $900 per year for 16 years at 4%. $ $450 per year for 8 years at 2%. $ $300 per year for 8 years at 0%. $ Rework parts a, b, and c assuming they are annuities due. Future value of $900 per year for 16 years at 4%: $ Future value of $450 per year for 8 years at 2%: $ Future value of $300 per year for 8 years at 0%: $
Answer:
Ordinary annuities:
$19,642.08
$3,862.34
$2400
Annuities due:
$20,427.76
$3,939.58
$2400
Explanation:
The future values of the annuities can be computed using excel future value formula:
=fv(rate,nper,-pmt,pv,type)
rate is the interest rate
nper is the period of investment stated in years
pmt is the regular investment amount
pv is present worth of each investment which is unknown and taken as zero
type could either be 0 or 1
1 is for annuity due
0 is for ordinary annuity
Ordinary annuities:
$900 per year for 16 years at 4%
=fv(4%,16,-900,0,0)=$19,642.08
$450 per year for 8 years at 2%
=fv(2%,8,-450,0,0)=$3,862.34
$300 per year for 8 years at 0%
=fv(0%,8,-300,0,0)=$2400
annuities due:
$900 per year for 16 years at 4%
=fv(4%,16,-900,0,1)=$20,427.76
$450 per year for 8 years at 2%
=fv(2%,8,-450,0,1)=$3,939.58
$300 per year for 8 years at 0%
=fv(0%,8,-300,0,1)=$2400
You need a particular piece of equipment for your production process. An equipment-leasing company has offered to lease the equipment to you for $ 10 comma 000 per year if you sign a guaranteed 5-year lease (the lease is paid at the end of each year). The company would also maintain the equipment for you as part of the lease. Alternatively, you could buy and maintain the equipment yourself. The cash flows from doing so are listed below (the equipment has an economic life of 5 years). If your discount rate is 7.0 %, what should you do?
Answer: Lease Equipment as it is cheaper than Buying the Equipment
Explanation:
The better option would be the one with the lower Present Value between Leasing and Buying.
Buying The Equipment
Cost is $40,000 and then there will be a negative Cashflow of $2,000 every year until the 5th year.
Since the Cashflow is constant it can be treated like an annuity. Using the table attached find the PVIFA factor for 5 years at 7%.
PV = -40,000 + (-2,000 * 4.100 ( PVIFA for 5 periods at 7%))
= 40,000 - 8,200
= -$48,200
Cost of Leasing
Leasing would cost $10,000 per year for 5 years.
PV = -10,000 * 4.100 ( PVIFA for 5 periods at 7%)
= -$41,000
You should Lease the Equipment because it is cheaper.
Which of the following is not counted as a part of GDP?
A. the purchase of 100 shares of AT&T stock by your grandfather.
B. the purchase of a snow plough by the city of Minneapolis.
C. the unsold additions to inventory at an appliances store
D. the purchase of a loaf of bread by a consumer
Answer:
C, The unsold additions to inventory at an appliances store.
Explanation:
GDP = Gross DOMESTIC Product
Since the unsold additions are not sold, there's no money coming from it, thus it is not counted in GDP.
Bonus: If you order clothes from Thailand, that is called GNP. It counts as Thailand's GDP because the money is going into the country, and it counts as America's GNP as you are buying goods from another country.
The following information was taken from the records of Roland Carlson Inc. for the year 2017: income tax applicable to income from continuing operations $187,000, income tax applicable to loss on discontinued operations $25,500, and unrealized holding gain on available-for-sale.
Securities (net of tax) $15,000.
Gain on sale of equipment $95,000
Cash dividends declared $150,000
Loss on discontinued operations 75,000
Retained earnings January 1, 2017 600,000
Administrative expenses 240,000
Cost of goods sold 850,000
Rent revenue 40,000
Selling expenses 300,000
Loss on write-down of inventory 60,000
Sales revenue 1,900,000
Shares outstanding during 2017 were 100,000.
Required:
a. Prepare single -step income statement.
b. Prepare comprehensive income statement for 2014, using two statement format.
c. Prepare a retained earnings statement for 2014.
Answer:
A.$3.37
B. $786,600
C.$351,600
Explanation:
(a)
Income Statement of ROLAND CARLSON INC For the Year Ended December 31, 2017
Revenues
Sales $1,900,00
Rent revenue 40,000
Total revenues 1,940,000
Expenses:
Cost of goods sold 850,000
Selling expenses 300,000
Administrative expenses 240,000
Total expenses $1,390,000
Continuing operations income before income tax 550,000
Income tax:187,000
Income from continuing operations: 363,000
Discontinued operations:
discontinued operations loss: 75,000
Less: income tax reduction (25,500)
Balance(75,000-25,500) 49,500
Income before extraordinary items: 313,500
(363,000-49,500)
Extraordinary gain: 95,000
Less: Applicable income tax (32,300)
62,700
(313,500+62,700) 376,200
Extraordinary loss: 60,000
Less: income tax reduction 20,400
Balance (60,000-20,400)39,600
Net income $336,600
(376,200-39,600)
common stock per share:
Income continuing operations $3.63
Operations discontinued:
(.49)
Items ( Extraordinary) 3.14
($313,500 ÷ 100,000)
Extraordinary gain, net tax 63
Extraordinary loss, net tax (.40)
Net income $3.37
($336,600 ÷ 100,000)
(b)
Roland Carlson Inc.
Retained Earnings Statement For the Year Ended December 31, 2017
Jan 1 Retained earnings $600,000
Add: Net income 336,600
(600,000+336,600)$936,600
Less: Dividends declared 150,000
Dec 31 Retained earnings 786,600
(936,600-150,000)
(c)
Comprehensive Income Statement of ROLAND CARLSON INC For the Year Ended December 31, 2017
Net income $336,600
Other comprehensive incomeUnrealized holding gain 15,000
Comprehensive income $351,600
($336,600+15,000)
Blossom Company sells office equipment on July 31, 2022, for $23,730 cash. The office equipment originally cost $79,700 and as of January 1, 2022, had accumulated depreciation of $36,130. Depreciation for the first 7 months of 2022 is $4,970.
Prepare the journal entries to (a) update depreciation to July 31, 2014, and (b) record the sale of the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
a. The entries are:
Debit Depreciation expenses for $4,920;
Credit Accumulated depreciation for $4,920.
b. The entries are:
Debit Cash for $23,730
Debit Accumulated depreciation for $41,100
Debit Loss on disposal of equipment for $14,870
Credit Equipment for $79,700
Explanation:
(a) Prepare the journal entries to update depreciation to July 31, 2022.
Note: the correct date to update to is July 31, 2022 not the wrongly stated July 31, 2014 in the question.
The journal entries will look as as follows:
Date Particulars Dr ($) Cr ($)
July 31 Depreciation expenses 4,920
Accumulated depreciation 4,920
To record the updating of depreciation to July 31, 2022.
(a) Prepare the journal entries to record the sale of the equipment.
To prepare this, we need to first calculate the gain or loss on disposal as follows:
Accumulated depreciation till date = $36,130 + $4,970 = $41,100
Net book value = Equipment cost - Accumulated depreciation till date = $79,700 - $41,100 = $38,600
Gain or loss on disposal = Sales proceed - Net book value = $23,730 - $38,600 = $14,870 loss
The journal entries will be as follows:
Date Particulars Dr ($) Cr ($)
July 31 Cash 23,730
Accumulated depreciation 41,100
Loss on disposal of equipment 14,870
Equipment 79,700
(To record disposal of equipment.)
Answer the question based on the following supply and demand schedules in units per week for a product. Price Quantity Demanded Quantity Supplied $60 100 400 50 140 340 40 180 280 30 220 220 20 260 160 10 300 100 If the government introduced a guaranteed price floor of $40 and agreed to purchase surplus output, then the government's total support payments to producers would be
Answer:
$4,000
Explanation:
For computation of the government's total support payments to producers first we need to find out the surplus units which is shown below:
Floor price = $40
[tex]Q_d = 180[/tex]
[tex]Q_s = 280[/tex]
[tex]Surplus\ units[/tex] = [tex]Q_s - Q_d[/tex]
= 280 - 180
= 100
Therefore,
The Total support payments to producer = Price floor × Surplus units
= $40 × 100
= $4,000
So, for determining the total support payment to producer we simply multiply the price floor with surplus units.
A process produces 5000 units of output that yield $6 per unit. Resources contributed to this output are 200 hours of labor at $15 per hour, materials at $700 and overhead at $300. What is the labor productivity? (assuming that the output is measured by its unit)
Answer:
Labor productivity = 25 units per hour
Explanation:
The labor productivity per hour is the number of output units , per unit of labor input.
Number of units produced = 5,000 units
Number of hours of labor input = 200 hours
∴ Labor productivity = units produced ÷ labor input in hours
Labor productivity = 5,000 ÷ 200 = 25
∴ Labor productivity = 25 units per hour
Exercise 13-12 Ivanhoe Company includes one coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2020, Ivanhoe Company purchased 9,000 premiums at 85 cents each and sold 109,000 boxes of soap powder at $3.10 per box; 48,000 coupons were presented for redemption in 2020. It is estimated that 60% of the coupons will eventually be presented for redemption. Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2020. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record the premium inventory) (To record the sales) (To record the expense associated with the sale) (To record the premium liability)
Answer: Please see below
Explanation:
1) Journal to record the purchase of 9000 premiums at 85 cents
Year Account Title and explanations Debit Credit
2020 n Inventory of premium $7,650
Cash $7,650
working
Purchase price= Number of units purchased x price per unit
9000 x 0.85= $7,650
2) Journal to record the sale of 109,000 boxes at $3.10
Year Account Title and explanations Debit Credit
2020 Cash $337,900
Sales Revenue $337,900
working
Sale price= Number of units sold x price sold per unit
109,000 boxes x $3.10= $337,900
3) Journal to record the premium expenses
Year Account Title and explanations Debit Credit
2020 Premium Expenses $4,080
Inventory on premium $4080
working
Premium expenses= coupons presented for redemption / number of coupons to redeem premium x price per premium
= 48,000/10 x 0.85 = $4,080
4) Journal to record the premium liability
year Account Title and explanations Debit Credit
2020 Premium Expenses $1,479
Premium liability $1,479
working
Estimated redemption on number of boxes sold = number of boxes sold x probability of redemption= 109,000 x 60 %= $65,400
premium liability of coupons = estimated redemption of premiums - number of coupons already redeemed
= 65,400- 48,000 = 17,400
Cost of premium liabilty = premium liability of coupons /number of coupons per premium x rate per premium
17,400/10 x 0.85 ==$1,479
Akwamba made this statement organization cannot be successful if managers fail to pay attention to the forces in the external environment. Do you agree or not. Justify using practical examples
Answer:
I agree A firm cannot be successful if it does not pay attention to external and force environments
A corporation has 41,770 shares of $35 par stock outstanding that has a current market value of $292 per share. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately a.$1,168.00 b.$8.75 c.$73.00 d.$257.00
Answer:
c. $73.00 per share
Explanation:
The computation of market value of the stock will fall to approximately is shown below:-
The market value of the stock will fall to approximately = Market value per share ÷ 4-for-1 stock split
= $292 ÷ 4-for-1 stock split
= $73.00 per share
Therefore for computing the market value of the stock will fall to approximately we simply applied the above formula.
Calculating and using Dual Charging Rates
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:
Fixed costs (salaries, tools): $65,400 per year
Variable costs (supplies): $1.3 per maintenance hour
The Assembly and Packaging departments expect to use maintenance hours relatively evenly throughout the year. The Fabricating Department typically uses more maintenance hours in the month of November. Estimated usage in hours for the year and for the peak month is as follows:
Yearly Monthly
hours Peak Hours
Assembly Department 4,300 210
Fabricating Department 6,900 1,050
Packaging Department 10,800 840
Total maintenance hours 22,000 2,100
Actual usage for the year by:
Assembly Department 3,500
Fabricating Department 7,000
Packaging Department 10,000
Total maintenance hours 20,500
Required:
1. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent. $ per maintenance hour Calculate the allocated fixed cost for each using department based on its budgeted peak month usage in maintenance hours.
Department Peak Number of Hours Allocated Fixed Cost
Assembly
Fabrication
Packaging
Total
2. Use the two rates to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year.
Assembly
Fabricating
Packaging
Total
3. What if the Assembly Department used 3,550 maintenance hours in the year? How much would have been charged out to the three departments?
Assembly
Fabricating
Packaging
Total
Answer:
1. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent. $ per maintenance hour Calculate the allocated fixed cost for each using department based on its budgeted peak month usage in maintenance hours.
variable rate = $1.30 per maintenance hour
Department Peak Number Allocated
of hours Fixed cost
Assembly (210/2,100) x $65,400 $6,540
Fabrication (1,050/2,100) x $65,400 $32,700
Packaging (840/2,100) x $65,400 $26,160
Total 2,100/2,100 $65,400
2. Use the two rates to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year.
Department Fixed costs Variable cost Total
Assembly $6,540 3,500 x $1.30 = $4,550 $11,090
Fabricating $32,700 7,000 x $1.30 = $9,100 $41,800
Packaging $26,160 10,000 x $1.30 = $13,000 $39,160
Total $65,400 $26,650 $92,050
3. What if the Assembly Department used 3,550 maintenance hours in the year? How much would have been charged out to the three departments?
Department Fixed costs Variable cost Total
Assembly $6,540 3,550 x $1.30 = $4,615 $11,155
Fabricating $32,700 7,000 x $1.30 = $9,100 $41,800
Packaging $26,160 10,000 x $1.30 = $13,000 $39,160
Total $65,400 $26,715 $92,115
Two features of internal control are presented in the following sections. Each is followed by a list of four irregularities that occurred in processing data. Identify the one irregularity from each list that would be discovered or prevented by the feature of internal control described.
a. The sum of the balances of the accounts in the customer's ledger is compared at the end of each month with the balance of the accounts receivable account in the general ledger by a person who has no responsibility for maintaining either the general ledger or the customers ledger.
Five hours of services were rendered but the customer was only billed for four hours.
A cash receipt of $750 was recorded correctly in the accounts receivable controlling account but was posted to the customer's ledger as $75.
A bill for services rendered to Cole Co. was erroneously posted to the account of Coleman Co. in the customer's ledger.
No entry was made in the accounting records for services rendered to a customer.
The irregularity that would be discovered or prevented by the feature of internal control described is: ________
b. Both cash and credit charges for services rendered are recorded on prenumbered invoices. At the end of the day, all invoices are accounted for before the duplicate copies of the invoices are routed to the Accounting Department for entry into the accounts and the cash is sent to the Cashier's Department for deposit.
Some charge customers complained that the monthly statements of account did not add all amounts correctly.
Some clerks used incorrect hourly rates in preparing invoices.
Some clerks destroyed duplicate copies of cash invoices and misappropriated the cash.
Some charge customers complained that the monthly statement of account did not indicate credits for payments made.
The irregularity that would be discovered or prevented by the feature of internal control described is: _____________.
Answer: a. A cash receipt of $750 was recorded correctly in the accounts receivable controlling account but was posted to the customer's ledger as $75.
b. Some clerks destroyed duplicate copies of cash invoices and misappropriated the cash.
Explanation:
a. When the person (who not handled this account before) is crosschecking the balance on accounts in the Customers Ledger against the accounts receivable account in the general ledger, they will discover that $750 was recorded correctly in the Accounts Receivables Control Accounts in the General ledger but was recorded at only $75 in the Customers Ledger.
b. The sales clerks would have destroyed only duplicates whilst the originals were still there. Worse still for them is that these duplicates have been accounted for with the Originals. This way when they destroy the duplicates, the company can still confirm with the originals that that cash was indeed paid.
Janus Coat Company purchased a delivery truck on June 1 for $30,000, paying $10,000 cash and signing a 6%, 2-month note for the remaining balance. The truck is expected to depreciate $6,000 each year. Janus Coat Company prepares monthly financial statements. Prepare the general journal entry to record the acquisition of the delivery truck on June 1st. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
Dr delivery truck $30,000
Cr cash $10,000
Cr notes payable $20,000
Explanation:
The acquisition of the truck was consummated partly in cash of $10,000 and notes payable was signed for the remainder of $20,000,hence the appropriate would be to debit delivery truck account with the total cost of $30,000 while the cash account and notes payable are credited with $10,000 and $20,000 respectively.
The interest would be due and recognized later on,not when the truck is freshly acquired.
Assets totaled $24,750 and liabilities totaled $8,550 at the beginning of the year. During the year, assets decreased by $3,550 and liabilities increased by $2,850. What is the amount of the change in stockholders' equity during the year?
Answer:
Amount of the change in stockholders' equity during the year is $6,400 (Decrease)
Explanation:
Assets = $24,750
Liabilities = $8,550
Equity = Assets - Liability
Equity at Beginning : $24,750 -$8,550 = $16,200
Equity at End : ($24,750 - $3,550) - ($8,550+$2,850)
= $21,200 - $11,400
= $9,800
Change in Stock holder's Equity : $16,200 -$9,800
= $6,400(Decrease)
Chrzan, Inc., manufactures and sells two products: Product E0 and Product N0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product E0 300 9.0 2,700 Product N0 1,000 8.0 8,000 Total direct labor-hours 10,700 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product E0 Product N0 Total Labor-related DLHs $ 296,390 2,700 8,000 10,700 Production orders orders 55,587 300 400 700 Order size MHs 579,866 5,000 4,700 9,700 $ 931,843 The activity rate for the Order Size activity cost pool under activity-based costing is closest to:_________-.
A. $59.78 per MH
B. $87.09 per MH
C. $44.16 per MH
D. $37.05 per MH
Answer:
A. $59.78 per MH
Explanation:
The computation of activity rate for the Order Size activity cost pool under activity-based costing is shown below:-
Activity rate for the Order Size activity cost pool = Activity pool cost ÷ Total expected activity
= $579,866 ÷ 9,700
= $59.78 per MH
Therefore for computing the activity rate for the Order Size activity cost we simply applied the above formula and ignore all other value as the other values are not relevant.
On January 1, Frederic Manufacturing had a beginning balance in WorkminusinminusProcess Inventory of $ 163,000 and a beginning balance in Finished Goods Inventory of $ 23,000. During the year, Frederic incurred manufacturing costs of $ 200,000.
During the year, the following transactions occurred:
Job C- 62 was completed for a total cost of $143,000 and was sold for $158,000.
Job C - 63 was completed for a total cost of $183,000 and was sold for $214,000.
Job C - 64 was completed for a total cost $84,000 but was not sold as of year - end.
The Manufacturing Overhead account had an unadjusted credit balance of $24,000 and was adjusted to zero at year - end. What was the final balance in the Cost of Goods Sold account?
a. $302,000 credit balance
b. $302,000 debit balance
c. $350,000 debit balance
d. $350,000 credit balance
Answer:
$317,000 debit balance
Explanation :
Frederic Manufacturing final balance in the Cost of Goods Sold account:
Cost of Job C 62 158,000
Cost of Job C 63 183,000
Less manufacturing overhead over allocated to production (24,000)
Cost of goods sold 317,000
158,000+183,000
=341,000-24,000
=$317,000
Balance sheet and income statement data indicate the following: Bonds payable, 11% (due in 15 years) $1,023,237 Preferred 8% stock, $100 par (no change during the year) $200,000 Common stock, $50 par (no change during the year) $1,000,000 Income before income tax for year $383,882 Income tax for year $115,165 Common dividends paid $60,000 Preferred dividends paid $16,000 Based on the data presented above, what is the times interest earned ratio (round to two decimal places)
Answer:
The times interest earned (TIE) ratio = 4.41 times
Explanation:
The times interest earned (TIE) ratio is an accounting ratio that shows the extent to which the income income of an organization can be used to cover its future interest expenses. This can be calculated as follows:
TIE Ratio = Earning before interest and tax (EBIT) / Interest expenses
Since,
Bonds payable, 11% (due in 15 years) = $1,023,237
Interest expenses = 11% * $1,023,237 = $112,556.07
Income before income tax for year = $383,882
EBIT = Interest expenses + Income before income tax for year = $112,556.07 + $383,882 = $496,438.07
Therefore, we have:
The times interest earned (TIE) ratio = $496,438.07 / $112,556.07 = 4.41 times
This shows that the income is 4.41 times greater than its annual interest expense. That is, the income can cover the annual interest 4.41 times.