Answer:
Results are below.
Explanation:
1) Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.
Direct material= Thread + Premium quality cotton material + Buttons
Direct material= 1,000 + 42,000 + 750
Direct material= $43,750
2) Direct labor is production or service labor that is assigned to a specific product, cost center, or work order.
Direct labor= Wages paid to seamstresses + Wages paid to cutters Direct labor= 75,000 + 50,000
Direct labor= $125,000
3) Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.
Manufacturing overhead= Factory rent + Utilities for factory + Cutting room supervisor's salary + Factory insurance + Depreciation on sewing machines
Manufacturing overhead= 42,000 + 22,000 + 30,000 + 15,000 + 6,000
Manufacturing overhead= $115,000
4) Total manufacturing costs= 43,750 + 125,000 + 115,000
Total manufacturing costs= $283,750
5) Prime cost= direct material + direct labor
Prime cost= 43,750 + 125,000
Prime cost= $168,750
6) Conversion cost= direct labor + MOH
Conversion cost= 125,000 + 115,000
Conversion cost= $240,000
7) Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.
Period costs= Company advertising + Depreciation on salespersons' vehicles + President's salary
Period costs= 18,000 + 25,000 + 75,000
Period costs= $118,000
Routsong Corporation had the following sales and production for the past four years:
Year 1 Year 2 Year 3 Year 4
Production in units 6,000 9,000 4,000 5,000
Sales in units 6,000 6,000 5,000 7,000
Selling price per unit, variable cost per unit, and total fixed cost are the same each year. There were no beginning inventories in Year 1. Which of the following statements is not correct?
A. Under variable costing, net operating income for Year 1 and Year 2 would be the same.B. Because of the changes in production levels, under variable costing the unit product cost will change each year.C. The total net operating income for all four years combined would be the same under variable and absorption costing.D. Under absorption costing, net operating income in Year 4 would be less than the net operating income in Year 2.
Answer:
B. Because of the changes in production levels, under variable costing the unit product cost will change each year
Explanation:
In variable costing, Product Cost is the total of variable manufacturing costs only. Whereas in Absorption costing, the Product cost is the total of both variable and fixed manufacturing overheads.
The following statements is not correct : Because of the changes in production levels, under variable costing the unit product cost will change each year.
Riverside Oil Company in eastern Kentucky produces regular and supreme gasoline. Each barrel of regular sells for $21 and must have an octane rating of at least 90. Each barrel of supreme sells for $25 and must have an octane rating of at least 97. Each of these types of gasoline are manufactured by mixing different quantities of the following three inputs:
Input Cost per Barrel Octane Rating Barrels Available in (1000s)
1 $17.25 100 150
2 $15.75 87 350
3 $17.75 110 300
Riverside has orders for 300,000 barrels of regular and 450,000 barrels of supreme. How should the company allocate the available inputs to the production of regular and supreme gasoline to maximize profits?
a. Formulate and LP model for this problem.
b. What is the optimal solution?
Solution :
Here,
[tex]$X_{iR}$[/tex] = the number of the barrels mixed i to manufacture the regular gasoline
[tex]$X_{iS}$[/tex] = the number of the barrels mixed i to manufacture the supreme gasoline.
The [tex]$\text{selling price}$[/tex] of each of the barrel of both gasoline is [tex]$\$ 21$[/tex] and [tex]$\$25$[/tex]. So the total [tex]$\text{selling price}$[/tex] of both types of gasoline is represented by :
[tex]$21 \times \sum X_{iR} +25 \times \sum X_{iS}$[/tex]
The cost prices of one barrel of the three types of input are 17.25, 1575 and 17.75.
So the total price is represented by :
[tex]$17.25 \times (X_{iR}+X_{iS})+15.75 \times (X_{2R}+X_{2S})+17.75 \times (X_{3R}+X_{3S})$[/tex]
The company wants to increase the profit. So maximize objective function will be used.
Max Z = [tex]$(21. \times \sum X_{iR} +24 \times \sum X_{iS})-[17.25 \times (X_{iR}+X_{iS})+17.75 \times (X_{2R}+X_{2S})+17.75 \times (X_{3R}+X_{3S})]$[/tex]The company has 150,000 barrels of input 1 available. So,
[tex]$X_{1R}+ X_{1S} \leq 150,000$[/tex]
[tex]$X_{2R}+ X_{2S} \leq 350,000$[/tex]
[tex]$X_{3R}+ X_{3S} \leq 300,000$[/tex]
The company got an order to sell 300,000 barrels of regular and 450,000 barrels of supreme gasoline. So,
[tex]$X_{1R}+X_{2R}+X_{3R} = 300,000$[/tex]
[tex]$X_{1S}+X_{2S}+X_{3S} = 450,000$[/tex]
The company wishes the regular gasoline to have octane number of at least 90. So,
[tex]$\frac{100 \times X_{1R}+87 \times X_{2R} +10 \times X_{3R}}{\sum X_{iR}}\geq 90$[/tex]
The company wishes the supreme gasoline to have octane number of at least 97. So,
[tex]$\frac{100 \times X_{1S}+87 \times X_{2S} +10 \times X_{3S}}{\sum X_{iR}}\geq 97$[/tex]
Formulating the LP model :
Max :
[tex]$[21 \times \sum X_{iR}+25 \times \sum X_{iS}]$[/tex] [tex]$-[17.25 \times (X_{1R}+X_{1S})+15.75 \times (X_{2R}+X_{2S})+17.75 \times (X_{3R}+X_{3S})]$[/tex]
Subject to :
[tex]$X_{1R}+ X_{1S} \leq 150,000$[/tex]
[tex]$X_{2R}+ X_{2S} \leq 350,000$[/tex]
[tex]$X_{3R}+ X_{3S} \leq 300,000$[/tex]
Also,
[tex]$X_{1R}+X_{2R}+X_{3R} = 300,000$[/tex]
[tex]$X_{1S}+X_{2S}+X_{3S} = 450,000$[/tex]
[tex]$\frac{100 \times X_{1R}+87 \times X_{2R} +10 \times X_{3R}}{\sum X_{iR}}\geq 90$[/tex]
[tex]$\frac{100 \times X_{1S}+87 \times X_{2S} +10 \times X_{3S}}{\sum X_{iR}}\geq 97$[/tex]
Why is a country better off isolating itself from all other countries
Answer:
Para se proteger dos vazamentos de informações confidenciais do país
At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 913,000 Credit sales 313,000 Its year-end unadjusted trial balance includes the following items. Accounts receivable $ 138,000 debit Allowance for doubtful accounts 6,300 debit Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 4% of credit sales, (2) 2% of total sales and (3) 7% of year-end accounts receivable.
Answer:
Folgeys Coffee Company
(1) 4% of credit sales:
Debit Bad Debts Expense $18,820
Credit Allowance for Doubtful Accounts $18,820
To record bad debts expense and bring the balance to $12,520
(2) 2% of total sales:
Debit Bad Debts Expense $30,820
Credit Allowance for Doubtful Accounts $30,820
To record bad debts expense and bring the balance to $24,520.
(3) 7% of year-end accounts receivable:
Debit Bad Debts Expense $15,960
Credit Allowance for Doubtful Accounts $15,960
To record bad debts expense and bring the balance to $9,660.
Explanation:
a) Data and Calculations:
Cash Sales = $913,000
Credit Sales = $313,000
Total Sales = $1,226,000
Accounts Receivable = $138,000 Debit
Allowance for Doubtful Accounts = $6,300 debit
Estimated uncollectibles:
(1) 4% of credit sales:
= $12,520 ($313,000 * 4%)
Bad Debts Expense $18,820
Allowance for Doubtful Accounts $18,820
(2) 2% of total sales:
= $24,520 ($1,226,000 * 2%)
Bad Debts Expense $30,820
Allowance for Doubtful Accounts $30,820
(3) 7% of year-end accounts receivable:
= $9,660 ($138,000 * 7%)
Bad Debts Expense $15,960
Allowance for Doubtful Accounts $15,960
. The budgeted amount of raw materials to be purchased is determined by: A. Adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule. B. Subtracting the beginning inventory of raw materials from the raw materials needed to meet the production schedule. C. Adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials. D. Adding the beginning inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the desired ending inventory of raw materials. E. Adding the desired ending inventory of work in process inventory to the raw materials needed to meet the product
Answer:
C. Adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials.
Explanation:
In a budget workflow for raw materials, the relationship between the opening balance, purchase, requirement for production and ending balance may be stated as
opening + purchases - required = closing balance
Hence the raw materials to be purchased
purchases = closing balance + required - opening
C. Adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials.
Answer:
C. Adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials.
Explanation:
Hope this helps
If the economy heads into a recession due to a global pandemic, which types of businesses would be less affected by a
decrease in consumer spending due to larger capital investments?
emaining
00:55:06
A)
partnership
8)
corporation
sole trader
D)
sole proprietorship
E)
Limited liability partnership
Answer: partnership, corporation and limited liability partnership
Partnership, corporation and limited liability partnership are the types of businesses would be less affected during recession. Thus, the correct answers are option A, B, and E.
What is recession?A recession is a business cycle contraction that occurs when there is a general decline in economic activity. Recessions occur when consumer spending falls dramatically.
A recession is a significant, widespread, and long-lasting decline in economic activity. If the economy enters a recession as a result of a global pandemic, partnerships, corporations, and limited liability partnerships will be less affected by a decrease in consumer spending due to larger capital investments.
Therefore, partnership, corporation and limited liability partnership remain unaffected in recession.
To learn more about recession, click here:
https://brainly.com/question/14737261
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Cullumber Company uses the lower-of-cost-or-net realizable value basis for its inventory. The following data are available at December 31. Item Units Unit Cost Net Realizable Value Cameras: Minolta 3$172$152 Canon 9140170 Light meters: Vivitar 13130100 Kodak 16117128 Determine the amount of the ending inventory by applying the lower-of-cost-or-net realizable value basis. The ending inventory $enter The ending inventory in dollars
Answer:
Cullumber Company
The ending inventory is:
= $4,888.
Explanation:
a) Data and Calculations:
Item Units Unit Cost Net Realizable Value Value of Ending
Cameras: Inventory (LCNRV)
Minolta 3 $172 $152 $456 ($152 * 3)
Canon 9 140 170 1,260 ($140 * 9)
Light meters:
Vivitar 13 130 100 1,300 ($100 * 13)
Kodak 16 117 128 1,872 ($117 * 16)
Total value of Ending Inventory based on LCNRV = $4,888
b) The Lower of cost- or net realizable value method of valuing ending inventory determines the value by choosing the lower value between the cost price of the inventory and the net realizable value. The purpose that is served by using the LCNRV method is that it reflects the decrease of inventory value when it goes below its original cost while at the same time it does not recognize the increased market value when the cost is lower.
Select the qualification that is best demonstrated in each example.
Noah calculates the amount of money to add to a bank account.
Conrad stays calm and professional even when speaking with an angry customer.
Gabby is friendly and welcoming to customers who visit her bank.
Keiko explains a complicated loan application to a customer.
Answer:
Bankers
Explanation:
They all work in the bank but in different positions
Answer:
math skills, stress-management skills, customer-service skills & communication skills
Explanation:
I just did it on edge
When did the court cases reach the Supreme Court?
Answer:
August 3, 1791
Explanation:
the management team at electronics galaxy is evaluating whether or not to have sales staff wear uniforms on the showroom floor. what should they consider about wearing uniforms?
A. how staff are dressed doesn't usually have much of an impact on customers
b. Uniforms can help customers identify members of the sales staff
c. team morales usually suffers when uniforms are put in place
d. Uniforms can take away from each employees individual personality
Answer:
b. Uniforms can help customers identify members of the sales staff
Explanation:
When evaluating whether or not to have sales staff wear uniforms on the showroom floor. What the electronics galaxy should consider about wearing uniforms is that "Uniforms can help customers identify members of the sales staff."
As customers come in to buy their products, they can quickly know the sales staff, and approach them to describe the type of. the product they came for and eventually buy the product if satisfied.
Consider the elements of cost in Geordie Ltd, namely, the cost of a product, the cost of direct labour and the cost of non-labour expenses (usually referred to as the overhead). In this company the material cost of a product is $6 less than thrice the cost of the direct labour; and the overhead is 3/4 of the direct labour cost. Knowing that the total cost of the product is $120, compute the amount of the material cost of the product, rounded to nearest 100-th
Answer:
$73.58
Explanation:
Total cost of product = $120
Total cost of product = Cost of material + Direct labor + Overhead
Cost of material = (3 * direct labor) - $6
Overhead = ¾ of Direct labor
Total cost of product = 3DL - $6 + DL + ¾ of DL
$120 = 3DL - $6 + DL + 0.75 DL
$126 = 4.75 DL
Direct Labor = 126/4.75
Direct Labor = $26.53
Material cost = 3 * $26.53 - $6
Material cost = $73.58
What is the most important change this student should make to her profile as she begins to apply to college?
(A)She should list the address for her high school.
(B)She should tell more about her summer experiences.
(C)She should describe her plans for her social life in greater detail.
(D)She should place less emphasis on partying and tell more about her future intentions.
Answer:
D
Explanation:
ong fam
Answer:
The other person is right.
Explanation:
Thanksgiving Inc. sells an average of 200 turkeys weekly, with a standard deviation of 25 (assume a normal distribution). Turkey inventory levels are reviewed every four weeks and it takes two weeks to receive a shipment. Assume Thanksgiving Inc. reviews their inventory two weeks before the Thanksgiving and finds 150 turkeys on hand. Thanksgiving Inc. uses a service level of 95% (z=1.645).
Required:
How many turkeys should Thanksgiving Inc. order?
Answer:
the number of turkeys is 1,154 units
Explanation:
The computation of the number of turkeys is shown below:
= Demand (weeks) + service level of 95% √weeks × standard deviation - turkeys on hand
= 200 (4 +2) + 1.65√4 + 2 × 25 - 150
= 1200 + 101.04 - 150
= 1,154 units
hence, the number of turkeys is 1,154 units
Libre, Inc. has experienced bad debt losses of 5% of credit sales in prior periods. At the end of the year, the balance of Accounts Receivable is $110,000 and the Allowance for Doubtful Accounts has an unadjusted credit balance of $1,000. Net credit sales during the year were $170,000. Using the percentage of credit sales method, what is the estimated Bad Debt Expense for the year
Answer:
$8,500
Explanation:
Given that;
Net credit sales during the year = $170,000
Estimated percentage of bad debt = 5%
The solution of estimated bad debt expense for the year is seen below;
Estimated bad debt expense for the year
= Net credit sales during the year × Estimated percentage of bad debt
= $170,000 × 5%
= $8,500
Daniela Fletcher owns undeveloped land (adjusted basis of $80,000 and fair market value of $92,000) on the East Coast. On January 4, 2020, she exchanges it with Lisa Martin (an unrelated party) for undeveloped land on the West Coast and $3,000 cash. Lisa has an adjusted basis of $72,000 for her land, and its fair market value is $89,000. Because the real estate market on the East Coast is thriving, on September 1, 2021, Lisa sells the land she acquired for $120,000.
a. On January 4, 2017, Tanya's realized gain for the West Coast land is $__________ her adjusted basis is$_______, her recognized gain is $ X__________
b. On January 4, 2017, Martin's realized gain for the East Coast land is $_______ adjusted basis is $________
c. Martin's realized gain from the September 1, 2018, sale is .His recognized gain from the September 1, 2018 sale is $_________
Explanation:
a.
for tanya:
realized gain
= (89000+3000) - adjusted basis of 80000
= 92000 - 80000
= $12,000
recognized gain:
this is what she received = $3000
adjusted basis:
= realized gain - recognized gain
= 12000 - 3000
= $9,000
b. for martins;
realized gain
= 92000 - his adjusted basis
= 92000 - (72000 + 3000)
= 92000 - 75000
= $17000
adjusted basis
= $92000 - 17000
= $75,000
c. recognized gain for martin
amount sold - adjusted basis
= 120000 - 75000
= $45000
The following information pertains to Blossom Company.
1. Cash balance per bank, July 31, $10,962.
2. July bank service charge not recorded by the depositor $63.
3. Cash balance per books, July 31, $11,088.
4. Deposits in transit, July 31, $4,473.
5. $2,520 collected for Blossom Company in July by the bank through electronic funds transfer. The accounts receivable collection has not been recorded by Blossom Company.
6. Outstanding checks, July 31, $1,890.
A. Prepare a bank reconciliation at July 31, 2010
B. Journalize the adjusting entries at July 31 on the books of Sunland Company.
Answer:
A. Adjusted cash balance per bank $13,545
Adjusted cash balance per books $13,545
B. July 31
Dr Cash $2,520
Cr Accounts Receivable $2,520
July 31
Dr Bank service charge $63
Cr Cash $63
Explanation:
A. Preparation of a bank reconciliation at July 31, 2010
PHAROAH COMPANY
Bank Reconciliation
31-Jul-10
Cash Balance per bank statement $10,962
Add: Deposit in transit $4,473
$15,435
Less: Outstanding checks $1,890
Adjusted cash balance per bank $13,545
Cash balance per books $11,088
Add: Electronic fund transfer received $2,520
$13,608
less; Bank service charge $63
Adjusted cash balance per books $13,545
B. Preparation of the adjusting entries at July 31 on the books of Sunland Company.
July 31
Dr Cash $2,520
Cr Accounts Receivable $2,520
(To record electronic fund transfer received by bank)
July 31
Dr Bank service charge $63
Cr Cash $63
(To record bank service charges )
what are the indicators are used to carry out capital budgeting for different ventures of a company.
Answer:
The answer is below
Explanation:
The indicators that are used to carry out capital budgeting for different ventures of a company are:
1. Profitability of the project
2. Profitability for equity investors
3. Financial sustainability of the project
These essential indicators assist the firms to evaluate a future project's lifetime cash inflows and outflows to know whether the probable returns would be yielded and satisfy an adequate target goal.
Wildhorse Warehouse distributes hardback books to retail stores and extends credit terms of 4/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred. June 1 Purchased books on account for $2,265 (including freight) from Catlin Publishers, terms 4/10, n/30. 3 Sold books on account to Garfunkel Bookstore for $1,400. The cost of the merchandise sold was $800. 6 Received $65 credit for books returned to Catlin Publishers. 9 Paid Catlin Publishers in full. 15 Received payment in full from Garfunkel Bookstore. 17 Sold books on account to Bell Tower for $1,000, terms of 4/10, n/30. The cost of the merchandise sold was $850. 20 Purchased books on account for $800 from Priceless Book Publishers, terms 3/15, n/30. 24 Received payment in full, less discount from Bell Tower. 26 Paid Priceless Book Publishers in full. 28 Sold books on account to General Bookstore for $2,950. The cost of the merchandise sold was $830. 30 Granted General Bookstore $120 credit for books returned costing $60. Journalize the transactions for the month of June for Wildhorse Warehouse, using a perpetual inventor
Answer:
Wildhorse Warehouse
Journal Entries:
June 1: Debit Inventory $2,265
Credit Accounts payable (Catlin Publishers) $2,265
To record the purchase of goods on account, terms 4/10, n/30.
June 3: Debit Accounts receivable (Garfunkel Bookstore) $1,400
Credit Sales Revenue $1,400
To record the sale of goods on account.
June 3: Debit Cost of goods sold $800
Credit Inventory $800
To record the cost of goods sold.
June 6: Debit Accounts payable (Catlin Publishers) $65
Credit Inventory $65
To record the return of goods on account.
June 9: Debit Accounts payable (Catlin Publishers) $2,200
Credit Cash $2,112
Credit Cash Discounts $88
To record the payment on account.
June 15: Debit Cash $1,400
Credit Accounts receivable (Garfunkel Bookstore) $1,400
To record the receipt of cash on account.
June 17: Debit Accounts receivable (Bell Tower) $1,000
Credit Sales Revenue $1,000
To record the sale of goods on account.
June 17: Debit Cost of goods sold $850
Credit Inventory $850
To record the cost of goods sold.
June 20: Debit Inventory $800
Credit Accounts payable (Priceless Book Publishers) $800
To record the purchase of goods on account, terms 3/15, n/30.
June 24: Debit Cash $960
Debit Cash Discounts $40
Credit Accounts receivable (Bell Tower) $1,000
To record the receipt of cash on account.
June 26: Debit Accounts payable (Priceless Book Publishers) $800
Credit Cash $776
Credit Cash Discounts $24
To record the payment on account.
June 28: Debit Accounts receivable (General Bookstore) $2,950
Credit Sales Revenue $2,950
To receive the sale of goods on account.
June 28: Debit Cost of goods sold $830
Credit Inventory $830
To record the cost of goods sold.
June 30: Debit Sales Return $120
Credit Accounts receivable (General Bookstore) $120
To record the return of goods by a customer.
June 30: Inventory $60 Cost of Goods Sold $60
Explanation:
a) Data and Analysis:
Credit terms to all customers = 4/10, n/30. This means that 4% discount is allowed to customers who pay within 10 days. The credit period is for 30 days, after which the customer is expected to pay interest.
June 1: Inventory $2,265 Accounts payable (Catlin Publishers) $2,265; terms 4/10, n/30.
June 3: Accounts receivable (Garfunkel Bookstore) $1,400 Sales Revenue $1,400
June 3: Cost of goods sold $800 Inventory $800
June 6: Accounts payable (Catlin Publishers) $65 Inventory $65
June 9: Accounts payable (Catlin Publishers) $2,200 Cash $2,112 Cash Discounts $88.
June 15: Cash $1,400 Accounts receivable (Garfunkel Bookstore) $1,400
June 17: Accounts receivable (Bell Tower) $1,000 Sales Revenue $1,000
June 17: Cost of goods sold $850 Inventory $850
June 20: Inventory $800 Accounts payable (Priceless Book Publishers) $800; terms 3/15, n/30.
June 24: Cash $960 Cash Discounts $40 Accounts receivable (Bell Tower) $1,000
June 26: Accounts payable (Priceless Book Publishers) $800 Cash $776 Cash Discounts $24
June 28: Accounts receivable (General Bookstore) $2,950 Sales Revenue $2,950
June 28: Cost of goods sold $830 Inventory $830
June 30: Sales Return $120 Accounts receivable (General Bookstore) $120
June 30: Inventory $60 Cost of Goods Sold $60
why must we worship God?
Answer:
bcoz God has given us everything
Explanation:
and we should have the habit to pray to god everyday. It's a good habit
The following income statements are provided for Li Company's last two years of operation: Year 1 Year 2 Number of units produced and sold 3,500 3,000 Sales revenue $ 101,500 $ 87,000 Cost of goods sold 68,000 60,000 Gross margin 33,500 27,000 General, selling, and administrative expenses 13,000 12,000 Net income $ 20,500 $ 15,000 Assuming that cost behavior did not change over the two-year period, what is the annual amount of the company's fixed manufacturing overhead
760000
Explanation:
trust the process
capital economical definition
Answer:
In finance and accounting, capital generally refers to financial wealth, especially that used to start or maintain a business. ... In classical economics, capital is one of the four factors of production. The others are land, labor and organization
Answer: In economics, capital consists of human-created assets that can enhance one's power to perform economically useful work. ... Capital goods, real capital, or capital assets are already-produced, durable goods or any non-financial asset that is used in production of goods or services.
Explanation:
Blossom Construction Company uses the percentage-of-completion method of accounting. In 2021, Blossom began work on a contract it had received which provided for a contract price of $47500000. Other details follow:
2021
Costs incurred during the year $22000000
Estimated costs to complete as of December 31 16000000
Billings during the year 21500000
Collections during the year 10500000
What should be the gross profit recognized in 2021?
Answer:
Blossom Construction Company
The gross profit that should be recognized in 2021 is:
= $5,500,000.
Explanation:
a) Data and Calculations:
Contract price = $47,500,000
Others:
Billings during the year $21,500,000
Collections during the year $10,500,000
Costs incurred during the year $22,000,000
Estimated costs to complete as of December 31 $16,000,000
Total estimated costs to complete = $38,000,000 ($22 + $16 million)
2021 Revenue = $22/$38 * $47.5 = $27,500,000
Costs incurred during the year = 22,000,000
Gross profit to be recognized = $5,500,000
b) The percentage-of-completion method of accounting for long-term contract measures the percentage of costs incurred in each year against the contract price to determine the revenue which can be attributed to the year.
Kristin Graf is trying to decide how to invest a $10,000 inheritance. One option is to make an additional investment in Rocky Road Excursions in which she has an at-risk basis of $0, suspended losses under the at-risk rules of $7,000, and suspended passive activity losses of $1,000. If Kristin makes this investment, her share of the expected profits this year will be $8,000. If her investment stays the same, her share of profits from Rocky Road Excursions will be $1,000. Another option is to invest $10,000 as a limited partner in the Ragged Mountain Winery; this investment will produce passive activity income of $9,000. Complete the letter to Kristin to review the tax consequences of each alternative. Kristin is in the 28% tax bracket. If an amount is zero, enter "0".
Dear Kristin: This letter is in response to your request for assistance in analyzing the tax consequences from two investment alternatives. One alternative is to make an additional investment of $10,000 in Rocky Road Excursions. The other choice is to invest $10,000 as a limited partner in the Ragged Mountain Winery. The following analysis is based on these facts.
Invest $10,000 in Rocky Road Excursions:
Expected profit from investment $
Beginning at-risk basis $
Increase to at-risk basis due to profit $
Increase to at-risk basis due to investment $
Use of loss suspended by at-risk rules $
Ending at-risk basis $
Beginning suspended passive activity loss $
Reclassified suspended passive activity loss $
Use of suspended passive activity losses—revised $
Current taxable income $
Current tax liability $
Invest $10,000 in Ragged Mountain Winery:
Expected profit from investment—Ragged Mountain Winery $
Expected profit from investment—Rocky Road Excursions $
Use of suspended passive activity losses from Rocky Road Excursions $
Current taxable income $
Current tax liability $
As you can see, the tax effects of the two options vary significantly due to the interplay of the at-risk and passive activity loss rules. This analysis should help you make a more informed investment decision. If you need any further explanation, please contact me. Sincerely, Libba Eanes, CPA Partner
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
Invest $10,000 in Rocky Road Excursions:
Expected Profit from Investment = $8000
Beginning at risk basis = $0
Increase to at-risk basis due to Profit = $8000
Increase to at-risk basis due to investment = $10000
Total = $8000 + $10000 + $0 = $18000
Use of Loss Suspended by at-risk rules = $7000
Ending at risk basis = $11000
Beginning Suspended passive Loss = $1000
Reclassified Suspended passive loss = $ 7000
Use of Suspended passive losses - revised = $8000
Current Taxable Income = $0
Current Tax Liability = $0
Invest $10,000 in Ragged Mountain Winery:
Expected Profit from investment - Ragged Mountain Winery = $9000
Expected Profit from investment - Rocky Road Excursions = $1000
Use of Suspended passive losses from Rocky Road Excursions
($1000 + reclassified suspended under at-risk rules + $1000 suspended passive loss) = $2000
Current Taxable Income = $8000
Current Tax Liability = ($8000 x 28%) = $2.240
A team member who supports the team by performing his or her assigned duties is a
persuader
subordinate
team leader
project facilitator
Answer:
team leader
Explanation:
The Duerr Company manufactures a single product. All raw materials used are traceable to specific units of product. Current information for the Duerr Company follows:
Beginning raw materials inventory $28,000
Ending raw materials inventory 31,000
Raw material purchases 105,000
Beginning work in process inventory 40,000
Ending work in process inventory 50,000
Direct labor 130,000
Total factory overhead 105,000
Beginning finished goods inventory 80,000
Ending finished goods inventory 60,000
The company's cost of raw materials used, cost of goods manufactured and cost of goods sold is:________.
A. Cost of Materials Used Cost of Goods Manufactured Cost of Goods Sold
$105,000 $327,000 $307,000
B. $100,000 $327,000 $342.000
Answer:
Direct material used= $102,000
Cost of goods manufactured= $327,000
COGS= $347,000
Explanation:
First, we need to calculate the cost of direct material used:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 28,000 + 105,000 - 31,000
Direct material used= $102,000
Now, the cost of goods manufactured:
cost of goods manufactured= beginning WIP + direct materials used + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 40,000 + 102,000 + 130,000 + 105,000 - 50,000
cost of goods manufactured= $327,000
Finally, the cost of goods sold:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 80,000 + 327,000 - 60,000
COGS= $347,000
On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS Insurance Co. for $37,152,500, a price reflecting an $5,572,875 goodwill premium. On December 31, 20Y9, The Simmons Group determined that the goodwill from the NWS acquisition was impaired and had a value of only $1,671,863. a. Determine the book value of the goodwill on December 31, 20Y9, prior to making the impairment adjustment. $fill in the blank 1 b. Illustrate the effects on the accounts and financial statements of the December 31, 20Y9, adjustment for the goodwill impairment.
Answer:
The Simmons Group, Inc.
a. December 31, 20Y9, the book value of Goodwill before impairment = $5,572,875
b. Effects on the accounts of the December 31, 20Y9 adjustment for the goodwill impairment:
1. Impairment loss of $3,901,012 will be accounted for in the Income Statement for the year, thus reducing the reported profits by $3,901,012.
2. Goodwill be reduced to $1,671,863 in the balance sheet by deducting the impairment loss of $3,901,012 from the book value before the impairment.
Explanation:
a) Data and Calculations:
Jan. 1, 20Y3, Purchase price of NWS Insurance Co. = $37,152,500
Goodwill on acquisition = $5,572,875
December 31, 20Y9, the book value of Goodwill before impairment = $5,572,875
Impaired value - $1,671,863
Impairment loss = $3,901,012 ($5,572,875 - $1,671,863)
b) The Goodwill impairment shows that the carrying amount, $1,671,863, is less than the fair value of $5,572,875. Goodwill is an intangible asset which Simmons Group acquired from NWS Insurance on January 1, 20Y3. It is annually tested for impairment by comparing the fair value with the carrying value.
Political systems, the systems of government in nations, differ from country to country. It is important to understand the nature of different political systems and develop an awareness of and appreciation for the significance of national differences. Political systems are assessed according to two dimensions. The first is the degree to which they emphasize _____________ as opposed to individualism. The second is the degree to which they are ___________ or ___________. These dimensions are interrelated and may share certain characteristics.
Answer:
Collectivism; democratic; totalitarian.
Explanation:
Political systems, the systems of government in nations, differ from country to country. It is important to understand the nature of different political systems and develop an awareness of and appreciation for the significance of national differences. Political systems are assessed according to two dimensions. The first is the degree to which they emphasize collectivism as opposed to individualism. The second is the degree to which they are democratic or totalitarian. These dimensions are interrelated and may share certain characteristics.
Collectivism can be defined as an economical, political or cultural system in which communities (group of people) are generally valued over individuals.
On the other hand, individualism is a sharp contrast to collectivism because it is an economical, political or cultural system in which individuals are generally valued over communities (group of people).
Also, a democratic government is a form of government of the people, by the people and for the people.
Totalitarianism can be defined as a form of centralized government that has an absolute control over the state. Thus, totalitarianism completely prohibits individual freedom, opposing ideologies, principles, political parties, and requires the people to be subservient to the state.
Simply stated, totalitarianism is an autocratic or dictatorial form of government.
Pleaseeeeee helppp!!!!!!!!!!
Answer:
D
Explanation:
They're recruiting people who have the same ideas.
Installment note; amortization schedule [LO14-3]
American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2021. In payment for the $5.3 million machine, American Food Services issued a four-year installment note to be paid in four equal payments at the end of each year. The payments include interest at the rate of 10%.
Required:
1. Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2018.
2. Prepare an amortization schedule for the four-year term of the installment note.
3. Prepare the journal entry for the first installment payment on December 31, 2018.
4. Prepare the journal entry for the third installment payment on December 31, 2020.
5. Prepare an amortization schedule for the four-year term of the installment note.
Answer:
Annuity to be paid:
5,300,000 = Annuity * Present value interest factor of annuity, 10%, 4 years
5,300,000 = Annuity * 3.16986
Annuity = 5,300,000 / 3.16986
= $1,671,995.4950
= $1,671,995
1.
Date Account Title Debit Credit
Jan 1 , 2021 Right of Use Asset $5,300,000
Lease Payable $5,300,000
3.
Date Account Title Debit Credit
Dec 31 , 2021 Interest expense $530,000
Lease Payable $1,141,995
Cash $1,671,995
4.
Date Account Title Debit Credit
Dec 31 , 2023 Interest expense $290,181
Lease Payable $1,381,814
Cash $1,671,995
Question 2 is attached.
A materials requisition slip showed that direct materials requested were $66000 and indirect materials requested were $15000.
The entry to record the transfer of materials from the storeroom is
1. Work In Process Inventory 66000
Manufacturing Overhead 15000
2. Raw Materials Inventory 81000
Work In Process Inventory 66000
3. Raw Materials Inventory 66000
Direct Materials 66000
4. Indirect Materials 15000
Work in Process Inventory 81000
5. Manufacturing Overhead 81000
Raw Materials Inventory 81000
Answer:
Work In Process Inventory $66,000
Manufacturing overhead $15,000
To Raw Materials Inventory $81,000
Explanation:
The journal entry is shown below;
Work In Process Inventory $66,000
Manufacturing overhead $15,000
To Raw Materials Inventory $81,000
(Being the transfer of material is recorded)
here the work in process inventory and manfacturing overhead is debited as it increased the assets and expense and credited the raw material inventory as it reduced the assets