Answer:
b false
Explanation:
pleasure of consumers change as time goes on
With an increase in product advertising of $50 million you expect to increase sales by 10,000 units. If unit grow margin is $4,800, will the additional advertising increase product contribution?
Answer:
Income will decrease by $2,000,000.
Explanation:
Giving the following information:
Advertising increase= $50,000,000
Units increase= 10,000 units
Unit contribution margin= $4,800
To calculate the total effect on income, we need to use the following formula:
Effect on income= total contribution margin - increase in fixed costs
Effect on income= 10,000*4,800 - 50,000,000
Effect on income= $2,000,000 decrease
Income will decrease by $2,000,000.
A company manufactures and sells two products: Product A1 and Product C4. 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 A1 500 2.0 1,000
Product C4 200 1.0 200
Total direct labor-hours 1,200
The direct labor rate is $27.40 per DLH. The direct materials cost per unit is $281 for Product A1 and $267 for Product C4. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated Expected
Activity Cost Pools Activity Measures Overhead Cost Product C1 Product M2 Total
Labor-related DLHs $558,452 7,200 7,700 14,900
Production orders Orders 75,240 500 600 1,100
General factory MHs 886,410 4,400 4,600 9,000
$1,520,102
The total cost per unit of Product C4 under activity-based costing is closest to: ____________
Answer:
Unitary cost= $4,207.85
Explanation:
Giving the following information:
Product C4:
Production= 200 units
Direct labor hours per unit= 1
Total DLH= 200
The direct labor rate is $27.40 per DLH.
The direct materials cost per unit is $267
Activity Cost Pools - Overhead Cost - Product C4 - Total
Labor-related DLHs $558,452 - 7,700 - 14,900
Production orders Orders $75,240 - 600 - 1,100
General factory MHs $886,410 - 4,600 - 9,000
First, we need to calculate the predetermined overhead rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Labor-related= 558,452/14,900= $37.48 per DLH
Production orders= 75,240/1,100= $68.4 per order
General factory= 886,410/9,000= $98.49 per machine hour
Now, we can allocate overhead to C4 as a whole:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Labor-related= 37.48*7,700= $288,596
Production orders= 68.4*600= $41,040
General factory= 98.49*4,600= $453,054
Total= $782,690
Finally, the total cost and cost per unit:
Total cost= 200*267 + 200*27.4 + 782,690
Total cost= $841,570
Unitary cost= 841,570/200= $4,207.85
At a computer-consulting firm, the number of new clients that they have obtained each month has ranged from 0 to 6. the number of new clients has the probability distribution that is shown below. determine the expected number of new clients per month. # of clients probability 0 0.05 1 0.10 2 0.15 3 0.35 4 0.20 5 0.10 6 0.05
Answer:
3.05
Explanation:
The computer consulting firm is analyzing the performance of its company based on new clients each month. The data is given for six months and the probability distribution for number of new clients per month that the company has gained. The probability sum equals to 1 for the six months. The variance distribution is the squared value of each the difference by the mean. values of probability are squared and then their sum is taken to calculate variance deviation.
Imprudential, inc., has an unfunded pension liability of $582 million that mustb be paid in 20 years. To assess the value of the firms stock, financialal analysts to discount the liability back to the present
If the relevant discount rate is 7.5 percent, what is the present value of this liability? (Enter your answer in dollars not in millions, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Present value $137,010,452.17
Explanation:
Calculation for the present value of Imprudential, inc. liability
Using this formula
Present Value = FV / (1 + r)^t
Where,
FV =$582,000,000
=(1 + r)=(1+0.075=1.075)
t=20 Years
Let plug in the formula
Present Value = $582,000,000 / (1.075)^20
Present Value=$582,000,000/4.2478511
Present value= $137,010,452.17
Therefore the present value of Imprudential, inc. liability will be $137,010,452.17
Two investment advisers are comparing performance. One averaged a 21% rate of return and the other a 18% rate of return. However, the beta of the first investor was 1.4, whereas that of the second investor was 1. a. Can you tell which investor was a better selector of individual stocks (aside from the issue of general movements in the market)? First investor Second investor Cannot determine b. If the T-bill rate was 7% and the market return during the period was 13%, which investor would be considered the superior stock selector? Second investor First investor Cannot determine c. What if the T-bill rate was 4% and the market return was 17%? First investor Second investor Cannot determine
Bee Inc. is working on its cash budget for March. The budgeted beginning cash balance is $55,000. Budgeted cash receipts total $139,000 and budgeted cash disbursements total $134,000. The desired ending cash balance is $80,000. To attain its desired ending cash balance for March, the company needs to borrow:
Answer:
$20,000
Explanation:
The computation of the borrowed amount is shown below:
As we know that
Ending cash balance = beginning cash balance + cash receipts - cash disbursements + cash borrowings
$80,000 = $55,000 + $139,000 - $134,000 +cash borrowings
$80,000 = $194,000 - $134,000 + cash borrowings
So, the borrowing is $20,000
Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows.
Sales 80,000 units x 45 per unit $3,600,000
Cost of goods sold
- Beginning inventory $__________0
- Cost of goods manufactured (100,000 units x $25 per unit) $2,500,000
- Cost of good available for sale $2,500,000
Ending inventory (20,000 x 25) $500,000
Cost of goods sold $2,000,000
Gross margin $1,600,000
Selling and administrative expenses $580,000
Net income %1,020,000
a. Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2.25 per unit in variable selling and administrative expenses.
b. The company's product cost of $25 per unit is computed as follows:
Direct materials $4 per unit
Direct labor $11 per unit
Variable overhead $4 per unit
Fixed overhead ($600,000/ $100,000 units) $6 per unit
Required:
Prepare an income statement for the company under variable costing.
Answer:
Income statement for the company under variable costing
Sales (80,000 units x $45) $3,600,000
Less Cost of Sales
Beginning inventory $0
Cost of goods manufactured (100,000 units x $19) $1,900,000
Cost of good available for sale $1,900,000
Less Ending inventory (20,000 x $19) ($380,000) ($1,520,000)
Contribution $2,080,000
Less Period Costs
Fixed Manufacturing Overhead ($600,000)
Selling and administrative expenses - Fixed ($400,000)
Selling and administrative expenses - Variable ($180,000)
Net Income / (loss) $900,000
Explanation:
Under Variable Costing.
1.Product cost = Variable Manufacturing Costs Only
Therefore, Product cost = $4 + $11 + $ 4
= $19
2.Period Cost = Fixed Manufacturing Overheads + Non - Manufacturing Costs
The Oriole Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $100 a night. Operating costs are as follows:
Salaries $7,500 per month
Utilities $1,500 per month
Depreciation $1,300 per month
Maintenance $1,760 per month
Maid service $24 per room
Other costs $46 per room
Determine the inn’s break-even point in number of rented rooms per month.
Answer:
Break-even point in units= 402 rooms a month
Explanation:
Giving the following information:
The inn has 50 rooms that it rents at $100 a night. Operating costs are as follows:
Salaries $7,500 per month
Utilities $1,500 per month
Depreciation $1,300 per month
Maintenance $1,760 per month
Maid service $24 per room
Other costs $46 per room
First, we need to calculate the total fixed costs and the unitary variable cost.
Total fixed costs= salaries + utilities + depreciation + maintenance
Total fixed costs= $12,060
Unitary variable cost= 24 + 46= $70
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 12,060/ (100 - 70)
Break-even point in units= 402 rooms a month
The Cell Inc., a microbiology research laboratory headquartered in the United States, has been losing money. The CEO decides to outsource some production to companies in developing countries. This decision to shift functions or processes to less developed countries is most likely due to their
Answer:
ghjkgg 9ycutzts5a64sts64d6ix74s
The decision of the Ceo of Cell Inc. microbilogy research laboratory to outsource some production in developing countries so that maximum output and fast deliveries can be expected to customers and also by the company can focus on various other factors affecting the business.
What is a research laboratory?The scientific lab where the experiments or products research are made so that new products can be made or existing can be replaced in chemical biological or physical aspects.
What is outsourcing?The practice which is done by an individual or an organization by using third party to carry their business activities like performing tasks giving services to customers etc.
What is third party?The company or an individual which comes in between two aspects and try to manage or solve the issue or give solutions
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Periodic interest rates. You have a savings account in which you leave the funds for one year without adding to or withdrawing from the account. Which would you rather have: a daily compounded rate of 0.050%, a weekly compounded rate of 0.355%, a monthly compounded rate of 1.15%, a quarterly compounded rater of 4.25%, a semiannually compounded rate of 7.5%, or an annually compounded rate of 18%? What is the effective annual rate (EAR) of a daily compounded rate of 0.050%?
Answer:
Choose an annually compounded rate of 18%
The effective annual rate (EAR) of a daily compounded rate of 0.050% is 0.05001%.
Explanation:
We need to find the effective annual rate of interest for each nominal interest and compare this for the different alternatives.
The effective annual rate of interest is the annual rate that if compounded once a year would give us the same result as the same result as the interest per period compounded a number of times a year.
Conversion of Nominal to Effective Interest Rate.
1. A daily compounded rate of 0.050%
Use a financial calculator to enter the data
P/YR = 365
Nominal interest = 0.050%
Thus Effective Interest rate = ? 0.05001%
2. A weekly compounded rate of 0.355%
Use a financial calculator to enter the data
P/YR = 52
Nominal interest = 0.355%
Thus Effective Interest rate = ? 0.3556 %
3. A monthly compounded rate of 1.15%
Use a financial calculator to enter the data
P/YR = 12
Nominal interest = 1.15%
Thus Effective Interest rate = ? 1.1561%
4. A quarterly compounded rater of 4.25%
Use a financial calculator to enter the data
P/YR = 4
Nominal interest = 4.25%
Thus Effective Interest rate = ? 4,32%
5. A semiannually compounded rate of 7.5%
Use a financial calculator to enter the data
P/YR = 2
Nominal interest = 7.5%
Thus Effective Interest rate = ? 7.64%
6. an annually compounded rate of 18%
Use a financial calculator to enter the data
P/YR = 1
Nominal interest = 18%
Thus Effective Interest rate = ? 18%
Conclusion :
Choose the option giving the HIGHEST effective annual rate.
Thu, I would rather have an annually compounded rate of 18%.
P11-45. Statement of Cash Flows (Indirect Method). Artic Company’s income statement and comparative balance sheet follow. ARTIC COMPANY Income Statement For Year Ended December 31, 2019. Sales……………………………………………………………….. $728,000 Cost of goods sold $534,000 Wages expense 190,000 Advertising expense 31,000 Depreciation expense 22,000 Interest expense 18,000 Gain on sale of land (25,000) 770,000 Net loss $ (42,000) ARTIC COMPANY Balance Sheet December 31, 2019 December 31, 2018 Assets Cash……………………………………… 49,000 28,000 Accounts receivable …………. 42,000 50,000 Inventory ……………………………… 107,000 113,000 Prepaid advertising……………….. 10,000 13,000 Property, plant, equipment……. 360,000 222,000 Accumulated depreciation……... (78,000) (56,000) Total assts………………………………. 490,000 370,000 Liabilities and Stockholders’ Equity. Accounts payable……………………….. 17,000 31,000 Interest payable…………………………. 6,000 - Bonds payable……………………………. 200,000 - Common stock………………………….. 245,000 245,000 Retained earnings…………………….. 52,000 94,000 Treasury Sock……………………………. (30,000) - Total liabilities and equity…………. 490,000 370,000 During 2019, Artic sold land for $70,000 cash that had originally cost $45,000. Artic also purchased equipment for cash, acquired treasury stock for cash, and issued bonds payable for cash in 2019. Accounts payable relate to merchandise purchases. Required. a. Compute the change in cash that occurred during 2019 b. Prepare a 2019 statement of cash flows using the indirect method.
Answer and Explanation:
a. The computation of change in cash during 2019 is shown below:-
Change in cash = Cash balance on 31 Dec 2019 - Cash balance on 31 Dec 2018
= $49,000 - $28,000
= $21,000
b. The Preparation of statement of cash flows using the indirect method of 2019 is shown below:-
Artic Company’s
By using the direct method
For the year ended 2019
Particulars Amount
Cash flow from operating activities
Net income/loss ($42,000)
Adjustment to reconcile the net income
Depreciation expenses $22,000
Less: Gain on sales of land ($25,000)
Changes in current assets and current liabilities
Decrease in accounts receivable $8,000
($50,000 - $42,000)
Decrease in Inventory $6,000
($113,000 - $107,000)
Decrease in Prepaid advertising $3,000
($13,000 - $10,000)
Increase in Interest payable $6,000
Less: Decrease in accounts payable ($14,000) $6,000
($31,000 - $17,000)
Net cash provided by operating activities ($36,000)
Cash flow from investing activities
Cash received from sale of land $70,000
Cash paid for equipment ($183,000)
($360,000 - ($222,000 - $45,000)
Cash flow provided by investing activities ($113,000)
Cash flow from financing activities
Cash received from issue of bonds payable $200,000
Cash payment for Treasury stock ($30,000)
Net cash provided by financing activities $170,000
Net Increase (Decrease) in cash $21,000
Cash baalance on 21 Dec 2018 $28,000
Cash balance on 31 Dec 2019 $49,000
The computation of change in cash during 2019 is shown below:-
Change in cash = Cash balance on 31 Dec 2019 - Cash balance on 31 Dec 2018Change in cash = $49,000 - $28,000Change in cash = $21,000Answer B:The Preparation of statement of cash flows using the indirect method of 2019 is shown below:-
Artic Company’s
By using the direct method
For the year ended 2019
Particulars Amount
Cash flow from operating activitiesNet income/loss ($42,000)
Adjustment to reconcile the net income
Depreciation expenses $22,000
Less: Gain on sales of land ($25,000)
Changes in current assets and current liabilities
Decrease in accounts receivable $8,000
($50,000 - $42,000)
Decrease in Inventory $6,000
($113,000 - $107,000)
Decrease in Prepaid advertising $3,000
($13,000 - $10,000)
Increase in Interest payable $6,000
Less: Decrease in accounts payable ($14,000) $6,000
($31,000 - $17,000)
Net cash provided by operating activities ($36,000)
Cash flow from investing activitiesCash received from sale of land $70,000
Cash paid for equipment ($183,000)
($360,000 - ($222,000 - $45,000)
Cash flow provided by investing activities ($113,000)
Cash flow from financing activitiesCash received from issue of bonds payable $200,000
Cash payment for Treasury stock ($30,000)
Net cash provided by financing activities $170,000
Net Increase (Decrease) in cash $21,000
Cash balance on 21 Dec 2018 $28,000
Cash balance on 31 Dec 2019 $49,000
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Answer the question on the basis o the amounts of all nonlabor resources are fixed.
No. of workers Units of output
0 0
1 40
2 90
3 126
4 150
5 165
6 180
Assume that Number of Us Out Diminishing marginal returns become evident with the addition of the:________,
A) sixth worker.
B) fourth worker.
C) third worker.
D) second worker
Answer:
B
Explanation:
Dinmishing marginal returns occurs when as more units of labour is added, marginal output declines.
marginal output is change in total output as more units of labour are employed.
Marginal output = total output 2 - total output 1
total output = number of workers x units of output
All of the following items should be considered when setting an export price
except
A. The tariff rate and value-added tax.
B. Transportation costs.
C. Prices of substitutes in foreign markets.
D. Repatriation restrictions
Answer:
D. Repatriation restrictions should not affect the prices of commoditiesExplanation:
Repatriation has to do with the conversion of foreign currency to home based currency. this is done in a bid to carry out international transaction effectively
while these items affects the prices of export
A. The tariff rate and value-added tax.
B. Transportation costs.
C. Prices of substitutes in foreign markets.
During the last five years, average daily occupancy at Autumn Acres nursing home has slid from 125 to 95 even though Autumn Acres has cut its daily rate from $125 to $115. Do these data suggest that occupancy would have been higher if Autumn Acres had raised its rates? What changes in nonprice demand factors might explain this change? (The supply, or the number of nursing home beds in the area, has not changed during this period.)
Answer:
no
Decline in the number of aged people in the population
The quality of care offered might have declined
Preference to be cared for at home instead of at care home
increase in death rate among the elderly
Explanation:
Even though, there seem to be a positive correlation between the price of daily rates and occupancy. it doesn't imply that increasing the rates would increase occupancy rates. there might be other factors explaining the decline.
some of these factors include :
1. decline in the number of the aged in the population : if the proportion of the aged in the population has reduced, the nursing home would experience a decline in residents
2. if the quality of care received by patients has also reduced, the aged might prefer other nursing homes.
3. there might be a shift in reference. the aged might prefer to be cared for at home by family and friends instead of staying in a nursing home.
Increase in death rate among the elderly : if there is an increase in mortality rate, the care home would experience a decline in occupancy
A company's flexible budget for 13,200 units of production showed sales, $54,120; variable costs, $21,120; and fixed costs, $18,000. The operating income expected if the company produces and sells 19,600 units is:
Answer:
Net income= $31,000
Explanation:
Giving the following information:
Production= 13,200
Sales= 54,120
Variable costs= $21,120
Fixed costs= $18,000
First, we need to calculate the unitary contribution margin:
Unitary contribution margin= total contribution margin/number of units
Unitary contribution margin= (54,120 - 21,120) / 13,200
Unitary contribution margin= $2.5
Now, for 19,600 units:
Total contribution margin= 2.5*19,600= 49,000
Fixed costs= (18,000)
Net income= 31,000
International trade promotes economic growth when it allows any two countries to grow (in their combined production) beyond (above) their pre-trade production possibilities curve (PPC).
a. True
b. False
Answer: True
Explanation:
The Production Possibilities Curve (PPC) is meant to illustrate how a country produces goods and services given the limited resources it has. The curve represents the various amounts that have to be traded off of 2 goods to produce more or less of one good.
The Curve shows that it is best that a country produces those goods that is good at producing so that it can produce more of it and then trade with the rest of the world for the goods it isn't too efficient at producing. If both countries involved in the trade are able to grow beyond (above) their pre-trade production possibilities curve then the trade would have promoted economic growth.
Which of the following business combinations is a vertical integration? A. The corner gas station buys the competitor across the street and shuts them down to increase its own market share. B. The corner gas station and the competitor across the street agree to set their prices at the same level. C. The corner gas station acquires the gasoline distributor to ensure they can get gas in times of shortages. D. The corner gas station starts selling fireworks during December/January and June/July.
Answer:
C. The corner gas station acquires the gasoline distributor to ensure they can get gas in times of shortages.
Explanation:
Vertical integration is the situation where the same company owns both the sources of supply and the distribution (retail) outlets. The description of (C) matches this definition.
Petra Company uses standard costs for cost control and internal reporting. Fixed costs are budgeted at $36,000 per month at a normal operating level of 10,000 units of production output. During October, actual fixed costs were $40,000 and actual production output was 12,000 units.
Required:
a. Determine the fixed overhead budget variance.
b. Assume that the company applied fixed overhead to production on a per-unit basis. Determine the fixed overhead volume variance.
Answer: tough
Explanation:
g A constraint to complicated macroeconomic models has been: Group of answer choices that firms do not maximize profits. that agents are not rational. that economists have run out of ideas. a lack of computing power. an insufficient understanding of statistics.
Answer:
a lack of computing power.
Explanation:
Consider Figure 9.2 on page 205 of our textbook. Suppose P0 is $10 and P1 is $11. Suppose a new firm with the same LRAC curve as the incumbent tries to break into the market by selling 4,000 units of output. Estimate from the graph what the new firm's average cost of producing output would be. If the incumbent continues to produce 6,000 units, how much output would be supplied to the market by the two firms? Estimate what would happen to the market price as a result of the supply of both the incumbent firm and the new entrant. Approximately how much profit would each firm earn ?
Answer:
The 10,000 units of output that will be supplied by the two firms to the market.
Profit that each firm would earn will be higher than previous.
Explanation:
The firm selling 4,000 units at the price of $10 per unit. If the output is increased to 6,000 units the price will increase to $11 per unit. If the new 6,000 units are produced along with the previous 4,000 units then the total output supplied by the two firms will be 10,000 units (6,000 + 4,000). The supply of goods in the market will increase so price will fall and the revenue for the firms will decline but they can benefit with sales volume and their profit can increase.
The 10,000 units of output will be supplied by the two firms to the market.
The profit that each firm would earn will be higher than the previous.
Calculation of the number of units and profits:Here the firm sells 4,000 units at the price of $10 per unit. And, in the case when the output is increased to 6,000 units the price will increase to $11 per unit.
And, In the case when the new 6,000 units are produced along with the previous 4,000 units so the total output supplied by the two firms will be 10,000 units.
The supply of goods in the market should increase due to which the price will fall and the revenue for the firms will decline however they can benefit with sales volume and their profit can increase.
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From studying Geert Hofstede’s cultural dimensions, what differences exist between the United States and Brazil that may be relevant to your communication? 2. How can you use words to relate to each audience? 3. What images will you use for each audience?
Answer:
what differences exist between the United States and Brazil that may be relevant to your communication?
Using Geert Hofstede's cultural dimensions as a framework, we can determine that the United States is higher on individualism while Brazil is higher on collectivism.
The United States is also higher on restraint, while Brazil is higher on indulgence.
2. How can you use words to relate to each audience?
For the United States, you should use words that motivate individuals. For Brazil, you should words that motivate collective groups.
3. What images will you use for each audience?
Again, for the United States, you should use images that represent individualistic cultural values, while the opposite should be used for Brazil: picture that represent more collectivist cultural values.
From past records it is known that 10% of items from a production line are defective. If two items are selected at random, what is the probability that only one is defective?
Answer:
0.2
Explanation:
The Probability distribution is the function which describes the likelihood of possible values assuming a random variable. The 10% of the items from the production line are assumed to be defective. There is a sample selection of 2 items. The probability that one of the item among the selected sample of two items is found defective is 0.2 (2 items sample *10%)
Santana Mortgage Company uses a process cost system to accumulate costs in its Application Department. When an application is completed, it is forwarded to the Loan Department for final processing. The following processing and cost data pertain to September.
1. Applications in process on September 1, 170
2. Applications started in September, 930
3. Completed applications during September, 660
4. Applications still in process at September 30 were 100% complete as to materials (forms) and 60% complete as to conversion costs.
Beginning WIP:
Direct materials $1,310
Conversion costs 4,140
September costs:
Direct materials $5,114
Direct labor 12,820
Overhead 7,581
Materials are the forms used in the application process, and these costs are incurred at the beginning of the process. Conversion costs are incurred uniformly during the process.
Required:
a. Determine the equivalent units of service (production) for materials and conversion costs.
b. Compute the unit costs and prepare a cost reconciliation schedule.
Answer: a) The equivalent units for material = 1,100
The equivalent units for conversion cost = 924.
b) The unit cost for material and conversion cost is $5.84 and $26.56 respectively.
c) cost reconciliation schedule is in the explanation column
Explanation:
first , we calculate units in process
Units in Process = Units of applications Opened + units of application started - units of application completed
= 170 + 930 - 660 = 440 units
Equivalent units of production for materials =application units completed + Application units in process x its percentage complete
660 + (440 x 100%)=660+440= 1,100
Equivalent units of production for conversion = application units completed + Application units in process x its percentage complete
660 + (440 x 60%)=660+264=924
Computing the unit costs
Units of cost as per material
Number of application units during the month = 660units
Wor in process unit = 440units
Material cost during ,month -=$5,114
Beginning work in progress cost for materials =$1,310
Equivalent unts of production for materials = 1,100
Unit cost for material = Material cost during the month +Begining work in progress cost for materials/Equivalent units of production for materials = $5,114 + $1,310=$6,424/ 1100= $5.84
Units of cost as per conversion
Number of application units during the month = 660units
Work in progess unit = 440units
conversion cost during ,month -= direct labour + overhead = $12,820 + $7,581= $20, 401
Beginning work in progress cost for materials =$4,140
Equivalent unts of production for materials = 924
Unit cost = Material cost during the month +Beginning work in progress cost for materials/Equivalent units of production for materials = $20,401 + 4,140=$24,541 / 924= $26.56
Cost Reconciliation schedule
Particulars no of units materials conversion Total
units transferred 660 $5,114 $20,401 $25,515
ending WIP 440 $6,424 $24, 541 $30,965
Total $11,538 $44,942 $56,480
__________________ are ways that a nation can draw up regulations, inspections, and paperwork to make it more costly or difficult to import products.
Answer: Nontariff barriers
Explanation:
Nontariff barriers are trade barriers that are used whereby the import and export of goods and services are restricted. It should be noted that the restriction is not by tariffs but can include include embargoeds, quotas, sanctions, and levies.
The main reason for trade barriers are to generate revenue for the government and also to protect the local industries.
On January 1, 2020, the Oriole Company had $2,990,000 of $10 par value common stock outstanding that was issued at par and Retained Earnings of $1,150,000. The company issued 146,000 shares of common stock at $16 per share on July 1. On December 15, the board of directors declared a 10% stock dividend to stockholders of record on December 31, 2020, payable on January 15, 2021. The market value of Oriole Company stock was $17 per share on December 15 and $17 per share on December 31. Net income for 2020 was $580,000.
Required:
Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15.
Answer:
Oriole Company
Journal Entries:
July 1:
Debit Cash Account $2,336,000
Credit Common Stock $1,460,000
Credit Paid-in In Excess of Common Stock $876,000
To record the issuance of 146,000 shares of common stock, par $10 at $16 per share.
December 15:
Debit Retained Earnings $445,000
Stock Dividends Payable $445,000
To record the declaration of a 10% stock dividend.
Explanation:
a) Stockholders of record on December 31, 2020:
Number of shares in issue at beginning 299,000
Number of shares issued on July 1 146,000
Total 445,000
10% of 445,000 = 44,500 shares
b) Stock Dividends declared on December 15 will result to the issuance of 44,500 shares to stockholders. To finance this stock dividend, the Retained Earnings account is debited while the Stock Dividends Payable is credited. When the shares are issued on January 15, the Stock Dividends Payable (Distributable) will be debited and the Common Stock credited with the par value. The market price of $17 does not affect the company's records.
On December 31, 2021, Larry's Used Cars had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $66,000 and $900, respectively. During 2022, Larry's wrote off $2,275 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $5,500 at December 31, 2022. Bad debt expense for 2022 would be:
Answer:Bad debts expense = $6,875
Explanation:
A bad debt expense is recognized when a customer cannot pay its financial obligations therefore the account receivable will no longer be collectible
Beginning uncollectible accounts= $900
Ending allowance for uncollectible accounts = $5,500
Amounts written off = $2,275
Ending allowance for uncollectible accounts =Begining uncollectible accounts + current bad debts expense - amounts written off in 2022
$5,500= $900 + bad debts expense - $2,275
current bad debts expense for 2022= $5,500 - $900 + $2,275 = $6,875
Can also be illustrated as
ACCOUNTS
Begining uncollectible accounts $900
Amounts written off (less) - $2,275
Bad debts expense(add) + $6,875
Ending allowance for uncollectible accounts $5,500
he financial manager at Starbuck Industries is considering an investment that requires an initial outlay of $24,000 and is expected to produce cash inflows of $1,000 at the end of year 1, $5,000 at the end of years 2 and 3, $14,000 at the end of year 4, $9,000 at the end of year 5, and $7,000 at the end of year 6. a. Select the time line option that represents the cash flows associated with Starbuck Industries' proposed investment. b. Which of the approaches—future value or present value—do financial managers rely on most often for decision making? Why?
Answer:
Please check the attached image for the timeline image.
present value. this is because in making the decision of whether to carry out a project, the decision is made at the beginning of of the project and not in the future. so it is important to determine the present value to know if the project is profitable and should be carried out.
Explanation:
Timeline is arranges a series of events in chronological order. cash inflows are recorded as positive while cash outflows have a negative sign in front of the amount.
present value is the sum of discounted cash flows
A copy machine acquired on July 1 with a cost of $1,450 has an estimated useful life of four years. Assuming that it will have a residual value of $250, determine the depreciation for the first year by the double-declining-balance method.
Answer:
Annual depreciation= $300
Explanation:
Giving the following information:
Purchasing price= $1,450
Salvage value= $250
Useful life= 4 years
First, we need to determine the annual depreciation for the whole year using the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= 2*[(1,450 - 250) / 4]
Annual depreciation= $600
Now, for 6 months:
Annual depreciation= (600/12)*6= $300
You purchase a bond with an invoice price of $1,410. The bond has a coupon rate of 6.8 percent, and there are 3 months to the next semiannual coupon date. What is the clean price of the bond? Assume a par value of $1,000.
Answer:
clean price = $1,393
Explanation:
The clean price of the bond does not include any accrued interests. The invoice price = clean price + accrued interests
invoice price = $1,410accrued interests = $1,000 x 0.068 x 3/12 = $17clean price = invoice price - accrued interests = $1,410 - $17 = $1,393
The common stock of Auto Deliveries currently sells for $28.99 a share. The stock is expected to pay an annual dividend of $1.34 per share next year. The firm has established a pattern of increasing its dividends by 4 percent annually and expects to continue doing so. The estimated market rate of return on this stock is _______ percent.
Answer:
8.62%
Explanation:
The common stock of Auto deliveries currently sells for $28.99 per share
The stock is expected to pay a dividend of $1.34
The growth rate is 4%
= 4/100
= 0.04
Therefore, the market rate of return on the stock can be calculated as follows
Market rate= dividend/stock price + growth rate
= $1.34/$28.99 + 0.04
= 0.04622+0.04
= 0.0862×100
= 8.62%
Hence the estimated market rate of return on the stock is 8.62%