Answer:
Required A.
Focault Inc.
Income Statement For the Month Ended July 31
Revenues $1,120,000
Cost of Goods Sold ($630,000)
Gross Profit $ 490,000
Selling and administrative expenses:
Selling Expenses ($252,800)
Administrative Expenses ($100,000)
Income from Operations $137,2000
Required B
Materials inventory, July 31 = $45,000
Work in process inventory, July 31 = $36,000
Finished goods inventory, July 31 = $22,000
Explanation:
Raw Materials T - Account
Debit :
Purchases $320,000
Totals $320,000
Credit:
Used in Production $275,000
Ending Balance $45,000
Totals $320,000
Manufacturing Cost Schedule
Raw Materials $275,000
Direct labor $236,000
Overheads ($236,000 × 75%) $177,000
Total Manufacturing Cost $688,000
Less Cost Transferred to Finished Goods ($652,000)
Ending Work In Process $36,000
Finished Goods T - Account
Debit :
Cost of Goods Manufactured $652,000
Totals $652,000
Credit :
Trading Account : Cost of Sales ($630,000)
Ending Balance $22,000
Totals $652,000
"A customer places an order with a registered representative to sell 5,000,000 shares of ABC stock (NYSE listed) "at the market." The registered representative should:"
Answer:
Contact the firm's large block trading desk.
Explanation:
The reason why the registered representative would contact the firm's large block trading desk is because the order is larger than what can be handled normally on the Newyork Stock Exchange (NYSE) floor. Where large order as in the above is to be sold on the stock exchange floor, such would normally be presented to the firm's large block trading desk who will now decide on how best to handle the order; hence not the duty of registered representative.
Based on past experience, the trade desk would likely hand over the order to one of ABC's stock brokers for execution because for example, Super Display Book - NYSE automated system, which is responsible for dealing NYSE listed issues, has certain limited orders they can take.
The better-off test for evaluating whether a particular diversification move is likely to generate added value for shareholders involves determining whether the proposed diversification move Group of answer choices provides the company with additional resource strengths. provides additional ways to build the entrepreneurial skills of the company's senior managers. spreads stockholders' risks across a greater number of lines of business. has competitively valuable value chain match-ups with the company's present businesses such that its businesses can perform better together than apart. has good potential for increasing the company's rate of return on invested capital.
Answer: Has competitively valuable value chain match-ups with the company's present businesses such that its businesses can perform better together than apart.
Explanation:
The better-off test of diversification is that the company must gain a return that is higher than incremental growth. Incremental growth is usually defined a 1 + 1 = 2 formula and this test argues that Diversification must provide more than this such that the company achieves synergistic growth ( 1 + 1 = 3) which is what happens when different entities work better together than alone.
Diversification should therefore be into an area that will be able to match-up with the company's present businesses such that its businesses can perform better together than apart and produce even greater returns.
A local finance company quotes an interest rate of 19.9 percent on one-year loans. So, if you borrow $48,000, the interest for the year will be $9,552. Because you must repay a total of $57,552 in one year, the finance company requires you to pay $57,552/12, or $4,796.00 per month over the next 12 months.
Required:
a. What rate would legally have to be quoted?
b. What is the effective annual rate?
Answer:
a. What rate would legally have to be quoted?
banks are required to quote the APR, which in this case is 19.9%b. What is the effective annual rate?
22.1%Explanation:
Annual percentage rate (APR) = [($9,552 / $48,000) / 365] x 365 x 100 = 19.9%
In this case, you should only divide $9,552 / $48,000 and then multiply by 100 since the loan only lasts one year.
effective annual rate = (1 + 0.199/365)³⁶⁵ - 1 = 0.2201 = 22.1%
The Book of Mormon is one of the biggest musical hits on Broadway. It has received many awards including Tony and Grammy Awards. According to Wikipedia, "High attendance coupled with aggressive pricing allowed the financial backers to recoup their investment of $11.4 million after just nine months of performances." While the highest ticket price was $477, the average price is $170. What is the variable cost per ticket
Answer:
variable cost per ticket = $129.60
Explanation:
some information is missing and I looked it up:
30 performances per month
1,100 seats in the theater and 95% occupancy rate
number of tickets sold during the first 9 months = 30 x 9 x 1,100 x 0.95 = 282,150 tickets
total revenue during the first 9 months = 282,150 x $170 = $47,965,500
variable costs = total revenue - fixed costs = $47,965,500 - $11,400,000 = $36,565,500
variable cost per ticket = $36,565,500 / 282,150 tickets = $129.5959 ≈ $129.60
railway cabooses justpaid its annual sividend of $1.70 per share. The company has been reducing the dividends by 11.3 percent each year. how much are you willing to pay today to purchase stock in this company if your required rate of return is 12 percent?
Answer:
$6.47
Explanation:
The computation of the current price of the stock is shown below:
= {Current Dividend x [1 + (Dividend Growth)} ÷ [Required rate of Return - (Dividend growth)]
= {$1.70 × [1 + (- 0.113)]} ÷ [0.12 - (- 0.113)]
= $1.5079 ÷ 0.233
= $6.47
hence, the current price of the stock valued today is $6.47 i.e come by applying the above formula
A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $240,000, and the following quantities of product and sales revenues were produced.
Product Pounds Price per Pound
Feed 100,000 $0.70
Flour 50,000 2.20
Starch 20,000 1.00
How much of the $240,000 cost should be allocated to feed?
a. $24,500.
b. $84,000.
c. $90,000.
d. $70,000.
e. $200,000.
Answer:
$84,000
Explanation:
A granny allocates the costs of unprocessed wheat to production of feed, flour and starch
The unprocessed wheat was bought at the price of $240,000
The first step is to calculate the total amount of the products(feed, flour and starch)
Feed= 100,000×0.70= 70,000
Flour= 50,000×2.0= 110,000
Starch= 20,000×1.0= 20,000
Total cost= 70,000+110,000+20,000
= $200,000
Therefore, the amount that should be allocated to the feed can be calculated as follows
= $70,000/$200,000×$240,000
= 0.35×$240,000
= $84,000
Hence the cost that should be allocated to the feed is $84,000
What is the proper preparation sequencing of the following budgets? 1. Budgeted Balance Sheet 2. Sales Budget 3. Selling and Administrative Budget 4. Budgeted Income Statement
Answer:
1. Sales Budget
2. Selling and Administrative Budget
3. Budgeted Income Statement
4. Budgeted Balance Sheet
Explanation:
First of all the sales budget is prepared in which expected sales are shown and then the selling and administrative budget is prepared which shows expenses related to sale.
The income statement budget is prepared which shows the expected income.
Then at last Budgeted Balance Sheet is prepared in which the expected income is transferred.
The order in which they appear is as follows.
1. Sales Budget
2. Selling and Administrative Budget
3. Budgeted Income Statement
4. Budgeted Balance Sheet
The proper preparation sequencing of the budgets includes the Sales Budget, Selling and Administrative Budget, Budgeted Income Statement, and Budgeted Balance Sheet respectively.
The preparation of budgeted statement by business helps them to know how to expend funds in the future and plan for changes as well.
The proper preparation sequencing of the budgets includes:
Sales budget which are prepared to estimate the sales and revenue expected for the periodThe Selling and administrative budget is prepared estimate the cost of operationThe Budgeted Income Statement is prepared like the Conventional Income statement.The Budgeted Balance Sheet is prepared like the Conventional Balance sheet.Learn more about this here
brainly.com/question/17118734
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations:
Variable costs per unit:
Manufacturing:
Direct materials $14
Direct labor $5
Variable manufacturing overhead $1
Variable selling and administrative $1
Fixed costs per year:
Fixed manufacturing overhead $264,000
Fixed selling and administrative $ 174,000
During the year, the company produced 33,000 units and sold 15,000 units. The selling price of the company’s product is $52 per unit.
Required:
1. Assume that the company uses absorption costing:
a. Compute the unit product cost.
b. Prepare an income statement for the year.
2. Assume that the company uses variable costing:
a. Compute the unit product cost.
b. Prepare an income statement for the year.
Answer:
1a. $28
1b. Income statement for the year Absorption Costing
Sales (15,000 units × $52) $780,000
Less Cost of Sales
Opening Stock $0
Add Cost of Goods Manufactured $924,000
Less Closing Inventory ($504,000) $420,000
Gross Profit $360,000
Less Expenses :
Selling and administrative Expenses :
Variable ($1 × 15,000 units) ($15,000)
Fixed ($ 174,000)
Net Income/ (Loss) $171,000
2a. $20
2b. Income statement for the year Variable Costing
Sales (15,000 units × $52) $780,000
Less Cost of Sales
Opening Stock $0
Add Cost of Goods Manufactured $660,000
Less Closing Inventory ($360,000) ($300,000)
Gross Profit $480,000
Less Expenses :
Selling and administrative Expenses :
Fixed manufacturing overhead ($264,000)
Variable ($1 × 15,000 units) ($15,000)
Fixed ($ 174,000)
Net Income/ (Loss) $27,000
Explanation:
Absorption Costing :
Unit product cost = all manufacturing costs (fixed and variable)
= $14 + $5 + $1 + ($264,000 / 33,000)
= $28
Cost of Goods Manufactured = 33,000 units × $28
= $924,000
Closing Inventory = 18,000 units × $28
= $504,000
Variable Costing :
Unit product cost = variable manufacturing costs
= $14 + $5 + $1
= $20
Cost of Goods Manufactured = 33,000 units × $20
= $660,000
Closing Inventory = 18,000 units × $20
= $360,000
how does being mindful of your strengths, skills, weaknesses, and potential challenges or obstacles impact your personal, academic, and professional growth?
Explanation:
It’s not unusual for people to compare themselves with others around them, and to feel superior or inferior towards them based on their strengths and their weaknesses.
The thing is, every individual is different and we all function differently based on our personalities. It is important to know yourself and your capacities.
Your strengths are things you can leverage on, things you can use to push yourself further.
On the other hand, your weaknesses are not your downfall. These are areas you need to improve on. It is not something you lack. It is something you need to develop and build.
In order to leverage your strengths and improve on your weaknesses, you first need to know them.
Answer:
Being mindful of my strengths, skills, and potential obstacles can significantly impact my personal, academic, and professional growth. When I am aware of my strengths, I can rely on them to complete tasks, sort of like leverage. They are also things that will help push me further in whatever aspect of life. Knowing my skills will also benefit me by knowing when to use them in certain situations. Learning my skills is also essential to understand when knowing when and how to use them. Also, when I am aware of my obstacles or challenges, it will help me find a way to avoid them or find a better way to accomplish something. It is also something that I know I need to work on and become better at, and without being aware of first, I wouldn’t be able to do that. When I am aware of how I function, it makes it easier for me to achieve my goals. I wouldn’t be able to grow in my personal, academic, or professional life if I wasn’t aware of those things. A saying that I learned throughout my recovery was “ to be aware is to be alive.” It is essential to know my benefits and downfalls within myself to be able to grow and become better in all areas of my life.
Explanation:
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
Jackie notices everyone wearing Converse sneakers on the first day of school. Ever the fashionista, this will likely affect: Multiple Choice Jackie's income, as she now needs to buy Converse and will have less to spend on other goods. Jackie's preferences for shoes, since she feels as though she needs them now. Jackie's expectations of future prices, since the price of Converse will likely go up because they're getting so popular. the prices of related goods, since other shoes will be less popular and cost less now.
Answer:
Jackie's income, as she now needs to buy Converse and will have less to spend on other goods.
Explanation:
Jackie is a fashionista and so she would respond to trends. Since everyone around her is wearing converse, she would want to wear converses too. so her income would be affected as it would be reduced as she would buy the converse.
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
Bardell, Inc. prepared its statement of cash flows for the year. The following information is taken from that statement: Net cash provided by operating activities $ 30,500 Net cash provided by investing activities 5,800 Cash balance, beginning of year 7,400 Cash balance, end of year 12,300 What is the amount of net cash provided by (used in) financing activities?
Answer:
the a nswwr rwo uld be7 6879
Explanation:
Patty Corporation holds 75 percent of Slider Corporation's voting common stock, acquired at book value. The fair value of the noncontrolling interest at the date of acquisition was equal to 25 percent of the book value of Slider Corporation. On December 31, 20X8, Slider Corporation acquired 25 percent of Janet Corporation's stock. Slider records dividends received from Janet as nonoperating income. In 20X9, Janet reported operating income of $100,000 and paid dividends of $40,000. During the same year, Slider reported operating income of $75,000 and paid $20,000 in dividends.
1) Based on the information provided, what amount will be reported as consolidated net income for 20X9 under the treasury stock method?
a. $150,000
b. $100,000
c. $75,000
d. $175,000
2) Based on the information provided, what amount will be reported as income assigned to the controlling interest for 20X9 under the treasury stock method?
a. $18,750
b. $156,250
c. $175,000
d. $100,000
Answer:
1) d. $175,000
2) b. $156,250
Explanation:
1. The computation of net income for 20X9 under the treasury stock method is shown below:-
Net income for 20X9 under the treasury stock method = Janet Operating income + Slider operating income
= $100,000 + $75,000
= $175,000
2. The computation of income assigned to the controlling interest for 20X9 is shown below:-
income assigned to the controlling interest for 20X9 = Janet Operating income + (Slider operating income × Remaining percentage)
= $100,000 + ($75,000 × 75%)
= $100,000 + $56,250
= $156,250
Therefore we have applied the above formulas.
Scenario: Your direct supervisor is interested in a project you are currently working on, and they have asked to increase the scope to increase the department's goals. How would you respond if your supervisor was not the project sponsor?
Scenario: Your direct supervisor is interested in a project you are currently working on, and they have asked to increase the scope to increase the department's goals. How would you respond if your supervisor was not the project sponsor?
ANSWER:
Take down his/her suggestions. The first thing is to show respect. Accept thoughts and contributions towards that project. Most times a project "sponsor" is not someone who is a professional in the field or discipline that the project is about.
If your direct supervisor has the idea of increasing the scope of the project, take note of his/her reasons and if they will truly bring the achievement of more departmental goals, then relay the idea of expansion to the project sponsor.
Answer:
At this point, the important thing is to remain calm and in control. Your supervisor, like everyone else, is likely to get confused and blame people for things that are not their fault, or even find fault that does not exist.
In that case, you should wait for him to finish speaking, ask for permission to speak and explain how you did your job and show how your supervisor is wrong about the conclusion he made. This must be done calmly and politely, always maintaining respect.
Explanation:
PROBLEM 1:
Equipment A Equipment B
cost $100,000 $63,000
Accumulated depreciation(1/1) $ 42,000 $36,000
Useful life 8 years 5 years
Depreciation method straight line straight line
Date sold 7/1/12 9/1/12
Sales price $ 39,000 $ 20,000
Journalize all entries required to update deprecition and record thesales of the two assets in 2012.accumulated depreciation includes depreciation recorded through 12/31/11.
Answer:
Equipment A
Journal Entry - update depreciation
Depreciation expense $6,250 (debit)
Accumulated depreciation $6,250 (credit)
Journal Entry - to record the sale
Accumulated depreciation ($ 42,000 + $6,250) $48,250 (debit)
Cash $ 39,000 (debit)
Profit and Loss $12,750 (debit)
Equipment $100,000 (credit)
Equipment B
Journal Entry - update depreciation
Depreciation expense $6,300 (debit)
Accumulated depreciation $6,300 (credit)
Journal Entry - to record the sale
Accumulated depreciation ($36,000 + $6,300) $42,300 (debit)
Cash $ 20,000 (debit)
Profit and Loss $700 (debit)
Equipment $63,000 (credit)
Explanation:
Straight line method charges a fixed amount of depreciation for the time the asset is in use in the business.
Depreciation Expense = (Cost - Residual Value) / Estimated Useful Life
Equipment A
Depreciation Expense = $100,000 / 8 years
= $12,500
Depreciation Expense for 2012 = $12,500 × 6/12
= $6,250
Journal Entry - update depreciation
Depreciation expense $6,250 (debit)
Accumulated depreciation $6,250 (credit)
Journal Entry - to record the sale
Accumulated depreciation ($ 42,000 + $6,250) $48,250 (debit)
Cash $ 39,000 (debit)
Profit and Loss $12,750 (debit)
Equipment $100,000 (credit)
Equipment B
Depreciation Expense = $63,000 / 5 years
= $12,600
Depreciation Expense for 2012 = $12,600 × 6/12
= $6,300
Journal Entry - update depreciation
Depreciation expense $6,300 (debit)
Accumulated depreciation $6,300 (credit)
Journal Entry - to record the sale
Accumulated depreciation ($36,000 + $6,300) $42,300 (debit)
Cash $ 20,000 (debit)
Profit and Loss $700 (debit)
Equipment $63,000 (credit)
Consider a team that you are familiar with - either by being a member of the team, a team leader, or a bystander. What were the team's goals?
Answer:
• To ensure that there is no income leakage whatsoever
• Ensure that there is no customer complaint made to the company's executives
• Early closure not later than 5pm daily, Monday to Friday
• Ensure customer survey ratings of at least 8.0
• Drive paperless environment.
• Daily reconciliation of the bank's transit accounts.
Explanation:
I used to belong to a team called settlement and reconciliation , which is under operations support, business banking in one of the top financial institution.
The goals are as listed above. For instance as a settlement and reconciliation team, you must ensure accurate settlement of all merchants such that none would receive excess settlement s which could deplete the bank's income. Also, there must be no customer complaint escalated to the bank's executives hence team must promptly resolve all queries and complaint.
Another goal is to drive early closure. No member of staff must remain in the office after 5pm unless permission is obtained to deal urgent transaction. Each year, the bank conducts internal survey among departments to know how well we treat our internal and external stakeholders. The least score approved for my team is 8.0 out of 10 , which must be met.
Again, one of the goals of the bank is paperless drive which was included in each team or unit's goals. We support the drive for paperless transactions by suggesting means to consummate transactions without printing. We must also ensure daily and timely reconciliation of all our transit accounts in order to ensure that no idle fund is sitting in there.
Listed below are year-end account balances (in $millions) taken from the records of Symphony Stores. Debit Credit Accounts receivable-trade 694 Building and equipment 924 Cash-checking 38 Interest receivable 40 Inventory 21 Land 166 Notes receivable (long-term) 496 Petty cash fund 8 Prepaid rent 35 Supplies 12 Trademark 45 Accounts payable-trade 642 Accumulated depreciation 77 Additional paid-in capital 468 Allowance for uncollectible accounts 19 Cash dividends payable 24 Common stock, at par 11 Income tax payable 63 Notes payable (long-term) 836 Retained earnings 306 Deferred revenues 33 TOTALS 2,479 2,479 What would Symphony report as total shareholders' equity?
Answer:
Symphony would report $ 785 million as total shareholders' equity
Explanation:
Use the Balance Sheet to find the total shareholders' equity as Follows :
Assets
Non-Current Assets
Building and equipment 924
Land 166
Notes receivable (long-term) 496
Trademark 45
Accumulated depreciation (77)
Total Non-current assets 1,554
Current Assets
Accounts receivable-trade 694
Allowance for uncollectible accounts (19)
Petty cash fund 8
Prepaid rent 35
Supplies 12
Cash-checking 38
Interest receivable 40
Inventory 21
Total Current Assets 829
Total Assets 2,383
Equity and Liabilities
Equity (Balancing figure) 785
Total Equity 785
Non - Current Liabilities
Notes payable (long-term) 836
Total Non - Current Liabilities 836
Current Liabilities
Accounts payable-trade 642
Cash dividends payable 24
Income tax payable 63
Deferred revenues 33
Total Current Liabilities 762
Total Equity and Liabilities 2,383
Conclusion :
Symphony would report $ 785 million as total shareholders' equity
Harpeth Valley Water District has a bond outstanding with a coupon rate of 3.63 percent and semiannual payments. The bond matures in 23 years, with a yield to maturity of 4.17 percent, and a par value of $5,000. What is the market price of the bond
Answer:
Market price of Bond = $4603.116669 rounded off to $4603.12
Explanation:
To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 5000 * 0.0363 * 1/2 = $90.75
Total periods (n)= 23 * 2 = 46
r = 4.17% * 1/2 = 2.085% or 0.02085
The formula to calculate the price of the bonds today is attached.
Bond Price = 90.75 * [( 1 - (1+0.02085)^-46) / 0.02085] + 5000 / (1+0.02085)^46
Bond Price = $4603.116669 rounded off to $4603.12
Chester Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic initiatives. How much will the company pay in separation costs if each worker receives $5,000 when separated?
Answer:
$293,500
Explanation:
The computation of the amount pay in separation cost is shown below:
As there are 587 employees
but 10% are downsized
So, separation cost is
= Current employees × downsized percentage × received amount by workers
= 587 employees × 10% × $5,000
= $293,500
We simply applied the above formula so that the amount pay by the company with respect to the separation cost could arrive
Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pool Activity Rate Setting up batches $ 59.56 per batch Processing customer orders $ 72.96 per customer order Assembling products $ 4.25 per assembly hour Data concerning two products appear below: Product K91B Product F65O Number of batches 89 60 Number of customer orders 39 53 Number of assembly hours 493 900 How much overhead cost would be assigned to Product K91B using the activity-based costing system?
Answer:
$10,241.53
Explanation:
Using the activity-based costing system, Overhead cost for Product K91B would be?
Setting up batches 89 batches x $59.56= $5300.84
Processing customer orders 39 orders x $72.96= $2,845.44
Assembling products 493 hours x $4.25= $2,095.25
Total Overhead cost $10,241.53
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%.
Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.30 Direct labor $ 3.30 Variable manufacturing overhead $ 1.25 Fixed manufacturing overhead $ 15,000 Sales commissions $ 1.30 Variable administrative expense $ 0.60 Fixed selling and administrative expense $ 4,200 If 7,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
Answer:
Total indirect manufacturing cost= $23,750
Explanation:
Giving the following information:
Variable manufacturing overhead $1.25
Fixed manufacturing overhead $ 15,000
Production= 7,000 units are produced
The indirect manufacturing cost is the sum of the total fixed overhead and total variable cost:
Total indirect manufacturing cost= 15,000 + 7,000*1.25
Total indirect manufacturing cost= $23,750
You want employees to know that they can talk to retirement planning specialists. Which of the following statements is most likely persuasive to the most employees?
a) Make your financial dreams come true. Talk one-on-one with our expert retirement planners to decide which retirement packages make the most sense for you.
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In early January, Burger Mania acquired 100% of the common stock of the Crispy Taco restaurant chain. The purchase price allocation included the following items: $7 million, patent; $5 million, trademark considered to have an indefinite useful life; and $9 million, goodwill. Burger Mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life.
Required:
What is the total amount of amortization expense that would appear in Burger Mania's income statement for the first year ended December 31 related to these items?
Answer:
$1,400,000 per year
Explanation:
DATA
Patent = 7 million with 5years useful life
Trademark = 5 million with an indefinite life
Goodwill = 9million
Amortization =?
Solution
Amortization of patent = Patent Value/ Useful life
Amortization of patent = $7,000,000/5
Amortization of patent = $1,400,000 per year
NOTE: Trademark and goodwill will not be amortized as they have an indefinite useful life. Both Intangible assets will be tested for impairment instead.
Since stock prices will shift in response to unpredictable future news, these prices will tend to follow what mathematicians call _________________.
Answer:
a random walk with a trend
Explanation:
This model assumes that in each period the stock prices would take a random step away from what was its previous value.
Stock prices cannot be predicted therefore they are a random walk. Future prices cannot be predicted by what used to be the prices in the past. Stock prices change in response to unpredictable future news, hence they follow a random walk with a trend.
Automobile bumpers590 810 Valve covers310 570 Wheels350 620 1,250 2,000 Plating Department Automobile bumpers195 1,150 Valve covers200 700 Wheels195 750 590 2,600 Total1,840 4,600 Required: 1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours. Direct labor hour overhead rate$ 130 per direct labor hour Machine hour overhead rate$ per machine hour 2. Determine the product factory overhead costs, using (a) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rate. Automobile BumpersValve CoversWheels Direct labor hours$ $ $ Machine hours$ $ $
Answer:
OVERHEAD APPLIED USING DIRECT LABOR
Stamping // Labor Hours // Applied Overhead
bumpers 590 $ 76,700
Valve 310 $ 40,300
Wheels 350 $ 45,500
1250 $ 162,500
Planting // Labor Hours // Applied Overhead
bumpers 195 $25,350
Valve 200 $26,000
Wheels 195 $25,350
590 $76,700
OVERHEAD APPLIED USING MACHINE HOURS
Stamping // Machine Hours // Applied Overhead
bumpers 810 $42,120
Valve 570 $29,640
Wheels 620 $32,240
2000 $104,000
Planting // Machine Hours // Applied Overhead
bumpers 1150 $59,800
Valve 700 $36,400
Wheels 750 $39,000
2600 $135,200
Explanation:
As the overhead rate using labor hours is $130 Then:
Total expected overhead: $130 x 1,840 labor hours = $239,200
Machine Hours overhead rate:
$ 239,200 / 4,600 hours = $52
To get the amount of overhead applied on each product we multiply their use of the cost drive by the overhead rate.
Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the beginning of the month was $79,000 and at the end of the month was $72,000. The cost of goods manufactured for the month was $361,600. The actual manufacturing overhead cost incurred was $118,400 and the manufacturing overhead cost applied to jobs was $112,000. The adjusted cost of goods sold that would appear on the income statement for July is:
Answer:
$375,000
Explanation:
Unadjusted cost of goods sold = Opening stock of finished goods + Cost of goods sold - Closing stock of finished goods
Unadjusted cost of goods sold = $79,000 + $361,600 - $72,000
Unadjusted cost of goods sold = $368,600
The overhead applied is $112,000 and the actual manufacturing overhead is $118,400. As the actual manufacturing overhead is more than the overhead applied, the overhead is under applied as shown below
Under-applied Overhead = Actual manufacturing overhead - Overhead applied
= $118,400 - $112,000
= $6,400
Now, calculation of the adjusted cost of goods sold is as follow
Adjusted cost of goods sold = Unadjusted cost of goods sold + Under-applied Overhead
= $368,600 + $6,400
= $375,000
Thus, the adjusted cost of goods sold is $375,000
Blossom Company sells equipment on September 30, 2020, for $20,100 cash. The equipment originally cost $72,800 and as of January 1, 2020, had accumulated depreciation of $42,100. Depreciation for the first 9 months of 2020 is $5,45. Prepare the journal entries to (a) update depreciation to September 30, 2015, and (b) record the sale of the equipment.
Answer:
Date Account titles and explanation Debit Credit
30/09/2020 Depreciation expense $5,450
Accumulated depreciation $5,480
(To record depreciation expense)
30/09/2020 Accumulated depreciation $47,550
Cash $20,100
Loss on sale of equipment $5,230
Equipment $72,880
(To record sale of equipment)
Wanda contracted to sell Mike 100 boxes of ball bearings.The contract did not specify a place of delivery.The ball bearings now reside at Wanda's place of business.Wanda refuses to ship the 100 boxes to Mike,and Mike refuses to come to Wanda's place of business to pick them up.Who is right? Why?
Answer:
Wanda is right since the contract did not specify a place of deliveryExplanation:
Wanda is right, since the contract did not specify the place of delivery or whether Wanda is expected to deliver the bearing to Mikes place.
If it is in Wanda terms of business that normally boxes above 100 when purchased, delivery is free and he defaults, then he is wrong, but in this case it was not specified who will bear the cost of shipping, and it is not in Wanda terms of business that delivery is free, so Wanda is right in my own opinion.