For Sheffield Corp., sales is $1660000 (8300 units), fixed expenses are $480000, and the contribution margin per unit is $80. What is the margin of safety in dollars

Answers

Answer 1

Answer:

$460,000

Explanation:

The computation of the margin of safety in dollars is shown below:-

Break even sales = fixed cost ÷ contribution per unit

= $480,000 ÷ $80

= 6,000 units

The Margin of safety in dollars = Total sales - Break even sales

= 8,300 - 6,000

= 2,300

sale price = $1660000 ÷ 8,300

= $200 per unit

margin of safety in dollars = 2,300 × $200

= $460,000


Related Questions

Which idea forms the basis of double-entry accounting?
A. For every single transaction, at least two accounts will be
affected.
B. For every single transaction, only assets will be impacted.
C. The assets of a business equal the stockholders' equity.
O D. The stockholders' equity in a business must equal the liabilities.

Answers

Answer:

A. For every single transaction, at least two accounts will be

affected.

Explanation:

Double-entry accounting is a record-keeping method where a transaction is recorded in a minimum of two accounts. There is no upper ceiling on the actual number of accounts that may be used in a transaction.

Every account has two columns, with debits on the left and credit entries on the right. The aggregate of the debit entries must equal the result of all credit entries. If this happens, the transaction has balanced.  If not, the transaction is  "out of balance."

Hilary sells bottled water from a small stand by the beach. On the last day of summer vacation, many people are on the beach, and Hilary realizes that she can make a lot more money this day if she hires someone to walk up and down the beach selling water. She finds a college student named Edison and makes him the following offer: They'll each sell water all day and split their earnings (revenue minus the cost of water) equally at the end of the day. Hilary knows that if they both work hard, Edison will earn $90 on the beach and Hilary will earn $240 at her stand, so they will each take home half of their total revenue: If Edison shirks, he'll generate only $60 in earnings. Hilary does not know that Edison estimates his personal cost (or disutility) of working hard as opposed to shirking at $30. Once out of Hilary's sight, Edison faces a dilemma: work hard (put in full effort) or shirk (put in low effort).In terms of Edison's total utility, it is worse for him to ____(work hard or shirk). Taking into account the loss in utility that working hard brings to Edison, Hilary and Edison together ___ (are or are not) better off if Edison shirks instead of working hard.Hilary knows Edison will shirk if unsupervised. She considers hiring her good friend Carrie to keep an eye on Edison. The most Hilary should be willing to pay Carrie to supervise Edison, assuming supervision is sufficient to encourage Edison to work hard, is ____ .
a. 55.
b. 30.
c. 25.
d. 20.It turns out that Hilary's friend Carrue is unavilable that day, so Hilary cannot find a reliable person to watch Edison. Which of the following arrangements will ensure that Edison works hard without making Hilary any worse off than she is when Edison shirks?A. Pay Edison $20, regardless of how many bottles of water he sells.B. Allow Edison to keep 75% of the revenue from the bottles of water he sells instead of 50%.C. Allow Edison to keep 57% of the revenue from the bottles of water he sells instead of 50%.D. Make Edison promise to work hard.

Answers

Answer:

A)In terms of Edison's total utility, it is worse for him to  shirk. Taking into account the loss in utility that working hard brings to Edison, Hilary and Edison together  are  better off if Edison shirks instead of working hard.

B) $20

C) Allow Edison to keep 57% of the revenue from the bottles of water he sells instead of 50% (c)

Explanation:

If Edison works hard he will earn = $90

If Harry work hard he will earn = $240

They will both take home : (90 + 240) / 2 = 330 /2 = $165 each

If Edison shirks he will earn = $60

therefore the total revenue = 60 + 240 = 300

They will both take home : 300 / 2 = $150 each

A)In terms of Edison's total utility, it is worse for him to  shirk. Taking into account the loss in utility that working hard brings to Edison, Hilary and Edison together  are not  better off if Edison shirks instead of working hard.

B) The most Hilary should be willing to pay Carrie

should be : Amount earned without shirking - Amount earned with shirking

                = $165 - $150 = $15 the closest answer in the option is $20

C) . Allow Edison to keep 57% of the revenue from the bottles of water he sells instead of 50%

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,283,744 as follows.
Work in process, November 1 Materials $78,600 Conversion costs 48,700 $127,300 Materials added 1,592,280 Labor 225,100 Overhead 339,064 Production records show that 35,200 units were in beginning work in process 30% complete as to conversion costs, 661,000 units were started into production, and 25,400 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.
(a) Determine the equivalent units of production and the unit production costs for the Assembly Department.
(Round unit costs to 2 decimal places, e.g. 2.25.)
Materials Conversion Costs
Equivalent Units
Cost per unit $ $
(b) Determine the assignment of costs to goods transferred out and in process.
(c) Prepare a production cost report for the assembly dept.

Answers

Answer:

a.

Equivalent Units : Materials = 696,200 units and  Conversion Costs = 680,960 units

Cost per unit : Materials = $2.40 and  Conversion Costs = $0.90

b.

goods transferred out =  $2,213,640

goods in process = $70,104

c.

Production cost report for the assembly department

Inputs :

Opening Balance                                     $127,300

Costs added during the year :

Materials                                                $1,592,280

Labor                                                        $225,100

Overhead                                               $ 339,064

Total Costs                                            $2,283,744

Outputs :

Completed and Transferred Out         $2,213,640

Ending Work In Process                            $70,104

Total Costs                                           $2,283,744

Explanation:

First, calculated the number of units completed and transferred to finished goods.

Number of units completed and transferred = Beginning Inventory Units + Units Started during the period - Ending Inventory Units

Number of units completed and transferred = 35,200 units + 661,000 units -  25,400 units

                                                                         = 670,800 units

Calculation of Equivalent Units of Production with Respect to Raw Materials and Conversion Costs.

1. Materials

Ending Work In Process (25,400 × 100%)                                       =   25,400

Completed and Transferred (670,800 × 100%)                              = 670,800

Equivalent Units of Production with Respect to Raw Materials     = 696,200

2. Conversion Costs

Ending Work In Process (25,400 × 40%)                                         =    10,160

Completed and Transferred (670,800 × 100%)                              = 670,800

Equivalent Units of Production in Conversion Costs                     = 680,960

Calculation of Total Unit Cost

Unit Cost = Total Costs ÷ Total Equivalent Units

1. Materials

Unit Cost = ($78,600 + $1,592,280) ÷ 696,200

                = $2.40

2. Conversion Costs

Unit Cost = ($48,700 + $225,100 + $339,064 ) ÷ 680,960

                = $0.90

3. Total Unit Cost

Total Unit Cost = Materials + Conversion Costs

                         = $2.40 + $0.90

                         = $3.30

Calculation of costs assigned to goods transferred out and in process.

Goods transferred out = Units completed and transferred × total unit cost

                                      = 670,800 × $3.30

                                      = $2,213,640

Units in Process = Material Costs + Conversion Cost

                            = (25,400 × $2.40) + (10,160 × $0.90)

                            = $70,104

The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within 60 days is recorded by the purchaser with:_____.
A. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Payable.
B. A debit of $7,600 to Office Equipment, a debit of $4,200 to Accounts Receivable, and a credit of $3,400 to Accounts Payable.
C. A debit of $3,400 to Accounts Receivable, a debit of $4,200 to Cash, and a credit of $7,600 to Office Equipment.
D. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Receivable.

Answers

Answer:

A. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Payable.

Explanation:

Recognize the Asset - Office Equipment and Accounts Payable Accounts as these are increasing. De-recognize the Cash Account as this account is decreasing.

There is a natural progression from one statement to the next. The following boxes represent the four financial statements. The set of financial statements is prepared at the end of each accounting period to communicate information about the company’s operations during that period to its users. Use the selection lists to demonstrate your knowledge of the relationships between the statements. In the headings, you will need to select the appropriate statement name and time period.(Hint: Ask yourself if the statement covers a period of time or if it is a snapshot at a given point in time.) Then complete the blanks following the headings.)
Statement:
ABC Company This statement shows how profitable a company is. It is sometimes referred to as the profit and loss (P&L) statement.
This statement summarizes the_______ Which item from this financial statement appears on the next financial statement?

Answers

Answer:

Income Statement:  

ABC Company This statement shows how profitable a company is. It is sometimes referred to as the profit and loss (P&L) statement.

This statement summarizes the_revenue and expenses______ .

Which item from this financial statement appears on the next financial statement?

Net Income

Explanation:

For instance, Company XYZ reports the Net Income (net profit) from the Income Statement to the Statement of Retained Earnings.  This second financial statement shows the distribution of profits to Company XYZ's stockholders.  From this second statement, the company takes an item known as the Retained Earnings to the next statement called the Balance Sheet (a snapshot of financial position).  The last statement usually prepared as part of financial reporting is the Statement of Cash Flows, which classifies the financial (cash) activities of the business into three: Operating, Investing, and Financing activities.  The Statement of Cash Flows shows the cash inflows and outflows during a period.

Blossom Corp is issuing a 10-year bond with a coupon rate of 11 percent. The interest rate for similar bonds is currently 7 percent. Assuming annual payments, what is the value of the bond

Answers

Answer:

$1,280.94

Explanation:

FV= $1000

PMT = 11% * $1000  = $110

N = 10 Years

I/Y = 7%

Using Excel, Present value of bond ($1,000, $110, 10, 7%) = $1280.9433

Hence, the present value of bond = $1,280.94

Help me please!!!!
Explain possible circumstances under which an adult child may
have undue influence in a relationship with an elderly parent.

Answers

Answer:

i think seeing their grand parent arguing with a parent, probably would make them question a lot, and they might evem stay away from them for a while, though, i may have took your question wrong, very sorry

Explanation:

if your meaning a situation where the child either wants to get away from them or they feel apart from them, this might help.

Twelve​ samples, each containing five​ parts, were taken from a process that produces steel rods at Emmanual​ Kodzi's factory. The length of each rod in the samples was determined. The results were tabulated and sample means and ranges were computed. The results​ were:
Sample Sample Mean​ (in.) Range​ (in.) Sample Sample Mean​ (in.) Range​ (in.)
1 11.204 0.033 7 11.201 0.041
2 11.204 0.041 8 11.203 0.034
3 11.189 0.034 9 11.197 0.027
4 11.208 0.051 10 11.201 0.029
5 11.195 0.031 11 11.201 0.039
6 11.197 0.036 12 11.206 0.047
For the given​ data, the x ​= nothing inches ​(round your response to four decimal​ places).
Based on the sampling​ done, the control limits for ​3-sigma x chart​ are:
Upper Control Limit ​(UCLx​) ​= nothing inches ​(round your response to four decimal​ places).
Lower Control Limit ​(LCLx​) ​= nothing inches ​(round your response to four decimal​ places).
Based on the x​-chart, is one or more samples beyond the control​ limits? ▼ Yes No .
For the given​ data, the R ​= nothing inches ​(round your response to four decimal​ places).
The control limits for the ​3-sigma​ R-chart are:
Upper Control Limit ​(UCLR​) ​= nothing inches ​(round your response to four decimal​ places).
Lower Control Limit ​(LCLR​) ​= nothing inches ​(round your response to four decimal​ places).
Based on the​ R-chart, is one or more samples beyond the control​ limits? ▼ Yes No .

Answers

Full question attached

Answer and Explanation:

Answer and explanation attached

g Benton, Inc. has decided to discontinue manufacturing its Quantum model personal organizer. Currently the company has a number of partially completed personal organizers on hand. The company has spent $111 per unit to manufacture these organizers. To complete each unit, costs of $14 for material and $15 for direct labor will be incurred. In addition, $9 of variable overhead and $34 of allocated fixed overhead (relating primarily to depreciation of plant and equipment) will be added per unit. If Benton, Inc., completes the organizers, it can sell them for $124 per unit. Another manufacturer is interested in purchasing the partially completed organizers for $107 per unit and converting them into inventory tracking devices. Determine whether Benton should complete the personal organizers or sell them in their current state.

Answers

Answer:

Sell them in their current state

Explanation:

Ignore the cost already incurred ($111) since it is a sunk cost (already spent) and should not affect future decision.

1) The incremental cost of completing each unit = material cost ($14) + direct labour cost ($15) + variable overhead cost ($9) = $38 (allocated fixed cost was not included since it is a non-cash item)

With a sale price of $124, the profit per unit = $124 - $38 = $89.

2) Whereas, selling the partially completed unit will earn $107 (without any additional cost).

Since selling the partially completed unit earns higher incremental value than completing manufacture before sale, selling is the optimal decision.

A (Static) Using T accounts to record all business transactions. LO 3-1, 3-2, 3-4
The following accounts and transactions are for Vincent Sutton, Landscape Consultant.
Transactions:
Sutton invested $90,000 in cash to start the business.
Paid $6,000 for the current month’s rent.
Bought office furniture for $10,580 in cash.
Performed services for $8,200 in cash.
Paid $1,250 for the monthly telephone bill.
Performed services for $14,000 on credit.
Purchased a computer and copier for $18,000; paid $7,200 in cash immediately with the balance due in 30 days.
Received $7,000 from credit clients.
Paid $2,800 in cash for office cleaning services for the month.
Purchased additional office chairs for $5,800; received credit terms of 30 days.
Purchased office equipment for $22,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
Issued a check for $9,400 to pay salaries.
Performed services for $14,500 in cash.
Performed services for $16,000 on credit.
Collected $8,000 on accounts receivable from charge customers.
Issued a check for $2,900 in partial payment of the amount owed for office chairs.
Paid $725 to a duplicating company for photocopy work performed during the month.
Paid $1,280 for the monthly electric bill.
Sutton withdrew $5,500 in cash for personal expenses.
Post the above transactions into the appropriate T accounts.
Analyze:
What liabilities does the business have after all transactions have been recorded?
Complete this question by entering your answers in the tabs below.
Transactions
Analyze
Post the above transactions into the appropriate T accounts.
Cash Accounts Receivable
Bal.
Bal.
Office Furniture Office Equipment
Bal. Bal.
Accounts Payable Vincent Sutton, Capital
Bal.
Bal.
Vincent Sutton, Drawing Fees Income
Bal.
Bal.
Rent Expense Utilities Expense
Bal. Bal.
Salaries Expense Telephone Expense
Bal. Bal.
Miscellaneous Expense
Bal.
Complete this question by entering your answers in the tabs below.
What liabilities does the business have after all transactions have been recorded?
Liabilities

Answers

Answer:

It is very difficult to record T accounts since there is not a lot of room here and things get complicated very easily. So I used an excel spreadsheet to post the accounts on an accounting equation format.

Assets increase when they are debited and they decrease when they are credited. The opposite happens to liabilities and equity, they increase when they are credited and decrease when they are debited. Service revenue is credited, while all expenses are debited.

The reason why the drawings account has a negative balance is that even though it is an equity account, it has a debit balance since it decreases capital.

In order for the equation to balance, you have to close the accounts, but that was not a requirement of the question.

What liabilities does the business have after all transactions have been recorded?

the only liability account is accounts payable with a credit balance of $24,700

   

List and describe the three types of income. Include information regarding how each one is taxed.

Answers

Answer:

Understanding The Three Types Of Income

Earned Income. The first type of income is the most common: earned income. ... Capital Gains Income. The next type of income that you can earn is called capital gains income. ... Passive Income. The final type of income that you can earn is called passive income.

Answer:

earned income, capital income, dont know the last one sorry

Explanation:

Consider the following information for stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.)


Stock Expected Return Standard Deviation Beta
A 8.60% 14% 0.8
B 9.95 14 1.1
C 11.75 14 1.5

Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 5%, and the market is in equilibrium. (That is, required returns equal expected returns.)

Required:
a. What is the market risk premium?
b. What is the beta of Fund P?
c. What is the required return of Fund P?
d. Would you expect the standard deviation of Fund P to be less than 15%, equal to 15% or greater than 15%? Explain.

Answers

Question attached

Answer and Explanation:

Find attached

Share one or two specific examples of how you will use the concepts or strategies presented in this class to contribute to your academic and career success.

Answers

Answer:

Explanation:

e concepts or strategies presented in this class

Which activities are often required of someone who is in the performing arts?

A. writing creatively, remembering a script, and entertaining people

B. going on auditions, using pottery wheels, and scheduling tasks

C. creating artwork, designing a dance routine, and interviewing people to get information

D. coordinating performances, attending events to market themselves, and operating technical equipment

Answers

Answer:

It's A: writing,  a script, and entertaining people

Explanation:

did on edge 2020

Darden Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 21,400 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $24,700. An additional 101,000 units were started into production during the month. There were 34,000 units in the ending work in process inventory of the Welding Department that were 70% complete with respect to conversion costs. A total of $853,880 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:_______
a. $8.486
b. $9.965
c. $8.738
d. $9.200

Answers

Answer:

$7.830

Explanation:

Calculation for the cost per equivalent unit for conversion costs for the month

First step is to compute for the Unit transferred out =

Unit transferred out = 21,400+101,000-34,000

Unit transferred out = 88,400

Second step is to compute for the Equivalent unit of conversion

Equivalent unit of conversion = 88,400+(34,000*70%)

Equivalent unit of conversion = 88,400+23,800

Equivalent unit of conversion = 112,200

Last step is to compute for the Cost per equivalent unit of conversion

Cost per equivalent unit of conversion = (24,700+853,880)/112,200 = 7.931

Cost per equivalent unit of conversion = 878,580/112,200

Cost per equivalent unit of conversion = $7.830

Therefore the cost per equivalent unit for conversion costs for the month is closest to $7.830

Assume that in the short run a firm is producing 500 units of output, has average total costs of $300, and has average variable costs of $220. The firm's total fixed costs are. Select one: a. $40,000. b. $6.25. c. $0.16. d. $80.

Answers

Answer:

Total fixed costs= $40,000

Explanation:

First, we need to calculate the total variable cost and total cost:

Total cost= 500*300= $150,000

Total variable cost= 500*220= $110,000

Now, we can calculate the total fixed costs:

Total fixed costs= total cost - total variable cost

Total fixed costs= 150,000 - 110,000

Total fixed costs= $40,000

Is cost minimization equivalent or identical the concept of product maximization. True of False. Explain

Answers

Answer:

True

Explanation:

Given a certain production level, cost minimization is equal to product maximization. Cost minimization refers to the production level where average total cost per unit is lowest. On the other hand, production maximization refers to maximizing product output given certain restraints, e.g. amount of raw materials, number of labor hours, etc. Product maximization basically refers to the efficiency of production.

If someone can achieve product maximization and cost minimization, they should be maximizing profit.

Use the following information to prepare a multistep income statement and a classified balance sheet for Eller Equipment Co. for Year 1.

Salaries expense $122,000 Beginning retained earnings $61,100
Common stock 110,000 Warranties payable (short term) 6,500
Notes receivable (short term) 32,500 Gain on sale of equipment 19,000
Allowance for doubtful accounts 19,000 Operating expenses 65,000
Accumulated depreciation 66,000 Cash flow from investing activities 116,000
Notes payable (long term) 160,000 Prepaid rent 38,000
Salvage value of building 21,000 Land 95,000
Interest payable (short term) 6,000 Cash 41,000
Uncollectible accounts expense 45,000 Inventory 101,000
Supplies 6,500 Accounts payable 55,000 Equipment 243,000
Interest expense 36,000 Interest revenue 6,200
Salaries payable 68,000 Sales revenue 940,000
Unearned revenue 47,000 Dividends 20,000
Cost of goods sold 595,000 Warranty expense 9,200
Accounts receivable 108,000 Interest receivable (short term) 3,600
Depreciation expense 3,000

Answers

Answer:

                                 Eller Equipment Co.

                                  Income statement

Particular                                  Amount($)  Amount ($)

Sales revenue                                                940,000

Less: Cost of good sold                                 (595,000)

Gross margin                                                   345,000

Operating expenses

Salaries expenses                         122,000  

Operating expenses                     65,000  

Warranty expenses                        9,200

Un-collectible account expenses  45,000  

Depreciation expenses                 3,000

Total operating expenses                                (244,200)

Operating income                                              100,800

Non-operating expenses

Interest revenue                            6,200  

Interest expenses                        (36,000)

Gain on sale of equipment            19,000  

Total non-operating items                                   (10,800)

Net Income                                                          $90,000

                                   Balance Sheet

Assets                                          Amount$

Current Assets                                    

Cash                                                            41,000  

Accounts receivable                  108,000

Less: Allowance for doubtful    (19,000)  89,000

accounts

Merchandise inventory                             101,000  

Interest receivable                                     3600

Prepaid rent                                                38,000  

Supplies                                                      6,500  

Notes receivable                                        32,500

Total current assets                                                           311,600

Property Plant and Equipment    

Equipment                                    243,000  

Less: Accumulated depreciation (66,000)   177,000  

Land                                                                 95,000

Total property plant and equipment                                 272,000

Total Assets                                                                        583,600

Liabilities and Stockholder Equity

Current liabilities

Account payable                     55,000  

Unearned revenue                  47,000  

Warranties payable                  6,500  

Interest payable                        6,000  

Salaries payable                       68,000

Total current liabilities                                                  182,500

Long-term liabilities  

Notes payable                     160,000

Total long-term liabilities                                               160,000

Stockholders equity

Common stock                            110,000  

Retained earning                         131,100

Total stockholders equity                                              241,100

Total liabilities and stockholders equity                    $583,600

Workings

Retained earning = Beginning retained earning + Net income - Dividend  

= 61,100 + 90,000 - 20,000

= 131,100

A list of Year 3 revenues and expenses for Green Thumb, Inc. is provided below.
Advertising and Promotion Expenses $ 263,700
Income Tax Expense 56,620
Interest Expense 44,020
Other Expenses 123,600
Other Selling & Administrative Expenses 352,000
Sales Revenue 1,871,300
Salaries and Wages Expense 726,000
Required:
1. Calculate the net income for the Green Thumb, Inc. for Year 3.
2. Prepare a statement of retained earnings for Green Thumb, Inc. for Year 3. Assume the company had retained earnings of $163,200 as of January 1, Year 3, and paid out $46,120 in dividends during Year 3.

Answers

Answer:

a.                               Green Thumb

                       Net Income for the year 3

Particulars                                      Amount

Sales revenue                                                     $1,871,300

Operating expenses

Advertising expense                    $263,700

Salaries and wages expense      $726,000

Other selling expenses                $352,000

Other expenses                            $123,600      $1,465,300

Earnings before interest and taxes                   $406,000

Interest expense                                                 $44,020    

Earnings before taxes                                         $361,980

Income tax expense                                            $56,620

Net Income                                                           $305,360

b.                         Green Thumb Inc.

                Statement of retained earnings

             For the year ended Dec 31, Year 3

Retained Earnings, Jan 1 year 3      $163,200

Add: Net Income                              $305,360

Less: Dividend paid                          $46,120

Retained Earnings, Dec 31 year 3  $422,440

What is a premium in personal finance HEEEEELLPPP

Answers

Premium has multiple meanings in finance, with the first being the total cost to buy an option. A premium is also the difference between the price paid for a fixed-income security and the security's face amount at issue.

Source: Investopedia

Verne Cova Company has the following balances in selected accounts on December 31, 2014.
Accounts Receivable $ -0-
Accumulated Depreciation—Equipment -0-
Equipment 7,000
Interest Payable -0-
Notes Payable 10,000
Prepaid Insurance 2,100
Salaries and Wages Payable -0-
Supplies 2,450
Unearned Service Revenue 30,000
All the accounts have normal balances. The information below has been gathered at December 31, 2014.
1. Verne Cova Company borrowed $10,000 by signing a 12%, one-year note on September 1, 2014.
2. A count of supplies on December 31, 2014, indicates that supplies of $900 are on hand.
3. Depreciation on the equipment for 2014 is $1,000.
4. Verne Cova Company paid $2,100 for 12 months of insurance coverage on June 1, 2014.
5. On December 1, 2014, Verne Cova collected $30,000 for consulting services to be performed from December 1, 2014, through March 31, 2015.
6. Verne Cova performed consulting services for a client in December 2014. The client will be billed $4,200.
7. Verne Cova Company pays its employees total salaries of $9,000 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2014.
Instructions:
Prepare adjusting entries for the seven items described above.

Answers

Answer and Explanation:

The adjusting journal entries are shown below:

1) Interest Expense $400  ($10,000 × 12% × 3 months ÷ 12 months)

          Interest Payable $400

(Being interest expense is recorded)

2) Supplies expense $1,500  ($2,450 - $900)

            To Supplies $1,550

(being supplies expense is recorded)

3) Depriciation expense $1,000

        Accumulated depriciation - equipment $1,000

(being depreciation expense is recorded)  

4) Insurance expense $1,225  ($2,100 × 7 months ÷ 12 months)

              To Prepaid insurance $1,225

(Being insurance expense is recorded)

5) Unearned service revenue $7,500 ($30,000 ÷ 4)

                  Service revenue  $7,500

(being service revenue is recorded)

6) Account receivable $4,200

        To Service revenue $4,200

(being account receivable is recorded)

7) Salaries and wages expense $5,400  ($9,000 ÷ 5 days × 3 days)

                To Salaries and wages payable $5,400

(being salaries & wages expense is recorded)

Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2021 are as follows: ($ millions)


PBO balance, January 1 $530
Plan assets balance, January 1 300
Service cost 50
Interest cost 30
Gain from change in actuarial assumption 36
Benefits paid (46 )
Actual return on plan assets 23
Contributions 2021 40

The expected long-term rate of return on plan assets was 9%. There were no AOCI balances related to pensions on January 1, 2021, but at the end of 2021, the company amended the pension formula, creating a prior service cost of $18 million.

Required:
a. Calculate the pension expense for 2021.
b. Prepare the journal entries to record (a) pension expense, (b) gains or losses, (c) prior service cost, (d) funding, and (e) payment of benefits for 2021.
c. What amount will Electronic Distribution report in its 2021 balance sheet as a net pension asset or net pension liability?

Answers

Answer:

Please see below

Explanation:

1. Calculate the pension expense for 2021.

($ millions)

Service cost. $50

Interest cost. $30

Expected return on the plan assets

(1,300 × 6%). ($78)

Amortization of prior service cost $

Amortization of net gain or loss - AOCI $

Pension expense $2

2. Journal expense to record pension expense, gains or losses, prior service cost, funding and payment of benefits for 2021.

1.

Pension expense. Dr $2

Plan assets [expected return on assets] Dr $78

To PBO (50 + 30) Cr $80

(To record the pension expense)

2.

Prior service cost - OCI Dr $18

To PBO Cr $18

(To record the prior service cost)

3.

PBO Dr $36

To Gain - OCI Cr $36

(To record the gain from change in actuarial assumption)

4.

Loss- OCI [1,300 × 6%] - ($23). Dr $55

To Plan assets Cr. $55

(To record the gain or loss on assets)

5.

Plan assets. Dr $40

To Cash Cr. $40

(To record the funding)

6.

PBO Dr $46

To Plan assets. Cr 46

(To record the retiree benefits)

3. What amount will electronic distribution report in its 2021 balance sheet as a net pension asset or net pension liability.

PBO balance, Jan 1 $530

Service cost. $50

Interest cost. $30

Gain from change in actuarial assumption. ($36)

Prior service cost(New). $18

Benefit paid ($46)

PBO balance, December 31. $546

Plan assets balance, Jan 1. $300

Actual return on plan assets $23

Contributions $40

Benefits paid ($46)

Plan assets balance, December 31 $317

PBO balance, December 31 $546

Plan assets balance, December 31 $317

Net pension liability. $229

Indicate which activities of Stockton Corporation violated the rights of a stockholder who owned one share of common stock.

a. Paid the stockholder a smaller dividend per share than another common stockholder.
b. Did not allow the stockholder to make decisions regarding hiring and firing employees.
c. Rejected the stockholder's request to vote via proxy because she was home sick.
d. The company did not provide all stockholders with timely financial reports.
e. In liquidation, paid the common shareholder after preferred stockholders were already paid.

Answers

Answer:

a. Paid the stockholder a smaller dividend per share than another common stockholder.

c. Rejected the stockholder's request to vote via proxy because she was home sick.

d. The company did not provide all stockholders with timely financial reports.

Explanation:

A shareholder is a person that has contributed to the equity of a company and holds shares as evidence of ownership.

Shareholders have right to recieve equal dividend as other common shareholders. There can only be a difference in dividend payouts when the other person has more shares.

They also have the right to vote via proxy in cases where they are not available. The proxy is duly appointed by the shareholder.

The company is also mandated to provide timely financial reports to all stockholders.

Shareholders however are not involved in daily running of the business. So they have no say in hiring and firing of employees.

Also common shareholders are paid dividend after preference share holders have been settled by the company.

Cost of Production Report
The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process.
Work in process, January 1, 7,000 units, 70% completed $81,970
Direct materials (7,000 × $8.00) $56,000
Conversion (7,000 × 70% × $5.30) 25,970
$81,970
Materials added during January from Weaving
Department, 108,000 units $869,400
Direct labor for January 248,134
Factory overhead for January 303,274
Goods finished during January (includes goods in
process, January 1), 109,200 units —
Work in process, January 31, 5,800 units, 30% completed —
A. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0".
B. Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (December).

Answers

Answer:

A) Summary of physical units and equivalent units

Units to be accounted for                  Physical units

Beginning WIP                                         7,000

Units started                                        108,000

Total units to be accounted for           115,000

Units accounted for          Phys. units          Materials        Conversion

Beginning WIP                      7,000              $56,000          $25,970

Units started                      108,000          $869,400         $551,408  

Subtotal                               115,000           $925,400        $577,378

Units transferred out         109,200            $878,710         $567,691

Ending WIP                            5,800            $46,690            $9,687

Summary of costs to be accounted for

Costs to be accounted for:            Materials         Conversion     Total

Beginning WIP                                $56,000            $25,970        $81,970

Costs incurred in the period        $869,400          $551,408   $1,420,808

Total costs to be accounted for  $925,400          $577,378    $1,502,778

 

Calculation of cost per equivalent unit

                                                       Materials         Conversion     Total

Costs incurred in the period        $869,400          $551,408   $1,420,808

Total equivalent units                    108,000              99,040                        

Cost per equivalent unit                   $8.05           $5.567528   $13.617528

Cost allocation

                                                       Materials         Conversion     Total

Units finished and transferred      $878,710          $567,691      $1,446,401

Ending WIP                                     $46,690            $9,687         $56,377  

Total costs to be accounted for   $925,400         $577,378    $1,502,778

B) Materials cost per equivalent unit increased slightly during the period from $8 per EU to $8.05 per EU (0.6% increase). Conversion costs also increased during the period from $5.30 per EU to $5.567528 per EU (5% increase).

Explanation:

beginning WIP 7,000 units

100% completed for materials

70% completed for conversion costs (30% added in this period = 2,100 EU)

beginning WIP costs

materials $81,970

conversion $56,000

units started 108,000

materials added during the period $869,400

conversion costs $551,408

units finished 109,200

units started and finished = 108,000 - 7,000 - 5,800 = 95,200

ending WIP 5,800

100% complete for materials

30% complete for conversion costs (1,740 EU)

total EU:

materials 108,000

conversion 2,100 + 95,200 + 1,740 = 99,040

cost per EU:

materials $869,400 / 108,000 = $8.05

conversion $551,408 / 99,040 = $5.567528

total = $13.617528

ending WIP costs:

5,800 x $8.05 = $46,690

1,740 x $5.567528 = $9,687

total = $56,377

costs of finished units:

(102,200 x $8.05) + $56,000 = $878,710

(95,200 x $5.567528) + (2,100 x $5.567528) + $25,970 = $567,691

total = $1,446,401

f the present value of the annuity is $45,000, what should be the size of each payment from the annuity

Answers

Answer:

"$571.92" is the correct solution.

Explanation:

The given problem is incomplete. Please find attachment of the complete question.

The given values are:

Payments will be made for

= [tex]8\frac{1}{4} \ years[/tex]

At the rate of:

= [tex]5.75 \ percent[/tex]

= [tex]0.0575 \ per \ year[/tex]

The present value of annuity is:

= [tex]45000[/tex]

Let the size of each payment will be "d".

Now,

⇒  [tex]45000=\frac{1-(1+\frac{0.0575}{12})^{-99}}{\frac{0.0575}{12}}\times d[/tex]

⇒         [tex]d = 571.92[/tex] ($)

Brace Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,600 hours. At the end of the year, actual direct labor-hours for the year were 20,400 hours, the actual manufacturing overhead for the year was $506,920, and manufacturing overhead for the year was underapplied by $23,440. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:_________
A. $501,920
B. $531,445
C. $483,480
D. $511,920

Answers

Answer:

D. $511,920

Explanation:

For determining the estimated manufaturing overhead first determined the predetermined overhead which is shown below:

= (Actual manufacturing overhead - underapplied overhead) ÷ (actual direct labor hours)

= ($506,920 - $23,440) ÷ (20,400 hours)

= $23.7

Now the estimated manufacturing overhead is

= $23.7 × 21,600 hours

= $511,920

Following is information about consulting jobs for a company that is increasing in sales, but has not yet become profitable. The owner keeps financial records on yellow sticky notes stuck to the wall behind his desk. He has asked you to help him set up a costing system so that he can better understand his costs. The owner said that job 140 was completed, job 141 was started and completed, and job 142 was started this month. Professional labour hours for contracts in process consist of job 140 with 129 hours, job 141 with 258 hours, and job 142 with 137 hours. Professional labour was paid $23,580 for the month, and the professional employees are all paid the same rate per hour. Overhead is allocated using an estimated rate based on professional labour hours. The total cost for job 141 is $32,766. Actual overhead cost for the month was $53,448. What is labour paid per hour? Labour per hour. What is the estimated rate per labour hour used to allocate overhead? per hour. Overhead rate What are the total costs (before adjusting for overapplied or underapplied overhead) for Jobs 141, 142, and 143? Total cost Job 140 Job 141 Job 142 What are the amounts in cost of goods sold and work-in-process at the end of the month? Cost of goods sold Work-in-process What amount of overhead was overapplied or underapplied this month? Overhead If this month is typical, what is a reasonable overhead rate? Reasonable overhead rate per hour

Answers

Answer:

Part 1

$82 per professional labor hour

Part 2

Job 141 = $16,383  ,Job 142 = $32,766 , and Job 143 = $17,399

Part 3

Cost of Goods Sold = $49,149

Ending Work In Process Inventory = $17,399

Part 4

Overheads Under- applied = $10,480

Part 5

$102.00 per professional labor hour

Explanation:

Labor Cost per hour = Total Cost ÷ Total hours

                                  = $23,580 ÷ ( 129 + 258 + 137)

                                  = $45.00 per hour

We know that,

Overhead allocation rate = Estimated Overhead Costs ÷ Estimated Professional labor hours

But using Job 141 we can solve as,

Total for Job  141                                         = $32,766

Less Labor Cost (258 hours × $45.00)       =  $11,610

Overheads allocated to Job 141                 = $21,156

Then,

Overhead allocation rate =  $21,156 ÷ 258

                                          = $82 per professional labor hour

Total Costs

                                          Job 140         Job 141            Job 142

Direct Labor                        $5,805         $11,610              $6,165

Overheads                         $10,578         $21,156            $11,234

Total Cost                           $16,383       $32,766           $17,399

Cost of Goods Sold

Note : Only Finished Jobs are accounted in this figure

Total Cost of Job 140      $16,383

Total Cost of Job 141       $32,766

Cost of Goods Sold         $49,149

Work In Process Inventory

Note : Only Incomplete Jobs are accounted in this figure

Total Cost of Job 142       $17,399

Application of Overheads

Actual Overheads (given)                                  = $53,448

Applied Overheads ($82 ×  ( 129 + 258 + 137)) = $42,968

Actual Overheads > Applied Overheads therefore we have an Under-applied situation.

Overheads Under- applied = $10,480 ($53,448 - $42,968)

Reasonable Overhead Rate.

Rate that does not produce variances is reasonable !

Reasonable Overhead Rate. = Actual Overheads ÷ Total Professional Hours

                                                = $53,448 ÷ 524 hours

                                                = $102.00 per professional labor hour

A company reports the following beginning Inventory and two purchases for the month of January. On January 26, the company sells 360 units. Ending Inventory at January 31 totals 130 units.
Units Unit Cost
Beginning inventory on January 1 320 $3.10
Purchase on January 9 70 3.30
Purchase on January 25 100 3.40
Required:
Assume the Perpetual Inventory system is used. Determine the costs assigned to ending Inventory when costs are assigned based on LIFO.

Answers

Answer:

$439

Explanation:

Perpetual Inventory method calculates the value of goods held after each transaction.

LIFO stands for First In First Out.

Calculation of cost assigned to ending Inventory - FIFO

30 units × $3.30  =   $99

100 units × $3.40 = $340

Total                     = $439

Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the following , identify which type of activity is described by each statement. (Operating Activity Investing Activity Financing Activity)

a. Yum Co. uses cash to repurchase 10% of its common stock.
b. DigiInk Printing Co. buys new machinery to ramp up its production capacity.
c. D and W Co. sells its last season’s inventory to a discount store.
d. A company records a loss of $70,000 on the sale of its outdated inventory.

Answers

Answer:

a. Yum Co. uses cash to repurchase 10% of its common stock. (Financing activity)

b. DigiInk Printing Co. buys new machinery to ramp up its production capacity. (Investing activity)

c. D and W Co. sells its last season’s inventory to a discount store. (Operating activity)

d. A company records a loss of $70,000 on the sale of its outdated inventory. (Operating activity)

Explanation:

Cash flow statement shows how cash is used and obtained in a business. There are different activities that influence cash flow. Below are the activities:

- Operating activities are those that include normal business operations like buying and selling of inventory, interest payments, and salaries.

- Investing activities involves use of cash for investment like purchase or sale of assets, merger and acquisitions payments, and purchase of equipment.

- Financing activities includes cash used to purchase or sell equity such as shares, payment of dividends, and repayment of principal from debt

Fort Corporation had the following transactions during its first month of operations
1. Purchased raw materials on account, $85,000.
2. Raw Materials of $30,000 were requisitioned to the factory.
3. An analysis of the materials requisition slips indicated that $6,000 was classified as indirect materials labor costs incurred were $175,000 of which $145,000 pertained to factory wages payable and $30,000 pertained to employer payrol
4. Time tickets indicated that $145,000 was direct labor and $30,000 was indirect labor.
5. Overhead costs incurred on account were $198,000
6. Manufacturing overhead was applied at the rate of 150% of direct labor cost.
7. Goods costing $115,000 are still incomplete at the end of the month; the other goods were completed and transferred to finished goods
8. Finished goods costing $100,000 to manufacture were sold on account for $130,000.
Journalize the above transactions for Fort Corporation. (Record journal entries in the order presented in the problem.

Answers

Answer:

DR Raw materials inventory                           $85,000  

      CR Accounts payable                                                     $85,000

DR Work in process Inventory                         $24,000  

      Manufacturing overhead                             $6,000  

       CR Raw materials inventory                                    $30,000

Working

Work in Process = 30,000 - 6,000 = 24,000

DR Factory Labor                                               $175,000  

      CR Factory wages payable                                                  $145,000

            Payroll taxes payable                                                       $30,000

DR Work in process Inventory                           $145,000  

     Manufacturing overhead                               $30,000  

      CR Factory Labor                                                                  $175,000

DR Manufacturing overhead                               $198,000  

     CR Accounts payable                                                             $198,000

DR Work in process Inventory                             $217,500  

       CR Manufacturing overhead                                        $217,500

Working

Work in Process Inventory = 145,000*150% = $217,500

DR Finished goods Inventory                               $271,500  

     CR Work in process Inventory                                           $271,500

Working

Finished goods = 24,000 + 145,000 + 217,500 - 115,000  = $271,500

DR Cost of goods sold                                                 $100,000  

     CR Finished goods Inventory                                                    $100,000

DR Account receivables                                       $130,000  

      CR Sales                                                                            $130,000

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