Answer:
very important
Explanation:
Name one thing you're afraid of when you think of college and career.
Answer:
finances
Explanation:
College is expensive and people that go to college have an expectation of landing a great paying job. Reality is that is not always the case. Often leading to a long time of paying of student debts.
Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $380,000 Shop direct labor 1,872,000 Shop and repair equipment depreciation 62,500 Shop supervisor salaries 240,000 Shop property taxes 36,940 Shop supplies 10,000 Advertising expense 28,000 Administrative office salaries 150,000 Administrative office depreciation expense 8,000 Total costs and expenses $2,787,440 The average shop direct labor rate is $37.50 per hour. Determine the predetermined shop overhead rate per direct labor hour. $fill in the blank 1 per direct labor hour
Answer:
$7 per direct labor hour
Explanation:
Given the above information ,
Overhead cost = Shop and repair equipment and depreciation + Shop supervisor salaries + shop property taxes + shop supplies
Overhead cost = $62,500 + $240,000 + $36,940 + $10,000 = $349,440
Number of direct labor hours = 1,872,000/$37.5 = 49,920
Predetermined overhead rate = Overhead cost/Direct labor hours
Predetermined overhead rate
= $349,440/49,920
= $7 per direct labor hour
Cullumber Company owns delivery equipment that cost $49,700 and has accumulated depreciation of $24,800 as of July 30, 2020. On that date, Cullumber disposes of this equipment. For parts b - d below, enter D for debit or C for credit in the first box and the amount in the second box. What is the net book value of the equipment on July 30, 2020
Answer:
The net book value of the equipment on July 30, 2020 is $24,900.
Explanation:
The net book value can be calculate using the following formula:
Net book value = Cost of the equipment - Accumulated depreciation …………………… (1)
Where:
Cost of the equipment = $49,700
Accumulated depreciation = $24,800
Substituting the values into equation (1), we have:
Net book value = $49,700 - $24,800 = $24,900
Therefore, the net book value of the equipment on July 30, 2020 is $24,900.
Economically, the government divides its earning marks into ______, each of which lasts three months.
Answer:
quarters
Explanation:
The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 1200 employees per year. Since the training center was first put into use, the program has become more complex, so that 950 now represents the most employees that can be trained per year. In the past year, 850 employees were trained. The efficiency of this system is approximately ________________ and its utilization is approximately _____________________.
Answer:
Efficiency of the system = Actual output/ Effective capacity*100
Efficiency of the system = 850/950*100
Efficiency of the system = 0.894737*100
Efficiency of the system = 89.47%
Utilization of the system = Actual output/Design capacity*100
Utilization of the system = 850/1200*100
Utilization of the system = 0.708333*100
Utilization of the system = 70.83%
Which employee in the Business, Management, and Administration career cluster would most likely work in a cubicle?
Receptionist
Mail Clerk
Sales Representative
Accountant
c sales representative
Suppose the college administrators estimate that the beautification initiative will cost $3,600. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 170 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $18.
Answer:
the questions seems to be incomplete, so I looked for similar ones:
the total benefit of the project is estimated at $18 x 170 = $3,060
the result is probably lower than expected because:
this is an nonexcludable good, and it is nonrival in consumptionthe free rider problem occurs herecollege administrators should not carry out the project id they only base their decision on expected benefitExplanation:
Hoffman Corporation issued $65 million of 5%, 20-year bonds at 104. Each of the 65,000 bonds was issued with 15 detachable stock warrants, each of which entitled the bondholder to purchase, for $26, one share of $1 par common stock. At the time of sale, the market value of the common stock was $31 per share and the market value of each warrant was $4. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Dr Cash $ 67.6 million
Dr Discount on bonds payable
$ 1.3 million
Cr Bonds payable 65million
Cr Equity-stock warrants outstanding $3.9million
Explanation:
Preparation of the journal entry to record the issuance of the bonds
Dr Cash $ 67.6 million
(65,000,000 * 104/100 = $ 67.6 million)
Dr Discount on bonds payable
$ 1.3 million
($65million+$3.9 million-$67.6million)
Cr Bonds payable 65 million
Cr Equity-stock warrants outstanding $3.9million
($4× 15 warrants × 65,000 bonds = $3.9million)
(Being To record issuance of bonds)
The real payoff of driving forces is to help managers understand: A. the extent to which rivals have more than two competitively valuable competencies or capabilities. B. what strategy changes are needed to prepare for the impacts of those driving forces. C. the overall strength of the five competitive forces model versus a strategic group map. D. whether the industry's strategic group map will be static or dynamic. E. what conditions exist in the economy at large.
Answer:
B. what strategy changes are needed to prepare for the impacts of those driving forces.
Explanation:
Driving force analysis is defined as the process by which managers and businesses identify and account for changes that occurs in the industry.
They influence the structure of the industry and also the competitive behaviour of rival companies.
So driving force analysis will help the manager formulate strategies that will mitigate the effects of these driving forces on the company's performance.
Among the ethical and social challenges facing operations managers are a. honoring community commitments b. maintaining a clean environment c. developing safe quality products d. providing a safe workplace e. all of the above
Answer:
e. all of the above
Explanation:
There are several ethical and social challenges that managers need to face today. As organizations are perceived as institutions that promote economic and social well-being and there is a greater demand for measures to protect the environment and society, organizations need to adapt their processes and make the work environment increasingly better, using management practices that promote continuous improvement and reduce productive impacts on the environment. There is a need for security in products, processes, the workplace, transparency in government actions and support for the local community. So it is correct to say that all the alternatives are correct.
The comparative statements of Carla Vista Co. are presented here.
CARLA VISTA CO.
Income Statements
For the Years Ended December 31
2017 2016
Net sales $1,897,540 $1,757,500
Cost of goods sold 1,065,540 1,013,000
Gross profit 832,000 744,500
Selling and administrative expenses 507,000 486,000
Income from operations 325,000 258,500
Other expenses and losses
Interest expense 24,000 22,000
Income before income taxes 301,000 236,500
Income tax expense 94,000 75,000
Net income $ 207,000 $ 161,500
CARLA VISTA CO.
Balance Sheets
December 31
Assets 2017 2016
Current assets
Cash $ 60,100 $ 64,200
Debt investments (short-term) 74,000 50,000
Accounts receivable 124,800 109,800
Inventory 128,000 117,500
Total current assets 386,900 341,500
Plant assets (net) 659,000 530,300
Total assets $1,045,900 $871,800
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 167,000 $152,400
Income taxes payable 45,500 44,000
Total current liabilities 212,500 196,400
Bonds payable 230,000 210,000
Total liabilities 442,500 406,400
Stockholders’ equity
Common stock ($5 par) 290,000 300,000
Retained earnings 313,400 165,400
Total stockholders’ equity 603,400 465,400
Total liabilities and stockholders’ equity $1,045,900 $871,800
All sales were on account. Net cash provided by operating activities for 2017 was $251,000. Capital expenditures were $135,000, and cash dividends were $59,000.
Compute the following ratios for 2017. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)
(a) Earnings per share $
(b) Return on common stockholders’ equity
(c) Return on assets
(d) Current ratio
(e) Accounts receivable turnover
(f) Average collection period
(g) Inventory turnover
(h) Days in inventory
(i) Times interest earned
(j) Asset turnover
(k) Debt to assets ratio
(l) Free cash flow
Answer:
Carla Vista Co.
(a) Earnings per share = $3.57
(b) Return on common stockholders’ equity = 34.31%
(c) Return on assets = 19.79%
(d) Current ratio = 1.82
(e) Accounts receivable turnover = Net Sales/Average Receivable = 16.18 times
(f) Average collection period = 365 Days /Average Receivable Turnover ratio = 22.56 days
(g) Inventory turnover = Cost of goods sold/Average Inventory = 8.68 times
(h) Days in inventory = 42.05 days
(i) Times interest earned = 3.46 times
(j) Asset turnover = 1.81
(k) Debt to assets ratio = Total Debt/Total Assets = 42.31%
(l) Free cash flow = Cash from Operations - Capital Expenditures = $116,000
Explanation:
a) Data and Calculations:
CARLA VISTA CO.
Income Statements
For the Years Ended December 31
2017 2016
Net sales $1,897,540 $1,757,500
Cost of goods sold 1,065,540 1,013,000
Gross profit 832,000 744,500
Selling and administrative expenses 507,000 486,000
Income from operations 325,000 258,500
Other expenses and losses:
Interest expense 24,000 22,000
Income before income taxes 301,000 236,500
Income tax expense 94,000 75,000
Net income $ 207,000 $ 161,500
CARLA VISTA CO.
Balance Sheets
December 31
Assets 2017 2016
Current assets
Cash $ 60,100 $ 64,200
Debt investments (short-term) 74,000 50,000
Accounts receivable 124,800 109,800
Inventory 128,000 117,500
Total current assets 386,900 341,500
Plant assets (net) 659,000 530,300
Total assets $1,045,900 $871,800
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 167,000 $152,400
Income taxes payable 45,500 44,000
Total current liabilities 212,500 196,400
Bonds payable 230,000 210,000
Total liabilities 442,500 406,400
Stockholders’ equity
Common stock ($5 par) 290,000 300,000
Retained earnings 313,400 165,400
Total stockholders’ equity 603,400 465,400
Total liabilities and
stockholders’ equity $1,045,900 $871,800
Net cash provided by operating activities for 2017 = $251,000
Capital expenditures = $135,000,
2017 Ratios:
(a) Earnings per share = $207,000 ($ /58,000 shares) = $3.57
(b) Return on common stockholders’ equity = $207,000/$603,400 * 100 = 34.31%
(c) Return on assets = $207,000/$1,045,900 * 100 = 19.79%
(d) Current ratio = $386,900/212,500 = 1.82
Average Receivable = ($124,800 + 109,800)/2 = $117,300
(e) Accounts receivable turnover = Net Sales/Average Receivable
= $1,897,540/$117,300 = 16.18 times
(f) Average collection period = 365 Days /Average Receivable Turnover ratio. = 365/16.18 = 22.56 days
Average Inventory = ($128,000 + 117,500)/2 = $122,750
(g) Inventory turnover = Cost of goods sold/Average Inventory = $1,065,540/122,750 = 8.68 times
(h) Days in inventory = 365/8.68 = 42.05 days
(i) Times interest earned = Earnings before interest & taxes / Tax expense = $325,000/$94,000 = 3.46 times
(j) Asset turnover = Net Sales/Assets = $1,897,540/$1,045,900 = 1.81
(k) Debt to assets ratio = Total Debt/Total Assets = $442,500/$1,045,900 * 100 = 42.31%
(l) Free cash flow = Cash from Operations - Capital Expenditures = $251,000 - $135,000 = $116,000
Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May:
1 Rainier Company Yakima Company
2 Materials inventory, May 1 $100,000.00 $48,200.00
3 Materials inventory, May 31 (a) 50,000.00
4 Materials purchased 950,000.00 710,000.00
5 Cost of direct materials used in production 938,500.00 (a)
6 Direct labor 2,860,000.00 (b)
7 Factory overhead 1,800,000.00 446,000.00
8 Total manufacturing costs incurred May (b) 2,484,200.00
9 Total manufacturing costs 5,998,500.00 2,660,600.00
10 Work in process inventory, May 1 400,000.00 176,400.00
11 Work in process inventory, May 31 382,000.00 (c)
12 Cost of goods manufactured (c) 2,491,500.00
13 Finished goods inventory, May 1 615,000.00 190,000.00
14 Finished goods inventory, May 31 596,500.00 (d)
15 Sales 9,220,000.00 4,550,000.00
16 Cost of goods sold (d) 2,470,000.00
17 Gross profit (e) (e)
18 Operating expenses 1,000,000.00 (f)
19 Net income (f) 1,500,000.00
Required:
a. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
b. Prepare Yakima Company’s statement of cost of goods manufactured for May. For those boxes in which you must enter subtracted or negative numbers use a minus sign.*
c. Prepare Yakima Company’s income statement for May. Enter all amounts as positive numbers.*
* Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
Starting Question
a. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
Letter Rainier Company Yakima Company
a.
b.
c.
d.
e.
f.
Statement of Cost of Goods Manufactured
b. Prepare Yakima Company’s statement of cost of goods manufactured for May. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Yakima Company
Statement of Cost of Goods Manufactured
For the Month Ended May 31
1
2
Direct materials:
3
4
5
6
7
8
9
10
11
Total manufacturing costs
12
13
c. Prepare Yakima Company’s income statement for May. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers.
Yakima Company
Income Statement
For the Month Ended May 31
1
2
Cost of goods sold:
3
4
5
6
7
8
9
10
Answer:
(a) $190,000
(b) $2,185,000
(c) $3,125,900
(d) $841,090
(e) $561,260
(f) $1,200,000
Explanation:
Rainier and Yakima Company several balances are omitted. These are calculated with reverse calculation. The material inventory at beginning of may is added with the purchases made and then ending inventory is subtracted to identify cost of goods manufactured.
The following information applies to the questions displayed below.
On October 29, 2014, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company’s cost per new razor is $20 and its retail selling price is $75 in both 2014 and 2015. The manufacturer has advised the company to expect warranty costs to equal 8% of dollar sales. The following transactions and events occurred.
2014
Nov. 11 Sold 105 razors for $7,875 cash.
30 Recognized warranty expense related to November sales with an adjusting
entry.
Dec. 9 Replaced 15 razors that were returned under the warranty.
16 Sold 220 razors for $16,500 cash.
29 Replaced 30 razors that were returned under the warranty.
31 Recognized warranty expense related to December sales with an adjusting
entry.
2015
Jan. 5 Sold 150 razors for $11,250 cash.
17 Replaced 50 razors that were returned under the warranty.
31 Recognized warranty expense related to January sales with an adjusting
entry.
Required
1. Prepare journal entries to record these transactions and adjustments.
2. How much warranty expense is reported for November and for December?
3. How much warranty expense is reported for January?
4. What is the balance of the Estimated Warranty Liability account as of December 31?
5. What is the balance of the Estimated Warranty Liability account as of January 31?
Answer:
Lobo Co.
Journal Entries:
Nov. 11 Debit Cash $7,875
Credit Sales Revenue $7,875
To record the sale of 105 razors for cash.
Nov. 11 Debit Cost of Goods Sold $2,100
Credit Inventory $2,100
To record the cost of goods sold for 105 razors at $20 each.
Dec. 16: Debit Cash $16,500
Credit Sales Revenue $16,500
To record the sale of 220 razors for cash.
Debit Cost of Goods Sold $4,400
Credit Inventory $4,400
To record the cost of goods sold.
Jan. 5: Debit Cash $11,250
Credit Sales Revenue $11,250
To record the sale of 150 razors for cash.
Debit Cost of Goods Sold $3,000
Credit Inventory $3,000
To record the cost of goods sold.
Adjusting Journal Entries:
Nov. 30: Debit Warranty Expense $630
Credit Warranty Liability $630
To record the warranty expense for November sales.
Dec. 9: Debit Warranty Liability $300
Credit Inventory $300
To replace 15 razors.
Dec. 16: Debit Warranty Expense $1,672
Credit Warranty Liability $1,672
To record the warranty expense for December sales.
Dec. 29: Debit Warranty Liability $600
Credit Inventory $600
To replace 30 razors.
Dec. 31: Debit Income Summary $2,302
Credit Warranty Expense $2,302
To recognize the warranty expense for the period.
Jan. 5: Debit Warranty Expense $900
Credit Warranty Liability $900
To record warranty expense for January sales.
Jan. 17: Debit Warranty Liability $1,000
Credit Inventory $1,000
To record the replacement of 50 razors.
Jan. 31: Debit Warranty Expense $100
Credit Warranty Liability $100
To recognize warranty expense for January sales.
2. The Warranty Expense for November is $630 and for December is $1,602.
3. The Warranty Expense for January is: $1,000
4. The balance of the Estimated Warranty Liability account as of December 31 is:
= $1,402
5. The balance of the Estimated Warranty Liability account as of January 31 is:
= $1,302
Explanation:
a) Data and Calculations:
Cost per new razor = $20
Retail selling price = $75
Expected warranty costs = 8% of dollar sales
b) Estimated Warranty Liability Account:
Nov. 30: Credit Warranty Liability $630
Dec. 9: Debit Warranty Liability ($300)
Dec. 16: Credit Warranty Liability $1,672
Dec. 29: Debit Warranty Liability ($600)
Dec. 31: Balance $1,402
Jan. 5: Credit Warranty Liability $900
Jan. 17: Debit Warranty Liability ($1,000)
Jan. 31 Balance $1,302
Warranty Expense Account:
Nov. 30: Debit Warranty Expense $630
Dec. 16: Debit Warranty Expense $1,672
Dec. 31: Debit Income Summary $2,302
Jan. 5: Debit Warranty Expense $900
Jan. 31: Debit Warranty Expense $100
Jan. 31: Debit Income Summary $1,000
A for-profit institution that works with the general public to open and manage
savings accounts is known as a(n).
A. commercial bank
B. savings bank
C. credit union
D. investment bank
Answer:
B. savings bank
Explanation:
Savings bank is defined as a bank which helps customers or people to invest or deposit in interest giving accounts that will give a long term investment.
Savings bank were started in Europe in the 19th century. Saving banks gives interest on the deposit amount that is why its is a for-profit institution for general public. The interest saving banks give by investing in government and corporate debt.
Hence, the correct answer is "B. savings bank".
Instructions
1. Column C. should be type asset liabilitt revenue equity or expense
2. Coloumn D OR E should have a YES OR NO.
3. Fill in debit or credit- which is normal balance of the account, (INCREASE SIDE)
4. Fill in which type of account is it? Temporary or permanent.
Account Name Type: Asset, Will be Will be Normal Temporary or
liability, equity, on the on the Balance Permanent
revenue or Income balance is Debit
Expense statement Sheet or Credit
Cash
Capital Stock
Mortgage Payable
Interest Receivable
Supplies
Account Payable
Short Term Investments
Repair Expense
Unearned Service Revenue
Equipment
Depreciation Expense
Interest Revenue
Salaries Expense
Retained Earnings
Accumulated Depreciation
Utilites Expense
Salaries Payable
Account Receivable
Notes Payable
Service Revenue"
Answer:
I attached a picture of an Excel table I used to work this. I also attached the proper format of the question that I found that helped answer this.
A bond with face value of $500,000 has a bid quote of 99.1227 and an asked quote of 99.3996. How much will you, an investor, pay to purchase 10 of these bonds
Answer: 4969980
Explanation:
Based on the information given in the question, the following can be deduced:
Face value = $500,000
Bid quote = 99.1227
Ask quote = 99.3996
The amount that will be paid by an investor to purchase 10 of these bonds will be:
= 10 × Face value × Ask price
= 10 × 500000 × 99.3996%
= 10 × 500000 × 0.993996
= 4969980
The following is selected information from Windsor, Inc. for the fiscal year ending October 31, 2022. Cash received from customers $129000 Revenue recognized 193500 Cash paid for expenses 73100 Cash paid for computers on November 1, 2021 that will be used for 3 years 20640 Expenses incurred including any depreciation 102340 Proceeds from a bank loan, part of which was used to pay for the computers 43000 Based on the accrual basis of accounting, what is Windsor's net income for the year ending October 31, 2022
The following data are for the two products produced by Tadros Company. Product A Product BDirect materials$20 per unit $30 per unit Direct labor hours 0.5 DLH per unit 1.5 DLH per unit Machine hours 0.4 MH per unit 1.2 MH per unit Batches 200 batches 360 batches Volume 16,000 units 3,600 units Engineering modifications 20 modifications 80 modifications Number of customers 800 customers 720 customers Market price$55 per unit $220 per unitThe company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Cost Driver Indirect manufacturing Engineering support$53,600 Engineering modifications Electricity 53,600 Machine hoursSetup costs 160,800 Batches Nonmanufacturing Customer service 121,600 Number of customers
1.1 Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours.
1.2 What is the gross profit per unit?
2.1 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead rate?
2.2 What is the cost of providing customer service to each customer?
Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate?
3.1 Determine the manufacturing cost per unit of each product line using ABC.
3.2 What is the gross profit per unit?
4.1 How much gross profit is generated by each customer of Product A and Product B using ABC?
4.2 Is the gross profit adequate for each customer of Product A and B using ABC?
5. Which method of product costing gives better information to managers of this company?
a. Plantwide overhead rate method
b. Departmental overhead rate method
c. Activity-based costing method
Answer:
Tadros Company
Plantwide method:
Product A Product B
1.1. Manufacturing cost per unit $40 $85
1.2 Gross profit per unit $15 $135
2.1 Gross profit per customer $300 $675
2.2 Customer of customer to each customer is:
= $80
The gross profit is adequate for each customer.
ABC method:
Product A Product B
3.1The Manufacturing cost per unit $36.26 $101.61
3.2 Gross profit per unit $18.74 $118.39
4.1 Gross profit per customer $374.85 $591.94
4.2 Cost of customer service to each customer is $80.
The Gross profit per customer is adequate.
5. The ABC product costing method gives better information to managers of Tadros Company.
c. Activity-based costing method
Explanation:
a) Data and Calculations:
Product A Product B
Direct materials $20 per unit $30 per unit
Direct labor hours 0.5 DLH/unit 1.5 DLH per unit
Total direct labor hours 8,000 (0.5*16,000) 5,400 (1.5*3,600)
Direct labor costs $160,000 ($20*8,000) $108,000 ($20*5,400)
Machine hours 0.4 MH per unit 1.2 MH per unit
Batches 200 batches 360 batches
Volume 16,000 units 3,600 units
Engineering modifications 20 modifications 80 modifications
Number of customers 800 customers 720 customers
Market price $55 per unit $220 per unit
Direct labor rate = $20 per direct labor hour (DLH).
Overhead rates based:
a. Plantwide Method:
Total manufacturing overhead costs/Total direct labor hours
$268,000/13,400 = $20
Cost of production:
Product A Product B
Direct materials per unit $320,000 $90,000
Direct labor hours per unit DLH 160,000 108,000
Overhead costs 160,000 108,000
Total production costs $640,000 $306,000
Volume 16,000 units 3,600 units
Manufacturing cost per unit $40 $85
Income Statement:
Product A Product B
Sales Revenue ($55 and $220) $880,000 $792,000
Total production costs 640,000 306,000
Gross profit $240,000 $486,000
Volume 16,000 units 3,600 units
Gross profit per unit $15 $135
Gross profit $240,000 $486,000
Customers 800 customers 720 customers
Gross profit per customer $300 $675
b. Departmental Method:
c. ABC Method:
Additional information follows:
Cost Pools Overhead Costs Driver
Indirect manufacturing
Engineering support $ 53,600 Engineering modifications
Electricity 53,600 Machine hours
Setup costs 160,800 Batches
Nonmanufacturing
Customer service 121,600 Number of customers
Overhead rate using ABC:
Cost Pools Overhead Costs Driver Rates
Indirect manufacturing
Engineering support $ 53,600 100 modifications = $536
Electricity 53,600 10,720 Machine hours $5
Setup costs 160,800 560 Batches $287
Customer service 136,800 1,520 customers $90
Cost of production:
Product A Product B
Direct materials per unit $320,000 $90,000
Direct labor hours per unit DLH 160,000 108,000
Overhead costs:
Engineering support 10,720 42,880
Electricity 32,000 21,600
Setup costs 57,400 103,320
Total production costs $580,120 $365,800
Volume 16,000 units 3,600 units
Manufacturing cost per unit $36.26 $101.61
Income Statement:
Product A Product B
Sales Revenue ($55 and $220) $880,000 $792,000
Total production costs 580,120 365,800
Gross profit $299,880 $426,200
Volume 16,000 units 3,600 units
Gross profit per unit $18.74 $118.39
Gross profit $299,880 $426,200
Customers 800 customers 720 customers
Gross profit per customer $374.85 $591.94
Total production costs $580,120 $365,800
Customers 800 customers 720 customers
Cost per customer $725.15 $508.06
Customer service costs
Customer service $121,600/1,520 = $80
On January 1, Smith Industries leased equipment to a customer for a four-year period, at which time possession of the leased asset will revert back to Smith. The equipment cost Smith $425,000 and has an expected useful life of six years. Its normal sales price is $425,000. The residual value after four years is $100,000. Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. The interest rate is 8%. Calculate the amount of the annual lease payments. (Round your answer to the nearest whole dollar.)
Answer:
The amount of the annual lease payments is $98,124.
Explanation:
This can be calculated using the formula for calculating loan amortization as follows:
P = (A * (r * (1 + r)^n)) / (((1+r)^n) - 1) .................................... (1)
Where,
P = Annual lease payments = ?
A = Amount to be recovered through periodic lease payments = Equipment cost - Residual value = $425,000 - $100,000 = $325,000
r = interest rate = 8%, or 0.08
n = Number of years of lease term = 4
Substituting all the figures into equation (1), we have:
P = ($325,000 * (0.08 * (1 + 0.08)^4)) / (((1+0.08)^4) - 1)
P = $98,124.2614475627
Rounding to the nearest whole dollar as required, we have:
P = $98,124
Therefore, the amount of the annual lease payments is $98,124.
After changes to the copyright law in 1978, for how long is intellectual property protected?
A.
the lifetime of the artist plus 70 years
B.
100 years
C.
for the lifetime of the artist
D.
in perpetuity
Which critical factor must Mac, an entrepreneur, consider to select his suppliers?
A.
the assurance that the supplier will provide 100 percent original material
B.
the assurance that the supplier will always provide a flat discount rate regardless of the market condition
C.
the assurance that the supplier will be able to meet urgent and immediate demands at all times
D.
the assurance that Mac will earn customer loyalty by producing goods sold by the supplier
E.
the assurance that Mac’s business will expand every financial year
Answer:
c
Explanation:
Which of the following increases the equilibrium price of a used car and decreases the equilibrium quantity? an announcement by the U.S. Attorney General that the windows on older cars were made with cheaper glass that can explode at high speeds new federal legislation that raises the legal driving age to twenty-four in all states a new fee that used car dealers must pay to the government on all sales of used cars all of the above because each is consistent with the "law of demand"
A market-clearing price, often referred to as an equilibrium price, is the consumer cost associated with a good or service when supply and demand are equal or nearly equal. Hence quantity will increase .
What is Equilibrium price and quantity ?The manufacturer or vendor is free to transfer as many units as they like, and the consumer is free to access as many units as they like.
Economic equilibrium in economics refers to a scenario where supply and demand are balanced and the values of economic variables do not change in the absence of external factors.
The only price at which consumer and producer preferences coincide is the equilibrium price; in other words, the price at which consumers want to purchase the same quantity of the good (quantity demanded) as producers do.Manufacturers want to sell (quantity supplied).
The equilibrium quantity is that amount that both parties seek equally. Any other price causes the market to be out of equilibrium since the amount requested does not match the quantity supplied. From the previous explanations of surpluses and shortages, it should be obvious that if a market is out of equilibrium, market forces will drive it into equilibrium.
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# SPJ 2
define nationalization.
Answer:
the process of transforming privately owned assets into public assets by bringing them under the public ownership of a national government or state.
Explanation:
Two methods can be used to produce solar panels for electric power generation. Method 1 will have an initial cost of $740,000, an AOC of $190,000 per year, and $135,000 salvage value after its 3-year life. Method 2 will cost $870,000 with an AOC of $135,000 and a $170,000 salvage value after its 5-year life. Assume your boss asked you to determine which method is better, but she wants the analysis done over a three-year planning period. You estimate the salvage value of Method 2 will be 37% higher after three years than it is after five years. If the MARR is 14% per year, which method should the company select
Answer:
method 2 should be selected
Explanation:
The computation is shown below:
For Method 1
Value = $740,000 + $190,000 ÷ 1.14 + $190,000 ÷ 1.14^2 + $190,000 ÷ 1.14^3 - $135,000 ÷ 1.14^3
= $1,089,988.93
For Method 2
Value = $870,000 + $135,000 ÷ 1.14 + $135,000 ÷ 1.14^2 + $135,000 ÷ 1.14^3 - $170,000 × 1.37 ÷ 1.14^3
= $1,026,219.458
As we can see that in the method 2 there is a less cost as compared with method 1
So, method 2 should be selected
The Central Publishing Company is about to publish its first reference book in managerial economics. It is now in the process of estimating costs. It expects to produce 10,000 copies during its first year. The following costs have been estimated to correspond to the expected copies.
a. Paper Stock $8.000
b. Typesetting $15,000
c. Printing $50,000
d. Art (including graphs) $9.000
e. Editing $20,000
f. Reviews $3,000
g. Promotion and advertising $12,000
h. Binding $22.000
i. Shipping $10,000
In addition to the preceding costs, it expects to pay the authors a 13 percent royalty and its salespeople a 3 percent commission. These percentages will be based on the publisher’s price of $48 per book. Some of the preceding costs are fixed and others are variable. The average variable costs are expected to be constant. Although 10,000 copies is the projected volume, the book could sell anywhere between 0 and 20,000 copies.
Using the preceding data,
1. Write equations for total cost, average total cost, average variable cost, and marginal cost.
2. Draw the cost curves for quantities from 0 to 20,000 (in intervals of 2,000).
Answer:
Total Cost is the cost that is fixed and does not vary directly with the level of output. According to this question typesetting, printing, editing, reviews, promotion, and advertising are fixed costs. The total fixed cost here is $100000.
Total Variable Cost is the costs that vary directly with the level of output. Variable costs are incurred on variable factors. The Total Variable Cost here is $49000.
Marginal cost is addition to the total cost when one more unit of output is produced.
EQUATIONS
TC = 100000 + 4.9Q
ATC = 100000 + 4.9Q / Q
AVQ = 4.9Q / Q
MC = Change in Total Cost / Change in Quantity = 4.9
GRAPH
Is attached as picture.
Conclusion: The AVC and MC both are equal to 4.9.
Milton Mende purchased the Star Midas Mining Co., Inc., for $6,500. This Nevada corporation was a shell corporation with no assets. Mende changed the name of the corporation to American Equities Corporation (American Equities) and hired Bernard Howard to prepare certain accounting reports so that the company could issue securities to the public. In preparing the financial accounts, Howard (1) made no examination of American Equities' books; (2) falsely included an asset of more than $700,000 on the books, which was a dormant mining company that had been through insolvency proceedings; (3) included in the profit and loss statement companies that Howard knew American Equities did not own; and (4) recklessly stated as facts things of which he was ignorant. Did Howard act unethically
Answer:
Yes. Howard acted unethically as a professional accountant.
Explanation:
With the stated actions of Howard, it is very clear that he did not follow the ethics of his profession. To act ethically as an accountant, Howard should have observed the ethical conducts expected of a professional account. They include observing integrity, confidentiality, and objectivity, demonstrating professional competence and due care, and acting in the public interest. Through his stated reckless assertions, misrepresentation of facts and figures, and lack of due professional care, Howard demonstrated the highest form of unethical behavior.
At December 31, 2020 and 2021, Oriole Company had outstanding 4000 shares of $100 par value 6% cumulative preferred stock and 18800 shares of $10 par value common stock. At December 31, 2020, dividends in arrears on the preferred stock were $13000. Cash dividends declared in 2021 totaled $44600. What amounts were payable on each class of stock
Answer:
See below
Explanation:
2020 2021
Allocation to preferred stock
Nil 44,600
Remainder to common stock
Nil 20,000
Explain the positive and negative aspects of entrepreneurship. Draw evidence to support your claim from two other sources.
Answer:
Advantage #1: A flexible schedule – both in terms of when and where you work. ...
Advantage #3: It's exciting and fulfilling. ...
Advantage #4: The salary makes sense. ...
Disadvantage #1: You wear a lot of hats. ...
Disadvantage #2: You are always at work.
Explanation:
The positive (advantages) and negative aspects (disadvantages) of entrepreneurship are enumerated below:
Control: Entrepreneurship offers the entrepreneur a sense of being in charge and being the captain of the ship. With freedom of control comes increased risk of business failure.Responsibility: The entrepreneur is responsible for her income for life sustenance. There is no more reliance on a period paycheck. The entrepreneur can decide to delight her customers or to scare them away.Flexibility: The entrepreneur enjoys flexibility in work schedule. She works at her own pace. The downside is that your customers dictate when you work. The workload may increase more than your capacity to handle. Thus, flexibility does not happen always until you have established the business properly.Profit-making: As the business makes profits, the entrepreneur is entitled to receive all. When it makes losses, the entrepreneur similarly bears all.Thus, there are numerous benefits in being an entrepreneur. But there are also negative aspects of entrepreneurship.
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The ledger of Blue Spruce Company contains the following balances: Retained Earnings $30,500, Dividends $2,500, Service Revenue $50,500, Salaries and Wages Expense $26,500, and Supplies Expense $7,000. The closing entries are as follows:
(1) Close revenue accounts.
(2) Close expense accounts.
(3) Close net income/(loss).
(4) Close dividends.
Enter the balances in T-accounts, and post the closing entries.
Salaries and Wages Expense select an option Bal. enter a debit amount 26500 select an option enter a credit balance
Supplies Expense select an option enter a debit amount select an option Bal. enter a credit balance 7000
Service Revenue select an option (1) enter a debit balance 50500 select an option Bal. enter a credit amount 50500
Dividends select an option (4) enter a debit amount 2500 select an option Bal. enter a credit balance 2500
Income Summary select an option enter a debit amount 26500 select an option enter a credit amount 50500
select an option enter a debit balance 7000
select an option enter a credit balance 2500
Retained Earnings select an option enter a debit amount
select an option enter a credit amount
select an option enter a debit amount
select an option enter a credit amount
select an option enter a debit balance
select an option enter a credit balance
Answer:
Blue Spruce Company
Closing Entries:
1. Close Revenue Accounts:
Debit Service Revenue $50,500
Credit Income Summary $50,500
To close the service revenue account to the income summary.
2. Close Expense Accounts:
Debit Income Summary $26,500
Credit Salaries and Wages Expense $26,500
To close the salaries and wages expense account to the income summary.
Debit Income Summary $7,000
Credit Supplies Expense $7,000
To close the supplies expense account to the income summary.
3. Close net Income/(Loss):
Debit Net Income $17,000
Credit Retained Earnings $17,000
To close the net income to retained earnings.
4. Close Dividends:
Debit Retained Earnings $2,500
Credit Dividends $2,500
To close the dividends account to retained earnings.
Explanation:
a) Data and Calculations:
Retained Earnings $30,500
Dividends $2,500
Service Revenue $50,500
Salaries and Wages Expense $26,500
Supplies Expense $7,000
Mini-Income Statement:
Service Revenue $50,500
Salaries and Wages Expense $26,500
Supplies Expense $7,000 33,500
Net income for the year $17,000
b) The above entries close the temporary accounts to the income summary where the net income is determined for the year. The net income and dividends are thereafter closed to the retained earnings, which is a permanent account that will appear in the balance sheet and the next accounting period.
Fast Co. produces its product through two processing departments. Direct materials are added at the start of production in the Cutting department, and conversion costs are added evenly throughout each process. The company uses monthly reporting periods for its weighted-average process costing system. The Work in Process Inventory-Cutting account has a balance of $89,300 as of October 1, which consists of $18,600 of direct materials and $70,700 of conversion costs. During the month, the Cutting department incurred the following costs: Direct materials$141,150Conversion 915,400At the beginning of the month, 32,500 units were in process. During October, the company started 145,000 units and transferred 155,000 units to the Assembly department. At the end of the month, the Cutting department's work in process inventory consisted of 22,500 units that were 80% complete with respect to conversion costs.
Required:
1. Prepare the company's process cost summary for October using the weighted-average method.
2. Prepare the journal entry dated October 31 to transfer the cost of the completed units to finished goods inventory
Answer:
Part 1
Fast Co.
Process cost summary for October
Cost Summary :
Completed units to finished goods inventory = $1,023,000
Units in Ending Work In Process = $122,850
Part 2
Journal Entry to transfer the cost of the completed units to finished goods inventory
Debit : Finished Goods $1,023,000
Credit : Assembly Department $1,023,000
Explanation:
It is important to note Fast Co. uses weighted-average method. This means we are only interested in the Equivalent units of units completed and transferred and units in Ending Work in Process.
Step 1 ; Calculate Equivalent Units of Production
Materials = 155,000 x 100 % + 22,500 x 100 % = 177,500 units
Conversion Costs = 155,000 x 100 % + 22,500 x 80 % = 173,000 units
Step 2 : Calculate Total Cost of Materials and Conversion Cost
Materials = $18,600 + $141,150 = $159,750
Conversion Cost = $70,700 + $915,400 = $986,100
Step 3 : Calculate the Equivalent Cost per Unit
Materials = $159,750 ÷ 177,500 units = $0.90
Conversion Costs = $986,100 ÷ 173,000 units = $5.70
Total = $0.90 + $5.70 = $6.60
Step 4 : Cost of completed units to finished goods inventory
Completed units to finished goods inventory = $6.60 x 155,000 units
= $1,023,000
Step 5 : Cost of units in Ending Work In Process
Units in Ending Work In Process = $0.90 x 22,500 + $5.70 x 18,000
= $122,850