Answer:
M2 Will be unchanged
while M1 will decrease by $100
Explanation:
M1 will be the cash and coins + checking account + traveler check (it is consideread near-money)
Takeoff Transactions is whitin the M1 metric. Quavo transactions is not included thus, M1 decrease by 100
While M2 includes M1 and it adds the saving deposits thereofre, Quavo operation is included in this concept so we get:
-200 from takoff + 100 from Quavo = zero
No change arise from the combination of this transactions.
Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.15 direct labor-hours. The direct labor rate is $7.00 per direct labor-hour. The production budget calls for producing 6,500 units in April and 6,200 units in May. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?
Answer:
$13,335
Explanation:
Required production in units for April and May are 6,500 units and 6,200 units respectively.
Direct labor hours needed is 0.15 for both months.
Total direct labor hours needed for each month would be;
April
= 6,500 units × 0.15
= 975
May
=6,200 units × 0.15
= 930
Direct labor rate per hour for each months is $7
Total direct labor cost for April would be;
= $7 × 975
= $6,825
Total direct labor cost for May would be;
= $7 × 930
= $6,510
Therefore, total direct labor cost for both months April and May would be;
= $6,825 + $6,510
= $13,335
An important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is:
Answer:
Cost-volume-profit analysis.
Explanation:
An important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is cost-volume-profit analysis. It is an important tool in accounting that is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating financial statements, both income and net income. It is also an accounting concept known as the break even analysis.
In order to use this cost-volume-profit analysis, accountants usually make some assumptions and these are;
1. Sales price per unit product is kept constant.
2. Variable costs per unit product are kept constant.
3. Total fixed costs of production are kept constant.
4. All the units produced are sold.
5. The costs accrued are as a result of change in business activities.
6. A company selling more than a product should simply sell in the same mix.
Estimating Allowance for Doubtful Accounts
Evers Industries has a past history of uncollectible accounts, as follows.
Age Class Percent Uncollectible
Not past due 1%
1-30 days past due 3
31-60 days past due 12
61-90 days past due 30
Over 90 days past due 75
Estimate the allowance for doubtful accounts, based on the aging of receivables information provided in the chart below. Evers Industries Estimate of Allowance for Doubtful Accounts Total recelvables Percentage uncollectible Allowance for doubtful accounts Balance 1,124,500 Not Past Due 607,400 196 Days Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due Over 90 233,000 121600 12% 96500 30% 66000 75%
Answer:
Allowance for doubtful accounts $ 106106 using the aging method
Explanation:
Evers Industries
Estimate of Allowance for Doubtful Accounts
Balance Not Past Past Due (days)
Due (1-30) (31-60) (61-90) (Over 90)
Total
Receivables 1,124,500 607,400 233,000 121600 96500 66000
Percentage
Uncollectible 1% 3% 12% 30% 75%
Allowance for 6074 6990 14592 28950 49500
doubtful accounts 106106
We multiply each percent with the amount given and then add them all to get the total which is $106106 based on aging method.
The estimation of the Allowance for doubtful accounts should be $106,106 using the aging method.
Calculation of the estimation of the Allowance for doubtful accounts:Balance Not Past Past Due (days)
Due (1-30) (31-60) (61-90) (Over 90)
Total
Receivables 1,124,500 607,400 233,000 121600 96500 66000
Percentage
Uncollectible 1% 3% 12% 30% 75%
Allowance for 6074 6990 14592 28950 49500
doubtful accounts 106106
We multiply each percent by the amount given and then add them all to get the total which is $106106 based on aging method.
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The American Red Cross and the American Medical Association are nonprofit businesses. This is because they: A. plan to make a profit by selling services to other countries. B. exist to benefit a cause but not to make a profit. C. share profits with top management but not with workers. D. sell services directly to customers to make a higher profit.
Answer:B exist to benefit a cause but not to make a profit.
Explanation:
They are to provide services which are useful to the members of the society at large. They exist to promote the interest of members of the public which are social in nature. With a view to ensure the smooth running of the organisation some individuals are elected to run the organisation in the position of chairman, secretary, and treasurer. They do prepare receipt and payment account which is similar to cash account while some do prepare income and expenditure account which is similar to profit and loss account.
Which of the following is not required to prove innocent representation?
A. The fact asserted was material.
B. The fact asserted constituted a mistake of law.
C. The complaining party's reliance was reasonable.
D. The complaining party entered the contract because of his reliance on the fact asserted.
Answer:
I think it is C
hope I'm right
debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 1,000 pounds, 20% completed $2,800* *Direct materials (1,000 X $2.6) $2,600 Conversion (1,000 X 20% X $1) 200 $2,800 Coffee beans added during August, 31,000 pounds 79,050 Conversion costs during August 33,748 Work in process, August 31, 1,600 pounds, 30% completed ? Goods finished during August, 30,400 pounds ? All direct materials are placed in process at the beginning of production. a. Prepare a cost of production report, presenting the following computations: Direct materials and conversion equivalent units of production for August. Direct materials and conversion costs per equivalent unit for August. Cost of goods finished during August. Cost of work in process at August 31.
Answer:
Costs per Equivalent Unit Materials 2.5515 Conversion 1.1576
Cost of goods finished during August. $ 112759.83
Work In Process Ending Costs $ 4638.05
Explanation:
The equivalent units are found by adding the percent of ending WIP to the completed units.
Equivalent Units
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
End. WIP 1600 100 30 1600 480
Completed 30400 100 100 30400 30400
Equivalent Units 32000 30880
Costs Accounted For:
Costs Materials Conversion
Beg. WIP $2600 200
Costs Added 79050 33748
Total Costs 81650 35748
Equivalent Units 32000 30880
Costs per Equivalent 81650/32000 35748/30880
Unit = 2.5515 1.1576
Cost of goods finished during August. $ 112759.83
Materials = 2.5515 * 30400= 77567.5
Conversion = 1.1576 * 30400= 35192.33
Total Costs of finished Goods = 112759.83
Work In Process Ending Costs $ 4638.05
Materials = 2.5515 * 1600= 4082.4
Conversion = 1.1576 * 480= 555.648
Total Costs :
Finished Goods + Work In Process Ending Costs = 112759.83+4638.05
= 117 397.88 ≅117398.0
Costs Accounted For
Materials Costs + Conversion Costs = (81650 +35748) 117398.0
Note: The CPR is correct when both the total costs calculated and accounted for are equal.
Parton and Sons is a law firm that uses activity-based costing. Classify these activities as value-added or non-value-added:
a. Taking appointments
b. Reception
c. Meeting with clients
d. Bookkeeping
e. Court time
f. Meeting with opposing attorneys
g. Billing
h. Advertising
Answer:
The answer is:
A - Non-value-added
B - Non-value-added
C- Value-added
D- Non-value-added
E - Value-added
F - Value-added
G - Non-value-added
H- Non-value-added
Explanation:
In activity-based costing, Non-value-added activities are activities that add costs to ones product without enhancing the value while value-added is a cost that enhance the quality of a product or service.
A - Non-value-added
B - Non-value-added
C- Value-added
D- Non-value-added
E - Value-added
F - Value-added
G - Non-value-added
H- Non-value-added
A buyer and a seller enter into a real estate sales contract. Under the contract's terms, the buyer will pay the seller $500 a month for 10 years. The seller will continue to hold legal title, while the buyer will live in the home and pay all real estate taxes, insurance premiums, and regular upkeep costs. What kind of contract do the buyer and seller have
Answer: Land Sales Contract
Explanation:
Land Sales contract are a way to buy a property for people who would otherwise be unable to buy one because they were unable to get a mortgage or are running low in funds.
It works by the buyer paying the seller a certain amount of money for a period of time according to an agreement. During this period of payment, the seller continues to hold the legal rights to the property and then passes it to the buyer when they are finished paying. In this scenario therefore, the seller effectively plays the role of a mortgage bank.
9. The risk-free rate and the expected market rate of return are 5.6% and 12.5%, respectively. According to the capital asset pricing model (CAPM), the expected rate of return on a security with a beta of 1.25 is equal to
Answer:
21.2%
Explanation:
CAPM = risk free rate +( beta x expected market return)
5.6% + (1.25 x 12.5%) = 21.2%
A financial asset is liquid: Group of answer choices if it can be readily exchanged for another asset or good. if it is held by the public and earning interest. only if it takes the form of cash. if it can be carried easily from one place to another.
Answer:
if it can be readily exchanged for another asset or good
Explanation:
An asset is liquid if it can be easily be exchanged for another asset or good or converted to cash. cash ( currency) is the most liquid asset.
an house for example is less liquid when compared to cash. this is because before it can be converted to cash or exchanged for another asset, it must first be valued, then we have to find a buyer and this process can range from days to years. this makes a house less liquid when compared with a house.
A firm contemplating foreign expansion must make three basic decisions: which markets to enter, when to enter those markets, and on what scale. Once a firm decides to enter a foreign market, the question arises as to the best mode of entry. Firms can use six different modes to enter foreign markets: exporting, turnkey projects, licensing, franchising, establishing joint ventures with a host-country firm, or setting up a new wholly owned subsidiary in the host country. Each entry mode has advantages and disadvantages.
Read each advantage and disadvantage listed below and then match it to corresponding mode.
a. Development cost and operational Strategy
b. Costs, risks, and profits
c. Manufacturing and transportation costs
d. Host country and controls
e. FDI and foreign country
f. Risks and capital investment
1. Exporting
2. Turnkey Contracts
3. Licensing
4. Franchising
5. Joint Ventures
6. Who Ply-own
7. Subsidiaries
Answer:
1. Exporting - c. Manufacturing and transportation costs
2. Turnkey Contracts e. FDI and foreign country
3. Licensing f. Risk and Capital investment
4. Franchising d. Host country and controls
5. Joint Venture - a. Development cost and Operational Strategy
6. Who Ply-own - Risks and profits
7. Subsidiaries - b. Costs, risks and profits
Explanation:
Exporting is beneficial for a country as it brings money to the country but it has many disadvantages. There is high manufacturing and transportation cost. There can be trade barriers in some countries which will restrict the trade benefit. Owing a subsidiary is beneficial when it is profitable but when subsidiary incurs loss the parent has to bear it. It involves high risk investment.
The advantage and disadvantage listed below and their matches in their corresponding mode.
Exporting- Manufacturing and transportation costs Turnkey Contracts- FDI and foreign country Licensing - Risk and Capital investment Franchising- Host country and controls Joint Venture - Development cost and Operational Strategy Who Ply-own (wholly owned subsidiary)- Risks and profits Subsidiaries - Costs, risks and profitsFirms can often use different modes to enter foreign markets. They can use exporting, turnkey projects, licensing, franchising, establishing joint ventures with a host-country firm etc.
Turnkey project : the contractor is in good terms and agrees to handle every detail of the project for a foreign client.
Licensing agreement : licensor often gives the rights to intangible property to another entity for time period under a fee. Franchising is involve longer-term commitments than licensing.
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The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,108. A total of 36 direct labor-hours and 234 machine-hours were worked on the job. The direct labor wage rate is $18 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $25 per machine-hour. The total cost for the job on its job cost sheet would be:
Answer:
Total cost= $8,606
Explanation:
Giving the following information:
Job 450:
Direct materials= $2,108
A total of 36 direct labor-hours and 234 machine-hours were worked on the job.
The direct labor wage rate is $18 per labor-hour.
The predetermined overhead rate is $25 per machine-hour.
We need to calculate the total cost for Job 450:
Direct materials= 2,108
Direct labor= 36*18= 648
Overhead= 234*25= 5,850
Total cost= $8,606
You purchased a call option for $3.45 17 days ago. The call has a strike price of $45, and the stock is now trading for $51. If you exercise the call today, what will be your holding-period return
Answer:
73.9%
Explanation:
Calculation for what will be your holding-period return
You purchased a call option for $3.45 17 days ago. The call has a strike price of $45 and the stock is now trading for $51. If you exercise the call today, what will be your holding period return?
First step is to find the Gross profit
Using this formula
Gross profit=Strike price- Stock Trading amount
Let plug in the formula
Gross profit =$51 - 45
Gross profit= $6
Second step is to find the Net profit
Using this formula
Net profit=Gross profit-Call option
Let plug in the
Net profit is $6 - 3.45
Net profit= $2.55
The last step is to find the Holding period return
Using this formula
Holding period return =Net profit/Call option
Let plug in the formula
Holding period return=$2.55/$3.45
Holding period return= 0.739*100
Holding period return =73.9%
Therefore what will be your holding-period return is 73.9%
The Mixing Department of Complete Foods had 62,000 units to account for in October. Of the 62,000 units, 38,000 units were completed and transferred to the next department, and 24,000 units were 20% complete. All of the materials are added at the beginning of the process. Conversion costs arc added evenly throughout the mixing process and the company uses the weighted-average method.
Required:
Compute the total equivalent units of production for direct materials and conversion costs for October.
Answer:
Equivalent units
Material 62,000
Conversion cost 24,000
Explanation:
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.
Equivalent units = Degree of completion (%) × Number of units
Equivalent unit for Material
Item unit Equivalent units
Transferred out 38,000 × 100% = 38,000
Closing WIP 24,000× 100% = 24,000
Equivalent unit of material 62,000
The degree of completion for WIP is taken to be 100% because materials are always added at the beginning, therefore all the amount of raw material required is already imputed.
Equivalent unit for Conversion cost
Item unit Equivalent units
Transferred out 38,000 × 100% = 38,000
Closing WIP 24,000× 20% = 4800
Equivalent unit of conversion 42,800
Equivalent units
Material 62,000
Conversion cost 24,000
An option is called a derivative security because: Select one: a. its value is derived from that of another asset b. to calculate its worth requires extensive derivations c. it is the basic building block security we use to value all other derivative securities d. its value is derived from the existence of a convex payoff around an exercise value e. none of the above
Answer:
The answer is A.
Explanation:
Firstly, what is a derivative? - A derivative is a financial instrument that derives its value from the value of the underlying asset(bonds, equity etc) or forward rate agreement in the case of interest rate swap. A derivative transforms the value of the underlying.
Examples of derivative are, forward contract, futures, options, swaps etc.
Therefore, option A is the correct option.
Sales 22160 units Cash, beginning balance $34000 Selling and administrative (of which depreciation, $5,000) $53000 Required minimum cash balance $66480 If necessary, the company will borrow cash from a bank on the first day of March. Assume that the borrowing can be made in any (exact) amount, but bears interest at 3% per month. The March interest will be paid during subsequent months. Q: What is the closest amount of cash that must be borrowed on March 1 to cover all cash disbursements and to obtain the desired March 31 cash balance
Answer:
Loan taken: 58,320
Explanation:
We add up the beginning cash with the receipts and subtract the expenses.
Then, we compare agaisnt the mnimum required balance
Beginning Cash 34,000
Cash Receipts
Sales 22,160
Total cash form operations: 56,160
Cash disbursements
S&A expense (w/o depreciations) 48,000
Ending Cash from operations 8,160
Minimum Balance: 66,480
Loan taken: 58,320
The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $20, $12, $8, $4, and $2 (one seller at each price). Five buyers are willing to buy one widget at the following prices: $8, $12, $20, $32, and $44 (one buyer at each price). For each price shown in the following table, use the given information to enter the quantity demanded and quantity supplied.
Price Quantity Demanded Quantity Supplied
($ per widget) (widgets) (widgets)
$2
$4
$8
$12
$20
$32
$44
In this market, the equilibrium price will beper widget, and the equilibrium quantity will be______widgets.
Answer:
4
Explanation:
The completion of the table is shown below;
Price Quantity Demanded Quantity Supplied
($ per widget) (widgets) (widgets)
$2 5 1
$4 5 2
$8 5 3
$12 4 4
$20 3 5
$32 2 5
$44 1 5
As we can see that at the price of $12 the quantity demanded is equivalent to the quantity supplied i.e 4 so here the equilibrium quantity is 4 for the widgets
The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 30,000 shares were originally issued and 5,000 were later reacquired. what is the number of shares outstanding?
Answer:
The answer is 25,000 shares.
Explanation:
The 100,000 shares is the authorised shares which is the maximum number of shares an entity is permittee to issue to investors as being stipukated in its articles of incorporation.
The 30,000 shares is the outstanding shares which is the total number of shares issued to existing shareholders.
The 5,000 shares reacquired is known as treasury stock. Companies repurchased the shares.
So total number of outstanding shares is:
30,000 shares - 5,000 shares
= 25,000 shares
The number of shares outstanding is 25,000.
The calculation is as follows:
= Originally issued - reacquired shares
= 30,000 - 5,000
= 25,000
Therefore we can conclude that The number of shares outstanding is 25,000.
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assuming it is stored safely how long after It was prepared can refrigerated food be sold or served 1-7 days b-10 days c-14 days d-20 days
Answer:
1-7 days
Explanation:
But, ideally 4 days should be the maximum for prepared food to be refrigerated before it is sold or served.
Leaving food refrigerated for a long time makes it to lose its nutrients. Some foods like potatoes, meat, eggs, chicken, etc. can become harmful or poisonous, especially when you reheat them before eating. That is why it is right to adhere to proper routines for refrigerating food and also preparing and serving the food. Some healthy food are better eaten immediately after their preparation.
The 10.9 percent preferred stock of Rock Bottom Floors is selling for $91 a share. What is the firm's cost of preferred stock if the tax rate is 44 percent and the par value per share is $100
Answer: 11.978%
Explanation:
From the question, we are informed that the 10.9 percent preferred stock of Rock Bottom Floors is selling for $91 a share. We are further informed that the tax rate is 44 percent and the par value per share is $100.
The firm's cost of preferred stock will be 10.9% multiplied by the par value per share and then divided by the share price of $91. This will be:
= (10.9% × 100)/91
= (0.109 × 100)/91
= 10.9/91
= 0.11978
= 11.978%
Joe must pay liabilities of 1,000 due one year from now and another 2,000 due three years from now. There are two available investments: Bond I: A one-year zero-coupon bond that matures for 1,000. The yield rate is 6% per year Bond II: A two-year zero-coupon bond with face amount of 1,000. The yield rate is 7% per year. At the present time the one-year forward rate for an investment made two years from now is 6.5%. Joe plans to buy amounts of each bond. He plans to reinvest the proceeds from Bond II in a one-year zero-coupon bond. Assuming the reinvestment earns the forward rate, calculate the total purchase price of Bond I and Bond II where the amounts are selected to exactly match the liabilities.
1. 2,584
2. 2,697
3. 2,801
4. 2,907
5. 3,000
Answer:
1. 2,584
Explanation:
future payments: $1,000 in 1 year and $2,000 in 3 years
the present value of alternative I (one year bond):
$1,000 / 1.06 = $943.40
the present value of alternative II (first 2 years and then 1 year):
$2,000 / 1.065 = $1,877.93 ⇒ PV at year 2
PV at year 0 = $1,877.93 / 1.07² = $1,640.26
the total present value of both options = $943.40 + $1,640.26 = $2,583.66 ≈ $2,584
Liabilities are settled over time through the transfer of economic benefits including money, goods, and services.
LiabilitiesLiability are some things someone or company owes, that's usually a sum of cash.
Now we calculate the whole price of Bond I and also Bond II.
The longer term payments is : $1,000 in 1 year and $2,000 in 3 years.
The present value of different I (one year bond): $[tex]1,000 / 1.06[/tex] = $[tex]943.40[/tex]
The present value of other II (first 2 years then 1 year): $[tex]2,000 / 1.065[/tex] = $[tex]1,877.93[/tex]⇒ PV at year 2PV at year 0 = $1,877.93 / 1.07² = $1,640.26
The total present value of both options = $943.40 + $1,640.26 = $[tex]2,583.66 ≈[/tex]$2,584
Thus, the correction option is (1.) 2,584.
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Oldhat Financial starts its first day of operations with $11 million in capital.A total of $120 million in checkable deposits are received. The bank makesa $30 million commercial loan and another $40 million in mortgages with thefollowing terms: 200 standard, 30- year, fixed-rate mortgages with a nominalannual rate of 5.25%, each for $200,000. Assume that required reserves are 8.
a. What does the bank balance sheet look like?
b. How well capitalized is the bank?
c. Calculate the risk weighted assets and risk weighted capital ratio after Oldhat's first day.
Answer:
a.
Assets Side
Required Reserves $10 million
Excess Reserves $51 million
Loans $70 million
Total $131 million
Liabilities Side
Checkable Deposits $120 million
Bank Capital $11 million
Total $131 million
b. Bank capitalization can be measured with bank Leverage Ratio.
= Capital/Assets
= 11/131
= 8.40%
Bank is considered well capitalized if ratio is above 5% so Oldhat Financial is well capitalized.
c. Risk Weighted Assets = $50 million
Risk weighted capital ratio = 22%
Commercial loans are 100% risk weighted = $ 30 million
Residential mortgages are 50% risk weighted = $ 20 millions
Total = $50 million.
Risk weighted Capital Ratio = Bank capital / Total risk weighted assets
= 11/50
= 22%
A production possibilities frontier (PPF) graph would be used when a business wants to: A. determine outputs given the inputs available. B. create pricing systems. C. understand consumer demand. D. project rates of currency exchanges given political situations.
Answer:D duh
Explanation:
With political exchange economy grows and the rest of the solutions are solved
Under a job-order costing system, the dollar amount transferred from Work in Process to Finished Goods is the sum of the costs charged to all jobs:___________.
A) started in process during the period.
B) in process during the period.
C) completed and sold during the period.
D) completed during the period.
Answer:
D) completed during the period.
Explanation:
The jobs that have been completed are transferred from Work In Process Account to the Finished Goods Inventory Account.
It is from this Finished Goods Inventory that the Cost of Sales would be determined for those jobs sold.
A put on XYZ stock with a strike price of $40 is priced at $2.00 per share, while a call with a strike price of $40 is priced at $3.50. What is the maximum per-share loss to the writer of the uncovered put and the maximum per-share gain to the writer of the uncovered call
Answer:
Loss = $38
Gain = $3.5
Explanation:
The calculation of maximum per-share loss and maximum per-share gain is shown below:-
Maximum loss = Exercise price - Premium received
= $40 - $2
= $38
So, the maximum per share loss is $38
Maximum gain = Premium received
= $3.5
So, the maximum per share gain is $3.5
We simply applied the above formulas to determine each part
Gladstone Company issues 200,000 shares of preferred stock for $40 a share. The stock has fixed annual dividend rate of 5% and a par value of $3 per share. If sufficient dividends are declared, preferred stockholders can anticipate receiving dividends of:
Answer: $30,000
Explanation:
Preferred Dividends are paid at a fixed rate based on the par value and the dividend rate.
If there are 200,000 preferred shares, the amount that is to be paid to them in dividends every year would be;
= 200,000 * 5% * 3
= $30,000
This amount will be paid to them if sufficient dividends are declared to cover this amount. If the shares are Cumulative, they will receive this dividend in totality eventually even if it is not the year the dividends are announced in because these kind of shares accrue the dividends.
Sullivan Equipment Company
Variable Costing Income Statement
For the Month Ended March 31
Sales (14,200 units) $653,200
Variable cost of goods sold:
Variable cost of goods manufactured $288,000
Inventory, March 31 (1,800 units) (32,400)
Total variable cost of goods sold 255,600
Manufacturing margin $397,600
Variable selling and administrative expenses 170,400
Contribution margin $227,200
Fixed costs:
Fixed manufacturing costs $64,000
Fixed selling and administrative expenses 42,600
Total fixed costs 106,600
Income from operations $120,600
Prepare in income statement under absorption costing.
Answer:
Income statement under absorption costing
Sales (14,200 units) $653,200
Less Cost of Goods Sold
Opening Inventory $0
Add Cost of Goods Manufactured $352,000
Less Closing Inventory (1,800 units × $22.00) ($39,600) ($312,400)
Gross Profit $340,800
Less Expenses :
Variable selling and administrative expenses ($170,400)
Fixed selling and administrative expenses ($42,600)
Net Operating Income / (Loss) $127,800
Explanation:
Manufacturing Cost Schedule :
Variable cost of goods manufactured $288,000
Add Fixed manufacturing costs $64,000
Total Manufacturing Cost $352,000
Units Manufactured :
Units Sold 14,200
Add Closing Stock 1,800
Less Opening Stock 0
Units Manufactured 16,000
Cost per unit manufactured = $352,000 / 16,000
= $22.00
The rate of return on the common stock of Lancaster Woolens is expected to be 18 percent in a boom economy, 8 percent in a normal economy, and only 2 percent in a recessionary economy. The probabilities of these economic states are 12 percent for a boom and 10 percent for a recession. What is the variance of the returns on this common stock
Answer:
Variance of the return on this common stock is 0.15%
Explanation:
Note: See the attached excel file for the calculation of the variance of the returns on this common stock.
Note that the probability of a normal economy can be obtained as follows:
Probability of normal economy = 100% - Probability of a boom - Probability of a recession = 100% - 12% - 10% = 78%
These probabilities are used in the attached excel file.
Match the transactions below with the journal or ledger in which it would be entered. Monthly adjustment for supplies used Cash receipt posting to an individual customer account Record sale on account to customer Record purchase on account from vendor Record payment received from customer Record payment made to vendor Cash payment posting to an individual vendor account General journal Accounts receivable subsidiary ledger Revenue journal Purchases journal Cash receipts journal Cash payments journal Accounts payable subsidiary ledger Group of answer choices Monthly adjustment for supplies used
Answer:
Matching transactions to journal or ledger:
1. Monthly adjustment for supplies used = General Journal
2. Cash receipt posting to an individual customer account = Accounts Receivable subsidiary ledger
3. Record sale on account to customer = Revenue Journal
4. Record purchase on account from vendor = Purchases journal
5. Record payment received from customer = Cash Receipts Journal
6. Record payment made to vendor = Cash Payments Journal
7. Cash payment posting to an individual vendor account = Accounts Payable subsidiary ledger
Explanation:
a. The general journal is used to record all kinds of transactions that occur on a daily, especially if the entity does not operate specialized journals like the Cash receipts, cash payments, purchases, and revenue journals. It records both adjusting and non-adjusting entries.
b. Accounts receivable and payable subsidiary ledgers are used to record individual customers and suppliers transactions which had been recorded in total to the Accounts Receivable and Accounts Payable accounts (as controls) respectively and then enable individual records to be kept.
c. Revenue journal is a specialized journal for recording revenue on account for customers who buy on credit from the entity. As a specialized journal, it usually have one amount column while the total is periodically posted to a control account in the general ledger with individual transactions posted to the subsidiary accounts receivable ledger.
d. Cash Receipts and Payments Journals are also specialized journals for recording receipts from customers and payments to suppliers of merchandise and services. They are similar in outlook like the Revenue Journal.
e. Accounts Payable subsidiary ledger is a secondary ledger for recording individual suppliers' transactions, with their totals already posted to the general ledger (control account). This ledger ensures the maintenance of individual suppliers' records in order to extract their individual balances.
The matching of the transactions with the journal or ledger is shown below.
Matching is as follows:1. Monthly adjustment for supplies used = General Journal
2. Cash receipt posting to an individual customer account = Accounts Receivable subsidiary ledger
3. Record sale on account to customer = Revenue Journal
4. Record purchase on account from vendor = Purchases journal
5. Record payment received from customer = Cash Receipts Journal
6. Record payment made to vendor = Cash Payments Journal
7. Cash payment posting to an individual vendor account = Accounts Payable subsidiary ledger
Learn more about ledger here: https://brainly.com/question/24516871
Lassen Corporation sold a machine to a machine dealer for $37,250. Lassen bought the machine for $68,000 and has claimed $22,500 of depreciation expense on the machine. What gain or loss does Lassen realize on the transaction
Answer:
Loss of $8,250
Explanation:
Lassen corporation sold a machine to a machine dealer at a price of $37,250
Lassen bought the machine for $68,000
He claimed $22,500 of depreciated expenses on the machine
Therefore, the gain or loss realized on the transaction can be calculated as follows
Gain/loss= Cash received-book value
Book value= Original basis-accumulated depreciation
= $68,000-$22,500
= $45,500
Gain/loss= $37,250-$45,500
= $8,250
Hence Lassen realized a loss of $8,250 on the transaction