Answer:
Jordan Sports Inc.
The amount of total manufacturing cost for the period is:
= $9.9 million
Explanation:
a) Data and Calculations:
Labor and overhead costs = $1.3 million
Cost of materials used - $8.6 million
Total manufacturing cost = $9.9 million
Cost of materials purchased = $9.4 million
Less Cost of materials used 8.6 million
Ending inventory of materials = $0.8 million
b) The total manufacturing cost for the period is the aggregate of costs of direct materials, direct labor, and manufacturing overheads incurred by Jordan Sports, Inc. to produce its products. It does not include the cost of ending inventory of materials of $0.8 million, which will be consumed in the following period.
Daguio corporation uses direct labor hours in its predetermined overhead rate. at the beginning of the year, the total estimated manufacturing overhead was $224,580. At the end of the year actual direct labor hours for the year were 18,200 hours manufacturing overhead for the year was under applied by 12,100, and the actual manufacturing overhead was $219,580. The predetermined overhead rate for the year must have been closest to:_____
Answer:
$11.40 per direct labor-hour
Explanation:
Calculation for predetermined overhead rate for the year must have been closest to
First step is to calculate the Manufacturing overhead applied using this formula
Manufacturing overhead applied = Actual overhead - Underapplied overhead
Let plug in the formula
Manufacturing overhead applied=$219,580 - $12,100
Manufacturing overhead applied= $207,480
Now let calculate the Predetermined overhead rate using this formula
Predetermined overhead rate = Estimated total manufacturing overhead / Estimated total amount of the allocation base
Let plug in the formula
Predetermined overhead rate = $207,480 / 18,200 direct labor-hours
Predetermined overhead rate = $11.40 per direct labor-hour
Therefore The predetermined overhead rate for the year must have been closest to:$11.40 per direct labor-hour
What are three important characteristics for an entrepreneur to have?
(Check all of the boxes that apply)
Popular
Hardworking
Optimistic
Healthy
Witty
Disciplined
Answer:
HardworkingOptimisticDisciplinedExplanation:
An entrepreneur starts and operates a new business. An entrepreneur develops a business idea in their mind. They then source for all that is required to transform the idea into a successful business.
Entrepreneurs take risks by investing their resources, time, and energy in the business idea. They undertake the investment because they are convinced it will work. It takes hard work and sacrifices for the new business to be successful. An entrepreneur must focus on their business for it to grow.
Answer:
2 3 6
Explanation:
Mechem Corporation produces and sells a single product. In April, the company sold 1,900 units. Its total sales were $152,000, its total variable expenses were $79,800, and its total fixed expenses were $56,700.
Required:
a. Construct the company's contribution format income statement for April. (Do not round intermediate calculations.)
b. Redo the company's contribution format income statement assuming that the company sells 1,800 units.
Answer:
1. $15,500
2. $11,700
Explanation:
Given the following information,
the company sold 1,900 units
Total sales were $152,000
Total variable expenses were $79,800
Total fixed expenses were $56,700
The structure for Contribution income margin format is seen below;
Income statement:
Sales
- Total Variable cost
= Contribution margin
- Fixed costs
= Net Operating income
1. Income statement
Sales = $152,000
Less Total variable cost = ($79,800)
Contribution margin = $72,200
Less Total Fixed costs = ($56,700)
Net operating income = $15,500
2. Here, we need to calculate the unitary selling price and the unitary variable cost
Selling price = $152,000 ÷ 1,900 units = $80
Unitary Variable cost = $79,800 ÷ 1,900 units = $42
Therefore,
Sales = 1,800 units × $80
$144,000
Less total variable cost = 1,800 units × $42
$75,600
Contribution margin
$68,400
Less total fixed costs
$56,700
Net operating income
$11,700
You need to hire employees as you are finding yourself short. However, your budget allows you to have a specific
number for each department. You are permitted to have 20 servers, 8 bartenders, 8 bussers, 4 servers assistants, and 6 managers. You need
to fill the following slots: you need 7 servers, 3 bartender, 3 bussers, 0 server assistants, and 1 managers. How many of each do you
presently have?
13 servers, 5 bartenders, 5 bussers, 4 server assistants, 0 managers
Ob) 13 servers, 5 bartenders, 5 bussers, 4 server assistants, 5 managers
c) 13 servers, 5 bartenders, 7 bussers, 4 server assistants, 5 managers
d) 18 servers, 7 bartenders, 5 bussers, 1 server assistants, 6 managers
Answer:
13 servers, 5 bartenders, 5 bussers, 4 server assistants, 5 managers
Explanation:
When you need to fill a certain position at your organization, hiring is the process of looking for and evaluating individuals. On the other hand, recruiting entails ongoing study to locate the ideal workers for your business.
the beginning of hiring someone: The organization has recently had a number of hirings and firings.
The hiring process consists of several steps, including analyzing applications, identifying the best applicants for interviews. Hence option B is correct .
What is Hiring ?Testing candidates, making a decision between candidates, and carrying out other pre-employment exams and checks.
A human resources manager will take the following actions during the hiring process to find the ideal candidate for the position:
Examining job applicationsthe test takersSelected candidates are questionedCandidates should be chosen using predetermined selection criteria. Perform history and reference checksSend selected candidates for a health checkLearn more about hiring here
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One of the problems unions are experiencing today is the reluctance of autoworkers in southeastern United States to join unions. In a few instances, when the Auto Workers Union (AUW) gathered enough employee signatures to call for a union certification election, the employees have voted against unionization. Who conducted this election?
A. union members from other automobile plants
B. a committee made up of union and employer representatives as well as federal election inspectors
c. union officials whose sole responsibility is to conduct elections
D. the National Labor Relations Board
E. the auto manufacturer
Answer:
D. the National Labor Relations Board
Explanation:
The National Labor Relations Board would be empowered by the national labor relations act who has the responsibility for holding the elections in which the labor would decide whether they want to join the union or as represented by one
Now for approaching to the board for an election purpose there is a requirement to represent the enough proof from the workers so here AUW have to gather the sufficient signature of the employee
Monica Smith was unemployed because the steel company, where she worked, closed and moved overseas to a foreign country. Other steel companies have also closed. Her skills are not transferable to another industry and she is unable to get a job.She would be classified as:_________.
Answer:
structurally unemployed.
Explanation:
Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;
1. Cyclical unemployment rate (CU).
2. Frictional unemployment rate (FU).
3. Structural unemployment rate (SU).
Structural unemployment can be defined as an involuntary unemployment that arises as a result of the incompatibility between a worker's skills set and requisite skills an employer seeks from the workers or due to technological changes.
This ultimately implies that, it describes a situation where an individual isn't able to secure a job as a result of insufficient number of jobs matching their qualifications, thus limiting their opportunities.
In this scenario, Monica Smith was unemployed because the steel company, where she worked, closed and moved overseas to a foreign country. Other steel companies have also closed. Her skills are not transferable to another industry and she is unable to get a job.
Hence, she would be classified as structurally unemployed.
Which description applies to the middle class in American society?
A. They tend to lack a high school education.
B. They tend to live off wealth that their parents accumulated.
C. They tend to live comfortably as long as they have jobs.
D. They tend to live without the means to find shelter.
Answer:
(C).They tend to live comfortably as long as they have jobs
Answer:
C. "They tend to live comfortably as long as they have jobs."
Your job includes ordering phone service for new employees. You are considering two phone plans. The first plan charges $23.35 per month for one phone line. The second plan charges $14.99 per month for the first three months and then $29.99 per month after that for a phone line. Over the first year, how much will you save on one phone line by choosing the better deal?
Answer:
$34.68
Explanation:
The total cost by following the first plan will be the charge per months times 12 months
= $23.35 x 12
= $280.2
The total cost from the second plan will be the cost of the first three months at $14.99 plus the cost of 9 months at $29.99
=($14.99 x 3) + ($29.99 x 9)
=$44. 97 +$269.91
=$314.88
The first plan is the better deal. It will save
= $314.88 - $280.2
=$34.68
Those arguing against being socially responsible might make the claim that costs for social goals are ultimately
higher prices
Hardigree Corporation uses a job-order costing system. Beginning balance in Work in Process $ 36,000 (1) Raw materials purchased on account $207,000 (2) Direct materials requisitioned for use in production $161,000 (3) Indirect materials requisitioned for use in production $ 42,000 (4) Direct labor wages incurred $ 87,000 (5) Indirect labor wages incurred $101,000 (6) Depreciation recorded on factory equipment $ 42,000 (7) Additional manufacturing overhead costs incurred $ 57,000 (8) Manufacturing overhead costs applied to jobs $219,000 (9) Cost of jobs completed and transferred from Work in Process to Finished Goods $403,000 The total amount of manufacturing overhead actually incurred was: Multiple Choice
Answer:
$242,000
Explanation:
Calculation of the total amount of manufacturing overhead actually incurred:
Particulars Amount
Indirect Materials $42,000
Indirect labor $101,000
Depreciation On factory equipment $42,000
Additional Manufacturing Overhead $57,000
Total Manufacturing Overhead incurred $242,000
how does coved-19 effect in how mangers make decisions?
Answer:
1. not all people want to wear a mask when they walk into their store
2. a lot of their workers probaly quit or have corona, this would make it harder to make decisions with not a lot people to work!
Explanation:
Brian loves opera and hates rock 'n' roll. Tim loves playing rock 'n' roll music at high volume. Unfortunately, they are next-door neighbors in an apartment building with paper-thin walls.
In this case, (Brian/Tim) imposes a (Positive/Negative) externality on his neighbor in the form of noise pollution.
What command-and-control policy might the landlord impose?
(a) A rule that music could not be played above a certain decibel level
(b) A rental subsidy for those tenants who do not own any musical devices
(c) A tax on rent for those tenants who own speakers
Suppose the landlord lets the tenants do whatever they want.
True or False: According to the Coase theorem, Tim and Brian might not be able to reach an agreement if the transaction costs are high.
(True)
(False)
Answer:
Tim imposes a Negative externality on his neighbor in the form of noise pollution.
The command-and-control policy might the landlord impose is : a) A rule that music could not be played above a certain decibel level
(True)According to the Coase theorem, Tim and Brian might not be able to reach an agreement if the transaction costs are high.
Explanation:
As given ,
Brian loves opera and hates rock 'n' roll. Tim loves playing rock 'n' roll music at high volume.
In this case, Tim imposes a Negative externality on his neighbor in the form of noise pollution.
Because Tim's rock 'n' roll music disturb Brian and it effects negatively because due to Tim's music , Brian is unable to listen opera properly
Now,
The command-and-control policy might the landlord impose is :
a) A rule that music could not be played above a certain decibel level
Now,
If the landlord lets the tenants do whatever they want.
According to the Coase theorem, Tim and Brian might not be able to reach an agreement if the transaction costs are high.
It is True
Because if transaction cost is low , then Tim can pay compensation to Brian for high volume of music . But if transaction cost is high then they can not do any negotiation.
The Treasury department issued a 10-year bond on January 1, 2015. The par value is $1,000 and the annual coupon rate is 10%. The bond pays two coupons every year, one at the end of June and one at the end of December. The required annual yield is 8%. An investor bought the bond on March 31, 2015. What is the price that he should pay for the bond
Answer:
$1,135.90
Explanation:
The bond price formula is given below, the formula implies that the price of the bond is the present value of future cash flows which are the semiannual coupons and the face value
Bond price=face value/(1+r)^n+semiannual coupon*(1-(1+r)^-n/r
face value=$1,000
r= semiannual yield to maturity=8%*6/12=4%
n=number of semiannual coupons in 10 years=10*2=20
semiannual coupon=face value*coupon rate*6/12=$1,000*10%*6/12=$50
bond price=$1,000/(1+4%)^20+$50*(1-(1+4%)^-20/4%
bond price=$1000/(1.04)^20+$50*(1-(1.04)^-20/0.04
bond price=$1000/2.191123143 +$50*(1-0.456386946 )/0.04
bond price=$1000/2.191123143 +$50*0.543613054/0.04
bond price= $456.38 +$679.52
= $1,135.90
An income statement reports the revenues earned minus expenses incurred by a business over a period of time.
True or false ?
Answer:
True
Explanation:
This is an income statement. Ex: Rent expenses, salaries expense, total revenues, etc.
Mulkeen Service Company, Inc., was incorporated by Conor Mulkeen and five other managers. The following activities occurred during the year:
a. Received $48,000 cash from the managers; each was issued 1,200 shares of common stock.
b. Purchased equipment for use in the business at a cost of $8,400; one-fourth was paid in cash and the company signed a note for the balance (due in six months).
c. Signed an agreement with a cleaning service to pay it $70 per week for cleaning the corporate offices, beginning next year.
d. Conor Mulkeen borrowed $15,000 for personal use from a local bank, signing a one-year note.
Required:
a. Create T-accounts for the following accounts: Cash, Equipment, Note Payable, and Contributed Capital.
b. Using the balances in the T-accounts, fill in the following amounts for the accounting equation:
Assest $_______ = Liabilities$ _______ + Stockholders Equity $_______
c. Explain your response to events (c) and (d).
Answer:
a)
cash common stock
48,000 48,000
2,100
45,900
equipment note payable
8,400 6,300
b)
Assets = Liabilities + Equity
$54,300 $6,300 $48,000
c)
there is no transaction in (c) and the corporation is a separate entity and Conor's personal accounts are not part of it.
A loan of $12,000 is to be repaid within one year with level monthly payments, due at the beginning of each month. The 12 payments equal $1,000 each. A finance charge of $632 is also due with the first payment. Which of the following is closest to the effective annual interest rate on the loan?
a. 12.7%
b. 12.9%
c.13.1%
d. 13.3%
e. 13.5%
Solution :
It is given : loan amount = $12,000
Time to repay = 12 months
Finance charge = $ 632
AT the interest rate, outflow = inflow
The present value of the loan amounts = loan amount
[tex]$1000+632+[1000 \times (PVAF (r ,11))]=12000$[/tex]
[tex]$1000 \times PVAF(r,11)=12000-1632$[/tex]
[tex]$PVAF(r,11)=\frac{10368}{1000}$[/tex]
[tex]$PVAF(r,11)=10.368$[/tex]
Now using the annuity table we get
PVAF(1%, 11)=10.9676
This is equal to 10.368 (approximately)
∴ [tex]$r=1$[/tex] % per month of compounded monthly
So the annual interest rate is :
[tex]$=[(1+0.01)^{12}]-1$[/tex]
[tex]$r=[(1.01)^{12}]-1$[/tex]
[tex]$r = 12.68$[/tex] %
= 12.70 %
Hence the correct option is (a).
[tex]\text{It is given : loan amount} = $12,000\\\text{Time to repay} = 12 months\text{Finance charge} = $ 632\\\text{At the interest rate, outflow = inflow}\\\text{The present value of the loan amounts = loan amount}[/tex]
[tex]1000 + 632 + [ (P.V (r.11))] = 12,000\\\\1000 \text { x } P.V (r,11) = 12,000 - 1,632\\\\P.V (r.11) = \frac{10,368}{1000}\\\\P.V (r,11) = 10.368[/tex]
[tex]\text{Now using the annuity table we get} \\P.V (0.01, 11) =10.9676\\\text{This is equal to 10.368 (approximately)}[/tex]
[tex]r = 0.01 \text{ per month}\\\text{ Annual Interest rate}:\\r= [(1+0.01}^{12}] - 1\\r= [(1.01}^{12}] - 1\\r= 12.68\\[/tex]
Therefore, the closest option among the following choices is an option (a), i.e., 12.7%
For more information about the annual interest rate, refer below
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Domkowski began operations on January 1 of the current year. The company uses a process-costing system, and conversion cost is incurred evenly throughout manufacturing. By January 31, the firm had completed 56,000 units. Which of the following statements is true about the ending work-in-process inventory if equivalent units for conversion cost totaled 59,000 units?
a) There is no ending work-in-process inventory.
b) The ending work-in-process inventory totaled 3,000 physical units.
c) The ending work-in-process inventory of 10,000 physical units was 30% complete.
d) The ending work-in-process inventory of 20,000 physical units was 85% complete.
Answer:
Domkowski
The statement that is true about the ending work-in-process inventory is, if equivalent units for conversion cost totaled 59,000 units:
c) The ending work-in-process inventory of 10,000 physical units was 30% complete.
Explanation:
a) Data and Calculations:
Units started and completed during the current period = 56,000 units
Total equivalent units of production = 59,000 units
Therefore, the ending units inventory = 3,000 (59,000 - 56,000) units.
Since the 3,000 units are equivalent units and still in process, this implies that many more units are attributable to the ending inventory. The nearest explanation is that there are 10,000 units under process and only 30% complete. This results in having 3,000 units (10,000 * 30%) as the ending work-in-process.
What do price controls give us?
Answer:
Price controls are government-mandated minimum or maximum prices set for specific goods and are typically put in place to manage the affordability of the goods. ... Over the long term, price controls can lead to problems such as shortages, rationing, inferior product quality, and black markets.
Explanation:
hope you get it right! ✋
Based on your focus group, you ask your product research team to propose different formulas for turmeric meal replacement shakes. Keeping in mind that all In Fine Fettle's products use ingredients that are of higher quality than the competition's, your food scientists offer you three different formulations. Choose the formula that would be most attractive to the target market.
A. Has the highest turmeric content and anti—inflammatory properties
Made with quality ingredients
Taste rated as 5/10
B. Has the second-highest turmeric content and anti—inflammatory properties
Made with superior quality ingredients
Taste rated as 7/10
C. Has the lowest turmeric content and anti—inflammatory properties
Made with quality ingredients
Taste rated as 9/10
Answer: B. Has the second-highest turmeric content and anti-inflammatory properties
Made with superior quality ingredients
Taste rated as 7/10
Explanation:
The formula in B would be the most attractive because it is a compromise between the first and the second more 'extreme' formulas.
The first one for instance has the highest turmeric content but is lacking in taste. The third has the lowest content and is sweet. Consumers would most probably go for a compromise and pick the formula with the second highest content and not to bad taste wise whilst still being made of superior ingredients.
The following is a list of account balances for Pick-A-Pet, Inc., as of June 30, Year 3:
Accounts Payable $ 349,200
Accounts Receivable 419,200
Cash 732,600
Common Stock 662,100
Equipment 58,400
Logo and Trademarks 421,600
Long-term Notes Payable 268,900
Retained Earnings 470,100
Software 118,500
The company entered into the following transactions during July, Year 3. Stockholders contribute $300,000 cash for additional ownership shares and the company borrows $150,000 in cash from a bank to buy new equipment by signing a formal agreement to repay the loan in 2 years. No other transactions took place during July, Year 3.
Required:
a. Prepare a classified balance sheet for the company at June 30, Year 3.
b. Show the effects of the July transactions on the basic accounting equation.
c. Prepare the journal entries that would be used to record the transactions.
Answer:
Pick-A-Pet, Inc
a. Classified Balance Sheet as of June 30, Year 3:
Assets
Current Assets:
Cash $1,182,600
Accounts Receivable 419,200 $1,601,800
Equipment 58,400
Software 118,500
Logo & Trademarks 421,600 $598,500
Total assets $2,200,300
Liabilities and Equity:
Current Liabilities:
Accounts Payable $ 349,200
Long-term Liabilities:
Long-term Notes Payable $418,900
Total liabilities $768,100
Equity:
Common Stock 962,100
Retained Earnings 470,100 $1,4322,200
Total liabilities + equity $2,200,300
b. Effects of the July transactions on the basic accounting equation:
Assets = Liabilities + Equity
1. Stockholders contribute $300,000 cash for additional ownership shares
Assets (Cash + $300,000) = Liabilities + Equity (Common Stock + $300,000)
2. Company borrows $150,000 in cash from a bank to buy new equipment by signing a formal agreement to repay the loan in 2 years.
Assets (Cash + $150,000) = Liabilities (Long-term Notes Payable + $150,000) + Equity
c. Journal Entries to record the July transactions:
1. Debit Cash $300,000
Credit Common Stock $300,000
To record the additional capital contribution by stockholders.
2. Debit Cash $150,000
Credit Long-term Notes Payable $150,000
To record the borrowing of cash from a bank, repayable in 2 years.
Explanation:
a) Data and Calculations:
Accounts Payable $ 349,200
Accounts Receivable 419,200
Cash 732,600
Common Stock 662,100
Equipment 58,400
Logo and Trademarks 421,600
Long-term Notes Payable 268,900
Retained Earnings 470,100
Software 118,500
July Year 3 Transactions and Effects on accounts:
Cash 732,600
Common Stock 300,000
Notes Payable 150,000
Cash 1,182,600
Common Stock 662,100
Cash 300,000
Common Stock 962,100
Long-term Notes Payable 268,900
Cash 150,000
Long-term Notes Payable 418,900
Modified account balances:
Cash 1,182,600
Accounts Receivable 419,200
Equipment 58,400
Software 118,500
Logo and Trademarks 421,600
Accounts Payable $ 349,200
Long-term Notes Payable 418,900
Common Stock 962,100
Retained Earnings 470,100
You are working at the campus bookstore, earning $9.00 per hour. Your manager tells you that in the upcoming year, you will get a 2% raise.
a. What is the approximate change in your real wage if inflation is 1%?
b. What is the approximate change in your real wage if inflation is 2%?
c. What is the approximate change in your real wage if inflation is 3%?
Answer:
a. $0.09
b. $0
c. -$0.09
Explanation:
Real rate = Nominal rate - inflation rate
a. Real rate = 2% - 1%
= 1%
Change in real wage = 9 * 1% = $0.09
b. = 2% -2% = 0%
Change in real wage = 9 * 0% = 0
c. = 2% - 3%
= -1%
Change in real wage = 9 * -1% = -$0.09
A profit-maximizing entrepreneur rents an apple orchard for a day. He is a price taker in both the market for labor and the market for apples. Assume that a bushel of apples sells for $10. Laborers are hired by the day (the variable input) to pick apples (the product). The production function (the relationship between the number of laborers hired and the number of bushels of apples picked) looks like this:
Laborers hired per day Total product(bushels of apples per day)
4 52
5 60
6 66
7 70
8 72
Required:
How many laborers would the entrepreneur employ if the government raised the minimum wage to $75 per day?
a. 4
b. 8
c. 5
d. 7
e. 6
Answer:
c. 5
Explanation:
L Q MPL (ΔinQ/ΔinL) VMPL
4 52
5 60 8 80
6 66 6 60
7 70 4 40
8 72 2 20
Note: Labour hired per day = L, Total product = Q, Marginal Product of labor=MPL, VMPL =Price*MPL
A firm will maximize the profit by increasing the number of labor as long as VMPL is higher than or equal to the wage rate. In this case, we observe that VMPL ($80)>wage rate ($75) for L=5 but VMPL ($60)<wage rate ($75) for L=6. So, the optimal number of labor to be hired is 5.
Robert Rogers, CPA performed accounting services for a client in December. A bill was mailed to client on December 30. Roberts received a check in the mail on January 5. The revenue principle would require that which of the following accounts appear on the income statement for the year ended December 31?
a. Accounts payable
b. Prepaid expense
c. Unread revenue
d. Service revenue
Answer:
D) Service Revenue
Explanation:
From the question we are informed about the Robert Rogers, CPA who performed accounting services for a client in December. A bill was mailed to client on December 30. Roberts received a check in the mail on January 5. The revenue principle would require that which of the following accounts appear on the income statement for the year ended December 31 is Service revenue.
Service revenue can be regarded as
the income that is been generated by a company through the service they provide. This amount can be seen on the top of the company's income statement, and there is addition of this amount to the revenue gotten from
product earnings so that total revenue of company can be calculated for a specific period of time.
Merchandise inventory includes:__________
a. costs to purchase
b. costs to sell
c. shipping costs
d. costs to prepare for sale
e. cost of goods sold
Answer:
a. costs to purchase
c. shipping costs
d. costs to prepare for sale
Explanation:
Merchandise inventory is a commodity offered for sale. It is the cost of goods that is readily available at hand which is ready for sale From the options; the Merchandise inventory includes: costs to purchase, shipping costs and costs to prepare for sale.
The remaining options are addressed in the income statement.
A company manufactures and sells three products. The products are all manufactured at the same facility. The controller of the company has decided to accumulate all budgeted overhead costs for the manufacturing facility into a single cost pool. The cost pool is then allocated to the three products based on the direct labor hours used by each product. What type of overhead rate has the controller most likely used in this allocation methodology?
Answer:
Plant-wide rate.
Explanation:
A plant-wide rate can be defined as a single overhead rate used by business firms or companies to allocate the manufacturing overhead costs to the level of output or productivity.
In this scenario, company manufactures and sells three products. The products are all manufactured at the same facility. The controller of the company has decided to accumulate all budgeted overhead costs for the manufacturing facility into a single cost pool. The cost pool is then allocated to the three products based on the direct labor hours used by each product.
Hence, the type of overhead rate the controller most likely used in this allocation methodology is the plant-wide rate.
From the following list, identify those that are likely to serve as source documents. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
Sales ticket
Trial balance
Balance sheet
Telephone bill
Invoice from supplier
Company revenue account
Income statement
Bank statement
Prepaid insurance
Answer:
The Source Documents include:
Sales ticket
Telephone bill
Invoice from supplier
Bank statement
Explanation:
Source documents are the original documents through which business transactions are initiated. They include receipts, bills, invoices, statements, checks, etc. They usually document or initiate a transaction. Any time a business spends or receives money or enters into a contract with another party, a source document is created. Source documents form an integral part of the accounting and bookkeeping process, and auditors need them to trace records to the underlying transactions.
In 2017, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. Indicate where each of the following income-related items for this company appears on its 2017 income statement.
1. Net sales
2. Gain on state's condemnation of company property, net of tax
3. Cost of goods sold
4. Income taxes expense
5. Depreciation expense
6. Gain on sale of wholesale business segment, net of tax
7. Loss from operating wholesale business segment, net of tax
8. Loss of assets from a meteor strike, net of tax
Required:
Prepare the income statement for the calendar year 2017.
Answer:
Randa Merchandising, Inc.
1. Indication of where each of the following income-related items for this company appears on its 2017 income statement.
Income Statement
1. Net Sales
2. Cost of goods sold
3. Depreciation expense
4. Income taxes expense
5. Gain on state's condemnation of company property, net of tax
6. Gain on sale of wholesale business segment, net of tax
7. Loss from operating wholesale business segment, net of tax
8. Loss of assets from a meteor strike, net of tax
Explanation:
Randa's income statement is prepared using a step-by-step approach. It starts with the net sales from which the cost of goods sold is deducted to arrive at the gross profit. Thereafter, the operating expenses are deducted to obtain the operating income. Based on this, income taxes are computed before arriving at the operating income after taxes. And then, the extraordinary items are disclosed (net of taxes) before arriving at the net income.
Classify the following topics as relating to microeconomics or macroeconomics.
Topic Microeconomics Macroeconomics
The effect of rent control on the housing market.
The effect of an increase in income tax on national income.
A firm's decision on which production method to use.
The effect of externality on the quantity produced by the market.
A student's decision about how to allocate his time between studying two subjects.
Answer and Explanation:
Microeconomics is the study of the individual regarding the decision related to market demand and supply
While the macroeconomics would deals with the country like gross domestic product, national income etc
Based on this, the classification is as follows:
1. Microeconomics
2. Macroeconomics
3. Microeconomics
4. Microeconomics
5. Microeconomics
Suppose you are deciding whether you should go to college. If you go to college, you will pay $10,000 total in tuition, textbooks, and room and board every year for 4 years, with the first payment being made immediately and then the next three payments 1 year apart. Upon graduating, you expect to get a job earning $50,000 per year for the next 40 years. Assume that your first paycheck arrives exactly 1 year after you start working and you continue getting paid annually thereafter. Also assume that there are no raises in that particular field. If you do not go to college, you can start working immediately. The pay, however, is lower. You would expect to work for 44 years and earn $34,000 per year, with your first paycheck arriving exactly 1 year from now, and you continue getting paid annually thereafter. For the questions below, round all numbers to two decimals.
Part 1 Assume the interest rate is 7%. If you were to attend college, the present value of your tuition payments would total _______ $
Part 2 Suppose you go to college and graduate after 4 years. Because you will work for 40 years after you graduate, and because 40 years is a long time, treating the stream of payments as a perpetuity will provide a reasonable approximation of the present value of the payment stream. The present value of your annual earnings of $50,000 as a college graduate is _______$
Part 3 The net present value of going to college is _____$
Part 4 If you do not go to college, you will be working even longer than before. Once again, you may treat the stream of income from your job as a consol or perpetuity. The present value of your annual earnings of $34,000 if you don't go to college is ________$
Answer:
Part 1. If you were to attend college, the present value of your tuition payments would total _______
$33,870.00
Part 2. The present value of your annual earnings of $50,000 as a college graduate is _______
$741,407.10
Part 3 The net present value of going to college is _____
$707,537.10
Part 4. The present value of your annual earnings of $34,000 if you don't go to college is ________
$719,270
Explanation:
a) Data and Calculations:
Annual Tuition, etc = $10,000
Number of college years = 4
Interest rate = 7%
Present Value Annuity Factor = 3.387
PV of $10,000 = $10,000 * 3.387 = $33,870
Annual salary after college in 4 years' time = $50,000
Number of years earning salary = 40 years
Present value annuity factor = 19.434 * 0.763 = 14.828142 (reduced to earnings after 4 years)
PV of $50,000 = $50,000 * 14.828142 = $741,407.10
NPV of going to college = $741,407.10 - $33,870 = $707,537.10
Annual salary without college = $34,000
Number of years earning salary without college = 44 years
Present value annuity factor = 21.155
PV of $34,000 in perpetuity = $34,000 * 21.155 = $719,270
Berkshire Inc. uses a periodic inventory system. At the end of 2017, it missed counting some inventory items, resulting in an inventory understatement by $610,000. Assume that Berkshire has a 30% income tax rate and that this was the only error it made. If undetected, what is the effect of this error on Berkshire's December 31,2017 balance sheet
Answer:
Since the inventory was understated, that means that the cost of goods sold was overstated. Since the COGS was higher, gross profits and operating income were lower. This results in lower than income taxes, and lower net income.
Lower net income results in understated retained earnings (by $427,000), also taxes payable, a liability, will also be understated by $183,000. On the other side of the balance sheet, assets ill be understated by $610,000.
Explanation: