Answer:
Explanation: two reasons for why someone looking at a career in the Energy cluster might want to focus on new technology, such as energy-efficient products or sustainable energy; Energy efficient technologies are now found in most energy conversion chains.Mar 9, 2020
cgehhE10-12 The following are selected 2014 transactions of Pedigo Corporation. Jan. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefi nite. May 1 Purchased for $75,000 a patent with an estimated useful life of 5 years and a legal life of 20 years. Instructions Prepare necessary adjusting entries at December 31 to record amortization required by the events above. E10-13 Gill Company, organized
Zeus, Inc. produces a product that has a variable cost of $9.50 per unit. The company's fixed costs are $40,000. The product sells for $12.00 a unit and the company desires to earn a $20,000 profit. What is the volume of sales in units required to achieve the target profit? (Do not round intermediate calculations.)
Answer:
Break-even point in units= 26,087
Explanation:
Giving the following information:
Selling price= $12
Unitary variable cost= 9.7
Fixed costs= $40,000
Desired profit= $20,000
To calculate the number of units to be sold, we need to use the following formula:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (40,000 + 20,000) / (12 - 9.7)
Break-even point in units= 26,087
Bernie Company sells buttons to fabric stores. Sales are expected to be $2,046,299 in January, $2,484,001 in February and $3,162,122 in March. Bernie Company sets their prices so that they earn an average 46% gross profit on sales revenue. What is budgeted cost of goods sold for February? Round your answer to the nearest whole number. Don't enter commas or dollar signs.
Answer:
$1,701,371
Explanation:
Gross Profit = Sales - Cost of Sales
therefore,
In percentage this equation can be expressed according to the Company policy as :
46 % = 146 % - 100%
Cost of Sales = 100/146 x $2,484,001 = $1,701,371
Conclusion :
Budgeted cost of goods sold for February is $1,701,371
Testbank Multiple Choice Question 81 At the beginning of 2020, Sunland Company issued 8% bonds with a face value of $5700000. These bonds mature in the five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $5259870 to yield 10%. Sunland uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2020
Answer:
$527,737
Explanation:
The Bond Payment or Coupon always includes the Interest Portion and the the Capital Potion. The question only requires the Interest Portion of the Bond.
The Bond Parameters can be set as :
PV = - $5,259,870
FV = $5,700,000
PMT = ($5,700,000 x 8%) ÷ 2 = $228,000
N = 5 x 2 = 10
YTM = 10 %
P/YR = 2
Constructing an amortization schedule for 2020 gives :
Date Capital Portion Interest Balance
June 30 $34,994 $262,994 $5,294,864
Dec 30 $36,743 $264,743 $5,331,607
Total $71,737 $527,737 $5,331,607
therefore,
The amount of interest expense to be reported for 2020 is $527,737
Revi Corp. provides the following information for the upcoming year: It expects to sell 29,000 pool cues for $13 each. Direct materials costs are $3, direct manufacturing labor is $5, and manufacturing overhead is $0.83 per pool cue. The following inventory levels apply to the upcoming year: Beginning inventory Ending inventory Direct materials 24,000 units 24,000 units Work-in-process inventory 0 units 0 units Finished goods inventory 1,200 units 2,800 units What are the budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively
Answer: See explanation
Explanation:
First, we need to calculate the production budget and this will be:
Sales = $29000
Add: Closing inventory of finished goods = $2800
Less: Opening inventory of finished goods = $1200
Production budget = $30600
Direct material purchased:
Production = 30600
Add: Closing inventory of direct material = 24000
Less: Opening inventory of direct material = 24000
Direct material purchased = 36000
a. Budgeted costs for direct materials
= Direct material purchased × price per unit
= 30600 × $3
= $91800
b. Direct manufacturing labor
= Production unit × Cost per unit
= 30600 × $5
= $153000
c. Manufacturing overhead
= Production units × Cost per unit
= 30600 × $0.83
= $25398
Dumphy and Funke are rival tattoo artists in the small town of Feline. There are no other tattoo artists in town. It costs $30 to produce a Tweety Bird tattoo. Assume for simplicity that fixed costs are zero and that Dumphy and Funke perform identical work. For a while, there was too much demand for Funke and Dumphy to handle and they both charged $200 for a tattoo. But recently, demand has dropped significantly and there is not enough work for both to fill their days at any price. However, there is some demand at all prices. What type of competition would Funke and Dumphy likely engage in after the decrease in demand
Answer: price competition
Explanation:
The type of competition would Funke and Dumphy likely engage in after the decrease in demand is price competition.
Price competition simply means when the companies in a particular industry lower their prices afsubst the prices of identical products in order to boost demand and sales.
Since there's a reduction in demand, Dumphy and Funke will engage in price competition to boost sales.
Economic costs of unemployment
Consider a hypothetical economy in which potential output is $200 billion and the natural rate of unemployment is 4%. The current unemployment rate is 5.6%. Since the unemployment rate is greater than the natural rate of unemployment, the economy's actual GDP will be______ potential GDP.
According to Okun's law, the economy's GDP gap is billion. The burden of an increase in the economy-wide unemployment rate can differ widely across regions and across different groups of people. For example, in the United States, the jobless rate among workers with only a high school diploma has tended to be________ than the jobless rate among college graduates.
Answer: less than; higher
Explanation:
Since the unemployment rate is greater than the natural rate of unemployment, the economy's actual GDP will be less than potential GDP.
...the jobless rate among workers with only a high school diploma has tended to be higher than the jobless rate among college graduates.
When the economy is at its natural rate of unemployment, it means that the economy is producing at potential GDP. If however, the unemployment rate is more than this natural rate, it means that the economy is facing a downturn which is causing companies to not employ as much labor. Actual GDP is therefore lower than Potential GDP.
Workers with more specialized skills will usually feel the impact of an increase in unemployment less those with more general skills will. For this reason, college graduates will see less unemployment than those with only a high school diploma.
Scenario: You are in the market for a new car. You do not have a trade-in, but you have saved $3,000 toward a down payment. You currently earn $3,750.00 gross monthly income, of which 28% is withheld for various deductions. You have heard of the 20% rule of thumb, but want to limit your payments to no more than 18% of your net monthly income because of other debt commitments. You currently have a credit score of 685. You expect to drive the car an average 15,000 miles per year.
You're considering purchasing a used-rather than new car. This strategy offers several advantages. Which of the following is not an advantage of purchasing a used car?
A. The reduced down payment required for the purchase
B. A lack of knowledge and confidence in the mechanical condition of the car
C. The price of the automobile
D. Avoidance of the vehicle's significant decrease in value due to depreciation
Answer:
B. A lack of knowledge and confidence in the mechanical condition of the car.
Explanation:
One need to be expert in analyzing a car condition in order to buy a used car. The used car is mechanically weak and the buyer should have good knowledge for the mechanical condition of the car. This is a disadvantage if a person has lack of knowledge in car mechanic when in a situation to buy a used car.
Pina Football Shop began operations on January 2, 2017. The following stock record card for footballs was taken from the records at the end of the year.
Date Voucher Terms Units Received Unit Invoice Cost Gross Invoice
Amount
1/15 10624 Net 30 67 $28 $1,876
3/15 11437 1/5, net 30 82 23 1,886
6/20 21332 1/10, net 30 107 21 2,247
9/1 227644 1/10, net 30 101 17 1,717
11/24 31269 1/10, net 30 93 16 1,488
Totals 450 $9,214
A physical inventory on December 31, 2017, reveals that 111 footballs were in stock. The bookkeeper informs you that all the discounts were taken. Assume that Pina Football Shop uses the invoice price less discount for recording purchases.
(a) Compute the December 31, 2017, inventory using the FIFO method.
B.) Compute the 2017 cost of goods sold using the LIFO method.
Answer:
A. FIFO $1,794
B. LIFO $6,326
Explanation:
(a) Computation for the December 31, 2017, inventory using the FIFO method
Value of closing Stock
93 Footballs purchased in November = 93 * $16 93 Footballs purchased in November= $1,488
18 Footballs purchased in September= (111-93)* $17
18 Footballs purchased in September= 18* $17
18 Footballs purchased in September= $306
Total Value as on 31 December, 2017 =$1,488+$396
Total Value as on 31 December, 2017=$1,794
Therefore the December 31, 2017, inventory using the FIFO method will be $1,794
B.) Computation for the 2017 cost of goods sold using the LIFO method.
First step is to calculate the Value of closing Stock
67 Footballs purchased in January= 67 * $28
67 Footballs purchased in January = $1,876
44 Footballs purchsed in March= (111-67)* $23
44 Footballs purchsed in March=44*$23
44 Footballs purchsed in March= $1,012
Total Value as on 31 December, 2017=$1,876+$1,012
Total Value as on 31 December, 2017 = $2,888
Now let calculate the Cost of goods sold using this formula
Cost of goods sold
= Gross Invoice amount - Value of closing stock
Let plug in the formula
Cost of goods sold= $9,214 - $2,888
Cost of goods sold= $6,326
Therefore the 2017 cost of goods sold using the LIFO method will be $6,326
Apple Inc. just paid a dividend of $3 per share. You expect that Apple's dividend will increase at the rate of 10% per year for the next 10 years. After that, you expect that Apple Inc. will increase its dividend at the rate of 3% per year forever. The required rate of return for Apple is 20%. What is the price of Apple just after the current dividend was paid?
Answer:
The price of Apple just after the current dividend was paid is $26.79.
Explanation:
Note: See the attached file for the calculation of present values for year 1 to 10 dividends.
From the attached excel file, we have:
Previous year dividend in year 1 = Dividend just paid = $3
Total of dividends from year 1 to year 10 = $19.17617169980840
Year 10 dividend = $7.781227380
Therefore, we have:
Year 11 dividend = Year 10 dividend * (100% + Perpetual dividend growth rate) = $7.781227380 * (100% + 3%) = $8.0146642014
Price at year 10 = Year 11 dividend / (Rate of return - Perpetual dividend growth rate) = $8.0146642014 / (20% - 3%) = $47.1450835376471
PV of price at year 10 = Price at year 10 / (100% + Required return)^Number of years = $47.1450835376471 / (100% + 20%)^10 = $7.61419419713817
Price of Apple = Total of dividends from year 1 to year 8 + PV of price at year 10 = $19.17617169980840 + $7.61419419713817 = $26.79
Robert, a highly experienced software engineer, joins a new company as the manager of a large group of employees. In his first meeting with the employees of the new organization, he explains his expectations on the behavior of employees. He also lets the employees know that noncompliance with his norms will result in withholding the rewards that they receive. Which of the following types of power is Robert using here?
a. reward
b. transformational
c. referent
d. coercive
Answer:
reward, maybe even referent
Explanation:
Robert is using rewarding to let people know that they need to work or they won't be rewarded.
MECCS Inc. stock paid its annual dividends of $4.90 per share yesterday. The dividend is expected to decrease at a constant rate of 2.50 percent per year indefinitely. Investors require a rate of return of 8.60 percent on the stock. How much should one share of the stock be priced today
Answer: $43
Explanation:
The current stock price will be calculated as:
= Do(1 - g) / (Ke + g)
where,
Do = $ 4.90
g = 2.50%
Ke = 8.60%
Po = [4.90 - (1 - 0.025)] / [0.086 + 0.025]
Po = 4.7775 / 0.111
Po = $43
The price of one share of the stock today will be $43
Sage Company began operations at the beginning of 2021. The following information pertains to this company.
1. Pretax financial income for 2021 is $87,000.
2. The tax rate enacted for 2021 and future years is 20%.
3. Differences between the 2021 income statement and tax return are listed below:
a. Warranty expense accrued for financial reporting purposes amounts to $6,600. Warranty deductions per the tax return amount to $1,900.
b. Gross profit on construction contracts using the percentage-of-completion method per books amounts to $84,500. Gross profit on construction contracts for tax purposes amounts to $66,300.
c. Depreciation of property, plant, and equipment for financial reporting purposes amounts to $57,900. Depreciation of these assets amounts to $84,300 for the tax return.
d. A $3,200 fine paid for violation of pollution laws was deducted in computing pretax financial income.
e. Interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500.
4. Taxable income is expected for the next few years. (Assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.)
Required:
a. Compute taxable income for 2021.
b. Compute the deferred taxes at December 31, 2021, that relate to the temporary differences described above.
c. Prepare the journal entry to record income tax expense
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
a. Taxable income for 2021.
Sage Company:
Computation of Taxable income and income tax for 2021
Pretax financial Income = $87000
Permanent differences:
Fine for Pollution = $3200
Interest revenue on municipal bonds = -$1500
Temporary differences:
Less: Excess of depreciation as per tax over books = -$26400
Add: Warranty expense in books higher than as per tax = $4700
Less: Gross profit as per books higher than as per tax on construction contracts = -$18200
Taxable Income = $48800
Income Tax (20%) = $9760
b. Deferred Taxes:
Deferred tax assets = $4700*20% = $940
Deferred tax liability = ($26,400 + $18,200) * 20% = $8920
c. Note: Journal Entries are attached in the attachment below.
Alfredo Inc. reports net income of $248,000 for the year ended December 31. It also reports $95,500 depreciation expense and a $5,900 gain on the sale of equipment. Its comparative balance sheet reveals a $39,100 decrease in accounts receivable, a $17,550 increase in accounts payable, and a $13,700 decrease in wages payable. Calculate the cash provided (used) in operating activities using the indirect method.
Answer:
$380,550
Explanation:
Cash flows from operating activities:
Net income $248,000
Adjustments to net income:
Depreciation expense $95,500
Gain on sale of equipment ($5,900)
Decrease in accounts rec. $39,100
Increase in accounts pay. $17,550
Decrease in wages payable ($13,700) $132,550
Net cash flow from operating activities $380,550
Presented below are long-term liability items for Pharoah Company at December 31, 2020. Bonds payable, due 2022 $625,000 Lease liability 60,000 Notes payable, due 2025 70,000 Discount on bonds payable 46,875 Prepare the long-term liabilities section of the balance sheet for Pharoah Company. (Enter account name only and do not provide descriptive information.)
Answer:
See explanation
Explanation:
Consider liabilities due within period of more than 12 months for the long-term liabilities section of the balance sheet.
If The Wall Street Journal lists a stock's dividend as $1, then it is most likely the case that the stock: Multiple Choice pays $1 per share per quarter. paid $.25 per share per quarter for the past year. paid $1 during the past quarter, with no future dividends forecast. is expected to pay a dividend of $1 per share at the end of next year.
Answer:
paid $.25 per share per quarter for the past year
Explanation:
A stock is ownership rights purchased by investors in a public company. Holders of stock are called stockholders and they are regarded as owners of the company.
Stockholders are paid dividends. Dividends are a proportion of a company's profits paid to shareholders.
If the stock's dividend is $1, it means it either paid $1 the past year or paid $.25 per share per quarter for the past year
6.
Jane's Juice Bar has the following cost schedules:
Quantity
Variable Cost
Total Cost
O vats of juice
1
2.
3
4
5
$ 0
10
25
45
70
100
135
$ 30
40
55
75
100
130
165
6
a. Calculate average variable cost, average total
cost, and marginal cost for each quantity.
b. Graph all three curves. What is the
relationship between the marginal-cost
curve and the average-total-cost curve?
Between the marginal-cost curve and the
average-variable-cost curve? Explain.
Answer:
This may help you to solve it
Setrakian Industries needs to raise $48.5 million to fund a new project. The company will sell bonds that have a coupon rate of 5.56 percent paid semiannually and that mature in 10 years. The bonds will be sold at an initial YTM of 6.13 percent and have a par value of $2,000. How many bonds must be sold to raise the necessary funds
Answer:
25,317 unit
Explanation:
Current price of bond = PV(Rate, Nper, Pmt, Fv)
Current price of bond = PV(6.13%/2, 10*2 ,5.56%/2*2000, 2000)
Current price of bond = $1,915.71
Number of bonds to issue = $48,500,000 / $1,915.71
Number of bonds to issue = 25316.98430
Number of bonds to issue = 25,317 unit
8. Zelda owns a 50% general interest in YZ Partnership. At the beginning of the current year, the adjusted basis in her partnership interest was $95,000. In the current year, YZ generated a $110,000 business loss, earned $15,000 dividend and interest income on its investments and recognized a $7,000 capital gain. YZ also made a $5,000 distribution to Zelda. Compute Zelda’s adjusted basis in the partnership at the end of the year.
Answer:
$52,500
Explanation:
Computation for Zelda’s adjusted basis in the partnership at the end of the year.
Zelda’s adjusted basis=$95,000-(50%*$110,000)+(50%*$15,000)+$5,000
Zelda’s adjusted basis=$95,000-$55,000+$7,500+$5,000
Zelda’s adjusted basis= $52,500
Based on the information given we assumed 50% because Zelda is a 50% partner.
Therefore Zelda’s adjusted basis in the partnership at the end of the year will be $52,500
The expected return on a portfolio: Group of answer choices can be greater than the expected return on the best performing security in the portfolio. can be less than the expected return on the worst performing security in the portfolio. is independent of the performance of the overall economy. is limited by the returns on the individual securities within the portfolio. is an arithmetic average of the returns of the individual securities when the weights of those securities are unequal.
Answer:
is limited by the returns on the individual securities within the portfolio
Explanation:
Portfolio is simply defined as a list of securities showing how much is (or will be) invested in each of them.
The expected return on a portfolio is calculated as the weighted average of the expected returns on the securities that the portfolio involves. The weight of each security is the a Portion or a fraction of wealth invested in that security. Expected return on a portfolio of N securities is: rp= sum (Xr).
Expected Return is usually based on anticipated income and anticipated capital appreciation.
Jamarcus was his collegiate chapter's delegate at a national conference of a professional business fraternity, Phi Chi Theta, in which he is a member. When the business meeting was conducted, parliamentary procedure was used, and Jamarcus was not familiar with this. Thus, he looked to the others to learn how he should behave in this situation. What type of influence does this reference group exhibit? procedural transient substantive informational legal
Answer:
informational
Explanation:
Informational influence is defined as a new concept or information that occurs within a group and leads to change in group member attitudes, behaviour, and belief.
In the given scenario parliamentary procedure was used in a business meeting and Jamarcus was not familiar with this.
He looked to other group members to learn how he should behave in this situation.
In this case the group is providing information of proper way of behaving during the meeting.
How does risk influence the rate of interest?
Answer:
Interest rate risk directly affects the values of fixed income securities. Since interest rates and bond prices are inversely related, the risk associated with a rise in interest rates causes bond prices to fall and vice versa. Interest rate risk affects the prices of bonds, and all bondholders face this type of risk.
Explanation:
Hope this helped Mark BRAINLEST!!
The following information applies to the questions displayed below Over a four-year period, Jackie Corporation reported the following series of gross profits 2018 2019 2020 2021 $60,000 $66,000 $74,000 $90,000 Cost of goods sold32,000 46,00028,000 48,000 $28,000 $20,000 $46,000 $42,000 Net sales Cross profit In 2021, the company performed a comprehensive review of its inventory accounting procedures. Based on this review company records reveal that ending inventory was understated by $11,000 in 2019. Inventory in all other years is correct. Problem 6-10A Part 1
Required:
1. Calculate the gross profit ratio for each of the four years based on amounts originally reported. (Round your answers to the nearest whole percent.) Gross Profit Ratio 2018 2019 2020 2021 The following information applies to the questions displayed below Over a four-year period, Jackie Corporation reported the following series of gross profits 2021 Net sales Cost of goods sold Gross profit $60,000 $66,000 $74,000 $90,000 $28,000 $20,000 46,000 $42,000 In 2021, the company performed a comprehensive review of its inventory accounting procedures. Based on this review, company records reveal that ending inventory was understated by $11,000 in 2019. Inventory in all other years is correct
2. Calculate the gross profit ratio for each of the four years based on corrected amounts. (Round your answers to the nearest whole percent.) Gross Ratio 2018 2019 2020 2021
Answer:
1. Gross Profit ratio
2018 47%
2019 30%
2020 62%
2021 47%
2. Gross Profit ratio
2018 47%
2019 47%
2020 47%
2021 47%
Explanation:
1. Calculation for the gross profit ratio for each of the four years based on amounts originally reported.
2018 2019 2020 2021
Net sales $60,000 $66,000 $74,000 $90,000
Less Cost of goods sold $32,000 $46,000 $28,000 $48,000
=Gross profit$ 28,000 $20,000 $46,000 $42,000
Gross Profit ratio
2018 47% =$28,000/$60,000
2019 30% =$20,000/$66,000
2020 62% =$46,000/$74,000
2021 47% =$42,000/$90,000
2. Calculation for the gross profit ratio for each of the four years based on corrected amounts.
Cost of goods sold 2019=$46,000-$11,000
Cost of goods sold 2019=$35,000
Cost of goods sold 2020=$28,000+$11,000
Cost of goods sold 2020=$39,000
2018 2019 2020 2021
Net sales $60,000 $66,000 $74,000 $90,000
Less Cost of goods sold $32,000 $35,000 $39,000 $48,000
=Gross profit $28,000 $31,000 $35,000 $42,000
Gross Profit ratio
2018 47% =$28,000/$60,000
2019 47% =$31,000/$66,000
2020 47% =$35,000/$74,000
2021 47% =$42,000/$90,000
Here is the income statement for Teal Mountain Inc.
TEAL MOUNTAIN INC.
Income Statement
For the Year Ended December 31, 2017
Sales revenue $402,900
Cost of goods sold 256,700
Gross profit 146,200
Expenses (including $ 10,200 interest and $29,600 income taxes) 89,200
Net income $57,000
Additional information:
1. Common stock outstanding January 1, 2017, was 30,000 shares, and 39,000 shares were outstanding at December 31, 2017.
2. The market price of Teal Mountain stock was $15 in 2017.
3. Cash dividends of $24,700 were paid, $ 6,500 of which were to preferred stockholders.
Compute the following measures for 2017.
(a) Earnings per share $_____
(b) Price-earnings ratio _____ times
(c) Payout ratio _____ %
(d) Times interest earned _____ times
Answer:
See below
Explanation:
a. The earnings per share would be calculated as;
Earnings per share = (Net income - Preferred stock dividend) / Average number of common shares outstanding
But
Weighted average number of common shares = (Number of common shares outstanding in the beginning + Number of common shares outstanding at then end) / 2
= (30,000 + 39,000) / 2
= 34,500
Preferred stock dividend = 6,500
Therefore,
Earnings per share = ($57,000 - $6,500) / 34,500
= $50,500 / 34,500
= $1.46
b. Price earnings ratio
= Market price per share / Earning per share
= $15 / $1.46
= 10.27 times
c. The payout ratio
= (Total cash dividends - Preferred stock dividends) / Net income
= ($24,700 - $6,500) / $57,000
= $18,200 / $57,00)
= 31.93%
d. Times interest
= ( Net income + Interest expense + Tax expense) / Interest expense.
= $57,000 + $10,200 + $29,600) / $10,200
= $96,800 / $10,200
= 9.49 times
Road Gripper Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 4,160 tires were as follows:
Standard Costs Actual Costs
Direct materials 100,000 lbs. at $6.40 101,000 lbs. at $6.50
Direct labor 2,080 hrs. at $15.75 2,000 hrs. at $15.40
Factory overhead Rates per direct labor hr.,
based on 100% of normal capacity of 2,000 direct
labor hrs.:
Variable cost, $4.00 $8,200 variable cost
Fixed cost, $6.00 $12,000 fixed cost
Each tire requires 0.5 hour of direct labor.
Required:
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance.
b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance.
c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance.
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
a.
In part a, we need to find the following 3 requirements:
1. Direct Materials Price Variance
2. Direct Materials Quantity Variance
3. Total Direct Materials Cost Variance
Direct Materials Price Variance:
It can be calculated by using the following formula:
DMPV = AQ multiplied by (AP minus the SP)
Where,
DMPV = Direct Materials Price Variance
AQ = Actual Quantity
AP = Actual Price
SP = Standard Price
We do have all the data, so just plug in the values into the above equation to get the DMPV.
AQ = 101,000
AP = 6.50 USD
SP = 6.40 USD
So,
DMPV = 101,000 ( 6.50 - 6.40)
DMPV = 10,100 USD
Direct Materials Quantity Variance:
DMQV = SP ( AQ - SQ )
Where,
DMQV = Direct Materials Quantity Variance = ?
SP = Standard Price = 6.40 USD
AQ = Actual Quantity = 101,000
SQ = Standard Quantity = 100,000
Plugging in the values:
DMQV = 6.40 ( 101,000 - 100,000)
DMQV = 6400 USD
Total Direct Materials Cost Variance:
DMCV = SMC - AMC
Where,
DMCV = Direct Materials Cost Variance = ?
SMC = Standard Market Cost = 6.40 USD x 100,000
AMC = Actual market Cost = 6.50 USD x 101,000
DMCV = (6.40 USD x 100,000) - (6.50 USD x 101,000)
DMCV = 640,000 - 656,500
DMCV = 16,500 USD
b.
For part b, we need following particulars:
1. Direct Labor Rate Variance (DLRV)
2. Direct Labor Time Variance (DLTV)
3. Direct Labor Cost Variance (DLCV)
Direct Labor Rate Variance (DLRV) :
DLRV = (ADLR - SDLR) x ADLH
Where,
ADLR = Actual Direct Labor Rate = 15.40 USD
SDLR = Standard Direct Labor Rate = 15.75 USD
ADLH = Actual Direct Labor Hour = 2000
So,
DLRV = (ADLR - SDLR) x ADLH
DLRV = (15.40 USD - 15.75 USD ) x 2000
DLRV = 700 USD
Direct Labor Time Variance (DLTV):
DLTV = ( ADLH - SDLH ) x SDLR
SDLH = Standard Direct Labor Hour = 2080
DLTV = ( 2000 - 2080 ) x 15.75 USD
DLTV = 1260 USD
Direct Labor Cost Variance (DLCV)
DLCV = SDLC - ADLC
SDLC = Standard Direct Labor Cost
ADLC = Actual Direct Labor Cost
DLCV = (1540 x 2000) - (15.75 x 2080)
DLCV = 1960 USD
c.
For Part c, we need following:
1. variable factory overhead controllable variance (VFOCV)
2. fixed factory overhead volume variance (FFOVV)
3. Total factory overhead cost variance (TFOCV)
variable factory overhead controllable variance (VFOCV):
VFOCV = AFO - B
Where,
AFO = Actual Factory Overhead = 8200
B = Budgeted Allowance Based on Standard Hours Allowed = 4160x0.5x4
B = 8320 USD
VFOCV = 8200 - 8320
VFOCV = 120 USD
fixed factory overhead volume variance (FFOVV) :
FFOVV = (S - BH ) x SOR
Where,
S = Standard Hours for actual output = 4160 x 0.5
BH = Budgeted Hours = 2080
SOR = Standard Overhead Rate = 6 USD
FFOVV = (4160 x 0.5 - 2080) x 6
FFOVV = 0 USD
Total factory overhead cost variance (TFOCV):
TFOCV = AFO - SO
Where,
AFO = Actual Factory Overhead = 20,200
SO = Standard Overhead = 2080 x 10
TFOCV = 20,200 - ( 2080 x 10 )
TFOCV = 600 USD
What is an easement? What is it called when an easement is obtained against the consent of the landowner? What type of easement can be created by two adjacent landowners where one of them is “landlocked” by the other landowner?
Answer:
1. An easement is the right given to a person by law to utilize a particular part of another person's land.
2. When an easement is obtained against the consent of the landowner it is known as Prescriptive easement.
3. An easement that is created by two adjacent landowners where one is landlocked by the other landowner is called Easement appurtenant.
Explanation:
An easement is the lawful right of a person to use another person's property. Ingress, egress, and drainage are common reasons why an easement might be needed. When a piece of land does not have access to a roadway, then an easement might be required.
Prescriptive easement occurs when a land has been used by another person who is not the legal owner for up to twenty years without the consent/knowledge of the original owner of the land.
Easement appurtenant occurs for example when a person cannot access his own land with passing through another person's land. An easement by necessity can be created in such situations to solve the problem.
In 2019, Ivanhoe Company had a break-even point of $385,000 based on a selling price of $7 per unit and fixed costs of $115,500. In 2020, the selling price and the variable costs per unit did not change, but the break-even point increased to $454,000.
Required:
a. Compute the variable costs per unit and the contribution margin ratio for 2019.
b. Compute the increase in fixed costs for 2020.
Answer:
Results are below.
Explanation:
Giving the following information:
2019:
Break-even point= $385,000
Selling price= $7
Fixed costs= $115,500
2020:
Break-even point= $454,000
First, we need to calculate the contribution margin ratio for 2019. We will use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
385,000 = 115,500 / contribution margin ratio
contribution margin ratio*385,000 = 115,500
contribution margin ratio= 0.3
Now, we can determine the unitary variable cost:
contribution margin ratio= unitary contribution margin / selling price
0.3 = (7 - unitary variable cost) / 7
2.1 = 7 - unitary variable cost
unitary variable cost= $4.9
Finally, we can determine the fixed costs for 2020 and the net increase with 2019:
Break-even point (dollars)= fixed costs/ contribution margin ratio
454,000= fixed costs / 0.3
$136,200 = fixed costs
Increase= 136,200 - 115,500= $20,700
Chess Top uses the perpetual inventory system. On May 1st, the beginning inventory consisted of 480 units that cost $65 each. During the month, the company made two purchases: May 3rd, 720 units at $68 each May 20th, 360 units at $70 each. Chess Top also sold 800 units on May 10th , Using the LIFO method, what is the amount of cost of goods sold for themonth
Answer:
the amount of the cost of goods sold is $55,120
Explanation:
The computation of the cost of goods sold for the month is shown below:
Since 800 units were sold out of which 360 units would sold at $70 and the remaining units i.e. 440 units would be sold at $68
= 360 units × $70 + 440 units × $68
= $25,200 + $29,920
= $55,120
Hence, the amount of the cost of goods sold is $55,120
In its income statement for the year ended December 31, 2022, Pharoah Company reported the following condensed data. Salaries and wages expenses $595,200 Loss on disposal of plant assets $106,880 Cost of goods sold 1,263,360 Sales revenue 2,828,800 Interest expense 85,200 Income tax expense 32,000 Interest revenue 83,200 Sales discounts 204,800 Depreciation expense 396,800 Utilities expense 140,800
Prepare a multiple-step income statement. (List other revenues before other expenses.)
Pharoah Company
Income Statement
Answer:
Net income is $86,960.
Explanation:
A multi-step income statement is an income statement which dsplayes th gross profit and the detailed of each category of expenses and incomes to arrive at a company's net income for a particular period.
A multi-step income statement can be prepared as follows:
Pharoah Company
Income statement
For the year ended December 31, 2022
Details $
Sales revenue 2,828,800
Sales discounts (204,800)
Net sales revenue 2,624,000
Cost of goods sold (1,263,360)
Gross profit 1,360,640
Operating expenses:
Salaries and wages expenses (595,200)
Depreciation expense (396,800)
Utilities expense (140,800)
Operating income 227,840
Other income (loss):
Loss on disposal of plant assets (106,880)
Interest income (expense):
Interest expense (85,200)
Interest revenue 83,200
Income before tax 118,960
Income tax expense (32,000)
Net income 86,960
The following are budgeted data: January February March Sales in units 15,900 21,800 18,900 Production in units 18,900 19,900 17,900 One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. Purchases of raw materials for February would be budgeted to be:
Answer:
20,300 pounds
Explanation:
Purchases Budget for February - Pounds
Material required in Production 19,900
Add Opening Materials Inventory (19,900 x 20%) 3,980
Total 23,880
Less Closing Materials Inventory (17,900 x 20%) (3,580)
Budgeted Purchases 20,300
Therefore,
Purchases of raw materials for February would be budgeted to be 20,300 pounds