Answer:
They like googIe
Explanation:
Factory rent 3140
Company advertising 1070
Wages paid to assembly workers 31000
Depreciation for salespersons' vehicles 2180
Screws 580
Utilities for factory 870
Assembly supervisor's salary 3520
Sandpaper President's salary 135
Plastic tubing 5040
Paint 4170
Sales commissions 225
Factory insurance 1210
Depreciation on cutting machines 1100
Wages paid to painters 2130
Determine the total cost for each of the following:
a. Direct Materials
b. Direct Labor
c. Manufacturing Overhead
d. Prime Cost
e. Conversion Cost
f. Total Product Cost
Answer and Explanation:
The computation is shown below:
a. The direct material cost is
Screws $580
Sandpaper $135
Plastic Tubing $4170
Paint $225
Cost of Direct Material $5,110
b. The direct labor cost is
Wages paid to Assembly workers $31,000
Assembly Supervisors Salary $3,520
Wages paid to painters $8,200
Cost of Direct Labor $42,720
d. The Prime Cost is
= Direct Labor + direct material
= $42,720 + $5,110
= $47,830
c. The Manufacturing Overheads is
Factory Rent $3,140
Utilities for factory $870
Factory Insurance $1,100
Depreciation on cutting Machines $2,130
Manufacturing overhead cost $7,240
e. The conversion cost is
= Prime cost + manufacturing overhead
= $47,830 + $7,240
= $55,070
f. The total product cost is
= Conversion cost + Production cost + selling overhead
= $55,070 + $5,040 $1,070 + $2,180 + $1,210
= $64,570
Sheffield Inc. took a physical inventory at the end of the year and determined that $845000 of goods were on hand. In addition, the following items were not included in the physical count. Sheffield, Inc. determined that $95500 of goods purchased were in transit that were shipped f.o.b. destination (goods were actually received by the company three days after the inventory count). The company sold $39500 worth of inventory f.o.b. destination that did not reach the destination yet. What amount should Sheffield report as inventory at the end of the year
Answer:
$980,000
Explanation:
Calculation for What amount should Bell report as inventory at the end of the year
Goods on hand $845,000
Add Goods in transit $95,500
Add Goods out on consignment $39,500
Ending Inventory $980,000
($845,000+$95,500+$39,500)
Therefore the amount that Bell should report as inventory at the end of the year will be $980,000
Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended juices are then bottled and packed for shipping in the Bottling Department. The following information pertains to the operations of the Blending Department for June.
Percent Completed
Units Materials Conversion
Work in process, beginning 20,000 100% 75%
Started into production 180,000
Completed and transferred out 160,000
Work in process, ending 40,000 100% 25%
Materials Conversion
Work in process, beginning $25,200 $24,800
Cost added during June $334,800 $238,700
Required:
1. Calculate the Blending Department's equivalent units of production for materials and conversion in June.
2. Calculate the Blending Department's cost per equivalent unit for materials and conversion in June.
3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June.
4. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June.
5. Prepare a cost reconciliation report for the Blending Department for June.
Answer:
Sunspot Beverages, Ltd.
Blending Department
1. Equivalent units of production:
Units Materials Conversion
Completed and transferred out 160,000 160,000 160,000
Work in process, ending 40,000 40,000 10,000
Total equivalent units 200,000 170,000
2. Cost per equivalent unit:
Materials Conversion
Total cost of production $360,000 $263,500
Total equivalent units 200,000 170,000
Cost per equivalent unit $1.80 $1.55
3 & 4. Cost assigned to:
Units Materials Conversion Total
Completed and transferred out 160,000 $288,000 $248,000 $476,000
Work in process, ending 40,000 72,000 15,500 87,500
Total costs assigned $360,000 $263,500 $623,500
5. Cost Reconciliation Report:
Materials Conversion Total
Work in process, beginning $25,200 $24,800 $50,000
Cost added during June $334,800 $238,700 573,500
Total cost of production $360,000 $263,500 $623,500
Completed and transferred out $288,000 $248,000 $476,000
Work in process, ending 72,000 15,500 87,500
Total costs assigned $360,000 $263,500 $623,500
Explanation:
a) Data and Calculations:
Percent Completed
Units Materials Conversion
Work in process, beginning 20,000 100% 75%
Started into production 180,000
Completed and transferred out 160,000
Work in process, ending 40,000 100% 25%
Materials Conversion
Work in process, beginning $25,200 $24,800
Cost added during June $334,800 $238,700
Total cost of production $360,000 $263,500
A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $12 per hour and capital is rented at $8 per hour. Currently, the marginal product of labor is 60 units of output per hour and the marginal product of capital is 45 units of output per hour is the firm using the cost minimizing combination of labor and capital? If not, should the firm increase or decrease the amount of capital used in its production process?
Answer:
Explanation:
According to the rule of cost minimization, a firm should should employ that quantity f labor and capital for which the marginal rate of technical substitution between capital and labor (MRTSkl) equals the wage rental ratio (w/r). Hence, the cost minimization rules becomes:
(MRTSkl) = w/r
MPl / MPk = w / r
MPl / w = MPk / r
In the case given, substitute the values of the variables and find that
MPl / w = MPk / r
60 / 12 < 45 / 8
5 < 5.625
Since the ratio is not equal, the firm is not using the optimum mix of inputs. On last dollar spent basis, capital is a better deal than labor, and the firm should use less labor and increase the amount of capital in order to minimize costs.
Jake Fleming sells graphic card update kits for computers. Jake purchases these kits for $20 and sells about 250 kits a year. Each time Jake places an order, it costs him $25 to cover shipping and paperwork. Jake figures that the cost of holding an update kit in inventory is about $3.50 per kit per year. What is the economic order quantity
Answer:
60 Kits
Explanation:
Cost price (C) = $20/Kit
Yearly se (D) = 250 kit/year
Shipping cost / Ordering cost (Co) = $25
Holding cost (Ch) = $3.5/Kit-year
Economic order quantity = √2.D.Co / Ch
Economic order quantity = √2*250*25/3.5
Economic order quantity = √12500/3.5
Economic order quantity = √3571.4285
Economic order quantity = 59.7614305
Economic order quantity = 60 Kits
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.
April 30 May 31
Inventories
Raw materials $44,000 $49,000
Work in process 9,300 19,800
Finished goods 67,000 34,600
Activities and information for May
Raw materials purchases (paid with cash) 185,000
Factory payroll (paid with cash) 250,000
Factory overhead
Indirect materials 10,000
Indirect labor 57,500
Other overhead costs 106,000
Sales (received in cash) 2,000,000
Pre-determined overhead rate based
on direct labor cost 55%
Compute the following amounts for the month of May using T-accounts.
Cost of direct materials used.
Cost of direct labor used.
Cost of goods manufactured.
Cost of goods sold.
Gross profit.
Overapplied or underapplied overhead.
Answer:
Cost of Direct Material Used $134,900.
Under applied Overhead $36,000
Explanation:
Cost of Direct Material Used
Opening Material $44,000
Add: Opening Work in Process $9,300
Add: Purchases $185,000
Less: Closing Material $49,000
Less: Closing Work in process $19,800
Less: Closing finished goods $34,600
= $134,900
Overhead Rate Application:
Budgeted Overhead 55% of direct labor cost [55% * 250,000] = $137,500
Actual Overhead is $173,500
Under applied Overhead is $36,000
The development of cotton and woolen mills in the mill cities of England, and later New England, caused tremendous sociological change as potential workers (especially women) swarmed from rural areas to the growing industrial cities. Cite some examples of similar occurrences in more recent times in developing countries.
Explanation:
Agribusiness is the strongest sector of the Brazilian economy, for this reason there is a change in the flow of workers who migrated from the southeastern region of Brazil where the largest Brazilian metropolises such as Rio and São Paulo are concentrated to the central west region of Brazil, where there is the largest agricultural productivity in Brazil.
The high investment and industrialization in the region, the strengthening of Brazilian agribusiness and the lack of employment in other regions of the country were the causes that contributed to the greater demand for jobs in the central west region of the country.
The LFH Corporation makes and sells a single product, Product T. Each unit of Product T requires 1.5 direct labor-hours at a rate of $10.50 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. LFH Corporation needs to prepare a Direct Labor Budget for the second quarter of next year. The company has budgeted to produce 28,000 units of Product T in June. The finished goods inventories on June 1 and June 30 were budgeted at 800 and 600 units, respectively. Budgeted direct labor costs for June would be:
Answer:
$441,000
Explanation:
Budgeted direct labor cost = Budgeted production * Hours per unit * Rate per hour
Budgeted direct labor cost = 28,000 units * 1.5 DLH * $10.50
Budgeted direct labor cost = $441,000
So, budgeted direct labor cost for June would be $441,000
The Oxford Company uses a job order cost system and applies factory overhead to jobs on the basis of direct labor cost. During the month of July, the following activities took place in the work-in-process account:
Beginning $15,000
Direct materials 10,000
Direct labor 30,000
Overhead applied 15,000
 Â
At the end of July, only one job (Job #15), was still in process. This job has been charged with $2,000 of direct materials cost.
Required:
Determine the amount of direct labor cost incurred and overhead applied in the ending inventory of work-in-process on July 31.
Answer:
See below
Explanation:
The amount of direct labor cost incurred is computed as;
= $30,000/$70,000 × $2,000
= $857
Overhead applied in ending working in the ending inventory of work in process on July 31
= $15,000/$70,000 × $2,000
= $429
Which of the following statements are true oflong-term investments?
a. They can include bonds and stocks not intended to be sold in the near future.
b. They can be considered cash equivalents.
c. They can include assets not used in operations, such as investments in land.
d. They generally include investments that will mature in 3 to 12 months.
e. They are reported with noncurrent assets on the balance sheet.
f. They are always easily sold and therefore qualify as being marketable.
Answer:
a. They can include bonds and stocks not intended to be sold in the near future.
c. They can include assets not used in operations, such as investments in land.
e. They are reported with noncurrent assets on the balance sheet.
Explanation:
Long term investment or assets are those that are typically held in a company's balance sheet for many years. They can include assets such as land, equipment like machinery, buildings and vehicles.
They also include sticks and bonds that won't be used in the short term.
So long term investment are not cash equivalents because cash can be used in the short term.
Also it cannot be used within 3 - 12 months.
They are not easily sold as they sold so they are not considered marketable asset in the short run.
Long term investment is considered to be a non current asset as they last longer than a year on the balance sheet.
Which of the following best illustrates Hofstede's definition of collectivism?
a. Managers at Honest Tea expect that all employees will have an interest and part in environmental sustainability
b. The founder of Honest Tea stresses the importance of equality and opportunity
c. An employee of Honest Tea prefers to work alone and puts him- or herself above others
d. The managers of Honest Tea prefer tradition over change
e. Employees in Honest Tea have high levels of anxiety about uncertainty
Answer:
a. Managers at Honest Tea expect that all employees will have an interest and part in environmental sustainability
Explanation:
Analyzing the information about Honest Tea, it is possible to understand that sustainability is an issue that has a lot of weight for the company, and all its processes are managed in an environmentally responsible manner. Therefore, it is correct to say that Honest Tea managers expect all employees to be interested and participate in environmental sustainability, as this is a value that identifies and positions the company in the market, and it is essential that this value is shared by all employees.
Environmental management is a form of management that provides significant advantages to an organization, as it standardizes procedures and policies to reduce environmental impacts, the company operates with a focus on continuous improvement that reduces costs, waste, makes work most satisfactory and sustainability as a shared value.
Camptown Togs, Inc., a children’s clothing manufacturer, has always found payroll processing to be costly because it must be done by a clerk so that the number of piece-goods coupons received by each employee can be collected and the types of tasks performed by each employee can be calculated. Not long ago, an industrial engineer designed a system that partially automates the process by means of a scanner that reads the piece-goods coupons. Management is enthusiastic about this system because it utilizes some personal computer systems that were purchased recently. It is expected that this new automated system will save $45,000 per year in labor. The new system will cost about $30,000 to build and test prior to operation. It is expected that operating costs, including income taxes, will be about $5,000 per year. The system will have a five-year useful life. The expected net salvage value of the system is estimated to be $3,000.
(a) Identify the cash inflows over the life of the project.
(b) Identify the cash outflows over the life of the project.
(c) Determine the net cash flows over the life of the project.
Answer:
a. Time period Cash Inflow
Year 1 $45,000
Year 2 $45,000
Year 3 $45,000
Year 4 $45,000
Year 5 $48,000 ($45,000+$3,000)
b. Time period Cash Outflow
Year 0 $30,000
Year 1 $5,000
Year 2 $5,000
Year 3 $5,000
Year 4 $5,000
Year 5 $5,000
c. Time period Cash Inflow Cash Outflow Net Cash Flow
Year 0 $0 $30,000 -$30,000
Year 1 $45,000 $5,000 $40,000
Year 2 $45,000 $5,000 $40,000
Year 3 $45,000 $5,000 $40,000
Year 4 $45,000 $5,000 $40,000
Year 4 $48,000 $5,000 $43,000
Emily recently quit her job at a major corporation because she saw little chance for advancement. Although she is still searching for a new position, Emily believes the economy is healthy and she hears that several firms are hiring people with her qualifications. Which of the following statements about Emily's current situation is most accurate?
a. not considered unemployed because she voluntarily quit her job.
b. an example of cyclical unemployment.
c.an example of frictional unemployment.
d. likely to find employment quickly if she seeks training in a different field
Answer:
C)an example of frictional unemployment
Explanation:
Frictional unemployment can be regarded as " search unemployment" and it's a type of unemployment which can be as a result of the individual circumstances, this is the period of time used between jobs by workers trying to search for jobs or moving from initial job to another.
Imagine that your country takes in $100 million each year in tax money but chooses to spend $500 million on various services it provides. What type of stance does your country take on fiscal policy?
A.
expansionary stance
B.
contractionary stance
C.
economic stance
D.
neutral stance
For plato, Expansionary stance.
Expansionary stance is the type of stance does your country take on fiscal policy. Hence, option A is correct.
What is Expansionary stance?When government expenditure surpasses tax receipts, the fiscal attitude is said to be "expansionary" because this tends to increase aggregate demand. For instance, household spending will increase if income taxes are reduced by the government.
Governments engage in contractionary fiscal policy when they either cut spending or raise taxes. Its name alludes to the method by which the economy contracts. It limits the amount of money that both businesses and people can spend.
Contractionary policy is used to control inflation. Governments are said to be implementing an expansionary fiscal strategy when they lower tax rates while raising spending to promote economic growth. As a result of an increase in purchasing power, consumption increases.
Thus, option A is correct.
For more information about Expansionary stance, click here
https://brainly.com/question/26719610
#SPJ2
A marketing researcher wants to estimate the mean amount spent (S) on Amazon.com by Amazon Prime member shoppers. Suppose a random sample of 100 Amazon Prime member shoppers who recently made a purchase on Amazon.com yielded a mean of $1,500.
a. Suppose the standard deviation of the amount spent ($) on Amazon.com is $200. Construct a 95% confidence interval estimate for the mean spending for all Amazon Prime member shoppers.
b. Suppose the standard deviation of the sample of 100 Amazon Prime member shoppers is $200. Construct a 95% confidence interval estimate for the mean spending for all Amazon Prime member shoppers.
Answer:
The answer is below
Explanation:
a)
Given that mean (μ) = $1500, standard deviation (σ) = $200, sample size (n) = 100
confidence (C) = 95% = 0.95
α = 1 - C = 1 - 0.95 = 0.05
α/2 = 0.05 / 2 = 0.025
The z score that corresponds with 0.475 (0.5 - 0.025) is 1.96. Therefore the margin of error (E) is:
[tex]E = z_\frac{\alpha}{2} *\frac{\sigma}{\sqrt{n} } \\\\E=1.96*\frac{200}{\sqrt{100} } =39.2\\[/tex]
The confidence interval = (μ ± E) = (1500 ± 39.2) = (1500 - 39.2, 1500 + 39.2) = (1460.8, 1539.2)
The confidence interval is between $1460.8 and $1539.2.
b) Given that mean (μ) = $1500, standard deviation for 100 samples = σ /√n = $200,
confidence (C) = 95% = 0.95
[tex]E = z_\frac{\alpha}{2} *\frac{\sigma}{\sqrt{n} } \\\\E=1.96*200=392\\[/tex]
The confidence interval = (μ ± E) = (1500 ± 392) = (1500 - 392, 1500 + 392) = (1108, 1892)
The confidence interval is between $1108 and $1892.
If you buy a ticket to an outdoor concert but come down with a bad cold on the night of the show, the principle of ____ suggests you should not consider the money you already spent on the ticket when deciding whether or not to go.
Answer:
sunk cost
Explanation:
Sunk cost is cost that has already been incurred and it cannot be recovered. When making future decisions, sunk cost should not be considered.
The money i paid for the ticket is the sunk cost. I should not consider this cost when making the decision of whether to for the concert or not to
Bocelli Co. purchased $120,000 of 6%, 20-year Sanz County bonds on May 11, Year 1, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Bocelli Co. sold $30,000 of the Sanz County bonds at 99 plus $150 accrued interest less a $100 brokerage commission. Provide journal entries for the following:
a. The purchase of the bonds on May 11 plus 40 days of accrued interest; assume a 360-day year.
b. Semiannual interest on October 1.
c. Sale of the bonds on October 31.
d. Adjusting entry for accrued interest of $1,365 on December 31, Year 1.
Answer:
S/n General journal Debit Credit
a Investment in Sanz County bonds $120,000
Interest $800
(120,000*6%*40/360)
Cash $120,800
(The purchase of the bonds on May 11 plus 40 days of accrued
interest; assume a 360-day year.)
b. Cash $3,600
Interest receivable $800
Interest revenue $2,800
(Semiannual interest on October 1)
c. Cash(150* (99%*30,000) - $100) $29,750
Loss on sale of investments $400
Investment in Sanz County bonds $30,000
Interest revenue $150
(Sale of the bonds on October 31)
d. Interest receivables $1,365
Interest revenue $1,365
(Adjusting entry for accrued interest of $1,365 on
December 31, Year 1.)
1. Firm L, which operates an internet clothing business, is located in State L. This year, the firm shipped $18 million of merchandise to customers living in State R. State R imposes a six percent sale and use tax on the purchase and consumption of retail goods within the state. a) Do State R residents who purchased Firm L merchandise owe use tax on their purchases? b) If State R could legally require Firm L to collect a 6 percent tax on internet sales made to residents of the State, how much additional revenue would the state collect?
Answer:
hhdhdhhhhhhbbh Gutiérrez auditivas Montt secciones función dio un en CNN en un fin un TV un un TV û55 es ç de se ha de CF no tu tu tu DNI fin un ghn ghhh ofi un en co en cu TV dj en co si TV en co TV co en cu cm cubrir ella alucinatoria la celula la medicina y cirugía y el ser humano
The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances:
Account Title Debits Credits
Cash 30,000
Accounts receivable 15,000
Equipment 20,000
Accumulated depreciation 6,000
Salaries payable 9,000
Common stock 40,500
Retained earnings 9,500
Total 65,000 65,000
The following is a summary of the transactions for the year:
Sales of services, $100,000, of which $30,000 was on credit.
Collected on accounts receivable, $27,300.
Issued shares of common stock in exchange for $10,000 in cash.
Paid salaries, $50,000 (of which $9,000 was for salaries payable).
Paid miscellaneous expenses, $24,000.
Purchased equipment for $15,000 in cash.
Paid $2,500 in cash dividends to shareholders.
Accrued salaries at year-end amounted to $1,000.
Depreciation for the year on the equipment is $2,000.
Required:
2., 5, & 8. Prepare the summary, adjusting and closing entries for each of the transactions listed.
3. Post the transactions, adjusting and closing entries into the appropriate t-accounts.
4. Prepare an unadjusted trial balance.
6. Prepare an adjusted trial balance.
7-a. Prepare an income statement for 2018.
7-b. Prepare a balance sheet as of December 31, 2018.
9. Prepare a post-closing trial balance.
Answer:
Karlin Company
T-Accounts
Cash
Account Title Debits Credits
Beginning balance 30,000
Service Revenue 70,000
Accounts receivable 27,300
Common Stock 10,000
Salaries payable 9,000
Salaries expense 41,000
Miscellaneous expenses 24,000
Equipment 15,000
Dividends 2,500
Balance 45,800
Totals 137,300 137,300
Accounts receivable
Account Title Debits Credits
Beginning balance 15,000
Service Revenue 30,000
Cash 27,300
Balance 17,700
Totals 45,000 45,000
Equipment
Account Title Debits Credits
Beginning balance 20,000
Cash 15,000
Balance 35,000
Totals 35,000 35,000
Accumulated depreciation
Account Title Debits Credits
Beginning balance 6,000
Depreciation expense 2,000
Balance 8,000
Totals 8,000 8,000
Salaries payable
Account Title Debits Credits
Beginning balance 9,000
Cash 9,000
Salaries Expense 1,000
Balance 1,000
Totals 10,000 10,000
Common stock
Account Title Debits Credits
Beginning balance 40,500
Cash 10,000
Balance 50,500
Totals 50,500 50,500
Retained earnings
Account Title Debits Credits
Beginning balance 9,500
Dividend
Account Title Debits Credits
Cash 2,500
Service Revenue
Account Title Debits Credits
Cash 70,000
Accounts Receivable 30,000
Balance 100,000
Totals 100,000 100,000
Salaries Expense
Account Title Debits Credits
Cash 41,000
Salaries payable 1,000
Balance 42,000
Totals 42,000 42,000
Miscellaneous Expense
Account Title Debits Credits
Cash 24,000
Depreciation Expense
Account Title Debits Credits
Accumulated depr 2,000
Unadjusted Trial Balance as of December 31, 2018:Account Title Debits Credits
Cash $45,800
Accounts receivable 17,700
Equipment 35,000
Accumulated depreciation $6,000
Common stock 50,500
Retained earnings 9,500
Dividends 2,500
Service Revenue 100,000
Salaries expense 41,000
Miscellaneous exp. 24,000
Totals $166,000 $166,000
Adjusted Trial Balance as of December 31, 2018:Account Title Debits Credits
Cash $45,800
Accounts receivable 17,700
Equipment 35,000
Accumulated depreciation $8,000
Salaries payable 1,000
Common stock 50,500
Retained earnings 9,500
Dividends 2,500
Service Revenue 100,000
Salaries expense 42,000
Miscellaneous exp. 24,000
Depreciation exp. 2,000
Totals $169,000 $169,000
Income Statement for the year ended December 31, 2018:Service Revenue 100,000
Salaries expense 42,000
Miscellaneous exp. 24,000
Depreciation exp. 2,000 68,000
Net Income 32,000
Retained earnings 1/1/2018 9,500
Dividends 2,500
Retained earnings 12/31/2018 39,000
Balance Sheet as of December 31, 2018:Assets
Cash $45,800
Accounts receivable 17,700
Equipment 35,000
Acc. depreciation 8,000 27,000
Total assets $90,500
Liabilities + Equity:
Salaries payable 1,000
Common stock 50,500
Retained earnings 39,000
Total liabilities + equity $90,500
Post Closing Trial BalanceAccount Title Debits Credits
Cash $45,800
Accounts receivable 17,700
Equipment 35,000
Acc. depreciation $8,000
Salaries payable 1,000
Common stock 50,500
Retained earnings 39,000
Totals $98,500 $98,500
Explanation:
a) Data and Calculations:
Trial Balance as of January 1, 2018:
Account Title Debits Credits
Cash 30,000
Accounts receivable 15,000
Equipment 20,000
Accumulated depreciation $6,000
Salaries payable 9,000
Common stock 40,500
Retained earnings 9,500
Total 65,000 65,000
Q#1. How would you describe the word “CAREER” Explain in 5-7 sentences.
PLZ HELP IĹL GIVE BRAINLIEST !
Answer:
A carreer si a job youĺl havefor the res of you time on earth, tbh it seems boring dont do it .
Explanation:
A corporation sold 14,000 shares of its $10 par value common stock at a cash price of $13 per share. The entry to record this transaction would include: A credit to Paid-in Capital in Excess of Par Value, Common Stock for $42,000. A debit to Cash for $140,000. A credit to Common Stock for $182,000. A credit to Cash for $182,000.
Answer:
B) A credit to common stock for $ 140,000
Explanation:
Journal Entry will include:
Date Journal Entry Debit Credit
Cash/Bank A/C $182,000
(14,000 shares*$13)
To Common capital A/C $140,000
To Contributed capital in excess $42,000
of par value A/C
M. K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a national exchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted that the company’s earnings would grow by 20% this year. Unfortunately, sales have been less than expected for the year, and Gallant concluded within two weeks of the end of the fiscal year that it would be impossible to report an increase in earnings as large as predicted unless some drastic action was taken. Accordingly, Gallant has ordered that wherever possible, expenditures should be postponed to the new year—including canceling or postponing orders with suppliers, delaying planned maintenance and training, and cutting back on end-of-year advertising and travel. Additionally, Gallant ordered the company’s controller to carefully scrutinize all costs that are currently classified as period costs and reclassify as many as possible as product costs. The company is expected to have substantial inventories at the end of the year.
1. Why would reclassifying period costs as product costs increase this period’s reported earnings?
2. Do you believe Gallant’s actions are ethical? Why or why not?
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:
Fixed Component Variable Component Actual Total
per Month per Job for February
Revenue $276 $35,890
Technician wages $8,600 $8,450
Mobile lab operating expenses $4,600 $34 $9,200
Office expenses $2,800 $3 $3,070
Advertising expenses $1,580 $1,650
Insurance $2,890 $2,890
Miscellaneous expenses $930 $1 $375
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $34 per job, and the actual mobile lab operating expenses for February were $9,200. The company expected to work 140 jobs in February, but actually worked 150 jobs.
Required:
Complete the flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February.
Answer:
AirQual Test Corporation
Flexible Budget:
Fixed Variable Actual Flexible Variance
Revenue $276 $35,890 $41,400 ($5,510) U
Technician wages $8,600 $8,450 8,600 150 F
Mobile lab operating exp. $4,600 $34 $9,200 9,700 500 F
Office expenses $2,800 $3 $3,070 3,250 180 F
Advertising expenses $1,580 $1,650 1,580 (70) U
Insurance $2,890 $2,890 2,890 0 N/A
Miscellaneous expenses $930 $1 $375 1,080 705 F
Total $10,255 $14,300 $4,045 U
Explanation:
a) Data and Calculations:
Fixed Variable Actual
Revenue $276 $35,890
Technician wages $8,600 $8,450
Mobile lab operating exp. $4,600 $34 $9,200
Office expenses $2,800 $3 $3,070
Advertising expenses $1,580 $1,650
Insurance $2,890 $2,890
Miscellaneous expenses $930 $1 $375
Expected number of jobs to be worked = 140
Actual number of jobs worked = 150
Flexible costs:
Revenue = $276 * 150 = $41,400
Mobile lab operating expense:
Fixed element = $4,600
Variable element = $34 * 150 = $5,100
Total flexible budget = $9,700
Office Expenses:
Fixed element = $2,800
Variable element = $3 * 150 = $450
Total flexible budget = $3,250
Miscellaneous expenses:
Fixed element = $930
Variable element = $1 * 150 = $150
Total flexible budget = $1,080
Spending Variances:
Technician wages $8,600 $8,450 8,600 150 F
Advertising expenses $1,580 $1,650 1,580 (70) U
Insurance $2,890 $2,890 2,890 0 N/A
Spending variances = $80 F
Activity Variances:
Mobile lab operating exp. $4,600 $34 $9,200 9,700 500 F
Office expenses $2,800 $3 $3,070 3,250 180 F
Miscellaneous expenses $930 $1 $375 1,080 705 F
Total activity variances = $1,385 F
A company issues 8%, 5 year bonds with a par value of $500,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%. What is the bond's issue (selling) price, assuming the Present Value of $1 factor for 3% and 10 semi-annual periods is .7441 and the Present Value of an Annuity factor for the same rate and period is 8.5302
Answer:
$542,654
Explanation:
Interest payment (Semi-annual) = 500,000 * 8% * 6/12 = $20,000
PV of principal to be received at the maturity = Par value of bonds * PV factor (r%, n) = 500,000 * PV factor (3%, 10) = 500,000 * 0.7441 = $372,050
PV of interest to be received periodically over the term of the bonds = Interest * PV annuity factor (r%, n) = 20,000 * PV annuity factor (3%, 10) = 20,000 * 8.5302 = $170,604
Issue price of bond = Present value of principal to be received at the maturity + Present value of interest to be received periodically over the term of the bond = $372,050 + $170,604 = $542,654
In the discussion forum, you are expected to participate often and engage in deep levels of discourse. Please post your initial response by Sunday evening and continue to participate throughout the unit. You are required to post an initial response to the question/issue presented in the Forum and then respond to at least 3 of your classmates’ initial posts. You should also respond to anyone who has responded to you.
The full "accounting cycle" which culminates in closing the books and producing financial statements. Discuss the differences between Permanent "real" accounts and Temporary ¨nominal¨ accounts:
1. What type of information is contained in nominal accounts, and what type of information is contained in real accounts?
2. Which financial statement contains the information from nominal accounts and which contains the information from real accounts?
3. Provide an example of real accounts and an example of nominal accounts.
Answer:
The Accounting Cycle: Permanent and Temporary Accounts
1. The information that is contained in the nominal accounts is revenues and expenses, incomes, and losses. The information that is contained in the real accounts is assets, liabilities, and equity.
2. Income Statement and Statement of Retained Earnings contain the information from nominal accounts. Balance Sheet contains information from real accounts.
3. An example of a real account is Accounts Receivable. An example of a nominal account is Service Revenue.
Explanation:
The differences between real or permanent accounts and nominal or temporary accounts are that permanent accounts include assets, liabilities, and equity accounts while temporary accounts include revenues and expenses. Permanent accounts are not closed to a financial period but rolled over from one accounting period to the next. Temporary accounts, on the other hand, are closed in the financial period. They do not roll over to the next period because their net effects are closed to a permanent account (equity).
On 1/1/22 Big Co acquired 60% of Little Co voting stock for $300,000. The fair value of the NC Interest was $200,000 on that date. Little's book value was $500,000, and all assets and liabilities had fair values equal to book value.
During 2022, Little reported earnings of $70,000 and paid dividends of $20,000.
1. What was Big's "investment income" ("Income from Little") for 2022? (xx,xxx)
2. What was the "income to the NC Interest" ("NCI in Net Income") for 2022? (xx,xxx)
3. After recording the equity method entries for the year, what was the end of year balance in the "Investment in Little" reported on Big's ledger? (xxx,xxx)
4. What was value of the NC Interest ("NCI in NA of Little") reported on the 12/31/22 Consolidated Balance Sheet? (xx,xxx)
Answer:
1. Particulars Amount
Reported net income of Little $70,000
Multiply: Ownership share of Big Co 60%
Investment income (from Little) $42,000
2. Particulars Amount
Reported net income of Little $70,000
Multiply: non-controlling share (100%-60%) 40%
Income to the NC Interest $28,000
3. Particulars Amount
Investment in Little at beginning $300,000
Investment income (from Little) $42,000
Less: Dividends received (20000*60%) $(12,000)
Investment in Little at end of year balance $330,000
4. Particulars Amount
NC Interest at beginning $200,000
Income to the NC Interest $28,000
Less: Dividends paid to NC Interest (20000*40%) $(8,000)
NC Interest reported on the 12/31/22 $220,000
Consolidated Balance Sheet
Wildhorse Locomotive Corporation purchased for $604,000 a 40% interest in Lopez Railways, Inc. This investment enables Wildhorse Locomotive to exert significant influence over Lopez Railways. During the year, Lopez Railways earned net income of $159,000 and paid dividends of $27,000. Prepare ZaneLocomotive’s journal entries related to this investment.
Answer:
Dr Equity Investments $604,000
Cr Cash $604,000
Dr Equity Investments $63,600
Cr Investment Income $63,600
Dr Cash $10,800
Cr Equity Investments $10,800
Explanation:
Preparation of ZaneLocomotive’s journal entries related to this investment.
Dr Equity Investments $604,000
Cr Cash $604,000
(Being to record Investment)
Dr Equity Investments $63,600
Cr Investment Income $63,600
(40% × $159,000)
(Being to record share in net income)
Dr Cash $10,800
Cr Equity Investments $10,800
(40% × $27,000)
(Being to record shares in dividend)
5. Calculating tax incidence Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 30 billion cases of beer were sold every year at a price of $5 per case. After the tax, 25 billion cases of beer are sold every year; consumers pay $7 per case (including the tax), and producers receive $4 per case.
Answer:
The amount of the tax on a case of beer is $3 per case.
Of this amount, the burden that falls on consumers is $2 per case,
and the burden that falls on producers is $ per case.
Explanation:
First, we need to calculate the total amount of tax on one case
Amount of tax = Price by the consumer including tax - Producer receives
Where
Price by the consumer including tax = $7
Producer receives = $4
Placing values in the formula
Amount of tax = $7 - $4
Amount of tax = $3
Burden on consumer = Price paid by consumer before tax - Price paid by consumer after tax = $7 - $5 = $2
Burden on Producer = Total tax - Burden on consumer = $3 - $2 = $1
Carlsbad Corporation's sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $3 million at the end of 2019. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 4%. Assume that the company pays no dividends. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. $
Answer:
Answer is explained and solved in the explanation section below.
Explanation:
Data Given:
First we need to clearly extract the data from the question.
Sales of the year = 5000000
Increase in Sales (%) = 20%
Profit Margin = 4%
Retention Ratio = 100%
Dividend Payout = 0
1. Increase in Assets necessary to support increase in Sales = Increase in Sales x total Assets = 20% x 3000000 = 600000
2. Increase in Liabilities necessary to support increase in Sales = Increase in Sales x Total Liabilities Accounts payable + Accrued Liabilities + other payables = 20% x 500000 = 100000
3. Net Income = 5000000 x (1 + 0.20) x 4% = 240,000
So Addition of Retained Earnings = 100% = 240,000
4. AFN = Increase in Assets - Increase in Liabilities - Increase in Retained Earnings = 600000 - 100000 - 240000 = 260000
Under this scenario, the company would have higher level of retained earnings which would reduce the amount of additional funds needed.
The first step in the decision-making process is to a. define your wants and needs b. identify your choices c. make a decision d. gather information Please select the best answer from the choices provided СА OB C Save and Exit Mark this and return
the first step is identify your choices