Answer:
d. an objective, quantitative metric such as pounds, square feet, or gallons.
Explanation:
In Accounting, Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production. The various type of costs are;
1. Product cost is the expenses incurred when a product is sold.
2. Period cost refers to the period in which costs are incurred.
3. Fixed cost refers to costs that remains constant over variations in production activity, irrespective of amount of goods.
3. Variable cost refers to cost which are the same per unit of production but vary directly with level of output.
4. Direct costs refer to the costs that are peculiar to a particular department or area while indirect cost can't be traced to any.
5. Manufacturing overhead are all indirect cost required in producing a good that isn't associated with direct materials or direct labor.
Generally, the physical units method of joint cost allocation allocates costs based on an objective, quantitative metric such as pounds, square feet, or gallons.
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Which formula can you use to extract the month number from the date entered in cell F5 as July 8, 2016?
Answer: =MONTH(F5)
Explanation:
The MONTH function in Excel returns the month, a number from 1 (January) to 12 (December).
It’s syntax is;
“=MONTH(serial_number)”
Where serial number refers to the date in question, which could either be a date itself or a cell reference.
The MONTH function is used to extract the month number from a date.
If cell F5 contains “July 8, 2016”, the formula “=MONTH(F5)” inputed in another cell will give the value “7”.
This is because the month July is the 7th month of the year.
Ron Santana is interested in buying the stock of First National Bank. While the bank's management expects no growth in the near future, Ron is attracted by the dividend income. Last year the bank paid a dividend of $5.65. If Ron requires a return of 14 percent on such stocks, what is the maximum price he should be willing to pay for a share of the bank's stock?
Answer:
the maximum price that willing to pay is $40.36
Explanation:
The computation of the maximum price that willing to pay is shown below:
= Annual dividend ÷ required rate of return
= $5.65 ÷ 14%
= $40.36
Hence, the maximum price that willing to pay is $40.36
we simply applied the above formula so that the correct price could come
Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $7,500. The booth will be open 30 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $150 per package. She will continue to sell the existing product, EZRecords, which costs $100 per package. Ms. Ortega believes that the salesperson will spend approximately 20 hours selling EZRecords and 10 hours marketing ProOffice.
1) Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 80 units of EZRecords and 50 units of ProOffice. (Round "Cost per unit" to 2 decimal places.)
2) Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 200 units of EZRecords and 100 units of ProOffice.
(c) Explain why the cost per unit figures calculated in Requirement a are different from the amounts calculated in Requirement b. Also explain how the differences in estimated cost per unit will affect pricing decisions.
Answer:
Hannah Ortega
Product lines ProOffice EZRecords
1a. Total costs $10,000 $13,000
b. Cost per unit $200.00 $162.50
2a. Total costs $17,500 $25,000
b. Cost per unit $175.00 $125.00
c) The total costs under the two requirements were different because of the larger units sold in requirement two. These larger units shared the total costs, reducing the cost per unit drastically.
Explanation:
a) Data and Calculations:
Fixed costs for trade show = $7,500
Fixed cost per hour = $250 ($7,500/30)
Product lines ProOffice EZRecords
Cost per package $150 $100
Units sold 50 80
Hours spent 10 hrs 20 hrs
Fixed costs $2,500 $5,000
Variable costs 7,500 8,000
Total costs $10,000 $13,000
Cost per unit $200.00 $162.50
Total cost
Product lines ProOffice EZRecords
Units sold 100 200
Variable costs $15,000 $20,000
Fixed costs 2,500 5,000
Total costs $17,500 $25,000
Cost per unit $175.00 $125.00
c) The total costs under the two requirements were different because of the larger units sold in requirement two. These larger units shared the total costs, reducing the cost per unit drastically.
Catano Corporation pays for 40% of its raw materials purchases in the month of purchase and 60% in the following month. If the budgeted cost of raw materials purchases in July is $256,550 and in August is $278,050, then in August the total budgeted cash disbursements for raw materials purchases is closest to:
Answer:
Total cash disbursement= $271,150
Explanation:
Giving the following information:
Direct material purchase:
July= $256,550
August= $278,050
Catano Corporation pays for 40% of its raw materials purchases in the month of purchase and 60% in the following month.
To calculate the cash disbursements for August, we need to use the following structure:
Cash disbursement August:
Purchase in cash from August= 278,050*0.4= 111,220
Purchase in account from July= 256,550*0.6= 159,930
Total cash disbursement= $271,150
Eagle Company used the following data to evaluate its current operating system. - sells items for $24 each - used a budgeted selling price of $24 per unit. Actual Budgeted Units sold 177,000 units 184,000 units Variable costs $1,090,000 $1,290,000 Fixed costs $804,000 $780,000 What is the static-budget variance of operating income
Answer:
$100,000 unfavorable
Explanation:
Given the above information,
Sales = Selling price per unit × unit sold
Actual sales = $24 × 177,000 units = $4,248,000
Budgeted sales = $24 × 184,000 units = $4,416,000
Operating income = Actual sales - Variable income - Fixed income
Actual operating income = $4,248,000 - $1,090,000 - $804,000 = $2,354,000
Budgeted operating income = $4,416,000 - $1,290,000 - $780,000 = $2,364,000
Therefore,
Static budget variance of operating income = Actual operating income - Budgeted operating income
= $2,354,000 - $2,364,000
= $100,000 unfavorable
Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,500 and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,500. During May, a summary of source documents reveals the following.
Job Number Materials Requisition Slips Labor Time Tickets
429 $2,500 $1,900
430 3,500 3,000
431 4,400 $10,400 7,600 $12,500
General use 800 1,200
$11,200 $13,700
Stine Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during the month.
1. Prepare summary journal entries to record (1) the requisition slips, (2) the time tickets, (3) the assignment of manufacturing overhead to jobs, and (4) the completion of Job No. 429.
2. Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets.
Answer:
Stine Company
1. Summary Journal Entries:
Debit Work in Process $10,400
Credit Materials $10,400
To record materials requisitioned for production.
Debit Work in Process $12,500
Credit Direct Labor $12,500
To record direct labor time tickets.
Debit Work in Process $7,500
Credit Manufacturing overhead $7,500
To record manufacturing overhead applied to production.
Debit Finished goods inventory $7,540
Credit Work in Process $7,540
To record the transfer of Job No. 429 to finished goods inventory.
2. Work in Process Inventory Control
Account Titles Debit Credit
Beginning balance $3,500
Direct materials 10,400
Direct labor 12,500
Overhead 7,500
Finished Goods Inventory $7,540
Ending Balance 26,360
Job Sheets Job 429 Job 430 Job 431 Total
Beginning WIP $2,000 $1,500 $3,500
Direct materials 2,500 3,500 $4,400 10,400
Direct labor 1,900 3,000 7,600 12,500
Manufacturing overhead (60%) 1,140 1,800 4,560 7,500
Finished Goods Inventory $7,540 (7,540)
Work in Process $9,800 $16,560 $26,360
Explanation:
a) Data and Computations:
Balance in Work in Process Inventory = $3,500
Job No. 429 $2,000
Job No. 430 $1,500
Job Materials Labor Time
Number Requisition Slips Tickets
429 $2,500 $1,900
430 3,500 3,000
431 4,400 $10,400 7,600 $12,500
General use 800 1,200
Total $11,200 $13,700
Total manufacturing overhead:
Indirect materials $800
Indirect labor $1,200
Total $2,000
After the U.S. film Django Unchained was recut and released in China, it performed poorly, partly because Chinese filmgoers had already seen the unedited film on DVD. What disadvantage of competing globally does this situation reflect?
The situation of Django Unchained's release in China after a month tuning out to be a poor-performing one, mainly because of the fact disadvantage of global access when competing globally.
What is the significance of global competition?Global competition can be referred to or considered as a situation wherein a firm or an organization has a direct competition with the other players in the industry on a global scale. Liberalization leads to be an advantage for global competition, but not in all cases.
One of the main disadvantages that liberalization that global competition brings is the one of eased global access. This also led to failure of the film Django Unchained in China, which released a month in the country a month after its global release.
Therefore, the significance of global competition has been aforementioned.
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Management is considering a bonus system to increase production. One suggestion is to pay a bonus on the highest 5% of production based on past experience. Past records indicate that an average of 4,000 units of a small assembly is produced during a week. The distribution of the weekly production is approximately normally distributed with a standard deviation of 60 units. If the bonus is paid on the upper 5% of production, the bonus will be paid on how many units or more
Answer:
4099
Explanation:
we have mean = 4000
σ = 60 units
lets make X = weekly production
z = X-μ/σ
z = X-4000/60
At 0.05 level of signficance, z critical value = 1.645
we put this value into the equation
[tex]z = \frac{x-4000}{60} \\1.645 = \frac{x-4000}{60}[/tex]
we cross multiply from here
60 * 1.645 = x - 4000
98.7 = x-4000
x = 4000 + 98.7
x = 4098.7
≈ 4099
the bonus would be paid on 4099 units
Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process inventories in any department. Lamont incurred the following costs for May:
Molding Department Grinding Department Finishing Department
Direct materials $12,000 $5,300 $8,000
Direct labor 10,000 8,500 12,000
Applied overhead 17,000 15,000 11,000
Required:
a. Calculate the costs transferred out of each department.
b. Prepare the journal entries corresponding to these transfers.
Answer:
A. Molding Department $39,000
Grinding Department $69,800
Finishing Department $100,800
B. Dr Work in Process-Grinding $ $39,000
Cr Work in Process-Molding $39,000
Dr Work in Process-Finishing $69,800
Cr Work in Process-Grinding $69,800
Dr Finished Goods $100,800
Cr Work in Process-Finishing $100,800
Dr Work in Process-Grinding $30,800
Cr Materials $5,300
Cr Payroll 8,500
Cr Overhead Control $15,000
Explanation:
A. Calculation to determine the costs transferred out of each department.
Molding Department Grinding Department Finishing Department
Direct materials $12,000 $5,300 $8,000
Add Direct labor 10,000 8,500 12,000
Add Applied overhead 17,000 15,000 11,000
Total Cost Added $39,000 $30,800 $31,000
Costs transferred in $0 $39,000 $69,800
($39,000+$30,800=$69,800)
Costs transferred out
$39,000 $69,800 $100,800
($30,800+$39,000=$69,800)
($31,000+$69,800=$100,800)
B. Preparation of the journal entries corresponding to these transfers.
Dr Work in Process-Grinding $ $39,000
Cr Work in Process-Molding $39,000
Dr Work in Process-Finishing $69,800
Cr Work in Process-Grinding $69,800
Dr Finished Goods $100,800
Cr Work in Process-Finishing $100,800
Dr Work in Process-Grinding $30,800
Cr Materials $5,300
Cr Payroll 8,500
Cr Overhead Control $15,000
Following information relates to Acco Co.
a. Beginning cash balance on July 1: $50,000.
b. Cash receipts from sales: 30% is collected in the month of sale, 50% in the next month, and 20% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,720,000; June (actual), $1,200,000; and July (budgeted), $1,400,000.
c. Payments on merchandise purchases: 60% in the month of purchase and 40% in the month following purchase. Purchases amounts are: June (actual), $700,000; and July (budgeted), $750,000.
d. Budgeted cash disbursements for salaries in July: $275,000.
e. Budgeted depreciation expense for July: $36,000.
f. Other cash expenses budgeted for July: $200,000.
g. Accrued income taxes due in July: $80,000.
h. Bank loan interest paid July 31: $6,600.
Additional Information:
a. Cost of goods sold is 55% of sales.
b. Inventory at the end of June is $80,000 and at the end of July is $60,000.
c. Salaries payable on June 30 are $50,000 and are expected to be $60,000 on July 31.
d. The equipment account balance is $1,600,000 on July 31. On June 30, the accumulated depreciation on equipment is $280,000.
e. The $6,600 cash payment of interest represents the 1% monthly expense on a bank loan of $660,000.
f. Income taxes payable on July 31 are $30,720, and the income tax rate applicable to the company is 30%.
g. The only other balance sheet accounts are: Common Stock, with a balance of $600,000 on June 30; and Retained Earnings, with a balance of $964,000 on June 30.
Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31.
Answer:
Acco Co.
Budgeted Income Statement for the month of July 31, 2020:
Sales Revenue $1,400,000
Cost of goods sold 770,000
Gross profit $630,000
Operating expenses:
Depreciation 36,000
Salaries 285,000
Bank loan interest 6,600
Other expenses 200,000 $527,600
Income before taxes $102,400
Taxes (30%) 30,720
Net income $71,680
Retained earnings 964,000
Retained earnings, July 31 $1,035,680
Balance Sheet as of July 31
Assets
Current assets:
Cash $122,400
Accounts receivable 1,220,000
Inventory 60,000
Total current assets $1,402,400
Equipment $1,600,000
Acc. Depreciation 316,000 $1,284,000
Total assets $2,686,400
Liabilities + Equity:
Current liabilities:
Accounts payable 300,000
Income taxes payable 30,720
Salaries payable 60,000 390,720
Bank loan 660,000
Total liabilities $1,050,720
Equity:
Common stock $600,000
Retained earnings 1,035,680 1,635,680
Total liabilities and equity $2,686,400
Explanation:
a) Data and Calculations:
Cash Account
Account Titles Debit Credit
Beginning balance $50,000
Cash from customers 1,364,000
Payment to suppliers $730,000
Salaries 275,000
Other cash expenses 200,000
Income taxes 80,000
Bank loan interest 6,600
Estimated Ending Balance 122,400
Sales Budget: May June July Total
Actual Sales $1,720,000 $1,200,000 $1,400,000 $4,320,000
Cash Collections:
30% month of sale $516,000 $360,000 $420,000 1,296,000
50% next month 860,000 600,000 1,460,000
20% in second month 344,000 344,000
Total cash collections $516,000 $1,220,000 $1,364,000 $3,100,000
Accounts Receivable balance = $1,220,000 (4,320,000 - $3,100,000)
Purchases Budget: June July Total
$700,000 $750,000 $1,450,000
Cash Payment:
60% in the month $420,000 $450,000 $870,000
40% ffg month 280,000 280,000
Total payments $420,000 $730,000 $1,150,000
Accounts payable $300,000 ($1,450,000 - 1,150,000)
Other cash disbursements:
Salaries 275,000
Bank loan interest 6,600
Accrued Expenses:
Depreciation expense $36,000
Accumulated Depreciation $316,000 ($280,000 + 36,000)
Other cash expenses 200,000
Income taxes paid 80,000
Income Taxes:
Income tax payable $30,720
Common stock $600,000
Retained Earnings $964,000
Salaries Expense for July:
Salaries paid $275,000
Salaries expense payable in July 60,000
Salaries expense payable in June (50,000)
Salaries expense for July 285,000
Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States?
a. The costs Of air and water pollution
b. The quality of goods available to
c. Expenditures on federal highways
d. The value of babysitting services, when the babysitter is paid in cash and the isn't reported to the government.
Answer:
a
b
d
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
Expenditure on the highways would be recorded as part of government expenditure
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows.
Year 1
A. Sold $1,353,000 of merchandise (that had cost $979,100) on credit, terms n/30.
B. Wrote off $20,900 of uncollectible accounts receivable.
C. Received $669,200 cash in payment of accounts receivable.
D. In adjusting the accounts on December 31, the company estimated that 1.90% of accounts receivable would be uncollectible.
Year 2
E. Sold $1,544,700 of merchandise (that had cost $1,318,300) on credit, terms n/30.
F. Wrote off $27,000 of uncollectible accounts receivable.
G. Received $1,194,200 cash in payment of accounts receivable.
H. In adjusting the accounts on December 31, the company estimated that 1.90% of accounts receivable would be uncollectible.
Required:
Prepare journal entries to record Liang's 2016 and 2017 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts).
Answer:
2016
a. Dr Account receivable $1,353,000
Cr Sales revenue $1,353,000
Dr Cost of goods sold $979,100
Cr Inventory $979,100
b Dr Allowance for doubtful accounts $20,900
Cr Account receivable $20,900
c Dr Cash $669,200
Cr Account receivable $669,200
d Dr Bad debt expense $33,495
Cr Allowance for doubtful accounts $33,495
2017
e Dr Account receivable $1,544,700
Cr Sales revenue $1,544,700
Dr Cost of goods sold $1,318,300
Cr Inventory $1,318,300
f Dr Allowance for doubtful accounts $27,000
Cr Account receivable $27,000
Dr Cash $1,194,200
Cr Account receivable $1,194,200
h Dr Bad debt expense $33,147
Cr Allowance for doubtful accounts $33,147
Explanation:
Preparation of the journal entries to record Liang's 2016 and 2017 summarized transactions and its year-end adjustments to record bad debts expense
2016
a. Dr Account receivable $1,353,000
Cr Sales revenue $1,353,000
Dr Cost of goods sold $979,100
Cr Inventory $979,100
b Dr Allowance for doubtful accounts $20,900
Cr Account receivable $20,900
c Dr Cash $669,200
Cr Account receivable $669,200
d Dr Bad debt expense $33,495
Cr Allowance for doubtful accounts $33,495
($1,353,000-$669,200-$20,900=$662,900)
($662,900*1.90%+$20,900)
($12,595+$20,900=$33,495)
2017
e Dr Account receivable $1,544,700
Cr Sales revenue $1,544,700
Dr Cost of goods sold $1,318,300
Cr Inventory $1,318,300
f Dr Allowance for doubtful accounts $27,000
Cr Account receivable $27,000
Dr Cash $1,194,200
Cr Account receivable $1,194,200
h Dr Bad debt expense $33,147
Cr Allowance for doubtful accounts $33,147
($1,544,700+$662,900-$1,194,200-$27,000=$986,400)
($986,400*1.90%=$18,742)
($18,742+$27,000-$12,595=$33,147)
An increase in supply: (2)
(a) Indicates that more is supplied at higher prices.
(b) Indicates that more is supplied at lower prices.
(c) Indicates that more is supplied at all prices.
(d) The demand curve will become more inelastic.
Answer:
A). Indicates that more is supplied at higher prices.
Explanation:
As per the law of supply, an increase in supply would signify that 'the firms are willing to sell more goods at a higher price' because they can make more profit now as compared to the supply at a lower price. The supply and price of a normal good have a positive association and therefore, an increase in price stimulates the supply as well. However, there are certain other factors responsible for the increase in supply like a fall in costs of production, an increase in the number of producers in the market, etc yet among the given options, the first one asserts a true claim. Thus, option A is the correct answer.
Sunland Company issues $5,000,000, 10-year, 10% bonds at 96, with interest payable annually on January 1. The straight-line method is used to amortize bond discount. Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer and Explanation:
The journal entry to record the sale of the bond as on Jan 1, 2020 is given below:
Cash $4,800,000 ($5,000,000 × 0.96)
Discount on Bonds payable $200,000
To Bonds payable $5,000,000
(Being the sale of the bond is recorded)
Here the cash and discount on bond payable is debited as it increased the assets and decreased the liability and the bond payable is credited as it increase the liability
Determine if the statement is true or false.
A design must appeal to people outside of the target audience to be considered successful.
True
False
Answer:
It is false don't be confused I took the Exam and it resulted false.
Explanation:
At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player that normally sells for $45. A foreign wholesaler offers to buy 3,000 units at $25 each. Bargain Electronic will incur special shipping costs of $3 per unity. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronic would realize by accepting the special order.
Reject Order Accept Order Net Income Increase (Decrease)
Revenues
Costs-Manufacturing
Shipping
Net income
The special order should be :__________
Answer:
The special order should be : Accepted
Explanation:
Analysis of whether or not to accept special order
Revenues (3,000 x $25) $75,000
Less Variable expenses :
Costs - Manufacturing (3,000 x $20) ($60,000)
Shipping (3,000 x $3) ($9,000)
Net Income $6,000
Conclusion :
Since Net Income has increased by $6,000 as a result of special order, it should be accepted
capital city of Morocco
Answer:Rabat
Explanation:
Answer:
Rabat is the capital city of Morocco.
Carolyn Bates is a junior in college studying economics. She has created a new software application that applies the four principles of economic decision making to any potential decision that a user faces. She is considering leaving school after this academic year to pursue further development of her app. Carolyn should consider all of the following costs when calculating the opportunity costs of leaving college EXCEPT the:_______________
a. potential fame that could come from creating a useful app.
b. cost of supplies and the technology fees she paid during the first three years of college.
c. potential forgone profits from selling her app.
d. None of the answers
e. time she will spend studying instead of working on the app.
When the opportunity cost is determined so the supplies cost & the technology fees should not be considered.
The following information should be considered:
Opportunity cost is the cost that refers to the next & better alternative i.e. forgone.The supplies cost & the technology fees refer to the cost that does not go as she will be considered the time that spends on the application.Along with this, the potential fame she received.And, the profits she earned.Therefore we can conclude that when the opportunity cost is determined so the supplies cost & the technology fees should not be considered.
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Bramble Corporation purchased machinery on January 1, 2022, at a cost of $300,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $35,000. The company is considering different depreciation methods that could be used for financial reporting purposes.
Required:
Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate.
Answer:
Straight-line method
Year Depreciation Book value
1 $66,250 $233,750
2 $66,250 $167,500
3 $66,250 $101,250
4 $66,250 $35,000
Declining-balance method
Year Depreciation Book value
1 $150,000 $150,000
2 $75,000 $75,000
3 $37,500 $37,500
4 $2,500 $35,000
The data shown were obtained from the financial records of Italian Exports, Inc., for March: Estimated Sales $510,000 Sales 567,933 Purchases 294,820 Ending Inventory* 10% Administrative Salaries 50,360 Marketing Expense** 5% Sales Commissions 2% Rent Expense 7,400 Depreciation Expense 1,000 Utilities 2,600 Taxes*** 15% *of next month's sales **of estimated sales ***of income before taxes Sales are expected to increase each month by 10%. Prepare a budgeted income statement. Round your answers to the nearest dollar. Italian Exports, Inc. Budgeted Income Statement For the Month Ending Mar. 31, 2020 Sales $fill in the blank 2 567,933 Cost of Goods Sold Beginning Inventory $fill in the blank 4 0 Purchases fill in the blank 6 294,820 Cost of Goods Available for Sale $fill in the blank 8 294,820 Ending Inventory fill in the blank 10 29,482 Cost of Goods Sold $fill in the blank 12 265,338 Gross Profit fill in the blank 14 302,595 Operating Expenses $fill in the blank 16 fill in the blank 18 fill in the blank 20 fill in the blank 22 fill in the blank 24 fill in the blank 26 Total Operating Expenses $fill in the blank 27 $fill in the blank 29 fill in the blank 31 $fill in the blank 33
Answer:
Italian Exports, Inc.
Italian Exports, Inc.
Budgeted Income Statement
For the Month Ending Mar. 31, 2020
Sales $ 567,933
Cost of Goods Sold
Beginning Inventory $0
Purchases 294,820
Cost of Goods Available for Sale $294,820
Ending Inventory (10%) 29,482
Cost of Goods Sold $265,338
Gross Profit 302,595
Operating Expenses:
Marketing Expense (5%) 25,500
Sales Commissions (2%) 11,359
Rent Expense 7,400
Depreciation Expense 1,000
Utilities 2,600
Total Operating Expenses $47,859
Operating income $254,736
Taxes (15% of next month sales) 84,150
Net Income $170,586
Explanation:
a) Data and Calculations:
Estimated Sales $510,000
Sales 567,933
Purchases 294,820
Ending Inventory* 10%
Administrative Salaries 50,360
Marketing Expense** 5% of $510,000 = $25,500
Sales Commissions 2% of $567,933 = $11,359
Rent Expense 7,400
Depreciation Expense 1,000
Utilities 2,600
Taxes*** 15% *of next month's sales **of estimated sales ***of income before taxes
Estimated sales next month = $561,000 (1.1 * $510,000)
Taxes = $84,150 (15% of $561,000)
The following data pertain to an investment proposal (Ignore income taxes.): Cost of the investment $ 56,000 Annual cost savings $ 16,000 Estimated salvage value $ 6,000 Life of the project 5 years Discount rate 10 % Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed investment is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice $34,000 $4,656 $3,726 $8,382
Answer: $8,382
Explanation:
First find the present value of the cash benefits which are the cost savings and the salvage value:
= (Cost savings * Present value interest factor of annuity, 5 years, 10%) + Salvage value / ( 1 + rate) ^ no of periods
= (16,000 * 3.7908) + 6,000 / ( 1 + 10%)⁵
= $64,378
Net Present value = Present value of benefits - Cost of investment
= 64,378 - 56,000
= $8,378
= $8,382 from options. Difference due to rounding errors.
Exercise 9-11 Working Backwards from Labor Variances [LO9-5] The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard labor cost for a motor tune-up is given below: Standard Hours Standard Rate Standard Cost Motor tune-up 2.50 $34.00 $85.00 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 54 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labor rate variance $ 350 F Labor spending variance $ 500 U Required: 1. Determine the number of actual labor-hours spent on tune-ups during the week. 2. Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.)
Answer and Explanation:
The computation is shown below;
a. The number of actual hours spent on tune-ups is
as we know that
Total Labor Variance = Labor Rate Variance + Labor Efficiency Variance
$500U = $350F + Labor Efficiency Variance
$500 = -$350 + Labor Efficiency Variance
Labor Efficiency Variance = $850
Now
Efficiency Variance = Standard Rate × (Actual Hours - Standard Hours )
$850 = 34 × (Actual hours - 2.5 × 54)
$850 = 34Actual Hours - $4,590
$5,440 = 34 actual hours
Actual Hour = 160 Hours
b. The actual hourly rate is
Labor Rate Variance = Actual hours × (Actual rate - Standard rate)
-350 = 160 × (Actual rate - $34)
-350 = 169 Actual rate - $5,440
$5,090 = 169 Actual rate
Actual rate = $30.12
WHAT IS OPERANT CONDITIONG
Answer:
Operant conditioning is a type of associative learning process through which the strength of a behavior is modified by reinforcement or punishment. It is also a procedure that is used to bring about such learning.
Operant conditioning refers to the conditioning of behaviours and responses that are under the control of animals and human beings and are emitted voluntarily by them. The behaviour is learned, maintained or changed through its consequences called reinforcers.
Hazel Company allocates overhead based on direct labor hours. It allocates overhead costs of $16,200 to two different jobs as follows:
Job 1: (12 hours) = $8,100; Job 2: (12 hours) = $8,100
The production process for Job 2 was then automated. Now Job 2 requires only 3 hours of direct labor but 5 hours of mechanical processing. As a result, total overhead increases to $21,000. Select the incorrect statement from the following.
A. While the actual processing of Job 1 was not affected by automation, it received an increase of $9,900 in its overhead allocation.
B. The use of machine hours as the allocation base would significantly improve the overhead cost allocations.
C. The increased overhead costs associated with automation should be allocated to both jobs.
D. Automation and the costing system used by the company cause the cost of Job 1 to be significantly overstated.
Answer:
Hazel Company
The incorrect statement is:
A. While the actual processing of Job 1 was not affected by automation, it received an increase of $9,900 in its overhead allocation.
Explanation:
Option A is the correct answer because Job 1's overhead cannot increase by $9,900. Therefore, this purported increase cannot be verified as correct. Most likely the overhead allocation of Job 1 will decrease since Job 2 has another basis for allocating overhead to it, which Job 1 does not incur. Overhead allocation using ABC system is more efficient than the traditional method of using a predetermined rate because overhead is now allocated based on consumption rather than using some arbitrary basis.
A commercial cleaning company spends an average of $500 per year, per customer, in supplies, wages, and account maintenance. An average customer generates $1,000 in revenue per year. Assuming a discount rate of 12% and an annual retention rate of 80%. What would BEST estimate for the lifetime value of an average customer using the simplified customer lifetime value (CLV) equation?
Answer:
$1,250
Explanation:
The computation is shown below:
Customer life time value = Gross contribution margin × (yearly retention rate ÷ 1 + yearly discount rate - yearly retention rate)
= $500 × (0.8 ÷ 1 + 0.12 - 0.80)
= $400 ÷ 0.32
= $1,250
The gross contribution margin would be
= $1,000 - $500
= $500
hence, the estimate for the lifetime value os $1,250
The economy has grown by 4% annually over the past 30 years. During the same period, human capital has grown 1% per year and physical capital has grown 5% per year. Each 1% increase in physical capital per worker is estimated to increase labor productivity by 0.4%. Assuming a Cobb-Douglas production function, how much has annual total factor productivity growth contributed to national output growth (expressed as a percentage of national output growth)
Answer:
53.3 %
Explanation:
Given that
Each 1% increase in physical capital per worker = 0.4% increase in labor productivity
quantity of physical capital grows by 5% per year
labor force grows by 1% per year
therefore the physical capital per labor grows by ; 5% - 1% = 4%
Annual Total factor of productivity = 0.4% * 4% = 1.6%
since output grows by 4% and labor force grows by 1% average labor productivity will grow by ; 3%
Hence annual total factor productivity growth expresses as a percentage of national output growth
= 1.6 / 3 = 53.3%
5. Introduction to real options Consider the following statement about real options: Sometimes real options can give managers the flexibility to decide to invest in a project or wait to make a more calculated decision. True or False: The preceding statement is correct. True False Which type of real option allows the output and/or inputs in the production process to be altered, depending on how market conditions change during a project’s life? Abandonment option Timing option Flexibility option Expansion option Consider the following example: Smoltz Motors has plants around the country that specialize in specific models of cars. Smoltz has determined that lower demand has led the firm’s inventory of SUVs to be too high. Smoltz wants to stop production for its SUVs and focus on its sedans. This example describes a real option to .
Answer and Explanation:
The given statement is true as the real options would provide the managers the flexibility for deciding to invest or wait so that it would make a more computed decision
The real option that permits the input or output in the production process that could vary so it would be investment timing option as here the timing plays a very vital role
The given situation represent a real option to expand as the firm would pursue the extra expansion contracts
the utility is generally related to
Explanation:
Utility is a term in economics that refers to the total satisfaction received from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility.
hi guys, can anoye one tell me the rigth answer? I cant find the answer anywhere. please tell the correct answer.
Answer:
Ben-ha-dad.
Explanation:
Answer:
The answer is Ben-ha-dad
it's like Ben? huh dad