Answer:
Depreciation per year $40,000
Explanation:
The computation of the depreciation expense each year, beginning with the third year is shown below:
Purchase cost $500,000
Less residual value -$50,000
Depreciable cost $450,000
Depreciation per year $90,000 ($450,000 ÷ 5 years)
For two years, the depreciation is $180,000
Book value at the end of the 2nd year is $320,000
($500,000 - $180,000)
Depreciation per year $40,000 ($320,000 ÷ 8 years)
g Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 20Y6 Net income $1,687,000 $2,632,000 Preferred dividends $40,000 $40,000 Average number of common shares outstanding 90,000 shares 120,000 shares a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 20Y5 20Y6 Earnings per Share $fill in the blank 1 $fill in the blank 2 b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable
Answer:
a) EPS
2005 Earnings per share=$18.3
2005 Earnings per share=$21.6
b) EPS Variance = $3.3 favorable
Explanation:
Earnings per share(EPS) is the total earnings attributable to ordinary shareholders divided by the number of units of common stock
Earnings attributable to ordinary shareholders= Net income after tax - preference dividend
Earnings per share = (Net income after tax - preference dividend)/Number of shares
2005 Earnings per share = $1,687,000- $40,000/90,000 shares=$18.3
2006 Earnings per share=($2,632,000- $40,000)/120,000 shares=$21.6
2005 Earnings per share=$18.3
2006 Earnings per share=$21.6
EPS Variance
Comparing the EPS the Earning per share in 2006 is higher than that of 2005. Hence, the variance = 21.6-18.3= $3.3 favorable
EPS Variance = $3.3 favorable
Simplifying the ABC System: TDABC Golding Bank provided the following data about its resources and activities for its checking account process:
Resources Activities Time per Unit Activity Driver
Supervision $60,000 Processing accounts 0.20 hr. No. of accounts
Phone and supplies 76,000 Issuing statements 0.10 hr. No. of statements
Salaries 242,000 Processing transactions 0.05 hr. No. of transactions
Computer 22,000 Answering customer inquiries 0.15 hr. No. of inquiries
Total 400,000
Total check processing hours 20,000
(practical capacity)
Required:
1. Calculate the capacity cost rate for the checking account process. Round your answers to the nearest cent.
$ per hour
2. Calculate the activity rates for the four activities. Round your answers to the nearest cent..
Processing accounts $ per account
Issuing statements $ per statement
Processing transactions $ per transaction
Answering inquiries $ per inquiry
If the total number of statements issued was 20,000, calculate the cost of the issuing statements activity.
Answer:
1.$20 per hour
2. Processing accounts $4 per account
Issuing statements $2 per statement
Processing transactions $1 per transaction
Answering inquiries $3 per inquiry
$40,000
Explanation:
1. Calculation to determine the capacity cost rate for the checking account process
Using this formula
Capacity cost rate= Total resources / Total checking processing hours
Let plug in the formula
Capacity cost rate= $400,000 / 20,000
Capacity cost rate= $20 per hour
Therefore the capacity cost rate for the checking account process is $20 per hour
2. Calculation to determine the activity rates for the four activities.
Processing accounts= 0.20 × $20
Processing accounts= $4 per account
Issuing statements= 0.10 × $20
Issuing statements= $2 per statement
Processing transactions= 0.05 × $20
Processing transactions= $1 per transaction
Answering inquiries= 0.15 × $20
Answering inquiries= $3 per inquiry
Therefore the activity rates for the four activities are:
Processing accounts $4 per account
Issuing statements $2 per statement
Processing transactions $1 per transaction
Answering inquiries $3 per inquiry
Calculation to determine the cost of the issuing statements activity If the total of issuing statement was 20,000
Using this formula
Cost of the issuing statements activity= Issuing statements*Total of issuing statement
Cost of the issuing statements activity
Let plug in the formula
Cost of the issuing statements activity= 20,000 × $2
Cost of the issuing statements activity= $40,000
Therefore the cost of the issuing statements activity is $40,000
McCoy's Fish House purchases a tract of land and an existing building for $930,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, McCoy pays closing costs, including title insurance of $2,300. The company also pays $12,600 in property taxes, which includes $8,300 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $4,300 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $46,500 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $3,600 and pays an additional $10,300 to level the land.
Required:
Determine the amount McCoy’s Fish House should record as the cost of the land.
Answer:
The amount McCoy’s Fish House should record as the cost of the land is $993,800.
Explanation:
The amount McCoy’s Fish House should record as the cost of the land can be determined as follows:
Total cost of the land = Purchase price + Title insurance + Property taxes which are back taxes + Cost of removing the building – Salvage value + Additional cost of leveling the land = $930,000 + $2,300 + $8,300 + $46,500 - $3,600 + $10,300 = $993,800
Therefore, the amount McCoy’s Fish House should record as the cost of the land is $993,800.
Wesley, who is single, listed his personal residence with a real estate agent on March 3 of the current year at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on August 16, he and the purchaser signed a contract to sell for $363,000. The sale (i.e., closing) took place on September 7. The closing statement showed the following disbursements:
Real estate agent's commission $21,780
Appraisal fee 600
Exterminator's certificate 300
Recording fees 800
Mortgage to First Bank 305,000
Cash to seller 34,520
Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2017, Wesley purchases another residence for $325,000.
a. Wesley's recognized gain on the sale is __________
b. Wesley's adjusted basis for the new residence is ___________
c. Assume instead that the selling price is $800,000.
Wesley's recognized gain is _____________, and his adjusted basis for the new residence is __________
Answer:
a. Wesley's recognized gain on the sale is $0.
b. Wesley's adjusted basis for the new residence is $325,000
c. Assume instead that the selling price is $800,000.
Wesley's recognized gain is $326,520, and his adjusted basis for the new residence is $325,000.
Explanation:
Wesley's actual gain = $363,000 - $21,780 - $600 - $300 - $800 - $200,000 = $139,520, but it can all be excluded using section 121.
If the selling price is $800,000;
Wesley's actual gain = $800,000 - $21,780 - $600 - $300 - $800 - $200,000 = $576,520, but he can exclude $250,000, so his recognized gain = $326,520
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match each phrase that follows with the term it describes. Clear All Includes gross profit on the income statement. Generally provides the most useful report for controlling costs. Treats fixed selling cost as a period cost. Required by generally accepted accounting principles. Absorption costing only Variable costing only Both absorption and variable costing
Answer and Explanation:
The matching is as follows
1. In the absorption costing, the gross profit is on the income statement
2. The variable cost provided the useful report with respect for controlling cost
3. The fixed selling cost be the period cost in both the absorption & variable costing
4. In absorption costing, it required by GAAP
In this way it should be matched
hence, the same would be relevant and considered
The auditor begins selecting controls to test by _______. by understanding the entity and the business and determining the risk of material fraud or error at the financial statement level by understanding the entity and all other industries and determining the risk of material fraud or error at the financial statement level asking management which controls they would prefer the auditor to test checking the same controls as the prior year
Answer:
by understanding the entity and the business and determining the risk of material fraud or error at the financial statement level.
Explanation:
An auditor refers to an authorized individual who review, examine and verify the authenticity and accuracy of business financial records or transactions.
Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.
The main purpose of internal controls is to guarantee that loss is eliminated by ensuring that there is an accurate and reliable accounting system.
An internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency.
Hence, internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.
In order to start the selection of controls to test, an auditor has to understand the entity and the business, as well as determine the risk of material fraud or error at the financial statement level.
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
A standard unmodified opinion is an opinion where financial statements are presented free of any misinterpretation, in all material respects, in accordance with standards known as Generally Accepted Accounting Principles (GAAP) to provide a high level of assurance.
The standard unmodified opinion comprises of report title, audit report address, introduction paragraph, managements responsibility, auditor's responsibility, opinion paragraph, audit report date and signature and address of certified public accountant firm.
Additionally, an unmodified opinion on financial statements can be defined as an opinion issued by an auditor stating that there are no material misstatements and this simply implies that the, the financial statement represents a true and fair perspective of the accounting information of a business.
Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also is the $. The subsidiary acquires inventory on credit on November 1, 2017, for 230,000 pesos that is sold on January 17, 2018, for 267,000 pesos. The subsidiary pays for the inventory on January 31, 2018. Currency exchange rates are as follows:
November 1, 2017 $0.20
December 31, 2017 0.65
January 17, 2018 0.66
January 31, 2018 0.67
1. What amount does Newberry’s consolidated balance sheet report for this inventory at December 31, 2017?
a. $120,600.
b. $115,200.
c. $117,000.
d. $118,800.
2. What amount does Newberry’s consolidated income statement report for cost of goods sold for the year ending December 31, 2018?
a. $115,200.
b. $118,800.
c. $120,600.
d. $117,000.
Answer:
1. $46,000
2.$46,000
Explanation:
According to the scenario, computation of the given data are as follows,
Inventory price = 230,000 pesos
1. Consolidated balance sheet amount = Inventory price × Rate on November 1, 2017
= 230,000 × $0.20
= $46,000
2. Consolidated statement cost of goods sold for the year ending December 31, 2018 = Inventory price × Rate on November 1, 2017
= 230,000 × $0.20
= $46,000
a vacuum manufacturer has prepared the following cost data for manufacturing one of its engine components based on the annual production of 50,000 units
Making the engine in-house would be more practical for the corporation than purchasing one from the market. To boost output while maintaining product quality.
What is the cost per unit?
The phrase “cost per unit” refers to the lowest price a corporation must sell a product for in order to break even.
Fixed factory overhead (24×150%) Fixed factory (25% Of 36)
For the purpose of making decisions, this overhead shall not be taken into account as 75% of the fixed overhead cost.
The unit can be purchased from the market for $60. Accordingly, the corporation should produce the engine rather than purchase it from the market because it is more practical for the business.
Company maintains the brand name, increase production and maintain quality of product.
Solving data attach on file.
Hence, the significance of the manufacturing is aforementioned.
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A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that cost $5.40 per unit to manufacture. The units can be a) sold as is for $3.50 each, or b) reworked for $4.60 each and then sold for the full price of $8.90 each. What is the incremental income from selling the units as scrap and reworking and selling the units
Answer:
Incremental income as scrap=$66,500
Incremental income when re-worked= $81,700
Explanation:
Unit contribution from selling as scrap is the equal to the scrap value = 3.50
Unit contribution when reworked and sold as scrap =Selling price - cost of re-work= $8.90-4.60= $4.3
Incremental income as scrap = $3.50×19,000= $66,500
Incremental income when re-worked= $4.3 × 19,000 = $81,700
Incremental income as scrap=$66,500
Incremental income when re-worked= $81,700
The Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activities:
Mixing: water, sugar, and beverage concentrate are mixed.
Filling: mixed beverage is filled into 12-oz. cans.
Packaging: properly filled cans are boxed into cardboard "fridge packs."
The activity costs associated with these activities for the period are as follows:
Mixing $286,000
Filling 253,500
Packaging 110,500
Total $650,000
The activity costs do not include materials costs, which are ignored for this analysis. Each can is expected to contain 12 ounces of beverage. Thus, after being filled, each can is automatically weighed. If a can is too light, it is rejected, or "kicked," from the filling line prior to being packaged. The primary cause of kicks is heat expansion. With heat expansion, the beverage overflows during filling, resulting in underweight cans. This process begins by mixing and filling 6,760,000 cans during the period, of which only 6,500,000 cans are actually packaged. 260,000 cans are rejected due to underweight kicks. A process improvement team has determined that cooling the cans prior to filling them will reduce the amount of overflows due to expansion. After this improvement, the number of kicks is expected to decline from 260,000 cans to 65,000 cans, thus increasing the number of filled cans to 6,695,000 [6,500,000 (260,000 - 65,000)].
Required:
a. Determine the total activity cost per packaged can under present operations.
b. Determine the amount of increased packaging activity costs from the expected improvements.
c. Determine the expected total activity cost per packaged can after improvements.
Answer:
A. $0.1 per can
B. $3,315
C. 0.098 per packaged can
Explanation:
a) Calculation to Determine the total activity cost per packaged can under present operations.
Using this formula
Total activity cost per packaged = Total activity cost under present operations ÷ total cans packaged
Let plug in the formula
Total activity cost per packaged= $650,000 ÷ 6,500,000
Total activity cost per packaged= $0.1 per can
Therefore the total activity cost per packaged can under present operations is $0.1 per can
b) Calculation to Determine the amount of increased packaging activity costs from the expected improvements.
First step is to calculate the Packaging cost per bottle =
Using this formula
Packaging cost per bottle = Current packaging cost ÷ total cans packaged
Let plug in the formula
Packaging cost per bottle = 110,500 ÷ 6,500,000
Packaging cost per bottle = $0.017 per bottle
Second step is to calculate the Total packaging cost
Using this formula
Total packaging cost = Total bottle × cost per bottle
Let plug in the formula
Total packaging cost= 6,695,000 × $0.017
Total packaging cost= $113,815
Now let determine the amount of increased packaging activity costs from the expected improvements.
Using this formula
Amount of increased packaging activity costs = total packaging cost - current packaging cost
Let plug in the formula
Amount of increased packaging activity costs= $113,815 - 110,500
Amount of increased packaging activity costs= $3,315
Therefore the amount of increased packaging activity costs from the expected improvements is $3,315
c) Calculation to Determine the expected total activity cost per packaged can after improvements
First step is to calculate Total activity cost using this formula
Total activity cost = Mixing cost + filling cost + packaging cost
Let plug in the formula
Total activity cost == $286,000 + $253,500 + $113,815
Total activity cost == $653,315
Now let determine the Expected total activity cost per packaged can
Using this formula
Expected total activity cost per packaged can = Total activity cost ÷ no. of bottles
Let plug in the formula
Expected total activity cost per packaged can= $653,315 ÷ 6,695,000
Expected total activity cost per packaged can=0.098 per packaged can
Therefore the expected total activity cost per packaged can after improvements is 0.098 per packaged can
'Teaching profession is an important profession of nation' Justify this statement.
Answer:
A teacher plays a role of a mentor as well as of a facilitator.
Explanation:
Teachers instill knowledge and skills in our youngsters of the nation. They are the nation builders. The state of teaching is stronger because teachers everywhere are leading from their classrooms and taking over new roles to enhance education for teenagers.
A teacher plays a role of a mentor as well as of a facilitator.
Terry Wade, the new controller of Hellickson Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2015. His findings are as follows.
Date Accumulated Depreciation Useful life in Years Salvage Value
Type of Asset Acquired Cost 1/1/15 Old Proposed Old Proposed
Building 1/1/09 $806,700 $115,410 40 50 $37,300 $50,210
Warehouse 1/1/10 114,000 21,940 25 20 4,300 19,610
All assets are depreciated by the straight-line method. Hellickson Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Terry’s proposed changes.
1) Compute the revised annual depreciation on each asset in 2015. ( Building and Warehouse)
2) Prepare the entry to record depreciation on the building in 2015. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer: See explanation
Explanation:
1) Compute the revised annual depreciation on each asset in 2015.
The revised annual depreciation for building will be:
= ($806700 - $115410 - $50210)/44
= $64180 / 44
= $14570
The revised annual depreciation for warehouse will be:
= ($114000 - $21940 - $19610) / 15
= $72450 / 15
= $4830
2) Prepare the entry to record depreciation on the building in 2015.
Debit Depreciation expense $14570
Credit Accumulated Depreciation- Building $14570
(To record Depreciation expense)
DeLong Corporation was organized on January 1, 2017. It is authorized to issue 13,000 shares of 8%, $100 par value preferred stock, and 526,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year.
Jan. 10 Issued 84,500 shares of common stock for cash at $6 per share.
Mar. 1 Issued 5,150 shares of preferred stock for cash at $105 per share.
Apr. 1 Issued 24,000 shares of common stock for land. The asking price of the land was $91,000. The fair value of the land was $80,500.
May 1 Issued 83,500 shares of common stock for cash at $4.75 per share.
Aug. 1 Issued 11,000 shares of common stock to attorneys in payment of their bill of $38,500 for services performed in helping the company organize.
Sept. 1 Issued 12,000 shares of common stock for cash at $7 per share.
Nov. 1 Issued 2,000 shares of preferred stock for cash at $109 per share.
Journalize the transactions. (Record journal entries in the order presented in the problem.)
Journalize Common and Preferred Stock Transactions
When most businesses are first organized or established, they include what is called Articles of Incorporation which are filed with the Secretary of State of the state in which the business is incorporated. These Articles specify the capital structure of the corporation, including preferred stock and how many shares of preferred stock may be issued and the par value of each share of preferred stock. These Articles also specify the number of common shares which the corporation may issue, and either the par value, no-par value, or the stated value per share of common stock.
Answer:
DeLong Corporation
Journal Entries:
Jan. 10: Debit Cash $507,000
Credit Common stock $253,500
Credit Additional Paid-in Capital- Common stock $253,500
To record the issue of 84,500 shares at $6 per share.
Mar. 1: Debit Cash $540,750
Credit Preferred stock $515,000
Credit Additional Paid-in Capital - Preferred stock $25,750
To record the issue of 5,150 shares at $105 per share.
Apr. 1 Debit Land $80,500
Debit Loss on Purchase of Land $10,500
Credit Common stock $72,000
Credit Additional Paid-in Capital- Common stock $19,000
To record the issue of 24,000 shares for land.
May 1: Debit Cash $396,625
Credit Common stock $250,500
Credit Additional Paid-in Capital- Common stock $146,125
To record the issue of 11,000 shares at $4.75 per share.
Aug. 1: Debit Attorney Fees $38,500
Credit Common stock $33,000
Credit Additional Paid-in Capital- Common stock $5,500
To record the issue of 11,000 shares for attorney's fees.
Sept. 1: Debit Cash $84,000
Credit Common stock $36,000
Credit Additional Paid-in Capital- Common stock $48,000
To record the issue of 12,000 shares at $7 per share.
Nov. 1: Debit Cash $218,000
Credit Preferred stock $200,000
Credit Additional Paid-in Capital-Preferred stock $18,000
To record the issue of 2,000 shares at $109 per share.
Explanation:
a) Data and Analysis:
January 1, 2017, Authorized Shares:
13,000 shares of 8%, $100 par value Preferred Stock
526,000 shares of no-par Common Stock with a stated value of $3 per share
Jan. 10: Cash $507,000 Common stock $253,500 Additional Paid-in Capital $253,500
Mar. 1: Cash $540,750 Preferred stock $515,000 Additional Paid-in Capital $25,750
Apr. 1 Land $91,000 Common stock $72,000 Additional Paid-in Capital $19,000
May 1: Cash $396,625 Common stock $250,500 Additional Paid-in Capital $146,125
Aug. 1: Attorney Fees $38,500 Common stock $33,000 Additional Paid-in Capital $5,500
Sept. 1: Cash $84,000 Common stock $36,000 Additional Paid-in Capital $48,000
Nov. 1: Cash $218,000 Preferred stock $200,000 Additional Paid-in Capital $18,000
Terra Corporation purchased equipment with a 10-year useful life and zero residual value for $100,000. At the end of the fourth year, the equipment is exchanged for new equipment worth $110,000. Terra gets a trade-in allowance of $70,000 on the exchange, with the remaining $40,000 paid in cash. Which of the following is true of the net effect of this transaction? Assume the straight-line depreciation method is used.
A. Assets decrease by $10,000
B. Assets increase by $10,000
C. Liabilities increase by $10,000
D. Total stockholders' equity decreases by $10,000
E. Total stockholders' equity increases by $10,000
Answer:
Assets increase by $10,000
Total stockholders' equity decreases by $10,000
Explanation:
Assets increase =($110,000-$100,000)
Assets increase=$10,000
Total stockholders' equity decreases=$100,000-$110,000
Total stockholders' equity decreases= -$10,000
Therefore Based on the information given what is true of the net effect of the transaction are :
Assets increase by $10,000
Total stockholders' equity decreases by $10,000
Use the following information for the Quick Study below. (The following information applies to the questions displayed below.]
The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 12,500 units during November. The following production activity unit and cost information refers to the assembly department's November production activities. Assembly Department Beginning work in process Units transferred out Ending work in process Units 3,000 10,000 5,500 Percent of Direct Materials Added 708 100% 803 Percent of Conversion 308 100% 30% $3,070 (includes $2,130 for direct materials and $940 for conversion) Beginning work in process inventory-Assembly dept Costs added during the month: Direct materials Conversion $ 20,910 $ 22,360 QS 16-13 Weighted average: Journal entry to transfer costs LO P4
Required: Prepare the November 30 journal entry to record the transfer of units (and costs) from the assembly department to the painting department. Use the weighted average method.
Answer:
The Carlberg Company
Journal Entry:
Debit Work in Process (Painting Department) $36,000
Credit Work in Process (Assembly Department) $36,000
To record the transfer of 10,000 units from the assembly department to the painting department.
Explanation:
a) Data and Calculations:
Units started during November = 12,500
Assembly Department
Units Percent of Direct Percent of
Materials Added Conversion
Beginning work in process 3,000 70% 30%
Units started during Nov. 12,500
Units transferred out 10,000 100% 100%
Ending work in process 5,500 80% 30%
Cost of beginning work in process = $2,130 $940 $3,070
Costs added during the month: $ 20,910 $ 22,360 $43,270
Total costs of production $23,040 $23,300 $46,340
Equivalent units of production:
Units transferred out 10,000 10,000 10,000
Ending work in process 5,500 4,400 1,650
Total equivalent units 14,400 11,650
Cost per equivalent unit:
Total costs of production $23,040 $23,300
Total equivalent units 14,400 11,650
Cost per equivalent unit $1.60 $2.00
Cost assigned to: Materials Conversion Total
Units transferred out $16,000 $20,000 $36,000
($1.60*10,000) ($2*10,000)
Ending Work in process 7,040 3,300 10,340
($1.60*4,400) ($2*1,650)
Total costs allocated $23,040 $23,300 $46,340
The Pines Company, which manufactures office equipment, is ready to introduce a new line of portable copiers. The following copier data are available:
Variable manufacturing cost $ 180
Variable selling and administrative cost 90
Applied fixed manufacturing cost 60
Allocated fixed selling and administrative cost 75
What price will the company charge if the firm uses cost-plus pricing based on total manufacturing cost and a markup percentage of 160%?
Answer:
$ 624
Explanation:
Given :
Variable manufacturing cost = $ 180
Applied fixed manufacturing cost = $ 60
Therefore, total manufacturing cost = 180 + 60
= $ 240
Mark up percentage = 160%
Price to be charged = 240 + 160% of 240
= 240 + 384
= $ 624
Evanson Company expects to produce 540,000 units of their product during the year. Monthly production is expected to range from 40,000 to 80,000 units. The company has budgeted manufacturing costs per unit to be as follows: Direct materials $ 14 Direct labor 15 Variable manufacturing overhead 16 Fixed manufacturing overhead 3 Prepare a flexible manufacturing budget using 20,000 unit increments.
Answer:
Evanson Company
Evanson Company
Flexible Monthly Budget
Activity Level:
Finished goods (Units) 40,000 60,000 80,000
Variable costs:
Direct materials $560,000 $840,000 $1,120,000
Direct labor 600,000 900,000 1,200,000
Manufacturing overhead 640,000 960,000 1,280,000
Total variable costs $1,800,000 $2,700,000 $3,600,000
Fixed manufacturing
overhead 135,000 135,000 135,000
Total production costs $1,935,000 $2,835,000 $3,735,000
Explanation:
a) Data and Calculations:
Expected production units per year = 540,000
Average monthly production units = 45,000 (540,000/12)
Manufacturing costs per unit:
Direct materials $ 14
Direct labor 15
Variable manufacturing overhead 16
Fixed manufacturing overhead 3
Total yearly fixed overhead = $1,620,000 (540,000 * $3)
Monthly fixed overhead = $135,000 ($1,620,000/12)
b) A flexible budget has varying activity levels from one period to the next. One interesting feature of the flexible budget is that the variable costs are fixed per unit, but their totals vary with the volume levels. On the other hand, the fixed costs remain static in totals but vary per unit.
Benny is 57 years old and is employed by the state as a school bus driver.He has an exemplary record,with no accidents in the past 27 years.Tom,aged 31,replaces Benny.Benny intends to file a discrimination claim under the Age Discrimination in Employment Act (ADEA)with the Equal Employment Opportunity Commission.If Benny lives in a state that has not waived sovereign immunity,which of the following statements is most likely to be true?
A) Benny has a valid claim and can sue the state because he can establish all of the elements of a prima facie case.
B) Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
C) Benny is a state employee and must file his claim pursuant to the Older Workers' Benefit Protection Act.
D) Benny does not have a claim for age discrimination under the ADEA as he was replaced by an employee who is older than 30.
Answer: B. Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
Explanation:
Based on the information given in the question, since Benny lives in a state that has not waived sovereign immunity, thus simply means that Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
Eben though the Age Discrimination in the Employment Act protects workers that are 40 years and above and Benny is 57 years, it should be noted that in the states whereby sovereign immunity hasn't been waived, the state employees cannot due their employers as they're barred from doing so.
Therefore, the correct option is B.
You are auditing a bank, and someone provides you with an anonymous tip that an employee is embezzling money from the bank. You decide to investigate the allegation Your interviews with other bank employees confirm that the suspected embezzler has been acting very strange lately. Some employees have seen the employee crying in the bathroom and acting strange in other ways. The bank recently downsized due to poor economic growth, yet the suspect recently bought a new Lexus. Based on some "helpful" hints from bank employees and through your own investigation, you discover that the mortgage taken out by the suspect three years ago for his personal home has recently been paid in full After calculating the suspect's net worth, you deter- mine that he has about $249,000 in income from unknown sources this year alone.
Required:
a. What are possible explanations for why the suspect (1) is experiencing emotional changes and (2) has had an increase in unknown income?
b. Can you conclude from these facts that the suspect has indeed been committing fraud?
Solution :
a). The suspect may experience some emotional changes that are not necessarily due to a scandal or scam. We need to establish that the proper figures and facts are to be analyzed before reaching the conclusion. But however, the primary conclusion is that something is going on on the suspect's mind that needs to be further dealing. (2) increment in the income needs to be validated and also proper root cause of the changes should be analyzed.
b). No from the above facts we cannot conclude that the suspect had committed financial frauds. For this a full proof validation of the facts and the evidences are required for a solid conclusion for helding the suspect for committing financial frauds. Hence further investigation is needed for deriving a conclusion.
Why do you think our economy continues to experience wage differences among groups - please
discuss with relevant examples?
Answer:
Las propuestas principales para revisar la determinación de los salarios, el valor (no) asignado al trabajo y sus efectos sobre hombres y mujeres incluyen: 1. la Economía de la familia y la división del trabajo por género; 2. las diferencias salariales por género: el capital humano y la discriminación en el mercado de trabajo; 3. el dualismo y segmentación del trabajo por género; 4. la segregación ocupacional por género; 5. la economía marxista y el género; 6. el género y la economía según las feministas; 7. la crisis económica y el género; 8. las mujeres y la recesión; 9. los estudios económicos con perspectiva de género y 10. la explotación de las fuentes estadísticas
Explanation:
Management of Mittel Company would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported: Inspection time 0.3 days Wait time (from order to start of production) 16.6 days Process time 2.8 days Move time 1.0 days Queue time 4.2 days
1. Compute the throughput time.
2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your answer to 2 decimal places.)
3. What percentage of the throughput time was spent in non–value-added activities? (Enter your answer as a percentage (i.e., 0.12 should be entered as 12).)
4. Compute the delivery cycle time.
5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your percentage answer to 1 decimal place (i.e., 0.123 should be entered as 12.3).)
Answer:
1. Throughput time = Process time + Inspection time + Move time + Queue time
Throughput time = 2.8 + 0.3 + 1 + 4.2
Throughput time = 8.3 days
2. Manufacturing cycle efficiency = Value added time/Throughput time
Manufacturing cycle efficiency = 2.8/8.3
Manufacturing cycle efficiency = 0.3373493976
Manufacturing cycle efficiency = 0.34
3. Percentage of the throughput time spent in non-value-added activities:
= 1 - 0.34
= 0.66
= 66%
4. Delivery cycle time = Wait time + Throughput time
Delivery cycle time = 16.6 + 8.3
Delivery cycle time = 24.9
Delivery cycle time = 25 days
5. New throughput time = Process time + Inspection time + Move time + Queue time
New throughput time = 2.8 + 0.3 + 1
New throughput time = 4.1
Manufacturing cycle efficiency = Value added time/Throughput time
Manufacturing cycle efficiency = 2.8/4.1
Manufacturing cycle efficiency = 0.6829268292682927
Manufacturing cycle efficiency = 68.30%
Jeff installs a new dial-up connection to access home Internet. What device should he buy to connect his system to the Internet?
A.
browser
B.
router
C.
antenna
D.
firewall
E.
modem
Answer:modem
Explanation:
Answer: E. Modem
Explanation: I took the test on plato, and also Dial-up access uses a modem to connect to the internet through a phone line. This connection does not require any additional infrastructure other than a modem.
The following is a list of various costs of producing T-shirts. Classify each cost as either a variable, fixed, or mixed cost for units produced and sold.
a. Ink used for screen printing Variable
b. Warehouse rent of $8,000 per month plus $0.50 per square foot of storage used Mixed
c. Thread Variable
d. Electricity costs of $0.038 per kilowatt-hour Variable
e. Janitorial costs of $4,000 per month Fixed
f. Advertising costs of $12,000 per month
g. Accounting salaries
h. Color dyes for producing different colors of T-shirts Variable
i. Salary of the production supervisor
j. Straight-line depreciation on sewing machines Fixed
k. Salaries of internal pattern designers
l. Hourly wages of sewing machine operators Variable
m. Property taxes on factory, building, and equipment Fixed
n. Cotton and polyester cloth
o. Maintenance costs with sewing machine company (the cost is $2,000 per year plus $0.001 for each machine hour of use.) Mixed
Solution :
a. Ink used for screen printing --- Variable
b. Warehouse rent of $8,000 per month plus $0.50 per square foot of storage used --- Mixed
c. Thread --- Variable
d. Electricity costs of $0.038 per kilowatt-hour --- Variable
e. Janitorial costs of $4,000 per month ---- Fixed
f. Advertising costs of $12,000 per month ---- FIXED
g. Accounting salaries --- FIXED
h. Color dyes for producing different colors of T-shirts ----- Variable
i. Salary of the production supervisor ---- FIXED
j. Straight-line depreciation on sewing machines ----- Fixed
k. Salaries of internal pattern designers ----- FIXED
l. Hourly wages of sewing machine operators ------ Variable
m. Property taxes on factory, building, and equipment ----- Fixed
n. Cotton and polyester cloth ---- VARIABLE
o. Maintenance costs with sewing machine company (the cost is $2,000 per year plus $0.001 for each machine hour of use.) ---- Mixed
Jane was employed by ABC Construction Company as a forklift operator. She noticed that the foreman was taking shortcuts on some of the trenching which caused a dangerous condition that could possibly cause injury to employees who were close to the area of the trench. Jane was not at risk of being hurt by the shortcut in the trenching operation. Jane refused to do the work because of her belief that the trenching work was not being done in a safe manner. Jane was told to punch out and go home. Jane would like to file a claim against her employer.
We will be conducting a classroom debate on this case. Presume you have been hired to represent either the Jane or ABC Construction in this case (students are assigned by their last name see below). Provide the class in your initial response a statement as to why your client’s position is correct. For those representing ABC Construction, explain why the company was within its rights to send Jane home without pay. For those representing the employee Jane, explain why she is justified in refusing to do work in light of a dangerous condition on the worksite.
Answer:
According to the OSHA act, Jane is right in her claim to refuse to work until safe working conditions are provided.
Explanation:
I would be representing Jane and will be following the debate in light of the Occupational Safety and Health Administration(OSHA) act. According to the OSHA act, employers are responsible for the provision of a safe and healthy workplace to their employees. Failing to do so could lead to a refusal. According to the section of the OSHA act, An employee has the right to refuse to work, if all of the below-mentioned conditions are met:
A real and imminent danger of serious injury or death exists in the workplace. Where possible the employee has asked the employer to eliminate the danger. The employer has failed to eliminate the danger. The employee refuses to work because the employee believes, in good faith, that there is an imminent danger of serious injury or death.As the foreman of ABC construction was using shortcuts in trenching and thus stigmatized the trenching. This could lead to a dangerous situation for the area of the trench leading to its collapse. This is an indication of imminent danger and thus the employee in the area of the trench has a serious threat to his/her life Thus Jane is right in her claim to refuse to work until safe working conditions are provided.
Question 2
Mt Jack is a director of a company from which he receives a salary of RM15.000 per month He
also received director's fees of RM5.000 during the year ended 31 December 2020 The
benefits provided to him included:
a Accommodation for which the company pays monthly rental of RM5 000 include
RM1,500 for the furniture
b. Employer's contribution to the Employee's Provident Fund of 13% of salary
c. A company new car costing RM150.000
d. A part-time gardener who is paid RM400 per month
A domestic servant who is paid RM500 per month
f Leave passage to Japan for Mr Jack and his family and the company paid RM5.000 for
their air fait
Mc Jack also received the following Malaysian income during the year ended 31 December
2020
a
Interest income of RM3.800 from a 15-month fixed deposit in a Maaysian bank
b Royalties of RM22 500 from the publisher of his book on taxation
c. Rental income of R12 500 per month. He also paid assessment and out rent of
RM1,350 per annum as well as cost of repairs amounting to RM4500 made up of
repainting (RM1,000) and extension of the kitchen RM3.500)
Mr Jack's wife earns a salary of RM6 200 per month. She is allowed to make use of a company
car (cost RM82 000) during office hours but is not allowed to drive it home She also has
interest income of RM850 from her savings account with Bank Simpanan Nasional She made a
cash donation of RM2 500 to an approved institution as well as donated books worth RM200
to the same institution
Required: Compute the aggregate income for by Mr Jack and his wife for the year of
assessment 2020 separate assessment)
Answer:
sorry i cant answer this :(
Sheridan Company has 7500 shares of 5%, $100 par value, cumulative preferred stock and 15000 shares of $1 par value common stock outstanding at December 31, 2020. There were no dividends declared in 2018. The board of directors declares and pays a $71250 dividend in 2019 and in 2020. What is the amount of dividends received by the common stockholders in 2020
Answer:
See below
Explanation:
Given the above information,
The previous year preference dividend payable
= Previous year preferred dividend payable + Current year preference dividend payable - Total dividend paid in 2019
= (7,500 × $100 × 0.05) + (7,500 × $100 × 0.05) - $71,250
= $37,500 + $37,500 - $71,250
= $3,750
The dividends received by stockholders in 2020 will be
= Total dividend paid in 2020 - Current year preferred dividend - Previous year preference dividend payable
= ($71,250 - $37,500 - $3,750)
= $30,000
BusyBody Company expects its November sales to be 25% higher than its October sales of $240,000. Purchases were $100,000 in October and are expected to be $100,000 in November. All sales are on credit and are collected as follows: 35% in the month of the sale and 60% in the following month. Purchases are paid 35% in the month of purchase and 65% in the following month. The cash balance on November 30 will be:_______.
A. $149,000
B. $135,500
C. $262,500
D. $162,500
Answer:
$149,000
Explanation:
Cash Budget for the month of November
Receipts :
Cash collections from customers :
From November Sales - ($240,000 x 1.25 x 0.35) $105,000
From October Sales - ($240,000 x 0.60) $144,000
Total Receipts $249,000
Payments :
Payments to Suppliers :
November Purchases ($100,000 x 0.35) $35,000
October Purchases ($100,000 x 0.65) $65,000
Total Payments $100,000
Balance (Receipts - Payments) $149,000
therefore,
The cash balance on November 30 will be $149,000.
Toyota's global success in the 1990s and early 2000s was based to a large extent on a network of world-class suppliers in Japan. This tightly knit network allowed for fast two-way knowledge sharing—this in turn improved Toyota's quality and lowered its cost, which it leveraged into a successful blue ocean strategy at the business level. This example shows the effectiveness of
Answer:
related and supporting industries/complementors.
Explanation:
In the given scenario Toyota effectively leveraged on its related and supporting industries/complementors.
By having a tightly knit network of suppliers in Japan, Toyota developed a fast two-way knowledge sharing—this in turn improved their quality and lowered cost, which it leveraged into a successful blue ocean strategy.
The suppliers complimented their production efforts in such a way that quality improved and cost was lowered
Recently, some college alumni started a moving service for students living on campus. They have 3 employees and are debating hiring one more. The hourly wage for an employee is $30 per hour. An average moving job takes 4 hours. The company currently does 3 moving jobs per week, but with one more employee, the company could manage 5 jobs per week. The company charges $100 for a moving job.
Instructions:
Round your answers to the nearest whole number.
a. The new employee's marginal product of labor is ______.
b. The value of that merginal product is ______.
c. The moving service should moving jobs ______- hire another worker.
Answer: a. 2
b. $200
c. Should not
Explanation:
a. The new employee's marginal product of labor is ______.
This will be:
= 5 - 3
= 2 moving jobs
b. The value of that marginal product is ______..
Since the company charges $100 for a moving job, the value of the marginal product will be:
= 2 × $100
= $200
c. The moving service should moving jobs ______- hire another worker
Marginal cost of moving 2 jobs will be:
= $30 × 4 × 2
= $240
Since the marginal cost is more than the marginal product, the company should not hire another worker.
The trial balance of G. Durler Company at the end of its fiscal year, August 31, 2008, includes these account: Merchandise Inventory $17,200; Purchases $149,000; Sales $190,000; Freight-in $4,000; Sales Returns and Allowances $3,000; Freight-out $1,000; and Purchases Returns and Allowances $2,000. The ending merchandise inventory is $25,000.
Prepare a cost of goods sold section for the year ending August 31 (periodic inventory).
Answer and Explanation:
The preparation of the cost of goods sold section for the year ended is as follows;
Cost of goods sold section
G. Durler Company
For the year ending August 31
Beginning inventory $17,200
Add: Purchases $149,000
less purchase returns and Allowances $2,000
Net purchases $147,000
Add: Freight-in $4,000
less ending inventory is -$25,000
Cost of goods sold $143,200
The cost of goods sold section for the year ending August 31 (periodic inventory) is $143,200.
G. Durler Company Cost of goods sold section for the year ending August 31
Beginning inventory $17,200
Add Purchases $149,000
Less purchase returns and Allowances ($2,000)
Net purchases $147,000
($149,000-$2,000)
Add Freight-in $4,000
Less Ending inventory ($25,000)
Cost of goods sold $143,200
($17,200+$147,000+$4,000-$25,000)
Inconclusion the cost of goods sold section for the year ending August 31 (periodic inventory) is $143,200.
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