Answer:
Way Cool
1. Using ABC, the overhead cost per unit for each product line:
Model 145 Model 212
Overhead cost per unit $534.39 $266.12
2. The total cost per unit for each product line, if the direct labor and direct materials costs per unit are $250 for Model 145 and $170 for Model 212:
Model 145 Model 212
Total cost per unit $784.39 $436.12
3. If the market price for Model 145 is $1,700 and the market price for Model 212 is $300, the profit or loss per unit for each model:
Model 145 Model 212
Profit (loss) per unit $915.61 ($136.12)
Explanation:
a) Data and Calculations:
Process Activity Overhead Cost Driver Quantity
Components Changeover $ 470,000 Number of batches 890
Machining 304,000 Machine hours 8,130
Setups 225,000 Number of setups 120
Total $ 999,000
Finishing
Welding $ 192,000 Welding hours 5,200
Inspecting 235,000 Number of inspections 850
Rework 61,000 Rework orders 220
Total $ 488,000
Support
Purchasing $ 145,000 Purchase orders 543
Providing space 33,000 Number of units 4,620
Providing utilities 65,000 Number of units 4,620
Total $ 243,000
Additional production information concerning its two product lines follows:
Model 145 Model 212 Total
Units produced 1,500 3,120 4,620
Welding hours 2,000 3,200 5,200
Batches 445 445 890
Number of inspections 480 370 850
Machine hours 1,800 4,200 6,000
Setups 60 60 120
Rework orders 160 60 220
Purchase orders 362 181 543
Overhead Rates per Activity Pool:
Components Changeover $ 470,000/890 = $528
Machining 304,000/ 8,130 = $37.39
Setups 225,000/120 = $1,875
Total $ 999,000
Finishing
Welding $ 192,000/5,200 = $36.92
Inspecting 235,000/850 = $276.47
Rework 61,000/220 = $277.27
Total $ 488,000
Support
Purchasing $ 145,000/543 = $267
Providing space 33,000/4,620 = $7.14
Providing utilities 65,000/4,620 = $14.07
Total $ 243,000
Total overheads = $1,730,000
Model 145 Model 212
Units produced 1,500 3,120
Welding hours $73,840 (2,000*$36.92) $118,144 (3,200*$36.92)
Batches 234,960 (445*$528) 234,960 (445*$528)
Number of inspections 132,706 (480*$276.47) 102,294 (370*$276.47)
Machine hours 106,562 (2,850*$37.39) 197,419 (5,280*$37.39)
Setups 112,500 (60*$1,875) 112,500 (60*$1,875)
Rework orders 44,363 (160*$277.27) 16,636 (60*$277.27)
Purchase orders 96,654 (362*$267) 48,327 (181*$267)
Total overhead costs $801,585 $830,280
Units produced 1,500 3,120
Overhead cost per unit $534.39 $266.12
Total production costs:
Model 145 Model 212
Direct costs per unit $250 $170
Total direct costs $375,000 $530,400
Total overhead costs $801,585 $830,280
Total production costs $1,176,585 $1,360,680
Units produced 1,500 3,120
Total cost per unit $784.39 $436.12
Model 145 Model 212
Market price per unit $1,700.00 $300.00
Total cost per unit 784.39 436.12
Profit (loss) per unit $915.61 ($136.12)
In supply and demand theory, an increase in consumer income for a normal good will: A. Shift the demand curve in and to the left, lowering the equilibrium price but raising the equilibrium quantity. B. Shift the demand curve out and to the right, raising the equilibrium price and quantity. C. Shift the supply curve out and to the right, lowering the equilibrium price but raising the equilibrium quantity. D. Shift the supply curve in and to the left, lowering the equilibrium price and quantity. E. Shift the demand curve out and to the right, lowering the equilibrium price but raising the equilibrium quantity.
Answer:
b
Explanation:
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls
If income increases, demand increases. the demand curve shifts to the right. This leads to an increase in equilibrium price and quantity
A company just starting business made the following four inventory purchases in June: Date Number of units purchased Total cost June 1 160 units $ 350 June 10 220 units 580 June 15 220 units 700 June 28 130 units 560 $2190 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is
Answer:
cap
Explanation:
why do we have a graduated income tax?
Consider a mutual fund with $219 million in assets at the start of the year and with 12 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $6 million. The stocks included in the fund's portfolio increase in price by 7%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 0.50%, which are deducted from portfolio assets at year-end. a. What is the net asset value at the start and end of the year
Answer:
Missing word "What is the Rate of return"
a. Asset at the end of the year = (Asset at the start of the year + Increase in value) * 12b-1 charges
Asset at the end of the year = ($219 million+ ($219 million * 7%)) * (1-0.50%)
Asset at the end of the year = ($219 million + $15.33 million) * 0.9950
Asset at the end of the year = $234.33 million * 0.9950
Asset at the end of the year = $233.16 million
Net asset value at the end of the year = Asset at the end of the year / Number of shares
Net asset value at the end of the year = $233.15835 million / 12 million
Net asset value at the end of the year = $19.430
b. Rate of return = (Net asset value at the end of the year + dividend per share - Net asset value at the start of the year) / Net asset value at the start of the year
Rate of return = ($19.430 + ($6 / 12) - $18.250) / $18.250
Rate of return = ($19.430 + $0.50 - $18.250) / $18.250
Rate of return = $1.68 / $18.250
Rate of return = 9.20%
[The following information applies to the questions displayed below.] Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $152,070). $ 275,000 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $800). 1,600 c. Sold merchandise (costing $9,000) to a customer on account with terms n/30. 20,000 d. Collected half of the balance owed by the customer in (c). 10,000 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 1,800 Compute the gross profit percentage. (Round your answer to 1 decimal place.)
Answer: 45%
Explanation:
First calculate the sales:
= Cash sales + credit sale
= 275,000 + 20,000
= $295,000
Terms on credit sale was 2/10 n/30 and they paid half in time($10,000) but a partial allowance of $1,800 was granted:
Net sales would be:
= Sales - sales returns - sales discount
= 295,000 - 1,600 - (10,000 * 2%) - 1,800
= $291,400
COGS = 152,070 + 9,000 - 800
= $160,270
Gross profit percentage = (Sales - Cost of goods sold) / Sales
= (291,400 - 160,270) / 291,400 * 100%
= 45%
Ana and Shen need to decide which one of them will need to take time off work to complete the rather urgent task of shearing their llamas. Ana is pretty good with a pair of shears; she can shear the llamas in one hour. Shen is somewhat slow; it takes him six hours to shear the llamas. Ana earns $120 per hour as a business consultant, while Shen earns $15 per hour as a lifeguard.
Keeping in mind that either Ana or Shen must take time off work to shear the llamas, who has the lowest opportunity cost of completing the task?
A. Ana
B. Shen
C. Ana and Shen face identical opportunity costs
Answer:
B
Explanation:
We have to consider the opportunity cost of both parties
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
If Ana chooses to shear, she would be forgoing an income $120
If Shen chooses to shear for 6 hours, she would be forgoing an income ($15 x 6) = 90
Shen has a lower opportunity cost and should shear
DriveTrain, Inc. instituted a new process in October 2020. During October, 13,800 units were started in Department A. Of the units started, 8,950 were transferred to Department B, and 4,850 remained in Work-in-Process at October 31, 2020. The Work-in-Process at October 31, 2020, was 100% complete as to material costs and 50% complete as to conversion costs. Material costs of $37,260 and conversion costs of $45,500 were charged to Department A in October. What were the total costs transferred to Department B assuming Department A uses weighted-average process costing
Answer:
$59,965
Explanation:
Equivalent Units
Materials = 8,950 x 100 % + 4,850 x 100 % = 13,800 units
Conversion Costs = 8,950 x 100 % + 4,850 x 50 % = 11,375 units
Total Costs
Materials = $37,260
Conversion Costs = $45,500
Cost per Equivalent unit
Materials = $37,260 / 13,800 units = $2.70
Conversion Costs = $45,500/ 11,375 units = $4.00
Total Unit Cost = $2.70 + $4.00 = $6.70
Total costs transferred to Department B
Total costs = 8,950 x $6.70 = $59,965
Therefore, the total costs transferred to Department B is $59,965
Select the correct statement below regarding Manufacturing Overhead: Multiple Choice Manufacturing overhead is always an estimated cost. Manufacturing overhead is a clearing account and is neither shown on the balance sheet or income statement in published financial statements. Manufacturing overhead is an inventory account that is shown on the balance sheet. Manufacturing overhead is an expense account for all factory costs that are neither direct materials or direct labor.
Answer:
D) Expense account for all factory costs, except direct material or labour
Explanation:
Manufacturing Overhead refers to indirect costs, incurred during the process of production. This is charged as cost - to the units produced, during a reporting period. Example : Depreciation of asset, cost of asset is spread to all the useful years (& corresponding period output)
Which of the following is not true about emergency funds?
O They help remove the worry about expenses not listed in the budget.
O They help you prepare for unexpected expenses.
O They are used for anything listed in the budget.
O They can keep you from borrowing money from friends and family members.
Emergency funds are typically set aside to cover unexpected expenses that are not included in the regular budget. The statement "They are used for anything listed in the budget" is not true about emergency funds. Hence, option C is the correct answer.
These expenses may include medical emergencies, car repairs, home repairs, job loss, or any unforeseen financial hardships. The purpose of an emergency fund is to provide a financial safety net for unexpected situations that can disrupt one's financial stability.
On the other hand, expenses listed in the budget are part of the regular planned expenses, such as rent or mortgage payments, groceries, utilities, transportation, and other recurring costs.
Hence, option C is the correct answer.
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Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2021, Isaac had $621 million in sales of this type. Scheduled collections for these sales are as follows:
2021 $61 million
2022 121 million
2023 131 million
2024 152 million
2025 156 million
$621 million
Assume that Isaac has a 25% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses and additional sales in 2022, what deferred tax liability would Isaac report in its year-end 2022 balance sheet?
a. $128 million.
b. $59 million.
c. $104 milion.
d. $8 million.
Answer:
$109,750,000
Explanation:
Note: Options provided in the question belong to similar question but different numbers
Deferred Tax liability = (Revenue from specific sales in 2021 - Cash received against it up to 2022) * Tax rate
Deferred Tax liability = ($621 million - $61 million - $121 million) * 25%
Deferred Tax liability = $439 million * 25%
Deferred Tax liability = $109,750,000
Select the correct answer.
In general, how long does it take to accomplish a long-term goal?
OA.
a few days to a week
OB.
a few weeks to a month
OC.
a few months to a year
OD.
more than a year
Longview Manufacturing Company manufactures two products (I and II). The overhead costs ($60,500) have been divided into three cost pools that use the following activity drivers:
Number of Labor
Product Number of Orders Transactions Labor Hours
I 15 50 500
II 10 150 2,000
Cost per pool $12,500 $8,000 $40,000
If the number of labor hours is used to assign labor costs from the cost pool, determine the amount of overhead cost to be assigned to Product I.
a. $8,000.
b. $58,000.
c. $9,600.
d. $32,000.
Answer:
a. $8,000.
Explanation:
The computation of the amount of overhead cost assigned to the product I is shown below:
= $40,000 ÷ 2,500 × $500
= $8,000
Hence, the amount of overhead cost assigned to the product I is $8,000
Therefore the correct option is a.
Consider two $10,000 face value corporate bonds. Bond A is currently selling for $9,980 and matures in 15 years. The Bond B sells for $9,350 and matures in 3 years. a) Calculate the current yield as a percentage to 2 decimal places for both bonds if both have a coupon rate equal to 5%. Bond A % Bond B % b) Calculate the yield to maturity as a percentage to 2 decimal places for both bonds if both have a coupon rate equal to 5%. Bond A % Bond B % Which current yield is a better approximation of the yield to maturity, A or B
Solution :
Current yield of the Bond if the bonds are selling at a price of $ 9980.
Current yield = annual coupon amount / current selling price
Current yield [tex]$=\frac{10000 \times 5\%}{9980}$[/tex]
[tex]$=\frac{500}{9980}$[/tex]
= 0.0501
= 5.01 %
The current yield of a bond if the bonds are selling at $ 9350
Current yield = annual coupon amount / current selling price
Current yield [tex]$=\frac{10000 \times 5\%}{9350}$[/tex]
[tex]$=\frac{500}{9350}$[/tex]
= 0.0535
= 5.35 %
A sole proprietor in the 37% tax bracket pays her 16-year-old son a reasonable salary of $14,000 for services performed for the proprietorship. Compute the family's income tax savings if the son has no other income and takes a $12,400 standard deduction.
Answer: $5020
Explanation:
The family's income tax savings if the son has no other income and takes a $12,400 standard deduction will be calculated as:
Explanation:
Tax savings from deduction = ($14,000 × 37%) = $5180
Less: Tax on child's taxable income = 10% × ($14,000 - $12,400) = 10% × $1600 = $160
Family's income tax savings = $5180 - $160 = $5020
Howard Co.'s 2016 income from continuing operations before income taxes was $280,000. Howard Co. reported before-tax income on discontinued operations of $50,000. All tax items are subject to a 40% tax rate. In its income statement for 2016, Howard Co. would show which of the following line-item amounts for net income and income tax expense:
a. $213,600 and $117,600 respectively.
b. $356,000 and $318,800 respectively.
c. $117,600 and $213,600 respectively.
d. $232,000 and $269,200 respectively.
Answer:
$198,000 and $112,000 respectively
Explanation:
Income tax expense = Income from continuing operations before income taxes * Tax rate
Income tax expense = $280,000 * 40%
Income tax expense = $112,000
Net income = Income from continuing operations before income taxes - Income tax expense + (Before-tax income on discontinued operations * (1 - 40%)
Net income = ($280,000 - $112,000) + ($50,000 * 0.6)
Net income = $168,000 + $30,000
Net income = $198,000
4. What would be the best pricing strategy for a deli opening in a competitive business
district where the lunchtime rush is the bulk of the business? Explain your answer
Answer:
During the times of opening, the business can offer lucrative and attractive discounts and deals such as buy one get one free deals or opening offers or different deals and discounts to gain competitive business advantage.
Explanation:
Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries. Total spending for the federal government of Lilliput for the last fiscal year was $24.19 billion. The country collected $22.9 billion in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Lilliput's budget balance?
Answer: Lilliput is a country that has closed borders and does not import or export any goods or services
Explanation:
Consider the simple 3-station assembly line illustrated below, where the 2 machines at Station 1 are parallel, i.e., the product only needs to go through one of the 2 machines before proceeding to Station 2. Station 1 Machine A has a capacity of 3 units per hour; Station 1 Machine B has a capacity of 3 units per hour; Station 2 has a capacity of 5 units per hour; Station 3 has a capacity of 10 units per hour What is the bottleneck time of this process
Answer:
The bottleneck time for this process is 20 minutes.
Explanation:
a) Data and Calculations:
Station Capacity per hour Time required per unit
1 A 3 20 minutes (60/3)
1 B 3 20 minutes (60/3)
2 5 12 minutes (60/5)
3 10 6 minutes (60/10)
Total demand for the process = 38 minutes (20+12+6)
b) The bottleneck is the station that requires the longest time for its outputs to be processed. The bottleneck in this process is given by Station One, requiring 20 minutes to meet output requirements through either machine A or machine B. The bottleneck constitutes a constraint on the process capacity to achieve results.
Question 10 of 10
Which of the following is a true statement based upon the principle of the
time value of money?
A. The value of money does not increase or decrease as time
passes.
B. Money loses value over time if not used.
C. It is always best to receive money at a later point in time rather
than an earlier point in time.
O D. Money increases in value as time passes so long as it is not
invested.
Answer:
B. Money loses value over time if not used.
Explanation:
Money loses value over time and the reason why is inflation.
Inflation is the general increase in the price of the goods and services within an economy. Inflation causes money to lose value over time if not used because it reduces the purchasing power of money. This is why money should be used if it is not to be spent, mainly as a form of investment with the goal of earning an interest rate that is higher than inflation, or at least, equal to inflation.
Answer:
B. Money loses value over time if not used.
Explanation:
Money loses value over time and the reason why is inflation. Inflation is the general increase in the price of the goods and services within an economy. Inflation causes money to lose value over time if not used because it reduces the purchasing power of money. This is why money should be used if it is not to be spent, mainly as a form of investment with the goal of earning an interest rate that is higher than inflation, or at least, equal to inflation.
Bing Book Bindery has identified two activity cost pools: printing, with an activity driver of batches processed, and binding, with an activity driver of direct labor hours. For the coming quarter, total factory overhead of $140,000 is split such that 65% is allocated to printing and 35% is allocated to binding. Bing makes two types of books: hard cover and soft cover. During the quarter, it expects to produce 5,200 hard cover books and 12,000 soft cover books. Hard covers are produced in batch sizes of 100 and soft covers are produced in batch sizes of 300. A hard cover book requires 0.75 hours of direct labor, while a soft cover book requires 0.25 hours. What is the overhead allocation to soft covers for printing
Answer:
Bing Book Bindery
The overhead allocation to soft covers for printing is:
= $68,250.
Explanation:
a) Data and Calculations:
Activity Cost Pools Overhead Activity Driver Number Overhead
Cost Usage Rates
Printing $91,000 Batches processed 400 $227.50
Binding $49,000 Direct labor hours 150 $326.67
Total $140,000
Overhead rates:
Printing = $227.50 ($91,000/400)
Binding = $326.67 ($49,000/150)
Hard Cover Soft Cover Total
Units produced 5,200 12,000 17,200
Batches 100 300 400
Direct labor hours 0.75 0.25
Total direct labor hours 75 (0.75*100) 75 (0.25*300) 150
Overhead allocated to Soft Cover:
Printing = ($227.50 * 300) $68,250
Binding = ($326.67 * 75) 24,500
Total overhead = $92,750
Overhead allocated to Harc Cover:
Printing = ($227.50 * 100) $22,750
Binding = ($326.67 * 75) 24,500
Total overhead = $47,250
During 2020 the Pharoah Company had a net income of $85100. In addition, selected accounts showed the following changes: Accounts Receivable $2700 increase Accounts Payable 900 increase Buildings 3900 decrease Depreciation Expense 1400 increase Bonds Payable 7900 increase What was the amount of cash provided by operating activities
Answer:
Cash provided by operating activities $84,700
Explanation:
The computation of the amount of cash provided by operating activities is shown below:
Net income $85,100
Add: depreciation expense $1,400
Less: increase in account receivable -$2,700
Add: Increase in account payable $900
Cash provided by operating activities $84,700
When the government imposes an excise tax in a market with a downward-sloping demand curve and an upward-sloping supply curve: _________.
a. consumer surplus falls, producer surplus falls, and a deadweight loss occurs.
b. consumer surplus falls.
c. producer surplus falls.
d. a deadweight loss occurs.
Answer:
A
Explanation:
Tax is a compulsory sum levied on the price of goods and services. It increases the price of goods and services
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
If tax increases the price of the good, consumer surplus would reduce
For example, willingness to pay is $20, price before tax is $5 and price after tax is $10. consumer surplus becomes $10 when it was $15 initially
Tax reduces the amount that would be received by the seller. This reduces consumer surplus.
Deadweight loss is the decrease in quantity demanded as a result of tax. Because tax increases price, the quantity demanded would reduce
Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Beginning Inventory Ending Inventory Finished goods (units) 30,000 80,000 Raw material (grams) 60,000 50,000 Each unit of finished goods requires 3 grams of raw material. The company plans to sell 770,000 units during the year. How much of the raw material should the company purchase during the year
Answer:
See below
Explanation:
Raw materials purchased is computed as;
Raw material purchase = Ending inventory + required for production - beginning inventory
= 50,000 + ((80,000 + 770,000 - 30,000) × 3) - 60,000
= 50,000 + 2,460,000 - 60,000
= 2,450,000 grams
Market Inc. has two divisions, Talbot and Heather. Following is the income statement for the past month: Talbot Heather Total Sales$280,000 $168,000 $448,000 Variable Costs 168,000 67,000 235,000 Contribution Margin 112,000 101,000 213,000 Fixed Costs (allocated) 112,500 67,500 180,000 Profit Margin$(500) $33,500 $33,000 What would Market's profit margin be if the Talbot division was dropped and all fixed costs are unavoidable
Answer:
$(79,000)
Explanation:
Calculation to determine What would Market's profit margin be if the Talbot division was dropped and all fixed costs are unavoidable
Using this formula
Market's profit margin =Contribution margin - Fixed costs
Let plug in the formula
Market's profit margin=$101,000-$180,000
Market's profit margin=$(79,000)
Therefore What would Market's profit margin be if the Talbot division was dropped and all fixed costs are unavoidable is $(79,000)
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity:
Sales (350,000 units) $4,375,000
Cost of goods sold 2,600,000
Gross profit 1,775,000
Operating expenses 840,000
Net income $ 935,000
Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam receives a special order for 15,000 toasters at $7.60 each from Luna Company. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs.
Instructions
a. Prepare an incremental analysis for the special order.
b. Should Moonbeam accept the special order?
Answer:
Moonbeam Company
a) Incremental Analysis for the Special Order:
Sales (15,000) at $7.60 $114,000
Variable cost of sales 5.20 78,000
Variable overhead 1.92 28,800
Total variable costs ($106,800)
Contribution $7,200
b) Moonbeam should accept the special order. It makes a contribution of $7,200 to the defraying of the fixed costs.
Explanation:
a) Data and Calculations:
operating results while operating at 75% of plant capacity:
Total Unit
Sales (350,000 units) $4,375,000 $12.50
Cost of goods sold 2,600,000
Variable (70%) $1,820,000 5.20
Fixed (30%) 780,000
Gross profit 1,775,000
Operating expenses 840,000
Variable (80%) $672,000 1.92
Fixed (20%) 168,000
Net income $ 935,000
Incremental Analysis for the Special Order:
Sales (15,000) at $7.60 $114,000
Variable cost of sales 5.20 78,000
Variable overhead 1.92 28,800
Total variable costs ($106,800)
Contribution $7,200
b) Incremental analysis concentrates on the variable elements of costs. The method disregards all fixed costs as they are regarded as sunk or past costs, and therefore, irrelevant to the decision at hand.
Company XYZ forecasts expanding markets, see many opportunities for growth, and adopts a growth strategy. It has invested heavily into a highly efficient production process. Administratively, it has tight control over costs and lots of rules and regulations to promote efficiency. According to the adaptation model of strategy, company XYZ:_________
a. is a strategie failure
b. as prospector
c. as defender
d. as an analyzer
Answer:
c
Explanation:
The adaption model was developed by Miles and Snow (1978)
Businesses are classified as :
ReactorsDefenders AnalysersprospectorsCompany XYZ can be classified as a defender. this is because they have taken steps to increase control internally. It also has a lot of rules which might stifle adaption
Chelsea’s goal is to someday have her own restaurant. Taking cooking classes in high school would help prepare Chelsea for her future career.
A.
True
B.
False
Answer:
True
Although operations of restaurant has nothing to do with cooking as Chelsea can hire a chef for her restaurant. But still it would be helpful for her in a sense that she can calculate the right amount of ingredients needed and their respective costs required. Also she can herself be a chef at her restaurant that would save the salary expense of a chef.
Explanation:
Answer:
True
Explanation:
If it is a small restaurant she maybe the cook and the skill of knowing how to cook would be needed
Presented below is information for Kingbird Company.
1. Beginning-of-the-year Accounts Receivable balance was $16,600.
2. Net sales (all on account) for the year were $102,400. Kingbird does not offer cash discounts.
3. Collections on accounts receivable during the year were $90,000.
a. Prepare (summary) journal entries to record the items noted above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. 3. SHOW LIST OF ACCOUNTS
b. Compute Kingbird's accounts receivable turnover and days to collect receivables for the year. The company does not believe it will have any bad debts. (Round answers to 2 decimal places, e.g. 4.57.) Accounts receivable turnover times Days to collect accounts receivable days Use the results to analyze Kingbird's liquidity. The turnover ratio last year was 8.1. This is a trend in liquidity.
Answer:
Kingbird Company
a) Journal Entries:
1. No journal required
2. Debit Accounts Receivable $102,400
Credit Sales Revenue $102,400
To record sales on account.
3. Debit Cash $90,000
Credit Accounts Receivable $90,000
To record the collections on account.
b) Accounts receivable turnover and days:
Accounts receivable turnover = Sales/Average Receivable
= $102,400/22,800
= 4.49
Accounts receivable days = 365/4.49 = 81.29 days
c) The accounts receivable turnover ratio for the current year is 4.49. This is better than last year's 8.1. The current year's ratio shows that liquidity had been improved.
Explanation:
a) Data and Calculations:
Accounts Receivable:
Beginning balance $16,600
Net sales 102,400
Cash collections (90,000)
Ending balance $29,000
Average receivable = ($16,600 + $29,000)/2 = $22,800
Lopez Corporation incurred the following costs while manufacturing its product.
Materials used in product $122,200 Advertising expense $49,900
Depreciation on plant 69,200 Property taxes on plant 17,600
Property taxes on store 8,590 Delivery expense 28,300
Labor costs of assembly-line workers 113,100 Sales commissions 44,400
Factory supplies used 34,000 Salaries paid to sales clerks 51,300
Work in process inventory was $13,300 at January 1 and $17,200 at December 31. Finished goods inventory was $68,800 at January 1 and $47,900 at December 31.
Required:
a. Compute cost of goods manufactured.
b. Compute cost of goods sold.
Answer:
a. $352,200
b. $372,100
Explanation:
The cost of goods manufactured
Consider only the manufacturing costs
Cost of goods manufactured = $122,200 + $69,200 + $17,600 + $113,100 + $34,000 + $13,300 - $17,200
=$352,200
Cost of goods sold
Add Cost of goods manufactured to the net of Finished inventory balance
Cost of goods sold = $47,900 $68,800 + $352,200 - $47,900
= $372,100
Florissa's Flowers jointly produces three varieties of flowers in the same garden: tulips, lilies, and daisies. The flowers are all watered via the same irrigation system and all receive the same amount of water; daisies require three times as much as lilies, and the water required for tulips is about halfway between the amounts needed for daisies and lilies. Although the lilies and tulips receive more water than they need due to the joint irrigation process, they are not hurt by the overwatering. The joint production cost of the three varieties of flowers is about $30 per harvest. Every harvest yields 10 tulips, 20 lilies, and 20 daisies
Allocate the joint costs of production to each product using the physical units method.
Joint Product Flowers per Harvest Proportion Joint Costs Allocation
Tulip % $ $
Lily %
Daisy %
Totals $
Which products receive the largest portion of the joint costs?
Answer:
Lily and Daisy
Explanation:
Joint product Flowers per harvest Proportion Joint cost allocation
Tulip 10 20% (10/50) $6 ($30*20%)
Lily 20 40% (20/50) $12 ($30*40%)
Daisy 20 40% (20/50) $12 ($30*40%)
Totals 50 100% $30
As per above results, both Lily and Daisy received the largest proportion of joint cost.