Answer:
a. 759 units
b. $948.75
c. 16 orders, $960
d. $1908.75
e. 16
f. 480
Explanation:
Economic order quantity (EOQ) is focus on the reducing the cost like - carrying cost, holding cost to produce additional number of a units in a company.
a. The economic order quantity (EOQ) is computed below.
= [tex]\sqrt{\frac{2\times \text{annual demand}\times \text{ordering cost}}{\text{carrying cost per order}}}[/tex]
= [tex]\sqrt{\frac{2\times \text{12,000}\times \text{\$ 60}}{\text{2.50}}}[/tex]
= 759 units
b. Average inventory = Economic order quantity ÷ 2
= 759 ÷ 2
= 379.5
Annual inventory holding cost = Average inventory × holding cost per order
= 379.5 × $2.50
= $948.75
c. Number of orders each year = Demand ÷ Economic order quantity
= 12,000 ÷ 759 units
= 16 orders
Annual order cost = Number of orders × ordering cost
= 16 orders × $60.00
= $960
d. Annual cost = Annual inventory holding cost + Annual order cost
= $948.75 + $960
= $1908.75
e. Time between orders = Number of working days per year ÷ number of orders
= 250 ÷ 16
= 16
f. Reorder Point (ROP) = Daily demand × lead time + safety stock
= (12,000 ÷ 250) × 10
= 480
Thus,
a. 759 units
b. $948.75
c. 16 orders, $960
d. $1908.75
e. 16
f. 480
The Economic Order Quantity for Joe Henry's machine shop is 759 brackets per order. The average inventory is 380 brackets, with an annual holding cost of $950, and 16 orders are placed annually, resulting in an annual order cost of $960. The total annual inventory management cost is $1,910, with 16 days between orders and a Reorder Point of 480 brackets.
Explanation:The Economic Order Quantity (EOQ) model is used to determine the most cost-effective quantity of inventory to order. The EOQ formula is √(2DS/H), where D is annual demand, S is the order cost per order, and H is the holding cost per unit per year. Using the given values:
Annual demand (D) is 12,000 brackets.Order cost (S) is $60 per order.Holding cost (H) is $2.50 per bracket per year.Using these to compute EOQ: √((2 × 12,000 × 60) / 2.50) = √(1,440,000 / 2.50) = √576,000 = 758.77, which can be rounded up to 759 brackets per order.
The average inventory is half of the EOQ, so it would be 759 / 2 = 379.5, rounded to 380 brackets. The annual inventory holding cost is the average inventory multiplied by the holding cost, which is 380 × $2.50 = $950.
The number of orders per year is the annual demand divided by EOQ, which is 12,000 / 759 ≈ 15.81, rounded up to 16 orders per year. The annual order cost is the number of orders multiplied by the order cost, which is 16 × $60 = $960.
The total annual cost of managing inventory includes both the annual order cost and the annual holding cost. It would be $960 (order cost) + $950 (holding cost) = $1,910.
The time between orders, or the order cycle time, is the number of working days per year divided by the number of orders per year. The calculation would be 250 / 16 ≈ 15.62 days, which can be rounded to 16 days between orders.
The Reorder Point (ROP) is calculated as daily demand multiplied by the lead time. Daily demand is annual demand divided by the number of working days, which is 12,000 / 250 = 48 brackets per day. With a lead time of 10 days, the ROP is 48 × 10 = 480 brackets.
Antonio’s makes the greatest pizza and delivers it hot to all the dorms around campus. Last week Antonio's supplier of pepperoni informed him of a 25% increase in price of pepperoni. What happens in the market for Antonio's pizzas?
Answer:
At first, It will have no impact.
Later it will make the equilibrium price go higher. Quantity unchanged
Explanation:
First The raw material cost increase in the pepperoni will decrease the profit of Antonio's pizzas with that ingredient. It will not have an impact on the pizzas market.
But once after, Antonio's decides to markup the price, to get their previous profit margin back, the price of the pizzas will increase and because is the only supplier around campus their demand will not react (low to any elasticity to price) to the price rise and accepts the new price.
The increased price of pepperoni, a key input in Antonio's pizza production, leads to a decrease in supply as costs rise. Antonio can choose to absorb these costs, decreasing his profits, or pass the costs onto consumers by raising pizza prices, which might decrease demand. This supply and demand shift affects the market for Antonio's pizzas.
Explanation:The scenario presented deals with the concepts of supply, demand, and price in a market, emphasizing more on the effect of input costs on a business. When Antonio's pepperoni supplier increases the price by 25%, this affects Antonio's production costs.
Essentially, Antonio's supplier's price increase leads to a decrease in the supply of Antonio's pizzas because the cost of production, in this case the price of pepperoni, has increased. Antonio may need to decrease the number of pizzas he can produce or increase his pizza prices to compensate for the increased costs, leading to a new equilibrium in the market for his pizzas.
Two scenarios are possible here: If Antonio chooses to keep the pizza prices fixed, he may have to endure reduced profits. On the other hand, if he increases the pizza prices, this could possibly lead to a decrease in demand as pizza becomes more expensive for customers around campus. Thus, the price increase of a key input affects not just the supply but also the demand of Antonio's pizzas.
Learn more about Supply and Demand here:https://brainly.com/question/32830463
#SPJ3
One of the goals you have set for your company is "to expand our product line." This statement is
A. a valuable addition to your mission statement. B. a slow-growth option. C. not clear and not measurable. D. a short-term goal 9.
Answer:
One of the goals you have set for your company is "to expand our product line." This statement is not clear and not measurable.- C.
In this question, it's asking which answer choice best describes the statement "to expand our product line" for a goal in a business.
The question is pretty much asking if the goal is good enough or is something that could be useful in a business.
Answer: C). Not clear and not measurableThe best answer choice in this case would be "C). Not clear and not measurable" because the goal "to expand our product line" is very vague.
The statement is very unclear, due to the fact that people wouldn't understand what specifically the business is talking about in their product line.
When people read "to expand our product line," people don't know what products the business is producing and how much is the business going to expand the product line. That's what makes this statement vague. We don't know how much the business wants to expand their product line. Add 1 more product to the product line? Add two more products to the product line? That's the question that the statement is leading people to.
We also can't measure the business process with the statement, due to the fact that we don't know how much we're going to measure to. This is also another reason why this statement is vague or unclear.
I hope this helps you outGood luck on your academicsHave a great day!The Holmes Company's currently outstanding bonds have an 8% coupon and a 10% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If the marginal tax rate is 40%, what is Holmes' after-tax cost of debt?
Final answer:
The Holmes Company's after-tax cost of debt is 6%, calculated from a 10% yield to maturity on their bonds, adjusted for a 40% marginal tax rate.
Explanation:
The Holmes Company's after-tax cost of debt is calculated based on the yield to maturity of its currently outstanding bonds. Since the bonds have a 10% yield to maturity, which Holmes believes could be issued at par for new bonds, this is the pre-tax cost of debt. Factoring in the marginal tax rate of 40%, the after-tax cost of debt would be the yield to maturity multiplied by (1 - tax rate), which equates to 10% * (1 - 0.40) = 6%. Therefore, the after-tax cost of debt for Holmes Company would be 6%.
The following financial information is for Chesapeake Corporation are for the fiscal years ending 2018 & 2017 (all balances are normal): Item/Account 2018 2017 Cash $35,000 $24,000 Accounts Receivable 56,000 52,000 Inventory 58,000 44,000 Current Liabilities 76,000 42,000 Net Sales (all credit) 550,000 485,000 Cost of Goods Sold 290,000 265,000 Use this information to determine the number of days in inventory for 2018: (Use a 365 day year. Round & enter your answers to one decimal place and enter the value.)
Answer:
The number of days in inventory for 2018 is 64.1 days
Explanation:
The formula for computing the number of days in inventory is shown below:
= (Average inventory ÷ Cost of good sold ) × 365 days
where,
Average inventory = (Opening inventory + ending inventory) ÷ 2
= ($58,000 + $44,000) ÷ 2
= $51000
Now put the values on the formula which is shown above.
= ($51000 ÷ $290,000) × 365 days
= 64.1 days
Thus, the number of days in inventory for 2018 is 64.1 days
Assume that a monsoon destroys the coffee crop in Vietnam, one of the world's largest coffee producers. What will likely occur?
The price of sugar and creamer will increase.
People will consume more coffee.
Consumers will try to find alternatives to coffee due to increases in the price of coffee.
There will be no change in the market for coffee.
Answer: The correct answer is "Consumers will try to find alternatives to coffee due to increases in the price of coffee."
Explanation:
When the coffee harvest in Vietnam is destroyed, the supply of coffee decreases, this causes its price to increase due to the law of supply and demand, therefore consumers will try to find alternatives to coffee.
Final answer:
A monsoon destroying the coffee crop in Vietnam will likely lead to increases in the price of coffee, prompting consumers to seek alternatives to coffee. It will not lead to more coffee consumption or an increase in the price of sugar and creamer, nor will it leave the coffee market unchanged.
Explanation:
When a monsoon destroys the coffee crop in Vietnam, a significant coffee producer, the immediate consequence would be a decrease in the supply of coffee. According to the laws of supply and demand, when the supply of a product decreases but the demand remains unchanged, the price of the product is likely to increase. In this scenario, consumers will experience increases in the price of coffee. Due to the higher coffee prices, consumers could potentially seek alternatives to coffee such as tea or other caffeinated beverages.
This situation is analogous to issues seen in South America, where coffee production decreases led to noticeable price increases, prompting suppliers and businesses to endure financial strain. Similar to how a drought in Thailand raised sugarcane prices, the loss of coffee crops in Vietnam would drive up coffee prices. Therefore, it is unlikely that the price of sugar and creamer will increase solely based on the coffee crop failure, nor will people consume more coffee due to high prices. Also, there will not be a 'no change' scenario in the coffee market as the supply dynamics have been affected.
Phil Phoenix is paid on a monthly basis. For the month of January of the current year, he earned a total of $9,138. FICA tax for Social Security is 6.2% and the FICA tax for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,516.27. What is the amount of the employer's annual payroll taxes expenses for this employee?
Answer:
the amount of employers annual payroll taxes expenses for his employee is $1133.06
Explanation:
For calculating the employers payroll taxes expenses for his employee , we will add the amount that he has to pay for in social security tax, medicare tax and Federal unemployment tax act and State unemployment tax act tax.
EMPLOYERS PAYROLL TAX =
Social security tax + Medicare tax + FUTA tax + SUTA tax
An important point to understand here is that the social security tax and medicare tax would be calculated on the income earned by Phil in month of January and the FUTA(federal unemployment tax act) and SUTA(state unemployment tax act) taxes would be calculated on the first $7000 of Phil as it is given in the question that the unemployment taxes are calculated on first $7000 of employee.
= $9138 x 6.2% + $9138 x 1.45% + $7000 x .08% + $7000 x 5.4%
= $566.556 + $132.501 + $56 + $378
= $1133.057
= $1133.06 (approximate)
Kenny Electric Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9.25% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation?a. 4.35% b. 4.58% c. 4.83% d. 5.08% e. 5.33%
Answer:
d. 5.08%
Explanation:
We have to first calculate the YTM of the bond, and then apply the tax shield.
To get the YTM we have to calculate the rate of return of an annuity of 46.25 for 20 years compounding semiannually at IRR rate and the present value of the face value redeem in 20 years.
[tex]C \times \frac{1-(1+r)^{-time} }{rate} +Face\:Value/(1+rate)^{time}= PV\\[/tex]
[tex]46.25 \times \frac{1-(1+IRR/2)^{-20*2} }{rate} + 1000/(1+IRR)^{20}= 1075\\[/tex]
IRR = 0.084656891 (it should be done using financial calculator or excel or a similar software program)
then we apply the shield tax to the IRR:
IRR x (1 - tax-rate) = Cost of debt
0.084656891 * ( 1 - 0.4) = 5.0794= 5.08
The component cost of debt for Kenny Electric Company's bonds requires calculating the yield to maturity (YTM) and adjusting for taxes. For the water company's $10,000 ten-year bond at 6%, when market rates rise to 9%, the price paid for the bond would be less than $10,000. The exact value would be calculated by discounting the bond's future cash flows at the new market rate.
Explanation:The question involves calculating the component cost of debt for use in the Weighted Average Cost of Capital (WACC) for Kenny Electric Company's noncallable bonds with a 9.25% annual coupon rate, paid semiannually, a selling price of $1,075, a par value of $1,000, and a remaining maturity of 20 years. To calculate this, we need to determine the yield to maturity (YTM) on a semiannual basis and then adjust for the company's tax rate. The YTM reflects the total return an investor would expect if they purchased the bond at its current price and held it until maturity.
For the provided scenario regarding the water company's $10,000 ten-year bond with a 6% interest rate, if you are looking to buy the bond one year before maturity when the market interest rates have risen to 9%, you would expect to pay less than $10,000 for the bond. This is because the bond's fixed coupon payments are less attractive when new issues offer a higher rate, hence the price of the bond must decrease to align with the current yield expectations of potential investors.
To calculate what you would be willing to pay for the bond, you need to calculate the present value of the bond's future cash flows (interest and principal repayment) discounted at the new market interest rate of 9%. With only one year and one coupon payment left, the bond is essentially a one-year fixed income investment, making the math simpler. However, since the original question does not provide the calculation for Kenny Electric Company's bonds, we cannot provide the answer from the multiple choices given for the component cost of debt. In both cases, it is crucial to remember that bond prices are inversely related to market interest rate movements and the discounting process is essential in bond valuation.
Suppose you are the money manager of a $5.38 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 440,000 1.50 B 800,000 (0.50 ) C 1,540,000 1.25 D 2,600,000 0.75 If the market's required rate of return is 10% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
I wanna say its C 1,540,000
As part of the rehabilitation of the downtown area of a southern U.S. city, the Parks and Recreation Department is planning to develop the space below several overpasses into basketball, handball, miniature golf, and tennis courts. The initial cost is expected to be $150,000 for improvements which are expected to have a 20-year life. Annual maintenance costs are projected to be $12,000. The department expects 24,000 people per year to use the facilities an average of 2 hours each. The value of the recreation has been conservatively set at $0.50 per hour. At a discount rate of 3% per year, what is the conventional B/C ratio for the project?
Answer:
The conventional B/C ratio is 1.0868.
Explanation:
Here B / C ratio means the benefit by cost ratio, so here we will first individually calculate the benefit and cost which the parks and recreation department will receive.
BENEFIT RECEIVED =
$24,000(people that will come) x 2 (average hour ) x $.50 ( rate per hour )
= $24,000
calculating present value, where i = interest and n = number of years
$24,000 / (1+i)^1 + $24,000 / (1+i)^2 + _ __ _ + $24,000 / (1+i)^20
= $24,000 x [ 1 - 1 / (1+.03)^20 ] / .03 ( given i = 3% )
= $357,060
PRESENT VALUE OF COST INCURRED =
$150,000 + $12,000 / (1+i)^1 + $12,000 / (1+i)^2 + _ _ + $12,000 / (1+i)^20
= $150,000 + $12,000 x [ 1 - 1 / (1+.03)^20 ] / .03
= $328,530
B / C RATIO = $357,060 / $328,530
= 1.0868
Refer to the following list of liability balances at December 31, 2018. Accounts Payable $ 18,000 Employee Health Insurance Payable 1,350 Employee Income Tax Payable 1,100 Estimated Warranty Payable (Due 2019) 900 Long-Term Notes Payable (Due 2022) 40,000 FICAlong dashOASDI Taxes Payable 560 Sales Tax Payable 870 Mortgage Payable (Due 2023) 14,000 Bonds Payable (Due 2024) 63,000 Current Portion of Long-Term Notes Payable 6,500 What is the total amount of current liabilities?
Answer:
Total current Liabilities $29,280
Explanation:
Accounts Payable $18,000
Employee Health Insurance Payable $1,350
Employee Income Tax Payable $1,100
Estimated Warranty Payable $900
FICA&OASDI Taxes Payable $560
Sales Tax Payable $870
Current Portion of
Long-Term Notes Payable $6,500
Total current Liabilities $29,280
Remember:
current liabilities will be obligation to pay or do that will be settle within a year.
The current liabilities listed total $29,280. These include Accounts Payable, Employee Health and Income Tax Payables, Estimated Warranty Payable, FICA-OASDI Taxes Payable, Sales Tax Payable, and the Current Portion of Long-Term Notes Payable. Long-term payables such as Mortgage Payable are not considered current.
Explanation:Current liabilities are debts or obligations that are due within the current year or operating cycle, whichever is longer. When totaled, the current liabilities listed in your question would include:
Accounts Payable, $18,000 Employee Health Insurance Payable, $1,350 Employee Income Tax Payable, $1,100 Estimated Warranty Payable, $900 FICA-OASDI Taxes Payable, $560 Sales Tax Payable, $870 Current Portion of Long-Term Notes Payable, $6,500
All of these items are to be paid within the year. Therefore, total current liabilities would be $29,280. Notes such as the Mortgage Payable and long-term notes that are not due within the current year are not considered current liabilities.
Learn more about Current Liabilities here:https://brainly.com/question/32361397
#SPJ2
Alpha Industries is considering a project with an initial cost of $7.4 million. The project will produce cash inflows of $1.54 million a year for seven years. The firm uses the subjective approach to assign discount rates to projects. For this project, the subjective adjustment is +1.5 percent. The firm has a pretax cost of debt of 8.6 percent and a cost of equity of 13.7 percent. The debt-equity ratio is 0.0.65 and the tax rate is 35 percent. What is the net present value of the project?
Answer:
Net Present Value: 362,855
Explanation:
First we need to calculate the WACC to know the required return of the project.
[tex]WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})[/tex]
Ke = 0.152 (0.137 cost of capital+ 0.015 subjective risk)
ER = 0.35 = E/(E+D)
Kd = 0.086
DR = 0.65 = D/(E+D)
t = 0.35
[tex]WACC = .152(.35) + .086(1-0.35)(.65)[/tex]
WACC 8.95350%
Then we calcualte the net present value:
Present value of the cash flow
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C= 1,540,000
rate = 8.9535%
time 7 years
[tex]1,540,000 \times \frac{1-(1+0.089535)^{-7} }{0.089535} = PV\\[/tex]
PV = 7,762,855
Present value of the cash flow - Investment = NPV
7,762,855 - 7,400,000 = 362,855
Gallerani Corporation has received a request for a special order of 5,700 units of product A90 for $27.90 each. Product A90's unit product cost is $27.35, determined as follows: Direct materials $ 3.05 Direct labor 8.35 Variable manufacturing overhead 7.45 Fixed manufacturing overhead 8.50 Unit product cost $ 27.35 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product A90 that would increase the variable costs by $4.20 per unit and that would require an investment of $21,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:
Answer:
The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be $6,645
Explanation:
Company's current variable expenses = Direct Material + Direct Labor + Variable Manufacturing Overhead.
= $3.05 + $8.35 + $7.45 = $18.85
Note: Fixed expenses will not be considered as for this purpose, because they are already incurred and its within the capacity of company, to produce such additional units, here the decision will be based on additional cost which are variable cost and additional mold cost of $21,000 and variable cost of $4.20 per unit.
If we would have considered absorption costing then the normal fixed cost would also have been considered.
Here Total cost of 5,700 units = Total variable cost = $18.85 + $4.20 = $23.05
Fixed Cost = $21,000
Total = $23.05 [tex]\times[/tex] 5,700 + $21,000
= $131,385 + $21,000 = $152,385
Revenue from these 5,700 units = $27.90 [tex]\times[/tex] 5,700 = $159,030
Net result = $159,030 - $152,385 = $6,645
Since the result is positive with a financial advantage of $6,645 the project shall be accepted.
Final Answer
The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be $6,645
Petty Cash is easily misappropriated if business processes and internal controls are not established and enforced. Provide and explain a minimum of four controls and/or concepts that will help a company ensure that its petty cash accounts are appropriately used and safeguarded?
Niemann Company has a SUTA tax rate of 7.1%. The taxable payroll for the year for FUTA and SUTA is $82,600. The amount of FUTA tax for the year is: a. $495.60 b. $4,956 c. $5,864.60 d. $420 e. none of the above
Answer:
a. $495.60
Explanation:
It is asking for the amount of FUTA
The FUTA rate is 6% but Niemann is paying their State taxes so it get's a discount for 5.4%
His FUTA rate is then 0.6%
[tex]taxable \: payroll \times FUTA[/tex]
82,600 x 0.06 = 495.6
The FUTA tax for the year for Niemann Company which has a taxable payroll of $82,600 is $420. This is calculated by multiplying the first $7,000 of each employee's wages (which is the FUTA taxable wage base) by the FUTA tax rate (6.0%). The answer is (d) $420.
Explanation:The FUTA tax rate is 6.0% for the first $7,000 of each employee's wages. Therefore, if Niemann Company has a taxable payroll of $82,600, the FUTA tax for the year would be $420. This is calculated by taking the taxable payroll up to $7,000 and multiplying by the FUTA tax rate of 6.0%.
Step-by-step calculation:
Identify the FUTA taxable wage base which is $7,000 in this case.Multiply the taxable wage base by the FUTA tax rate. So, $7,000 * 6.0% = $420.Therefore, the answer is (d) $420.
Learn more about FUTA tax calculation here:https://brainly.com/question/32070315
#SPJ3
Use the following information to determine Total Stockholders' Equity:Total Assets $ 45,000 Total Liabilities 18,000 Total Stockholders' Equity x Total Retained Earnings 5,000
Answer:
The total stockholder equity value is $27,000
Explanation:
By using the accounting equation which is shown below, we can compute the value of total stockholder equity
Accounting Equation:
Total Assets = Total Liabilities + Total Equity
where,
total assets = $45,000
total liabilities = $18,000
So, total equity = $27,000 which includes retained earnings of $5,000
By using these 3 terms, we get to know the profitability, performance of the company.
Hence, the total stockholder equity value is $27,000
The Mixing Department of Complete Foods had 62,000 equivalent units of materials for October. Of the 62,000 units, 38,000 units were completed and transferred to the next department, and 24,000 units were 20% complete. Complete Foods's costs per equivalent unit of production are $ 0.75 for direct materials and $ 0.55 for conversion costs. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the process and the company uses the weighted-average method.
Answer:
Materials
62,000 equivalent units
Conversion
42,800 Equivalent untis
Cost of finished Goods
38,000 x (.75 + .55) = 38,000 x 1.3 = $49,400
WIP
24,000 x .75 = 18,000
4,800 x .55 = 2,640
Total WIP 20,640
Explanation:
Equivalent Units
38,000 complete
20% of 24,000 WIP = 4,800
Equivalent Units CC = 42,800
x .55 CC = 23540
Materials
62,000 x .75 = $46,500
According to the condition, the total costs accounted for Direct materials are $46,500.00, Conversion Costs are $ 23,540.00, and total costs are $70,040.00.
The weighted average considers the relative relevance or frequency of several elements in a data collection.
A weighted average can be more accurate than a simple average in some cases.
Each data point value is multiplied by the allotted weight in a weighted average, which is then totaled and divided by the number of data points.
Here,
Compute the total cost accounted as follows:
Particulars Direct Conversion Total
Cost Cost Cost
Completed $
transferred out $28,500 $20,900 $49,400
Ending Work
In Process $18,000 $2,640 $20,640
Total costs accounted $ 46,500 $ 23,540 $ 70,040
Therefore, the following total cost accounted for as follows:
Direct materials = $46,500.00Conversion Costs are $ 23,540.00Total costs are $70,040.00.To know more about the weighted-average method, visit:
https://brainly.com/question/28565969
#SPJ2
This is an incomplete question, the complete question is:
he Mixing Department of Complete Foods had 62,000 equivalent units of materials for October. Of the 62,000 units, 38,000 units were completed and transferred to the next department, and 24.000 units were 20% complete. Complete Foods' costs per equivalent unit of production are $0.75 for direct materials and $0.55 for conversion costs. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the process and the company uses the weighted average method.
Calculate the cost of the 38,000 units completed and transferred out and the 24,000 units, 20% complete, in the ending Work-in-Process Inventory
Sally and Andy are partners in Just Hats, LLC. Andy works in the business for an agreed salary draw of $4,000 per month. Sally has invested $200,000 in the business and Andy invested $100,000. THe net income of the business is $168,000 for the year. Income is distributed based on the investment of each partner after allocation for salary. How much net income is allocated to Sally?
Answer:
Net income allocated to sally is $112000
Explanation:
Sally invested $200000 and Andy invested $100000, which means Andy's investment is half of Sally's investment. So he will receive the half of what Sally will get.
Let
Sally's pay be x
Andy's pay be x/2
Total Net income is 168000 dollars.
So, putting it in an equation, we get
(x+x/2)=168000
x(1+0.5)=168000
x(1.5)=168000
x= 168000/1.5
x=112000
So Sally's share will be $112000
Andy's share will be x/2
=112000/2
=56000
So Andy share will be $56000
The Net income allocated to sally is $112000
Calculation of the allocation of the net income:Since Sally invested $200000 and Andy invested $100000, which means Andy's investment is half of Sally's investment.
Let us assume Sally's pay be x
So, Andy's pay be x/2
And,
Total Net income is 168000 dollars.
Now the equation is
(x+x/2)=$168000
x(1+0.5)=$168000
x(1.5)=$168000
x= $168000/1.5
x=$112000
So Sally's share will be $112000
Now
Andy's share will be x/2
=$112000/2
=$56000
Hence, the Net income allocated to sally is $112000".
Learn more about net income here; https://brainly.com/question/24331375
A small copy center uses 4 590-sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by a normal distribution with a mean of 4 boxes per week and a standard deviation of .50 boxes per week. 2 weeks are required to fill an order for letterhead stationery. Ordering cost is $5, and annual holding cost is 37 cents per box. Determine the economic order quantity, assuming a 52-week year.
Answer: The Economic order quantity(EOQ) is 74 boxes.
Explanation:
Given weekly demand (d)= 4 boxes
Annual demand (D) = 4[tex]\times[/tex]52 = 208 boxes
Ordering cost S = $5
Holding cost H = $0.347
Standard deviation ([tex]\sigma[/tex]) = 0.50
Lead time (L) = 2 weeks
∴ Economic order quantity (EOQ) Q is as follow :
Q = [tex]\sqrt{\frac{2\times D \times S}{H} }[/tex]
Q = [tex]\sqrt{\frac{2\times 208 \times 5}{0.347} }[/tex]
Q = 77.42 or 74
The Economic order quantity(EOQ) is 74 boxes.
Jim's Gymnastics Training's operations for the month of October are summarized as follows: • Provided $5,000 of training to students. • Received $8,000 cash from students—of which $4,000 is for training provided in October (as billed above), $1,000 is for training to be provided in November, and $3,000 is for training provided in September. • Paid September's gym rental bill of $1,000. Received October's bill of $1,500, but did not pay.Prepare a journal entry.
Answer: These transactions can be journalised as follows :-
Explanation:
1. Receivables A/C Dr. 5000
To revenue A/C 5000
( Being paid for training of students)
2a. Cash A/C Dr. 4000
To Receivables A/C 4000
(Being 4000 provided in october)
2b. Cash A/C Dr. 1000
To Receivables A/C 1000
(Being 1000 recieved for training)
2c. Cash A/C Dr. 3000
To Receivables A/C 3000
(Being 3000 recieved for training)
3a. Accounts payable A/C Dr. 1000
To cash A/C 1000
(Being 1000 provided for rental bill of september)
3b. Rental expense A/C Dr. 1500
To accounts payable A/C 1500
(Being 1500 provided for rent bill in october)
The journal entries for Jim's Gymnastics Training for the month of October involve recording revenues, cash received, deferred revenues, and the gym rental expense.
Explanation:This question involves basic accounting principles and preparing journal entries. Journal entries are the first step in the accounting cycle and are used to record all business transactions and events in the accounting system.
For Jim's Gymnastics Training, you'd prepare the following journal entries for October:
Debit Accounts Receivable $5,000 and credit Service Revenue $5,000. This is for the training provided to students which is yet to be paid for.Debit Cash $8,000. Of this, credit Deferred Revenue $1,000 (for the training to be provided in November), credit Service Revenue $4,000 (for the training provided in October and now paid for) and credit Accounts Receivable $3,000 (payment for the training provided in September).Debit Rent Expense $1,500 and credit Accounts Payable $1,500 for the October rent bill that is not yet paid. Also, as September's gym rental has been paid, no journal entry is required for it in October's books.Learn more about Accounting Journal Entries here:https://brainly.com/question/28044739
#SPJ3
Suppose we observe 300 boxes delivered incorrectly to the wrong addresses in a small city during a single day when a total of 100,000 boxes were delivered. What is the DPMO in this situation?
Answer:
DPMO 3,000
Explanation:
Defect per Millon Opportunities
[tex]1000000 \times \frac{sample \: defect}{sample \: size} = \: dpmo[/tex]
DPMO = 1,000,000 * 300/100,000 = 3,000
we divide the failure of the sample by the sample side and apply the ratio to 1,000,000 to get an expected failure per millon
Barry’s BarBQue incurred the following costs: $1,400 for ribs, 45 hours of labor to cook the ribs at $10 per hour, $50 for seasoning and sauce, $300 for signs to advertise the ribs, $150 to clean the grill after cooking the ribs, and $100 of administrative costs. How much are total product costs? $2,050 $1,850 $2,150 $2,350
Answer:
The total product costs is $2,050
Explanation:
Given cost:
Ribs cost = $1,400
Labor cost = 45 hours × $10 per hour = $450
Seasoning and Sauce cost = $50
Advertising = $300
Grill cost = $150
Administrative cost = $100
By using these cost, we can easily compute the total product cost.
The product cost is that which is attached to the product. It can be direct material, direct labor, etc.
So product cost = Rib cost + Labor cost + Seasoning and Sauce cost + Grill cost
= $1,400 + $450 + $50 + $150
= $2,050
Other cost is not considered because they are related to general & administrative cost, selling cost which termed as period costs.
So, the total product costs is $2,050
Total product costs for Barry's BarBQue are calculated by adding the costs of ribs, labor, seasoning, and sauce, and the cleaning of the grill which totals to $2,050. The correct option is a.
Explanation:The student's question pertains to the calculation of the total product costs for Barry's BarBQue. To determine total product costs, one should sum the costs that are directly associated with the production of the goods, which includes material, labor, and overhead expenses. In this case, the calculation would be as follows:
Cost of ribs: $1,400Labor (45 hours at $10 per hour): $450Seasoning and sauce: $50Cleaning the grill: $150While administrative costs and advertising signs are also expenses for the business, they are not typically considered product costs. Product costs include only those costs that are directly tied to the creation of the product itself.
Thus, the total product costs are:
$1,400 (ribs) + $450 (labor) + $50 (seasoning and sauce) + $150 (cleaning) = $2,050
What are the most likely reasons a us corporation would open a factory in china? Check all that apply.
a. to take advantage of affordable land pricesb. to take advantage of abundant resourcesc. to take advantage of lower labor costsd. to take advantage of favorable tax laws
Answer:
The correct answer is: All of them apply.
Explanation:
Typically, when a company plans to start operations abroad it is to reduce costs which eventually will imply getting higher revenues. Cheaper labor hand, resources, infrastructure or discrete government intervention in businesses impulse major firms to go off-shore.
If there is capital flight from the United States, then the demand for loanable funds a. shifts left while the supply of dollars in the foreign-exchange market shifts right. b. and the supply of dollars in the foreign-exchange market shift left. c. shifts right while the supply of dollars in the foreign-exchange market shifts left. d. and the supply of dollars in the foreign-exchange market shift right.
Answer: Option (c) is correct.
Explanation:
If a country is suffers from capital flight, then the demand for loanable funds shifts rightwards while the supply of dollars in the foreign exchange market shifts leftwards.
Capital flight means that there is a outflow of capital from United States to other countries. This will results in lower interest rate, as a result loans become cheaper. So, it will become affordable for the individuals to take loans for their needs.
Hence, the demand for loanable funds increases at a lower interest rate and supply of US dollar also shifts leftwards.
Matthew, Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee’s operations and decision making. On January 1, 2018, the balance in the Investment in Lindman account is $348,000. Amortization associated with this acquisition is $16,900 per year. In 2018, Lindman earns an income of $98,000 and declares cash dividends of $49,000. Previously, in 2017, Lindman had sold inventory costing $29,400 to Matthew for $42,000. Matthew consumed all but 25 percent of this merchandise during 2017 and used the rest during 2018. Lindman sold additional inventory costing $46,200 to Matthew for $70,000 in 2018. Matthew did not consume 40 percent of these 2018 purchases from Lindman until 2019. What amount of equity method income would Matthew recognize in 2018 from its ownership interest in Lindman? What is the equity method balance in the Investment in Lindman account at the end of 2018?
Answer:
$326186
Explanation:
Matthew, Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee’s operations and decision making. On January 1, 2018, the balance in the Investment in Lindman account is $348,000. Amortization associated with this acquisition is $16,900 per year. In 2018, Lindman earns an income of $98,000 and declares cash dividends of $49,000. Previously, in 2017, Lindman had sold inventory costing $29,400 to Matthew for $42,000. Matthew consumed all but 25 percent of this merchandise during 2017 and used the rest during 2018. Lindman sold additional inventory costing $46,200 to Matthew for $70,000 in 2018. Matthew did not consume 40 percent of these 2018 purchases from Lindman until 2019. What amount of equity method income would Matthew recognize in 2018 from its ownership interest in Lindman? What is the equity method balance in the Investment in Lindman account at the end of 2018?
Let's use equity method
The Proportionate share of his investment in 2018 is:
Share % x (Net Income - acquisition amortization +/- upstream profits +/- downstream profits)
30% x (98,000 - 16,900 + No upstream from 2017 as it was sold by end of 2018 + (40% x (70,000 - 46,200)) + No downstream profits
30% x (81,100 + 9520)
30% x 90620
$27186
Equity Balance is:
Cost of investment + Proportionate share of Investment - Dividends
348,000 + 27186 - 49,000
$326186
The normal time for a repetitive task that produced two work units per cycle is 3.0 min. The plan uses a PFD allowance factor of 15%. Determine (a) the standard time per piece and (b) how many work units are produced in an 8-hour shift at standard performance. (20 pts)
Answer:
A.- 3.45 min to produce two work units
B.- In a 8-hout shift at standard performance 274 work units are produced
Explanation:
The Standart tiem per piece would be:
[tex]StandardTime=NormalTime*(1+PFD)[/tex]
Given your numbers it will be:
[tex]3 * (1 + 0.15)= 3.45[/tex]
This is the time per cycle to produce 2 work units
Now, in an 8 hours shift there are 480 minutes. Dividing between the standard time of a cycle we get the standard performance
[tex]\frac{480}{3.45} = 137.14[/tex]
Rounding, we will be getting 137 cycles
Lastly, because each cycle produce 2 work units we are having a total of 274 Units
A real estate developer is evaluating a 40-unit apartment development. The expected average occupancy is 90%. Cost of land: $1,200,000 Construction: $$4,800,000 Project Life: 25 years Maintenance: $100 per unit per year (regardless of weather a unit is occupied). Annual insurance and property taxes: $400,000 Required return: 12% per year (0.9489% per month) Assume that the building will have NO salvage value at the end of 25 years, BUT the land will appreciate at a rate of 5% per year. Determine the total minimum monthly rent (all units combined) that should be charged, given the required return.
Answer:
Monthly Rent = 92825.46
Explanation:
[tex]C * \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
Total investment 6,000,000
Income per year: X
rate of return 0.009489 per month
time 25 years x 12 months = 300
We will solve for the monthly income of the project.
[tex]C * \frac{1-(1.009489)^{-300} }{0.009489} = 6,000,000\\[/tex]
This should be the net income per month $60,492.12803
Now well do the monthly income statment to solve for rent:
Rent + Aprreciation of land - Property tax - maintenance = net income
Rent + 1,200,000 x 0.05/12 - 400,000/12 - 100 x 40 = 60492.13
Rent = 60492.13 - 5000 + 33333.33 + 4,000 = 92825.46
An investment project has annual cash inflows of $4,400, $3,900, $5,100, and $4,300, for the next four years, respectively. The discount rate is 14 percent. a. What is the discounted payback period for these cash flows if the initial cost is $5,700? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period for these cash flows if the initial cost is $7,800? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the discounted payback period for these cash flows if the initial cost is $10,800? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Discounted payback period shall be as follows:
a. 1 year 7.36 months
b. 2 years 3.27 months
c. 3 years 2.9 months
Explanation:
a. Payback period in case of cash outflow = $5,700
For calculating the pay back period we shall firstly discount the cash flows to present value @14 %.
Year Cash Flow PV Factor PV of Cash Flow Cumulative
Cash Flow
0 - $5,700 1 - $5,700 -5,700
1 $4,400 0.877 $3,858.8 -$1,841.2
2 $3,900 0.770 $3,003 $1,161.8
Since the cumulative cash flows are positive in 2nd year payback period =
1 + [tex]\frac{1,841.2}{3,003} \times 12[/tex] = 1 year and 7.36 months
b. Payback period in case of cash outflow = $7,800
For calculating the pay back period we shall firstly discount the cash flows to present value @14 %.
Year Cash Flow PV Factor PV of Cash Flow Cumulative
Cash Flow
0 - $7,800 1 - $7,800 -7,800
1 $4,400 0.877 $3,858.8 -$3,941.2
2 $3,900 0.770 $3,003 -$938.2
3 $5,100 0.675 $3,442.5 $2,504.3
Since the cumulative cash flows are positive in 3rd year payback period =
2 + [tex]\frac{938.2}{3,442.5} \times 12[/tex] = 2 years and 3.27 months
b. Payback period in case of cash outflow = $10,800
For calculating the pay back period we shall firstly discount the cash flows to present value @14 %.
Year Cash Flow PV Factor PV of Cash Flow Cumulative
Cash Flow
0 - $10,800 1 - $10,800 -$10,800
1 $4,400 0.877 $3,858.8 -$6,941.2
2 $3,900 0.770 $3,003 -$3,938.2
3 $5,100 0.675 $3,442.5 -$495.7
4 $4,300 0.592 $2,545.6 $2,049.9
Since the cumulative cash flows are positive in 4th year payback period =
3 + [tex]\frac{495.7}{2,049.9} \times 12[/tex] = 3 years and 2.9 months
Final Answer
Discounted payback period shall be as follows:
a. 1 year 7.36 months
b. 2 years 3.27 months
c. 3 years 2.9 months
The discounted payback period is calculated by adding the discounted future cash inflows until they equal or surpass the initial investment. The exact duration cannot be determined without performing the calculations.
Explanation:The discounted payback period is a measure of how long it takes for the discounted future cash inflows to repay the initial investment or cost. The cash inflows are discounted using an interest rate (referred to as the discount rate), which here is 14 percent. We need to calculate the payback period for three different initial costs - $5,700, $7,800, $10,800.
It's calculated in the following step-by-step manner:
Calculate the present value of the cash inflows for each year using the formula: PV = CF / (1 + r)^n, where PV is the present value, CF is the cash inflow, r is the discount rate, and n is the year number.Calculate the cumulative discounted cash inflow for each year.Observe the year when the cumulative discounted cash inflow becomes equal to or greater than the initial investment. That's the discounted payback period.Unfortunately, without access to a calculator to compute the exact values, I can't provide specific numbers for the three parts of your question.
Learn more about Discounted Payback Period here:https://brainly.com/question/36333232
#SPJ3
On January 1, JKR Shop had $225,000 of inventory at cost. In the first quarter of the year, it purchased $795,000 of merchandise, returned $11,550, and paid freight charges of $18,800 on purchased merchandise, terms FOB shipping point. The company’s gross profit averages 30%, and the store had $1,000,000 of net sales (at retail) in the first quarter of the year. Use the gross profit method to estimate its cost of inventory at the end of the first quarter.
Answer:
The estimated cost of inventory at the end of the first quarter is $327,250.
Explanation:
Gross profit : The gross profit represents the difference between sale price and purchase price.
The gross profit margin shows the ratio between gross profit and sales.
The calculation of cost of ending inventory is shown below:
First we have to calculate the cost of good sold.
Cost of goods sold = Beginning Merchandise inventory + Purchase of merchandise inventory - Returned Merchandise inventory + Freight charges
= $225,000 + $795,000 - $11,550 + $18,800
= $1,027,250
Now, we have to calculate the approximate cost of goods sold.
Since gross profit is 30% and net sales is $1,000,000
And, The Gross profit = Sales - cost of goods sold
So the Approximate cost of good sold = Net sales × (1 - 30%)
= $1,000,000 × 70%
= $700,000
Here 70% is the cost of goods sold percentage and 1 here denotes sales.
After considering these amounts, the ending inventory would be
= Cost of goods sold - Approximate cost of goods sold
= $1,027,250 - $700,000
= $327,250
Hence, the estimated cost of inventory at the end of the first quarter is $327,250.
An investigator conducting a study of a medical device under an ide is required to complete and sign what?
An investigator conducting a study of a medical device under an IDE is required to complete and sign an Investigator's Agreement or Statement of Investigator (SOI).
Explanation:An investigator conducting a study of a medical device under an Investigational Device Exemption (IDE) is required to complete and sign an Investigator's Agreement or Statement of Investigator (SOI).
This document is a legally binding agreement between the investigator and the sponsor of the study, which outlines the responsibilities and obligations of the investigator. It is important for the investigator to fully understand the terms of the agreement before signing it.
The Investigator's Agreement or SOI typically includes information such as the purpose of the study, the investigator's qualifications, the study protocol, the sponsor's responsibilities, and the investigator's responsibilities.
Learn more about Investigator's Agreement or Statement of Investigator (SOI) here:https://brainly.com/question/32053765
#SPJ6
An investigator conducting a study of a medical device under an Investigational Device Exemption (IDE) must complete and sign an Informed Consent Form. This form outlines the risks and benefits of the study and ensures the participant's understanding and agreement. An IND application is also a requirement before clinical trials can start.
Explanation:An investigator conducting a study of a medical device, under an Investigational Device Exemption (IDE), is required to complete and sign an Informed Consent Form. This crucial document outlines all the potential risks and benefits of participating in the study. The aim is to ensure that the subjects participating in the study are fully aware and agree to the conditions laid out before the study commences.
Among other things, Informed Consent typically contains information about why the research is being conducted, how the collected data will be used, and the extent to which the subject's identity will remain anonymous. It also covers the specific details of the participant’s role in the study, including their right to withdraw from the study at any point.
Additionally, before initiating any clinical trials involving human subjects, the researchers need to submit an Investigational New Drug (IND) application to the FDA's Center for Drug Evaluation and Research (CDER). This application includes substantial data collected from previous laboratory and animal trials, as well other clinical and manufacturing details related to the new device.
Learn more about Informed Consent here:https://brainly.com/question/30321490
#SPJ6
Trade will take place: A. if the maximum that a consumer is willing and able to pay is less than the minimum price the producer is willing and able to accept for a good. B. if the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good. C. only if the maximum that a consumer is willing and able to pay is equal to the minimum price the producer is willing and able to accept for a good. D. none of the above.
Answer: (B.) If the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good.
Explanation:
A producer will only sell goods and services if the consumer is willing to pay as much as the asking price. i.e. The price that the producer is asking. For this to happen the consumer's willingness to pay must be greater than the minimum price.
Therefore , the trade will take place if the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good.
Trade occurs if a consumer's maximum willingness to pay exceeds the minimum price a producer will accept, benefiting both parties with a consumer surplus and a producer surplus. So, option B is correct.
Trade will take place if the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good. This scenario enables both the consumer to obtain the item for less than the maximum they were willing to pay, creating a consumer surplus, and the producer to sell the item for more than their minimum acceptable price, leading to a producer surplus. These conditions drive trade since both parties are made better off through the transaction.