A company purchased an asset for $3,400,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33 percent, 44.45 percent, and 14.81 percent, respectively. What is the book value of the equipment at the end of the project?

Answer:

$24,353,219

Explanation:

The bond is issued on discount when the bond issuance proceeds are less than the face value of the bond. The discount is expensed over the bond period until maturity. It is added to the interest expense value to expense it.

Discount on the bond = Face value - cash proceeds = $24,900,000 - $24,324,441 = $575,559

According to straight line amortization

Discount charged in the period = $575,559 / 20 = $28,778 per year = $14,389 per six months

Cash payment of interest = $24,900,000 x 5.8% = $1,444,200 per year = $722,100 per six months

As on December 31, 2020, one year has passed since the bond is issued. We will calculate annual interest expense

Total Interest Expense = $1,444,200 + $28,778 = $1,472,978

Bond Carrying value will be the net of bond book value and un-adjusted discount balance.

Carrying value of Bond = 24,900,000 - (575,559 - 28,778) = $24,353,219

Final answer:

Using the effective-interest amortization method, the carrying value of the company's bonds on the December 31, 2020 balance sheet will be $24,341,850. The original discount is amortized over the interest payment periods based on the market rate of 6%.

Explanation:

Since the company issued bonds at a discount (the bonds were sold for less than their face value), the discount on bonds payable needs to be amortized over the life of the bonds. On January 1, 2020, the bonds are issued for $24,900,000, with a stated interest rate of 5.8% when the market rate is 6%. The bonds are sold for $24,324,441, indicating a discount of $575,559. Over the course of each interest payment period, part of this discount is amortized as additional interest expense. For the first interest payment on June 30, 2020, the interest expense will be calculated using the market interest rate (6%) times the carrying amount of the bonds at the beginning of the period: 6% * $24,324,441 = $729,733. The actual cash paid for interest, calculated with the stated interest rate (5.8%) on the face value, will be $24,900,000 * 5.8% / 2 = $721,650 (interest is paid semi-annually). The difference between the interest expense and the interest paid ($8,083) is the amount of discount amortized. After recording this, the revised carrying amount of the bonds becomes $24,332,524 ($24,324,441 + $8,083). For the second payment on December 31, 2020, the same process is followed. The new interest expense will be calculated on the updated carrying amount: 6% * $24,332,524 / 2 = $730,976. The interest paid remains the same at $721,650. The additional amortization of the discount is $9,326 ($730,976 - $721,650), bringing the carrying value of the bonds on the December 31, 2020 balance sheet to $24,341,850 ($24,332,524 + $9,326).

To calculate the liability for deposits on returnable containers in Marr Co.'s balance sheet, add deposits received and subtract deposits refunded for returned containers.

To calculate the liability for deposits on returnable containers in Marr Co.'s December 31, 20X5 balance sheet, we need to consider the deposits received from deliveries and the deposits refunded for returned containers. First, we start with the balance of deposits at the beginning of the year:

20X4 deposits: $580,000

Next, we add the deposits received in 20X5:

20X5 deposits: $780,000

Then, we subtract the deposits refunded for containers returned:

20X3 deposits refunded: $90,000

20X4 deposits refunded: $250,000

20X5 deposits refunded: $286,000

Finally, we calculate the liability for deposits on returnable containers:

Liability = (20X4 deposits + 20X5 deposits) - (20X3 deposits refunded + 20X4 deposits refunded + 20X5 deposits refunded)

Liability = ($580,000 + $780,000) - ($90,000 + $250,000 + $286,000)

Liability = $1,360,000 - $626,000

Liability = $734,000

Therefore, the liability for deposits on returnable containers in Marr Co.'s December 31, 20X5 balance sheet is $734,000 (option D).

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The liability for deposits on returnable containers for Marr Co. as of December 31, 20X5 is $734,000. This is calculated by adding the deposits at the end of 20X4 to the deposits for 20X5 deliveries and subtracting the deposits for containers returned in 20X5.

To calculate the liability for deposits on returnable containers for Marr Co. on December 31, 20X5, we need to account for the deposits received and the refunds given for containers from various years. We start with the total deposits at the end of 20X4 and add the deposits for containers delivered in 20X5. From this sum, we subtract the deposits for containers returned in 20X5.

Here is the calculation:

The total liability for deposits on returnable containers as of December 31, 20X5 is:

$580,000 + $780,000 - $90,000 - $250,000 - $286,000 = $734,000

Therefore, the correct answer is Option D, $734,000.

Answer:

Punitive damages are those harms that surpass basic pay and are granted with an expectation to rebuff the respondent. The essential target of reformatory harm isn't to remunerate the oppressed party however to rebuff the gathering that hosts irritated or wronged the bothered get-together.  

Granting punitive damages for penetrate of agreement can conceivably hurt the general public. This is on the grounds that numerous penetrates of agreement can be because of conduct of the culpable party which is neither intentional nor careless. Reformatory harms should just be restricted and material to tort cases and should just be utilized to rebuff those bad behaviors that are conscious and foolish. Anyway utilizing correctional activities to rebuff somebody who has penetrated an agreement because of specific occasions or circumstances that were not in his control will be crooked and uncalled for.  

Punitive damages are semi criminal in nature and ordering and clubbing all break of agreement (despite the fact that not purposeful or not having components of dishonesty, malevolence or wanton) as semi criminal in nature will be in opposition to open arrangement and will hurt the general public.

Answer: $7,500

Explanation:

In calculating the Incremental income we will add the amount of variable Manufacturing costs Rory Company will save as well as the income they will get from selling the old machine and then subtract the cost price of the new machine.

Starting off we will calculate the amount of savings they will make by using the new machine,

= $12,000 x 5 years

= $60,000

Calculating the Incremental income therefore we have,

= 60,000 + 60,000(from selling old machine) - 112,500 (cost of new machine)

= $7,500

The incremental income of buying the new machine is $7,500.

If you need any clarification do comment.

The incremental income is $7,500.

The incremental income can be calculated by comparing the costs and savings associated with the old machine and the new machine.

First, calculate the net cost of the new machine:

Net cost of new machine: $112,500 - $60,000 = $52,500

Next, calculate the total variable manufacturing cost savings over the five-year useful life:

Total variable manufacturing cost savings: $12,000 x 5 = $60,000

Finally, calculate the incremental income:

Incremental income = $60,000 - $52,500 = $7,500

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Answer:

Renting a crane + Maintenance = $330,000

Rent duration. = 5 years

Percentage. = 8%

330,000/ 100 x 8/ 1 x 5

= $132,000

Sold Crane 21% of initial cost

Initial cost =

330,000 x 100 x 21/1

330 x 21

= $6,930 + $132,000

To purchase the crane he pays

=$138,930

Answer:

As a person I will give some time to that organization for pay the instalment, on the grounds that such huge numbers of individuals legitimately or by implication associated with that organization.  

According to financial perspective additionally I should give some an opportunity to re pay the instalment. Turned out to be presently a days joblessness is one significant issue. Also this kind of organizations will help to nation to improve economy by spreading business in different nations. What's more, this organization additionally help to diminish the portion of outside organizations in own nation.  

We realize that step by step the interest of non-traditional energies is expanding. Among all the non-customary energies sun based vitality assumes a significant job. Presently a days government additionally begins to offer dies down to this sorts of organizations to stop the cheapening of natural conditions by the utilization of ordinary vitality sources.

The decision to trigger the acceleration clause against Westwood Solar must balance the company's history of regular payments and the prospect of improved sales due to the proposed tax breaks with the bank's financial interests.

The question involves evaluating whether to exercise the acceleration clause against Westwood Solar that has recently slipped into financial distress. Considering the potential impact of the new state bill that could provide tax breaks and boost solar panel sales, the decision to demand immediate payment must be weighed against the company's past record of consistent payments and the prospects of recovery with the pending legislation. An acceleration clause allows a bank to demand all payments if the borrower fails to make an installment, similar to the way credit card companies cover losses from delinquent payments. However, enforcing such a clause should be a measured decision.

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Answer:

The account and amount(s) related to Kennedy Co.'s pension plan that will be reported on the company’s statement of financial position are pension liability and $90,00 respectively.

Explanation:

The difference between defined benefit obligation and fair value of plan assets is recorded on a balance sheet.

Defined benefit obligation is $335,000 which is higher than the fair value of plan assets of $245,000. Hence, the net result is pension liability.

Pension liability = defined benefit obligation - fair value of plan assets = $335,000 - $245,000 = $90,000.

The account and amount(s) related to Kennedy Co.'s pension plan that will be reported on the company’s statement of financial position are pension liability and $90,00 respectively.

Actuarial gain is part of pension expense. Vested benefits amount is recorded in the notes to account.

On Kennedy Co.

statement of financial position, the pension plan will report a pension liability of $90,000. This is calculated by subtracting the fair value of the pension plan assets ($245,000) from the defined benefit obligation ($335,000). The vested benefit amount and actuarial gain are relevant for disclosure but do not affect the balance on the statement of financial position.

In accounting for pension plans, companies must recognize the over- or underfunding of their plans. The defined benefit obligation reflects the present value of estimated future payments to employees, and plan assets represent the value of funds available to make these payments. When the obligation exceeds the assets, as in Kennedy Co.

's case, a pension liability is recognized. Actuarial gains and losses represent changes in pension costs due to differences in actual plan results against expectations. While such gains and losses are essential for pension accounting, they do not directly change the reported amounts on the statement of financial position, though they may be recognized in other comprehensive income and affect the pension liability in the future. The vested benefits value indicates the amount that is guaranteed to employees at that point in time, irrespective of their continued employment, and serves as important additional information for the financial statements.

Answer:

3.72 years

Explanation:

The cash payback period of this investment is the initial investment of $142,104 divided by net increase in cash in cash flow per period.

Cash Payback Period = Initial Investment /Net increase Cash Flow per Period

Net increase in cash flow per period=$80,000-$41,800=$38,200

Cash payback period=$142,104/$38,200=3.72 years

It would take 3  years 9 months(0.72*12 months) for the project to pay back its initial investment of $142,104

Answer:

Possible options:

A. 3.33

B. 1.67

C. 0.83

D. 2.50

E. none of the above

Answer is C. 0.83

Explanation:

Cpk is used here since the process mean isn't centered in the specification interval.

The concert promoters can earn an additional $100,000 by charging each type of fan their willingness to pay instead of a flat price of $50 per ticket.

To calculate the additional profit from charging each type of fan their willingness to pay compared to a flat price of $50 per ticket, we first consider the revenue from each pricing strategy. If die-hard fans are charged $150 and casual fans are charged $50, and assuming all tickets are sold, the total revenue would be (1,000 die-hard fans times $150) + (500 casual fans times $50) = $150,000 + $25,000 = $175,000. The cost of putting on the concert is $50,000, so the profit under this differential pricing strategy would be $175,000 - $50,000 = $125,000.

Under a flat pricing strategy where every ticket is sold for $50, with all 1,500 seats sold, the revenue would be (1,500 tickets times $50) = $75,000. The profit would then be $75,000 - $50,000 = $25,000. Therefore, the additional profit from charging each customer their willingness to pay is $125,000 - $25,000 = $100,000.

Answer:

a.

Cash                                                        $21080 Dr

Accumulated Depreciation-Machine    $24080 Dr

                 Gain on Disposal                            $2160 Cr

                 Machine account                            $43000 Cr

b.

Cash                                                          $11080 Dr

Accumulated Depreciation-Machine      $24080 Dr

Loss on Disposal                                      $7840 Dr

                 Machine account                           $43000 Cr

Explanation:

The asset is being sold off by the company which will cause the business to write off the asset from the books and credit it. The accumulated depreciation is a contra asset account and it will be debited to close this account.

The carrying value of the asset = Cost - Accumulated Depreciation

Carrying value = 43000 - 24080 = $18920

If the sales proceeds is more than the carrying value there is a gain on disposal and vice versa.

a.

Gain/loss on disposal = 21080 - 18920 = $2160 gain

b.

Gain/loss on disposal = 11080 - 18920 = -$7840 loss

To record the sale of a machine, Bridgeport Company would create journal entries based on whether there is a gain or loss on the sale, compared to the machine's book value. For a sale of $21,080, a gain is recognized, and for a sale of $11,080, a loss is recognized.

The sale of an asset, such as a factory machine, requires the company to record the transaction in their accounts. In this case, Bridgeport Company needs to record the sale of a machine that cost $43,000 with accumulated depreciation of $24,080.

Scenario A: Selling the Machine for $21,080 cash

First, we calculate the book value of the machine which is the original cost ($43,000) minus the accumulated depreciation ($24,080), resulting in $18,920. When the machine is sold for $21,080 cash, which is more than the book value, a gain on sale must be recorded for the difference ($21,080 - $18,920 = $2,160).

Accounting entry:

Debit Cash $21,080

Debit Accumulated Depreciation $24,080

Credit Machine $43,000

Credit Gain on Sale of Machine $2,160

Scenario B: Selling the Machine for $11,080 cash

With the same book value of $18,920, if the machine is sold for $11,080 cash, a loss must be recorded since the sale price is less than the book value ($18,920 - $11,080 = $7,840).

Accounting entry:

Debit Cash $11,080

Debit Accumulated Depreciation $24,080

Debit Loss on Sale of Machine $7,840

Credit Machine $43,000

Answer:

a. Linda's accuracy-related penalty for negligence is $ 800.

b. The total amount of Linda's fraud penalty is $3000.

Explanation:

a. Penalty for the negligence of Linda

= $4,000*20%

= $800

Therefore, Linda's accuracy-related penalty for negligence is $ 800.

b.  Penalty for fraud of Linda

= $4000*75%  

= $3000

Therefore, The total amount of Linda's fraud penalty is $3000.

Answer:

The method used to recover costs of investment in natural resources like oil refinery, mining, timber forest is referred to as depletion.

a)  

                                       Year 1             Year 2         Year 3

Tons extracted                  2,000               7,200            2,800

Depletion rate                 $62.50             $62.50          $62.50  

Cost depletion expense  $125,000       $450,000         $175,000

Note: the extract tons of coal from the deposit is limited to 12,000. So, 1,000 tons extract is deducted in the last year.

b.

Percentage depletion: This is a method of computing depletion amount based on percentage depletion rates. Percentage depletion is computed by multiplying the gross income obtained from extraction with fixed percentage depletion rates.

Calculate LC’s percentage depletion for each year.

[Find the figure in the attachment]

Note: The percentage depletion is not limited to the basis in the property.

c.

Compute LC’s actual depletion expense for each year.

[Find the figure in the attachment]

Answer:

$162,000

Explanation:

As we know that

Cost of goods manufactured = Opening work in process inventory + Total Manufacturing cost - ending work in process inventory

$960,000 = $206,000 + $916,000 - ending work in process inventory

$960,000 = $1,122,000- ending work in process

So the ending work in process inventory is

= $1,122,000 - $960,000

= $162,000

We simply applied the above formula

The ending work in process inventory for Crane Company for the current year is -$186,000.

To find the ending work in process inventory for Crane Company, we need to use certain data provided and apply the formula: Beginning work in process inventory + Total manufacturing costs - Cost of goods manufactured.

The Total manufacturing costs include: Direct materials used + Actual overhead + Applied overhead. So, Total manufacturing costs = $208,000 (Direct materials) + $176,000 (Actual overhead) + $184,000 (Applied overhead) = $568,000.

Then, we substitute these values into the formula:

Ending work in process inventory = $206,000 (Beginning work in process inventory) + $568,000 (Total manufacturing costs) - $960,000 (Cost of goods manufactured) = -$186,000.

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Answer:

13.79% and $2.10

Explanation:

Operating Profit Margin= ( Operating Profit/Sales)*100

                                       =(80,000/580,000)*100=13.79%

EPS= Net income/Shares outstanding

      =42,000/20,000=$2.10

Please note that amounts have been taken as $ in '000'

The company's operating profit margin is 13.79%, and its Earnings Per Share (EPS) is $2.10. The company's operating profit margin and EPS can be calculated using the given data.

In this case, the company's Operating Profit Margin is calculated by dividing Operating Profit (80,000 in 000s) by Net Revenues from Sales (580,000 in 000s) which gives 0.1379 or 13.79% when expressed as a percentage, indicating the correct option is 13.79%.

The company's Earnings Per Share (EPS) is calculated by dividing the Net Profit (42,000 in 000s) by the number of shares outstanding (20 million). This gives us $2.10 per share. So, the correct EPS is $2.10. Hence, the detailed calculations affirmatively answer that the company's operating profit margin and EPS were 13.79% and $2.10 respectively.

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Answer:

Requirement 1

Relating to manufacturer

Cash

Raw materials inventory

Work in process inventory

Finished goods inventory

Accounts receivable, net

Relating to merchandiser

Cash

Merchandise inventory

Accounts receivable, net

Prepaid expenses

Requirement 2

Company                                            Rayzer Skis Mfg              Sunrise Foods

Current Asset Section:

Cash                                                               11,000                                9,000

Raw materials inventory                              39,875                                 N/A

Merchandise inventory                                  N/A                                   42,875

Work in process inventory                          29,000                                 N/A

Finished goods inventory                           49,000                                 N/A

Accounts receivable, net                            56,000                              75,000

Prepaid expenses                                         4,500                                  900

Total                                                            189,375                              127,775

Explanation:

manufacturer produces goods then sells finished goods

merchandiser purchases goods for resale

The manufacturer is represented by Rayzer Skis Mfg. and the merchandiser is represented by Sunrise Foods. Rayzer Skis Mfg.'s current assets include cash, merchandise inventory, accounts receivable, and prepaid expenses. Sunrise Foods' current assets include cash, raw materials inventory, work in process inventory, finished goods inventory, accounts receivable, and prepaid expenses.

The set of numbers that relates to the manufacturer, Rayzer Skis Mfg., is as follows:

The set of numbers that relates to the merchandiser, Sunrise Foods, is as follows:

Complete question:

piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Ltd., could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: Purchase cost of the equipment $ 412,500 Annual cost savings that will be provided by the equipment $ 75,000 Life of the equipment 10 years.

a) compute the payback period for the equipment.

b)If the company requires a payback period of four years or less, woud the equipment be purchased?

Yes or No

2a)Compute the simple return rate on the equipment. Use staight-line depreciation based on the equipment's useful life.

2b) Would the equipment be purchased if the company's required rate of return is 13%?

Yes or No

Answer:

1a) 5.5 years

1b) No

2a) 9.8%

2b) No

Explanation:

Given:

•Purchase cost of equipment = $412,500

• Annual cost of savings that will be provided by the equipment = $75,000

• Life of equipment= 10 years

a) To find payback period, we use:

[tex] \frac{cost of equipment}{annual savings cost}[/tex]

= $412,500/$75,000

= 5.5 years => 5 years and 6months

b) If the company requires a payback period of four years, the equipment should not be purchased, because the required payback period (4 years), is lesser than the actual payback period(5.5 years).

2a) Annual depreciation =

Cost of equipment/months per year

= $412,500/12

= $34,375

Net income =

Annual savings cost - annual depreciation

= $75,000-$34,375 = $40,625

Simple rate of return will be:

Net income/ cost

= $40,625/$412,500

= 0.098

= 9.8%

2b) No, the equipment should not be purchased because required rate of return is higher than actual return

Final answer:

To journalize Showcase Co.'s entries, debit Accounts Receivable and credit Sales for the sale, debit Cost of Goods Sold and credit Inventory for the cost of goods sold, debit Sales Returns and Allowances and credit Accounts Receivable for the credit memo, debit Inventory and credit Cost of Goods Sold for the cost of returned merchandise, and debit Cash and credit Accounts Receivable for the receipt of the check.

Explanation:

To journalize Showcase Co.'s entries for the sale and cost of goods sold:

To journalize Showcase Co.'s entries for the credit memo and cost of returned merchandise:

To journalize Showcase Co.'s entry for the receipt of the check from Balboa Co.:

The final entry for the receipt of the check is:

[Debit]. Cash for $38,100

[Credit]. Accounts Receivable: Balboa Co. for $38,100

a. The journal entries for Showcase Co.'s sale and cost of goods sold are as follows:

 1) Sale on account:

[Debit]. Accounts Receivable: Balboa Co. for $47,600

[Credit]. Sales Revenue for $47,600

2) Cost of goods sold:

[Debit]. Cost of Goods Sold for $28,600

[Credit]. Inventory for $28,600

b. The journal entries for Showcase Co.'s credit memo and cost of the returned merchandise are as follows:

 1) Credit memo issued:

[Debit]. Sales Returns and Allowances for $9,500

[Credit]. Accounts Receivable: Balboa Co. for $9,500

2) Cost of returned merchandise:

[Debit]. Inventory for $5,700

[Credit]. Cost of Goods Sold for $5,700

c. The journal entry for the receipt of the check from Balboa Co. is as follows:

[Debit]. Cash for the amount due after adjusting for the credit memo

[Credit]. Accounts Receivable: Balboa Co. for the original invoice amount minus the credit memo amount

a. When Showcase Co. sells merchandise on account to Balboa Co., it records the sale by debiting Accounts Receivable and crediting Sales Revenue for the full amount of $47,600. Simultaneously, it records the cost of the goods sold by debiting Cost of Goods Sold and crediting Inventory for $28,600, which is the cost to Showcase Co. of the merchandise sold.

b. When merchandise is returned by Balboa Co. before payment, Showcase Co. issues a credit memo. This is recorded by debiting Sales Returns and Allowances and crediting Accounts Receivable for $9,500, which is the amount of the credit memo. The cost of the returned merchandise is then adjusted by debiting Inventory and crediting Cost of Goods Sold for $5,700, which is the cost of the merchandise that was returned.

 c. When Balboa Co. pays the amount due, Showcase Co. records the receipt of cash. The amount due is the original invoice amount minus the credit memo amount. Therefore, the entry involves debiting Cash for the net amount received and crediting Accounts Receivable for the same net amount. This reflects the reduction in the accounts receivable balance due to the credit memo and the receipt of cash.

 To calculate the net amount due from Balboa Co., we subtract the credit memo amount from the original invoice amount:

Net amount due = Original invoice amount - Credit memo amount

Net amount due = [tex]$47,600 - $9,500[/tex]

Net amount due = [tex]$38,100[/tex]

Thus, the final entry for the receipt of the check is:

[Debit]. Cash for $38,100

[Credit]. Accounts Receivable: Balboa Co. for $38,100

This completes the journal entries required for the transactions described.

Answer:

B. purchase Canadian dollar futures contracts.

Explanation:

so that here correct option is B. purchase Canadian dollar futures contracts.

Answer:

How many minutes of grinding machine time would be required to satisfy demand for all four products = 97,620 minutes.

Explanation:

The minutes of grinding machine required to satisfy demand for all four products -

Grinding time of Product A = Grinding minutes per unit of Product A * Monthly demand in units of Product A

= 5.0 * 5,200 = 26,000

Grinding time of Product B = Grinding minutes per unit of Product B * Monthly demand in units of Product B

= 6.50 * 5,200 = 33,800

Grinding time of Product C = Grinding minutes per unit of Product C * Monthly demand in units of Product C

= 5.50 * 4,200 = 23,100

Grinding time of Product D = Grinding minutes per unit of Product D * Monthly demand in units of Product D

= 4.60 * 3,200 = 14,720

The minutes of grinding machine required to satisfy demand for all four products =

= 26,000 + 33,800 + 23,100 + 14,720

= 97,620 minutes.

Answer:

a)  €152081.6128

b)  €125000

Explanation:

a) The cost of dampners in terms of then-current euros :

current cost x(1 + inflation rate)ⁿ where n is the number of years.

Since the price of dampners is expected to increase only by 4% per year from the current price of €125,000 in 5 years:

We calculate : 125000 (1+0.04)⁵ = €152081.6128

The cost of dampeners in terms of then-current euros is €152081.6128

b) The cost of dampners in terms of constant value will remain as at today's current price if the value of Euros remains constant . Therefore, The cost of dampeners in terms of constant-value euros is €125,000.

Answer:

Undisclosed principal

Explanation:

Am undisclosed principal in an agency relationship is one whose existence is not known to the third party. The third party believes they are making the transaction with the only agent involved in the transaction.

In this instance Sarah believed she was selling to Alice and was not aware Alice has a principal (Harold). In her mind she sold the land to Alice and no other person.

It was at the point where Harold said he no longer wanted the land that Alice told Sarah about him. At this point the contract between Harold and Alice had been terminated

Answer:

$6400 F

Explanation:

Note that, The Fixed expense remains constant irrespective of the no. customers served.

Therefore it is irrelevant and won't be used in the calculation of activity variance.

Again an activity variance occurs to the difference between actual level of used flexible budget and assumed in planning budget.

Therefore, calculating activity variance in the given case, it will be following:

Actual expense - Estimated Expense

= (Employee, salary and wages + Travel expenses) per customer X [Planned no. of customers served - Actual no. of customers served]

=$(1100+500) X [23-19]

=$6400 F.

Answer:

EOQ = 155 units

Explanation:

Economic order quantity is the quantity at which business incur minimum cost. This is the level of order where the holding cost equals to the ordering cost of the business.

As per given data

Annual Demand = 100 per week x 12 weeks in a year = 1,200 bolts

Ordering cost = $50

Carrying cost = $25 x 20% = $5

EOQ =  [tex]\sqrt{\frac{2 X S X D}{H} }[/tex]

EOQ = [tex]\sqrt{\frac{2 X 50 X 1,200}{5} }[/tex]

EOQ = 154.92 units = 155 units

If RBS Company’s top selling item is a Pen Set. RBS Company expects to sell 100 Pen Sets per month for the next 12 months. what will be RBS Company’s EOQ for pen set is 155

Using this formula

EOQ=√[2(Ordering costs)(Demand )] ÷Holding costs

Where:

Ordering costs=50

Demand=(100×12)=1200

Holding costs=0.20×25=5

Let plug in the formula

EOQ=√[2 x 50x 1200] ÷0.20x25

EOQ= √120,000/5

EOQ= √24,000

EOQ= 154.91

EOQ= 155 (Approximately)

Inconclusion if RBS Company’s top selling item is a Pen Set. RBS Company expects to sell 100 Pen Sets per month for the next 12 months. what will be RBS Company’s EOQ for pen set is 155.

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Answer:

Cost per​ service = $10.72

Explanation:

Total cost = Building Rent Expense ​+ Depreciation Expense on Equipment + Supplies Expense ​+ Utilities Expense = $5,200 + $1,600 + $8,000 + $​2,350 = $17,150  

Number of services provided = 1,600

Cost per​ service = Total cost ÷ Number services provided = $17,150 ÷ 1,600 = $10.72

Answer:

amount of warranty liability that should be reported at December 31, 2021 is   $3,375

Explanation:

When the Sale was made, the Warrant Liability is recorded as follows:

Warranty Cost $5,625 (Debit)

Warranty Provision $5,625 (Credit)

Warranty Cost =  750 cell phones × $75 × 10% = $5,625

When Warranty Claims were received during the year the records are as follows :

Warranty Provision $2,250 (Debit)

Cash $2,250 (Debit)

Warranty Cost = 30 × $75 = $2,250

At December 31, 2021 the amount of warranty liability should be

Warranty Provision = $5,625 - $2,250 = $3,375

Answer:

Answer is given below;

Explanation:

Distribution received from IRA     $10,000

Marginal income tax rate 22%

Income Tax $10,000*22%            $2,200

She will have to pay $2,200 as income tax on her receipt of traditional IRA distribution.There shall be no penalty as she has only made deductible contributions to IRA.

Answer:

$37,401

Explanation:

The computation of the Cash and Cash Equivalents is shown below:

= Money market fund balance  + cash in bank account + cash in petty cash fund account + U.S treasury bill account

= $2,880 + $23,331 + $290 + $10,900

= $37,401

We simply applied the above formula to determine the cash and cash equivalent

Therefore, we ignored all other information mentioned in the question

Answer: $5,219.59905

the price that the bond traded for would be closest to

$5,220 (rounded to whole number)

Explanation:

Using the price of bond formula below:

Price = C × 1 - [(1+r)^-n] /r + F/ (1+r)^n

C = coupon rate = 9.1% of face values ($5,000)

F= Face value(par value) = $5,000

n = number of years to maturity; 5

r = YTM (yield to maturity) = 8% = 0.08

Price = 455 × 1 - [(1+0.08)^-5]/0.08 + 5,000/(1+0.08)^5

Price = 455 × 1 - [(1.08)^-5]/0.08 + 5,000/(1.08)^5

Price= 455 × ( 1 - 0.680583197)/0.08 + 5,000 / 1.46932808

Price= 455 × (0.319416803)/0.08 + 3,402.91598

Price = 1,816.68307 + 3,402.91598

Price= $5,219.59905

≈$5,220 to the nearest whole number.

Answer:

only have value to the managers of companies whose costs are below the industry averages.

Explanation:

It provides help for the manager to the manage and  to control the problem of high cost in the organization. It also helps to the manager to tackle the problem of low cost.

The industry benchmarks from the Footwear Industry Report help managers evaluate if their company's costs are competitive. They provide insights for strategic planning and decision-making, particularly when considering the expansion of production capabilities. An understanding of cost components like fixed, marginal, and variable costs is essential for optimizing operations and controlling costs.

The benchmark costs provided in the Footwear Industry Report, such as industry-low, industry-average, and industry-high are crucial tools for managers. These benchmarks help managers assess the competitiveness of their company's costs in critical categories compared to their rivals. This comparison is essential for strategic decision-making especially when considering investments in facility expansions or new equipment to increase production capabilities.

Understanding the different components of costs, namely fixed cost, marginal cost, average total cost, and average variable cost, is fundamental because it provides detailed insights into the firm’s financial health and operational efficiency. Firms can have different cost structures, with some having high fixed costs and low marginal costs, while others operate under the opposite pattern. Managers can use these insights to optimize production levels and control costs effectively.

Finally, the pattern of costs can vary across industries and firms, making it vital for managers to not only rely on general measures but also to consider the unique aspects of their own firm when making decisions. A keen understanding of the cost of production is as much an art as a science and is indispensable for improving company performance in upcoming decision rounds and for financial planning.

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