Answer:
a. Total amount of depletion for 2014 - $ 29,168,862
b. Charged as expenses for minerals sold = $ 24,844,607
Explanation:
Computations
Depreciable cost
Total cost of acquisition $ 845,160
Add: Development costs of mine $ 163,880
Add: Land reusable costs $ 38,560
Total depletable costs of minerals $ 1,047,600
Estimated ore recovery 11,890,000 tons
Cost of ore per ton $ 11.35 per ton
Total amount of depletion for 2014
$ 11.35 per ton * 2,570,000 tons $ 29,168,862
Charged as expenses on ore sold
Mineral ore sold - 2,189,000
Charged as expenses
$ 11.35 per ton * 2,189,000 $ 24,844,607
Answer:
(a) Compute the total amount of depletion for 2014.
$205,600(b) Compute the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2014.
COGS = $175,120Explanation:
mine's cost:
purchase price $845,160
- land value $96,400
+ development costs $163,880
+ reparation costs $38,560
total cost = $951,200
depletion cost per ton of ore = $951,200 / 11,890,000 = $0.08 per ton
During 2014, 2,570,000 tons were extracted = 2,570,000 x $0.08 = $205,600
2,189,000 tons were sold x $0.08 = COGS = $175,120
Data pertaining to a company's joint production for the current period follows: L M Quantities produced 200 lbs. 150 lbs. Market value at split-off point $ 8 /lb. $ 16 /lb. Compute the cost to be allocated to Product M for this period's $660 of joint costs if the value basis is used. Multiple Choice $264. $396. $330. $1,364. $796.
Answer:
Joint cost value based = $396
Explanation:
Given:
Company L M
Quantities produced 200 lbs 150 lbs
Market value $8/lb $16/lb
Total joint cost = $660
Computation:
Market value of L = 200 lbs × $8/lbs
Market value of L = $1,600
Market value of M = 150 lbs × $16/lbs
Market value of M = $2,400
Total market value = Market value of L + Market value of M
Total market value = $1,600 + $2,400
Total market value = $4,000
Joint cost value based = $660 × ($2,400 / $4,000)
Joint cost value based = $396
On December 31, 2020, Lemmon Company issued 20,000 shares of its common stock with a fair value of $50 per share for all of the outstanding common shares of May Company. Stock issuance costs of $4,000 and direct costs of $1,000 were paid. In addition, Lemmon promised to pay an additional $2,200 to the former owners if May's earnings exceeded a certain amount during the next year. The fair value of the potential obligation is estimated at $2,000. Compute the investment to be recorded at date of acquisition.
Answer:
$1,002,000
Explanation:
The costs incurred on the share for share exchange include the fair value per share ,issue costs,direct cost as well as contingent consideration(consideration based on the acquired business performance.
However,the costs eligible to be recorded as investment upon acquisition are the fair value per share and the contingent obligation as shown below:
Fair value (entire shares) $50*20,000=$1,000,000
fair value of potential obligation =$2000
total value of investment $1,002,000
The issue costs and direct should be expensed immediately.
To compute the investment to be recorded at the date of acquisition, subtract the stock issuance costs and direct costs from the fair value of the shares issued and then add the fair value of the potential obligation.
Explanation:To compute the investment to be recorded at the date of acquisition, we need to consider the fair value of the shares issued and the additional potential obligation. Here are the steps:
Calculate the fair value of the shares issued: 20,000 shares * $50 per share = $1,000,000.Subtract the stock issuance costs and direct costs: $1,000,000 - $4,000 - $1,000 = $994,000.Add the fair value of the potential obligation: $994,000 + $2,000 = $996,000.Therefore, the investment to be recorded at the date of acquisition is $996,000.
Firms use four basic strategies to compete in the international environment. These are: A. an international strategy, a localization strategy, a global strategy, and a transnational strategy B. across-cultural strategy, a trade block strategy, a regional strategy, and a world strategy C. adomestic-based strategy, an international-focused strategy, a local/regional-based strategy, and a cultural-based strategy D. aninternational strategy, a regional strategy, a global strategy, and a world strategy
Answer:
The correct answer is letter "A": an international strategy, a localization strategy, a global strategy, and a transnational strategy.
Explanation:
Strategies firm use at the moment of competing at the international level are:
International strategy. This refers to offering products and services similar to what competitors may offer in a foreign country. The firm produces products with features that other companies abroad are implementing. Localization strategy. Implies looking for markets where the goods and services of a firm could be potentially purchased due to consumer patterns and needs. A global strategy. It requires a company offering a product that might be desirable anywhere around the world. It is mainly implemented in technological devices manufacturing. Transnational strategy. Involves taking products to different regions in the world and shaping the original goods according to the local expectations of the consumers.
A retail store's Sales Account totals $223,000 which includes both the sales revenue and the sales tax on the sales. If the sales tax rate is 5%, what is the amount of the sales taxes owed to the taxing agency?
Answer:
$10,619.05
Explanation:
When sales is made at a tax rate of 5%, the entries to be posted in the proportion of the transaction amount
Dr Cash/ Accounts receivable 105%
Cr Sales revenue 100%
Cr Sales tax 5%
As such, if Sales Account totals $223,000 which includes both the sales revenue and the sales tax on the sales, it means that the accounts contains 105%, as such, the sales tax which is the amount owed the taxing agency
= 5/105 * $223,000
= $10,619.05
Answer:
10619.05
Explanation:
Sales without tax x (100%+sales tax rate) = sales with sales tax
sales without tax x 1.05 (100+5%) =223000
sales without tax = 223000/1.05
sales without tax = 212380.95
sales with sales tax - sales without sales tax = sales tax
223000-212380.95=10619.05
Under IFRS, receivables are generally reported in the current assets section of the statement of financial position. cash and receivables are reported as the last items in the current assets section of the statement of financial position. bank overdrafts are generally reported as cash. All of these answer choices are correct.
Answer:
Cash and Receivables are reported as the last items in the current assets section of the statement of financial position.
Explanation:
In IFRS Cash and receivable are reported as the last items in the current assets section of the statement of financial position whereas under GAAP, these items would be reported in the order of their liquidity.
Hope this clear things up.
Thank You.
Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While departmental supervisors have been happy with the system, the factory manager has expressed considerable dissatisfaction with the information being generated by the system. A report for the company's Assembly Department for the month of March follows: Assembly Department Cost Report For the Month Ended March 31 Actual Results Planning Budget Variances Machine-hours 25,000 30,000 Variable costs: Supplies $ 7,800 $ 8,400 $ 600 F Scrap 25,200 27,000 1,800 F Indirect materials 75,800 88,500 12,700 F Fixed costs: Wages and salaries 71,500 68,000 3,500 U Equipment depreciation 98,000 98,000 – Total cost $ 278,300 $ 289,900 $ 11,600 F After receiving a copy of this cost report, the supervisor of the Assembly Department stated, "These reports are super. It makes me feel really good to see how well things are going in my department. I can’t understand why those people upstairs complain so much about the reports." For the last several years, the company’s marketing department has chronically failed to meet the sales goals expressed in the company’s monthly budgets.
Answer:
Explanation:
Solution:
1.
These reports seems not be the correct tool to calculate the performance. These reports compared to the main performance against the budgeted / planned sales level and budget or standard are not adjusted for under achievement of sales. If sales are less then variable cost should also be incurred less and its not wise to compare the main cost for lower sale volumes against budgeted expenses against higher sales revenue.
2.
The budget figure or benchmark figures for the variable expenses should be adjusted for actual level of revenue and then actual expenses incurred should be compared and variance should be calculated
3.
Revised performance report: Planning Adjusted Actual Budget budget result Variance Machine hours 40000 35000 Variable cost: 32000 28000 29700 1700 (A) Supplies scrap 20000 17500 19500 2000 (A) Indirect
Judy, looks after Kaelyn's four-year-old twins so Kaelyn can go to work (she drops off and picks up the twins from Judy's home every day). Since Judy is a relative, Kaelyn made sure, for tax purposes, to pay her mother the going rate for child care ($6,360 for the year). What is the amount of Kaelyn's child and dependent care credit if her AGI for the year was $36,60
Answer:
$1,440
Explanation:
Judy is not a dependent relative of Kaelyn, therefore the expenditures are qualified up to $6,000 (for two qualifying persons).
Thus the applicable percentage is 24%.
($6,000×24%)
=$1,440 allowable credit
Therefore the amount of Kaelyn's child and dependent care credit if her AGI for the year was $36,600 will be $1,440
Backus Inc. makes and sells many consumer products. The firm’s average contribution margin ratio is 27%. Management is considering adding a new product that will require an additional $13,000 per month of fixed expenses and will have variable expenses of $8 per unit. Required: Calculate the selling price that will be required for the new product if it is to have a contribution margin ratio equal to 27%. (Round your answer to 2 decimal places.) Calculate the number of units of the new product that would have to be sold if the new product is to increase the firm's monthly operating income by $8,100. (Do not round intermediate calculations.)
Answer:
The correct answer for option (a) is $10.96 and for option (b) is 7,128 units.
Explanation:
According to the scenario, the computation of the given data are as follows:
contribution margin ratio = 27%
Variable expense = $8 per unit
Fixed expense = $13,000
(A) We can calculate the selling price as follows:
Contribution margin ratio = 100 % - Variable expense ratio
= 27% = 100% - Variable expense ratio
= Variable expense ratio = 100% - 27% = 73%
So, Selling price = Variable expense ÷ Variable expense ratio
= $8 ÷ 73%
= $10.96
(b). Profit = $8,100
Contribution margin = Selling price - Variable expense = $10.96 - $8 = $2.96
So. we can calculate the number of units by using following formula:
Number of units required = (Fixed cost + Profit) ÷ Contribution Margin
= ( $13,000 + $8,100 ) ÷ $2.96
= $21,100 ÷ $2.96
= 7,128.38 units
In order to package one of their products, Acme Box Co. needs to construct a box whose bottom side has length 3 times its width. The material used to build the top and bottom of the box cost $10 per square foot, while the material used to build the four sides of the box cost $6 per square foot. The box must have a volume of 50 cubic feet. (a) In terms of the length ` of the bottom, the width w of the bottom and the height h of the box (all measured in feet), write a formula for the cost C (in dollars) to construct a box of length `, width w and height h. (b) Given the other conditions specified in the problem, express C as a function of a single variable. (c) Determine the dimensions of the box that minimize the cost. Be sure to justify that you have found dimensions that produce the minimum cost. (You’ll be fired if you submit the maximum cost to your boss!) To the nearest dollar, how much will it cost to build the box at these dimensions?
Answer:
(a)Total Cost, C=20LW+12LH+12WH
(b)[tex]C(W)=\dfrac{60W^3+800}{W}[/tex]
(c)W=1.88ft, L=5.64 ft and H=4.72 ft.
[tex]Minimum \:cost, C\approx \$638 $ (to the nearest dollar)$[/tex]
Explanation:
Given the dimensions of the box to be L,W and H.
(a)
The material for the top and bottom of the box cost $10 per square footThe material used to build the four sides of the box cost $6 per square foot.Area of Top and Bottom=2LWCost of Top and bottom=$10 X 2LW=20LWArea of four Sides =2(LH+WH)Cost of Four Sides =$6*2(LH+WH)=12(LH+WH)Total Cost, C=20LW+12LH+12WH(b)The bottom side has length 3 times its width.
L=3W
Volume of the box=50 cubic feet.
[tex]Volume,V=LWH=3W^2H[/tex]
[tex]3W^2H=50\\H=\dfrac{50}{3W^2}[/tex]
Substituting L=3W and [tex]H=\dfrac{50}{3W^2}[/tex] into the cost function C.
C=20LW+12LH+12WH
[tex]C=20LW+12LH+12WH\\=20*3W*W+12*3W*\dfrac{50}{3W^2}+12W*\dfrac{50}{3W^2}\\=60W^2+\dfrac{600}{W}+\dfrac{200}{W}\\=\dfrac{60W^3+600+200}{W}\\C(W)=\dfrac{60W^3+800}{W}[/tex]
(c)The minimum cost occurs at the point where the derivative of the cost function equals zero.
[tex]If\:C(W)=\dfrac{60W^3+800}{W}\\C'(W)=\dfrac{120W^3-800}{W^2}=0\\120W^3-800=0\\120W^3=800\\W^3=\frac{800}{120}\\ W=1.88[/tex]
Recall:
[tex]L=3W=5.64 feet\\H=\dfrac{50}{3W^2}=\dfrac{50}{3(1.88)^2}=4.72 ft[/tex]
The dimensions of the box that minimize the cost are W=1.88ft, L=5.64 ft and H=4.72 ft.
Cost of the box at these dimension
[tex]C(W)=\dfrac{60W^3+800}{W}\\C(1.88)=\dfrac{60(1.88)^3+800}{1.88}\approx \$638 $ (to the nearest dollar)$[/tex]
To the nearest dollar, it will cost approximately $388 to build the box with dimensions that minimize the cost.
Let's break down the problem step by step:
a) The cost C (in dollars) to construct the box can be expressed as a formula based on the dimensions of the box.
Let's denote:
- Length of the bottom = L (measured in feet)
- Width of the bottom = W (measured in feet)
- Height of the box = H (measured in feet)
The area of the top and bottom of the box is L * W, and the area of the four sides is 2 * (L + W) * H.
The total cost C can then be expressed as:
[tex]\[ C = 2 * (L * W * 10) + 2 * (L + W) * H * 6 \][/tex]
b) Expressing C as a function of a single variable involves using the given volume constraint. Since the volume V of the box is 50 cubic feet, we have:
[tex]\[ V = L * W * H = 50 \]\[ H = \frac{50}{L * W} \][/tex]
Substitute the expression for H into the cost formula:
[tex]\[ C(L, W) = 2 * (L * W * 10) + 2 * (L + W) * \frac{50}{L * W} * 6 \][/tex]
Simplify to get the cost as a function of a single variable.
c) To minimize the cost, we can take the derivative of C(L, W) with respect to one of the variables (L or W), set it equal to zero, and solve for the critical point.
Let's differentiate C(L, W) with respect to L:
[tex]\[ \frac{dC}{dL} = 20W - \frac{600}{W^2} \][/tex]
Setting the derivative equal to zero:
[tex]\[ 20W - \frac{600}{W^2} = 0 \][/tex]
Solving for W:
[tex]\[ 20W = \frac{600}{W^2} \]\[ W^3 = 30 \]\[ W = \sqrt[3]{30} \approx 3.11 \text{ feet} \][/tex]
Similarly, differentiate C(L, W) with respect to W and solve for L:
[tex]\[ \frac{dC}{dW} = 20L - \frac{600}{L^2} \]\[ 20L - \frac{600}{L^2} = 0 \]\[ L^3 = 30 \]\[ L = \sqrt[3]{30} \approx 3.11 \text{ feet} \][/tex]
So, the dimensions that minimize the cost are approximately L = W = 3.11 feet. To find the minimum cost, substitute these values into the cost formula:
[tex]\[ C(L, W) = 2 * (3.11 * 3.11 * 10) + 2 * (3.11 + 3.11) * \frac{50}{3.11 * 3.11} * 6 \]\[ C(L, W) = 192.20 + 196.23 \]\[ C(L, W) \approx 388.43 \text{ dollars} \][/tex]
Therefore, to the nearest dollar, it will cost approximately $388 to build the box with dimensions that minimize the cost.
The quantity (in pounds) of a gourmet ground coffee that is sold by a coffee company at a price of p dollars per pound is Q = f(p). (a) What is the meaning of the derivative f '(5)? The rate of change of the price per pound with respect to the quantity of coffee sold. The supply of coffee needed to be sold to charge $5 per pound. The rate of change of the quantity of coffee sold with respect to the price per pound when the price is $5 per pound. The rate of change of the price per pound with respect to the quantity of coffee sold when the price is $5 per pound. The price of the coffee as a function of the supply. What are the units of f '(5)? dollars dollars/pound pounds/(dollars/pound) pounds dollars/(pound/pound) pounds/dollar
(a) When the price is $5 per pound, the derivative f '(5) shows the rate of change in the quantity of coffee sold in relation to the price per pound.
In other words, it explains how, when the price is $5 per pound, the amount of coffee sold will alter in reaction to a little change in price.
If f '(5) is positive, then a rise in price will result in a greater sale of coffee; if it is negative, then an increase in price will result in a smaller sale of coffee.
(b) Pounds/(dollars/pound) are the units of f '(5). By dissecting the units, it can be seen that f'(5) indicates the change in quantity (in pounds) divided by the change in price (in dollars per pound).
The units are therefore pounds divided by (dollars per pound), which can be written as pounds/(dollars/pound).
Thus, this unit indicates the change in the amount of coffee sold in response to a change in the price per pound of one unit, which is precisely what the derivative measures.
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Seahorse Incorporated, which only has one product, has provided the following data concerning its most recent month of operations. Description Amount Selling Price $120 Units in beginning inventory 0 Units produced 1,900 Units sold 1,300 Units in ending inventory 600 Variable Costs Per unit Direct materials $42 Direct labor $31 Variable manufacturing overhead $11 Variable selling and administrative expense $9 Fixed Costs Per month Fixed manufacturing overhead $43,700 Fixed selling and administrative expense $35,000 Question Select Your Answer Question 1: What is the unit product cost for the month under absorption costing
Answer:
Unit product cost = $107
Explanation:
Absorption costing is a method of costing where production units and inventories are value at the full cost per unit. Here, fixed overheads are charged to all units produced using an overhead absorption rate
The full cost per unit = D.mat cost + D.labour cost + Variable overheads+ Fixed overheads
Fixed production overhead cost per unit
=Fixed manufacturing overhead/units produced
= $43,700/ 1,900 Units
=$23 per unit
Full cost per unit
= $42 + $31 + $11 + 23
= $107
Select all of the following that make this statement true: Recursive solutions _________. a. are always more efficient than iterative solutions b. can lead to stack overflow errors c. are never necessary d. rely on inheritance to work correctly e. are composed of a base case and a recursive relationship f. use constructor chaining
Answer:
b. can lead to stack overflow errors
Explanation:
Each recursive call uses some space on the stack. If your recursion is too deep, then it will result in StackOverflow, depending upon the maximum allowed depth in the stack.
When using recursion, you should be very careful and make sure that you provide a base case. A base case in recursion is the condition based on which the recursion ends, and the stack starts to unwind. This is the major reason of recursion causing StackOverflow error. If it doesn't find any base case, it will go into an infinite recursion, which will certainly result in error, as Stack is finite only.
Although Brenda previously used the US Postal Service because it offered better prices on package shipping, she now uses only FedEx, because it gives her the facility of shipping from any FedEx location 24 hours a day.
(a) Which of the following factors led to Brenda's customer switching behavior?
O inconvenience
O pricing
O response to service failure
O ethical problems
O involuntary switching
Answer:
The correct answer is letter "A": inconvenience.
Explanation:
Customer inconvenience refers to the state in which the usefulness of the good or service does not meet the customers' needs. Under this scenario, clients prefer to look for a substitute that better matches their expectations. Companies must constantly gauge consumers' perceptions through different mediums such as surveys to identify improvement areas.
Which of these statements about a business plan is true?
A. Businesses do not need to document a business plan.
B. Established businesses do not create a business plan.
C. A business plan is a business’s roadmap for the future.
D. A business plan guarantees a business’s success.
Answer:
C. A business plan is a business’s roadmap for the future
Explanation:
A business plan a is well formulated document that includes all the details about nature of the business, sales and marketing strategies, customer demographics, projected revenues of the future along with other financial projections. Business plan is often termed as a Blueprint of the Business.
No matter what the scale of a business is, it is a startup or a fortune 500 company, all of the businesses need to have a business plan to get successful. And a proper business plan and its execution which brings a business to massive heights in the first place.
Based on this discussion, we can conclude that option C is the correct answer for this question. Option D is not a correct answer because simply making a business plan does not guarantee success. There are many other factors that determine the success of a business e.g. execution of ideas, choosing the right team, getting enough finances.
Answer:
A business plan is a business’s roadmap for the future.
Explanation: It's a plan of where your organization is going and how you're getting there. The organization defines its objectives and how it is going to achieve its goals.
TB Nelson Company prepares monthly financial statements and uses the gross profit method to estimate ending inventories. Historically, the company has had a 40% gross profit rate. During June, net sales amounted to $180,000; the beginning inventory on June 1 was $54,000; and the cost of goods purchased during June amounted to $90,000. The estimated cost of TB Nelson Company's inventory on June 30 is Group of answer choices $21,600. $72,000. $126,000. $36,000.
Answer:
$36,000
Explanation:
Sales $180,000
Less:
Opening Inventory ($54,000)
Purchases ($90,000)
Closing Inventory $36,000
or
Gross Profit (180,000*40%) $72,000
Add;Opening inventory $54,000
Purchases $ 90,000
Less: Sales ($180,000)
Closing Inventory $36,000
On March 1, 2021, Beldon Corporation purchased land as a factory site for $60,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2021. Costs incurred during this period are listed below: Demolition of old building $ 4,000 Architect’s fees (for new building) 12,000 Legal fees for title investigation of land 2,000 Property taxes on land (for period beginning March 1, 2021) 3,000 Construction costs 500,000 Interest on construction loan 5,000 Salvaged materials resulting from the demolition of the old building were sold for $2,000. Required: Determine the amounts that Beldon should capitalize as the cost of the land and the new building.
Answer:
The amount that Beldon should capitalize as the cost of the land is $64,000 and as the cost of the new building is $517,000.
Explanation:
Capitalized cost of land
Purchase price $60,000
Demolition of old building $4,000
Less: Sale of materials $2,000 $2,000
Legal fees for title investigation $2,000
Total cost of land $64,000
Capitalized cost of building :
Construction costs $500,000
Architect's fees $12,000
Interest on construction loan $5,000
Total cost of building $517,000
Therefore, The amount that Beldon should capitalize as the cost of the land is $64,000 and as the cost of the new building is $517,000.
The costs capitalized for the land and new building by Beldon Corporation are $67,000 and $517,000, respectively.
Explanation:Beldon Corporation can capitalize the costs related to the purchase and preparation of land and the construction of the new building. The cost of the land includes the purchase price of $60,000, demolition costs for the existing building ($4,000), legal fees for title investigation ($2,000), and property taxes from the purchase date March 1, 2021 ($3,000). However, the $2000 from the sale of salvaged materials should be deducted from the land cost resulting in a final capitalized land cost of $67,000.
The capitalized cost of the new building includes the construction costs of $500,000, architect's fees ($12,000), and interests on the construction loan ($5,000). This results in a total capitalized building cost of $517,000.
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Ford Motor Company planned to equip its 2020 line of Explorers with Firestone tires. However, Ford conducted several crash tests prior to releasing the new line of Explorers and found that the tires increased the chances of rollovers during crashes, and in turn, the expected fatality rate. Ford’s economists determine that it would cost $600 to put new tires on each Explorer. Doing so would reduce the probability of death in a car accident by .0003. Currently, the value of life used in calculations by the court system and the government is $3 million.
a. If Ford does not put new tires on the Explorers and there is a deadly car acident, would they be negligent under the Hand rule. Why?
b. If the value of life used in calculations by the court system increased to $4 million, what is the most expensive precaution that Ford would have to take in order to not be found negligent under the Hand Rule?
Answer:pls refer to attached handwritten document
Explanation:
Quick Fix-It Corporation was organized at the beginning of this year to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following stock: Common stock, $14 par value, 99,900 shares authorized Preferred stock, $45 par value, 8 percent, 59,700 shares authorized During January and February of this year, the following stock transactions were completed: a. Sold 78,600 shares of common stock at $28 cash per share. b. Sold 21,500 shares of preferred stock at $67 cash per share. c. Bought 5,400 shares of common stock from a current stockholder for $12 cash per share. Required: Net income for the year was $91,600; cash dividends declared and paid at year-end were $31,700. Prepare the stockholders' equity section of the balance sheet at the end of the year. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Quick Fix-it corporation
Stockholders equity (extract)
Authorized:
99,000 units of common stock at $14 per unit
59,700 units of 8% preferred stock at $45 per unit
Issued:
73,200 units of common stock outstanding = $1,024,800
Premium on common stock = $1,104,000
21,500 units of 8% Preferred stock issued = $967,500
preferred stock issued above
Par = $473,000
Retained earnings = $70,700
Total stockholder Equity = $3,640,000.
Explanation:
Jan/Feb transactions:
A.
Sold 78,600 common stock for $28 (that is $14 par value and $14 premium quote)
Debit Cash Account with $2,208,000
Credit common Stock Account with $1,104,000
Credit stock holder Premium Account with $1,104,000
(Stock valuation - sales of 78,600 units)
B.
Sold 21,500 common stock for $67 (that is $45 par value and $22 premium quote)
Debit Cash with $1,440,500
Credit Preferred Stock Account with $967,500
Credit preferred stock issued above
Par Account with $473,000
(Preferred Stock valuation - sales of 21,500 units)
C.
Bought common stock of 5,400 units from a stockholder
Debit Common stock Account at Par with $75,600
Credit Cash Account with $64,800
Credit Net Income with $10,800
(Shares repurchased at a discounted price)
78,600 common stock at par = $1,104,000
Less 5,400 common stock sold = -$75,600
Outstanding 73,200 common stock = $1,024,800
Net income
Opening balance = $91,600
Less Cash dividend = -$31,700
Add profit from sale of shares = $10,800
Transferred to retained earnings = $70,700
The following information is available for Robstown Corporation for 20Y8:
Inventories January 1 December 31
Materials $77,600 $93,600
Work in process 109,000 96,700
Finished goods 112,000 109,900
December 31
Advertising expense $ 69,000
Depreciation expense-office equipment 23,000
Depreciation expense-factory equipment 14,000
Direct labor 186,700
Heat, light, and power-factory 5,900
Indirect labor 24,860
Materials purchased 123,200
Office salaries expense 75,800
Property taxes-factory 4,005
Property taxes-office building 12,600
Rent expense-factory 6,375
Sales 862,000
Sales salaries expense 135,000
Supplies-factory 3,500
Miscellaneous costs-factory 4,620
Prepare the 20Y8 statement of cost of goods manufactured.
Answer:
Cost Of Goods Manufactured 363560
Explanation:
Robstown Corporation
Statement of Cost of Goods Manufactured.
For the year 20Y8:
Inventories January 1 Materials $77,600
Add Materials purchased 123,200
Less December 31 Materials $93,600
Materials Used $ 107,200
Direct labor 186,700
Factory Overhead 57360
Indirect labor 24,860
Heat, light, and power-factory 5,900
Depreciation expense-factory equipment 14,000
Rent expense-factory 6,375
Property taxes-factory 4,005
Supplies-factory 3,500
Miscellaneous costs-factory 4,620
Total Manufacturing Costs $ 351260
Add Work in process Beginning 109,000
Cost Of Goods Available for Manufacture 460260
Less Work in process Ending 96,700
Cost Of Goods Manufactured 363560
We add the Direct Material used Direct Labor And FOH to get the total manufacturing costs.
When we add the given figures according to the format of the Cost of Goods manufactured Statement we get the cost of goods manufactured.
The cost of goods sold statement is shown to show the difference between the cost of goods manufactured and cost of goods sold statement.
Robstown Corporation
Statement of Cost of Goods Sold.
For the year 20Y8:
Cost Of Goods Manufactured 363560
Finished goods Beginning 112,000
Cost Of Goods Available for Sale 475560
Finished goods Ending 109,900
Cost Of Goods Sold 365, 660
The income statement is given to show the difference between FOH items and Selling expenses.
Robstown Corporation
Income Statement .
For the year 20Y8:
Sales 862,000
Cost Of Goods Sold 365, 660
Gross Profit 496,340
Advertising expense $ 69,000
Depreciation expense-office equipment 23,000
Office salaries expense 75,800
Property taxes-office building 12,600
Sales salaries expense 135,000
Net Income $ 180940
Final answer:
To prepare the statement of cost of goods manufactured, we calculate the total manufacturing costs, add the beginning work in process inventory, and subtract the ending work in process inventory to arrive at the cost of goods manufactured for Robstown Corporation for 20Y8, which is $368,460.
Explanation:
The calculation of the statement of cost of goods manufactured for Robstown Corporation for the year 20Y8 includes the total manufacturing costs incurred during the year plus the beginning work in process inventory and subtracting the ending work in process inventory. The total manufacturing costs for Robstown Corporation would include direct materials used, direct labor, and factory overhead. Direct materials used is calculated by adding materials purchased to the beginning inventory of materials and then subtracting the ending inventory of materials. Factory overhead includes all the other costs listed that are related to the production process but not directly tied to the production workers or the materials they use.
Statement of Cost of Goods Manufactured for Robstown Corporation
Direct Materials:Beginning Inventory: $77,600+ Materials Purchased: $123,200– Ending Inventory: $93,600= Direct Materials Used: $107,200Direct Labor: $186,700Factory Overhead:Depreciation Expense-Factory Equipment: $14,000Heat, Light, and Power-Factory: $5,900Indirect Labor: $24,860Property Taxes-Factory: $4,005Rent Expense-Factory: $6,375Supplies-Factory: $3,500Miscellaneous Costs-Factory: $4,620= Total Factory Overhead: $63,260Total Manufacturing Costs: $356,160 (Direct Materials + Direct Labor + Factory Overhead)+ Beginning Work in Process Inventory: $109,000– Ending Work in Process Inventory: $96,700= Cost of Goods Manufactured: $368,460balance sheet showed total assets of $60 million, total liabilities (including preferred stock) of $45 million, and 1,000,000 shares of common stock outstanding. Next year, Flintstone is projecting that it will have net income of $1.5 million. If the average P/E multiple in Flintstone's industry is 15, what should be the price of Flintstone's stock
Answer:
The price per share should be $22.5
Explanation:
The price earnings multiple or P/E tells us how much price the investors are willing to pay for $1 earnings of the company.
We first need to calculate the earnings per share of the company.
Earnings per share = Net Income / Number of outstanding common shares
Earnings per share = 1500000 / 1000000 = $1.5 per share
Using the P/E for the industry, the price per share of Flintstone should be,
P/E = Price per share / Earnings per share
15 = Price per share / 1.5
15 * 1.5 = Price per share
Price per Share = $22.5
Answer:
$22.5
Explanation:
Price earning ratio determines the ratio of price of a share by the earning per share . It measures the times value which a investor pays for each $1 earning of the shares.
Earning per share = Net income / Outstanding number of shares
Earning per share = $1,500,000 / 1,000,000 = $1.5 per share
As we have the PE ratio and Earning per share, we have to calculate the Market price of the stock using following formula
Price Earning Ratio = Market Price of Stock / Earning Per share
15 = Market Price / $1.5
Market Price = 15 x $1.5 = $22.50
You have an idea for a company that sources fruits from local farms and makes fresh juices on a daily basis. You want to start a subscription-based service in which households within a 100-mile radius subscribe to your plan and receive two gallons of freshly squeezed juice (for example, cherry juice, apple juice, lemonade) twice a week. As you think about starting your business, you ask yourself: How rare is the service I am offering? How valuable is it? Can I organize the company to maximize my advantages in the marketplace? After asking these questions, review and identify which question from VRIO did you forget to ask?
Answer:
VRIO = Value Rarity Imitablility Organization.
Value highlights on the source is valued or not. It reflects that the company is systematized to deed the reserve of competence. Rarity is asked in positions of how infrequent and exclusive the assets are. Imitability means that how problematic is it for participants to duplicate the resource or competence. Organization is asked in positions of how fine the assets are structured to exploit the benefits in the market.
Therefore, it is focused that the value, rarity and the organization is focused in the question but imitability isn’t focused. However, some skills or resources are too expensive to be copied by other firms
Final answer:
The unasked VRIO question is whether the service is imitable, which is crucial for assessing the competitive advantage. The success of the proposed fruit sourcing and juice production business will depend on an effective pricing strategy, managing buyer bargaining power, and efficient distribution.
Explanation:
When considering the idea for a company that sources fruits from local farms and makes fresh juices to offer as a subscription service, several key questions must be asked to determine its potential success in the marketplace. The questions posed about rarity, value, and organization relate to the VRIO framework which is vital to assess the company's competitive advantage. However, the question not asked that is essential to VRIO is, "Is the service I am offering imitable?" This reflects whether competitors can easily replicate the business model and weaken the competitive advantage.
The VRIO framework stands for Value, Rarity, Imitability, and Organization. The question on imitability examines if there are any critical resources or capabilities that the company possesses that are difficult for competitors to copy. If a service is easily imitated, it decreases the potential for sustained competitive advantage. The Wall Street Journal quote about the impact of orange prices on juice marketers can be related to the concept of supply and demand, as well as the importance of price flexibility in response to market fluctuations. This is relevant to the proposed business, emphasizing the need for a robust pricing strategy.
On January 1 you deposit 100000 On March 1, the balance is 102000 and you withdraw 50000. On May 1 the balance is 52500 and you deposit 50000. At the end of the year the balance is 111000. Find the time weighted and dollar weighted yields
Answer:
Dollar weighted yield 21.09%
Time weighted yield 11.52%
Explanation:
Dollar weigthed:
Date Capital Weight Subtotal
Jan 1st 100,000 1 100,000
March 1st -50,000 0.83 -41,666.66667
May 1st 50,000 0.67 33,333.33333
Dec 31th 91,666.66667
Average capital: 91,666.67
Return: 111,000
Rate: 111.000 / 91.667 - 1 = 0,21090
Time weighted:
102,000 / 100,000 -1 = 0.02 from Jan 1st to March 1st
Then 52,500 / 52,000 -1 = 0,0096 From March 1st to May 1st
Finally 111,000 / 102,500 -1 = 0.082926 From May 1st to Dec 31th
weighted Return:
1.02 x 1.0096 x 1.082926 - 1 = 0,115189 = 0.1152 = 11.52%
Bailey Company has $200,000 of accounts receivable on December 31. The unadjusted balance of its Allowance for Doubtful Accounts is a debit of $9,000. An aging of its accounts receivable suggests that $12,000 of its receivables will be uncollectible. The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts in the year-end adjusting entry is
a. $3,000
b. $21,000
c. $9,000
d. $14,000
e. $23,000
Answer:
b. $21,000
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.
The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts in the year-end adjusting entry is the sum of the debit balance in the Allowance for Doubtful Accounts and the amount suggested by the aging of receivables.
= $9,000 + $12,000
= $21,000
Final answer:
The correct amount to be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts for the year-end adjusting entry is $21,000. This amount corrects the previous debit balance and accounts for the current period's estimated uncollectible receivables.
Explanation:
To calculate the rightful amount to be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts, we first need to address the existing debit balance of $9,000 in the allowance account. This unusual debit balance suggests that previously, the amount of bad debts that occurred were greater than what was anticipated and provided for. Therefore, it is necessary to eliminate this debit balance and also set up the appropriate allowance for the current period's anticipated uncollectable receivables, which is estimated to be $12,000. Therefore, the adjusting entry must first remove the existing $9,000 debit balance in the Allowance for Doubtful Accounts and then add the additional $12,000 that is expected to be uncollectable, resulting in a total entry to Bad Debt Expense of $21,000 ($9,000 to cancel out the debit balance + $12,000 for current period estimation). The journal entry would look like this:
Debit Bad Debt Expense: $21,000Credit Allowance for Doubtful Accounts: $21,000This action will leave the correct credit balance in the Allowance for Doubtful Accounts and accurately reflect anticipated uncollectable accounts receivable.
AJ Manufacturing Company incurred $50,000 of fixed product cost and $40,000 of variable product cost during its first year of operation. Also during its first year, AJ incurred $16,000 of fixed and $13,000 of variable selling and administrative costs. The company sold all of the units it produced for $160,000. Required Prepare an income statement using the format required by generally accepted accounting Principles (GAAP).
Answer:
AJ Manufacturing Company
Multi-Step Income Statement
For the year ended xx xx, xxxx
Revenue
Sales $160,000
Cost of Goods Sold
Variable Product cost $40,000
Fixed Product cost $50,000
$90,000
Gross Income / Income $70,000
Less: Operating Expenses
Variable Selling & Administrative costs $13,000
Fixed Selling & Administrative costs $16,000
$29,000
Net Profit / Income $41,000
Explanation:
GAAP require two types of the income statements
Single-Step Income StatementMulti-Step Income StatementIn single step income statement all revenue are calculated and all expense are deducted from revenue to calculate net profit.
In multi-step the expenses are classified in the product / manufacturing expense and operating expenses. First manufacturing expenses are deducted from the net revenue to calculate the gross profit and then operating expense are deducted to calculate operating / net profit / income.
Tina's Apple Company would like to manufacture and market a new packaging. Tina's has sold an issue of commercial paper for $1,500,000 and maturity of 90 days to finance the new project. Compute the annual interest rate on the issue of commercial paper if the value of the commercial paper at maturity is $1,650,000 (assuming 360 days in a year).
Answer:
40%
Explanation:
Tina's Apple Company would like to manufacture and market a new packaging. Tina's has sold an issue of commercial paper for $1,500,000 and maturity of 90 days to finance the new project. Compute the annual interest rate on the issue of commercial paper if the value of the commercial paper at maturity is $1,650,000 (assuming 360 days in a year).
Interest paid = $1,650,000 - 1,500,000
= $150,000
Annual interest rate = ($150,000/$1,500,000) (360/90)
= 40%
Divine Apparel has 2,200 shares of common stock outstanding. On October 1, the company declares a $0.50 per share dividend to stockholders of record on October 15. The dividend is paid on October 31.
Required:
a. Record all transactions on the appropriate dates for cash dividends.
Answer:
October 1
Dr Dividends 1,100
Cr Dividends payable 1,100
October 15
No journal entry required 0
No journal entry required 0
October 31
Dr Dividends payable 1,100
Cr Cash 1,100
Explanation:
Divine Apparel
General Journal
October 1
Dr Dividends 1,100
Cr Dividends payable 1,100
October 15
No journal entry required 0
No journal entry required 0
October 31
Dr Dividends payable 1,100
Cr Cash 1,100
Dividends: 2,200 shares × $0.50 = $1,100
Dividends Payable: 2,200 shares × $0.50 = $1,100
CT Stores has debt with a book value of $325,000 and a market value of $319,000. The firm's equity has a book value of $526,000 and a market value of $684,000. The tax rate is 21 percent and the cost of capital is 11.2 percent. What is the market value of this firm based on MM Proposition I without taxes
Answer:
$1,003,000
Explanation:
Market Value of firm=Market value of equity+ market value of debt
=684,000+319,000
=$1,003,000
In economics, what is the meaning of the phrase 'the tragedy of the commons?' Goods that are not rivalrous but are excludable are under‐produced by private markets, often with consequences that reduce social welfare. People will overuse or misuse a common resource that is not excludable but is rivalrous. It serves the common good to produce items that are neither rivalrous nor excludable, but profit‑maximizing firms will not produce such products. In market economies products are often similar and common, so the government must actively attempt to create variety in goods and services. In decisions involving intellectual property rights, policy-makers must compromise in order to reach common ground among competing interest groups.
Answer:
People will overuse or misuse a common resource that is not excludable but is rivalrous.
Explanation:
The tragedy of the commons occurs when due to lack of regulation, either self-imposed, or imposed by a central authority, leads to the excessive use of a common good, that does not exclude users from its enjoyment, but that is rivalrous: the use of one user prevents the use of another user, and can lead to depletion.
A classical example of the tragedy of the commons is what happens with global maritime fish stocks. The global stock of fish is virtually non-excludable as long as a person or firm has the means necessary to exploit it: a ship, a net, workers, and so on.
Howerver, the global stock of fish can be depleted, as is the case in some areas of the world. This depletion prevents current and future users from catching and consuming fish.
The Tragedy of the Commons refers to the overuse or depletion of a common resource due to individuals acting in their own interest rather than the common good. However, the situation can be managed better when beneficiaries are in immediate proximity to the resource. This issue is particularly challenging at international levels where beneficiaries are scattered.
Explanation:The Tragedy of the Commons is an economic theory that describes the situation in which individuals deplete a shared resource by acting in their own best interest, contrary to the common good, leading to resource depletion. This theory is primarily associated with common goods, which are not excludable but may be finite, like forests, water, and fisheries. This is because no one owns them, no one directly bears the cost of depletion, resulting in overuse and misuse of the resources.
It is worth mentioning the work of Elinor Ostrom, the first woman to receive the Nobel Prize in Economics, who provided an alternative viewpoint to this theory. According to Ostrom, when beneficiaries of a resource are in its immediate vicinity, they are more likely to manage the resource effectively without external influence. They can develop communication and cooperation mechanisms that prevent depletion of the resource.
However, in international systems, where beneficiaries are often scattered across different territories, it's more challenging to manage these resources. The international system has difficulties in convincing individual members to take responsibility for solving collective problems, which, in turn, exacerbates the Tragedy of the Commons.
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1. Firm A is deciding whether to be levered or unlevered. The all-equity capital structure would consist of 60,000 shares of stock. The debt and equity option would consist of 45,000 shares of stock plus $250,000 of debt with an interest rate of 7.25 percent. What is the break-even level of earnings before interest and taxes between these two options? Ignore taxes. (Breakeven for EPS)
Elsa participates in an investigation into possible violations of the Civil Rights Act of 1964 at Fabrication Foundry, Inc., where she works. As a result, Elsa’s employer demotes her. Elsa can file a a. harassment complaint. b. retaliation claim. c. constructive discharge claim. d. disparate-impact discrimination clai
Answer:
The correct answer is letter "D": disparate-impact discrimination claim.
Explanation:
A disparate-impact discrimination claim is one filed because there is a presumed act of unintentional discrimination at work. This could be the result of requesting employees with certain abilities which disfavors a sector of the workforce of the firm. The company has to prove the feature requested for the job position is necessary for the regular development of the activities if such position.