Answer:
a) $180
b) $180
Explanation:
Employee Fringe Benefits is a form of payment by an employer other than money. The limit for employee fringe benefit is often decided by the IRS every year. The statutory limit for the year 2016 was $255, 2019 was $265 and the new statutory limit for the year 2020 is $270.
In the question provided, since the particular year was not stated, we will assume that the year is 2016 of which the limit for employee fringe benefit was $255.
a. The cost of transit pass qualifies as employee fringe benefit. Based on 2016 statutory limits, LaMont excludes $255.
Therefore his amount of transit pass benefit to be included in gross income
= ($270 - $255)×12
= $180
b. The cost of parking benefits qualifies as employee fringe benefit. Based on 2016 statutory limits, LaMont excludes $255.
Therefore his amount of parking benefit to be included in gross income
= ($270 - $255)×12
= $180
LaMont must include $3,240 in his gross income each year for both the transit pass benefit and the parking benefit.
Explanation:a. To calculate the total amount of the transit pass benefit that LaMont must include in his gross income each year, we need to multiply the monthly value of the pass ($270) by the number of months in a year (12 months). Therefore, LaMont must include a total of $3,240 ($270 x 12) in his gross income each year.
b. For the parking benefit, the calculation is the same. Since the company provides LaMont with $270 per month in parking benefits, he must include a total of $3,240 ($270 x 12) in his gross income each year for the parking benefit.
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A company has already incurred $5,600 of costs in producing 6,050 units of Product XY. Product XY can be sold as is for $27 per unit. Instead, the company could incur further processing costs of $11 per unit and sell the resulting product for $31 per unit. Should the company sell Product XY as is or process it further? (Any loss amount should be indicated with minus sign.)
Answer:
The company should sell product XY
Explanation:
The computation of given question is shown below:-
Particulars Sell as is Process Further Incremental Amount
Selling Price
Per unit $27 $31 -$4
Additional processing
Cost per unit $11 $11
Total $27 $20 -$7
Therefore, as we can see that the negative amount came so we sell and if we proceed the company will go to the loss.
Thomas purchased 200 shares of stock A for $23 a share and sold them more than a year later for $ 19 per share. Be purchased 600 shares of stock B for $41 per share and sold them for $57 per share after holding them for more than a year. Both of the sales were in the same year. If Thomas is in a 35% tax bracket, what will his capital gains tax be for the year
Answer:
Capital gain tax = $1,540.
Explanation:
As per the data given in the question,
For stocks of A
Profit = (selling price - purchasing price) × units
= ($19 - $23) × 200
= -$800
For stocks of B
Profit = ($57-$41) × 600
= $9,600
Total profit = profit for stock A + profit for stock B
= -$800 + $9,600
= $8,800
Therefore, capital gain for both year = $8,800
Tax rate = 35%
Capital gain tax = Capital gain × Tax rate
= $8,800 × 35%
=$3,080
As share holds for more than a year,
So, Capital gain tax = $3,080 ÷ 2 = $1,540.
On March 31, the end of the first year of operations, Barnard Inc., manufactured 4,300 units and sold 3,700 units. The following income statement was prepared, based on the variable costing concept: Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 20Y1 Sales $888,000 Variable cost of goods sold: Variable cost of goods manufactured $494,500 Inventory, March 31 (69,000) Total variable cost of goods sold (425,500) Manufacturing margin $462,500 Total variable selling and administrative expenses (107,300) Contribution margin $355,200 Fixed costs: Fixed manufacturing costs $227,900 Fixed selling and administrative expenses 70,300 Total fixed costs (298,200) Operating income $57,000 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. Variable costing $ Absorption costing $
Answer:
Cost of Goods Manufactured = $115 per unit
Fixed Manufacturing Overhead = $53 per unit
Absorption product cost per unit = $168
Explanation:
given data
manufactured = 4,300 units
Variable Costing = $494,500
Fixed manufacturing costs = $227,900
solution
so here we get Cost of Goods Manufactured per unit that is
Cost of Goods Manufactured = $494,500 ÷ 4,300
Cost of Goods Manufactured = $115 per unit
and
now we get Fixed Manufacturing Overhead Per Unit will be
Fixed Manufacturing Overhead = $227,900 ÷ 4,300
Fixed Manufacturing Overhead = $53 per unit
and
now we get Variable Product cost Per Unit that is
Variable Product cost = Cost of Goods Manufactured per Unit = $115
so
Absorption product cost per unit = $115 + $53
Absorption product cost per unit = $168
The unit cost of goods manufactured based on the variable costing concept is $115 per unit, and based on the absorption costing concept, it is $168 per unit for Barnard Inc.
To determine the unit cost of goods manufactured for Barnard Inc., based on the variable costing concept, we divide the total variable cost of goods manufactured by the number of units manufactured. For the absorption costing method, we add fixed manufacturing costs to the variable costs before dividing by the number of units manufactured.
Applying this to Barnard Inc.:
Variable Costing Unit Cost:Consider two firms facing the demand curve P = 50 - 5Q, where Q = Q1 + Q2. The firms’ cost functions are C1(Q1) = 20 + 10Q1 and C2(Q2) = 10 + 12Q2.
a. Suppose both firms have entered the industry. What is the joint profit-maximizing level of output? How much will each firm produce? How would your answer change if the firms have not yet entered the industry?
b. What is each firm’s equilibrium output and profit if they behave noncooperatively? Use the Cournot model. Draw the firms’ best-responses (reaction curves) and show the equilibrium
The joint profit-maximizing level of output is where marginal cost equals marginal revenue. In the Cournot model, equilibrium output and profit are determined by the intersection of the firms' reaction functions. If the firms have not yet entered the industry, there would be no output or profit.
Explanation:The joint profit-maximizing level of output for the two firms occurs when they collectively produce at a level where marginal cost equals marginal revenue. To find this, we need to first find the marginal revenue (MR) curve from the demand curve, and then set each firm's marginal cost (MC) equal to MR to solve for the profit-maximizing quantities Q1 and Q2.
For the Cournot model, each firm's equilibrium output and profit are found by setting their respective reaction function equal to the other firm's output level and then solving iteratively until an equilibrium is reached.
To depict this graphically, the firms' reaction functions are plotted on a two-dimensional plane, with each firm's output level on one axis. The equilibrium point is where the two reaction curves intersect.
If the firms have not yet entered the industry, there would be no output and hence no profit. Their decision to enter the industry would depend on the expected profits after entry, taking into consideration the costs of entry and exit.
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In joint profit-maximizing behavior, each firm produces 5 units, leading to a total output of 10. In the Cournot model where firms behave non-cooperatively, the firms' total output is 7.8 units with individual productions of 4 and 3.8 units respectively.
To address the question, we analyze both cooperative and non-cooperative behaviors of the two firms in the given market.
a. Joint Profit-Maximizing Level of Output
The market demand curve is given by P = 50 - 5Q. The total quantity produced by both firms is Q = Q1 + Q2. Firms share profits and costs, so their total cost is the sum of individual costs: C(Q) = C1(Q1) + C2(Q2) = (20 + 10Q1) + (10 + 12Q2).
Total Revenue (TR) = P * Q = (50 - 5Q) * Q = 50Q - 5Q^2
Total Cost (TC) = 20 + 10Q1 + 10 + 12Q2 = 30 + 10Q1 + 12Q2
To find the profit-maximizing output, we calculate Total Profit (π)
π = TR - TC = 50Q - 5Q^2 - 30 - 10Q1 - 12Q2
Differentiate π with respect to Q1 and Q2 and set to zero:
dπ/dQ1 = 50 - 10Q - 10 = 0
dπ/dQ2 = 50 - 10Q - 12 = 0
Solving these, we get equilibrium outputs: Q1 = Q2 = 5
Total output: Q = Q1+Q2 = 10
b. Non-Cooperative Behavior: Cournot Model
Assuming firms behave non-cooperatively, we use the Cournot model to find each firm’s reaction functions.
The reaction functions are derived from each firm's maximization problem:
Firm 1’s problem: Max π1 = (50 - 5(Q1 + Q2))Q1 - 20 - 10Q1
Firm 2’s problem: Max π2 = (50 - 5(Q1 + Q2))Q2 - 10 - 12Q2
Differentiating and equating to zero:
Firm 1: dπ1/dQ1 = 50 - 10Q1 - 5Q2 - 10 = 0 → Q1 = (40 - 5Q2) / 10
Firm 2: dπ2/dQ2 = 50 - 5Q1 - 5Q2 - 12 = 0 → Q2 = (38 - 5Q1) / 10
Solving these reaction functions simultaneously gives equilibrium outputs: Q1 = 4, Q2 = 3.8
Total output: Q = Q1 + Q2 = 7.8
Conclusion
In a joint profit-maximizing scenario, each firm produces 5 units, leading to a total output of 10 units. In non-cooperative Cournot equilibrium, the firms' total output is 7.8 units with individual productions of 4 and 3.8 units respectively.
Question Help Lariat Lariat Co. budgets production of 120 comma 000 120,000 units in the next year. Lariat Lariat's CFO expects that each unit will take 14 14 hours to produce at an hourly wage rate of $ 8 $8 per hour. If factory overhead is applied to direct labor hours at $ 9 $9 per hour, the budget for factory overhead will total: A. $ 13 comma 440 comma 000 $13,440,000 B. $ 15 comma 120 comma 000 $15,120,000 C. $ 8 comma 640 comma 000 $8,640,000 D. $ 28 comma 560 comma 000 $28,560,000
Answer:
B. $ 15 comma 120 comma 000 $15,120,000
Explanation:
The computation of the factory overhead is shown below:
= Number of production units in the next year × required number of hours to produced × factory overhead rate per hours
= 120,000 units × 14 hours × $9 per hour
= $15,120,000
By multiplying the number of units produced with the required number of hours and factory overhead rate per hour we can get the factory overhead amount
Considering that Holmes and Balwani are the only ones charged by the SEC and the only ones facing criminal charges, what, if any, moral responsibility should be placed on the board of directors, investors, and employees? In other words, should those that enabled Holmes to continue to lie also be held accountable for their actions? Why or why not? Be sure to include moral argumentation to support your position.
Answer:
Explanation:
The investors, board of directors and employees for Theranos are not likely to have been completely free of fault in the more than a decade long fraud. The press has called the firm 'secretive' as it struggled to find any pertinent information about the it due to their closely guarded secrets. The firm operated a website that didn't have much on it and seemed to gag its directors, investors and others from talking to the press. These alone should have been a red flag to the investors and board. The PR person also refused interviews, neglected to answer questions about the owners/founders and turned down multiple overtures by the press to try and find out what was going on behind closed doors at Theranos. This encouraged the general perception that the firm was trying to control and minimise risk and possibly to retain an air of mystery. All of which was actually designed to hide the true workings of the firm, and this should have been questioned by all the people involved in the firm.
(Leuty, 2013)
The board as illustrious as theirs would have asked for supporting documentation and reviews for all the key aspects of the company and these would have needed to be audited periodically to ensure that the board can choose the best people in key roles and to enable good decision-making.
Investors also would have done a background check on all material aspects such as legal, ethical etc. before handing over large sums of money.
Employees involved in the actual fraud - falsifying results, using other tools to get the results that their tools were supposed to generate etc. were also aware of the issues with the firm likely from the very beginning.
All three groups possibly knew some or all of the aspects of the fraud and yet they did not come forward to disclose the same to the authorities or their customers as they should have. This points to a serious moral lapse amongst all three groups. They each as a group and as individuals in that group needed to take moral responsibility for the fraudulent activities being perpetrated by the couple. As the law goes, the prime players only end up being held accountable however it would have been ethically right for all parties that knew of the fraud to come forward and expose it.
Leaving aside the monetary considerations such as fleecing investors and customers alike, the products were related to the medical field, which above all others has a responsibility to maintain a higher standard of ethics. This fraud caused countless incorrect results that would have been used in medical therapies and diagnoses leading to wrong medication allocations and patient treatments. This in turn would have led to pain and anguish of the physical kind for so many patients, all of whom are the silent sufferers in this fraud.
Legally, pain and suffering cannot be quantified (just estimated) while this is the primary damage that the couple should have actually been charged with. This extremity of damage cannot be adequately presented in a court of law however and that brings us to discussing the morality of the situation. For all of the reasons stated above, the couple and everyone involved in enabling them in the fraud - the board of directors, employees and investors, should definitely be held accountable, if not in a court of law, then at least in the court of public opinion so that fraudsters like them do not get away without paying a price for their actions. All actions have consequences and their actions or lack there of should be accounted for.
References :
Leuty, Ron (2013) Secretive Theranos emerging (partly) from shadows. San Francisco Business Times.
The moral responsibility of the board of directors, investors, and employees within a corporation extends beyond legal liability to encompass a broad ethical obligation to prevent harm and foster an ethical corporate culture. This includes diligent oversight, immediate investigation of unethical behavior, and a commitment to ethical decision-making at all levels.
The question of moral responsibility within a corporation, particularly in light of the charges against Holmes and Balwani, delves into the broader ethical considerations of how those in various positions of power and influence within a company--from the board of directors to investors and employees--contribute to or enable unethical behavior. The principle of vicarious liability highlights the idea that organizations, and by extension the individuals who act on their behalf, can be held accountable for actions taken within the scope of their employment or association. This extends beyond legal liability to encompass moral responsibility as well.
Board members, as stewards of corporate governance, possess a distinct moral and ethical duty to safeguard the interests of shareholders, employees, and other stakeholders. The realization or suspicion of unethical behavior should prompt immediate and thorough investigation, as well as corrective action, to prevent further harm. For instance, the board of directors at companies like WorldCom were critiqued for their failure to detect and address egregious accounting irregularities, indicating a neglect of their oversight responsibilities.
Investors and employees, while perhaps less directly involved in governance, still share a moral responsibility when it comes to raising concerns about unethical practices they observe or become aware of. Their actions or inactions contribute to the cultural and ethical fabric of an organization. Consequently, in a climate where ethical considerations are often secondary to legal technicalities, all parties within a corporation should engage in constant self-reflection and evaluation of their actions, striving towards an ethical climate that goes beyond mere compliance with the law.
Your uncle is about to retire, and he wants to buy an annuity that will provide him with $75,000 of income a year for 20 years, with the first payment coming immediately at the beginning of the month. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today? Round to the nearest dollar.
Answer:
It cost $915,166.69
Explanation:
R=75,000
i=j/m, j=0.0525, m=1 - annually
i=0.0525
n=mt
n=20
An=R[1-(1+i)^-n] : i
An=(75,000x[1-(1+0.0525)^-20]) : 0.0525
An=$ 915,166.69
Waterway uses LIFO inventory costing. At January 1, 2020, inventory was $277,680 at both cost and market value. At December 31, 2020, the inventory was $353,340 at cost and $332,280 at market value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method and (b) loss method
Answer:
a)
Dr Cost of Goods Sold $21,060
Cr Allowance to Reduce Inventory to Market
$21,060
b)
Dr Loss Due to Market Decline of Inventory $21,060
Cr Allowance to Reduce Inventory to Market $21,060
Explanation:
Waterway uses LIFO inventory costing as at January 1, 2020
a)
Dr Cost of Goods Sold $21,060
Cr Allowance to Reduce Inventory to Market
$21,060
($353,340 – $332,280)
b)
Dr Loss Due to Market Decline of Inventory $21,060
Cr Allowance to Reduce Inventory to Market $21,060
Final answer:
The necessary December 31 entries for the student's LIFO inventory scenario would adjust the inventory value down using the cost-of-goods-sold method and the loss method, because market value is less than the cost.
Explanation:
The student is asking how to make a journal entry for inventory at the year end using two different methods assuming the company uses the LIFO (Last-In, First-Out) inventory costing method. For the cost-of-goods-sold method, if the market value of the inventory is lower than its cost, we create a journal entry that debits Cost of Goods Sold and credits Inventory for the difference to bring down the reported value of inventory to market value. Under the loss method, the entry would involve debiting a Loss account and crediting Inventory to reflect the diminished market value.
If the cost at the end of the year is $353,340 and the market value is $332,280, these entries will adjust the inventory value downward by $21,060 (the difference between cost and market value).
Journal Entries:
Cost-of-Goods-Sold Method: Debit Cost of Goods Sold $21,060; Credit Inventory $21,060.
Loss Method: Debit Loss due to Market Decline of Inventory $21,060; Credit Inventory $21,060.
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows:
Standard Quantity
or Hours Standard Price
or Rate Standard Cost
Direct materials 2.50 ounces $ 22.00 per ounce $ 55.00
Direct labor 0.90 hours $ 16.00 per hour 14.40
Variable manufacturing overhead 0.90 hours $ 2.00 per hour 1.80
Total standard cost per unit $ 71.20
During November, the following activity was recorded related to the production of Fludex:
Materials purchased, 14,000 ounces at a cost of $289,800.
There was no beginning inventory of materials; however, at the end of the month, 4,050 ounces of material remained in ending inventory.
The company employs 26 lab technicians to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $15.00 per hour.
Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $5,000.
During November, the company produced 3,900 units of Fludex.
Required:
1. For direct materials:
a. Compute the price and quantity variances.
b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract?
2. For direct labor:
a. Compute the rate and efficiency variances.
b. In the past, the 26 technicians employed in the production of Fludex consisted of 6 senior technicians and 20 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued?
3. Compute the variable overhead rate and efficiency variances.
This detailed answer provides calculations for materials, labor, and variable overhead variances along with recommendations based on the results.
1. For direct materials:
a. The total materials price variance is $700 U and the total materials quantity variance is $3,450 F.b. Considering the variances, the company should analyze the quality of materials provided by the new supplier before signing a long-term contract.2. For direct labor:
a. The total labor rate variance is $360 U and the total labor efficiency variance is $780 F.b. The company should carefully evaluate the impact of changing the labor mix to decide if it should continue.3. Variable overhead:
The total variable overhead rate variance is $800 F, and the total variable overhead efficiency variance is $300 U.
Dome Metals has credit sales of $270,000 yearly with credit terms of net 90 days, which is also the average collection period. Assume the firm adopts new credit terms of 2/15, net 90 and all customers pay on the last day of the discount period. Any reduction in accounts receivable will be used to reduce the firm's bank loan which costs 12 percent. The new credit terms will increase sales by 20% because the 2% discount will make the firm's price competitive.
a. If Dome earns 15 percent on sales before discounts, what will be the net change in income if the new credit terms are adopted? (Use a 360-day year.)
Answer:
Net change in income = $8,100
Explanation:
Given:
Current credit sales= $270,000 per year.
Average collection period= 90 days
A 2/15, net 90 means a 20℅ discount if payment is made within 15 days.
Which means new credit terms increase will be
(90/15) * 20℅ = 120℅
We now find the following:
•Revised sales will be = (current sales * new credit terms increase)
= $270,000 * 120℅ = $324,000
•Increase in sales = ( new sales - current sales)
=$324,000 - $270,000 = $54,000
•Profit increase = (profit percent * Increase in sales)
= 15℅ * $54,000 = $8,100
• Average receivable under existing policy =
= $270,000 * (90/360) = $67,500
• Average under new policy =
$325,000 * (15/360) = $13,500
• Receivable reduction= $67,500 - $13,500 = $54,000
• Interest savings
= $54,000 * 12℅ = $6,480
• Cost of discount =
$324,000 * 2℅ = $6,480
Therefore the net change in income if new credit terms are adopted will be = (increase in profit + interest savings - cost of discount)
= $8,100+$6,480-$6,480
= $8,100
The net increase in income, if the new credit terms are adopted, would be $69,120. This is computed by calculating the net income after discounts and then adding the interest saved due to a reduced bank loan.
Explanation:The first thing to note is that the new credit terms increase sales by 20%. Thus, credit sales increase to $270,000 * 1.20 = $324,000. The gross income from the sales is then $324,000 * 15% = $48,600.
Next, we calculate the cost of the discount. All customers are taking the discount, so we know that 2% of total credit sales will be deducted. This is $324,000 * 2% = $6,480.
Subtracting the discount cost from the gross income gives us the net earnings after discounts of $48,600 - $6,480 = $42,120.
Finally, we calculate the savings from repaying part of the bank loan with the reduction in accounts receivable. The total amount that is freed up by the shorter average collection period is $270,000 / 90 days * (90 - 15) days = $225,000. The firm is saving $225,000 * 12% = $27,000 on loan interest.
Adding the savings from interest reduction to the net income, we have $42,120 + $27,000 = $69,120. This will be the net change in income if the new credit terms are adopted.
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How does the level of risk affect an asset's desirability? A. They are directly related - the higher the level of risk, all else equal, the more attractive the asset. B. They are inversely related - the higher the level of risk, all else equal, the less attractive the asset. C. They are unrelated - an asset's level of risk is unrelated to its desirability.
Answer:
The correct t answer is A. They are directly related - the higher the level of risk, all else equal, the more attractive the asset.
Explanation:
When the risk associated aged with an asset is high, usually the reward derived from.such an asset tends to be higher as well. This make the asset more attractive and desirable.
Doyle Company issued $381,000 of 10-year, 7 percent bonds on January 1, Year 1. The bonds were issued at face value. Interest is payable in cash on December 31 of each year. Doyle immediately invested the proceeds from the bond issue in land. The land was leased for an annual $73,500 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1. Required a. Prepare the journal entries for these events, and post them to T-accounts for Year 1 and Year 2.
Answer:
Year 1:
Issue of bonds:
Dr Cash $381,000
Cr Bonds payable $381,000
Purchase of land:
Dr Land $381,000
Cr Cash $381,000
Receipt of lease rental:
Dr Cash $73,500
Cr Lease revenue $73,500
Payment of coupon interest:
Dr interest expense $26,670
Cr Cash $26,670
Year 2
Receipt of lease rental:
Dr Cash $73,500
Cr Lease revenue $73,500
Payment of coupon interest:
Dr interest expense $26,670
Cr Cash $26,670
Find attached t accounts.
Explanation:
Upon the issue of bonds for $381,000 the cash account would be debited with $381,000 while bonds payable account is credited with $381,000.
However,when the cash proceeds is invested in land,the land account would be debited with $381,000,while the cash account is credited with $381,000.
Besides,on receipt of annual lease rental the cash account is debited with $73,500 while the lease revenue is credited with $73,500.
The coupon interest is $381,000*7%=$26670
This would necessitate debiting interest expense with $26,670 while cash is credited with same amount.
The average cost of a 4-year college education is projected to be $130,000 in 19 years. How much money should be invested now at 6.5%, compounded quarterly, to provide $130,000 in 19 years
Answer:
$39, 292
Explanation:
The applicable formula to calculate the present value of a projected future value is
PV = FV
(1+r)n
In this case
FV = $130,000
r =6.5 % 0r 0.065
n=19
PV = 130,000
(1 +0.065)19
PV = 130,000/3.30858
PV = $39, 292
Final answer:
To accumulate $130,000 in 19 years with an interest rate of 6.5% compounded quarterly, one needs to invest approximately $38,281.87 now.
Explanation:
To calculate how much money should be invested now at a 6.5% interest rate, compounded quarterly, to reach $130,000 in 19 years, we use the future value formula for compound interest:
Future Value (FV) = Present Value (PV) * (1 + (r/n))ⁿ⁺
Where FV = future value, PV = present value (amount to invest now), r = annual interest rate (as a decimal), n = number of times the interest is compounded per year, and t = number of years.
We need to rearrange the formula to solve for the present value (PV):
PV = FV / (1 + (r/n))ⁿ⁺
Let's plug in the values:
FV = $130,000r = 6.5% or 0.065n = 4 (because interest is compounded quarterly)t = 19 yearsNow, calculating the present value:
PV = $130,000 / (1 + (0.065/4))⁴ˣ¹⁹
PV = $130,000 / (1 + 0.01625)⁷⁶)
PV = $130,000 / (1.01625)⁷⁶
PV = $130,000 / (3.39414...)
PV = $38,281.87 (rounded to two decimal places)
Therefore, an investment of approximately $38,281.87 at a rate of 6.5% compounded quarterly is required to provide $130,000 in 19 years.
QUESTION 1 The Assembly Department started the month with 19,000 units in its beginning work in process inventory. An additional 103,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 29,400 units in the ending work in process inventory of the Assembly Department. How many physical units were transferred to the next processing department during the month
Answer:
Transferred out units is 93,100 units
Explanation:
The number of physical units can be determined as follows:
opening inventory + newly introduced units - closing inventory
= 19,000 + 103,500 - 29,400. =93,100 units
Note that we have to deduct the closing inventory units because they represent the quantity of work that are yet to be completed as the end of the end of the period
Physical units transferred out to the next processing department is 93,100 units
Assume Chester Corp. is downsizing the size of their workforce by 20% (to the nearest person) next year from various strategic initiatives. Chester is planning to conduct exit interviews to learn more about how they can improve in processes and increase productivity. The exit interviews are estimated to cost $100 per employee in additional to normal separation costs of $5000. How much will the company pay in separation costs if these exit interviews are implemented next year?
Calculate the total separation costs by first determining the number of employees to be let go, then determining the cost per employee (which includes separation and exit interview costs), and finally multiplying the two.
Explanation:To calculate the total amount of separation costs Chester Corp. should be expecting to pay we first need to establish the number of employees that are due to leave. To do that we multiply the number of current employees by the planned workforce reduction rate of 0.2 (which equals to 20%).
Once we found the number of employees leaving, we can calculate the costs per employee, which are the sum of the normal separation costs of $5000 and the exit interview costs of $100.
Lastly, we multiply the number of employees leaving by the calculated costs per employee. The result is the expected total separation costs with the implemented exit interviews.
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Who would be more likely to join the cross-country team (individual sport) instead of the volleyball team (team sport) and want to be captain of the team rather than just be a member?
Introvert with a high need for power
Introvert with a slow need for power
Introvert with a medium need for power
None of the Above
Answer: Introvert with a high need for power
Explanation: An Introverted individual is one who is considered more thoughtful than social, with a personality more inwardly than outwardly directed and as one who often prefers to have time in non-social situations. Given this, an introvert with a high need for power, however, would be more likely to join the cross-country team, which is an individual sport, rather than the volleyball team (team sport) and want to be captain of the team rather than just be a member.
Answer:
The correct answer is letter "A": Introvert with a high need for power.
Explanation:
Cross-county is a sport that consists of groups of people running, riding, or skiing together in the open countryside instead of on a reglementary track. People practicing this sport are evaluated by their individual performance. It will be a sport suitable for introverts, who are people who prefer to work on their own.
If the introvert individual would volunteer to lead the cross-country team, that person will show his or her need for power. Introverts usually have poor interpersonal skills, thus, the need for leading a team by one of those people is nothing more than a signal for his or her need for power.
Enya Corp. adopted the dollar-value LIFO method on January 1, 2008. Its inventory on that date was $160,000. On December 31, 2008, the inventory at prices existing on that date amounted to $140,000. The price level at January 1, 2008, was 100, and the price level at December 31, 2008, was 112.
Instructions
(a) Compute the amount of the inventory at December 31, 2008, under the dollar-value LIFO method.
(b) On December 31, 2009, the inventory at prices existing on that date was $172,500, and the price level was 115. Compute the inventory on that date under the dollar-value LIFO method.
Answer:
Option (a) =$28750 option (b) = $28750
The value of the inventory is= $153750
Explanation:
From the given question we solve for the options (a) and (b) below.
Date 1 January 2008
Inventory at the end of year prices = $160,000
Price Index = 100
Inventory at Base year prices =$160,000
Change from previous year = 0
December 31st 2008
Inventory at the end of year prices =$140,000
Price Index = 112
Inventory at Base year prices =$125000
Change from previous year = (35000)
31 December 2018
Inventory at the end of year prices = $172500
Price Index = 115
Inventory at Base year prices= $150000
Change from previous year = 25000
Now we solve for,
(a) Inventory at 31 December 2008
In the year 2008 there is LIFO liquidation (35000), so the inventory value under dollar value LIFO method;
$125000 x 1 = $125000
(b)Inventory at 31 December 2009:
$125000 x 1 = $125000
$25000 x 1.15 = $28750
Thus value of inventory ($125000 + $28750) = $153750
Vibrant Company had $850,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased merchandise costing $500,000 in each of those years. It also maintained a $250,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of Year 1 that caused its Year 1 ending inventory to appear on its statements as $230,000 rather than the correct $250,000. Required: 1. Determine the correct amount of the company's gross profit in each of Year 1, Year 2, and Year 3.
Answer:
The correct amount of the company's gross profit in each of Year 1, Year 2, and Year 3 is $350,000.
Explanation:
Gross profit is the earning of the company from the direct sales of the products or services. It is calculated by deducting the cost of goods sold from sales.
Cost of Goods sols is the production or purchase cost of an item or service sold during the period. Cost of Goods sold can be calculated by adding purchases for the period in beginning inventory and deducting the closing inventory.
Correct Gross Profit
Sales $850,000
less: Cost of Goods Sold
Beginning Inventory $250,000
+ Purchases $500,000
- Ending Inventory $250,000
$500,000
Gross Profit $350,000
As each years values of sales, purchases and beginning and Ending Inventory are same the gross profit will also be the same.
In 2020, Martinez Corporation had pretax financial income of $173,000 and taxable income of $118,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 20%.Compute the amount to be reported as income taxes payable at December 31, 2020.Income taxes payable at December 31, 2020
Answer:
The correct answer is $23,600.
Explanation:
According to the scenario, computation of the given data are as follows:
Pretax financial income = $173,000
Taxable income =$118,000
Tax rate = 20%
So, we can calculate the income taxes payable by using following formula:
Income taxes payable = Taxable income × Tax rate
= $118,000 × 20%
= $23,600
Hence, the amount to be reported as income taxes payable at December 31, 2020 is $23,600.
The process of marking-to-market Group of answer choices All of the options may result in margin calls. posts gains or losses to each account daily and may result in margin calls. posts gains or losses to each account daily. impacts only long positions.
Options:
a) Market to market impacts only short positions
b) Marking to market results in the posting of gains or losses to each account daily
c) The process of marking a contract to market may result in a margin call
d) Market to market impacts only long positions
Answer:
Options B and C are correct.
Explanation:
Marking to market results in the posting of gains or losses to each account daily and The process of marking a contract to market may result in a margin call
Pension plans are required to report two schedules, a schedule of funding progress and a schedule of employer contributions as required supplementary information (RSI) in their stand-alone financial reports and in pension plan financial information reported in the CAFR of sponsoring government. True False
Answer:
Pension plans are required to report two schedules, a schedule of funding progress and a schedule of employer contributions as required supplementary information (RSI) in their stand-alone financial reports and in pension plan financial information reported in the CAFR of sponsoring government - Both statements are true.
Explanation:
Pension plans are required to report two schedules, a schedule of funding progress, and a schedule of employer contributions as required supplementary information (RSI) in their stand-alone financial reports -This statement is correct.
Pension plan financial information is reported in the CAFR of sponsoring government - This statement is also correct.
Therefore, both statements are true.
Culver Corporation purchased machinery on January 1, 2022, at a cost of $288,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $33,800. The company is considering different depreciation met Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate.
Answer:
Please Kindly check the attach picture, the full working is there.
Explanation:
Anthonia is a senior manager at Buxley Corp., a motorcycle manufacturer. Buxley has entered an equity alliance with Supremo, a moped manufacturer. "Don't worry, Anthonia," her counterpart at Supremo tells her. "I'm going to send you all our guidelines and documentation for manufacturing catalytic converters, and then you'll be all set." What else should Anthonia request from Supremo?
A) personnel exchanges to share tacit knowledge
B) a gradual change from an equity alliance to a non-equity alliance to show greater commitment
C) nothing, because the information transfer described is complete and appropriate
D) a licensing agreement so that Buxley can exchange codified knowledge with Supremo
Answer: A) personnel exchanges to share tacit knowledge
Explanation:
Buxley has entered an EQUITY ALLIANCE with Supremo, meaning that they are now both shareholders in each other's Companies as they both acquired minority stakes in the other company.
Anthonia should definitely request personnel exchanges to share tacit knowledge. Tacit knowledge refers to knowledge that is better passed in person as it can be quite difficult to transfer by writing or otherwise. Buxley and Supremo could stand to gain from knowing the strategies that they both employ if they have personnel on ground to actually show them how they do certain things.
Gail works in a flower shop, where she produces 10 floral arrangements per hour. She is paid $8 an hour for the first eight hours she works and $16 an hour for each additional hour she works. What is the firm's cost function?
Answer:
Y= 16x -64
Explanation:
The cost function would be derived as follows
let Y represent the total cost and X the total number of hours
Y = 8(8) + 16(x-8)
Y = 64 + 16x - 128
Y = -64 + 16x
Y= 16x - 64
The firm's cost function:
Y= 16x -64
The cost function of the firm is [tex]\text{F= 16x -64}[/tex]. The formula for the cost function is explained below:
This is necessary in order to forecast costs for the following operating term at the planned activity level.
[tex]\text{C(x)= F + V(x), where;}\\\text{C = Production cost}\\\\\text{F = Total fixed costs}\\\text{V = Variable cost}\\\text{x = Number of units}[/tex]
The following is the cost function based on Gail's working hours.
Assume F is the total cost and X is the total number of hours:
[tex]\text{F = 8(8) + 16(x-8)\\F = 64 + 16x - 128\\F = -64 + 16x\\F= 16x - 64}\\\text{The firm's cost function:}\\\text{F= 16x -64}[/tex]
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Using Economic Value Added (EVA) to calculate residual income, the cost of capital employed is a.the standard percentage cost of capital multiplied by the average capital employed. b.the standard percentage cost of capital multiplied by the total capital employed. c.the actual percentage cost of capital multiplied by the average capital employed. d.the actual percentage cost of capital multiplied by the total capital employed.
Answer:
A. The standard percentage cost of capital multiplied by the average capital employed.
Explanation:
In corporate finance and economics and as a part of fundamental analysis, The Economic Value Added (EVA) is defined as an estimate of a firm's economic profit, or the value created in excess of the required return of the company's shareholders. EVA is the net profit less the capital charge ($) for raising the firm's capital.
Therefore it is the the standard percentage cost of capital when multiplied by the average capital that was used.
On December 31, 2015, Beta Company had 340,000 shares of common stock issued and outstanding. Beta issued a 6% stock dividend on June 30, 2016. On September 30, 2016, 29,000 shares of common stock were reacquired as treasury stock. What is the appropriate number of shares to be used in the basic earnings per share computation for 2016?a. 353,150.b. 391,140.c. 367,650.d. 360,400.
Answer:
A. 353,150
Explanation:
To get The appropriate number of shares to be used in the basic earnings per share for 2016,
You subtract the stock that was acquired in September from the Beta company shares.
Thus
(340,000*1.06) - (29,000*3/12) = 353,150.
353,150 is the number of shares to be used for computing September 2016 shares.
Jim and Lisa own a dog-grooming business in Champlain, New York, called JL Groomers. There are many buyers and many sellers in the dog-grooming service market. JL Groomers experiences normal cost curves, with the marginal cost (MC) curve crossing average variable cost (AVC) at $14 and average total cost (ATC) at $22.
JL Groomers will always shut down if the market price is:
A. above $14
B. $22
C. between $14 and $22
D. $14
E. below $14.
Answer:
E. below $14.
Explanation:
The decision for a firm is to shut down when price lower than average variable cost.
Since firms maximizes profit when MC is equal to the market price (P), it implies that MC = P.
Since JL Groomers experiences normal cost curves, with the marginal cost (MC) curve crossing average variable cost (AVC) at $14, this implies that MC = P = AVC at this point.
By implication, JL Groomers will always shut down if the market price is below $14.
Pina Colada Corp. receives $180,000 when it issues a $180,000, 9%, mortgage note payable to finance the construction of a building at December 31, 2019. The terms provide for annual installment payments of $30,000 on December 31. Prepare the journal entries to record the mortgage loan and the first two payments
Answer and Explanation:
The Journal entry is shown below:-
Dec 2019 Cash Dr, $180,000
To Mortgage Payable $180,000
(Being mortgage loan taken is recorded)
Dec 2020 Interest expenses Dr,$16,200
Mortgage Payable Dr, $13,800
To Cash $30,000
(Being first installment payment is recorded)
Dec 2021 Interest expenses Dr,$14,742
Mortgage Payable Dr, $15,258
To Cash $30,000
(Being second installment payment is recorded)
Working note:-
For 2020 Interest expenses = $180,000 × 9%
= $16,200
Mortgage payable = $30,000 - $16,200
= $13,800
For 2021 Interest expenses = ($180,000 - $16,200) × 9%
= $14,742
Mortgage payable = $30,000 - $14,742
= $15,258
The J. Dawson, Capital account has a credit balance of $1,200 before closing entries are made. If total revenues for the year are $65,200, total expenses $49,800, and withdrawals are $2,400, what is the ending balance in the J. Dawson, Capital account after all closing entries have been made?\
Answer:
The answer is given below;
Explanation:
Capital-Opening $1,200
Revenues for the year $65,200
Expenses ($49,800)
Withdrawals ($2,400)
Closing balance of capital $14,200
Based on the revenue, expenses, and withdrawals, we can calculate that the ending balance on this account is $14,200
The ending balance on J. Dawson's account as a capital contributor is found as:
= Opening balance + Revenue - Expenses - Withdrawals
Solving would give:
= 1,200 + 65,200 - 49,800 - 2,400
= $14,200
In conclusion, the ending balance would be $14,200
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Vertis Corporation is interested in cutting the amount of time between when a customer places an order and when the order is completed. Details for the first quarter of the year are provided here. Choose the correct answer from the options provided. Days Wait time 12 Inspection time 0.6 Process time 6 Move time 0.4 Queue time 8 Knowledge Check 01 Compute the manufacturing cycle efficiency (MCE).
Answer:
40%
Explanation:
For computing the manufacturing cycle efficiency, first we have to compute the throughput time which is shown below:
Throughput time = Process time + Inspection time + Move time + Queue time
= 6 + 0.6 + 0.4 + 8
= 15
Now
Manufacturing cycle efficiency (MCE) is
= Value added time (process time) ÷ Throughput time
= 6 ÷ 15
= 40%
We simply applied the above formulas so that the manufacturing cycle efficiency (MCE) could come