Answer:
Requirement 1
January 2
Machine $152,000 (debit)
Cash $152,000 (credit)
January 3
Machine $1,600 (debit)
Cash $1,600 (debit)
Requirement 2
(a) Its first year in operations.
Depreciation Charge =$22,720
(b) The year of its disposal.
Depreciation Charge =$22,720
Requirement 3(a)
Cash $20,500 (debit)
Accumulated Depreciation $113,600 (debit)
Loss on Sale of Machine $ 19,500 (debit)
Machine 153,600 (credit)
Requirement 3(b)
Cash $82,000 (debit)
Accumulated Depreciation $113,600 (debit)
Profit on Sale of Machine $ 42,000 (credit)
Machine 153,600 (credit)
Requirement 3(a)
Cash - Insurance Compensation $31,000 (debit)
Accumulated Depreciation $113,600 (debit)
Loss on Compensation $ 9,000 (debit)
Machine 153,600 (credit)
Explanation:
Requirement 1
January 2
Machine $152,000 (debit)
Cash $152,000 (credit)
January 3
Machine $1,600 (debit)
Cash $1,600 (debit)
Requirement 2
Depreciation Charge = (Cost - Salvage Value)/Useful Life
=(($152,000+$1,600)-$17,280)/6
=$22,720
(a) Its first year in operations.
Depreciation Charge =$22,720
(b) The year of its disposal.
Depreciation Charge =$22,720
Requirement 3(a)
Cash $20,500 (debit)
Accumulated Depreciation $113,600 (debit)
Loss on Sale of Machine $ 19,500 (debit)
Machine 153,600 (credit)
Requirement 3(b)
Cash $82,000 (debit)
Accumulated Depreciation $113,600 (debit)
Profit on Sale of Machine $ 42,000 (credit)
Machine 153,600 (credit)
Requirement 3(a)
Cash - Insurance Compensation $31,000 (debit)
Accumulated Depreciation $113,600 (debit)
Loss on Compensation $ 9,000 (debit)
Machine 153,600 (credit)
The initial cost of the machine was $153,600, with an annual depreciation of $22,720. In the event of a sale or a loss, there are different entries for each outcome; being sold for $20,500 or $82,000, and if it's destroyed with insurance reimbursing $31,000.
Explanation:The total initial cost of the machine for Onslow Co. can be calculated by summing up the purchase price, the cost to prepare it for use, and the cost of its installation platform. That will be $144,000 + $8,000 + $1,600 = $153,600.
1. Journal entries for machine's purchase, and costs to ready and install:
Debit: Machinery $153,600 Credit: Cash $153,600
Annually, the depreciation expense for the machine would be calculated by subtracting the salvage value from the total initial cost, and then dividing it by the useful life in years, which would be ($153,600-$17,280)/6 = $22,720
2. Journal entries for machine's depreciation on December 31:
Debit: Depreciation Expense $22,720 Credit: Accumulated Depreciation $22,720
For the fifth year, the accumulated depreciation would be $22,720 * 5 years = $113,600
3. Journal entries for machine's disposal under each assumption:
(a) Debit: Cash $20,500, Accumulated Depreciation $113,600, Loss on Disposal $19,500; Credit: Machinery $153,600 (b) Debit: Cash $82,000, Accumulated Depreciation $113,600, Gain on Disposal $41,400; Credit: Machinery $153,600 (c) Debit: Cash $31,000, Accumulated Depreciation $113,600, Loss on Disposal $9,000; Credit: Machinery $153,600 Learn more about Entries here:
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Suppose that an American opens and operates a candy factory in Finland. This is an example of a. foreign portfolio investment. We can expect it to increase Finnish GNP more than Finnish GDP. b. foreign portfolio investment. We can expect it to increase Finnish GDP more than Finnish GNP. c. foreign direct investment. We can expect it to increase Finnish GDP more than Finnish GNP. d. foreign direct investment. We can expect it to increase Finnish GNP more than Finnish GDP.
Answer: c. foreign direct investment. We can expect it to increase Finnish GDP more than Finnish GNP.
Explanation:
By directly opening a company in Finland, the American company has engaged in Foreign Direct Investment because it has actual control as it operates the candy factory.
Now, as you may or may not know, Gross Domestic Product (GDP) is the total amount of goods Produced IN a country in a given period which is usually a year.
Gross National Product on the other hand, is the GDP + ( Net income from foreign Investment). That means when calculating GNP, you take do this,
GNP = GDP + Income from foreign Investment - income from foreign Investment within the country.
Essentially it removes foreign owned production from the GDP and adds the country's own foreign investments in other countries.
What this means is that, the GDP will be strengthened by the the opening of the company in Finland by the Americans because it will contribute to GDP. But GNP will not be so lucky because when counting GNP, the income from the Candy company will be subtracted because it is foreign owned.
If you need any clarification do comment.
Cullumber Corporation earns $840000 and pays cash dividends of $300000 during 2021. Dexter Corporation owns 4200 of the 10000 outstanding shares of Cullumber. What amount should Dexter show in the investment account at December 31, 2021 if the beginning of the year balance in the account was $1080000?
Answer: $1,306,800
Explanation:
In answering this question, we look at how much of that income, Cullumber still had on hand and then take the proportion that belongs to Dexter.
Cullumber Corporation earns $840,000 and pays cash dividends of $300,000 during 2021.
That means that after paying the dividends they are left with,
= 840,000 - 300,000
= $540,000
Now, Dexter owns 4200 out of 10,000 shares. That means they own,
= 4,200/10,000
= 42% of Cullumber Corporation stock.
If they own 42% of the stock, they are entitled to 42% of the income so,
= 42% * 540,000
= $226,800
Now we then add this figure to the opening balance,
= $1,080,000 + $226,800
= $1,306,800
$1,306,800 is the amount Dexter should show in the investment account at December 31, 2021.
Consider the following three items: CQ, EI, and AP = PP + S – T. How might you to achieve improved outcomes for groups that have a specific set of objectives but the limited time and resources. Focus on how these concepts can help you make a difference across the entire group. Highlight how you can improve positive influences, and especially preempt or limit negative sentiments.
Answer:
How to achieve improved outcomes for groups that have specific set of objectives focusing on how the concepts can be used to make a difference across the group
making each member of the group understand each other emotionally and their ways of performing tasksmaking each member of the group understand their importance in the entire production process making the group members aware about the importance of optimum utilization of resources and avoid wasting resources while workingmaking the group understand the possibility of achieving good performance by eliminating work threatsmaking the group understand the organization's structure therefore it makes the group culturally intelligentHow you can improve positive influences and especially preempt or limit negative sentiments
increasing the dependency culture among each other so they learn to work with each other in harmony.creating friendly relationships between employees and also between employees and employermaking the employees understand and practice proper organizational culture so that they can work judiciously following the organizational structureExplanation:
Note :
CQ = cultural intelligence
EI = emotional intelligence
AP = actual productivity
PP = potential productivity
S = synergy
T = performance threats
How to achieve improved outcomes for groups that have specific set of objectives focusing on how the concepts can be used to make a difference across the group
making each member of the group understand each other emotionally and their ways of performing tasksmaking each member of the group understand their importance in the entire production process making the group members aware about the importance of optimum utilization of resources and avoid wasting resources while workingmaking the group understand the possibility of achieving good performance by eliminating work threatsmaking the group understand the organization's structure therefore it makes the group culturally intelligentHow you can improve positive influences and especially preempt or limit negative sentiments
increasing the dependency culture among each other so they learn to work with each other in harmony.creating friendly relationships between employees and also between employees and employermaking the employees understand and practice proper organizational culture so that they can work judiciously following the organizational structureZhao Co. has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs are $116 per unit. The company expects sales of 10,000 units. Prepare a contribution margin income statement for the year ended December 31, 2019.
Answer:
Contribution margin income statement for the year ended December 31, 2019
Sales (10,000×$175) 1,750,000
Less Variable Costs (10,000×$116) (1,160,000)
Contribution 590,000
Less Fixed Costs (354,000)
Net Income/(loss) 236,000
Explanation:
Variable Costing Income = Contribution - Fixed Costs
To prepare a contribution margin income statement for Zhao Co., calculate the total sales, total variable costs, and total contribution margin. The income statement will show the company's revenue, costs, and profit for the year.
Explanation:To prepare a contribution margin income statement, you need to calculate the total sales, total variable costs, and total contribution margin. The contribution margin is the selling price per unit minus the variable cost per unit.
First, calculate the total sales: 10,000 units x $175 per unit = $1,750,000.
Next, calculate the total variable costs: 10,000 units x $116 per unit = $1,160,000.
Finally, calculate the contribution margin: Total sales - Total variable costs = $1,750,000 - $1,160,000 = $590,000.
Contribution Margin Income Statement:Sales: $1,750,000Variable Costs: $1,160,000Contribution Margin: $590,000Fixed Costs: $354,000Net Income: Contribution Margin - Fixed Costs = $590,000 - $354,000 = $236,000The contribution margin income statement shows the company's revenue, costs, and profit for the year.
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Joni wants to know how much a pedicure cost back in 1954, when her grandmother was her age. The Consumer Price Index (CPI) in 1954 was 26.7 and is 245.9 this year. A pedicure costs $ 45 today. Round your answer to the nearest penny.
Using the Consumer Price Index (CPI) to adjust for inflation, the cost of a pedicure in 1954 can be calculated as $4.89 when rounded to the nearest penny.
Explanation:To determine the cost of a pedicure in 1954 using the Consumer Price Index (CPI), we need to use the CPI for 1954 and the current year as well as the cost of a pedicure today. The formula to adjust a price from an earlier year based on CPI is:
Price in Past Year = (Price in Current Year) * (CPI in Past Year / CPI in Current Year)
Using the information provided:
CPI in 1954: 26.7CPI in the current year: 245.9Cost of a pedicure today: $45So, the cost of a pedicure in 1954 would be:
$45 * (26.7 / 245.9) = $4.89
We round this to the nearest penny to get $4.89 as the historical cost of a pedicure in 1954.
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Mathis Co. at the end of 2014, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:
Pretax financial income $800,000
Estimated litigation expense 2,000,000
Installment sales (1,600,000)
Taxable income $1,200,000
The estimated litigation expense of $2,000,000 will be deductible in 2016 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $800,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $800,000 current and $800,000 noncurrent. The income tax rate is 30% for all years. The deferred tax asset to be recognized is
A) $240,000
B) $360,000
C) $400,000
D) $800,000
Answer:
A) $240,000
Explanation:
Deferred tax asset is an asset recognized when taxable income and hence tax paid in current period is higher than the tax amount worked out based on accrual basis or where loss carryforward is available. It's classification as current or noncurrent highly depends on the classification of the asset or liability that gave rise to it.
$800,000×30% = $800,000× 0.3 = $240,000
The deferred tax asset to be recognized is $240,000
Consider a US treasury bill that matures in one year compared to a US treasury bond that matures in 10 years. Select one: a. The one year bond has more credit risk. b. Both bonds are risk free. c. The ten year bond has more credit risk. d. The ten year bond has more interest rate risk. e. The one year bond has more interest rate risk.
Answer: b. Both bonds are risk free.
Explanation:
Both the Short term US Treasury bill and the longer term US Treasury bond are backed by the full faith and weight of the Government of United States of America.
The United States has never defaulted on a payment in the modern era. It is for this reason that US bonds are considered the epitome of safe and their rates are usually given as the risk free rate.
T-bills and T-Bonds along with T-Notes and Treasury Inflation-Protected Securities (TIPS) are considered to be the safest instruments in the world.
Suppose that preferences over private consumption C and public goods G are such that these two goods are perfect substitutes, that is, the marginal rate of substitution of public goods for private goods is a constant b > 0. Determine the optimal quantity of public goods that the government should provide, and interpret your results. Make sure you show all of the relevant cases. What happens when b changes, or when q changes?
Repeat part (a), except with perfect complements preferences, that is, for the case where the representative consumer always wishes to consume private consumption goods and public goods in fixed proportions, or C = aG, with a > 0.
Answer:
Please see explanation below.
Explanation:
Public goods are goods consumed collectively, they are provided for all members of a community,
no one can be excluded from their consumption. The consumption by one person does not decrease the consumption possibilities for others. Public goods are available for everybody without paying, and these goods cannot be rationed: they are either provided for the whole community, or for no one. Examples of public goods include the public lighting system, public roads, radio broadcasts, national defence, lighthouses, town pavements, etc.
Private goods, on the other hand, are goods consumed individually, and if a unit has been consumed by
someone, then no one else can also consume the same unit. Private goods are scarcely available, and consuming a unit will decrease the amount available for further consumption. Therefore consumers compete for private goods, i.e. private goods are rival in consumption. Consumers can consume them if they pay the price, non-payers are excluded from consumption.
In the first scenario, given that both the private good and public good are perfect substitutes, the optimum quantity produced by the government is at the point where marginal social cost is equal to the marginal social benefit. This optimum output is lower than that of the private firm because the price of public good is higher than price of private good (since marginal social cost > marginal private cost).
If b increases, that means consumers are willing to give up more units of public goods for one unit of the private good. Therefore, the quantity produced by the government will reduce.
For the second part of the question: C = aG, where a > 0.
This implies that equal or more units of the private good is consumed with a particular units of public good. The optimum output still remain at the point where marginal social cost is equal to marginal social benefit but this output level is lower than if the two goods were to be perfect substitutes.
On July 4, Blossom's Restaurant accepts a Visa card for a $150 dinner bill. Visa charges a 2% service fee. Prepare the entry on Blossom’s books related to the transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
The journal entry is shown below.
Explanation:
According to the scenario, the journal entry for the given data are as follows:
Journal entry
Jul.4 Cash A/c Dr $147
Card charges A/c Dr. $3
To Sales revenue A/c $150
(Being card transaction is recorded)
Computation:
Cash = $150 - 2% × $150 = $147
Card charges = $150 × 2% = $3
Damon Corporation issued $400,000 of 6% bonds on May 1, 2020 using straight-line interest. The bonds were dated January 1, 2020, and mature January 1, 2023, with interest payable July 1 and January 1. The bonds were issued at face value plus accrued interest.
Prepare Damon's journal entries for (a) the May 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry.
Answer:
May 1
Dr Cash408,000
Cr Bonds Payable 400,000
Cr Interest Expense 8,000
July 1
Dr Interest Expense 12,000
Cr Cash 12,000
Dec 31
Dr Interest Expense 12,000
Cr Interest Payable12,000
Explanation:
May 1,
Dr Cash408,000
Cr Bonds Payable 400,000
Cr Interest Expense 8,000(Accrued Interest = 400,000 x 6% x 4/12)
July 1
Dr Interest Expense 12,000
Cr Cash 12,000(Bond interest expense = 400,000 x 6% x 6/12)
Dec 31
Dr Interest Expense 12,000
Cr Interest Payable12,000
Mr. Beautiful, an organization that sells weight trainingsets, has an ordering cost of $45 for the BB-1 set (BB-1 stands for Body Beautiful Number 1). The carrying cost for BB-1 is $20 per set per year. To meet demand, Mr. Beautiful orders large quantities of BB-1 7 times a year. The stockout cost for BB-1 is estimated to be $45
per set. Over the past several years, Mr. Beautiful has observed the following demand during the lead time for BB-1: Demand During Lead Time Probability
Value 1 10 0.1
Value 2 30 0.2
Value 3 50 0.2
Value 4 70 0.2
Value 5 90 0.2
Value 6 110 0.1
The reorder point for BB-1 is 50 sets. What level of safety stock should be maintained forBB-1?
The optimal quantity of safety stock which minimizes expected total cost is nothing ______
Answer:
839.216
Explanation:
For we to calculate the total cost, we use the following
Total Cost = Carrying Cost + Stock out Cost
= 0+ $45 x 4 x [.2(100-80)+.2(120-80)+.1(140-80)] = 1368*
Now
Total Cost = Carrying Cost + stock out Cost
Total cost= [10 x 20]+40 x 4 x [.2990-50-20)+.1(110-50-20)]
Total cost = 200-1115.216+4
Total cost = 839.216
In this exercise we have to use statistical knowledge to find the optimal quantity that best fits the informed stock, thus we have to:
[tex]839.216[/tex]
For we to calculate the total cost, we use then using the formula bellow:
[tex]Total\ Cost = Carrying \ Cost + Stock \ out \ Cost[/tex]
Substituting the values given in the text we have to:
[tex]0+ \$45 * 4 * [2(100-80)+2(120-80)+1(140-80)] = 1368[/tex]
They are using the total cost formula, we have to:
[tex]Total \ Cost = Carrying \ Cost + stock \ out \ Cost[/tex]
Substituting the values given in the text we have to:
[tex]Total = [10 * 20]+40 * 4 * [2990-50-20)+1(110-50-20)]\\Total = 200-1115.216+4\\Total = 839.216[/tex]
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Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow:
Division Osaka Yokohama
Sales $ 10,700,000 $ 37,000,000
Net operating income $ 749,000 $ 3,330,000
Average operating assets $ 2,675,000 $ 18,500,000
For each division, compute the return on investment (ROI) in terms of margin and turnover.
Answer:
Osaka ROI is 28%
Yokohama ROI is 18%
Explanation:
The formula for return on investment =net income/average operating assets*100
For Osaka division:
net income is $749,000
average operating assets is $2,675,000
return on investment=$749,000/$2,675,000*100
=28%
For Yokohama
net income is $3,330,000
average operating assets is $18,500,000
return on investment=$3,330,000/$18,500,000
=18%
Even though Yokohama has a higher net operating income ,the Osaka division recorded a better performance using ROI as a performance metric,which shows profit computation is an absolute figure which does not consider the amount of resources invested in order to earn the profit
Which one of the following statements is CORRECT? A Since companies can deduct dividends paid but not interest paid, our tax system favors the use of equity financing over debt financing, and this causes companies’ debt ratios to be lower than they would be if interest and dividends were both deductible. B Interest paid to an individual is counted as income for federal tax purposes and taxed at the individual’s regular tax rate, which in 2008 could go up to 35%, but dividends received were taxed at a maximum rate of 15%. C The maximum federal tax rate on corporate income in 2008 was 50%. D The maximum federal tax rate on personal income in 2008 was 50%.
Answer: B. Interest paid to an individual is counted as income for federal tax purposes and taxed at the individual’s regular tax rate, which in 2008 could go up to 35%, but dividends received were taxed at a maximum rate of 15%.
Explanation:
Interest received by individuals is considered gross income and as such is eligible for taxation.
The tax rate is dependant on the income of the Individual's income which in 2005 was up to 35% but is now up to 39.6%.
Dividends received however are taxed up to 15%.
Final answer:
Statement B is correct about tax rates on interest and dividends. Dual taxation is a financial disadvantage for corporations. Tax efficiency and market distortions are key considerations in the income tax system.
Explanation:
Statement B is correct. Interest paid to an individual is counted as income for federal tax purposes and taxed at the individual’s regular tax rate, which in 2008 could go up to 35%, but dividends received were taxed at a maximum rate of 15%. This discrepancy in tax rates between interest and dividends creates different tax implications for individuals.
Dual taxation is a significant financial disadvantage faced by corporations where profits are taxed twice: once at the corporate level and again when dividends are distributed to shareholders, causing complexity in corporate tax regulations.
Tax efficiency and market distortions, as mentioned in the text, highlight the complexities and debates surrounding the impact of tax preferences and incentives in the federal income tax system on individual behaviors and economic activities.
In your opinion, what type of business risk poses the greatest threat to a company's overall success?
Answer:
The type of business risk that poses the greatest threat to a company's overall success is Competitive Risk.
Explanation:
Business risk threatens a company's ability to meet its target or achieve its financial goals. They could be caused by what you have control of such as operations and what you cannot control such as natural disaster and unfavorable government policy.
However, the greatest threat to a company's overall success is competitive risk.
Competitive risk is the chance that competitive forces will prevent you from achieving your overall business goal. It is often associated with the risk of declining business revenue or margins due to the actions of a competitor.
A registered securities agent solicits a customer to buy mutual fund shares. The customer buys 200 shares, sending a check made out to the fund's custodian bank to the agent. The agent does not record the trade on the books of the broker-dealer.
Under the Uniform Securities Act, this action is:
Answer: prohibited private securities transaction
Explanation: The action performed by the registered securities agent by soliciting a customer to buy mutual funds and not recording the trade in the books after the customer buys under the Uniform Securities Act is a prohibited private securities transaction. This is essentially because private securities transactions are a prohibited business practice under the Act as a result, every trade effected by an agent must be recorded on the books of the broker-dealer and which in turn must be supervised by the broker-dealer.
An incomplete cost of goods manufactured schedule is presented below. Complete the cost of goods manufactured schedule for Hobbit Company. HOBBIT COMPANY Cost of Goods Manufactured Schedule Work in process (1/1) $216,680 Direct materials Raw materials inventory (1/1) $ Add: Raw materials purchases 159,060 Total raw materials available for use Less: Raw materials inventory (12/31) 29,230 Direct materials used $183,850 Direct labor Manufacturing overhead Indirect labor 26,160 Factory depreciation 40,720 Factory utilities 73,100 Total overhead 139,980 Total manufacturing costs Total cost of work in process Less: Work in process (12/31) 84,720 Cost of goods manufactured $546,610
Answer:
HOBBIT COMPANY
Cost of Goods Manufactured Schedule
Direct materials Raw materials inventory (1/1) $ 54020
Add: Raw materials purchases 159,060
Total raw materials available for use 213080
Less: Raw materials inventory (12/31) 29,230
Direct materials used $183,850
Direct labor $ 90820
Manufacturing overhead 139,980
Indirect labor 26,160
Factory depreciation 40,720
Factory utilities 73,100
Total overhead 139,980
Total manufacturing costs $414650
Work in process (1/1) $216,680
Total cost of work in process $ 631330
Less: Work in process (12/31) 84,720
Cost of goods manufactured $546,610
Explanation:
HOBBIT COMPANY
Cost of Goods Manufactured Schedule
Direct materials Raw materials inventory (1/1) $ 54020
Add: Raw materials purchases 159,060
Total raw materials available for use 213080
Less: Raw materials inventory (12/31) 29,230
Direct materials used $183,850
STEP 1) Using the direct materials used figure we move upwards to calculate the missing figures doing reverse calculations.
Direct materials used + Raw materials inventory =Total raw materials available for use
Total raw materials available for use =$183,850 +29,230 =213080
Total raw materials available for use -Raw materials purchases=Direct materials Raw materials inventory
Direct materials Raw materials inventory=213080- 159,060 = 54020
Direct materials used $183,850
Direct labor $ 90820
Manufacturing overhead 139,980
Indirect labor 26,160
Factory depreciation 40,720
Factory utilities 73,100
Total overhead 139,980
Total manufacturing costs $414650
Work in process (1/1) $216,680
Total cost of work in process $ 631330
Less: Work in process (12/31) 84,720
Cost of goods manufactured $546,610
STEP 2) Moving backwards from the Cost of goods manufactured figure we find the Total cost of work in process doing reverse calculations
Cost of goods manufactured $546,610 + Work in process (12/31) 84,720 =Total cost of work in process
Total cost of work in process =$546,610 + 84,720 = $ 631330
STEP 3) Then we find the total manufacturing Cost .
Total cost of work in process Less Work in process (1/1) $216,680 =Total manufacturing costs
Total manufacturing costs =$ 631330-$216,680 = $414650
STEP 4) From the Total manufacturing costs we find the Direct labor using the following
Direct labor =Total manufacturing costs-Manufacturing overhead 139,980-Direct materials used $183,850
Direct labor = $414650-139,980- $183,850 = $ 90820
The completion of the Cost of Goods Manufactured Schedule is as follows:
Cost of Goods Manufactured Schedule
Work in process (1/1) $216,680
Direct materials 183,850
Direct labor 90,920
Manufacturing overhead 139,980
Total manufacturing costs $631,330
Less: Work in process (12/31) 84,720
Cost of goods manufactured $546,610
Data and Calculations:
Raw materials inventory:
Raw materials inventory (1/1) $54,020
Add: Raw materials purchases 159,060
Total raw materials available for use $213,080
Less: Raw materials inventory (12/31) 29,230
Direct materials used $183,850
Total raw materials available for use = $213,080 ($29,230 + $183,850)
Raw materials inventory at January 1 = $54,020 ($213,080 - $159,060)
Manufacturing overhead
Indirect labor 26,160
Factory depreciation 40,720
Factory utilities 73,100
Total overhead 139,980
Total manufacturing costs:
The total cost of work in process $631,330
Less: Work in process (12/31) 84,720
Cost of goods manufactured $546,610
Total cost of work in process = $631,330 ($546,610 + $84,720)
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Rede Inc. manufactures a single product. Variable costing net operating income was $63,800 last year and its inventory decreased by 300 units. Fixed manufacturing overhead cost was $4 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year
Answer:
$62,600
Explanation:
Net operating income under variable costing = $63,800
Fixed manufacturing overhead cost deferred in inventory = (300 units multiplied by $4) =$1,200
the absorption costing net operating income last year= $63,800 - $1,200 = $62,600
Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one more worker, the firm’s total monthly revenue will increase from $54,000 to $66,000. If he adds one more tractor, monthly revenue will increase from $54,000 to $62,000. Each additional worker costs $4,000 per month, while an additional tractor would also cost $4,000 per month.
. a. What is the marginal revenue product of labor? The marginal revenue product of capital?
b. What is the ratio of the marginal revenue product of labor to the price of labor (MRPL/PL)? . What is the ratio of the marginal product of capital to the price of capital (MRPK/PK)?
. c. Is the firm using the least-costly combination of inputs?
d. Does adding an additional worker or adding an additional tractor yield a larger increase in total revenue for each dollar spent?
Answer:
A.$12,000
B.$8000
C.MRPL/PL = 3
MRPK/PK =2
D) Since each of the above calculated ratios are more than one, therefore adding additional worker or tractor will increase the total revenue for each of the dollar spent.
Explanation:
(a) The Marginal Revenue Product of Labor (MRPL) can said to be the additional revenue generated when an additional worker is employed.
$66,000 - $54,000 = $12,000
Thus, MRPL is 12,000
b) Marginal revenue product of capital is
( 62000 - 54000)= $8000
c) MRPL/PL = 12000/ 4000= 3
MRPK/PK = 8000/4000=2
Therefore Since these two ratios are not equal it means the firm is not using the least cost combination of inputs.
d) Since each of the above calculated ratios are more than one, therefore adding additional worker or tractor will increase the total revenue for each of the dollar spent.
Mary Strand’s regular hourly wage rate is $14, and she receives an hourly rate of $21 for work in excess of 40 hours. During a January pay period, Mary works 45 hours. Mary’s federal income tax withholding is $85, and she has no voluntary deductions. Compute Mary Strand’s gross earnings and net pay for the pay period. Assume that the FICA tax rate is 7.65%. (Round answers to 2 decimal places, e.g. 15.25.)
Final answer:
Mary Strand's gross earnings for the pay period are $665, and after accounting for FICA and federal income tax withholdings, her net pay is $529.13.
Explanation:
To compute Mary Strand's gross earnings for a January pay period where she works 45 hours, we need to consider her regular hourly wage and overtime pay. Mary's regular earnings for 40 hours at $14 per hour is $560 (40 hours * $14/hour). Her overtime earnings for the additional 5 hours at $21 per hour is $105 (5 hours * $21/hour). Therefore, her total gross earnings would be $665 ($560 + $105).
The net pay is calculated by subtracting Mary's taxes and other deductions from her gross earnings. First, we calculate the FICA tax, which is 7.65% of her gross earnings: $665 * 7.65% = $50.87 (rounded to two decimal places). Her federal income tax withholding is $85. Therefore, her total deductions are $135.87 ($85 + $50.87). Subtracting this from her gross earnings gives us her net pay: $665 - $135.87 = $529.13.
So, Mary Strand's gross earnings for the pay period are $665, and her net pay is $529.13 (rounded to two decimal places).
Cullumber Construction Company earned $400,000 during the year ended June 30, 2017. After paying out $225,794 in dividends, the balance went into retained earnings. If the firm's total retained earnings were $841,936 at the end of fiscal year 2017, what were the retained earnings on its balance sheet on July 1, 2016
Answer:
Opening balance of retained earnings is $667,730
Explanation:
The balance of retained earnings at the the end is the sum of opening balance, profit earned and less dividend payment for the period
Retained earnings at the end = Opening balance + profit - dividend
let y represent the opening balance
841, 936 = y + 400,000 - 225,794
y= 841, 936-400,000 + 225,794
y= $667,730
Opening balance of retained earnings = balance sheet on July 1, 2016 is $667, 730
1-a. Assume that Andretti Company has sufficient capacity to produce 120,150 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 35% above the present 89,000 units each year if it were willing to increase the fixed selling expenses by $140,000. What is the financial advantage (disadvantage) of investing an additional $140,000 in fixed selling expenses?
Answer:
The answer is given below;
Explanation:
The opportunity gain of investing in fixed selling expenses could be quantified by comparing with interest rates prevailing in the market.
if the net margin earned on producing extra quantity is greater than the return earned on placing funds in bank account,then it is financially viable to invest in fixed selling expenses and vice versa.
Apple reports the following net sales (in $ millions) by product line in its fiscal year 2017 annual report.
Product line 2017 Sales 2016 Sales
iPhone $141,319 $136,700
iPad 19,222 28,628
Mac 25,850 22,831
Services 29,980 24,348
Other 12,863 11,132
1. If Apple assigns overhead costs to product lines based on sales, which product line would be assigned the highest amount of overhead costs for 2017?
2. If Apple assigns overhead costs to product lines based on sales, which product line would be assigned the lowest amount of overhead costs for 2017?
3. Which of Apple’s product lines had the largest percentage increase in sales from 2016 to 2017?
Answer:
1. iPhone
2.Others
3. Services
Explanation:
1. According to the question the product line of iPhone would have the highest amount which is $141,319 in 2017
2. According the second point the others product line based on sales would have the least amount which is $12,863 in 2017.
3. The increase in sales from 2016 to 2017 is shown below:-
Particulars 2017 (A) 2018 (B) Difference Percentage
C = A - B C ÷ B × 100
iPhone $141,319 $136,700 $4,619 3.4%
iPad $19,222 $28,628 ($1,406) (6.4%)
Mac $25,850 $22,831 $3,019 13.2%
Services $29,980 $24,348 $5,632 23.1%
Other $12,863 $11,132 $1,731 15.5%
Therefore Services has the highest sales from 2016 to 2017
Which citation style did you learn to use in this course?
A.
American Psychological Association style
B.
Chicago Manual style
C.
Modern Language Association style
D.
Library Association style
Please select the best answer from the choices provided
A
B
C
D
The citation style I learned to use in this course is APA (American Psychological Association) style.
Explanation:The citation style that I learned to use in this course is American Psychological Association style (APA). APA style is often used in education, psychology, and science fields. It emphasizes author names and dates of publication in in-text citations and provides guidelines for creating a list of references at the end of a document. The citation style I learned to use in this course is APA (American Psychological Association) style.
Pina Colada Corp. developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value(LCNRV) basis in valuing inventories: Product Cost Market A $125000 $132000 B 88000 84000 C 176000 178000 After Pina Colada Corp. applies the LCNRV rule, the value of the inventory reported on the balance sheet would be
Answer:
$385,000
Explanation:
The computation of value of the inventory reported using the LCNRV rule is shown below:
Product Cost Market Lower value of cost and market
A $125,000 $132,000 $125,000
B $88,000 $84,000 $84,000
C $176,000 $178,000 $176,000
Ending inventory value $385,000
Based on this, the value of the ending inventory is $385,000 by applying the LCNRV rule
Adjusted WACC. Lewis runs an outdoor adventure company and wants to know what effect a tax change will have on his company's WACC. Currently, Lewis has the following financing pattern: Equity: 35% and cost of 14.00% Preferred stock: 15% and cost of 11.00% Debt: 50% and cost of 10.0% before taxes What is the adjusted WACC for Lewis if the tax rate is a. 40%? b. 30%? c. 20%? d. 10%? e. 0%? a. What is the adjusted WACC for Lewis if the tax rate is 40%? nothing% (Round to two decimal place
Answer:
The workings of Adjusted WACC under each of Tax scenario are attached
Explanation:
Phipps Company borrowed $16,000 cash on October 1, 2014, and signed a six-month, 6% interest-bearing note payable with interest payable at maturity. Assuming that adjusting entries have not been made during the year, the amount of accrued interest payable to be reported on the December 31, 2014 balance sheet is which of the following?a $240.b $360.c $120.d $480.
Answer:
The accrued interest payable to be reported on December 31, 2014 will be $240 and option a is the correct answer.
Explanation:
The interest rate given on the notes payable is the annual rate. Following the accrual basis of accounting, the revenues and expenses for a period should be matched and recorded in their respective periods. Thus, the interest relating to the period from October to December will be recorded as an expense on 31 December 2014 and debited to interest expense and credited to interest payable as the interest will be paid at maturity.
The interest expense for the 3 month period from October to December is,
Interest expense = 16000 * 0.06 * 3/12 = $240
The entry will be,
31 Dec 2014 Interest expense $240 Dr
Interest Payable $240 Cr
Answer:
The amount of accrued interest payable to be reported on the December 31, 2014 balance sheet is a $240
Explanation:
Phipps Company borrowed $16,000, 6% interest rate.
The amount of the interest per year = 6% x $16,000 = $960
The amount of the interest per month = $960/12 = $80
On December 31, 2014, following 3 months borrowing, the amount Interest expense Phipps Company records:
$80 x 3 = $240
The adjusting entry:
Debit Interest expense $240
Credit Interest Payable $240
When examining the Fed's balance sheet, in most periods, the two most important assets are: A. U.S. Treasury securities and Gold. B. Gold and Mortgage minus backed securities. C. Mortgage minus backed securities and Discount loans to banks. D. U.S. Treasury securities and Discount loans to banks.
Answer: D. U.S. Treasury securities and Discount loans to banks.
Explanation: When examining the Fed's balance sheet, in most periods, the two most important assets are U.S. Treasury securities and Discount loans to banks. The Fed's balance sheet balance sheet includes a large number of distinct assets and liabilities containing a great deal of information about the scale and scope of its operations. Of these assets the U.S. Treasury securities and Discount loans to banks are paramount.
U.S Treasury securities are such as bills, notes and bonds issued by the U.S. government viewed as having virtually no credit risk. As such, they are debt obligations of the U.S. government.
Discount loans to banks are direct short term loans provided to banks by the Fed to meet temporary shortages of liquidity caused by internal or external disruptions.
Consider each of the items below. Please the proper letter in the blank space provided to indicate the nature of the account or accounts to be debited when recording each transaction using the preferred accounting treatment. Prepayments should be recorded in balance sheet accounts. Disregard income tax consideration unless instructed otherwise. a. asset(s) only b. accumulated depreciation only c. expense only d. asset(s) and expense e. some other account or combination of accounts ____________A motor in one of North Company's trucks was overhauled at a cost of $000. It is expected that this will extend the life of the truck for two years. ____________Machinery which cost $130.000 was repaired at a cost of $4.500 for damage sustained during its installation. _____________Orlando Company recently purchased land and two buildings for a total cost of $35,000, and entered the purchase on the books.The $1, 200 cost of razing the smaller building, which has an appraisal value of $8, 200, is recorded. ___________Janzen Company traded its old machine with a net book value of $3,000 plus cash of $7,000 for new one which had a fair value of $9,000.____________ Jim Para and May Lawson, maintenance repair workers, spent five days in unloading and setting up a new $8,000 precision machine in the plant. The wages earned is this five-day period, $490, are. _______On June 1, the Minot Hotel installed a sprinkler system throughout the building at a cost of $13,000. As a result the insurance rate was decreased by 40%.__________An improvement, which extended the life but not the usefulness of the asset, cost $8,000. The antic of the administration building was finished at a cost of $3,000 to provide an additional office.__________ In March, the Lyon The stare bought projection equipment on the installable basis. The contract price was $23,000 payable $5.610 down and $2.250 a months. The cash price for this equipment was $22, 530. ________Lambert Company recorded the first year's interest on 6% insert on 0% $100,000 ten-year bonds sold a year ago at 94. The bonds were sold to finance the construction of a hydroelectric plant. Six months after the sale of the bonds the construction of the hydroelectric plant was completed and operations were beam.
Answer: Please refer to Explanation
Explanation:
ACCUMULATED DEPRECIATION ONLY .A motor in one of North Company's trucks was overhauled at a cost of $000. It is expected that this will extend the life of the truck for two years.
ASSETS ONLY.Machinery which cost $130.000 was repaired at a cost of $4.500 for damage sustained during its installation.
ASSETS ONLY. Orlando Company recently purchased land and two buildings for a total cost of $35,000, and entered the purchase on the books.The $1, 200 cost of razing the smaller building, which has an appraisal value of $8, 200, is recorded.
SOME OTHER ACCOUNT OR COMBINATION OF ACCOUNTS. Janzen Company traded its old machine with a net book value of $3,000 plus cash of $7,000 for new one which had a fair value of $9,000.
ASSETS ONLY. Jim Para and May Lawson, maintenance repair workers, spent five days in unloading and setting up a new $8,000 precision machine in the plant. The wages earned is this five-day period, $490, are.
ASSETS ONLY. On June 1, the Minot Hotel installed a sprinkler system throughout the building at a cost of $13,000. As a result the insurance rate was decreased by 40%.
ACCUMULATED DEPRECIATION ONLY .An improvement, which extended the life but not the usefulness of the asset, cost $8,000.
ASSET ONLY. The antic of the administration building was finished at a cost of $3,000 to provide an additional office.
SOME OTHER ACCOUNT OR COMBINATION OF ACCOUNTS. In March, the Lyon The stare bought projection equipment on the installable basis. The contract price was $23,000 payable $5.610 down and $2.250 a months. The cash price for this equipment was $22, 530.
ASSET(s) AND EXPENSE. Lambert Company recorded the first year's interest on 6% insert on 0% $100,000 ten-year bonds sold a year ago at 94. The bonds were sold to finance the construction of a hydroelectric plant. Six months after the sale of the bonds the construction of the hydroelectric plant was completed and operations were beam.
If you need any clarification do comment.
Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: Deluxe and Basic.
Activity Expected Costs Expected Activity
Handling materials $625,000 100,000 parts
Inspecting product 900,000 1,500 batches
Processing purchase orders 105,000 700 orders
Paying suppliers 175,000 500 invoices
Insuring the factory 300,000 40,000 square feet
Designing packaging 75,000 2 models
Required:
a. Compute a single plantwide overhead rate for the year, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours.
b. In January of this year, the Deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate.
Answer:
a $17.44 per direct labor hour
b. Assignment of Overheads
Deluxe model =$43,600
Basic model = $104,640
Explanation:
Plant wide overhead rate is the allocation rate used for allocating overheads (indirect costs) to jobs or products calculated for the whole entity.
Plant wide overhead rate = Budgeted Overheads / Budgeted Activity.
Calculation of Budgeted Overheads :
Handling materials 625,000
Inspecting product 900,000
Processing purchase orders 105,000
Paying suppliers 175,000
Insuring the factory 300,000
Designing packaging 75,000
Total Cost 2,180,000
Plant wide overhead rate = Budgeted Overheads / Budgeted Activity.
= $2,180,000/125,000
= $17.44 per direct labor hour
Assignment of Overheads
Deluxe model required 2,500 direct labor hours
Deluxe model = 2,500 × $17.44
= $43,600
Basic model required 6,000 direct labor hours
Basic model = 6,000 × $17.44
= $104,640
Austin Fisher contributed land, inventory, and $34,000 cash to a partnership. The land had a book value of $70,000 and a market value of $127,000. The inventory had a book value of $62,000 and a market value of $57,700. The partnership also assumed a $50,000 note payable owed by Fisher that was used originally to purchase the land. Provide the journal entry for Fisher.
Answer:
The journal entry will be as follows;
Explanation:
Cash Dr.$34,000
Land Dr.$127,000
Inventory Dr.$57,700
Note Payable Cr.$50,000
Capital-Fisher Cr.$168,700
With contribution of assets net off of note payable by partnership,the fisher capital will be recorded in partnership.