The number of equivalent units of conversion costs for Penny, Inc. for the month of July using the FIFO method is 14,380 units.
To calculate the number of equivalent units of conversion costs using the FIFO method, we first need to account for the work needed to complete the beginning inventory and add the work done on the units started and completed during the month. Then we calculate the equivalent units for the ending inventory.
The beginning inventory had 850 units, 60% complete. This means that they were 40% incomplete regarding conversion costs at the start of the month. To finish these units, Penny, Inc. would need to complete the remaining 40% of the conversion work on the 850 units which is 850 units * 40% = 340 equivalent units of conversion costs for the beginning inventory.
Since 15,000 units were started and the ending inventory was 1,600 units (40% complete), then 15,000 units - 1,600 units = 13,400 units were fully completed in July. So, we have 13,400 units * 100% = 13,400 equivalent units for the units started and completed during the month.
For the ending inventory, which is 1,600 units at 40% completion, we calculate the equivalent units as follows: 1,600 units * 40% = 640 equivalent units of conversion costs.
Adding these up gives us: 340 (completion of beginning inventory) + 13,400 (started and completed) + 640 (ending inventory) = 14,380 equivalent units of conversion costs for the month of July.
Kopa Company manufactures CH-21 through two processes: Mixing and Packaging. In July, the following costs were incurred. Mixing Packaging Raw materials used $10,000 $28,000 Factory labor costs 8,000 36,000 Manufacturing overhead costs 12,000 54,000 Units completed at a cost of $21,000 in the Mixing Department are transferred to the Packaging Department. Units completed at a cost of $106,000 in the Packaging Department are transferred to Finished Goods. Journalize the assignment of these costs to the two processes and the transfer of units as appropriate
Answer:
mixing WIP 10,000
packaging WIP 28,000
raw materials inventory 38,000
mixing WIP 8,000
packaging WIP 36,000
wages payable 44,000
mixing WIP 12,000
packaging WIP 54,000
Factory overhead 66,000
packaging WIP 21,000
mixing WIP 21,000
FInished Goods 106,000
packaging WIP 106,000
Explanation:
the cost for each department are assignet
then we transfer from mising to packing
and finally from packaging to finished goods.
Final answer:
To account for costs and transfers within Kopa Company's manufacturing processes, journal entries meticulously itemize raw materials, factory labor, and overhead by department, leading to a clear, account-based representation of costs throughout production stages.
Explanation:
To journalize the assignment of costs to the Mixing and Packaging processes and to account for the transfer of units in Kopa Company, we need to create journal entries that reflect the movement of costs through the manufacturing processes. The incurred costs include raw materials, factory labor, and manufacturing overhead for both the Mixing and Packaging departments.
Raw materials used: Mixing - $10,000; Packaging - $28,000Factory labor costs: Mixing - $8,000; Packaging - $36,000Manufacturing overhead costs: Mixing - $12,000; Packaging - $54,000The journal entries would be as follows:
Debit Work in Process (Mixing) $30,000 (sum of raw materials, labor, and overhead for Mixing) and credit Raw Materials Inventory $10,000, Factory Labor $8,000, and Manufacturing Overhead $12,000.Debit Work in Process (Packaging) $118,000 (sum of transferred cost from Mixing and costs incurred in Packaging) and credit Work in Process (Mixing) $21,000, Raw Materials Inventory $28,000, Factory Labor $36,000, and Manufacturing Overhead $54,000.Debit Finished Goods $106,000 and credit Work in Process (Packaging) $106,000 for the cost of units completed in the Packaging Department and transferred to Finished Goods.These entries ensure that costs are properly assigned to each process and that the cost of completed units is transferred to Finished Goods, ready for sale.
Suppose Kim is willing to pay $5 for her first ice cream sundae, $4 for a second ice cream sundae, and $2 for a third ice cream sundae. If Kim is able to buy all three ice cream sundaes for $2 a piece, she has realized a consumer surplus of:
Answer:
5
Explanation:
5?? okay I'm not sure here but if shes getting all 3 for 2 dollars a piece then she only spent $6 dollars. 5+4+2 is 11. 11-6 is 5
Final answer:
Kim's total consumer surplus for purchasing three ice cream sundaes is $5, calculated by summing up the savings on each sundae compared to what she was initially willing to pay.
Explanation:
If Kim is willing to pay $5 for her first ice cream sundae, $4 for a second, and $2 for a third, and she buys all three at $2 each, her consumer surplus is the total amount she saved compared to what she was willing to pay. For the first sundae, she saves $3 ($5 - $2), for the second she saves $2 ($4 - $2), and for the third, she saves nothing ($2 - $2) since it's the same as her willingness to pay. Therefore, Kim's total consumer surplus is $5 ($3 for the first sundae + $2 for the second).
Fox, Inc. is considering a five- year project that has initial after- tax outlay or after- tax cost of $170,000. The future after- tax cash inflows from its project for years 1 through 5 are $45,000 for each year. Fox uses the net present value method and has a discount rate of 11.25%. Will Fox accept the project?
Answer: Since Net Present Value is negative i.e. -4724.
[tex]\therefore[/tex] Fox will not accept the project.
Explanation:
Net Present Value = Initial after- tax outlay + Cash inflows[tex]\times[/tex]PVIFA(11.25%,5)
= -170000 + 45000[tex]\times[/tex]PVIFA(11.25%,5)
= -170000 +45000[tex]\times[/tex]3.6728
= - 4724
Since Net Present Value is negative i.e. -4724.
[tex]\therefore[/tex] Fox will not accept the project.
Consider an imaginary economy that has been growing at a rate of 4% per year. Government economists have proposed a number of policies to increase the growth rate but first need to convince the president that the policies will pay off. To do so, they want to present a comparison of the number of years it will take for the economy to double, depending on the growth rate. Using the rule of 70, determine the number of years it will take the economy to double at each growth rate. Growth Rate Years Required to Double (Percent) (Nearest whole number of years) 4 5 6
Answer:
If the rate is 4%: 70/4 = 17.5 years - about 18 years
Explanation:
The rule of seventy allows you to determine how long the amount invested will double. For this, just divide 70 by the annual rate of return. The rule of seventy can be applied intuitively for the calculation of other growth rates, such as a country's GDP.
The calculation is simple, just divide 70 by the value of the growth rate.
If the rate is 4%: 70/4 = 17.5 years - about 18 years
If the rate is 5%: 70/5 = 14 years
If the rate is 6%: 70/6 = 11.6 years - about 12 years
Using the rule of 70, we can determine the number of years it will take for the economy to double at different growth rates.
Explanation:To determine the number of years it will take for an economy to double at different growth rates, we can use the rule of 70. The rule of 70 states that the doubling time of a variable is approximately equal to 70 divided by the growth rate. Therefore, for a 4% growth rate, it will take approximately 17 years for the economy to double (70 / 4 = 17.5). For a 5% growth rate, it will take approximately 14 years (70 / 5 = 14). And for a 6% growth rate, it will take approximately 12 years (70 / 6 = 11.67).
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Splitland is a developing economy with two distinct regions. The northern region has great investment opportunities, but the people who live there need to consume all of their income to survive. Those living in the south are better off than their northern counterparts and save a significant portion of their income. The southern region, however, has few profitable investment opportunities and so most of the savings remain in shoeboxes and under mattresses. How could the development of the financial sector benefit both regions and promote economic growth in Splitland?
Answer: The presence of a financial intermediary would reduce the information costs that may have prevented the southerners from lending directly to the northerners in the past. This would promote economic growth.
Explanation: Information is key in modern societies.
The information costs that would have previously prohibited southerners from lending directly to northerners would be reduced by the establishment of a financial middleman. This would encourage economic expansion.
What is economic expansion?A real GDP expansion occurs when it takes two or more quarters to go from a low point to a high point. When the economy is stimulated, there is an increase in employment, which is followed by a rise in consumer confidence and discretionary expenditure.
The stage is additionally referred to as economic recovery. The term "business cycle" refers to a process that contains four phases: expansion, peak, contraction, and trough.
It is common knowledge that the economy is thriving during an expansion. Low interest rates, which make borrowing money affordable, considerable corporate activity, as well as significant discretionary spending, are characteristics of a thriving economy.
When expansion reaches its pinnacle, a peak happens. When there is a significant amount of demand for a good, inflation happens, and prices start to rise. Consumer spending starts to decline over time, and macroeconomic indices stop rising.
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Thirty-six percent of sales at supermarkets in the United Kingdom carry the stores' own brand names. Eighteen percent of all supermarket sales in France and Germany carry the stores' own brand names. And in the United States, 14 percent carry the stores' own brand names. These stores use a ________ strategy to sell other manufacturers' products with their own brand names.
Answer:
The correct answer is generic branding strategy.
Explanation:
A generic brand is a kind of consumer product that doesn't have a widely recognized name.
Pettifog Partnership distributes cash of $20,000, hot assets worth $5,000, and a parcel of land in a liquidating distribution to Li, a partner. The hot assets have a basis of $0 to the partnership. The land has a fair market value of $80,000 and an inside basis of $55,000. Li’s outside basis in Pettifog just prior to the distribution is $85,000. What amount of gain or loss, if any, must Li recognize and what is Li’s resulting basis in the land?
Answer:
The amount of gain that Li will have is $0 and the resulting basis of land is $60,000.
Explanation:
To take out the resulting basis of land and gain or loss , we need to know what happens in this situation of liquidating distribution. Under this liquidating distribution , the gain will only be recognized when the cash receipts that Li will receive are more than than the outside basis.
Here Li is also receiving other assets along with the cash , so the remaining balance ( which we will get by subtracting cash receipts from the Li outside basis before distribution ) will be adjusted against these assets.
Li outside basis = $85,000
(-) cash received = $20,000
(-) hot assets = $5,000
Balance left to be adjusted against assets = $60,000
Here there is no gain for Li since cash receipts are not more than than outside basis and the resulting basis in land is $60,000.
The following lots of a particular commodity were available for sale during the year Beginning inventory 10 units at $52.00 First purchase 19 units at $50.00 Second purchase 55 units at $59.00 Third purchase 14 units at $63.00 The firm uses the periodic system, and there are 27 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the LIFO method? Select the correct answer.
Answer:
Ending Inventory $1,523
COGS $4,227
Explanation:
PURCHASES
DATE QUANTY PRICE SUBTOTAL
Beginning 10 $52 $520.00
1st 19 $50 $950.00
2nd 55 $59 $3,245.00
3rd 14 $63 $882.00
Because we sold at LIFO we record the latest units as COGS and the first untis at ending invenotry.
So we start from the first line until reach the 27 units
27 - 10 beginning = 17
we are short, so we move to next line
19 - 17 = 2 with this unit we cover the ending inventory, the diference is part of COGS and all the lines below are also COGS
COGS
2 units at $50
55 units at $59
14 units at $63
Total 4,227
Ending Inventory
10 units at $52
17 units at $59
Total $1,523
For a market to be competitive:a. each buyer and seller is small, relative to the whole market; no single decision-maker has any influence over the market price.B.sellers must produce goods and services that are different from their competitors.C.sellers should have substantial pricing power.D.the price must be a fair price
Answer: Option (A) is correct.
Explanation:
Each of the buyer and seller are small when we are relating it with the whole market. so, there will be no power in the hands of a single decision maker and if a firm wants to change their prices then it will not have any influence on the market price. In a competitive market, there are large number of buyers and sellers, thus, one buyer or seller doesn't have any impact on the market price.
Answer: A
Explanation:
It's a competitive market
Harding, Jones, and Sandy, a partnership, is in the process of liquidating. The partners have the following capital account balances; $24,000, $24,000, and ($9,000) respectively. The partners share all profits and losses 16%, 48%, and 36%, respectively. Sandy has indicated that the ($9,000) deficit will be covered with a forthcoming contribution. The remaining partners have requested an immediate distribution of $20,000 in cash that is available. How should this cash be distributed?
Answer: Cash to be distributed to Harding = $ 17000, Jones = $ 3000
Explanation:
It has been indicated that the ($9,000) deficit will be covered with a forthcoming contribution
∴ The Remaining Capital Balance is = (24000 + 24000) = $48000
∵Total cash Available = $20000
Loss = 48000 - 20000 = $ 28000
Loss will be shared between Harding & Jones in ratio = 16:48
∴ Harding Capital balance = [tex]\frac{(24000 - 28000)\times16}{16+48}[/tex] = $ 17000
∴ Jones Capital balance = [tex]\frac{(24000 - 28000)\times48}{16+48}[/tex] = $ 3000
Cash will be Distributed in their capital balance ratio
Therefore,
Cash to be distributed to Harding = $ 17000, Jones = $ 3000
Answer: Cash to be distributed to Harding = $17,000, Jones = $3,000
Explanation:
24,000+24,000+20,000=68,000
16%/(16%+48%)=25%
48%/(16%+48%)=75%
68,000*25%=17,000
68,000*75%=51,000
24,000+24,000=48,000
51,000-48,000=3,000
The cost (in dollars) of producing x units of a certain commodity is C(x) = 9000 + 6x + 0.05x2. (a) Find the average rate of change of C with respect to x when the production level is changed from x = 100 to the given value. (Round your answers to the nearest cent.) (i) x = 102
Answer: 16
Explanation: Average rate of change of C with respect to X is given as
= [tex]\frac{\Delta C}{\Delta X}[/tex]
= [tex]\frac{(C(102)-C(100))}{(X(102)-X(100))}[/tex]
= [tex]\frac{ 10132.2-10100}{102-100}[/tex]
= 32/2
= 16
Final answer:
The average rate of change of the cost function C(x) from x = 100 to x = 102 is $16.10.
Explanation:
The average rate of change of the cost function C(x) from x = 100 to x = 102 is the change in C divided by the change in x. We can calculate this by finding the values of C(102) and C(100) and then computing the difference between them.
To find C(102):
C(102) = [tex]9000 + 6(102) + 0.05(102)^2[/tex] = 9000 + 612 + 520.2 = 10132.2
To find C(100):
C(100) = [tex]9000 + 6(100) + 0.05(100)^2[/tex] = 9000 + 600 + 500 = 10100
Now, find the average rate of change:
Average rate of change = [tex]\frac{(C(102)-C(100))}{(102 - 100)}[/tex] = [tex]\frac{(10132.2 - 10100)}{2}[/tex] = [tex]\frac{32.2}{2}[/tex] = 16.1
Therefore, the average rate of change of C with respect to x when the production level is changed from x = 100 to x = 102 is $16.10.
"In the past few years, McDonald’s has made a lot of changes to its menu, adding more healthy choices and more higher-priced items, such as those offered in McCafé (e.g., premium roast coffee, antibiotic-free chicken, and fruit smoothies), and has also enhanced its in-restaurant services (e.g., free, unlimited Wi-Fi; upgraded interiors). Did McDonald’s new priorities—in terms of a broader, healthier menu and an improved in-restaurant experience—require changes to its traditional value chain activities? If so, how? Try to be as specific as possible in comparing the McDonald’s from the recent past (focusing on low-cost burgers) to the McDonald’s of today."
Answer: This can be explained as follows:-
Explanation: MCdonalds change in menus and adding more healthy choices does brings change in the traditional value chain of the company.
In traditional times company was mainly focused towards the taste of the product and to make the service as fast and as efficient as possible but now the company is taking care of the health of its customers. Company wants to attract new customer base of health conscious people. In traditional times company's aim was to make quick service to get the tables ready every time a customer walks in but today company wants to make the restaurant a place where people can sit and enjoy their meal for a while and company is taking help of technology in this.
Answer:
cerngscfhdugesh sorry was cleaning keyboard
Explanation:
Managing complex projects often involves use of multidisciplinary teams (MTs) including personnel from a. different college majors. b. different organizations including subcontractors. c. different work units within the organization. d. various combinations of college majors, work units, subcontractors, and industry partners.
Answer: d. various combinations of college majors, work units, subcontractors, and industry partners.
Explanation: Managing complex projects often involves the use of multidisciplinary teams (MTs) including personnel from various combinations of college majors, work units, subcontractors, and industry partners. Managing a complex project is a work of coordination of all these teams of the project to achieve the goals. The project manager is in charge of project coordination.
This answer provides an understanding of how multidisciplinary teams (MTs) are used to manage complex projects, explaining their importance in today's rapidly changing workplace landscape. It emphasizes the diversity found in these teams and the varied types of teams seen in the business world.
Explanation:Managing complex projects involve the use of multidisciplinary teams (MTs), which can encompass members with unique skill sets from different college majors, different organizations including subcontractors, various units within the same organization, and combinations of these elements. This practice has increased in popularity due to shifts in technology, economics, globalization, foreign competition, and varying workplace demographics, necessitating a responsive and adaptable organizational structure.
Modern businesses significantly benefit from task division amongst diverse team members, just like in a restaurant where jobs of varying complexities are divided into roles like top chef, sous chefs, kitchen help, servers, greeters, janitors, and business managers. Similarly, larger, complex organizations such as hospitals or manufacturing factories can have hundreds of distinct job classifications.
Teams are categorized into three primary types: problem resolution teams, creative teams, and tactical teams. However, studies are also being conducted on the effectiveness and functionality of virtual teams, especially with the increasing globalization of organizations and the incremental reliance on digital communication.
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A home equity loan can be risky because the lender can foreclose if you don’t make your payments. True or False
Yes, a home equity loan can be risky because if payments are not made, the lender can foreclose. This risk was exacerbated by the securitization process, leading to reckless lending like subprime and NINJA loans.
Explanation:The statement is true that a home equity loan can be a risky move for borrowers because the lender has the power to foreclose if you do not make payments. A major factor responsible for this is the securitization process. The process, initially intended to redistribute risk and make lending more fluid, lost its direction when banks, not bearing the brunt of bad loans, began to lend carelessly. In the midst of this reckless lending, loans with little borrower appraisal, like subprime loans and NINJA loans, proliferated. These are loans made without sufficient regard for the borrower's ability to repay. Consequently, they became part of the complex puzzle leading to the global financial crisis, affecting home ownership adversely.
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if the total cost for producing widgets can be represented by TC = 8,000 + 0.75X, where X is the number of widgets produced and total revenue can be represented by TR = 4X, what is the breakeven value for number of widgets produced?
Answer: The breakeven value for the number of widgets produced is 2462.
Explanation:
The Breakeven point is the point where the total revenue of a particular firm is equal to the total cost of that firm,
TR = TC
4X = 8000 + 0.75X, where X is number of widgets produced
3.25X = 8000
X = [tex]\frac{800000}{325}[/tex]
X = 2462
So, this is the breakeven value for the number of widgets produced.
The marketing manager of Griffin Corporation has determined that a market exists for a telephone with a sales price of $36 per unit. The production manager estimates the annual fixed costs of producing between 40,000 and 80,000 telephones would be $450,000. Required Assume that Griffin desires to earn a $150,000 profit from the phone sales. How much can Griffin afford to spend on variable cost per unit if production and sales equal 50,000 phones?
Griffin Corporation can spend up to $24 per phone unit on variable costs to meet its projected profit goal of $150,000, considering fixed costs and the sales price of each unit.
Explanation:To calculate how much Griffin Corporation can afford to spend on variable cost per unit, we need to determine the total available budget for production. Firstly, the total profit goal, including fixed costs, is $600,000 ($450,000 fixed costs + $150,000 desired profit). The sales revenue from 50,000 phones at $36 each would be $1,800,000. So, the difference between sales revenue and the total profit goal gives us the total budget available for variable costs, which is $1,200,000 ($1,800,000-$600,000). Finally, dividing the total variable cost budget by the total number of phones produced provides the maximum amount that can be spent on variable costs per unit. Therefore, Griffin can afford to spend $24 ($1,200,000÷50,000) per phone unit on variable costs.
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Griffin Corporation can afford to spend $24 per unit on variable costs to achieve a desired profit of $150,000, given their annual fixed costs and the sales price of the telephones.
Calculation
Sales Price per Unit (SP): $36Fixed Costs (FC): $450,000Desired Profit (P): $150,000Units Sold (Q): 50,000Formulating the Equation
We can use the contribution margin formula:
Total Revenue (TR) = SP * QTotal Costs (TC) = FC + (Variable Cost per Unit (VC) * Q)For Griffin to achieve its desired profit:
TR = TC + P
SP * Q = FC + (VC * Q) + P
$36 * 50,000 = $450,000 + (VC * 50,000) + $150,000
Simplifying:
$1,800,000 = $600,000 + (VC * 50,000)
Solving for VC
Subtracting the fixed cost and desired profit from total revenue:
$1,800,000 - $600,000 = VC * 50,000
$1,200,000 = VC * 50,000
VC = $1,200,000 / 50,000
VC = $24 per unit
Therefore, Griffin can afford to spend $24 on variable costs per unit to achieve the desired profit.
Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $13,500 (original cost of $31,000 less accumulated depreciation of $17,500) and a fair value of $9,300. Kapono paid $23,000 cash to complete the exchange. The exchange has commercial substance. Required: 1. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor? 2. Assume the fair value of the old tractor is $17,000 instead of $9,300. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?
Answer:
1. Gain or loss on exchange = $4,200 (Loss)
Initial value of the new tractor = $32,300
2. In case the fair value of old tractor = $17,000
Gain or loss on exchange = $3,500 Gain
Initial value of the new tractor = $40,000
Explanation:
Note: When a transaction has commercial substance, it means it is marketable and can be sold at fair value provided, in that case book value of old asset to be sold is not considered for calculating initial cost of new asset.
Since the transaction has commercial substance
Fair value of the old tractor will be considered.
Cost of new tractor = Cash paid + Fair value of old tractor
= $23,000 + $9,300 = $32,300
1. Gain or loss on exchange = Exchange value of old tractor - Book value of old tractor
Exchange value of old tractor = Fair value of old tractor as transaction had commercial substance = $9,300
Gain or loss on exchange = $9,300 - $13,500 = -$4,200 (Loss)
Initial value of the new tractor = Cost of new tractor as computed above = $32,300
2. In case the fair value of old tractor = $17,000
Then
Gain or loss on exchange = Exchange value of old tractor - Book value of old tractor = $17,000 - $13,500 = $3,500 Gain
because exchange value of old tractor = Fair value of old tractor as transaction had commercial substance
Initial value of the new tractor = Cost of new tractor = $23,000 + $17,000 = $40,000
Final Answer is as follows:
1. Gain or loss on exchange = $4,200 (Loss)
Initial value of the new tractor = $32,300
2. In case the fair value of old tractor = $17,000
Gain or loss on exchange = $3,500 Gain
Initial value of the new tractor = $40,000
Kapono Farms would recognize a loss of $4,200 with the new tractor valued at $32,300 in the first scenario and a gain of $3,500 with the new tractor valued at $40,000 in the second scenario.
Explanation:1. For the first scenario, Kapono Farms would recognize a loss on the exchange since the fair value of the old tractor ($9,300) is less than its book value ($13,500). The loss would be $4,200 ($13,500 - $9,300). The initial value of the new tractor would be the sum of the fair value of the old tractor and the additional cash paid, i.e. $9,300 + $23,000 = $32,300.
2. For the second scenario, where the fair value of the old tractor is deemed to be $17,000, Kapono Farms would recognize a gain on the exchange as the fair value exceeds the book value. The gain would be $3,500 ($17,000 - $13,500). The initial value of the new tractor would be the sum of the fair value of the old tractor and the additional cash paid, i.e. $17,000 + $23,000 = $40,000.
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If U.S. auto manufacturers cut the prices of their vehicles to sell a greater quantity, buyers may assume that the lower price implies _____________ compared to foreign manufactured vehicles.
Answer: Lower quality
Explanation: U.S auto industry comes under the oligopoly market structure with small number of sellers operating at very large scale. In an oligopoly market structure, the firms in the industry compete on the basis of advertising, product differentiation etc. and not on price.
If US auto manufacturers do so, buyers will surely assume that the quality of product offered is lower than others.
earned $ 155,000 of service revenue during 2018. Of the $ 155,000 earned, the business received $ 135.000 in cash. The remaining amount, $ 20,000, was still owed by customers as of December 31. In addition, Total Spa Services incurred $ 82,000 of expenses during the year. As of December 31, $ 8,000 of the expenses still needed to be paid. In addition, Total Spa Services prepaid $ 7,000 cash in December 2018 for expenses incurred during the next year. 1. Determine the amount of service revenue and expenses for 2018 using a cash basis accounting system 2. Determine the amount of service revenue and expenses for 2018 using an accrual basis accounting system.
Answer:
1.- revenue 142,000
expenses 81,000
2.- revenue 155,000
expenses 82,000
Explanation:
1) 135,000 cash proceed from services + 7000 prepaid services = revenue under cash basis accounting 142,000
beginning payable + incurred - ending= paid
7,000 + 82,000 - 8,000 =81,000
2) under accrual basis accounting it will count the earned services only,
and the incurred expenses for the period.
According to the Gordon growth model, what is an investor's valuation of a stock whose last dividend was $1.00 per year if dividends are expected to grow at a constant rate of 10 percent over a long period of time and the investor's required return is 16 percent?
Answer:
The investor valuation of a stock is $18.33
Explanation:
Gordon Growth model : The formula to compute investor valuation of stock is shown below:
= Dividend of year 1 ÷ (Required rate - growth rate)
where,
year 1 dividend = year 0 dividend × (1 + growth rate)
= $1 × (1 + 0.10)
=$1.10
Required rate of return = 16%
And, growth rate = 10%
Now apply the above formula which is equals to
= $1.10 ÷ (16% - 10%)
= $18.33
Hence, The investor valuation of a stock is $18.33
Final answer:
Using the Gordon growth model and given a last dividend of $1.00 with a 10% growth rate and a 16% required return, an investor would value the stock at $18.33.
Explanation:
According to the Gordon growth model (also known as the Dividend Discount Model), the value of a stock is calculated by dividing the next year's expected dividend by the difference between the investor's required rate of return and the dividend growth rate. In this case, since the last dividend was $1.00 and the dividends are expected to grow at a constant rate of 10 percent, the next expected dividend will be $1.00 multiplied by (1 + 10%), which equals $1.10. Given an investor's required return of 16 percent, the formula for the stock valuation would be:
Stock Value = Next Year's Dividend / (Required Return - Dividend Growth Rate) = $1.10 / (0.16 - 0.10) = $1.10 / 0.06 = $18.33.
Therefore, based on the Gordon growth model, an investor would value the stock at $18.33.
On April 2, 2018, Montana Mining Co. pays $3,721,000 for an ore deposit containing 1,525,000 tons. The company installs machinery in the mine costing $213,500, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Montana begins mining on May 1, 2018, and mines and sells 166,200 tons of ore during the remaining eight months of 2018. Prepare the December 31, 2018, entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mine’s depletion. (Round your unit depreciation and depletion rates to 2 decimal places.)
Answer:
Dep expense 428,796
Acc Depp Machine 23,268
Acc dep deposit 405,528
Explanation:
213,5000 machine used in the ore deposit, so it will depreciate at the same rate.
3,721,000 ore deposit
166,200/1,525,000 = 0.108983606
213,500 x 0.108983606 = 23,268
3,721,000 x 0.108983606 = 405,528
Why do economists calculate GDP by both the expenditure approach and the income approach?a. economists disagree on the best measureb. the combined methods provide a more accurate measure of GDPc. some economists learned to do it one way and others learned anotherd. these are really just two different names for the same thing
Answer: Option (b) is correct.
Explanation:
Economists are generally using both the methods for calculating GDP because the combined estimates from both the methods provides a more appropriate measure of GDP.
For instance, there is an construction industry and for this industry all the costs incurred before the generation of income. So, expenditure method is more appropriate for this type of industry.
Alternatively, in the service sector income method is more appropriate than the expenditure method.
Answer:
the combined methods provide a more accurate measure of GDP.
Explanation:
Nash's Trading Post, LLC on July 15 sells merchandise on account to Tayler Co. for $2800, terms 1/10, n/30. On July 20 Tayler Co. returns merchandise worth $1000 to Nash's Trading Post, LLC. On July 24 payment is received from Tayler Co. for the balance due. What is the amount of cash received?
Answer:
Cash received 1,782
Explanation:
Sales Revenue 2,800
Return Goods 1,000 (customer return goods for this amount)
Sales after return 1,800 (original value less returns)
payment is due within discount period.
The terms are 1% discount within the first 10 days The payment is done at July 24th. Which is the nineth day.
1% discount of 1,800 = 18
Cash receipts 1,800 sale - 18 discounts = 1,782
House Loan. Suppose you take out a home mortgage for $180,000 at a monthly interest rate of 0.5%. If you make payments of $1000/month, after how many months will the loan balance be zero?
Answer:
It will be after 462 months
Explanation:
We use the annuity formula for present value
[tex]C * \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
We post our know values and start solving for time:
[tex]1000 * \frac{1-(1+0.005)^{-time} }{0.005} = 180,000[/tex]
First we clear the dividend:
[tex]1-(1+0.005)^{-time} = 180,000/1000\times 0.005[/tex]
Then we clear for the power
[tex](1.005)^{-time} = 1-0.9[/tex]
We set up the formula using logarithmic
[tex]log_{1.005}\: 0.1 = -time[/tex]
And use logarithmic properties to solve for time:
[tex]\frac{log\:0.1}{log\:1.005} = -time[/tex]
[tex]-461.6673541 = -time[/tex]
time 462 months
Which of the following is an advantage of flexible manufacturing technologies? They have reduced the importance of technological innovation in industries. They have made shorter production runs economical. They have increased the importance of production economies of scale. They eliminate the need for differentiation from competitors.
Answer:
They have increased the importance of production economies of scale.
Explanation:
Flexible production allows the manufacture of different types of products in the same industrial production line. This makes companies lower costs by avoiding tool change, time savings, and industry structure.
This type of economy fits into the description of economies of scale. Economies of scale are those where the increase in production results in a decrease in the average cost of the product. Increasing production - by including more products on the production line - without a proportional increase in the factory's installed capacity leads to a reduction in the average cost of production, ie it is an economy of scale.
Mauro Products distributes a single product, a woven basket whose selling price is $21 per unit and whose variable expense is $18 per unit. The company’s monthly fixed expense is $8,100. Required: 1. Calculate the company’s break-even point in unit sales. 2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales
Answer:
1. Break even points in units will be = 2,700 units
2. Break-even point in dollar sales = $56,700
3. In case fixed expense increase by $600 then Break even point in unit sales = 2,900 units
Explanation:
Break even point = [tex]\frac{Fixed Cost}{Contribution per unit}[/tex]
Fixed Cost = $8,100
Contribution per unit = Sale Price - Variable Cost = $21 - $18 = $3
1. Break even points in units will be
= [tex]\frac{8,100}{3} = 2,700 units.[/tex]
2. Break-even point in dollar sales
= Break even point in units X Sale price per unit
= 2,700 units X $21 = $56,700
3. In case fixed expense increase by $600 then Break even point in unit sales
= [tex]\frac{8,100 + 600}{3}[/tex] = 2,900 units
Final Answer
1. Break even points in units will be = 2,700 units
2. Break-even point in dollar sales = $56,700
3. In case fixed expense increase by $600 then Break even point in unit sales = 2,900 units
To calculate the break-even point in units and dollars for Mauro Products, one can use the formulas considering fixed costs, selling price, and variable cost per unit. For Doggies Paradise Inc., a table reflecting the relation between total revenue, marginal revenue, total cost, and marginal cost is created to determine the profit-maximizing quantity where MR equals MC.
Explanation:The student's question involves calculating the break-even point in unit and dollar sales for Mauro Products, and analyzing the impact of increased fixed expenses on this break-even point. Furthermore, the student seeks assistance with understanding profit maximization in the context of Doggies Paradise Inc. and WipeOut Ski Company, using concepts such as total revenue, marginal revenue, total cost, and marginal cost.
Calculation for Mauro Products:To calculate the break-even point in units, we use the formula: Break-Even Point (units) = Fixed Costs / (Selling Price per Unit - Variable Expense per Unit). With a selling price of $21, variable expense of $18 per unit, and fixed expenses of $8,100, the break-even point in units would be 8,100 / (21 - 18), which is 2,700 units.To find the break-even point in dollar sales, multiply the break-even point in units by the selling price per unit. So, the break-even point in dollar sales is 2,700 units * $21 = $56,700.With an increase in fixed expenses by $600, the new fixed expenses become $8,100 + $600 = $8,700. The new break-even point in unit sales becomes 8,700 / (21 - 18), which is 2,900 units.Profit Maximization for Doggies Paradise Inc:Profit maximization occurs where marginal revenue (MR) equals marginal cost (MC). To find this, we need a table of output levels 1 to 5, calculating total revenue (number of units * selling price), marginal revenue (change in total revenue / change in quantity), total cost (fixed cost + total variable cost), and marginal cost (change in total cost / change in quantity). For Doggies Paradise Inc., the total revenue at each output level is $72, $144, $216, $288, and $360 respectively, since each coat sells for $72. The marginal revenue is constant at each level ($72) due to the nature of a perfectly competitive market. Total cost at each output level is the fixed cost ($100) added to the corresponding total variable cost, and the marginal cost can be calculated for each incremental unit. The profit-maximizing quantity is where MR equals MC, before MC starts to exceed MR.
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Suppose the amounts presented here are basic financial information (in millions) from the 2019 annual reports of Nike and Adidas. Nike Adidas Sales revenue $19,887.0 $10,584.0 Allowance for doubtful accounts, beginning 80 120 Allowance for doubtful accounts, ending 110 126 Accounts receivable balance (gross), beginning 2,924 1,736 Accounts receivable balance (gross), ending 2,948 1,534 Calculate the accounts receivable turnover for both companies. (Round answers to 1 decimal place, e.g. 12.5.) Nike Adidas Accounts receivable turnover times times
Answer:
Both Companies have an Account Receivable turnover of 7.00 (seven)
Explanation:
(for future question it would be better if you upload an image with the table this is quite confusing)
[tex]\left[\begin{array}{ccc}-&Nike&Adidas\\sales&19887&10584\\B AR&2924&1736\\B all&80&120\\Net AR&2844&1616\\E AR&2948&1534\\E all&110&126\\Net AR&2838&1408\\\end{array}\right][/tex]
Account Receivable TurnOver Formula
[tex]\frac{net \: credit \: sales}{average \: account \: receivable} = AR \: TurnOver[/tex]
Where:
[tex]average \: AR = (beginning \: AR + ending \: AR) \div 2[/tex]
Nike:(2844+2838)/2 = 2841 Average Inventory
[tex]\frac{19887}{2841} = 7.00 \: AR \: turnOver[/tex]
Adidas(1616+1408)/2 = 1512 Average Inventory
[tex]\frac{10584}{1512} = 7.00 \: AR \: turnOver[/tex]
Suppose the standard deviation of the losses had been $3000 instead of $1000. What would the larger standard deviation do to the width of the confidence interval (assuming the same level of confidence)?
Answer:
As the standard deviation increases from $1000 to $3000, this will cause the confidence interval to go more wider.
Explanation:
Confidence interval is a tool used by many statisticians to take out the estimate amount of uncertainty which is associated when a sample estimate is taken out of a population parameter.
Standard deviation is a tool which is used to measure the amount of variations and when this standard deviation increases this means that the amount variations also increases and thus the confidence interval will go more wider as standard deviation shifts from $1000 to $4000 as given in this case.
A variance is ________.A) the difference between actual fixed cost per unit and standard variable cost per unitB) the standard units of inputs for one output C) the difference between an actual result and a budgeted performanceD) the difference between actual variable cost per unit and standard fixed cost per unit
Answer:
C) the difference between an actual result and a budgeted performance.
Explanation:
A variance is the difference between an actual result and a budgeted performance.
A variance is the difference between an actual result and a budgeted performance.
"Ceteris paribus" means demand will change when price changesa. no matter what other factors may influence the marketb. if other market factors remain constantc. only if the supply also does not changed. only in the short-term
Answer:
The correct answer is option b.
Explanation:
The term Ceteris paribus is a Latin phrase which means holding other things constant.
Ceteris paribus in the law of demand means keeping other market constant, the demand for a commodity will change with change in the price.
The other market factors here are income, population, taste and preferences etc.
Final answer:
Ceteris paribus means 'other things being equal' and is used when analyzing how changes in one variable, like price, affect demand or supply, assuming all other factors are held constant. It is a fundamental economic principle for isolating the effects of one variable on another in economic analysis.
Explanation:
Ceteris paribus is a Latin phrase that translates to "other things equal" and is commonly used in economics to describe a situation where all other variables are held constant while analyzing the relationship between two specific variables. This concept is key when examining the effect that changes in price have on the demand or supply of a good or service. When we say demand will change when price changes ceteris paribus, we mean that demand will only change because of the price movement if other market factors remain constant (b).
In real-world economics, demand and supply are influenced by various factors such as consumer income, the price of other goods, and production costs. To rigorously understand the impact of price changes, economists assume a ceteris paribus condition where these other factors do not change. This approach allows economists to isolate the effect of the price change on demand or supply without interference from other variables.
If any factors other than the price were to change, such as a shift in consumer tastes or a technological advancement in production, the corresponding demand or supply schedule would need to be reassessed to reflect these changes. Thus, the ceteris paribus assumption is crucial for simplifying the complex relationships in economic analysis and is not indicative of short-term analysis nor does it apply when other variables, including supply, change.