Answer:
The GDP for Mario-opolis for 2019 is $145,000,000
Explanation:
GDP: The full form of GDP is the Gross domestic product. It shows all the products and services which are produced and rendered in a particular year. The value of all products and service records only market value.
The production and the rendering of services should be done for a domestic country only. No other or outside countries should come under GDP, nor they record any previous or future production, expenses.
So, the GDP amount would be
= Government in Mario-opolis spends on food and cars produced in Mario-opolis in 2019 + Firms in Mario-opolis spend on equipment made in Mario-opolis in 2019 + People in Mario-opolis spend on uniforms produced in Maribel-stan in 2019 + People in Mario-opolis also spend on food and cars produced in Mario-opolis in 2019
= $100,000,000 + $5,000,000 + $10,000,000 + $30,000,000
= $145,000,000
Arturo Manufacturing, Inc. provided the following information for the year: Beginning Balancelong dashWork-in-Process Inventory $ 152 comma 000 Ending Balancelong dashWork-in-Process Inventory 63 comma 000 Beginning Balancelong dashDirect Materials 269 comma 000 Ending Balancelong dashDirect Materials 52 comma 200 Purchaseslong dashDirect Materials 131 comma 000 Direct Labor 73 comma 120 Indirect Materials 52 comma 700 Indirect Labor 133 comma 500 Depreciation on Factory Plant and Equipment 73 comma 780 Plant Utilities and Insurance 71 comma 600 How much is the cost of goods manufactured?
Answer:
Cost of good manufactured= $841700
Explanation:
To calculate the cost of manufactured goods we need to use the following formula:
Cost of good manufactured= Beginning work in progress+ direct materials of the period + direct labor + manufactured overhead - ending work in progress
Beginning work in progress= $152000
Direct materials = beginning inventory + purchase - ending inventory= 269000 +131000 - 52000= 348000
Direct labor= 73120
Manufactured overhead=ndirect Materials + Indirect Labor + Depreciation on Factory Plant and Equipment + Plant Utilities and Insurance= 52700 + 133500 + 73780 + 71600= $331580
Ending work in progress= 63000
Cost of good manufactured= 152000 + 348000 + 73120 + 331580 - 63000= $841700
To calculate the cost of goods manufactured, you need to consider various components like materials, labor, and overhead costs. By utilizing the given information, the total cost of goods manufactured can be calculated. In this case, the cost of goods manufactured amounts to $550,700.
The cost of goods manufactured is calculated by adding the beginning Work-in-Process Inventory to the total manufacturing costs incurred during the period and then subtracting the ending Work-in-Process Inventory. In this case, the calculation would be: Beginning Work-in-Process Inventory + Direct Materials + Direct Labor + Indirect Materials + Indirect Labor + Depreciation + Plant Utilities and Insurance - Ending Work-in-Process Inventory.
Using the values provided in the question, the cost of goods manufactured would be: $152,000 + $131,000 + $73,120 + $52,700 + $133,500 + $73,780 + $71,600 - $63,000 = $550,700.
The Betterbilt Construction Company designs and builds residential mobile homes. The company is ready to construct, in sequence, 16 new homes of 2,400 square feet each. The successful bid for the construction materials in the first home is $64,800, or $27 per square foot. The purchasing manager believes that several actions can be taken to reduce material costs by 8% each time the number of homes constructed doubles. Based on this information, a. What is the estimated cumulative average material cost per square foot for the first five homes? b. What is the estimated material cost per square foot for the last (16th) home?
Answer:
(a) The estimated cumulative average material cost per square foot for the first five homes is $24.47.
(b) The estimated material cost per square foot for the last (16th) home is $19.34.
Explanation:
(a) If the cost its reduced by 8% every time the number of homes is doubled, we can express the cost of the first five houses as
C1 = C
C2 = C*(1-0.08)=0.92*C
C3 = C2 = 0.92*C
C4 = C2*(1-0.08)=0.92*0.92*C = 0.8464*C
C5 = C4 = 0.8464*C
Then, the average cost of the first five houses is
[tex]\bar{C}=(1/5)*(C1+C2+C3+C4+C5)\\\\\bar{C}=(1/5)*(C+0.92C+0.92C+0.8464C+0.8464C)\\\\\bar{C}=(1/5)*4.5328*C = 0.90656*C=0.90656*27=24.47[/tex]
The estimated cumulative average material cost per square foot for the first five homes is $24.47.
For the 16th home, the number we can estimate that the number of homes double 4 times: at house number 2,4, 8 and 16.
Other way to calculate that is [tex]n=log_2(16)=4[/tex]
We can write the cost of the 16th house as
[tex]C_{16}=0.92*C_8=0.92^{2} *C_4=0.92^{3} *C_2=0.92^{4} *C\\\\C_{16}=0.92^{4} *C=0.716*C=0.716*27=19.34[/tex]
The estimated material cost per square foot for the last (16th) home is $19.34.
The estimated cumulative average material cost per square foot for the first five homes is $22.61. The estimated material cost per square foot for the 16th home is $16.42.
Explanation:To find the estimated cumulative average material cost per square foot for the first five homes, we need to apply the 8% reduction in material costs each time the number of homes doubles. Let's calculate:
The material cost for the first home is $27 per square foot, so the estimated material cost for the second home would be $27 - 8% of $27 ($2.16) = $24.84 per square foot.The estimated material cost for the third home would be $24.84 - 8% of $24.84 ($1.99) = $22.85 per square foot.The estimated material cost for the fourth home would be $22.85 - 8% of $22.85 ($1.83) = $21.03 per square foot.The estimated material cost for the fifth home would be $21.03 - 8% of $21.03 ($1.68) = $19.35 per square foot.Therefore, the estimated cumulative average material cost per square foot for the first five homes is $(27+24.84+22.85+21.03+19.35)/5 = $22.61 per square foot.
To find the estimated material cost per square foot for the last (16th) home, we need to apply the 8% reduction eight times since the number of homes doubles four times.
The estimated material cost for the 16th home would be $27 - (8% of $27) * 8 = $16.42 per square foot.
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The stockholders' equity of Gorsky Company at the beginning and end of 2018 totaled $ 125,000 and $ 131,000, respectively. Assets at the beginning of 2018 were $ 145,000. If the liabilities of Gorsky Company increased by $ 71,000 in 2018, how much were total assets at the end of 2018? Use the accounting equation.
Answer:
The assets at the end of 2018 will be for 222,000
Explanation:
We solve using the accounting equation:
Assets = Liabilities + Equity
2017
Equity 125,000
Assets 145,000
Assets = Liabilities + Equity
145,000 = Liabilities + 125,000
145,000 - 125,000 = Liabilities
Liaiblities = 20,000
2018
Equity 131,000
"Liabilities increase by 71,000"
Liabilities = 2017 + increase = 20,000 + 71,000 = 91,000
Assets = Liabilities + Equity
Assets = 91,000 + 131,000 = 222,000
Which of the following statements about property dividends is not true?
a. A property dividend is usually in the form of securities of other companies.
b. A property dividend is also called a dividend in kind.
c. The accounting for a property dividend should be based on the carrying value (book
value) of the nonmonetary assets transferred.
d. All of these statements are true.
Answer:
c. The accounting for a property dividend should be based on the carrying value (book
value) of the non-monetary assets transferred.
Explanation:
As per the Generally Accepted Accounting Principles which states the basic laws for accounting any transaction, states that,
The property dividends that is dividend distributed not in cash but dividend in the form of property like land and building, securities, other assets, etc: shall be recorded at net fair value.
These dividend are not recorded at carrying book values of the property given.
In the RST partnership, Ron's capital is $80,000, Stella's is $75,000, and Tiffany's is $50,000. They share income in a 3:2:1 ratio, respectively. Tiffany is retiring from the partnership. Each of the following questions is independent of the others.
38. Refer to the above information. Tiffany is paid $60,000, and no goodwill is recorded. In the journal entry to record Tiffany's withdrawal:
A. Tiffany, Capital will be credited for $60,000.
B. Ron, Capital will be debited for $5,000.
C. Stella, Capital will be debited for $4,000.
D. Cash will be debited for $60,000.
Answer:
C. Stella, Capital will be debited for $4,000.
Explanation:
As for the provided information, we have,
Out of all the partner's Tiffany is retiring.
Tiffany's capital balance = $50,000
On his retirement he is paid $60,000
Since no goodwill is recorded, the excess amount paid over capital = $60,000 - $50,000 = $10,000, will be debited in remaining partner's ratio.
Ron's share in these $10,000 = $10,000 [tex]\times[/tex] 3/(3+2) = $6,000
Stella's share = $10,000 [tex]\times[/tex] 2/(2+3) = $4,000
Thus, Correct answer is debiting Ron's capital by $6,000 and Stella's capital by $4,000
Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. Microeconomics Macroeconomics A firm's decision about the size of its new factory The effects of the Internet on the pricing of used cars The effect of a large government’s budget deficit on the economy's price level A consumer's optimal choice when buying a flat-screen TV
Explanation:
In this question we need to categorize the given statements in either micro or macro economics.
Micro economics deals with the economics at individual, group or company level. Macro economics deals with the economics at national or international level.
So the statements are categorized as follows:
1) A firm's decision about the size of its new Factory. Micro Economics.
2) The effects of the internet on the pricing of used cars. Macro Economics
3) The effect of a large government's budget deficit on the economy's price. Macro Economics.
4) A consumer's optimal choice when buying a flat screen TV. Micro Economics.
Final answer:
The firm's factory decision and a consumer's choice of TV fall under microeconomics, while the impact of the budget deficit on price levels is a macroeconomic issue. The effects of the Internet on pricing can relate to microeconomics.
Explanation:
Microeconomics vs. Macroeconomics
To determine whether the topics provided would be studied in microeconomics or macroeconomics, we look at the scale and scope of the issues. A firm's decision about the size of its new factory and a consumer's optimal choice when buying a flat-screen TV are individual decisions, thus they fall under microeconomics, which studies individual decision-making units such as consumers and firms.
On the other hand, the effects of the Internet on the pricing of used cars can be seen from both perspectives; however, it typically relates to market dynamics and therefore can be associated with microeconomics. The effect of a government's budget deficit on the economy's price level is a broad issue that impacts the economy as a whole, therefore it is studied within macroeconomics.
9 . Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Jacob needed money for some unexpected expenses, so he borrowed $2,138.41 from a friend and agreed to repay the loan in three equal installments of $800 at the end of each year. The agreement is offering an implied interest rate of . Jacob’s friend, Devan, wants to go to business school. While his father will share some of the expenses, Devan still needs to put in the rest on his own. But Devan has no money saved for it yet. According to his calculations, it will cost him $31,897 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $3,800 at the end of every year in a mutual fund, from which he expects to earn a fixed 6% rate of return. It will take approximately for Devan to save enough money to go to business school.
To calculate the implied interest rate and period, we can use the future value of an annuity formula. For Jacob's loan, we can find the implied interest rate by solving an equation. For Devan's savings, we can use the formula to calculate the time it will take him to save enough money for business school.
Explanation:The implied interest rate and period can be calculated using the formula for the future value of an annuity. For Jacob's loan of $2,138.41, with three equal installments of $800, the implied interest rate can be determined by finding the annuity's future value and then calculating the interest rate. To do this, we can solve the equation:
2,138.41 = 800 × [(1 + r)³ - 1] / r
We can then use numerical methods or an online annuity calculator to find the implied interest rate. For Devan's situation, we can use the future value of an annuity formula to calculate how long it will take him to save enough money for business school. The formula is:
PV = PMT × [(1 - (1 + r)⁻ⁿ) / r]
By substituting the given values, such as PV = $31,897, PMT = $3,800, and r = 6%, we can solve for n to find the approximate time.
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Losses and business failures a. illustrate why government subsidies are necessary if resources are going to be allocated efficiently. b. will help redirect resources away from unproductive projects. c. reflect that buyers value the product highly relative to costs. d. indicate that sellers are producing the commodity at the lowest possible cost.
Answer:
b. will help redirect resources away from unproductive projects
Explanation:
When a project return are lower, it is destroying capital as the return are lower than the cost to generate the capital.
Therefore, when the business stop generating income or it does losses or lower returns than the cost of capital either case, it will stop funding.
The investor will stop funding that unproductive projects and move to better projects and business which yields a gain.
Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its factory. Classify the below items into the following categories: (a) direct materials, (b) direct labor, and (c) manufacturing overhead. Item Category 1. Salaries for assembly line inspectors. select a category 2. Insurance on factory machines. select a category 3. Property taxes on the factory building. select a category 4. Factory repairs. select a category 5. Upholstery used in manufacturing furniture. select a category 6. Wages paid to assembly line workers. select a category 7. Factory machinery depreciation. select a category 8. Glue, nails, paint, and other small parts used in production. select a category 9. Factory supervisors’ salaries. select a category 10. Wood used in manufacturing furniture.
Answer:
1. Salaries for assembly line inspectors - Direct labor or Manufacturing overhead
2. Insurance on factory machines - Manufacturing overhead
3. Property taxes on the factory building - Manufacturing overhead
4. Factory repairs - Manufacturing overhead
5. Upholstery used in manufacturing furniture - Direct materials
6. Wages paid to assembly line workers - Direct labor
7. Factory machinery depreciation - Manufacturing overhead
8. Glue, nails, paint, and other small parts used in production - Manufacturing overhead
9. Factory supervisors’ salaries - Manufacturing overhead
10. Wood used in manufacturing furniture - Direct materials
A product manager is eager to develop a new product idea. To gain approval to do so, the product manager orders the research team to survey a small group of customers that have been briefed on the product concept already and who reacted favorably to it. This type of research effort is known as _____(A) sugging.(B) advocacy research.(C) product research.(D) consumer research.(E) focus group research.
Final answer:
The product manager's research approach, where a small group of customers who have previously shown approval are surveyed, is known as advocacy research. The correct option is (B).
Explanation:
The product manager is employing a type of research known as advocacy research. This occurs when a research team surveys a group of customers who are already familiar with a product concept and have previously reacted favorably to it.
This is done to ensure that the data collected will support the development and approval of the new product idea. While this approach can provide insights, it risks bias as it does not represent a broad and unbiased sampling of potential customers.
Correct product development requires the design team to choose one concept, using a structured decision process, where each concept is evaluated against certain constraints and criteria. The best concept that meets these requirements is then selected for implementation.
Additionally, buy-in from all stakeholders, especially in conducting consumer research, is crucial for the smooth running of the project and for obtaining genuine feedback that can inform future project design.
Stockholders' Equity Section of Balance SheetThe following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year:Common Stock, $15 par $181,500Paid-In Capital in Excess of Par 14,520Paid-In Capital from Sale of Treasury Stock 7,800Retained Earnings 300,000Treasury Stock 11,305Prepare the Stockholders' Equity section of the balance sheet as of June 30. Fifty thousand shares of common stock are authorized, and 595 shares have been reacquired.Goodale Properties Inc.Stockholders' EquityJune 30, 20XX
Answer: $492,515
Explanation:
Total Paid-In Capital:
= 12,100 shares of common stock at $15 par + Paid in capital in excess of par -Common Stock + Paid in capital from Sale of treasury stock
= $181,500 + 14,520 + 7,800
= $203,820
Total Stockholders' Equity = Total Paid-In Capital + Retained Earnings - Treasury stock
= $203,820 + 300,000 - 11,305
= $492,515
Charles lackey operates a bakery in Idaho, Falls Because of its excellent product location, demand has increased by 35% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be backed at one time. this new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,800 loaves per month. Employees are paid $8.00 per hour. In addition to the labor cost, Charles has a constant utility cost per month of $800 and a per loaf ingredient cost of $0.40.
current multifactor productivity for 640 work hours per month=
Answer: 0.27 loaves per dollar
Explanation:
Given that,
Bakery currently makes(Output) = 1,800 loaves per month
Paid Employees = $8.00 per hour
Constant utility cost = $800 per month
Ingredient cost = $0.40 × 1,800
= $720
Wages = 640 work hours × $8.00 per hour
= $5,120 per month
Total cost (Input) = Ingredient cost + Wages + Constant utility cost
= $720 + $5,120 + $800
= $6,640
Where,
O/P - Output
I/P - Input cost
current multi factor productivity = [tex]\frac{O/p}{I/P\ cost}[/tex]
= [tex]\frac{1,800}{6,640}[/tex]
= 0.27 loaves per dollar
how do debits to a bank accounts help us understand why subtracting a negative number result in addition?
Answer:
See explanation below
Explanation:
Subtracting a negative number result in addition, also as debiting a negative amount instead of crediting a positive number have the same outcome:
Debits to a bank account help us understand why subtracting a negative number results in addition.
Explanation:In accounting, a debit is an entry that represents an increase in assets or a decrease in liabilities. When we subtract a negative number, it is equivalent to adding a positive number. This is because subtracting a negative is the same as adding a positive. Let's take an example:
A bank account has a balance of $100.A debit of -$50 is made to the bank account.To find the new balance, we can subtract the negative number: $100 - (-$50).The subtraction can be rewritten as addition: $100 + $50.The new balance of the bank account is $150.Therefore, debits to a bank account help us understand why subtracting a negative number results in addition.
On January 1, the Molding Department had 4,000 dolls in process. These dolls were 100% complete with respect to direct materials and 70% complete with respect to conversion cost. During January, Molding completed 79,000 dolls. On January 31, Molding had 7,000 dolls in work in process. These dolls were 100% complete with respect to direct materials and 25% complete with respect to conversion cost. What are the Molding Department's equivalent units related to materials for January? A) 79,000 B) 86,000 C) 89,000 D) 93,000
Final answer:
To calculate the equivalent units of materials, add the units completed during the month to the units in process at the end of the month, assuming all are 100% complete with respect to materials, which yields 86,000 equivalent units. The correct option is b.
Explanation:
The question is asking for the equivalent units of materials for the Molding Department in January. To find this, we must account for the units in process at the beginning of the month, the units completed during the month, and the units still in process at the end of the month.
At the beginning of January, there were 4,000 dolls in process which were 100% complete with respect to materials. During January, 79,000 dolls were completed. On January 31, there were 7,000 dolls in work in process, and these were also 100% complete with respect to materials. To calculate the equivalent units for materials, we simply add the dolls completed with those in process since they are all fully complete in terms of materials, regardless of the conversion costs.
The equivalent units of materials for January is:
79,000 (completed) + 7,000 (ending work in process) = 86,000
Final answer:
The Molding Department's equivalent units related to materials for January is 86,000, which includes 79,000 dolls completed and 7,000 dolls in work in process by the end of January, all at 100% complete with respect to direct materials.
Explanation:
To determine the Molding Department's equivalent units related to materials for January, we need to consider both the dolls that were completed during January and the dolls that were started but not completed by the end of January.
First, we account for the 79,000 dolls that the department completed during the month. Since these are 100% complete with respect to direct materials, they are counted fully towards the equivalent units for materials.
Next, we consider the 7,000 dolls that were in work in process at the end of January. These dolls were also 100% complete with respect to direct materials. Therefore, they too are counted fully towards the equivalent units for materials.
Adding these figures together, the Molding Department's equivalent units related to materials for January is:
Completed dolls: 79,000 equivalent units
Work in process dolls: 7,000 equivalent units
Total equivalent units for materials: 79,000 + 7,000 = 86,000 equivalent units
The correct answer is B) 86,000.
Which of the following statements is true of a distribution channel?
a. It is almost synonymous with demand chains.
b. It traditionally encompasses outbound logistics.
c. It handles the entire process of value creation.
d. It inhibits any contribution to the world's GDP.
Answer:
The answer is: A) It is almost synonymous with demand chains.
Explanation:
A company´s distribution channel is the chain of businesses through which a good passes until it reaches its final customer.
An extremely simple example would be: Factory - Wholesale distributor - Local retail store - Customer
A demand chain is just the distribution channel but seen through the eye of the customer. It answers the following question: The good that I just bought passed through which businesses in order for me to get it?
The demand chain for the previous example would be: Customer - Local retail store - Wholesale distributor - Factory
Transportation rates:
(A) are established primarily by government regulation.
(B) are established primarily through negotiation.
(C) are lower for LTL than TL shipments.
(D) typically decrease as delivery speed increases.
(E) typically do not change when smaller shipments are consolidated.
Answer:
(B) are established primarily through negotiation.
Explanation:
Transportation rates can be referred to as the cost paid by users for transportation services. They are the negotiated economic cost of moving a traveler or a unit of freight between a specific origin and location. Rates are often visible to the consumers since transport service providers must provide this information to secure transactions.
In transportation, the scale of operations change by:
Adding more vehicles to the fleet Adding more cars to a train Increasing the size of vehicles Operating in a larger networkTransportation rates are primarily established through negotiation, reflecting the shift towards market-driven mechanisms following significant deregulation in the transport sector in both the United States and Canada.
Explanation:The question relates to the establishment of transportation rates. Historically, transportation in various forms (aviation, trucking, railroads) underwent significant deregulation starting in the late 20th century in both the United States and Canada. In the United States, under President Jimmy Carter, a series of laws were enacted that removed most regulatory barriers, allowing companies to compete more freely by setting their own rates. Similarly, Canada has seen widespread transportation deregulation since the 1980s, highlighted by the Canada Transportation Act of 1996 which removed many previous restrictions and subsidies, favoring a more competitive rate structure.
Therefore, the correct answer is:
(B) are established primarily through negotiation.This reflects the shift from government-regulated to market-driven mechanisms in determining transportation rates. The deregulation has led to more competitive pricing structures, where rates are often negotiated based on market demand, the type of goods being transported, and the specifics of the service provided (e.g., delivery speed and shipment size). This negotiation process allows for flexibility and can accommodate the diverse needs of shippers and carriers.
Card Corp. purchased bonds at a discount of $49,000. The bonds were classified as available for sale. Subsequently, Card sold these bonds at a premium of $12,000. During the period that Card held this investment, amortization of the discount amounted to $19,000. What amount should Card report as gain on the sale of bonds?
Answer:
The amount that the card should report as gain on sale of bonds $42000.
Explanation:
carrying cost = 49000 - 19000= 30000
amount should card report as gain on sale of bond = cost of bond + premium price - (cost - carrying value cost )
amount card report as gain = 49000 + 12000 - ( 49000 - 30000)
= 42000
Therefore, the amount that the card should report as gain on sale of bonds $42000.
In the RST partnership, Ron's capital is $80,000, Stella's is $75,000, and Tiffany's is $50,000. They share income in a 3:2:1 ratio, respectively. Tiffany is retiring from the partnership. Each of the following questions is independent of the others.
Refer to the above information. Tiffany is paid $60,000, and no goodwill is recorded. What is the Ron's capital balance after Tiffany withdraws from the partnership?
A. $74,000
B. $71,000
C. $75,000
D. $86,000
Answer:
A. $74,000
Explanation:
Since in this question, Tiffany is retired so we have to find the new ratio which is shown below:
As Tiffany take the shares of both the partners in 3: 2
So, the new ratio would be
Ron share = (3 ÷ 5) × (1 ÷ 6) = 3 ÷ 30
Stella share = (2 ÷ 5) × (1 ÷ 6) = 2 ÷ 30
So the ratio would be 3: 2
The 1 ÷ 6 is the Tiffany ratio
Now the balance after Tiffany withdraws from the partnership equals to
= Paid amount by Tiffany - Tiffany capital
= $60,000 - $50,000
= $10,000
Ron's given amount = ($10,000 × 3 ÷ 5) = $6,000
So, Ron's capital balance equals to
= Ron's capital - Ron's given amount
= $80,000 - $6,000
= $74,000
The revenues and expenses of Sunset Travel Service for the year ended April 30, 2014,
are listed below.
Fees earned $1,673,000
Office expense 488,000
Miscellaneous expense 34,000
Wages expense 660,000
Prepare an income statement for the current year ended April 30, 2014.
Answer:
Net profit= $491,000
Explanation:
An income statement is one of the three important financial statements used for reporting a company's financial performance over a specific accounting period. The income statement focuses on the four key items - revenue, expenses, gains, and losses. It does not cover receipts (money received by the business) or the cash payments/disbursements (money paid by the business).
It follows the general structures:
Revenues (+)
Operating Revenue
Non-Operating Revenue
Total
Expenses (-)
Primary Activity Expenses
Secondary Activity Expenses
Total
Gains (+)
Losses (-)
Net income/loss
In this exercise:
Total revenues=$1,673,000
Expenses:
Office expense 488,000
Miscellaneous expense 34,000
IWages expense 660,000
Total Expenses=$1,182,000
Net profit= $491,000
Hank Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 210-gallon batch. 3,300 ounces of grape concentrate at $0.03 per ounce 357 pounds of granulated sugar at $0.36 per pound 294 lemons at $0.63 each 840 yeast tablets at $0.28 each 1,050 nutrient tablets at $0.11 each 3,100 ounces of water at $0.001 per ounce Hank estimates that 1% of the grape concentrate is wasted, 15% of the sugar is lost, and 30% of the lemons cannot be used. Compute the standard cost of the ingredients for one gallon of wine. (Round intermediate calculations and final answer to 2 decimal places, e.g. 1.25.) Standard Cost Per Gallon $
Answer: $4.140 per gallon
Explanation:
Costs including wastage for 210 gallons:
3,300 ounces of grape concentrate at $0.03 per ounce:
= [tex]3,300\times\frac{0.03}{0.99}[/tex]
= 100
357 pounds of granulated sugar at $0.36 per pound :
= [tex]357\times\frac{0.36}{0.85}[/tex]
= 151.2
294 lemons at $0.63 each = [tex]294\times\frac{0.63}{0.70}[/tex]
= 264.6
840 yeast tablets at $0.28 each = 840 × 0.28
= 235.2
1,050 nutrient tablets at $0.11 each = 1,050 × 0.11
= 115.5
3,100 ounces of water at $0.001 per ounce = 3,100 × 0.001
= 3.1
Hanks estimates that,
1% of the grape concentrate is wasted
15% of the sugar is lost
30% of the lemons cannot be used
Hence,
Cost for 210 gallons = 100 + 151.2 + 264.6 + 235.2 + 115.5 + 3.1
= $869.6
Hence, cost per gallon = [tex]\frac{Cost\ for\ 210\ gallons}{210\ gallons}[/tex]
= [tex]\frac{869.6}{210}[/tex]
= $4.140 per gallon
The standard cost of the ingredients for one gallon of wine, considering all the wastes and losses is calculated as $3.29.
Explanation:To find the standard cost of the ingredients for one gallon of wine, we first compute the cost for each ingredient.
The cost for grape concentrate is 0.03*3300 = $99. However, since 1% is wasted, the usable cost becomes $99*0.99 = $98.01.
The cost for granulated sugar is 0.36*357 = $128.52. As 15% is lost, the usable cost would be $128.52 *0.85 = $109.24.
The cost for lemons is 0.63*294=$185.22. With 30% not usable, the cost becomes $185.22*0.70 = $129.65.
The cost for yeast tablets is 0.28*840 = $235.20 and for nutrient tablets, it's 0.11*1050 = $115.50. For water, the cost is 0.001*3100 = $3.10.
To find the total cost of ingredients for the 210-gallon batch, we add up all the calculated costs, which equals to $690.70. Dividing this by 210, we get $3.29 as the standard cost per gallon.
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Next, imagine that you are a manager of a start-up company with limited cash and resources. In your initial post, describe the types of motivators that you might employ as you develop your culture and attract good talent to your company. Explain why you have selected these motivators.
Answer: I want employees who are like-minded with the values and best practices in my company .
Explanation: Having a candidate attraction strategy that speaks to your company culture will increase the likeliness of attracting and engaging talent who will thrive and stay with you longer.Hiring talent that doesn’t align with your company culture creates personal conflict within the employee that will no doubt impact their work and those they work with It’s your responsibility as an employer to set your employees up for success, and making sure their values and work ethic is in line with your culture before extending an offer is the very first thing you can do for them and the rest of your workforce.Company culture expresses what the organization’s expectations, values and beliefs are and how the organization interacts with both its own employees and the people in the communities in which they do business .
On January 1, 2014, Dodd, Inc., declared a 15% stock dividend on its common stock when the fair value of the common stock was $30 per share. Stockholders' equity before the stock dividend was declared consisted of:
Common stock, $10 par value, authorized 200,000 shares;
issued and outstanding 120,000 shares
$1,200,000
Additional paid-in capital on common stock
150,000
Retained earnings
700,000
Total stockholders' equity
$2,050,000
What was the effect on Dodd's retained earnings as a result of the above transaction?
Answer: $540,000
Explanation:
Given that,
Fair value of the common stock = $30 per share
Common stock, $10 par value, authorized 200,000 shares;
issued and outstanding 120,000 shares = $1,200,000
Additional paid-in capital on common stock = $150,000
Retained earnings = $700,000
Total stockholders' equity = $2,050,000
Declared a dividend of 15%:
= 120,000 × $30 × 15%
= $540,000
Since, dividends are paid out Retained earnings. Therefore, retained earnings will decrease by an amount of $540,000.
A 15% stock dividend on Diamond Inc.'s outstanding shares of 120,000 is equal to 18,000 shares. At a fair value of $30 per share, the total stock dividend is $540,000 which would decrease the retained earnings by the same amount. The retained earning would then be at $160,000.
Explanation:A 15% stock dividend on common stock means that 15% of the existing number of shares will be distributed as dividends to the shareholders. The company had 120,000 shares outstanding, so a 15% stock dividend is equal to 18,000 shares (120,000 * 0.15).
The fair value of the common stock was $30 per share, so the total value of the stock dividends distributed is $540,000 (18,000 shares * $30). This would result in a decrease in the cash value present in retained earnings by the same amount of $540,000.
Therefore, the new retained earnings balance after the distribution of the stock dividend would be $160,000 ($700,000 - $540,000).
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Suppose a report on CNN says that the United States is heading into a recession. As a result, Bert's family, as well as many other like-minded families and individuals, reduces their spending and instead fills up their savings accounts for potential hard times.As a result of this behavior, In macroeconomics, this result is known as ____
Answer: The paradox of thrift
Explanation: In simple words, paradox of thrift refers to a situation when in recession the individuals in the economy stops spending and starts saving more. This behavior further results in decrease in demand and hindrance in economic growth.
In the given case, many families starts saving more due to a report from the CNN that a recession is coming ahead.
Hence from the above we can conclude that the correct answer is paradox of thrift.
A factory costs $400,000. You forecast that it will produce cash inflows of $120,000 in year 1, $180,000 in year 2, and $300,000 in year 3. The discount rate is 12%. a. What is the value of the factory? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
Value of factory = $64,220
Explanation:
Here, for the given information,
To calculate value of factory we will calculate the Net Present Value.
Net Present Value = Present value of cash inflows - Present value of cash outflow.
Present value of cash outflow = Cost of factory today = $400,000
Discounting factor @ 12% for each year shall be
Year 1 = [tex]\frac{1}{(1+0.12)^1} = 0.893[/tex]
Year 2 = [tex]\frac{1}{(1+0.12)^2} = 0.797[/tex]
Year 3 = [tex]\frac{1}{(1+0.12)^3} = 0.712[/tex]
Therefore, present value of cash inflows = [tex](120,000 \times 0.893) + (180,000 \times 0.797) + (300,000 \times 0.712) = 464,220[/tex]
Net Present Value = Value of factory = $464,220 - $400,000 = $64,220
The following information is available from the records of a manufacturing company that applies factory overhead based on direct labor hours: Estimated overhead cost: $500,000 Estimated labor hours: $200,000 Actual overhead cost: $515,000 Actual labor hours: $210,000 Based on this information, factory overhead is
Answer:
The manufactured overhead was under-estimated.
Explanation:
Giving the following information:
The actual manufacturing overhead costs incurred were $515,000.
Estimated Manufacturing overhead was $500,000.
Overhead allocation is the distribution of indirect costs to produced goods. When the administration has undervalued and under-funded the amount of money needed for non-production costs, they have under-allocated overhead.
Over applied manufacturing overhead:
Applied overhead>Actual overhead
Under applied manufacturing overhead:
Applied overhead<Actual overhead
In this exercise:
Actual manufacturing overhead - Estimated Manufacturing overhead= 515000- 500000= 15000
The manufactured overhead was under-estimated.
A reserve price is a minimum price set by the auctioneer. If no bidder is willing to pay the reserve price, the item is unsold at a profit of $0 for the auctioneer. If only one bidder values the item at or above the reserve price. An auctioneer faces two bidders, each with a value of either $30 or $80, with both values equally probable. What reserve price should the auctioneer set, and what is the expected revenue from auctioning the item with and without a reserve price?
The auctioneer should set the reserve price at $30. The expected revenue from auctioning the item without a reserve price is $55.
Explanation:To determine the reserve price, we need to consider the values of the two bidders and their probabilities. In this case, both bidders have equal probabilities of valuing the item at $30 or $80. The auctioneer should set the reserve price at $30, the minimum value that one bidder may have. This way, if one bidder values the item at $30 or higher, the auctioneer can sell it, earning a profit of $30. If neither bidder values the item at $30 or higher, the item remains unsold, resulting in a profit of $0 for the auctioneer.
The expected revenue from auctioning the item without a reserve price can be calculated by multiplying the probability of each bidder value by the price the auctioneer receives for that bidder's value.
If one bidder values the item at $30, the probability is 1/2 and the auctioneer receives $30, resulting in an expected revenue of $30 * 1/2 = $15.If one bidder values the item at $80, the probability is 1/2 and the auctioneer receives $80, resulting in an expected revenue of $80 * 1/2 = $40.Therefore, the total expected revenue from auctioning the item without a reserve price is $15 + $40 = $55.
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K. Johnson, Inc.'s managers want to evaluate the firm's prior-year performance in terms of its contribution to shareholder value. This past year, the firm earned an operating income return on investment of 12 percent, compared to an industry norm of 11 percent. It has been estimated that the firm's investors have an opportunity cost on their funds of 14 percent, which is the same as the firm's overall cost of capital. The firm's total assets for the year were $ 100 million. Compute the amount of economic value created or destroyed by the firm. How does your finding support or fail to support what you would conclude using ratio analysis to evaluate the firm's performance? Assume that the firm has no debt.
Answer:
The company destroyed 2,000,000 capital
As the returns are less than the cost of create the assets.
It is destroys wealth to the stockholders
Explanation:
operating return on investment 12%
industry 11%
opportunity cost 14% overall cost of capital
Assets: 100 millions
Economic Value Added:
income - Assets x WACC
as there is no debt , the WACC will be the cost of capital
Return: 100,000,000 x 12% = 12,000,000
Assetx x cost of capital
100,000,000 x 14% = 14,000,000
EVA = 12,000,000 - 14,000,000 = -2,000,000
The company destroyed 2,000,000 capital
As the returns are less than the cost of create the assets.
Sunland Company uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows:
Units Per unit price Total
Balance, 1/1/2017 290 $5.00 $1450
Purchase, 1/15/2017 140 ..5.10 714
Purchase, 1/28/2017 140 ..5.30 742
An end of the month (1/31/2017) inventory showed that 230 units were on hand. How many units did the company sell during January 2017?
Sunland Company sold 340 units in January 2017. The calculation is based on the initial inventory, the purchased units, and the remaining units in inventory at the end of the month.
Explanation:To calculate the number of units sold by Sunland Company in January 2017, we first need to find the total number of units at the beginning of the month and the purchases made during the month. Initially, the balance shows 290 units. Then on 1/15/2017, there was a purchase of 140 units, and on 1/28/2017, another 140 units were purchased.
Thus, the total units available in January 2017 were: (290 initial units) + (140 units purchased on 15th) + (140 units purchased on 28th) = 570 units.
At the end of the month, the inventory showed that 230 units were left, which means the company sold the rest. Therefore, the number of units sold is total units available - units left in inventory = 570 units - 230 units = 340 units. That means Sunland Company sold 340 units in January 2017.
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Why is the shape of the production possibilities frontier (PPF) often curved instead of straight? Because the production possibilities frontier is based on the productive capabilites, and of a nation overall, rather than the productive capacity of an individual. Typically, some resources are better suited for producing one good than another, which means that there are diminishing returns when moving such resources away from producing what they are best suited for. The productive efficiency of an economy decreases as it moves from left to right along the PPF. To take a potential sunk cost into account, the PPF is curved to distribute the burden of the sunk cost based on allocative effieciency.
Answer:
The correct answer is the second statement.
Explanation:
A production possibility frontier shows the maximum possible combinations of two goods that can be produced using the given resources. This frontier is concave to the origin. The curve shape of this frontier is because of increasing marginal opportunity cost.
We have limited resources that serve alternative uses. To increase the production of one commodity we need to decrease the production of the other. but the resources are not perfectly substitutable between these two goods. So when we increase the production of one good the marginal opportunity cost of the giving up the alternative goes on increasing.
Use the following data to determine the total dollar amount of assets to be classified as current assets. Skysong, Inc. Balance Sheet December 31, 2017 Cash $193000 Accounts payable $199000 Accounts receivable 140000 Salaries and wages payable 30500 Inventory 171000 Mortgage payable 237000 Prepaid insurance 89900 Total liabilities $466500 Stock investments (long-term) 270000 Land 251000 Buildings $316000 Common stock $395400 Less: Accumulated depreciation (62500) 253500 Retained earnings 728500 Trademarks 222000 Total stockholders' equity $1123900 Total assets $1590400 Total liabilities and stockholders' equity $1590400
Answer:
Total Current Assets - $593,900
Explanation:
Current assets are resources that are easily used for business transactions.
These are assets that are usually accounted, sold or used by the business for one year or over the next period of time. Current assets include cash and cash equivalents, accounts receivable, merchandise inventory, and prepaid assets.
Thus, the total current assets of Skysong, Inc amount to $593,900 (Cash - $193,000, Accounts receivable - $140,000, Inventory - $171,000, and Prepaid insurance - $89,900).