Answer:
The budgeted cost of direct labor for the month is $333,333.
Explanation:
This question can be solved using rules of three.
The direct labor rate is $100 per hour.
Each unit requires 20 minutes of direct labor to complete.
An hour has 60 minutes, so in an hour, 60/20 = 3 units can be made.
This means that the cost of 3 units is $100.
10,000 units per month.
How much do 10,000 units cost?
3 units - 100
10,000 units - $x
[tex]3x = 10000*100[/tex]
[tex]x = \frac{10000*100}{3}[/tex]
[tex]x = 333333[/tex]
The budgeted cost of direct labor for the month is $333,333.
At April 30, Pina Colada Corp. has the following bank information: Cash balance per bank $7600 Outstanding checks $460 Deposits in transit $900 Credit memo for interest $15 Bank service charge $30 What is Pina adjusted cash balance on April 30?
Pina Colada Corp.'s adjusted cash balance on April 30 is $7025, calculated by reconciling the cash balance per bank with outstanding checks, deposits in transit, a credit memo for interest, and bank service charges.
To calculate Pina Colada Corp.
adjusted cash balance on April 30 We use the following information:
To calculate the adjusted cash balance, follow these steps:
Start with the cash balance per bank.Subtract any outstanding checks.Add any deposits in transit.Add any credits (such as interest earned).Subtract any bank service charges.The calculation would be:
$7600 (balance per bank) - $460 (outstanding checks) + $900 (deposits in transit) + $15 (interest credit) - $30 (service charge) = $7025.
Therefore, Pina Colada Corp.'s adjusted cash balance on April 30 is $7025.
Big City provides a defined benefit pension plan for employees of the city water department, an enterprise fund. Assume that the service cost component is $420,000, and interest on the pension liability is $380,000 for the year. Actual returns on plan assets for the year were $300,000 while the projected level of earnings on plan investments was $360,000. This difference is to be amortized over a 5 year period, beginning this year. Finally assume the City is amortizing a deferred inflow resulting from a change in plan assumptions from a prior year in the amount of $10,000 per year. Prepare journal entries to record annual pension expense for the enterprise fund.
Solution:
Journal entries to record annual pension expense for the enterprise fund :
Service cost $420,000
Interest $380,000
Cash 800,000
Plan assets - pension 800,000
Service cost 420,000
Interest 380,000
Thrope, Inc. purchased 2,400 pounds of direct material at a price of $1.30 per pound. The standard price of the material is $1.40 per pound. Thrope used 1,200 pounds in production while the standard pounds allowed for actual production was 900. Calculate the direct materials price and quantity variances and indicate whether the variances are favorable or unfavorable. Direct material price variance $ Direct material quantity variance $
Answer:
Instructions are below.
Explanation:
Giving the following information:
Standard price= $1.4 per pound
Thrope, Inc. purchased 2,400 pounds of direct material for $1.30 per pound.
Thrope used 1,200 pounds in production while the standard pounds allowed for actual production was 900.
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (1.4 - 1.3)*2,400= $240 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (900 - 1,200)*1.4= $420 favorable
Answer:
Price variance $240 Favorable
Quantity variance $ 420 unfavourable
Explanation:
A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. A favorable variance is recorded where the actual total cost of materials is lower that the standard cost. While an adverse variance implies the opposite.
$
2,400 pounds should have cost (2400×$1.40) = 3360
but did cost (actual cost ) = (2400×$1.30) = 3120
Price variance 240 Favorable
Quantity variance
It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price
Pounds
standard allowed production 900
Actual quantity used 1,200
Difference 300
Standard price × $1.40
Quantity variance $420 unfavourable
Stan read an ad in the newspaper which said that the jackpot for picking the six winners in the dog race on the last night of the season was $825,000. Stan went that night and correctly picked the winners. However, it turned out that the newspaper had made a mistake. The jackpot was $25,000, not $825,000. Therefore the track owners refused to pay the latter amount. If this ad is treated like offers of reward, can Stan collect the $825,000?
Find the given attachment
Use the following data to compute the present value of the terminal period ROPI for each of the four firms A through D. Assume a forecast horizon of four years. A B C D Terminal period ROPI $189,122 $27,878 $74,785 $105,733 Weighted average cost of capital (WACC) 7.9% 11.7% 9.5% 13.7% Terminal growth period rate 2.0% 1.0% 2.5% 2.0% Do not round until your final answers. Round your answers to the nearest whole number. A B C D PV of terminal period ROPI Answer 0 Answer 0 Answer 0 Answer 0
Answer:
Firm A $ 2,412,150.68
Firm B $169,038.85
Firm C $761,699.81
Firm D $614,813.36
Explanation:
The present value of terminal value is the terminal value multiplied by the discounted factor as shown by the formula below:
=ROPI*(1+growth rate)/(WACC-growth rate)*(1/(1+WACC)^n
n is the time horizon for the forecast
Firm A terminal value=$189,122*(1+2%)/(7.9%-2%)*1/(1+7.9%)^4
=3,269,566.78*0.737758499 =$ 2,412,150.68
Firm B terminal value=$27,878*(1+1%)/(11.7%-1%)*1/(1+11.7%)^4
=$ 263,147.48*0.642373043 =$169,038.85
Firm C terminal value=$74,785*(1+2.5%)/(9.5%-2.5%)*1/(1+9.5%)^4
=$ 1,095,066.07*0.695574293 =$761,699.81
Firm D terminal value=$105,733*(1+13.7%)/(13.7%-2%)*1/(1+13.7%)^4
=$ 1,027,507.87*0.598353921 =$614,813.36
Which of the following is the location where notes can be added?
The location to add notes depends on the context. In software like Microsoft Word, notes can be added under 'New Comment' in the 'Review' tab. Similarly, in a PowerPoint presentation, notes can be added in the 'Notes' pane, and in many email clients and physical notebooks or sticky-notes.
Explanation:There are several places where you can add notes depending on the context. If you are using a computer software like Microsoft Word, notes can be added in the 'Review' tab under 'New Comment'. Similarly, in a PowerPoint presentation, you can add notes in the 'Notes' pane at the bottom of each slide.
In many email clients, you can also add notes to emails or contacts. In a physical context, notes can be added in notebooks or on sticky-notes. Thus, the specific location to add notes will depend largely on the platform or context in which you are working.
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Georgia Movie Company has a capital structure with 40.00% debt and 60.00% equity. The cost of debt for the firm is 8.00%, while the cost of equity is 14.00%. The tax rate facing the firm is 40.00%. The firm is considering opening a new theater chain in a local college town. The project is expected to cost $12.00 million to initiate in year 0. Georgia Movie expects cash flows in the first year to be $2.60 million, and it also expects cash flows from the movie operation to increase by 4.00% each year going forward. The company wants to examine the project over a 10.00-year period. What is the WACC for this project
Answer:
10.32%
Explanation:
The computation of the weighted average cost of capital is shown below:
= Weightage of debt × cost of debt × ( 1- tax rate)+ (Weightage of common stock) × (cost of common stock)
= (0.40 × 8%) × ( 1 - 40%) + (0.60 × 14%)
= 1.92% + 8.4%
= 10.32%
We simply multiplied the weight with its cost i.e weight of debt with the weightage of debt and weight of equity with the weightage of equity
Powder Ski Shop reports inventory using lower-of-cost-or-market. Below is information related to its year-end inventory. Inventory Quantity Cost Market Ski jackets 10 $ 117 $ 97 Skis 15 320 370 Calculate the amount to be reported for ending inventory.
Answer:
$5,770
Explanation:
The computation of ending inventory is shown below:-
Inventory Quantity Lower of cost Ending inventory
Net realizable value
Ski Jackets 10 $97 $970
Skis 15 $320 $4,800
Total $5,770
The amount to be reported for ending inventory is calculated using the lower-of-cost-or-market method.
Explanation:The amount to be reported for ending inventory is calculated using the lower-of-cost-or-market (LCM) method. Under this method, the inventory value is reported at the lower of its cost or its market value. In this case, for the Ski jackets, the cost is $117 and the market value is $97. Since the market value is lower, the ending inventory value for Ski jackets would be 10 x $97 = $970. For the Skis, the cost is $320 and the market value is $370. Since the cost is lower, the ending inventory value for Skis would be 15 x $320 = $4800.
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Parkway Distributors is a wholesale firm that employs several outside salespersons. Emily, a salesperson employed by Parkway Distributors, was involved in an accident with another motorist while she was using her car to make regular sales calls for Parkway Distributors. Emily and the motorist are seriously injured in the accident. The motorist sues both Emily and Parkway Distributors for the injury based on negligence.
1. Describe the requirements that the motorist must establish to show that Emily is guilty of negligence.
2. On what legal basis might Parkway Distributors be held legally liable for the injury to the motorist? Explain your answer.
b. Tom asks his girlfriend, Megan, to go to a supermarket and purchase some steaks for dinner. While driving Tom’s car to the supermarket, Megan failed to stop at a red light and seriously injured a pedestrian. Does Tom have any legal liability for the injury? Explain your answer.
Answer:
Legal obligation will arise from inadvertence of one thing or a deliberate act. There are 3 categories of erroneous conduct lawfully. Its fissure of agreement, corruption and one who is pretentious or abraded thanks to the act of additional person.
(1)
The necessities that the automobile should demonstrate to carry mister. Embarrassed of carelessness are as per RES IPSA LOQUITUR belief. The belief RES IPSA LOQUITUR suggests that "the factor expresses for himself". In keeping with this opinion, the broken or damage himself is that the resistant and it expresses for the performance of the inattention. This belief needs the subsequent things:
The affair or act ought to happen thanks to the carelessness the carelessness ought to cause some injury or damage the litigant ought to have fashionable management over the device or instrumentality. The casualty shouldn't have underwrote something to the carelessness.
(2)
Permitting to the law of carelessness, underneath request of householders and operatives of vehicles, P. Suppliers are control lawfully chargeable for the grievance to the automobile. In keeping with this, the vendor of vehicle United Nations agency energies sloppily and origins grievance is liable for the obligation produced to the broken individual. The proprietor will have the instruction of last vibrant probability. Enclose if the worker of the car isn't the proprietor then the possessor is not liable for the act of the carelessness of the worker delivered if there's associate deficiency of agency association. During this case, agency association exists. Thus, P Distributors are control chargeable for the injury to the celebration.
(b)
The possessor of vehicle United Nations agency drives inaccurately and causes grievance is liable for the liability produced to the broken individual. The possessor will have the instruction of last vibrant probability. In case, if the worker of the car isn't the possessor then the proprietor is not liable for the performance of the carelessness of the worker delivered if there's associate deficiency of agency association. During this case each belief of RES IPSA LOQUITUR and regulation of carelessness are pertinent. Thus, the Mr. Tom is control chargeable for the performance of his partner.
The motorist must show that Emily owed a duty of care, breached that duty, the breach caused an accident, and that actual damages occurred to prove negligence. Parkway Distributors may face vicarious liability for Emily's actions during her employment. Tom could be liable for Megan's accident under 'permissive use' doctrine if she had his permission to drive the vehicle.
In order for the motorist to establish that Emily is guilty of negligence, several elements must be proven. Firstly, there must be a duty of care owed by Emily to the motorist. Secondly, it must be shown that Emily breached that duty by failing to act as a reasonable person would under similar circumstances. Thirdly, this breach of duty must have directly caused the accident, and finally, the accident must have resulted in actual damages or injury to the motorist.
Regarding the legal liability of Parkway Distributors, they could be held responsible based on the legal doctrine of vicarious liability. Since Emily was acting in the scope of her employment at the time of the accident, Parkway Distributors might be liable for her actions. However, further details such as whether Emily was an independent contractor, or if she was undertaking a personal errand at the time of the accident, could influence this outcome.
As for Tom's potential legal liability for the injuries caused by Megan, various factors must be considered. If Megan was using Tom's car with his permission, Tom could be held liable under the 'permissive use' doctrine which many jurisdictions follow. This doctrine holds the car owner liable for negligent driving by those they have allowed to use their vehicle. However, specifics such as whether Megan was fulfilling a task at Tom's request, and insurance coverage might affect this situation.
According to Milton Friedman, "Business has only one social responsibility – to make profits (as long as it stays within the legal and moral rules of the game established by society). Few trends could so thoroughly undermine the very foundations of our society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible." Explain why you agree or disagree with such a statement.
Answer:
Read answer carefully
Explanation:n a 1970 Times magazine article, the economist Milton Friedman argued that businesses' sole purpose is to generate profit for shareholders. Moreover, he maintained, companies that did adopt "responsible" attitudes would be faced with more binding constraints than companies that did not, rendering them less competitive.
The occasion of Friedman's passing last week offers an opportunity to revisit that argument. It remains the basis for many companies' contention today that "corporate social responsibility," "sustainable business," and other such monikers are a distraction from their core obligation: to act in their shareholders' best interests. That is, acting "responsibly" risks reducing profits or forgoing revenue in the name of social good.
"What does it mean to say that the corporate executive has a 'social responsibility' in his capacity as businessman?" asked Friedman in his 1970 article.
"If this statement is not pure rhetoric, it must mean that he is to act in some way that is not in the interest of his employers. For example, that he is to refrain from increasing the price of the product in order to contribute to the social objective of preventing inflation, even though a price increase would be in the best interests of the corporation. Or that he is to make expenditures on reducing pollution beyond the amount that is in the best interests of the corporation or that is required by law in order to contribute to the social objective of improving the environment. Or that, at the expense of corporate profits, he is to hire 'hardcore' unemployed instead of better-qualified available workmen to contribute to the social objective of reducing poverty.
"In each of these cases, the corporate executive would be spending someone else's money for a general social interest. Insofar as his actions in accord with his 'social responsibility' reduce returns to stockholders, he is spending their money. Insofar as his actions raise the price to customers, he is spending the customers' money. Insofar as his actions lower the wages of some employees, he is spending their money." Friedman argued that such actions in effect turned executives into public employees or civil servants, levying "taxes" (in the form of corporate money allocated to social causes) and making "expenditures" -- a part of "the socialist view that political mechanisms, not market mechanisms, are the appropriate way to determine the allocation of scarce resources to alternative uses."
Friedman concluded:
"The difficulty of exercising 'social responsibility' illustrates, of course, the great virtue of private competitive enterprise -- it forces people to be responsible for their own actions and makes it difficult for them to 'exploit' other people for either selfish or unselfish purposes. They can do good -- but only at their own expense."
We know better now. For example, we understand that ignoring environmental and social issues can be bad for business. Companies that pollute their local communities risk poisoning their customers. Ignoring the state of the local school system risks depleting the pool of qualified workers. Abusing workers risks higher turnover and training costs, not to mention greater difficulty attracting the most qualified candidates.
It's never that simple, of course. In a globalized world, companies are free to exploit or pollute a local community, then move on to the next place. Unfettered markets and exploitation-friendly tax schemes reward companies for acting in their own interests in the name of economic growth and competitiveness. So, Friedman's philosophy still reigns supreme.
Friedman's philosophy is far from universally shared, even in the business community. In 1979, for example, Quaker Oats president Kenneth Mason, writing in Business Week, declared Friedman's profits-are-everything philosophy "a dreary and demeaning view of the role of business and business leaders in our society." Wrote Mason: "Making a profit is no more the purpose of a corporation than getting enough to eat is the purpose of life. Getting enough to eat is a requirement of life;
Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They aregeneral-purpose equipment (GPE), flexible manufacturing system(FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow:
General-Purpose Equipment (GPE)
Flexible Manufacturing System (FMS)
Dedicated Machine (DM)
Annual contracted units
200,000
200,000
200,000
Annual fixed cost
$100,000
$200,000
$500,000
Per unit variable cost
$15.00
$14.00
$13.00
The option GPE is best when the contracted volume is below nothing units (enter your response as a whole number).
The option FMS is best when the contracted volume is between nothing and nothing units (enter your responses as whole numbers).
The option DM is best when the contracted volume is overunits (enter your response as a whole number).
Answer:
Task 1:
GPE is best when the contracted volume is below 25,000 units.
Task 2:
FMS is best when the contracted volume is between 25,000 and 300,000 units.
Task 3:
DM is best when the contracted volume is over 300,000 units.
Explanation:
The schedule for total cost is attached.
Task 1:The option GPE is best when the contracted volume is below nothing units (enter your response as a whole number).
Answer:GPE is best when the contracted volume is below 25,000 units.
Working:GPE is best when cost for GPE is less than other two.
Difference between the variable cost per unit of GPE and FMS = $18 per unit - $14 per unit = $4 per unit.
Difference between the fixed cost of GPE and FMS = $200,000 - $100,000 = $100,000
The difference of cost between GPE and FMS can be found by (assuming n units produced)
GPE-FMS: 4n – $100,000
The cost difference has to be zero in order to lower the cost for GPE
Hence 4n-$100,000=0
Hence n = 25,000
GPE is best when the contracted volume is below 25,000 units.
Task 2:
The option FMS is best when the contracted volume is between nothing and nothing units (enter your responses as whole numbers).
Answer:FMS is best when the contracted volume is between 25,000 and 300,000 units.
Working:To compare FMS:
The cost has to be in between GPE and FMS
Considering difference between GPE and FMS
n = 25,000 (from above calculation)
Considering FMS and DM:
Difference in variable cost per unit of FMS and DM = $14 - $13 = $1 per unit
Difference in fixed cost of FMS and DM = $500,000 - $200,000 = $300,000
Difference = n – $300,000
n-300,000=0
n = 300,000
Hence FMS is best when the contracted volume is between 25,000 and 300,000 units.
Task 3:The option DM is best when the contracted volume is over units (enter your response as a whole number).
Solution:DM is best when the contracted volume is over 300,000 units.
Final answer:
To find the best manufacturing option, it's necessary to calculate the total cost per option and identify the break-even points by comparing the total cost equations. This analysis will provide the production volume ranges for when each option (GPE, FMS, DM) is most cost-effective.
Explanation:
To determine which manufacturing option is best for Borges Machine Shop at various production volumes, we need to calculate the total cost for each option at different volumes and compare them. The total cost is calculated by adding the fixed cost to the product of the variable cost per unit and the number of units produced.
For the General-Purpose Equipment (GPE), the total cost (TC) formula is:
TC = $100,000 + ($15 × number of units).
For the Flexible Manufacturing System (FMS), the total cost (TC) formula is:
TC = $200,000 + ($14 × number of units).
For the Dedicated Machine (DM), the total cost (TC) formula is:
TC = $500,000 + ($13 × number of units).
The point at which two options have the same total cost is where they break even, and this point can be calculated by setting the total cost equations of two options equal to each other.
Let's calculate the break-even points:
For GPE and FMS: $100,000 + $15n = $200,000 + $14nFor FMS and DM: $200,000 + $14n = $500,000 + $13nSolving these equations will give us the range of units where each option is best.
B&B has a new baby powder ready to market. If the firm goes directly to the market with the product, there is only a 55 percent chance of success. However, the firm can conduct customer segment research, which will take a year and cost $1.29 million. By going through research, B&B will be able to better target potential customers and will increase the probability of success to 70 percent. If successful, the baby powder will bring a present value profit (at time of initial selling) of $19.9 million. If unsuccessful, the present value payoff is $6.9 million. The appropriate discount rate is 15 percent.Calculate the NPV for the firm if it conducts customer segment research and if it goes to market immediately
The answer & explanation for this question is given in the attachment below.
Conducting customer segment research results in a higher NPV of $4.27 million compared to going to market immediately.
1. Calculate the NPV without research:
NPV without research = (Probability of success * PV of success) + (Probability of failure × PV of failure)
NPV without research = (0.55 × $19.9 million) + (0.45 × $6.9 million)
NPV without research = $10.945 million + $3.105 million
NPV without research = $14.05 million
2. Calculate the NPV with research:
NPV with research = (Probability of success × PV of success) + (Probability of failure × PV of failure) - Cost of research
NPV with research = (0.70 × $19.9 million) + (0.30 × $6.9 million) - $1.29 million
NPV with research = $13.93 million + $2.07 million - $1.29 million
NPV with research = $14.71 million - $1.29 million
NPV with research = $13.42 million
3. Calculate the NPV difference:
NPV difference = NPV with research - NPV without research
NPV difference = $13.42 million - $14.05 million
NPV difference = -$0.63 million
Based on these calculations, conducting customer segment research results in a higher NPV of $4.27 million ($13.42 million - $9.15 million) compared to going to market immediately.
Production information for month was: Number of units produced 30, 000 Number of units sold 28,000 Selling price $20 Beginning inventory 0 Fixed selling and administrative costs $ 20,000 Fixed manufacturing overhead $ 150,000 Direct materials cost per unit 2 Direct manufacturing labor 6 Variable manufacturing overhead per unit 4 Variable selling expenses per unit 2 FMOH per unit 5 ($150,000 : 30,000 =$5) What is cost per unit under Absorption costing method?
Answer:
$17
Explanation:
The computation of the cost per under Absorption costing method is shown below:
= direct labor per unit+ direct materials per unit + variable manufacturing overhead per unit + fixed manufacturing overhead per unit
where,
= $2 + $6 + $4 + $5
= $17
We do not considered the selling and admin expenses and the same is ignored
Final answer:
The cost per unit under Absorption costing is $17, calculated by summing the direct materials, direct manufacturing labor, variable manufacturing overhead, and fixed manufacturing overhead per unit.
Explanation:
The student asked what the cost per unit under Absorption costing method is. Absorption costing includes all manufacturing costs, both fixed and variable, in the cost of a product. To calculate the cost per unit under absorption costing, we add up the direct materials cost per unit, direct manufacturing labor, variable manufacturing overhead per unit, and fixed manufacturing overhead (FMOH) per unit.
Direct materials cost per unit: $2
Direct manufacturing labor: $6
Variable manufacturing overhead per unit: $4
FMOH per unit: $5
Adding these costs together gives us the total cost per unit under absorption costing:
Total Cost per Unit = $2 (Direct Materials Cost) + $6 (Direct Manufacturing Labor) + $4 (Variable Manufacturing Overhead) + $5 (FMOH) = $17 per unit.
Suppose that a car manufacturer discovers that it can lower its average costs if it diversifies its operation by also producing pickup trucks and SUVs.What concept does this illustrate
Final answer:
This scenario demonstrates economies of scale, where diversifying production to make pickup trucks and SUVs alongside sedans reduces average costs. International trade is critical for this strategy to succeed, leading to improved efficiency and consumer choice while fostering dynamic comparative advantage through global competition.
Explanation:
The concept illustrated by a car manufacturer realizing it can lower its average costs by diversifying operations to include the production of pickup trucks and SUVs is known as economies of scale. This occurs when increasing production allows for the average cost per unit to decrease, due to the spreading out of fixed costs over more units and, often, more efficient use of resources.
In the provided scenario, international trade facilitates these economies of scale by allowing the company to focus each assembly plant on a single model, leading to increased production without additional capital or labor. It also introduces the concept of dynamic comparative advantage, where advantages develop over time through learning and competition, as opposed to being inherently obtained. This has a significant impact on international trade, as it combines lower costs with increased competition and consumer choice.
Exercise 7-11A Accounting for notes receivable LO 7-5Rainey Enterprises loaned $50,000 to Small Co. on June 1, Year 1, for one year at 7 percent interest. Requireda. Record these general journal entries for Rainey Enterprises: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.)(1) The loan to Small Co.(2) The adjusting entry at December 31, Year 1.(3) The adjusting entry and collection of the note on June 1, Year 2.
Answer:
Notes receivable:
Dr Notes receivable $50,000
Cr Cash $50,000
December Year 1:
Dr interest receivable $1,750
Cr Interest revenue $1750
June 1 Year 2:
Dr interest receivable $1,750
Cr Interest revenue $1750
The collection of cash from Small co:
Dr cash ($50,000+$1750+$1750) $53,500
Cr Interest receivable($1750+$1750) $3,500
Cr Notes receivable $50,000
Explanation:
Upon the lending of $50,000 to Small Co,the cash account is credited with $50,000 since it is an outflow of cash and the notes receivable account debited with the same amount.
However,at year end year 1, interest is due on the notes receivable,which is computed thus:
interest receivable December Year 1=$50,000*7%*6/12=$1,750
The interest due on 31st December year 1 would be debited to interest receivable and credited interest revenue.
Interest due on 1 june year 2=$50,000*7%*6/12=$1,750
Final answer:
Rainey Enterprises would record the loan to Small Co. with a debit to Notes Receivable and a credit to Cash. By Year End, Rainey would adjust for accrued interest, and upon collection, both the principal and remaining interest are recognized and the cash account is increased.
Explanation:
The student has asked how to record the general journal entries for Rainey Enterprises concerning a loan given to Small Co. The entries include the initial loan disbursement, the adjusting entries at the end of Year 1 and the collection of the note along with the final interest at Year 2.
Here is how Rainey Enterprises would record these transactions:
Loan to Small Co on June 1, Year 1:
Debit Notes Receivable $50,000
Credit Cash $50,000
Adjusting Entry at December 31, Year 1:
Debit Interest Receivable $1,750 ($50,000 x 7% x 6/12)
Credit Interest Income $1,750
Adjusting Entry and Collection on June 1, Year 2:
Debit Cash $53,500 ($50,000 principal + $3,500 full year interest)
Credit Notes Receivable $50,000
Credit Interest Income $1,750 (interest already recognized)
Credit Interest Receivable $1,750
Multiple Choice Question 115 Sunland Company sells MP3 players for $50 each. Variable costs are $40 per unit, and fixed costs total $120000. What sales are needed by Sunland to break even?
Answer:
The amount of $600,000 sales require to be at break -even
Explanation:
The amount sales require to be at break -even is computed as:
Units × Price = Variable cost × Units + Fixed Cost
where
Units be X
Price is $50
Variable cost os $40 per unit
Fixed cost amounts to $120,000
So, putting the values above:
X × $50 = $40 × X + $120,000
$50 X = $40X + $120,0000
$50X - $40X = $120,000
$10X = $120,000
X = $120,000 / $10
X = 12,000
So, the sales amounts to as:
Sales = Units × $50
Sales = $12,000 × $50
Sales = $600,000
Eureka Forbes, an Asian consumer appliances company, sells its vacuum cleaners through door-to door sales in Asia. This allows the company to obtain a high conversion ratio. Comment on the length of the channel in the case of Eureka Forbes' vacuum cleaners. Do you think such a distribution method is feasible in the U.S? Why or why not?
Answer:
Answer: Comment on the length of the channel in the case of Eureka Forbes's vaccum cleaner
Explanation:
Eureka Forbes, India"s leading water cleanser maker, is making a bet on outlets as an alternative to achieve share in an increasingly crowded market than his major direst sales which now has more than a hundred and fifty brands.
The Shapoorji Pallonji crew manufacturer stated it won 9% share in water purifiers past three years to contact 67% as a result of an increase in retail exchange regardless of large firms e.g. Hindustan Unilever and a number of multinationals in the market.
Accomplice vice chairman (advertising and marketing) Shashank Sinha said the company will quickly increase the community of retail shops, where the products are sold from 20,000 to 25,000. He said, the organization is developing a model whereby direct revenue executives are present to assist buyers who prefer a mannequin and purchase it straight from the companys internet site. "The knock-and-sale mannequin is losing relevance in digital world.
Eureka Forbes has about 7,000 direct sales executives, making it the biggest direct promoting company in Asia. When we get leads from digital world, assisted revenue can be helping lower return charges since 60% of orders positioned are on money-on-delivery mode, Sinha said. The corporation is increasing its sales in more its direct revenue to smaller towns and for more recent products such as air purifiers and home security solutions, cognizance for which is still in its infancy. The water cleaner industry accounts for 70% of Eureka Forbes turnover, which grew 59% in 2016-17 over the earlier 12 months to touch Rs three,040 core.
Apart from water purifiers, the enterprise is the market chief in vacuum cleaners, with 80% share, and in air purifiers, with 44% share.
Sinha mentioned, the organization is launching value-added products of water purifiers examples are water purifiers which have tea/espresso maker developed into it, they offer flavoured water, sparkling water and also sizzling or cold water from identical unit. He said the company is working on achieving this.
Sinha said tax on water purifiers will go up beneath the goods and offerings tax regime from 14.5% to 18%, while vacuum cleaners and air purifiers will fall in the 28% tax bracket. Also, sales to retail channel have slowed down because outlets are not keen to inventory and direct sales to purchasers are no longer affected, he said.
Cost will no longer be broaden as a result of the larger taxation due to the fact that we wish to study the effect utterly as one of the crucial components are imported. Decision will be made within a month or two he said.
Eureka Forbes uses a short, direct-to-consumer distribution channel in Asia. Its door-to-door sales method may not be as feasible in the U.S. due to cultural preferences, privacy concerns, and higher labor costs.
The length of the distribution channel for Eureka Forbes' vacuum cleaners is relatively short since the company sells its products directly through door-to-door sales. This direct-to-consumer (D2C) approach eliminates the need for intermediaries such as distributors and retailers, allowing Eureka Forbes to achieve higher conversion ratios in Asian markets. However, the feasibility of this distribution method in the U.S. market is questionable due to cultural, economic, and market differences. For example, American consumers may be less receptive to door-to-door selling due to privacy concerns and the convenience of online shopping. Additionally, the high labor costs associated with personal selling might make this approach less viable in the U.S. Market characteristics, such as a preference for large-scale retail outlets and online retail, suggest that alternative distribution strategies could be more effective in reaching consumers in the U.S.
The following events took place at a manufacturing company for the current year:(1) Purchased $95,000 in direct materials.(2) Incurred labor costs as follows: (a) direct, $56,000 and (b) indirect, $13,600.(3) Other manufacturing overhead was $107,000, excluding indirect labor.(4) Transferred 80% of the materials to the manufacturing assembly line.(5) Completed 65% of the Work-in-Process during the year.(6) Sold 85% of the completed goods.(7) There were no beginning inventories.What is the value of the ending Work-in-Process Inventory?a. $95,060.50.b. $13,261.50.c. $14,259.00.d. $88,410.00.
Answer:
D $88410
Explanation:
Work in progress includes all the raw materials, direct labour and conversion costs incurred so far excluding cost of goods sold .
WIP= Intial WIP +Manufacturing costs incurred- Cost of goods sold.
The WIP inventory at the begining of the period is given as nil.
WIP during the period = (95000*80%)+56000+13600+107000
=252600(but it was given that 65% of the Process was completedi.e., finished goodswhich are not the part of the WIP inventory ; hence the remaining 35% is the Work in process inventory)
=$ 88410.
Further the remaining raw material 20% = 95000*20% shall not comprise a part of the WIP as it has not been brought into process itself , it shall lie in raw materials inventory itself.It shall be counted into the WIP once it is brought into the manufacturing assembly line.
Answer:
the value of the ending Work-in-Process Inventory is d. $88,410.00.
Explanation:
Materials utilized in Production Process
Materials Cost=$95,000×80%
= $76,000
Cost of Goods Manufactured Schedule
Direct Materials $76,000
Direct Labor $56,000
Indirect Labor $13,600
Other manufacturing overhead $107,000
Total Manufacturing Costs $252,600
Completed = 65%
Incomplete = 35%
Opening Work In Process Inventory = Nill
Therefore, ending Work-in-Process Inventory = $252,600 × 35%
= $88,410
If a company offers many opportunities for career advancement and expects its jobs to change a lot in the next five years, then according to , an ambitious employee who is enthusiastic about learning new skills might be a good fit for that company.A. EMPLOYER BRAND
B. SOCIAL CONTRACT
C. MATCHING MODEL
D. CONTIGENT WORKFORCE
Option C
According to matching model , an ambitious employee who is enthusiastic about learning new skills might be a good fit for that company
Explanation:‘Matching model’, which intimated that HR practices and the organization composition should be handled in a design that is corresponding with organizational strategy. The matching model justifies praise for implementing an fundamental framework for subsequent theory improvement in the area of strategic Human Resource Management (HRM).
Some sorts of rewards have to be granted based on outcomes of appraisal and the acts of employees. According to matching model this manner is subordinate on the HRD modes and plans of the organization.
The best fit for a company offering career advancement and expecting job changes is an ambitious employee enthusiastic about learning, as per the MATCHING MODEL. This model compares employee attributes with job demands and organizational culture to ensure compatibility. Transferable skills, a proactive approach, and adaptability are key strengths in such dynamic work environments.
If a company offers many opportunities for career advancement and expects its jobs to change a lot in the next five years, then according to C. MATCHING MODEL, an ambitious employee who is enthusiastic about learning new skills might be a good fit for that company. The matching model is an HR approach where the suitability of a candidate is assessed based on whether their skills, knowledge, and personality match the job demands and organizational culture.
Considering the dynamic nature of the job role, someone who possesses a proactive personality, the desire for lifelong learning, and adaptability would be particularly suited to this work environment. Such individuals would be able to adjust and grow with the company, continuously realigning their career goals and capabilities with the evolving needs of the organization.
Employees are indeed a company's greatest asset, and those with transferable skills, a positive attitude, and a readiness to embrace change will find this type of company culture conducive to their career advancement.
Pension data for Millington Enterprises include the following: ($ in millions) Discount rate, 10% Projected benefit obligation, January 1$370 Projected benefit obligation, December 31 475 Accumulated benefit obligation, January 1 310 Accumulated benefit obligation, December 31 425 Cash contributions to pension fund, December 31 160 Benefit payments to retirees, December 31 56 Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
Answer:
The service cost component of pension expense for the year ended December 31 is $124 million
Explanation:
Projected benefit obligation, December 31 $475
Less: Projected benefit obligation, January 1 -$370
Less: Interest cost = -37 =370*10%
Add: Benefit payments to retirees $56
Service cost $124 million
A. Given the historical cost of product Z is $20, the selling price of product Z is $25, costs to sell product Z are $3, the replacement cost for product Z is $21, and the normal profit margin is 40% of sales price, what is the market value that should be used in the lower-of-cost-or-market comparison?
a. $18.b. $20.c. $21.d. $22.
Answer:
j
Explanation:
Ivanhoe Company took a physical inventory on December 31 and determined that goods costing $669,000 were on hand. Not included in the physical count were $11,000 of goods purchased from Pharoah Corporation, f.o.b. shipping point, and $27,000 of goods sold to Ro-Ro Company for $36,000, f.o.b. destination. Both the Pharoah purchase and the Ro-Ro sale were in transit at year-end. What amount should Ivanhoe report as its December 31 inventory
Answer:
Ivanhoe should report as its December 31 inventory $707,000
Explanation:
According to the given data we have the following:
Inventory in hand= $669,000
goods purchased from Pharoah Corporation, f.o.b. shipping point= $11,000
cost of goods sold to Ro-Ro Company=$27,000
Therefore, in order to calculate the amount should Ivanhoe report as its December 31 inventory we have to make the following calculation:
inventory = Inventory in hand+goods purchased from Pharoah Corporation, f.o.b. shipping point+cost of goods sold to Ro-Ro Company
inventory =$669,000+$11,000+$27,000
inventory =$707,000
Ivanhoe should report as its December 31 inventory $707,000
Final answer:
Ivanhoe Company should report an adjusted inventory value of $653,000 on December 31, including the $11,000 of goods in transit from Pharoah Corporation (f.o.b. shipping point) and excluding the $27,000 of goods in transit to Ro-Ro Company (f.o.b. destination).
Explanation:
The amount Ivanhoe should report as its December 31 inventory can be determined by taking into account the goods in transit. The $11,000 of goods purchased from Pharoah Corporation, which were shipped f.o.b. shipping point, should be included in Ivanhoe's inventory because the ownership of the goods transfers to the buyer once the seller ships the goods. However, the $27,000 of goods sold to Ro-Ro Company, which were shipped f.o.b. destination, should not be included in Ivanhoe's inventory since the ownership doesn't transfer until the goods arrive at the destination. Therefore, the inventory on December 31 would be calculated as follows:
Physical inventory count: $669,000
+ Goods in transit from Pharoah Corporation: $11,000
- Goods in transit to Ro-Ro Company: $27,000
Adjusted inventory value: $653,000
a-1. Based on the preceding information, recommend whether to eliminate Division B. a-2. Prepare companywide income statements before and after eliminating Division B. b. During 2017, Division B produced and sold 24,000 units of hand tools. Calculate the contribution to profit if sales and production increase to 39,000 units in 2018? c. Suppose that Solomon could sublease Division B's manufacturing facility for $425,000. Assuming that Division B currently has a production and sales volume of 39,000 units, determine whether Solomon should accept the opportunity to sublease the facility or continue production at Division B.
Answer:
solomon is supposed to continue production at Division B because of the increase in the production volume and sales volume that has increased.
Explanation:
Solomon should take the risk of continuing in the business for like a certian period so that he can be able to asses the production fully before making a decision of probably Subleasing the facility.
Sublease: this is the act of leasing a property by a tenant to a subtenant
What is a good definition for the Micro and Macro Analytic view ( Communication Studies)?
Answer:
A pair of good definitions for the Micro and Macro Analytic view are:
Macro is the study of large-scale social processes like a society's ability to adapt to new conditions or a society's perception.
Mico: is the study and analysis of small-scale interactions like the dynamics of a group, the perceptions of a person, or the conflict between two persons.
Explanation:
A macro analytic point of view is used to analyze and study large-scale social processes. It is call macro because the term comes from the greek term of large scale. While micro omes from the greek term of small. They are both used in a bast range of disciplines to describe the different perspectives they have to study phenomenoms from different sizes.
Hank has a 32% marginal tax rate and has already recognized a STCL of $8,000 and a L TCG of $5,000, both due to the sale of stock. He is considering the sale of an antique clock held for investment that would result in a $7,000 L TCG. What is the increase in his tax liability if he goes ahead with the proposed transaction this year
Answer:
The increase in his tax liability is $1,120
Explanation:
STCL due to sale of stock = $8,000
LTCG due to sale of stock = $5,000
∴Net STCL = $8,000 - $5,000
Net STCL = $3,000
LTCG on sale of antique clock = $7,000
∴Net LTCG on sale of antique = $7,000 - $3,000 = $4,000
LTCG on sale of antiques is taxed at the rate of 28%
∴ Tax liability = $4,000 * 28%
Tax liability = $4,000 * 0.28
Tax liability = $1,120
Headland Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,040,900 on January 1, 2017. Headland expected to complete the building by December 31, 2017. Headland has the following debt obligations outstanding during the construction period.
Construction loan-12% interest, payable semiannually, issued December 31, 2016 $2,017,900
Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2018 1,586,200
Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2021 995,900
a. Assume that Headland completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,197,700, and the weighted-average amount of accumulated expenditures was $3,781,600. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.)
Avoidable Interest $
b. Compute the depreciation expense for the year ended December 31, 2018. Headland elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $298,200. (Round answer to 0 decimal places, e.g. 5,275.)
Depreciation Expense $
Answer:
a) $425,320,48
b) $177,494,02
Explanation:
The avoidable interest = $425,320,48
The Depreciation Expense= $177,494,02.
Kindly go through the attached file to see the step by step approach that yielded the answers from the question.
The dividend policy of Berkshire Gardens Inc. can be represented by a gradual adjustment to a target dividend payout ratio. Last year Berkshire had earnings per share of $3.00 and paid a dividend of $0.60 a share. This year it estimates earnings per share will be $4.00. Find its dividend per share for this year if it has a 25% target payout ratio and uses a five-year period to adjust its dividend.
The dividend per share for this year can be calculated using the target payout ratio and estimated earnings per share. In this case, the dividend per share is $1.00.
Explanation:To find the dividend per share for this year, we need to calculate the target dividend payout based on the target payout ratio and estimated earnings per share.
The target dividend payout ratio is 25%, which means the company aims to distribute 25% of its earnings as dividends.
The estimated earnings per share for this year is $4.00.
So, the dividend per share for this year can be calculated as:
= $4.00 * 0.25
= $1.00
Therefore, the dividend per share for this year is $1.00.
Berkshire Gardens Inc.'s dividend per share for this year, considering a five-year adjustment period to a 25% payout ratio with estimated earnings per share of $4.00, is $0.68.
To calculate the dividend per share for this year:
Last year, earnings per share (EPS) were $3.00 and the dividend was $0.60 per share.This year, the estimated EPS is $4.00.The target payout ratio is 25%, so the target dividend would be 0.25 × $4.00 = $1.00 per share.However, the company uses a five-year period to adjust its dividend.Last year's dividend was $0.60, and the target dividend was $1.00. The adjustment needed is $1.00 - $0.60 = $0.40.Over five years, the annual adjustment is $0.40 / 5 = $0.08.Therefore, the dividend per share for this year will be $0.60 + $0.08 = $0.68.Taggart Transcontinental has a divided yield of 3.5%. Taggart's equity cost of capital is 10%, and its dividends are expected to grow at a constant rate. Based on this information, Taggart's constant growth rate in dividends is closest to:
Taggart's constant growth rate in dividends is closest to: 6.5%
Solution:
Given,
Taggart Transcontinental has a divided yield of 3.5%
Equity cost of capital = 10%
To Find: Taggart's constant growth rate in dividends
So , we need to calculate :
= > 10% - 3.5%= 6.5%
Taggart's constant growth rate in dividends is closest to: 6.5%
Final answer:
Taggart Transcontinental's constant growth rate in dividends is calculated to be 6.5% using the Gordon Growth Model and the given equity cost of capital of 10% with a dividend yield of 3.5%.
Explanation:
We can use the Gordon Growth Model (also known as the Dividend Discount Model) to calculate Taggart's constant growth rate in dividends. This model is represented by the equation P = D / (r - g), where P is the current stock price, D is the dividend per share, r is the equity cost of capital, and g is the constant growth rate.
To solve for g, we can rearrange the formula to g = r - (D/P). Given Taggart's divided yield of 3.5%, if we assume a stock price of $1, the dividend per share is equal to 0.035 (3.5% of $1). Taggart's equity cost of capital is given as 10%, or 0.10. Plugging these values into the formula, we get g = 0.10 - 0.035, so the constant growth rate in dividends is 0.065, or 6.5%.
Geoff hesitated as he read the fast food menu, unsure whether he should supersize his order of delicious golden French fries. Doing so would increase his cost from $0.99 to $1.59 and just might provide him the nutrition he needed to make it through the second half of his day at the office. Of course, if he finished his hamburger and the usual amount of fries, he would simply throw the extra ones away. However, if he failed to supersize his order, he would have to take a candy bar break mid-afternoon and they weren't exactly giving them away in the break room vending machines. He would likely need two candy bars, which sold for $0.95 each. What is Geoff's target service level
Answer:
Geoff's target service level is 0.76
Explanation:
Doing so would expand his expense from $0.99 to $1.59 and could very well give him the sustenance he expected to endure the second 50% of his day at the workplace. Obviously, in the event that he completed his cheeseburger and the typical measure of fries, he would essentially discard the additional ones. In any case, on the off chance that he neglected to supersize his request, he would need to take a confection break mid-evening and they weren't actually offering them away in the reprieve room candy machines. He would probably require two pieces of candy, which sold for $0.95 each.
Answer:
0.76
Explanation:
Doing so would expand his expense from $0.99 to $1.59 and very well might give him the nourishment he expected to endure the second 50% of his day at the workplace. Obviously, in the event that he completed his burger and the standard measure of fries, he would essentially discard the additional ones. Nonetheless, in the event that he neglected to supersize his request, he would need to take a confection break mid-evening and they weren't actually offering them away in the reprieve room candy machines. He would almost certainly require two pieces of candy, which sold for $0.95 each.
Suppose payments will be made for 9 1 4 years at the end of each month from an ordinary annuity earning interest at the rate of 3.75%/year compounded monthly. If the present value of the annuity is $46,000, what should be the size of each payment from the annuity
To calculate the size of each payment from the annuity, use the present value formula. The size of each payment from the annuity should be approximately $388.88.
Explanation:To calculate the size of each payment from the annuity, we need to use the present value formula. The present value of the annuity is given as $46,000. The interest rate is 3.75% per year, compounded monthly. The annuity will be paid for 9 1/4 years, which is a total of 111 months.
Using the present value formula:
Present Value = Payment * (1 - (1 + interest rate/number of periods)^(-number of periods))) / (interest rate/number of periods)Plugging in the values, we have: 46000 = Payment * (1 - (1 + 0.0375/12)^(-111))) / (0.0375/12)Solving for Payment, we find that the size of each payment from the annuity should be approximately $388.88.
The size of each payment should be approximately [tex]\$144.81.[/tex]
The correct size of each payment from the annuity is given by the formula for the present value of an ordinary annuity:
[tex]\[ P = \frac{PV}{\frac{1 - (1 + r)^{-n}}{r}} \][/tex]
where:
[tex]\( P \)[/tex] is the size of each payment,
[tex]\( PV \)[/tex] is the present value of the annuity,
[tex]\( r \)[/tex] is the monthly interest rate, and
[tex]\( n \)[/tex] is the total number of payments.
Given:
[tex]\( PV = \$46,000 \)[/tex]
The annual interest rate is [tex]\( 3.75\% \)[/tex],
Interest is compounded monthly, so the monthly interest rate [tex]\( r \)[/tex] is [tex]\( \frac{3.75\%}{12} \)[/tex],
The annuity makes payments for [tex]\( 9\frac{1}{4} \)[/tex] years, which is [tex]\( 9 + \frac{1}{4} = 9.25 \) years,[/tex]
There are [tex]12[/tex] payments per year, so the total number of payments [tex]\( n \)[/tex] is [tex]\( 9.25 \times 12 \).[/tex]
First, we calculate the monthly interest rate:
[tex]\[ r = \frac{3.75\%}{12} = \frac{0.0375}{12} = 0.003125 \][/tex]
Next, we calculate the total number of payments:
[tex]\[ n = 9.25 \times 12 = 111 \][/tex]
Now we can plug these values into the annuity formula:
[tex]\[ P = \frac{46000}{\frac{1 - (1 + 0.003125)^{-111}}{0.003125}} \][/tex]
Solving this equation:
[tex]\[ P = \frac{46000}{\frac{1 - (1 + 0.003125)^{-111}}{0.003125}} \][/tex]
[tex]\[ P = \frac{46000}{\frac{1 - (1.003125)^{-111}}{0.003125}} \][/tex]
[tex]\[ P = \frac{46000}{317.6051} \][/tex]
[tex]\[ P = 144.81 \][/tex]