Answer:
Instructions are below.
Explanation:
Giving the following information:
Standard quantity per unit= 9.2 grams
Standard price= $14.70 per gram
Actual materials purchased= 5,500 grams
The actual cost of materials= $76,450
Actual materials used in production= 5,100 grams
Actual output= 540 units
To calculate the direct material variances, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Actual price= 76,450/5,500= $13.9
Direct material price variance= (14.7 - 13.9)*5,500= $4,400 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Standard quantity= 540*9.2= 4,968 grams
Direct material quantity variance= (4,968 - 5,100)*14.7= $1,940.4 unfavorable
The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Blue Elk Manufacturing generated $500,000 net income on sales of $13,000,000. The firm expects sales to increase by 16% this coming year and also expects to maintain its long-run dividend payout ratio of 45%. Suppose Blue Elk Manufacturing's assets are fully utilized, use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Blue Elk Manufacturing's expected sales. $460,000 $576,000 $528,000 $384,000 When a firm grows, some liabilities grow spontaneously along with sales. Spontaneous liabilities are a source of capital that the firm will generate internally, so they reduce the need for external capital. How much of the total increase in assets will be supplied by spontaneous liabilities for Blue Elk Manufacturing this year? $67,200 $51,200 $64,000 $76,800 In addition, Blue Elk Manufacturing is expected to generate net income this year. The firm will pay cut some of its earnings as dividends but will retain the rest for future asset investment. Again, the more a firm generates internally from its operations, the less it will have to raise externally from the capital markets. Assume that the firm's profit margin and dividend payout ratio are expected to remain constant. Given the preceding information, Blue Elk Manufacturing is expected to generate from operations that will be added to retained earnings. According to the AFN equation and projections for Blue Elk Manufacturing, the firm's AFN is
Answer:
Required Asset to increase sales by 16% is $480,000
Increased liability percentage is $64,000
Added to retained earnings $319,000
Explanation:
In November 2013, a car dealer is trying to determine how many cars to order from the manufacturer for 2014. A car ordered in 2013 cost $10000. The dealer expects that each car ordered from the manufacturer will cost 4% to 8% more in 2014. The selling price for each car in 2013 was $15000 but the dealer expects he will have to give a discount because of heavy competition, and that the selling price in 2014 will be between 93% and 98% of the 2013 price. The dealer expects to sell between 700 and 900 cars. Refer to the Car Dealership Problem and start with the original values. The cost increase is 6.38%. If the dealer's profits are $2,734,980, what was the discount and how many cars did the dealer sell?
Answer:
The car dealer sold between 700 - 900 cars, and offered discount ed prices between 97% and 91.2% of 2013 price and ended the year with a profit of $2,734,980
Explanation:
This problem leaves us with 3 unknowns. The Volume sold, the price sold and of course the discount offered.
In this instance we should also respond the same way the question was given. By offering ranges to either unknowns.
The attached file shows the full workings and helps with better presentation
A__________is a network of facilities and processes that describes the flow of materials, finished goods, services, information, and financial transactions from suppliers, through the facilities and processes that create goods and services, and those that deliver them to the customer.
Answer: Value chain
Explanation: a. value chain
b. product life cycle
c. business cycle
d. product-process matrix
Value chain are the functional activities of a business that add value to its customer which include the flow of materials, finished goods, services, information, and financial transactions from suppliers, through the facilities and processes that create goods and services, and those that deliver them to the customer. It is essential in making it possible for products, information, and finances to flow through the business. This helps optimize these processes thus creating better value in the relationships between companies, its customers, including improvement in the overall efficiency of business.
A supply chain is a collection of structures and procedures that describes the movement of raw materials, manufactured items, services, data, and money from suppliers to consumers.
Explanation:A supply chain is a network of facilities and processes that describes the flow of materials, finished goods, services, information, and financial transactions from suppliers, through the facilities and processes that create goods and services, and those that deliver them to the customer. It involves the coordination and management of activities such as procurement, production, distribution, and customer service.
For example, let's say you are a customer ordering a new phone online. The supply chain begins with the suppliers who provide the raw materials, such as the components for the phone. The raw materials are then sent to manufacturing facilities, where the phones are assembled. From there, the phones are distributed to warehouses and ultimately delivered to the customer.
Efficient supply chain management is important for businesses to ensure timely delivery, minimize costs, and optimize customer satisfaction. It involves strategic decision-making, coordination, and effective communication between various stakeholders.
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Lowe’s learned that 25 percent of the time its customers buy a garden hose, they also purchase a sprinkler. Patterns and relationships like this are discovered through a technique called
Answer: Data mining
Explanation: Patterns and relationships as indicated are discovered through a technique known as data mining, which is defined as the use of a variety of statistical analysis tools in marketing research to uncover previously unknown patterns in data or relationships among variables. It is also given as a technique for searching large scale databases for patterns; used mainly to find previously unknown correlations between variables that may be commercially useful.
Answer:
Data mining
Explanation:
Data mining deals with companies converting raw data into useful information. This is achieved by using softwares to look for consistent patterns in large volumes of data.
It is useful in business as they learn more about their customers and develop more effective marketing strategies which in turn increases sales and decreases costs.
Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,880 hours and the total estimated manufacturing overhead was $516,368. At the end of the year, actual direct labor-hours for the year were 21,700 hours and the actual manufacturing overhead for the year was $516,368. Overhead at the end of the year was: (Round your intermediate calculations to 2 decimal places.)
Answer:
$4,248 under applied
Explanation:
For computing the ending overhead amount we need to do following calculations which are shown below:
Predetermined overhead rate is
= Total estimated manufacturing overhead ÷ estimated direct labor-hours
= $516,368 ÷ 21,880 hours
= $23.6 per hour
Now
Actual overhead applied is
= $23.6 × 21,700 hours
= $512,120
Therefore,
Overhead under applied is
= Manufacturing overhead - Actual overhead applied
= $516,368 - $512,120
= $4,248 under applied
Whispering Company purchased equipment for $286,800 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $13,200. Estimated production is 48,000 units and estimated working hours are 20,000. During 2020, Whispering uses the equipment for 550 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Whispering is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to 0 decimal places, e.g. 45,892.) (a) Straight-line method for 2020 $enter a dollar amount (b) Activity method (units of output) for 2020 $enter a dollar amount (c) Activity method (working hours) for 2020 $enter a dollar amount (d) Sum-of-the-years'-digits method for 2022 $enter a dollar amount (e) Double-declining-balance method for 2021 $enter a dollar amount
(a) $8,600
(b) $5,700
(c) $7,524
(d) $51,300 and
(e) $67,219
Explanation:
Given information's are
value of Equipment = $286,800 on October 1, 2020.
Accounting base = on a calendar-year basis ending December 31
(a) Straight-line method for 2020
Depreciation = value of Equipment - salvage value ÷ life span of Equipment
Depreciation = $286,800 - $13,200 ÷ 8 = $34,400
For 3 months from October 1st to 31st December 2020
= $34,400 ÷ 12 × 3 = $8,600
(b) Activity method (units of output) for 2020
Depreciation =Amount of Depreciation ÷ Total estimated production × unit produced during 2020
= $273,600 ÷ 48,000 = $5.7 × 1000 = $5,700
(c) Activity method (working hours) for 2020
Depreciation =Amount of Depreciation ÷ Total estimated working hours × working hours during 2020
= $273,600 ÷ 20,000 = $13.68 × 550 = $7,524
(d) Sum-of-the-years'-digits method for 2022
Instead of adding the individual digits in the years of the asset's useful life, the following formula can be used to compute the sum of the digits: n(n+1) divided by 2, where n = the useful life in years
Depreciate Cost = Original Cost - Salvage Value = (Cost - Salvage)
Fraction for a Given Period = (Life - Period + 1) / ((Life × (Life + 1)) / 2)
depreciation for 2022 is $51,300
(e) Double-declining-balance method for 2021
Double declining balance method is a form of an accelerated depreciation method in which the asset value is depreciated at twice the rate it is done in the straight-line method
Double Declining Balance = 2 X Cost of the asset X Depreciation rate
= 2 × $286,800 × 12.5 ÷100 = $67,219
To find the best production method, the total costs are calculated based on labor and capital costs. Initially, Method 1 is the most cost-effective. When labor costs rise, Method 1 is still the most economical choice.
Explanation:To determine the best production method, we calculate the total cost for each method by multiplying the number of units of labor and capital required by their respective costs. Initially, the cost of labor is $100/unit, and the cost of capital is $400/unit.
Method 1: (50 units of labor × $100) + (10 units of capital × $400) = $5,000 + $4,000 = $9,000Method 2: (20 units of labor × $100) + (40 units of capital × $400) = $2,000 + $16,000 = $18,000Method 3: (10 units of labor × $100) + (70 units of capital × $400) = $1,000 + $28,000 = $29,000Thus, Method 1 is the most cost-effective at the initial labor cost.
When the cost of labor rises to $200/unit, the calculations are:
Method 1: (50 units of labor × $200) + (10 units of capital × $400) = $10,000 + $4,000 = $14,000Method 2: (20 units of labor × $200) + (40 units of capital × $400) = $4,000 + $16,000 = $20,000Method 3: (10 units of labor × $200) + (70 units of capital × $400) = $2,000 + $28,000 = $30,000With the increased labor cost, Method 1 remains the most economical choice. Although Method 1's cost has increased, it has not surpassed the total cost of the other methods.
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Fast Co. produces its product through two processing departments. Direct materials are added at the start of production in the Cutting department, and conversion costs are added evenly throughout each process. The company uses monthly reporting periods for its weighted-average process costing system. The Work in Process Inventory-Cutting account has a balance of $98,300 as of October 1, which consists of $21,300 of direct materials and $77,000 of conversion costs.
During the month, the Cutting department incurred the following costs:
Direct materials $ 204,050
Conversion 837,960
At the beginning of the month, 39,000 units were in process. During October, the company started 158,000 units and transferred 168,000 units to the Assembly department. At the end of the month, the Cutting department's work in process inventory consisted of 29,000 units that were 80% complete with respect to conversion costs.
Prepare the Cutting department's process cost summary for October using the weighted average method.
Answer:
First we find the Equivalent units, Then total costs and then allocate the costs to the different units such as finished Goods and WIP ending.
Explanation:
Fast Co.
Process Cost Summary
Particulars Units %of Completion Equivalent Units
Mat. Con. Costs Mat. Con. Costs
Units Transferred 168,000 100 100 168,000 168,000
Ending Inventory 29,000 100 80 29,000 23,200
Total Equivalent Units 197,000 191,200
Materials Conversion Costs Total
WIP Opening $21,300 $ 77,000 98300
Costs Added $ 204,050 $ 835,960 1040010
Total Costs $ 225,350 $ 912,960 1138310 (a)
Material Cost Per unit = $ 225,350/197,000= $ 1.144
Conversion Costs Per Unit = $ 912,960/ 191,200 = $ 4.77
Total Units Transferred to Finished Goods = 168,000
Total Cost of F.G = Materials $ 1.144* 168,000= $ 191520
Total Cost of F.G = Conversion $ 4.77* 168,000= $ 801360
Costs Transferred To Finished Goods = $191520+$ 801360= $ 992880
Cost oF ending WIP units
Materials 29000*$ 1.144= $33 176
Conversion 23,200 * $4.77= 110664
Total Costs= $ 1443840
Total Costs Of Cutting Department= Costs Of Finished Goods + Costs Of WIP Ending
Total Costs Of Cutting Department=$ 992880+$ 1443840=$1136720(b)
If we see we find that $1138310 (a) and $1136720(b) are almost equal . There is a slight difference( 1590) because of the rounding off decimal numbers.
7. On May 1, Jennings, a car dealer, emails Wheeler and says, "I have a 1955 Thunderbird convertible in mint condition that I will sell you for $13,500 at any time before June 9. [Signed] David Jennings." By May 15, having heard nothing from Wheeler, Jennings sells the car to another. On May 29, Wheeler accepts Jennings’ offer and tenders $13,500. When told that Jennings had sold the car to another, Wheeler claims Jennings has breached their contract. Did Jennings breach? Explain.
Answer:
Jennings breached the contract
Explanation:
A merchant firm offer is one that is irrevocable, the offeror makes an offer to sell goods within a given time frame and signs off on it.
Even without consideration (acceptance) from the other party, the contract is irrevocable.
A merchant firm offer that does not have a stated time frame rains open for a reasonable time.
In this instance Jennings made a merchant firm offer. Even if Wheeler had not accepted the offer it is irrevocable till June 9.
So by selling the car on May 15 he has breached the contract.
Yes, Jennings breached the contract with Wheeler by selling the car to someone else after Wheeler accepted the offer.
Explanation:Yes, Jennings breached the contract with Wheeler. In this case, an offer was made by Jennings to Wheeler through email. Wheeler accepted the offer by tendering the correct amount of money, but Jennings had already sold the car to someone else. However, the key factor here is whether there was a valid contract in place between the parties.
In contract law, an offer becomes effective upon the communication of the offer to the offeree. In this case, by emailing Wheeler with the offer, Jennings effectively communicated the offer to Wheeler. Upon receiving the offer, Wheeler had the option to accept or reject it.
By tendering the money, Wheeler accepted the offer, and a contract was formed. However, since Jennings had already sold the car to someone else, he breached the contract with Wheeler. Therefore, Jennings is legally responsible for breaching the contract.
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Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 10%. The Federal Reserve buys a government bond worth $500,000 from Eric, a customer of First Main Street Bank. He deposits the money into his checking account at First Main Street Bank.The following table reflects any changes in First Main Street Bank's balance sheet (before the bank makes any new loans):Assets LiabilitiesLoans $500,000 Checkable Deposits $500,000The following table shows the effects of new deposit on excess and required reserves, assuming a required reserve ratio is 10%.Hint: If the change is negative, be sure to enter the value as a negative number.Amount Deposited (Dollars) Change in Excess Reserves (Dollars) Change in Required Reserves (Dollars)500,000 450,000 50,000Now, suppose First Main Street Bank loans out all of its new excess reserves to Cho, who immediately writes a check for the full amount to Bob. Bob then immediately deposits the funds into his checking account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess reserves to Kenji, who writes a check to Ginny, who deposits the money in her account at Third Fidelity Bank. Finally, Third Fidelity lends out all of its new excess reserves to Lucia.Fill in the following table to show the effect of this ongoing chain of events at each banks. Enter each answer to the nearest dollar.Bank Increase in Checkable Deposits (Dollars) Increase in Required Reserves (Dollars) Increase in Loans (Dollars)First Main Street Bank Second Republic Bank Third Fidelity Bank Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reserves. Under these assumptions, the $500,000 injection into the money supply results in overall increase of ......................... in checkable deposits.
Answer:
Under these assumptions, the $500,000 injection into the money supply results in overall increase of 5,000,000 in checkable deposits.
Explanation:
Multiplier × Money supply
= 1 / 0.10 × 500,000
⇒ 5,000,000
First Main Street Bank
Increase in Checkable Deposits: 500,000
Increase in Required Reserves: 50,000
Increase in Loans: 450,000
Second Republic Bank
Increase in Checkable Deposits: 450,000
Increase in Required Reserves: 45,000
Increase in Loans: 405,000
Third Fidelity Bank
Increase in Checkable Deposits: 405,000
Increase in Required Reserves: 40,500
Increase in Loans: 364,500
Presented here are the original overhead budget and the actual costs incurred during April for Piccolo Inc. Piccolo’s managers relate overhead to direct labor hours for planning, control, and product costing purposes. The original budget is based on budgeted production of 20,000 units in 4,000 standard direct labor hours. Actual production of 21,600 units required 4,500 actual direct labor hours.
Answer:
Question might be incomplete but a KEY is: Piccolo's managers relate Overhead Production to Direct Labour Hours; for the sake or purpose of PLANNING, CONTROL, and PRODUCT COSTING.
If this be the reason for the numerical data within, then we analyze thus:
Explanation:
Let's see how the actual data differs from the budgeted data.
20,000 ~ 4,000
21,600 ~ X
Cross multiplying,
X = (21,600×4,000) ÷ 20,000
X = 4,320 direct labour hours
This means that if the actual production followed the budgeted production proportionally, a lesser amount - 4,320 DLH - of direct labour hours would have been used eventually.
How can this information influence the planning, control, and product costing in Piccolo Inc.?
In planning for the next financial period, maybe the month of May, Piccolo's managers can:
(A) Cut down on direct labour hours because the marginal product of actual labour is less than the marginal product of the standard/budgeted labour effort
(B) Control (reduce) the actual units produced if they would spend less on cost/payment for labour
(C) Increase the unit cost or price of goods produced, in order to make more profit and/or offset the increased expenses on direct labour hours.
Martin Company had the following department information for the current year: work in process, May 1 (physical units), 8,000; completed and transferred out (physical units), 35,000; and work in process, May 31 (physical units), 13,000. Materials are added at the beginning of the process. What is the total number of equivalent units for materials in May
Final answer:
The total number of equivalent units for materials in May for Martin Company is calculated by adding the completed and transferred out units to the units in process at the end of the month, resulting in 48,000 equivalent units.
Explanation:
The student asked about calculating the total number of equivalent units for materials for Martin Company in the month of May, with given data on work in process at the beginning and end of the month, and completed and transferred out units. Since materials are added at the beginning of the process, the equivalent units for materials would be the total units introduced into the process for the month. This includes both units completed and transferred out and the units still in process at the end of the month. Therefore, the calculation would be:
Completed and transferred out: 35,000 unitsWork in process, May 31: 13,000 unitsTotal units for materials = 35,000 (completed and transferred) + 13,000 (ending work in process) = 48,000 equivalent units for materials in May.
Your goal is to have $12,500 in your bank account by the end of six years. If the interest rate remains constant at 9% and you want to make annual identical deposits, how much will you need to deposit in your account at the end of each year to reach your goal
Answer:
Annual deposit = $1,661.497
Explanation:
This investment scheme been considered is known as sinking funds.
A Sinking Fund involves saving a series of equal amount periodically invested at certain rate of interest to accumulate a target amount in the future.
The amount to be deposited periodically can be determined as follows:
A= FV/ ((1+r)^(n) - 1)/n)
A- annual deposit, FV- future value - $12,500 r- 9%, n- 6
So we can apply this formula as follows:
A = 12,500/ (1.09^(6)-1)/0.09
A = $1,661.497
Creative Sound Systems sold investments, land, and its own common stock for $39 million, $15.9 million, and $41.8 million, respectively. Creative Sound Systems also purchased treasury stock, equipment, and a patent for $21.9 million, $25.9 million, and $12.9 million, respectively. What amount should Creative Sound Systems report as net cash flows from financing activities?
Answer:
Creative Sound Systems should report $15,9 million as net cash flows from financing activities.
Explanation:
Consider only items relating to financing activities.
Cash flow from financing activities
Proceeds from Sale of common stock $41.8 million
Purchased of treasury stock ( $25.9 million)
Net Cash flow from Financing Activities $15,9 million
Answer:
The net cash flows from financing activities is $19.9 million
Explanation:
The net cash flows from financing activities comprises of cash inflows from the issue of common stocks of $41.8 million and the cash outflow expended on purchase of treasury stock of $21.9 million,hence the net cash flows from financing activities is $19.9 million ($41,8 million minus $21.9 million)
Cash inflows and outflows from the sale of land ,equipment ,investments as well as that of patents relate to investing activities of Creative Sound Systems,hence are not included in the calculation of net cash flows from financing activities
Shutterstock/Rowpel.com Knowledge Check 01 Voluntary deductions from employee pay can include all of the following: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
a. Medicare taxes
b. Pension contributions
c. Life insurance premiums
d. Social Security taxes
e. Union dues
Answer: Pension contributions.
Life insurance premiums
Union dues.
Explanation:
The employee is the one who decides if they want to pay Pension contributions, Life insurance premiums or Union dues as these are considered Voluntary deductions meaning that they have to elect for them to be subtracted from gross pay for it to actually happen. If they do not wish for them to be deducted it is their own prerogative.
Medicare Taxes and Social Security Taxes are however mandatory and have to be paid from employee salary.
Voluntary deductions from an employee's pay can include contributions to a pension plan like a 401(k), life insurance premiums, and union dues. Medicare taxes and Social Security taxes are mandatory and not considered voluntary deductions.
Voluntary deductions from employee pay can include several different types of payments that the employee elects to have withheld from their paycheck.
These are not the same as compulsory payroll taxes like Social Security taxes and Medicare. Voluntary payroll deductions can include pension contributions, such as a 401(k) plan, where employees authorize a payroll deduction, often matched by the employer, which is valuable as those deductions are tax-deferred. Another example of voluntary deductions includes payments for life insurance premiums, which provide financial benefits to a designated beneficiary upon the employee's death. Additionally, employees who are members of labor unions might have union dues automatically deducted from their pay.
However, Medicare taxes and Social Security taxes are not considered voluntary deductions. They are mandatory payroll taxes, both of which have fixed rates and are deducted from an employee's wages. Employers also pay a portion of these taxes on behalf of their employees directly from the employer's own funds.
The automobile industry in both Brazil and Mexico is thriving. If you were a government official from an African country (such as Morocco, Nigeria, or South Africa) who has visited both countries and has been very impressed, which approach would you recommend to your own government interested in attracting FDI from global automakers: the Brazilian approach or the Mexican approach? Why
Answer:
The Brazilian approach
Explanation:
Since the countries approach successful and have grown very well. I have to but into consideration the African conditions to make business go internationally. As a official in the government of africa, i will use the approach Brazil , Mexico has a great location to make business. Especially being a neighbor of U.S. is providing agreat opportunity. In an African country, location will be of no benefit to you. This will affect negatively to make business with other countries such as Asia and European Union . All this will make it hard for an African country to be in a market that is competitive . When your competitors get low materials and provide low shipping costs, you need to handle to reduce your production cost to be in the market for the same amount of money.
Comparing the Brazilian and Mexican approaches to attracting FDI from global automakers and recommending the best approach for an African country.
The Brazilian Approach:
Brazil has a stable economy and government incentives that attract foreign automakers. The country's focus on producing SUV-like cars with flex-fuel engines caters to consumer demands and aligns with the biofuel industry.
The Mexican Approach:
Mexico offers cost savings for automakers due to lower wages and is part of a free trade bloc with the United States, allowing for easier access to markets. Multinationals like Volkswagen and Toyota have established assembly plants in Mexico to benefit from these advantages.
Recommendation:
Considering the stable economy, consumer demands, and government incentives, the Brazilian approach may be more suitable for attracting FDI from global automakers for an African country looking to boost its automotive industry.
You invest in a piece of equipment costing $40,000. The equipment will be used for two years, and it will be worth $15,000 at the end of two years. The machine will be used for 4,000 hours during the first year and 6,000 hours during the second year. The expected savings associated with the use of the piece of equipment will be $28,000 during the first year and $40,000 during the second year. Your interest rate is 10%. (a) What is the capital recovery cost
Answer:
The answer is given below;
Explanation:
Description 0 1 2
Equipment (40,000)
Depreciation
(40,000/10,000)*4,000 (16,000)
(40,000/10,000)*6,000 (24,000)
Savings 28,000 40,000
Salvage Value 15,000
Net Cash flows 12,000 31,000
PV factor 1/1.1 =.91 1/1.1^2=.83
Net present value
PV factor*net cash flows 10,920 25,730
(10,920+25,730) 36,650
Net present value (40,000)+36,650=(3,350)
On January 1, 2018, Shehata Coffee Shop (SCS) acquired kitchen equipment for $31,800 cash. SCS estimated a $1,200 residual value and an estimated useful life of 4 years. SCS uses straight-line depreciation computed monthly. On July 1, 2021, the company sold the equipment for $5,700 cash.
Required:
a. Calculate the annual Depreciation Expense; show your work, 1.5 points
b. Provide the journal entry to record the sale, show your work, 6 points
Answer:
Depreciation is $7,650
The journal entries for sale :
Dr Cash $5,700
Dr accumulated depreciation $26,775
Cr Kitchen equipment $31,800
Cr Gain on disposal of kitchen equipment $675
Explanation:
Annual depreciation =cost-residual value/useful life
cost is $31,800
residual value is $1,200
useful life is 4 years
Annual depreciation=($31,800-$1,200)/4=$7,650
The kitchen equipment was disposed off when it has been used for 3 years and six months,hence the accumulated depreciation is shown below:
=annual depreciation*3.5
accumulated depreciation=$7.650*3.5=$26,775.00
n a recent annual report, Rosh Corporation disclosed that 60,000,000 shares of common stock have been authorized. At the beginning of the fiscal year, a total of 36,356,357 shares had been issued and the number of shares in treasury stock was 7,171,269. During the year, 558,765 additional shares were issued, and the number of treasury shares increased by 3,034,188. Determine the number of shares outstanding at the end of the year. (
Final answer:
Rosh Corporation has 26,709,665 shares outstanding at the end of the year, taking into account issued shares and treasury stock. Regarding the Darkroom Window shade Company, a majority vote is needed to change management, and investors 1 and 2 together do not have a majority, as they control 38,000 out of 100,000 shares.
Explanation:
To determine the number of shares outstanding at the end of the year for Rosh Corporation, we need to account for the shares that were both issued and those that were moved to treasury stock. Initially, there were 36,356,357 shares issued. During the year, an additional 558,765 shares were issued, resulting in a total of 36,915,122 shares issued. However, treasury stocks increased by 3,034,188 shares, so these are subtracted from the issued shares to determine the amount of outstanding shares. Thus, the calculation for the outstanding shares is as follows:
Calculate total issued shares: 36,356,357 initially issued + 558,765 additional issued = 36,915,122 total issued shares.Adjust for treasury shares: 7,171,269 initial treasury shares + 3,034,188 additional treasury shares = 10,205,457 total treasury shares.Subtract total treasury shares from total issued shares to get outstanding shares: 36,915,122 total issued shares - 10,205,457 total treasury shares = 26,709,665 shares outstanding.The Darkroom Windowshade Company problem deals with the concept of majority voting in corporate governance. In this case, to change the company's top management, a majority of the shares need to vote in favor. As majority is typically considered to be more than 50%, the combined total shares to change the management would need to be over 50,000.
For investors 1 and 2 to always get their way in how the company is run, they would need to control over 50% of the voting power. Together, they have 20,000 + 18,000 = 38,000 shares, which is less than the needed majority of 50,001 shares. Therefore, they cannot be certain of getting their way and would require additional investor(s) to join them to ensure a majority vote .
Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to nondetectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 5% of the good units. Data for December 2015 are as follows:WIP, beginning inventory 12/1/2015 23,000 unitsDirect materials (100% complete)conversion costs (45% complete)Started in December 76,500 unitsCompleted and transferred out 12/31/2015 72,100 unitsWIP, ending inventory 12/31/2015 19,000 unitsDirect materials (100% complete)Conversion costs (40% complete)Costs for December:WIP, beginning inventory:Direct materials $153,000Conversion costs 77,100Direct materials added 223,400Conversion costs added 294,000Abnormal spoilage totals ________.8400 units4845 units3605 units4025 units
Answer:
8,400 units
Explanation:
Abnormal spoilage is amount of units which are wasted or destroyed during production. Units that do not meet the standard can also be a part of abnormal spoilage. To calculate abnormal spoilage we will use formula below;
Abnormal Spoilage units = (Work in process beginning inventory + Units completed and transferred out) - (Units in work in process + Ending inventory units)
Abnormal Spoilage Units = (23,000 + 76,500) - (72,100 + 19,000) = 8,400 units.
Peter heads the communications department of Xenon Inc. He shows concern for the personal needs of his followers and helps them with work wherever required. He inspires his employees to work with enthusiasm and assigns projects with reasonable timelines. He also defines job responsibilities, sets targets, and inspects quality of work on a regular basis. Peter's behavior implies that he is most likely a(n):
Answer:
a supportive leader
Explanation:
A supportive leader is a leader who is able to identify changes and assistance that are needed to promote the well-being of his team members and timely resolve all unnecessary issues with the aim of delivering a high standard of performance.
A supportive leader is usually kind, friendly, and concerned about the personal needs and welfare of his followers. He also leaves his door open to be approached by many people for advice and help, and also inspires them perform tasks assigned to them with enthusiasm.
Therefore, Peter's behavior implies that he is most likely a supportive leader.
The Sisyphean Company's common stock is currently trading for $ 25.5 $25.5 per share. The stock is expected to pay a $ 2.5 $2.5 dividend at the end of the year and the Sisyphean Company's equity cost of capital is 15 15%. If the dividend payout rate is expected to remain constant, then the expected growth rate in the Sisyphean Company's earnings is closest to:
Answer:
5.2%
Explanation:
The computation of growth rate is shown below:-
Retained earning = (Expected dividend for the next year ÷ Current price of the stock) + Growth rate
15% = ($2.5 ÷ $25.5) + Growth rate
0.15 = $0.0980 + Growth rate
Growth rate = 0.15 - $0.0980
= $0.052
or
= 5.2%
So, for computing the growth rate we simply applied the above formula.
Quarter-inch stainless-steel bolts, 1.5 inches long are consumed in a factory at a fairly steady rate of 50 per week. The bolts cost the plant 3 cents each. It costs the plant $10 to initiate an order, and holding costs are based on an annual interest rate of 20 percent.
a. Determine the optimal number of bolts for the plant to purchase and the time between the placement of orders
b. What is the yearly holding and setup cost for this item?
Answer:
a.
EOQ = 2,944 units
b.
Setup cost = Numbers of Order x Ordering cost = $8.83
Holding Cost = $8.83
Explanation:
a.
Economic order quantity is the quantity at which business incur minimum cost. This is the level of order where the holding cost equals to the ordering cost of the business.
As per given data
Annual Demand = 50 per week x 52 weeks in a year = 2,600 bolts
Ordering cost = $10
Carrying cost = $0.03 x 20% = $0.006
EOQ = [tex]\sqrt{\frac{2 X S X D}{H} }[/tex]
EOQ = [tex]\sqrt{\frac{2 X 10 X 2,600}{0.006} }[/tex]
EOQ = 2,943.92 = 2,944 units
b.
Setup cost = Numbers of Order x Ordering cost = (2,600 / 2,944) x $10 = $8.83
Holding Cost = (2,944 / 2) x $0.006 = $8.83
Presented below is information related to Bramble Enterprises.
Jan. 31 Feb. 28 Mar. 31 Apr. 30
Inventory at cost $17,100 $17,214 $19,380 $15,960
Inventory at LCNRV 16,530 14,364 17,784 15,162
Purchases for the month 19,380 27,360 30,210
Sales for the month 33,060 39,900 45,600
From the information, prepare (as far as the data permit) monthly income statements in columnar form for February, March, and April. The inventory is to be shown in the statement at cost; the gain or loss due to market fluctuations is to be shown separately (using a valuation account).
Answer:
Bramble Enterprises' Income Statement is attached.
Explanation:
The inventory valuation losses determined by comparing the inventory at cost with inventory at the lower of cost and net realizable value.
In all cases, the net realizable values were lower than the costs. Therefore, the total costs were adjusted to show the loss in income.
Answer:
The valuation of inventory at Lower of costs or net realizable value always calls for adjustments to our inventory balances.
As a standard, the impact of this valuation must go against the costs of sales as an added cost if the valuation is lower than the inventory costs. but a benefit by way of lowering the cost of sales if the valuation is higher than the cost of inventory.
For the 3 months respectively we see valued costs lower than the inventory costs, therefore cost of sales will go up by these adjustments:
Feb $2,850
March $1,596
April $798
See attached document for the complete presentation
.
Cash equivalents meet all of the following criteria except: Multiple Choice Readily convertible to a known cash amount. Short-term investments purchased within 3 months of their maturity dates. Have a market value that is not sensitive to interest rate changes. Short-term U.S. treasury bills. More liquid than cash.
Answer:
More liquid than cash is the correct option
Explanation:
Cash equivalents are cash or other short term assets can be converted into cash in no distant time without losing significant portion of its value.
All the options enumerated met the criteria cited above except the last option,cash equivalents are more liquid than cash.
Cash equivalents cannot be more liquid than cash since cash equivalents at best cash and at worst short term easily convertible assets.
The correct option therefore is the last option,more liquid than cash
Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,060,000 Y-Go undergarments a year. The per unit and the total costs for an individual garment when the company operates at full capacity are as follows. Per Undergarment Total Direct materials $2.04 $2,162,400 Direct labor 0.53 561,800 Variable manufacturing overhead 0.99 1,049,400 Fixed manufacturing overhead 1.41 1,494,600 Variable selling expenses 0.31 328,600 Totals $5.28 $5,596,800 The U.S. Army has approached Klean Fiber and expressed an interest in purchasing 249,800 Y-Go undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for direct materials, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an additional $0.99 per undergarment to cover all other costs and provide a profit. Presently, Klean Fiber is operating at 70% capacity and does not have any other potential buyers for Y-Go. If Klean Fiber accepts the Army’s offer, it will not incur any variable selling expenses related to this order.
Answer and Explanation:
The preparation of incremental analysis for the Klean Fiber is shown below:-
Reject order Accept order Net Increase/
Decrease
Revenue
($4.55 × 249,800) $1,136,590 $1,136,590
Less:
Variable costs
Direct material $509,592 $509,592
($2.04 × 249,800)
Direct labor $132,394 $132,394
($0.53 × 249,800)
Variable overhead $247,302 $247,302
($0.99 × 249,800)
Total variable cost $889,288 $889,288
Net income $247,302 $247,302
Therefore by accepting the order the net income increases by $247,302 which means the net income is increasing by accepting the order.
Working note
Selling price = Direct material + Direct labor + Variable overhead + Additional amount
= $2.04 + $0.53 + $0.99 + $0.99
= $4.55
For its inspecting cost pool, Ellsworth, Inc. expected overhead cost of $520000 and 4000 inspections. The actual overhead cost for that cost pool was $600000 for 5000 inspections. The activity-based overhead rate used to assign the costs of the inspecting cost pool to products is
Final answer:
To calculate the activity-based overhead rate for Ellsworth, Inc., divide the expected overhead cost by the expected number of inspections, resulting in $130 per inspection. Spreading the overhead implies that as more units are produced, the average fixed cost per unit decreases, leading to the hyperbolic shape of the average fixed cost curve.
Explanation:
The student's question pertains to the calculation of the activity-based overhead rate within a managerial accounting context.
First, we need to understand that the activity-based overhead rate is calculated by dividing the expected overhead cost by the expected level of activity, which in this case is the number of inspections. So, for Ellsworth, Inc., the activity-based overhead rate is calculated as follows:
Activity-Based Overhead Rate = Expected Overhead Cost / Expected Number of Inspections
Activity-Based Overhead Rate = $520,000 / 4,000 inspections
The result is an activity-based overhead rate of $130 per inspection.
The concept of spreading the overhead refers to the distribution of fixed costs over the units produced. As more goods or services are produced, the average fixed cost per unit decreases because the total fixed costs are being spread over more units.
For example, suppose the fixed cost is $1,000. If only one unit is produced, the average fixed cost is the entire $1,000. However, if 100 units are produced, the average fixed cost drops to $10 per unit. Thus, the average fixed cost curve would be a hyperbola that approaches zero as the quantity of output increases. This demonstrates how fixed costs per unit decrease as production rises, a concept known as spreading the overhead.
The correct option is a. 120. The activity-based overhead rate used to assign the costs of the inspecting cost pool to products is $120 per inspection.
To determine the activity-based overhead rate for the inspecting cost pool, we need to calculate the cost per inspection. This is done by dividing the total overhead cost by the number of inspections.
First, we calculate the expected overhead rate:
Expected overhead rate = Expected overhead cost / Expected number of inspections
Expected overhead rate = $520,000 / 4,000 inspections
Expected overhead rate = $130 per inspection
Next, we calculate the actual overhead rate:
Actual overhead rate = Actual overhead cost / Actual number of inspections
Actual overhead rate = $600,000 / 5,000 inspections
Actual overhead rate = $120 per inspection
The complete question is- For its inspecting cost pool, Ellsworth, Inc. expected overhead cost of $520000 and 4000 inspections. The actual overhead cost for that cost pool was $600000 for 5000 inspections. The activity-based overhead rate used to assign the costs of the inspecting cost pool to products is:
a. $120 per inspection.
b. $80 per inspection.
c. $96 per inspection.
d. $100 per inspection.
Which of the following are true? Check all that apply. Most leadership theories and research studies have focused on female leaders. Top managers are increasingly responsible for maintaining high ethical standards for their own conduct, unfailingly exhibiting ethical behavior, and holding others in their organizations to the same standards. Some managers long accustomed to the traditional approach may have trouble changing to a coaching role. In Southern Asia, most employees want their leaders to be collaborative, sensitive to other people’s needs, and concerned with status and face saving.
Final answer:
Leadership research has traditionally focused on men, but recent studies highlight women's tendency towards a transformational leadership style. Ethical standards for top managers are heightened, demanding exemplary personal behavior. There's also an expectation in Southern Asia for leaders to be collaborative and sensitive to cultural norms.
Explanation:
The question examines the veracity of several statements regarding leadership theories, the ethical standards of top managers, the challenges faced by managers who may need to shift from a traditional approach to a coaching role, and cultural expectations for leadership in Southern Asia.
To address the statements:
Most leadership research historically focused on male leaders, not female leaders. However, more recent studies have given rise to a better understanding of female leadership styles. Women tend to exhibit an interpersonal or transformational leadership style, contrasting with men's tendency towards a more task-oriented or transactional style.Top managers are indeed being held to higher ethical standards in their conduct and are expected to exemplify and enforce ethical behavior in their organizations.Some managers accustomed to a traditional authoritative style might struggle with adopting a more engaged and supportive coaching role due to ingrained management practices that differ significantly from newer participative approaches.Cultural preferences for leadership styles indeed vary; for instance, employees in Southern Asia generally prefer leaders who are collaborative, attuned to people's needs, and sensitive to issues of status and face saving.It is therefore true that women do have different leadership styles compared to men, and that their contributions in leadership roles are increasingly being recognized and studied.
Suzuki Supply reports the following amounts at the end of 2021 (before adjustment). Credit Sales for 2021 $ 260,000 Accounts Receivable, December 31, 2021 55,000 Allowance for Uncollectible Accounts, December 31, 2021 1,100 (Credit) 3. Calculate the effect on net income (before taxes) and total assets in 2021 for each method. Suzuki estimates 12% of receivables and 3% of credit sales respectively will not be collected.
Suzuki Supply would need to adjust its allowance for uncollectible accounts by an additional $5500 using the percentage of receivables method and by $7800 using the percentage of sales method. The adjustments are important as they affect the company's net income and total assets in 2021.
Explanation:The question is asking for the effect on net income (before taxes) and total assets in 2021 using two methods which are 12% of receivables and 3% of credit sales for the estimated uncollectible accounts. First, let's calculate using the percentage of receivables method. The estimate for the Allowance for Uncollectible Accounts will be 12% of the existing Accounts Receivable balance, or $6600 (0.12 * $55,000). According to this, the Allowance for Uncollectible Accounts should be $6600 at the end of the year, but this account already has a credit balance of $1100, so the company needs to adjust it by an additional $5500 ($6600-$1100). On the other hand, under the percentage of sales method, the company directly decides the uncollectible amount based on credit sales, which is $7800 (0.03 * $260,000). Hence, the adjustment amount to the Allowance for Uncollectible Accounts is $7800 under the sales method. Therefore, these calculated adjustments will affect the net income and total assets in 2021.
Learn more about Uncollectible Accounts here:https://brainly.com/question/30324781
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Which of these statements about a business plan is true?
A. Businesses do not need to document a business plan.
B. Established businesses do not create a business plan.
C. A business plan is a business’s roadmap for the future.
D. A business plan guarantees a business’s success.
True statement for a business plan among following :
(C)Business Plan Provide Road map for future plan true statement for a business plan .
A business plan is a written description of your business's future.
Explanation:
Business plan a document that describes what you plan to do and how you plan to do it.
Every Business whether established or new all require business plan
A Business Plan provide detail instruction and provide road map for future business section to avoid bumps in road.
Business plan detail about finance required, forecast about future performance, and future marketing plan for business.However it doesn't guarantee success but provide a better road map for future.
Answer:
c is answer got 100
Explanation:
Catamount Company had current and accumulated E&P of $500,000 at December 31, 20X3. On December 31, the company made a distribution of land to its sole shareholder, Caroline West. The land's fair market value was $200,000 and its tax and E&P basis to Catamount was $250,000. The tax consequences of the distribution to Catamount in 20X3 would be:
A. No loss recognized and a reduction in E&P of $250,000
B. $50,000 loss recognized and a reduction in E&P of $250,000
C. $50,000 loss recognized and a reduction in E&P of $150,000
D. No loss recognized and a reduction in E&P of $200,000
Answer:
D. No loss recognized and a reduction in E&P of $200,000
Explanation:
Given that:
Current and accumulated E&P : $500,000A distribution of land to its sole shareholder: $200,000E&P basis to Catamount : $250,000From that, we can see that the current and accumulated E&P is greater than its distribution of land so no loss would be reported so there will be reduction in earning and profits of the company of $200,000.
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