Answer:
The correct answer is C: Bonus= $24000
Explanation:
The terms of a partnership agreement provide that one of the partners is to receive a salary allowance of $30,000, plus a bonus of 20 percent of income after deduction of the salary allowance.
The formula to calculate the bonus is:
Bonus=0,20*(Income-salary)
If income is $150000
Bonus= 0,20*(150000-30000)=$24000
The bonus for the partner is calculated by first subtracting the salary allowance from the total income and then applying the 20% bonus rate to the remaining amount. In this case, the bonus amounts to $24,000 (20% of $120,000), making the correct answer C.
Explanation:The question asks to calculate the bonus for a partner based on a partnership agreement provision. This is a mathematical problem within the scope of business studies, specifically related to profit distribution in partnerships.
To find the bonus amount, we first deduct the salary allowance from the income, then calculate 20% of the remaining amount as the bonus:
Income = $150,000
Salary allowance = $30,000
Income after salary deduction = $150,000 - $30,000 = $120,000
Bonus = 20% of Income after salary deduction
Bonus calculation:
Bonus = 0.20 × Income after salary deduction
Bonus = 0.20 × $120,000
Bonus = $24,000
Therefore, the correct answer is C. $24,000.
Norton Manufacturing expects to produce 2,800 units in January and 3,900 units in February. Norton budgets $45 per unit for direct materials. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is $37,950. Norton desires the ending balance in Raw Materials Inventory to be 60% of the next month's direct materials needed for production. Desired ending balance for February is $51,000. What is the cost of budgeted purchases of direct materials needed for January?
Answer:
Budgeted purchase= $193350
Explanation:
We need to calculate the cost of direct material during January. We need to know what are the purchase of direct material needed to produce the current month goods and for next month.
The unitary cost of material is $45, January's production 2800 units, February production 3900 units.
Direct material for Januarys production:
2800 units * $45= $126000
Direct material for February:
($45*3900)*0,60= $105300
Initial inventory= 37950
Budgeted purchase= 126000+105300-37950= $193350
A "Name That Tune" contest has a grand prize of $500,000. However, the contest stipulates that the winner will receive just $200,000 immediately, and $30,000 at the end of each of the next 10 years. Assuming that one can earn 8% on their money, how much has the contest winner actually won?
(A) 1,302
(B) $201,302
(C) $401,302
(D) $500,000
(E) None of the above
Answer:
The correct answer is (C) $401,302
Explanation:
To get how much the contest winner actually won, we have to calculate the amount receive at the end of each year discounted at this moment. Then, we added all the payments.
For example, the first payment in $200,000 at this moment, so we add $200,000.
At the end of the first year we receive $30,000, and the rate of discount is 8%
The formula of discount is P=A/ (1+r)ⁿ
A=Final amount
P= Principal
r= interest rate
n= time
Year 1 = A/ (1+r)ⁿ =$30,000/1,08¹= 27777,77
Year 2 =$30,000/1,08²= 25720,16
Year 3=23814,96
Year 4=22050,89
Year 5=20417,49
Year 6=18905,08
Year 7=17504,71
Year 8=16208,06
Year 9=15007,46
Year 10=13895,80
Total 401302,44
The following information is from the Income Statement of the Cheyenne Laundry Service:
Revenues
Service Revenues $5720
Expenses
Salaries and wages expense $ 2160
Advertising expense 440
Rent expense 260
Supplies expense 180
Insurance expense 90
Total expenses 3130
Net income $2590
The entry to close the Income Summary includes a:
Answer:
Credited to the retained earning accounts by $2,590
Explanation:
The net income is come by subtracting the total expenses from the revenue account.
In mathematically,
= Sales revenue - total expenses
The journal entry for closing the Income Summary is shown below:
Income summary A/c Dr $2,590
To Retained earning A/c $2,590
(Being income summary account is closed)
The net income amount would be added to the retained earning account by $2,590
Burger Champ, a restaurant chain based in Zaneland, has a subsidiary in Arkadas. In this case, which of the following will be true if Burger Champ adopts a localization strategy?
a. It will include wine in the menu because wine is famous in Arkadas.
b. It will sell roast chicken burger as it is a signature dish of the restaurant chain.
c. It will include dishes that are familiar to the people of Zaneland.
d. It will introduce dishes that are new and different to the people of Arkadas.
Answer:
a. It will include wine in the menu because wine is famous in Arkadas.
Explanation:
Under the localization strategy, the company targets to get maximum satisfaction from local customers.
It gives a significant importance to the local people and culture of the organization.
In the given instance, the subsidiary of the Burger Champ restaurant is open now in Arkadas, as for practicing localization strategy, it will try to having everything on menu which is demanded by the local people of Arkadas.
Therefore, as wine is common for people in Arkadas, it will be the priority to add such item in the menu first.
As an equity analyst you are concerned with what will happen to the required return to Universal Toddler' stock as market conditions change. Suppose rRF = 3%, rM = 13%, and bUT = 1.2. Under current conditions, what is rUT, the required rate of return on UT Stock? Round your answer to two decimal places.
Answer:
The required rate of return on UT Stock is 18.60%
Explanation:
In this question, we use the Capital asset pricing model (CAPM) formula
To compute the required rate of return on UT Stock, we need to apply the formula which is presented below:
Required rate of return = rRF + (bUT × rM)
where,
rRF is a risk-free rate of return
bUT is a beta
rM is a market risk
Now put these values to the above formula
So, the answer would be equal to
= 3% + (1.2 × 13%)
= 3% + 15.6%
= 18.60%
There is a rule of thumb which can be used as an approximation called the Rule of 72 to find interest or period of time, given the other quantity, and it is given as ni=72.If $1 is invested for 10 years, what compound rate is necessary for the money to double?
Answer:
i=7.2%
Explanation:
Giving the following information:
There is a rule of thumb which can be used as an approximation called the Rule of 72 to find interest or period, given the other quantity, and it is given as ni=72
We have $1 for 10 years. We will assume that it needs to duplicate in 10 years.
Years to double= 72/interest rate
10=72/i
i=72/10= 7.2
Control:
FV= 1*(1.072^10)= 2
Reinvestment" means:
A. new investment in new operations.
B. additional investment in existing operations.
C. new investment by new shareholders.
D. the reinvestment of earnings into new projects.
Answer: Option B
Explanation: The process under which the existing shareholders of a company uses their income from investment such as dividends interest etc to purchase the security again is called reinvestment. Sometimes the shareholders do no receive cash and straightly asks the company to compensate them in shares.
Hence, from the above we can conclude that the correct option is B.
Rolston Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $26,900, and the company expects to sell 1,540 per year. The company currently sells 2,040 units of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1,860 units per year. The old board retails for $22,800. Variable costs for both boards are 53 percent of sales, depreciation on the equipment to produce the new board will be $1,490,000 per year, and fixed costs are $1,390,000 per year. If the tax rate is 30 percent, what is the annual OCF for the project? (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.) OCF $ rev: 05_06_2019_QC_CS-167721
Answer:
operating cash flow: 11,752,938
Explanation:
new board sales: 1,540 x 26,900 = 41,426,000
decling in old board: (2,040 - 1,860) x 22,800 = (4,104,000)
net sales increase 37,322,000
proceeds after cost and taxes:
(sales x (1 -variable cost) - fixed cost) x (1-t)
(37,322,000 (1 - 0.53) - 1,390,000) (1-0.3) = 11.305.938
depreciation tax shield:
1,490,000 x 30% = 447,000
operating cash flow: 11,752,938
The following data were taken from the financial statements of The Amphlett Corporation, which is all equity financed. 2012 2013 Net sales $147,860 $163,585 Net income 26,765 30,340 Total assets 191,225 212,440 Shareholders' equity 101,975 121,165 Required Calculate the following ratios for 2012 and 2013: 2012 2013 a. Return on equity (round to one decimal place) Answer 0 % Answer 0 % b. Return on assets (round to one decimal place) Answer 0 % Answer 0 % c. Return on sales (round to one decimal place) Answer 0 % Answer 0 % d. Total assets to shareholders' equity (financial leverage) (round to two decimal places) Answer 0 Answer 0 e. Asset turnover (round to two decimal places) Answer 0 Answer 0
Answer:
2012 - 2013
a. Return on equity 26,2% - 25,0%
b. Return on assets 14,0% - 14,3%
c. Return on sales 18,1% - 18,5%
d. Total assets to shareholders' equity 1,88 - 1,75
e. Asset turnover 0,77 - 0,77
Explanation:
2012 2013
TOTAL ASSETS $191.225 $212.440
TOTAL EQUITY $101.975 $121.165
Income Statement 2012 2013
Sales $147.860 163.585
Net Income after Taxes $26.765 30.340
Beverage International reports net credit sales for the year of $468,000. The company's accounts receivable balance at the beginning of the year equaled $24,000 and the balance at the end of the year equaled $34,000. What is Beverage International's receivables turnover ratio?
Answer:
The Beverage International's receivables turnover ratio is = 16,14
Explanation:
The accounting receivable turnover formula is :
Net credit sales / Average Accounts Receivable
So Net credit sales = $468,000
And Average Accounts Receivable = ($24,000 + $34,000)/2 = $29.000,00
The receivables turnover ratio is = $468,000 / $29.000,00 = 16,14
Denson, Inc. has 10,000 shares of 7%, $100 par value, non-cumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2014. There were no dividends declared in 2013. The board of directors declares and pays a $120,000 dividend in 2014. What is the amount of dividends received by the common stockholders in 2014?a. $0.b. $70,000.c. $120,000.d. $50,000.
Answer:
d. $50,000.
Explanation:
the preferred stock are non-cumulative so their unpaid dividends of previous year are not accumulated and carry over the following years.
10,000 shares x $100 x 7% = $70,000 dividends to preferred shares
120,000declared dividends
- 70,000 preferred dividends
50,000 available for common stock
Consider the following abbreviated financial statements for Parrothead Enterprises: PARROTHEAD ENTERPRISES PARROTHEAD ENTERPRISES 2014 and 2015 Partial Balance Sheets 2015 Income Statement Assets Liabilities & Owners’ Equity Sales 12,991 2015 2014 2015 2014 Costs 5,843 Current assets 931 946 Current liabilities 375 493 Depreciation 1,034 Net fixed assets 3,712 4,297 Long-term debt 2,099 2,126 Interest 146 If the tax rate is 32 percent, what is the cash flow from assets for the year?
Answer:
The cash flow from assets for the year is $3,522
Explanation:
Computation of the cash flow from assets for 2019 is shown below:
= Operating cash flow - net capital spending - changes in working capital
where,
Operating cash flow = EBIT + depreciation - income tax expense
The EBIT = Sales - cost - depreciation expense
= $12,991 - $5,843 - $1,034
= $6,114
And, the income tax expense = (EBIT - Interest) × tax rate
= ($6,114 - $146) × 32%
= $1,909.76
So, the operating cash flow = $6,114 + $1,034 - $1,909.76
= $5,238.24
Net capital capital = ending fixed assets - beginning fixed assets + depreciation
= $4,297 - $3,712 + $1,034
= $1,619
Changes in working capital = (ending balance of current assets - ending balance of current liabilities) - (beginning balance of current assets - beginning balance of current liabilities)
= ($946 - $493) - ($931 - $375)
= $453 - $356
= $97
Now put these values to the above formula
So, the value would equal to
= $5,238.24 - $1,619 - $97
= $3,522
Jane's, Peter's, Joshua's, and Austin's monthly incomes are $600, $550, $650, and $700, respectively. Since they live together, each of them is obliged to pay $100 for household expenses every month. In this scenario, who among the following is likely to be the most price sensitive among the four?
a. Jane
b. Austin
c. Joshua
d. Peter
Answer:
d. Peter
Explanation:
Price sensitivity: is the change in demand based on a price change. Because, after paying the rent Peter has the lowest income their price sensitivity will be higher.
His demand will change when the cost of a product or service change as the price occupies an important role in his purchasing criteria.
It will be willing to sacrifice quality in order to save price.
You have been offered an investment that will pay you $10,000 in 10 years. You think a 7% annual rate compounded annually is an appropriate rate of return or interest rate for this investment. What is the most you would be willing to pay for this investment today based on this information? Round your answer to the nearest dollar.
Answer:
Explanation:
the minimun value is expressed by the present value of the investment using a 7% rate, lets recall the formula for finding present values:
[tex]PV=FV*(1+i)^{-n}[/tex]
where, PV is present value, FV is the future value, and n is time elapsed. So applying to this problem we have:
[tex]PV=10,000*(1+0.07)^{-10}[/tex]
[tex]PV=5,083.49[/tex]
So the minimun value which is profitable to pay is 5,083.49 today, in that sense you will get a return on 7% compounded after 10 years
Lucy Sportswear manufactures a specialty line of T-shirts using a job-order cost system. During March, the following costs were incurred in completing Job ICU2: direct materials, $13,700; direct labor, $4,800; administrative, $1,400; and selling, $5,600. Factory overhead was applied at the rate of $25 per machine hour, and Job ICU2 required 800 machine hours. If Job ICU2 resulted in 7,000 good shirts, the cost of goods sold per unit would be
Answer:
Unit cost= $5,5unit
Explanation:
Total manufacturing cost is the aggregate amount of cost incurred by a business to produce goods in a reporting period.
Generally accepted accounting principles require that the cost of goods sold shall consist of:
the cost of direct materials
the cost of direct labor
the cost of manufacturing overhead
Expenses that are outside of the manufacturing facilities, such as selling, general and administrative expenses, are not product costs. They are reported as expenses on the income statement in the accounting period in which they occur.
In this exercise:
Cost of goods manufactured:
Direct materials= $13700
Direct Labor=$4800
Factory overhead= 800hours*$25=$20000
Total= $38500
Unit cost= 38500/7000=$5,5unit
If Shawn can produce donuts at a lower opportunity cost than Sue, then ____
(A) Shawn has a comparative advantage in the production of donuts.
(B) Sue has a comparative advantage in the production of donuts.
(C) Shawn should not produce donuts.
(D) Shawn is capable of producing more donuts than Sue in a given amount of time
Answer:
(A) Shawn has a comparative advantage in the production of donuts.
Explanation:
Shawn renounce to less goods than Sue when producing donuts.
This meas, Shawn has a comparative advantage in the production of donuts as their cost from the economic point of view are lower.
This do not imply that Sue cannot outproduce Shawn, it means it cost her more than Shawn
For example, if Sue produce 10 Donuts, but to produce donuts resing to produce 20 of other goods, each donut has an opportunity cost of 2
While Shawn can produce 8 donuts and resing to produce 8 of other goods:
each donut has an opportunity cost of 1
Therefore, is better for the overall economy to Shawn produce donuts and trade with Sue for the other good.
Which of the following requires marketing managers to decide which markets to target and determine how to position the product in the market? A. Performing a situational analysis B. Controlling the marketing functions C. Implementing a marketing plan D. Setting marketing objectives E. Developing marketing strategies
Answer: Developing marketing strategies
Explanation: In simple words, the strategy used by organisations to attract potential customers and persuading them to purchase the product is called the marketing strategy.
This strategy consists of a number of tools like advertising, discounts offering, availability in market etc.
Thus determining the target market and the position of the product comes under the purview of marketing strategy.
The treasurer of Riley Coal Co. is asked to compute the cost of fixed income securities for her corporation. Even before making the calculations, she assumes the aftertax cost of debt is at least 5 percent less than that for preferred stock. Debt can be issued at a yield of 8.0 percent, and the corporate tax rate is 25 percent. Preferred stock will be priced at $52 and pay a dividend of $5.20. The flotation cost on the preferred stock is $3. a. Compute the aftertax cost of debt. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
b. Compute the aftertax cost of preferred stock. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
c. Based on the facts given above, is the treasurer correct?
Answer: (a) 6%
(b) 10.61%
(c) Yes
Explanation:
a) After tax cost of debt = Yield (1- tax)
= 8 ( 1 - 0.25)
= 8 × 0.75
= 6%
b) [tex]cost\ of\ preferred\ stock =\frac{dividend}{price-flotation\ cost}[/tex]
[tex]cost\ of\ preferred\ stock =\frac{5.20}{52-3}[/tex]
[tex]cost\ of\ preferred\ stock =\frac{5.20}{49}[/tex]
= 0.1061 or 10.61%
Note: Cost of preferred stock is not tax deductible
c),Yes the treasurer is correct ,The cost of debt is 5% less than cost of preferred stock [10.61 - 6 = 4.61%]
Ms. BK is a self-employed architect who earns $205,000 annual taxable income. For the past several years, her tax rate on this income has been 35 percent. Because of recent tax law changes, Ms. BK’s tax rate for next year will decrease to 25 percent. Based on a static forecast, how much less revenue will the government collect from Ms. BK next year? How much less revenue will the government collect from Ms. BK next year if she responds to the rate decrease by working more hours and earning $280,000 taxable income? How much less revenue will the government collect from Ms. BK next year if she responds to the rate decrease by working fewer hours and earning only $180,000 taxable income?
Answer:
a.- 20,500 less tax collected
b.- 1,750 less tax collected
c.- 26,750 less tax collected
Explanation:
under a static forecast:
205,000 x (0.35-0.25) = 205,000 x 0.1 = 20,500
The government will collect 20,500 less dollars from Ms BK's
under a flexible forecast:
205,000 x 35% - 280,000 x 25% = 71,750 - 70,000 = 1,750
It will loss tax revenue for $1,750
205,000 x 35% - 180,000 x 25% = 71,750 - 45,000 = 26,750
You are buying an investment product that costs $50,000 today. The annual interest rate is 5% and the investment period is 3 years. The investment will repay you $10,000 at the end of year 1 and $15,000 at the end of year 2. Based on economic equivalent value of the investment, how much should you receive at the end of year 3? Round the answer to the nearest integer. (e.g. round 10.25 to 10, round 10.78 to 11)
Answer:
cash flow third year: 23,212
Explanation:
the economic equivalent value means the third payment will make the project equal to 50,000 today at 5% discount rate.
It mill make both option equivalent.
So the present value of the three payment will be 50,000.
[tex]50,000 = PV_{year1}+PV_{year2}+PV_{year3}[/tex]
We will calculate each PV:
First year:
[tex]\frac{Nominal}{(1 + rate)^{time} } = PV[/tex]
Nominal: 10,000.00
time 1 year
rate 5% = 0.05
[tex]\frac{10000}{(1 + 0.05)^{1} } = PV[/tex]
PV 9,523.81
Second Year:
Nominal: 15,000.00
time 2 years
rate 0.05
[tex]\frac{15000}{(1 + 0.05)^{2} } = PV[/tex]
PV 13,605.44
Now, we go back to our previous formula:
[tex]50,000 = PV_{year1}+PV_{year2}+PV_{year3}[/tex]
50,000 = 9,523.81 + 13,605.44 + PV3
And solve for PV of third year:
PV3 = 26,870.75
Now we go into the formula for PV and solve for the nominal
Third Year:
Nominal: N
time 3 years
rate 0.05
PV 26,870.75
[tex]\frac{N}{(1 + 0.05)^{3} } = 26,870.75[/tex]
N = 23211.96415
The third year cash inflow should be for this amount to made the project economic equivalent
Suppose GDP in this country is $1,680 million. Enter the amount for government purchases.
National Income Account Value (Millions of dollars)
Government Purchases ( G )
Taxes minus Transfer Payments ( T ) 360
Consumption ( C ) 1,000
Investment ( I ) 280
Complete the following table by using nationa income accounting identtes to nationa saving, in you calculacons use aita mom the preceding table. cakulate National saving (S) million
Answer:
G= 400
S= 280
Explanation:
Giving the following information:
GDP in this country is $1,680 million.
National Income Account Value (Millions of dollars)
Government Purchases ( G ) =?
Taxes minus Transfer Payments ( T )= 360
Consumption ( C )= 1,000
Investment ( I )= 280
The formula to calculate GDP is:
GDP=C+I+G+/-NX
GDP= C+I+G
1680= 1000 + 280 + G
G= 1680 - 1000 - 280= 400
Savings= (Y-T-C) + (T-G)
S= (1680 - 360 - 1000) + (360 - 400)
S= 280
The Government Purchases (G) can be calculated as $400 million, subtracting Consumption (C) and Investment (I) from GDP. Also, National Saving (S) is calculated as $280 million, using the formula S = GDP - C - G.
Explanation:The subject of this question is national income accounts, specifically about government purchases (G). According to the national income accounting identities, GDP (Gross Domestic Product) is the sum of Consumption (C), Investment (I), Government Purchases (G), and Net Exports (which are not mentioned in this question). In this case, the GDP is $1,680 million, Consumption is $1,000 million and Investment is $280 million. To calculate Government Purchases (G), we subtract Consumption (C) and Investment (I) from the total GDP.
So, G = GDP - C - I
Plug in the given amounts
G = $1,680 million - $1,000 million - $280 million
Hence, Government Purchases (G) = $400 million.
We also calculate National Saving (S) using the following identity: S = GDP - C - G. From our previous calculation, we know that G = $400 million, so:
S = $1,680 million - $1,000 million - $400 million
Therefore, National Saving (S) = $280 million.
Learn more about National Income Accounting here:https://brainly.com/question/33716698
You are considering two perpetuities which are identical in every way, except that perpetuity A will begin making annual payments of $P to you two years from today while the first $P payment for perpetuity B will occur one year from today. It must be true that the present value of perpetuity: A) A is greater than that of B by $P. B) B is greater than that of A by $P. C) B is equal to that of perpetuity A. D) A exceeds that of B by the PV of $P for one year. E) B exceeds that of A by the PV of $P for one year.
Answer:
E) B exceeds that of A by the PV of $P for one year.
Explanation:
A begins in 2 years in the future, while B starts one year into the future:
B:
[tex]\frac{perpetuity}{(1 + rate)^{1}} [/tex]
A:
[tex]\frac{perpetuity}{(1 + rate)^{2}} = [/tex]
The difference is this one year difference which, makes the return on A lower than B today. After the two years, past and both perpetuities begin, their value will be the same.
Required information [The following information applies to the questions displayed below.] Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit Direct materials $ 6.30 Direct labor $ 3.80 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 3.30 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 13. If the selling price is $22.30 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Final answer:
The contribution margin per unit is calculated by subtracting all variable costs from the selling price per unit, resulting in $9.70.
Explanation:
To calculate the contribution margin per unit, we need to subtract the variable costs from the selling price per unit. The selling price provided is $22.30 per unit. Looking at the average costs per unit, we have direct materials at $6.30, direct labor at $3.80, variable manufacturing overhead at $1.50, and sales commissions at $1.00. The total variable cost per unit is the sum of these, which is $6.30 + $3.80 + $1.50 + $1.00 = $12.60. Therefore, the contribution margin per unit is $22.30 - $12.60 = $9.70.
In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. Each of the following questions is independent of the others.
Refer to the information provided above. Allen and Daniel agree that some of the inventory is obsolete. The inventory account is decreased before David is admitted. David invests $40,000 for a one-fifth interest. What is the amount of inventory written down?
A. $4,000
B. $20,000
C. $15,000
D. $10,000
Answer:
B. $20,000
Explanation:
40,000 = a fifth
so ther parthnership capital should equal to
40,000 / (1/5) = 200,000
But the current sum of the capital without adjustment is:
Capital 140,000 + 40,000 + 40,000 = 220,00
to make it balance, the inventory must has been written down by 20,000
this difference was taken by the prevous partner Allen and Daniel.
Inventory records for Dunbar Incorporated revealed the following:
Date Transaction Number
of Units Unit
Cost
Apr. 1 Beginning inventory 530 $2.37
Apr. 20 Purchase 310 2.50
Dunbar sold 640 units of inventory during the month. Cost of goods sold assuming LIFO would be
Answer:
Cost of goods sold assuming LIFO would be $474
Explanation:
Date Q U.cost Cost Sold Inventory Cost
april 1 530 2,37 1256,1 330 200 474
apri 20 310 2,5 775 310 0 0
640
Warner Company has the following data for the past year:
Actual overhead $470,000
Applied overhead:
Work-in-process inventory $100,000
Finished goods inventory 200,000
Cost of goods sold 200,000
Total $500,000
Warner uses the overhead control account to accumulate both actual and applied overhead.
Calculate the overhead variance for the year.
Final answer:
The overhead variance for Warner Company is a $30,000 unfavourable variance, which means the company applied $30,000 more in overhead than the actual overhead costs.
Explanation:
The overhead variance is calculated by subtracting the applied overhead from the actual overhead. In the case of Warner Company, the actual overhead for the past year was $470,000, and the total applied overhead was $500,000 (sum of applied overhead in work-in-process inventory, finished goods inventory, and cost of goods sold).
To find the overhead variance, we use the following formula:
Overhead Variance = Actual Overhead - Applied Overhead
Overhead Variance = $470,000 - $500,000
Overhead Variance = -$30,000
This result indicates that there is a $30,000 unfavourable variance, meaning that Warner Company has over-applied its overhead costs by $30,000.
Eric, the owner of a struggling business that supplies fresh product to restaurants, is faced with a decision that will mean either the collapse of his business or perhaps the success of his business: Should he fill customer orders for produce with some older produce mixed in with the fresh produce? This will save him enough money to keep going. Eric is faced with an ethical dilemma.
Answer:
Yes this is no doubt an ethical dilemma for him. But he should go for what is ethically correct.
Explanation:
In my opinion, he should not go for this decision. Unethical practices result in temporary success but they don't guarantee permanent achievements. He should focus on completing the orders on time with the fresh products(as it is his business goal to provide fresh products), he would make his good will in the market by providing as per his commitment and then gradually will be able to mark his business. This ethical decision in such tough time will make him stronger and will grow his business in future when people will like his products and commitment of providing fresh products.
Messana Corporation reported the following data for the month of August: Inventories: Beginning Ending Raw materials $36,000 $24,000 Work in process $23,000 $17,000 Finished goods $37,000 $55,000 Additional information: Raw materials purchases $69,000 Direct labor cost $94,000 Manufacturing overhead cost incurred $54,000 Indirect materials included in manufacturing overhead cost incurred $8,000 Manufacturing overhead cost applied to Work in Process $56,000 The cost of goods manufactured for August is: $227,000 $229,000 $219,000 $217,000
The cost of goods manufactured for August is $217,000.
The cost of goods manufactured for August is $217,000.
Calculate the total manufacturing costs: Direct materials used = Beginning raw materials + Raw materials purchases - Ending raw materials = $36,000 + $69,000 - $24,000 = $81,000.Calculate total manufacturing costs: Total manufacturing costs = Direct materials used + Direct labor + Manufacturing overhead applied = $81,000 + $94,000 + $56,000 = $231,000.Cost of goods manufactured: Cost of goods manufactured = Total manufacturing costs + Beginning work in process - Ending work in process = $231,000 + $23,000 - $17,000 = $217,000.The correct cost of goods manufactured for August is $237,000, calculated by adding raw materials used, direct labor, manufacturing overhead applied, and adjusting for the change in work in process inventory.
To determine the cost of goods manufactured for Messana Corporation for the month of August, we need to calculate the total manufacturing costs:
Starting with Raw materials, we calculate the total used: Beginning inventory plus purchases minus ending inventory gives us $36,000 + $69,000 - $24,000 = $81,000.
To the raw materials used, we add the direct labor cost of $94,000 and manufacturing overhead cost applied to work in process of $56,000. The indirect materials have already been included within the manufacturing overhead cost incurred, so we don't add them again.
We add these together to get total manufacturing costs before adjusting for work in process inventory which gives us $81,000 (Raw materials used) + $94,000 (Direct labor) + $56,000 (Manufacturing overhead applied) = $231,000.
To find the Cost of Goods Manufactured, we then adjust for the change in Work in Process inventory: $231,000 + $23,000 (Beginning Work in Process inventory) - $17,000 (Ending Work in Process inventory) = $237,000.
Therefore, none of the provided options are correct. The correct Cost of Goods Manufactured for August would be $237,000.
The Jasmine Tea Company purchased merchandise from a supplier for $46,700. Payment was a noninterest-bearing note requiring Jasmine to make five annual payments of $12,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement?
Answer:
Implicit interest= 28.48%
Explanation:
Giving the following information:
The Jasmine Tea Company purchase merchandise from a supplier for $46,700.
Payment is five annual payments of $12,000 beginning one year from the date of purchase.
The total payment is= 12000*5= $60000
Implicit interest= (60000/46700)-1= 28.48%
The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next five years: Annual Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 $250,000 $37,500 $480,000 $450,000 $550,000 The CFO of the company believes that an appropriate annual interest rate on this investment is 9%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar? $1,307,822 $767,500 $1,625,000 $2,142,500
Answer:
PV of the cash flow: $1,307,822
Explanation:
We will calculate the present value of a lump sum for each cash flow:
[tex]\frac{cashflow}{(1 + rate)^{time} } = PV[/tex]
cashflow 250,000.00
time 1.00
rate 0.09
[tex]\frac{250000}{(1 + 0.09)^{1} } = PV[/tex]
PV 229,357.80
cashflow 37,500.00
time 2.00
[tex]\frac{37500}{(1 + 0.09)^{2} } = PV[/tex]
PV 31,563.00
cashflow 480,000.00
time 3.00
rate 0.09
[tex]\frac{480000}{(1 + 0.09)^{3} } = PV[/tex]
PV 370,648.07
cashflow 450,000.00
time 4.00
rate 0.09
[tex]\frac{450000}{(1 + 0.09)^{4} } = PV[/tex]
PV 318,791.34
cashflow 550,000.00
time 5.00
rate 0.09
[tex]\frac{550000}{(1 + 0.09)^{5} } = PV[/tex]
PV 357,462.26
Then, we will add each present value:
year 1: 229,357.7982
year 2: 31,562.99975
year 3: 370,648.0704
year 4: 318,791.345
year 5: 357,462.2625
total PV 1,307,822.476
Answer:
Present value of cash flows should be $1,307,822
Explanation:
We cannot use annuity formula for this problem because the amount of cash flows occurring in each year is different and we would need to find the present value of each cash flow separately
The present value of the cash flow can be computed using the following formula
PV = FV/(1+i)^n
The rate at which the cash flows are to be discounted is 9 percent
For the first year the cash flow is $250,000 and we can compute the pressent value of the cash flow as under
250,000/(1+0.09) = 250,000/1.09 = $229,357.80
Foe the second year the cash flow is $37,500
37,500/(1+0.09)^2= 37,500/1.1881 = $31,563
The present value of the cash flows for the subsequent years are provided as under
480,000/(1+0.09)^3 = 480,000/1.295 = $370,648.07
450,000/(1+0.09)^4 = 450,000/1.4116 = $318,791.34
550,000/(1+0.09)^5 = 550,000/1.5386 = $357,462.26
Adding up all the present values computed above, gives us the present value of cash flows
229,357.8 + 31,563 + 370,648.07 + 318,791.34 + 357,462.26 = $1,307,822 approx