Answer:
[tex]\frac{Sales}{Average Inventory} = $Inventory Turnover[/tex]
where:
[tex]$$Average Inventory=(Beginning Inventory + Ending Inventory)/2[/tex]
The inventory turnover represent how many times the company sales their inventory during the year or period of analysis.
A high inventory turnover during Christmas shopping seasons mean sales are higher. The inventory in the store is sold more times during this time.
Inventory turnover is a financial ratio that measures the number of times a company sells and replaces its inventory during a specific period. A high inventory turnover during the Christmas shopping season indicates efficient sales and can bring several benefits to the company.
Explanation:Inventory turnover is a financial ratio that measures the number of times a company sells and replaces its inventory during a specific period. It is calculated by dividing the cost of goods sold (COGS) by the average inventory. A high inventory turnover during the Christmas shopping season means that a company is selling its inventory quickly, which indicates efficient sales. This can be beneficial as it reduces holding costs, minimizes the risk of obsolete inventory, and generates cash flow to reinvest in new inventory or other business activities.
Learn more about Inventory turnover here:https://brainly.com/question/30331199
#SPJ6
Jacqui decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own business, she withdrew $20,000 from her savings, which earned 5 percent interest. She also turned down three separate job offers with annual salaries of $30,000, $40,000, and $45,000. What is Jacqui's economic profit from running her own business?a. $-56,000 b. $-6,000 c. $4,000 d. $19,000
Answer: $4,000
Explanation: Economic profit can be defined as the difference between the total revenues generated from operations and cost incurred plus any opportunity cost taken.
Opportunity cost is the cost of next best alternative foregone, that is loss of profits that occurred due to choosing one alternative over other. In the given case loss of interest and loss of highest salary are opportunity cost for Jacqui .
Hence,
economic profit = revenues - (interest + salary)
= $50,000 - ($1000 + $45,000)
= $4,000
Jacqui's economic profit is calculated by subtracting all her explicit and implicit costs from her accounting profits. The economic profit is $4,000.
Explanation:To calculate Jacqui's economic profit, we need to consider both her explicit and implicit costs. Her explicit costs are direct out-of-pocket costs for running her business, whereas her implicit costs involve the opportunity costs associated with the business.
Firstly, Jacqui's accounting profit is $50,000. Secondly, her implicit costs consist of the interest she could have earned on her savings ($20,000 * 0.05 = $1,000) and the highest salary she forgoes, which is $45,000 after turning down three separate job offers. So, her total implicit cost is $1,000 + $45,000 = $46,000. Now, to calculate her economic profit, we subtract her implicit cost from her accounting profit: $50,000 - $46,000 = $4,000.
Therefore, the answer is (C) $4,000.
Learn more about Economic Profit here:https://brainly.com/question/34508573
#SPJ3
One-way tabulations serve several purposes in the research process. They can: a) Profile sample respondents b) Distinguish between heavy and light users c) Establish the percentage of respondents that respond differently to different situations d) Calculate summary statistics e) All of the above
Answer:
One-way tabulations serve several purposes in the research process - e) All of the above.
One-way tabulations serve several purposes in the research process including profiling sample respondents, distinguishing between heavy and light users establishing the percentage of respondents that respond differently to different situations and calculating summary statistics. Hence the correct answer is option e) all of the above.
What is research?Research is the systematic process of collecting and analyzing information to answer a specific question or solve a problem. It involves a structured approach to gathering data, interpreting it, and drawing conclusions based on the findings. Research is used across many fields to expand knowledge, inform decision-making, and drive innovation.
One-way tabulations are an important tool in research as they allow researchers to organize and summarize large amounts of data in a clear and concise manner. By presenting data in this way, researchers can identify patterns and trends in their data, which can inform their conclusions and recommendations.
Hence, one-way tabulations serve several purposes in the research process including profiling sample respondents, distinguishing between heavy and light users establishing the percentage of respondents that respond differently to different situations and calculating summary statistics. Therefore, the correct answer is option e) all of the above.
Learn more about research, here:
https://brainly.com/question/29910959
#SPJ2
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis Salaries $ 34,000 Number of employees Depreciation 22,000 Cost of goods sold Advertising 42,000 Net sales Item Drilling Grinding Total Number of employees 600 1,400 2,000 Net sales $ 328,000 $ 492,000 $ 820,000 Cost of goods sold $ 83,600 $ 136,400 $ 220,000 The amount of the total office expenses that should be allocated to Drilling for the current period is:
Answer:
The total amount of expenses that should be allocated towards drilling is $35,360.
Explanation:
We have been given three categories of office expenses -
SALARY = $34,000
DEPRECIATION = $22,000
ADVERTISING = $42,000
and we have to calculate the expenses allocated to drilling departments, so we will allocate from each of the three given expenses the proportion of expenses which belong to drilling department.
SALARY = $34,000 X Number of employees in drilling / total number of
employees
= $34,000 x 600 / 2000
= $10,200
DEPRECIATION = $22,000 X Cost of goods sold for drilling / total cost of
goods sold
= $22,000 x $83,600 / $220,000
= $8,360
ADVERTISING = $42,000 X Net sales from drilling / total net sales
= $42,000 x 328,000 / $820,000
= $ 16,800
TOTAL DRILLING EXPENSES = $10,200 + $8360 + $16,800
= $35,360
The total office expenses allocated to the Drilling department for the current period is $35,360, calculated by distributing the expenses of salaries, depreciation, and advertising across the departments according to the given allocation bases.
To determine the amount of the total office expenses that should be allocated to the Drilling department, we need to distribute each category of office expenses based on the specified allocation bases provided: salaries on the number of employees, depreciation on the cost of goods sold, and advertising on net sales. The calculation for each category of expense is as follows:
Salaries:
$34,000 * (Drilling employees / Total employees) = $34,000 * (600 / 2000) = $10,200
Depreciation: $22,000 * (Drilling COGS / Total COGS) = $22,000 * ($83,600 / $220,000) = $8,360
Advertising: $42,000 * (Drilling Net Sales / Total Net Sales) = $42,000 * ($328,000 / $820,000) = $16,800
Addition of all three allocated expenses provides the total expense allocation for the Drilling department:
Total allocated to Drilling = Salary allocation + Depreciation allocation + Advertising allocation = $10,200 + $8,360 + $16,800 = $35,360.
At the end of 2016, Sunland Company has accounts receivable of $653,700 and an allowance for doubtful accounts of $24,200. On January 24, 2017, it is learned that the company’s receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,245. (a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount (b) What is the cash realizable value of the accounts receivable before the write-off and after the write-off? Before Write-Off After Write-Off Cash realizable value $Enter a dollar amount $Enter a dollar amount
Answer:
Bad debt expense $4,245
Allowance for doubtful Accounts $4,245
Cash realizable before write off is ( $653,700 - $24,200) $629,500
Cash realizable after write off is ( $653,700 - $24,200) $629,500
**our realizable amount does not changed after specific write off because we automatically subtract the entire allowance from the accounts receivable. When we write off the actual account we remove it from our allowance.
Explanation:
The journal entry to record the write-off of the $4245 from Madonna Inc. would be a debit to the Allowance for Doubtful Accounts and a credit to Accounts Receivable, both for $4245. The cash realizable value of the accounts receivable stays the same before and after the write-off, which is $629,500.
Explanation:For part (a), the journal entry to record the write-off of the $4,245 would be:Debit: Allowance for Doubtful Accounts $4,245 Credit: Accounts Receivable $4,245This entry reduces the account receivable due to it being uncollectible, and it also reduces the allowance for doubtful accounts. For part (b), the cash realizable value of the accounts receivable is essentially the net amount that is expected to be received. It is the total Accounts Receivable minus the Allowance for Doubtful accounts. Before the write-off, the cash realizable value would be $653,700 (Accounts Receivable) - $24,200 (Allowance for Doubtful accounts) = $629,500. After the write-off, both Accounts Receivable and the Allowance for Doubtful Accounts decrease by $4,245, thus the cash realizable value would still be $629,500.
Learn more about Accounting Journal Entry and Cash Realizable Value here:https://brainly.com/question/16875877
#SPJ3
The following balances come from the financial statements of Way Industries: Sales revenue $850,000; Accounts receivable $280,000; Beginning inventory $50,000; Ending inventory $30,000; Net purchases $460,000; Sales returns $50,000; Sales discount $20,000. Given this information, what is the company's inventory turnover ratio? a) 28.33. b) 16.0. c)21.25. d) 12.0.
Answer: 12
Explanation: The ratio of number of times an inventory is used or sold in a specific period , generally a year, is called inventory turnover ratio. It can be computed by using the following formula :-
= [tex]\frac{cost\of\goods\sold}{average\inventory}[/tex]
where,
cost of goods sold = beginning inventory + net purchase - ending inventory
= $50,000 + $460,000 - $30,000
= $ 480,000
average inventory = [tex]\frac{beginning\invetory+closing\inventory}{2}[/tex]
=[tex]\frac{50000+30000}{2}[/tex]
= $40,000
so,
inventory turnover ratio = [tex]\frac{480000}{40000}[/tex]
= 12
The inventory turnover ratio is calculated as 'Cost of Goods Sold' divided by 'Average Inventory'. For Way Industries, the Cost of Goods Sold is $480,000, the Average Inventory is $40,000, and the inventory turnover ratio is 12.0.
Explanation:The question is asking for the inventory turnover ratio for Way Industries. This is a relevant metric in the field of financial accounting that measures how effectively a company is managing its inventory. The inventory turnover ratio is calculated as 'Cost of Goods Sold' divided by 'Average Inventory' for the period.
To calculate the 'Cost of Goods Sold', we start with the beginning inventory, add the net purchases and then subtract the ending inventory. For Way Industries, this equals $50,000 (beginning inventory) + $460,000 (net purchases) - $30,000 (ending inventory) = $480,000.
The Average Inventory is calculated as the sum of the beginning inventory and the ending inventory divided by 2, which in this case equals ($50,000 + $30,000) / 2 = $40,000.
Therefore, the inventory turnover ratio is $480,000 / $40,000 = 12.0. So, option d) is the correct answer.
Learn more about Inventory Turnover Ratio here:https://brainly.com/question/30030274
#SPJ3
A company had the following unit costs when 9,000 units were produced: Direct labor at $7.25 per unit; Direct material at $8.00 per unit; Variable overhead at $5.50 per unit; Fixed overhead at ($67,500/9,000 units) $7.50 per unit; and a Total production cost of $28.25 per unit. Under Absorption Costing, what is the total production cost per unit if 25,000 units had been produced?A. $28.25B. $23.45C. $26.25D. $20.75E. $15.25
Answer: Total production cost per unit = $8 +$7.25 + $5.50 = $20.75
Explanation:
Given :
Direct labor at $7.25 per unit;
Direct material at $8.00 per unit;
Variable overhead at $5.50 per unit;
Fixed overhead at ($67,500/9,000 units) $7.50 per unit;
Total production cost of $28.25 per unit.
Now,
Under Absorption Costing, the total production cost per unit is calculated as
Total production cost per unit = Direct Materials +Direct Labor + Variable Overhead
Total production cost per unit = $8 +$7.25 + $5.50 = $20.75
The following information is available for the year ended December 31: Beginning raw materials inventory $21,500 Raw materials purchases 74,000 Ending raw materials inventory 23,000 Office supplies expense 2,400 The amount of raw materials used in production for the year is: $74,900. $72,500. $95,500. $76,400. $70,100.
Answer:
used in production = 72,500
Explanation:
we use the Inventory identity to solve for used into production
[tex]$$Beginning Inventory + Purchase = Ending Inventory + Used[/tex]
21,500 + 74,000 = 23,000 + used
21,500 + 74,000 - 23,000 = used
used in production = 72,500
The supplies are irrelevant for this calculation
Answer:
b. $72,500
Explanation:
Beginning raw materials inventory $21,500
Raw materials purchases $74,000
The amount of raw materials used in production $72,500 (21500+74000-23000)
Ending raw materials inventory $23,000
Genex Dynamics is a ballistics company that uses the unity of command, scalar chain, and division of work principles. These are part of which management philosophy?
Answer:
These are part of Administrative principles approach management philosophy.
Explanation:
The administrative theory was propounded by Henri Fayol. It includes 14 types of principal which includes unity of command, scalar chain, division of work, unity of command, remuneration, centralization, authority, and many more. The motive behind establishing this theory is to running the organization in smoothly manner so that the organization goals and objectives can be achieved efficiently and effectively.
Thus, These are part of Administrative principles approach management philosophy.
On October 1, Eder Fabrication borrowed $79 million and issued a nine-month, 11% promissory note. Interest was payable at maturity. Prepare the journal entry for the issuance of the note and the appropriate adjusting entry for the note at December 31, the end of the reporting period.
Final answer:
The journal entry to record the issuance of the note includes debiting Cash and crediting Notes Payable for $79 million. As of December 31, Interest Expense is debited and Interest Payable is credited for the accrued interest, calculated at $2,182,500 over the three-month period.
Explanation:
To record the issuance of the promissory note by Eder Fabrication on October 1, the company would make the following journal entry: debit Cash for $79 million and credit Notes Payable for $79 million. This entry reflects the receipt of cash and the obligation to repay the principal amount of the note.
By December 31, Eder Fabrication should recognize the interest that has accrued on the promissory note. The interest for three months (October to December) would be calculated as follows: $79 million x 11% x (3/12). The journal entry would be a debit to Interest Expense and a credit to Interest Payable for the amount calculated.
Let's calculate that interest: $79,000,000 x 0.11 x (3/12) = $2,182,500.
The journal entries for the issuance and adjusting interest would look like this:
Issuance of note:
Debit Cash $79,000,000Credit Notes Payable $79,000,000Adjusting entry for interest:
Debit Interest Expense $2,182,500Credit Interest Payable $2,182,500The data below is from the Statistical Abstract of the United States located on the Internet specifically from tables in the section entitled "Foreign Commerce and Aid." One of the tables lists U.S. exports and imports by selected Standard Industrial Trade Classification (SITC) commodity. Complete the Net Export column in the table below:(Enter all values as integers. Remember to include a negative sign where appropriate.)
Commodity Export Value Import Value Net Exports=Exports-Imports
($ millions) ($ millions) ($ millions)
Coffee 4 3,237
Corn 13,931 350
Soybeans 15,455 182
Airplanes 51,854 13,286
Footwear 673 19,545
Vehicles 98,871 190,799
Crude Oil 2,270 353,537
Answer: The complete table shows below:
Explanation:
The complete table shows in the image which is having four columns.
The four colomns are commodity, export value, import value and net exports value.
Net exports are the difference between export value and the import value.
In this table, there is a data for seven commodities, namely, coffee,corn, soybeans, airplanes, footwear, vehicles and crude oil.
Indigo Construction Inc. agrees to construct a boat dock at the Smooth Sailing Marina for $43,700. In addition, under the terms of the contract, Smooth Sailing will pay Indigo a performance bonus of up to $12,000 based on the timing of completion. The performance bonus will be paid fully if construction is completed by the agreed-upon date. The performance bonus decreases by $2,400 per week for every week beyond the agreed-upon completion date. Indigo has constructed a number of boat docks under similar agreements. Indigo’s management estimates, that it has a 60% probability of completing the project on time, a 20% probability of completing the project one week late, and a 20% probability of completing the project two weeks late. Management does not believe the project will be more than two weeks late. Determine the transaction price that Indigo should compute for this agreement. Transaction Price $
Answer: The transaction price that Indigo should compute for this agreement = $54,260
Explanation:
First , we'll evaluate Variable consideration using expected value method.
The probability of time completion is 60%
The consideration (performance bonus) = 12,000;
∴ Expected consideration = 60% of 12000 = $7,200
Probability of completing the project one week late = 20%
The consideration = 9600
∵ The performance bonus reduces by 2400 for delay of a week;
∴ Expected consideration = 20% of 9600 = $1920
Similarly, for a delay of 2 weeks,
Expected consideration = $1,440
So, the total expected consideration comes to 10,560/-
Transaction price = contract cost + Variable consideration
=43700+(12000 × 0.6+ 9600 × 0.2 + 7200 × 0.2)
=$54,260
The transaction price that Indigo Construction Inc. should compute is $54,260. This is calculated by using a probability-weighted approach to determine the expected performance bonus and adding it to the fixed contract price.
To calculate the transaction price that Indigo Construction Inc. should compute for the contract with Smooth Sailing Marina, we need to apply a probability-weighted approach regarding the potential performance bonus. We have three scenarios based on the probabilities given:
Completing on time: 60% probability of earning the full $12,000 bonus.Completing one week late: 20% probability of earning a $9,600 bonus ($12,000 - $2,400).Completing two weeks late: 20% probability of earning a $7,200 bonus ($12,000 - $4,800).The expected performance bonus can be calculated by multiplying each bonus amount by its respective probability and summing up the results:
Expected bonus = (0.60 * $12,000) + (0.20 * $9,600) + (0.20 * $7,200)
Expected bonus = $7,200 + $1,920 + $1,440
Expected bonus = $10,560
We then add the fixed contract amount to the expected bonus to determine the overall transaction price:
Transaction Price = $43,700 + $10,560
Transaction Price = $54,260
Therefore, the transaction price that Indigo should compute for this agreement is $54,260.
Which of the following is an example of how the Principle of Beneficence can be applied to a study employing human subjects?
A. Providing detailed information about the study and obtaining the subject's consent to participate.
B. Determining that the study has a maximization of benefits and a minimization of risks.
C. Ensuring that the selection of subjects includes people from all segments of the population.
D. Ensuring that persons with diminished autonomy are protected.
Answer:
Determining that the study has a maximization of benefits and a minimization of risks.-B.
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $189,000 of raw materials on credit; issued materials to production of $214,000 of which $11,000 were indirect. Minstrel incurred a factory payroll of $158,000, of which $21,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. If Minstrel incurred total overhead costs of $194,800 during the month, compute the amount of under- or overapplied overhead:
Answer:
10,700 overapplied
Explanation:
we are asked for overhead so any data that don't help with that is irrelevant
The applied MOH is done by this rate:
MOH = 150% Labor
So we need to calculate the direct labor:
Payroll - indirect labor = direct labor
158,000 - 21,000 = 137,000
Now we calculate the applied MOH
Applied MOH 137,000 * 150% = 205,500
Now we compare the Applied overhead with the actual overhead.
205,500-194,800=10,700
because applied is greater than actual the MHO is overapplied
Final answer:
Minstrel Manufacturing has overapplied overhead of $10,700 for the month. This was determined by applying their predetermined overhead rate to the direct labor cost and comparing it to actual overhead costs incurred.
Explanation:
To calculate the amount of under- or overapplied overhead for Minstrel Manufacturing, we must first determine the amount of overhead that was applied to production using the predetermined overhead rate and then compare it to the actual overhead costs incurred. The predetermined overhead rate is 150% of direct labor cost. We calculate the applied overhead as follows:
First, we need to determine the direct labor cost, which is the total factory payroll minus the indirect labor. That is $158,000 - $21,000 = $137,000.
Next, we apply the predetermined overhead rate: $137,000 (Direct Labor) x 150% = $205,500.
Now, compare the applied overhead with the actual overhead costs of $194,800:
Applied Overhead: $205,500
Actual Overhead: $194,800
Under- or Overapplied Overhead: Actual Overhead - Applied Overhead = $194,800 - $205,500 = - $10,700
Since the result is negative, Minstrel Manufacturing has overapplied overhead of $10,700 for the month.
Gomez runs a small pottery firm. He hires one helper at $15,500 per year, pays annual rent of $5,500 for his shop, and spends $21,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $6,500 per year if alternatively invested. He has been offered $20,500 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $7,000 per year. Total annual revenue from pottery sales is $87,000. Calculate the accounting profit and the economic profit for Gomez.
Answer:
The accounting profit is $45,000 and economic profit is $11,000
Explanation:
Accounting profit is nothing but the owner's profit or you can say business profit. This profit can be taken out by calculating all the revenue generated from business and subtract the revenue by the explicit cost. The explicit cost here means the cost which is incurred in the process of running the business which includes rent paid, wages of labor and material purchased etc.
ACCOUNTING PROFIT ( FOR GOMEZ) =
= TOTAL REVENUE EARNED FROM POTTERY - HELPER SALARY - RENT ON SHOP - AMOUNT SPENT ON MATERIALS
= $87,000 - $15,500 - $5,500 - $21,000
= $45,000
Economic profit is not that much different from the accounting profit with only difference being that in the economic profit , implicit cost will also be included with the explicit cost. Implicit cost can be said as the opportunity cost which in this case Gomez is missing by running his own business.
Implicit cost in this question will include -
1) $6,500 which Gomez could have gotten if he would had invested $40,000 in equipment
2) he could have earn $20,500 if he had work as potter for his competitor
3) his entrepreneurial talents are worth $7,000
So therefore the total implicit cost is equal to $34,000
ECONOMIC PROFIT = TOTAL REVENUE - EXPLICIT COST - IMPLICIT COST
= $87,000 - $42,000 - $34,000
= $11,000
In order to achieve cost economies, Tull and Ward Company bases production plants for labor-intensive products in low-wage countries such as Mexico and locates production plants that require skilled workers in high-skill countries like Japan. This illustrates the: A. International model B. Multinational model C. Global model D. Transnational model
Answer:
D. Transnational model
Explanation:
Companies that have headquarters in their country of origin and work in other countries through the installation of subsidiaries, are classified as transnational companies.
For developing countries, the installation of these companies in their territory is a positive factor, as it generates new jobs, in addition to promoting industrialization in the region. In turn, the transnationals use as criteria to set up their branches, places with potential market consumer, infrastructure, raw material, energy and cheap labor. Moreover, when work requires high performance, firms open branches or offices in countries where the workforce is most qualified.
Perine Company has 2,000 pounds of raw materials in its December 31, 2016, ending inventory. Required production for January and February of 2017 are 4,000 and 5,000 units, respectively. 2 pounds of raw materials are needed for each unit, and the estimated cost per pound is $6. Management desires an ending inventory equal to 25% of next month’s materials requirements. Prepare the direct materials budget for January.
To prepare the direct materials budget for January, you need to calculate the total raw materials required based on production needs and inventory requirements, then multiply by the cost per pound. In this case, the total is $51,000.
Explanation:To prepare the direct materials budget for January for Perine Company, follow these steps:
Determine the required production in units: In January, Perine Company plans to produce 4,000 units.Calculate the total raw materials needed for production: Each unit requires 2 pounds of raw materials, so 4,000 units will require 8,000 pounds.Calculate the desired ending inventory for January: The ending inventory should be 25% of the next month's (February) materials needs. Since 5,000 units are required for February and each unit requires 2 pounds of material, the materials needs for February is 10,000 pounds. 25% of 10,000 pounds is 2,500 pounds. So, the desired ending inventory for January is 2,500 pounds.Calculate the total raw materials required in units: The total raw materials required will be the sum of the total materials needed for production and the desired ending inventory, less the beginning inventory. That is, 8,000 pounds needed for production + 2,500 pounds desired ending inventory - 2,000 pounds beginning inventory. This equals 8,500 pounds.Calculate the total cost for raw materials needed: The cost per pound is $6. Therefore, the total cost is $6 * 8,500 pounds = $51,000.The direct materials budget for January will include $51,000 for purchases of raw materials.
Learn more about Direct Materials Budget here:https://brainly.com/question/33948733
#SPJ3
The direct materials budget for January includes calculation of materials needed for production plus desired ending inventory, minus beginning inventory, to find the purchase requirement. Multiplying this by the cost per pound results in a budgeted materials cost of $51,000 for January.
Explanation:January Direct Materials Budget
To prepare the direct materials budget for January, we need to calculate the total materials needed for production, add the desired ending inventory, and then subtract the beginning inventory available to find the amount to be purchased. Then we multiply the quantity to be purchased by the estimated cost per pound to get the budgeted materials cost.
Total materials needed for January production = 4,000 units × 2 pounds/unit = 8,000 poundsDesired ending inventory for January = 25% of February's materials requirements = 25% of (5,000 units × 2 pounds/unit) = 2,500 poundsTotal materials required for January = Total materials needed + Desired ending inventory = 8,000 pounds + 2,500 pounds = 10,500 poundsBeginning inventory for January = December 31, 2016, ending inventory = 2,000 poundsMaterials to be purchased in January = Total materials required - Beginning inventory = 10,500 pounds - 2,000 pounds = 8,500 poundsEstimated cost per pound = $6Budgeted materials cost for January = Materials to be purchased × Cost per pound = 8,500 pounds × $6/pound = $51,000Learn more about Direct Materials Budget here:https://brainly.com/question/33948733
#SPJ2
Suppose Ruston Company has the following results related to cash flows for 2017:
Increase in Debt of $700,000
Dividends of $500,000
Purchases of Property, Plant, & Equipment of $8,300,000
Other Adjustments from Financing Activities of $200,000
Other Adjustments from Investing Activities of $500,000
Assuming no other cash flow adjustments than those listed above, create a statement of cash flows for investing and financing activities with amounts in thousands.
Answer & Explanation:
+700,000 Loan
-500,000 Dividends paid
+200,000 Other adjustment
Cash flow generated from financing activities 400,000
-8,300,000 Purchase of equipment
+500,000 Other adjustment
Cash flow used in investing activities 7,800,000
Motorcycle Manufacturers, Inc. projected sales of 53,500 machines for the year. The estimated January 1 inventory is 6,060 units, and the desired December 31 inventory is 7,130 units. What is the budgeted production (in units) for the year? a. 53,500 b. 52,430 c. 40,310 d. 54,570
Answer:
d. 54,570
Explanation:
We are going to make a little change in the inventory formula for a selling business
[tex]$$Beginning + Purchases = Sales + Ending[/tex]
In thiws case, because this business manufactures their product it will be:
[tex]$$Beginning + Production = Sales + Ending[/tex]
[tex]$$6,060 + Production = 53,500 + 7,130[/tex]
Production = 54,570
Ethan has $240,000 to invest today at an annual interest rate of 4%. Approximately how many years will it take before the investment grows to $486,000?
Answer:
17.98972134
18 years
Explanation:
Using the compound interest formula we can solve for time
[tex]Principal * (1+ r)^{time} = Amount[/tex]
We post our know values
[tex]240,000* (1+ 0.04)^{time} = 486,000[/tex]
And solve for the unknow
[tex](1.04)^{time} =486,000/240,000\\(1.04)^{time} = 2.025[/tex]
Now we have to use log properties to solve for time
[tex]log_{1.04}2.025 = time[/tex]
[tex]\frac{\log 2.025}{\log 1.04} =17.98972134[/tex]
It will take 18 years
Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $218,767. The Focus Company initially offered to buy the land for $177,181. The companies settled on a purchase price of $211,881. On the same day, another piece of land on the same block sold for $230,319. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company?
Answer:
The cash paid to acquire the land is $211,881.
Therefore it is the amount at which the land is to be recorded in books.
Explanation:
Under the cost concept, whenever an asset is acquired it is recorded in the books at the cash cost of the asset, which is also said to be the historic cost.
It does not provide any value to market value, competitive value or value of similar product.
In the given case the market value of $218,767 is of no importance, as this is not the cash cost.
The cash paid to acquire the land is $211,881.
Therefore it is the amount at which the land is to be recorded in books.
Another piece of land sold at the value of $230,319 is again of no importance for valuation of the land acquired, as this is not the cash cost incurred.
Billy Bob earns $45,000 and faces a .007 probability of dying in a workplace accident. Jim Bob earns $41,000 and faces a .0038 probability of dying in a workplace accident. The two require the same level of skill and training. From this information, what is the implicit value of a person's life?
Answer: $1,250,000
Explanation:
The implicit value of a person's life can be found by using the elasticity approach.
i.e. On comparing the change/reduction in earnings with the change/reduction in probability of dying in a workplace accident.
Given :
Billy Bob earns $45000 with a 0.007 probability of accident
whereas,
Jim Bob earns $41000 with a 0.0038 probability of accident.
thus, value of life = (45000 - 41000)/ (0.007 - 0.0038) = $1,250,000
From this given information The implicit value of a person's life is $1,250,000.
The implicit value of a person's life, in this context, can be calculated by determining the amount of money that Billy Bob and Jim Bob are effectively trading for an increased risk of death. This is often referred to as the value of a statistical life (VSL).
To find the VSL, we calculate the difference in wages and the difference in risk levels between the two jobs. The formula to calculate VSL is:
[tex]\[ \text{VSL} = \frac{\text{Wage Differential}}{\text{Risk Differential}} \][/tex]
First, we calculate the wage differential between Billy Bob and Jim Bob:
[tex]\[ \text{Wage Differential} = \text{Wage}_{\text{Billy Bob}} - \text{Wage}_{\text{Jim Bob}} \][/tex]
[tex]\[ \text{Wage Differential} = \$45,000 - \$41,000 = \$4,000 \][/tex]
Next, we calculate the risk differential between the two jobs:
[tex]\[ \text{Risk Differential} = \text{Risk}_{\text{Billy Bob}} - \text{Risk}_{\text{Jim Bob}} \][/tex]
[tex]\[ \text{Risk Differential} = 0.007 - 0.0038 = 0.0032 \][/tex]
Now we can calculate the VSL:
[tex]\[ \text{VSL} = \frac{\$4,000}{0.0032} \][/tex]
[tex]\[ \text{VSL} = \$1,250,000 \][/tex]
A cruise ship with a mass of 1.00×107kg strikes a pier at a speed of 0.750 m/s. It comes to rest 6.00 m later, damaging the ship, the pier, and the tugboat captain’s finances. Calculate the average force exerted on the pier using the concept of impulse. (Hint: First calculate the time it took to bring the ship to rest.)
Answer: The required force = 4.7 x 105 N
Explanation:
Mass of the ship m = 1.00 x 107 Kg
Initial speed u = 0.750 m/s
Final speed v = 0 m/s
Average speed s =( 0.750 + 0) / 2 = 0.375 m/s
Time taken to bring the ship to rest t = [tex]\frac{distance}{speed}[/tex]
= [tex]\frac{6}{0.375}[/tex]
= 16 s
Average force exerted on the pier F =[tex]\frac{m(v - u )}{t}[/tex]
F = [tex]\frac{1.00 x 107 ( 0 - 0.750 )}{16}[/tex]
F = - 4.7 x 105 N
Hence the required force = 4.7 x 105 N
To calculate the average force exerted on the pier by the cruise ship, use the concept of impulse. Calculate the change in velocity of the ship and the time taken to come to rest. Use the equation for impulse to determine the average force.
Explanation:To calculate the average force exerted on the pier, we can use the concept of impulse. Impulse is defined as the change in momentum of an object. We can calculate the change in momentum of the cruise ship by using the equation:
Impulse = Change in momentum = mass × change in velocity
First, we need to calculate the change in velocity of the ship. Since the ship comes to rest, its final velocity is 0. Therefore, the change in velocity is:
Change in velocity = final velocity - initial velocity = 0 - 0.750 m/s = -0.750 m/s
Next, we need to calculate the time it took for the cruise ship to come to rest. We can use the equation of motion:
Final velocity = initial velocity + acceleration × time
Since the final velocity is 0 and the initial velocity is 0.750 m/s, we have:
0 = 0.750 m/s + acceleration × time
Plugging in the values, we get:
0 = 0.750 m/s + acceleration × time
Using the formula for average acceleration:
Average acceleration = change in velocity/time
we can substitute the values and solve for time:
-0.750 m/s = acceleration × time
So the time taken to bring the ship to rest is:
time = change in velocity / acceleration = -0.750 m/s / acceleration
Using the equation for impulse, we can determine the average force exerted on the pier:
Average force = Impulse/time
Learn more about Calculating the average force exerted on a pier using impulse here:https://brainly.com/question/31678449
Bank A has checkable deposits of $10 million and total reserves of $1 million. The required reserve ratio is 9 percent. The bank has excess reserves of
Answer:
The bank has excess reserves of $100,000.
Explanation:
The deposits here are $10 million.
The required reserve ratio is 9%.
The required reserve will be,
=reserve ratio*total deposits
=9/100*$10,000,000
=$900,000
Here, the required reserve is $900,000.
So, the excess reserve will be,
=total reserve - required reserve
=$(1,000,000-900,000)
=$100,000
An independent trucker has to choose one of the four possible combinations of inputs listed below. The two inputs are drivers and machinery. If he buys expensive machinery, then he can hire fewer drivers to deliver the same output. The input combinations are Method 1: 20 drivers, 10 machines; Method 2: 50 drivers, 2 machines; Method 3: 100 drivers, 0 machines; Method 4: 10 drivers, 12 machines. Hiring a driver costs $10. Each machine costs $100. Which method should he use?
Answer:
Method 2: 50 drivers, 2 machines; Minimun cost of $700
Explanation:
[tex]\left[\begin{array}{ccccc}Machine&Machine Cost&Driver&Driver Cost&Total Cost&12&1200&10&100&1300\\10&1000&20&200&1200&2&200&50&500&700&0&0&100&1000&1000\end{array}\right][/tex]
Upon reviewing the total costs of all methods, Method 2 is the most cost-effective choice for the independent trucker with a total cost of $700.
To determine this, we need to calculate the total cost for each method by multiplying the number of drivers by their cost ($10 each) and the number of machines by their cost ($100 each). We then compare these totals to see which is the least.
Method 1: (20 drivers times $10) + (10 machines times $100) = $200 + $1000 = $1200Method 2: (50 drivers times $10) + (2 machines times $100) = $500 + $200 = $700Method 3: (100 drivers times $10) + (0 machines times $100) = $1000 + $0 = $1000Method 4: (10 drivers times $10) + (12 machines times $100) = $100 + $1200 = $1300What is a domestic limited liability company
Answer: A domestic limited liability company (LLC) is a limited liability company or corporation that is running its business in the state where it was organized. In many states, there is no specific designation for a domestic LLC.
A domestic limited liability company (LLC) is a type of business structure which provides its owners (or members) protection from personal liability, similar to a corporation. It limits a member's liability to their investment in the company, like in a limited liability partnership. Furthermore, LLC offers diversification and sharing of profits among its members.
Explanation:A domestic limited liability company, often referred to as an LLC, is a type of legal structure that combines elements of partnerships and corporations. Much like a corporation, it offers protection from personal liability, as the company is its own legal entity separate from its owners, also known as members. Meaning, the member's personal assets such as home, car, and personal bank accounts are not at risk if the company suffers financial loss or goes bankrupt.
Similar to a limited liability partnership, it also offers the benefit of limiting the partner's liability to their monetary investment in the company. This means that members of the LLC are only held responsible up to the amount they have invested in the company and nothing more.
Owners of an LLC have the advantage of diversification as they can spread their investments through diverse channels, reducing the level of risk. Moreover, potential profits from the company can be shared among the members resembling the way dividends are distributed to shareholders in a corporation.
Learn more about Limited Liability Company here:
https://brainly.com/question/18567855
#SPJ12
The manufacturing costs of Rosenthal Industries for the first three months of the year follow:
Total Costs Production
January $281,520 2,040 units
February 316,550 3,520
March 437,920 5,440
Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.
Answer:
variable cost per unit = 46
fixed cost 188680
Explanation:
The high-low method consist in compare each frame to get the variable and fixed components
5440 high
2040 low
3400 difference
437920 high
281520 low
156400 difference
variable cost =15600/3400
variable cost = 46
the reasoning is that the additional 3400 units generated that cost.
Now:
we múltiple by the units by the production and get total variable
46 * 2040 = 93840 total variable
lastly total cost - total variable = fixed
281520 - 93840 = 188680
Final answer:
The variable cost per unit is calculated as $46, and the total fixed cost is calculated as $187,680 using the high-low method.
Explanation:
To determine the variable cost per unit and the total fixed cost using the high-low method, we select the highest and lowest levels of activity and their associated costs. Here, the highest level is in March (5,440 units with a cost of $437,920) and the lowest level is in January (2,040 units with a cost of $281,520). The change in cost divided by the change in units will give us the variable cost per unit. The fixed cost is then found by subtracting the total variable cost at one of the levels from the total cost at that level.
Calculating Variable Cost Per Unit
Change in Cost = High Cost - Low Cost = $437,920 - $281,520 = $156,400
Change in Units = High Units - Low Units = 5,440 units - 2,040 units = 3,400 units
Variable Cost Per Unit = Change in Cost / Change in Units
= $156,400 / 3,400 units
= $46 per unit
Calculating Total Fixed Cost
Total Variable Cost in January = Variable Cost Per Unit * January Units = $46/unit * 2,040 units = $93,840
Total Fixed Cost = Total Cost in January - Total Variable Cost in January
= $281,520 - $93,840
= $187,680
Suppose that Inventories fall by $2 billion, Consumption increases by $8 billion, Welfare Payments decline by $3 billion, Export increases by $1 billion and Import also increases by $2 billion. Ceteris paribus! By how much should measured-GDP change?
Answer: The measured-GDP would increase by $5 billion.
Explanation:
Given :
Inventories fall by $2 billion,
Consumption increases by $8 billion,
Welfare Payments decline by $3 billion,
Export increases by $1 billion
Import also increases by $2 billion.
Note: While calculating GDP we will not include Welfare payments in it.
[tex]GDP = C + I + G + (X-M)[/tex]
GDP = [tex]-2 + 8 + 1 - 2[/tex]
GDP = $5 billion
A major drawback of using historical results for judging current performance is that _____. A. past results may be incorrect B. results may refer to a different manager C. inefficiences may be concealed in the past performance D. all of these answers are correct
Answer:
C. inefficiences may be concealed in the past performance.
Explanation:
A major drawback of using historical results for judging current performance is that inefficiences may be concealed in the past performance.
Final answer:
The major drawback of using historical results to judge current performance is that past results may be incorrect or misleading, they could refer to different management, and past inefficiencies may be concealed, making it unreliable to predict future performance.
Explanation:
A major drawback of using historical results for judging current performance is that all of these answers are correct. Specifically, past results may be incorrect due to many factors, including but not limited to the accumulation of errors, changes in data collection methods, or revisions to accounting standards. Additionally, results may refer to a different manager who had a distinct style or strategy, which would make comparisons to current performance potentially misleading or irrelevant. Concealment of inefficiencies is also a concern as past performance figures may not always reflect underlying weaknesses that could impact future results.
Inefficiencies may have been hidden due to various reasons such as creative accounting practices, changes in the business environment, or a failure to consider all relevant variables at the time. When using historical performance, it's essential to look critically at the results and contextualize them within the current situation.
This concept also extends to other areas such as investments where past performance is not indicative of future results. Therefore, it is important to use additional quantitative and qualitative measures when evaluating current performance.
Duff Inc. paid a 2.53 dollar dividend today. If the dividend is expected to grow at a constant 4 percent rate and the required rate of return is 7 percent, what would you expect Duff's stock price to be 2 years from now?
Answer: 94.85
Explanation: we can compute stock price after two years by computing stock price today and multiplying it by square of growth rate.
we know that,
[tex]return\:on\:equity=\:\frac{expected\:dividend}{market\:price}+growth[/tex]
where,
expected dividend = current dividend (1+growth)
so, we can write the above equation as :-
[tex]0.07\:=\frac{2.53\left ( 1+0.04 \right )}{P_0}+0.04[/tex]
solving this equation we get:-
[tex]P_0= 87.70[/tex]
and price after two years:-
[tex]P_2=87.70\left ( 1+0.04\right)^2[/tex]
[tex]P_2=94.85[/tex]
The firm's efficient scale is the quantity of output that minimizesa. average total cost. b. average fixed cost. c. average variable cost. d. marginal cost.
Answer: Option (a) is correct.
Explanation:
Correct option: Average Total Cost (ATC)
The firm's efficient level is the quantity of output that minimizes the average total cost. Firm's efficiency is attained at a point where price is equal to marginal cost. Hence, there is one more condition where marginal cost is equal to average total cost.
It is also a point where firm can maximize its profit and total quantity of output is also maximized at this point.
∴ At this point of maximization, firm's efficient level of quantity minimizes the average total cost.
The firm's efficient scale is achieved when the firm minimizes its average total cost. This can be achieved by increasing output, thereby benefiting from economies of scale where the cost per unit decreases as production levels rise.
Explanation:The firm's efficient scale is the quantity of output that minimizes average total cost. This concept is central to understanding how firms decide on the optimal level of output. To calculate average variable cost, you divide the variable cost by the total output at each level of production. Average variable costs typically take a U-shaped curve.
In a scenario where a firm's average variable cost of production is lower than the market price, the firm would be recouping a profit, provided fixed costs are not considered. However, a firm should aim for the output quantity that will minimize its average total cost, achieving economies of scale.
Economies of scale refer to the property where as production output increases, the average cost per unit decreases. Essentially, a larger factory can produce at a lower average cost than a smaller one, making the firm's operations more efficient.
Learn more about Efficient Scale here:https://brainly.com/question/32239836
#SPJ3