Answer:
Instructions are listed below
Explanation:
To determine the cost of sold goods, first, we need to calculate the cost of production for the period.
To calculate the cost of manufactured goods we need to use the following formula:
Cost of good manufactured= Beginning work in progress+ direct materials of the period + direct labor + manufactured overhead - ending work in progress
Beginning work in progress= $111
Direct materials = beginning inventory + purchase - ending= 88 + 8210 - 92= $8206
Direct labor= 12700
Manufactured overhead=Factory and machine depreciation + Factory supervision + Factory utilities + Indirect factory labor +
Indirect materials and supplies + Property taxes on factory= 11740+734+965+2860+684+281= $17264
Ending work in progress= 126
Cost of good manufactured= 111 + 8206 + 12700 + 17264 - 126 = $38155
Cost of goods sold=Beginning Inventory+Production during period−Ending Inventory= 1650 + 38155 - 1430= $38375
The general structure of an income statement proceeds as follow:
Revenue/Sales (+)
Cost of Goods Sold (COGS) (-)
=Gross Profit
Marketing, Advertising, and Promotion Expenses (-)
General and Administrative (G&A) Expenses (-)
=EBITDA
Depreciation & Amortization Expense (-)
=Operating Income or EBIT
Interest (-)
Other Expenses (-)
=EBT (Pre-Tax Income)
Income Taxes (-)
=Net Income
Sales revenue= 45800
Cost of Goods Sold = 38375 (-)
Gross profit= $7425
Administrative costs $ 3,620 (-)
Marketing costs 1,490 (-)
EBITDA= $2315
A company had inventory on November 1 of 5 units at a cost of $25 each. On November 2, they purchased 15 units at $27 each. On November 6 they purchased 11 units at $30 each. On November 8, 12 units were sold for $60 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?
Answer:
Total value of sold goods= $357
Total value of inventory (after Nov 8)= $503
Explanation:
Giving the following information we need to calculate the value of inventory:
November: 5 units at a cost of $25 each.
On November 2:15 units at $27 each.
On November 6:11 units at $30 each.
On November 8: 12 units were sold for $60 each.
The compañy uses LIFO (last in first out) inventory
11 units at $30= $330
1 unit at $27= $27
Total value of sold goods= $357
Total value of inventory=5u*25+14*27= $503
The average capital investments for 2006 were:
Jones......................................................................... $100,000
King........................................................................................ 200,000
Lane................................................................................. 300,000
How much of the $90,000 partnership profit for 2006 should be allocated to Jones?
A)$15,000
B)$27,000
C)$30,000
D)$33,000
Answer:
A)$15,000
Explanation:
jones 100,000
king 200,000
lane 300,000
Total 600,000
Assuming profit are distributed based on capital investment, jones will receive:
100,000/600,000 = 1/6 of the profit
proft x jones ratio = allocate income to Jones
90,000 x 1/6 = 15,000
This will be the amount of profit attributable to Jones.
In the Solow growth model with population growth, but no technological progress, the steady-state amount of investment can be thought of as a break-even amount of investment because: the quantity of investment just equals the amount of:
A) output needed to achieve the maximum level of consumption per worker.
B) capital needed to replace depreciated capital and to equip new workers.
C) saving needed to achieve the maximum level of output per worker.
D) output needed to make the capital per worker ratio equal to the marginal product of capital.
Answer: the steady-state amount of investment can be thought of as a break-even amount of investment because: the quantity of investment just equals the amount of: "B) capital needed to replace depreciated capital and to equip new workers."
Explanation: According to the Solow growth model an economy is in a steady state when it makes the most efficient use of its resources. That is, the state in which the saving or investment is equal to the depreciation of capital.
Sandra is running an online bookstore. Her market research shows her that many people visit the site, look at several books, add one or more books to the shopping cart but never actually purchase anything. Based on what she learned about the consumer buying process, Sandra decided to offer free delivery. She felt that this would make it easier for the customer in the ___________ stage of the consumer buying process.
Answer: Purchase stage
Explanation: This is the second last stage in the buying process. Until this stage the customer must have decided to make the purchase. However it is not guaranteed that the customer will do it as any small issue could lead to change in mind.
In the given case, Sandra is giving additional services as the customers on her sight decides to purchase the book but cancels the order after.
Thus, from the above we can conclude that the given case relates to the purchase stage.
Initial sale price of common stock Hudson-Perry Recordings Inc has one issue of preferred stock and one issue of common stock outstanding. Given their stockholders' equity account that follows, determine the original price per share at which the firm sold its single issue of common stock. Stockholders' Equity ($000) Preferred stock $ 228 Common stock ($ 0.24 par, 1 comma 402 comma 000 shares outstanding) 336 Paid-in capital in excess of par on common stock 19 comma 466 Retained earnings 1 comma 803 Total stockholders' equity Modifying $ 21 comma 833 with double underline The original price per share is $ nothing. (Round to the nearest cent.)
Answer:
the original price from the issue of shares: 14.12 dollars
Explanation:
It will be the sum of the common stock and the paid-in capital in excess of par:
The values are expresses as thousand, so we multiply by 1,000
common stock 0.24 x 1,402,000 = 336,480
additional paid-in 19,466 x 1,000 = 19,466,000
Total 19,802,480
Price per share: 19,802,480 / 1,402,000 = 14,12410 = $14.12 This will be the original price of the price.
for planning control, and decision-making purpose:
(A) fixed costs should be converted to a per unit basis
(B) discretionary fixed costs should be eliminated
(C) variable costs should be ignored
(D) mixed costs should be separated into their variable and fixed components
Answer:
D) mixed costs should be separated into their variable and fixed components
Explanation:
A mixed cost is a cost that contains both a fixed cost component and a variable cost component. It is important to understand the mix of these elements of a cost, so that one can predict how costs will change with different levels of activity. Typically, a portion of a mixed cost may be present in the absence of all activity, in addition to which the cost may also increase as activity levels increase. As the level of usage of a mixed cost item increases, the fixed component of the cost will not change, while the variable cost component will increase. The formula for this relationship is
Tatoo Inc. reported a net capital loss of $13,500 in 2018. The company had a net capital gain of $4,800 in 2016 and $3,500 in 2015. In 2017, although the company suffered a net operating loss, it had net capital gains of $1,500. What is the amount of Tatoo's capital loss carryover remaining after it applies the carryback?
Answer:
The amount of Tatoo's capital loss carryover remaining after it applies the carryback is $ 5200.
Explanation:
The net capital loss will be set off as :
2016 : $ 4800
2017 : $ 3500
Net carryback = $ 13500 - $ 4800 - $ 3500
= $ 5200
Therefore, the amount of Tatoo's capital loss carryover remaining after it applies the carryback is $ 5200.
Normative and positive statements
The following table contains statements that provide some analysis of policies that address breast cancer.
Categorize each of them as positive or normative.
Statement
Positive
Normative
Breast cancer is the fifth most common cause of cancer death.
For women aged 60 to 69, breast cancer screening significantly reduces breast cancer mortality.
Doctors should encourage women aged 60 to 69 to be screened for breast cancer.
The government should force doctors to encourage women aged 60 to 69 to be screened for breast cancer.
Answer:
1. Breast cancer is the fifth most common cause of cancer death - Positive statement
2. For women aged 60 to 69, breast cancer screening significantly reduces breast cancer mortality - Positive statement
3. Doctors should encourage women aged 60 to 69 to be screened for breast cancer - Normative statement
4. The government should force doctors to encourage women aged 60 to 69 to be screened for breast cancer - Normative statement
Final answer:
Explanation of positive and normative statements about breast cancer policies.
Explanation:
Normative:
Doctors should encourage women aged 60 to 69 to be screened for breast cancer.The government should force doctors to encourage women aged 60 to 69 to be screened for breast cancer.Positive:
Breast cancer is the fifth most common cause of cancer death.For women aged 60 to 69, breast cancer screening significantly reduces breast cancer mortality.Healthy Foods Inc. sells 60-pound bags of grapes to the military for $15 a bag. The fixed costs of this operation are $90,000, while the variable costs of grapes are $0.15 per pound. a. What is the break-even point in bags? (Round your answer to 2 decimal places.) b. Calculate the profit or loss (EBIT) on 14,000 bags and on 35,000 bags. c. What is the degree of operating leverage at 21,000 bags and at 35,000 bags? (Round your answers to 2 decimal places.) d. If Healthy Foods has an annual interest expense of $17,000, calculate the degree of financial leverage at both 21,000 and 35,000 bags. (Round your answers to 2 decimal places.) e. What is the degree of combined leverage at both 21,000 and 35,000 bags? (Round your answers to 2 decimal places.)
Answer:
BEP units: 15,000 60-pounds bags
(B)
14,000 generates 6,000 loss
35,000 generates 120,000 net
(C) operating leverage: 2
(D) financial leverage: 1.63
(E) combined leverage: 3,26
Explanation:
[tex]\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio[/tex]
[tex]Sales \: Revenue - Variable \: Cost = Contribution \: Margin[/tex]
60 pounds sales price = $ 15
60 pound cost: 60 x 0.15 = $ 9
Contribution Margin 6
[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]
Fixed Cost 90,000
BEP units: 15,000
(B) profit at given level:
sales x margin - fixed cost = net profit
14,000 x 6 - 90,000 = (6,000)
35,000 x 6 - 90,000 = 120,000
(C) operating leverage: change in EBIT / change in sales
income at 21,000 x 6 - 90,000 = 36,000
EBIT change:
120,000/36,000 = 3 + 1/3
Slaes change:
35,000/21,000 = 1 + 2/3
operating leverage:
(3 + 1/3) / (1 + 2/3) = 2
(d) financial leverage
change in net income:
(120,000 - 17,000) / (36,000 - 17,000)
103,000 / 19,000 = 103/19
change in EBIT 3 + 1/3 (already calculate
(103/19) / (3+1/3) = 1.626315789
(E) combined
2 x 1.626315789 = 3,252631578
Final answer:
The break-even point for Healthy Foods Inc. is 15,000 bags. EBIT is a loss of $4,000 at 14,000 bags and a profit of $120,000 at 35,000 bags. Degree of operating leverage and degree of financial leverage, as well as the degree of combined leverage, can be calculated at different quantities of bags sold, incorporating the fixed costs and interest expenses accordingly.
Explanation:
To calculate the break-even point in bags for Healthy Foods Inc., we first need to determine the contribution margin per bag. Since the variable cost is $0.15 per pound and each bag is 60 pounds, the variable cost per bag is 60 * $0.15 = $9. Therefore, the contribution margin per bag is the selling price per bag minus the variable cost per bag, which is $15 - $9 = $6 per bag. The break-even point in bags can then be calculated by dividing the total fixed costs by the contribution margin per bag, i.e., $90,000 / $6 = 15,000 bags.
For EBIT calculations, we can determine the profit or loss by multiplying the number of bags sold by the contribution margin per bag, and then subtracting the fixed costs. At 14,000 bags, EBIT is (14,000 * $6) - $90,000 = -$4,000, indicating a loss. At 35,000 bags, EBIT is (35,000 * $6) - $90,000 = $120,000, which is a profit.
The degree of operating leverage (DOL) can be calculated as Q * (P - V) / (Q * (P - V) - F), where Q is the quantity sold, P is the price per unit, V is the variable cost per unit, and F is the fixed costs. At 21,000 bags, DOL is 21,000 * ($15 - $9) / (21,000 * ($15 - $9) - $90,000). At 35,000 bags, the calculation would be similar with the respective quantities.
For the degree of financial leverage (DFL), we include the interest expense in the calculations. DFL is calculated as EBIT / (EBIT - interest expenses), so for 21,000 and 35,000 bags sold, we would calculate it using the previously found EBIT values and subtract the annual interest expense of $17,000.
Finally, the degree of combined leverage (DCL) is the product of DOL and DFL, which shows the combined effect of operating and financial leverage on earnings per share, calculated for both 21,000 and 35,000 bags, rounding to two decimal places.
The asset, liabilities, and equities of Damon Design Studio have the following balances at December 31, 2018. The retained earnings was 39,000 at the beginning of the year. At year end, common stock was $ 13,000 and dividends were $ 57,000.Notes Payable $14,000Rent expense 23,000Cash 3,200Office supplies 5,100Salaries expense 65,000Property tax expense 2,200Office furniture 48,400Utilities expense 7,200Account payable 3,600Service revenue 154,600Account receivable 9,300Miscellaneous expense 3,800(a) Preparing the statement of retained earning(b) Prepare the statement of retained earning for Damon Design Studio for the year ending December 31, 2018.
Answer:
Explanation:
For computing the retained earning ending balance, first, we have to compute the net income. So, the calculation is shown below:
= Service revenue - salaries expense - property tax expense - utilities expense - miscellaneous expense - rent expense
= $154,600 - $65,000 - $2,200 - $7,200 - $3,800 - $23,000
= $53,400
So, the net income would be $53,400
Now, we have to find the ending retained earning balance which equals to
= Beginning retained earning balance + net income - dividend paid
= $39,000 + $53,400 - $57,000
= $35,400
The preparation of the statement of retained earning is presented in the spreadsheet. Kindly find the attachment below:
The statement of retained earnings for Damon Design Studio for the year ending December 31, 2018, starts with an opening balance of $39,000, adds a net income of $53,400 and subtracts dividends of $57,000, resulting in an ending balance of $35,400.
Explanation:Preparing the Statement of Retained Earnings for Damon Design StudioTo prepare the statement of retained earnings for Damon Design Studio for the year ending December 31, 2018, we must consider the beginning balance of retained earnings, add the net income (or loss), and subtract any dividends paid during the year.
The beginning retained earnings is given as $39,000. We will calculate net income by subtracting total expenses from the total service revenue. Here's the detailed calculation:
Service Revenue: $154,600Total Expenses (Rent expense + Salaries expense + Property tax expense + Utilities expense + Miscellaneous expense): $23,000 + $65,000 + $2,200 + $7,200 + $3,800 = $101,200Net Income: Service Revenue - Total Expenses = $154,600 - $101,200 = $53,400Retained Earnings at the beginning of the year: $39,000
Plus Net Income: $53,400
Minus Dividends: $57,000
Retained Earnings at the end of the year: $39,000 + $53,400 - $57,000 = $35,400
Statement of Retained Earnings SummaryDamon Design Studio
Retained Earnings, January 1, 2018: $39,000
Add: Net Income for 2018: $53,400
Less: Dividends Paid in 2018: $57,000
Retained Earnings, December 31, 2018: $35,400
Find the amount to which $550 will grow under each of the following conditions. Do not round intermediate calculations. Round your answers to the nearest cent.
(A) 9% compounded annually for 5 years.
(B) 9% compounded semiannually for 5 years.
(C) 9% compounded quarterly for 5 years.
(D) 9% compounded monthly for 5 years.
Answer:
(A)Fv= $864.2
(B) Fv= $1302.05
(C) Fv= $2003.4
(D) Fv= $96817.21
Explanation:
Giving the following information:
Initial investment= $550
We will use the final value formula:
FV=Present value*(1+i)^n
(A) 9% compounded annually for 5 years.
Fv= 550*(1.09)^5=$864.2
(B) 9% compounded semiannually for 5 years.
Fv= 550*(1.09)^10= $1302.05
(C) 9% compounded quarterly for 5 years.
Fv= 550*(1.09)^15= $2003.4
(D) 9% compounded monthly for 5 years.
Fv= 550*(1.09)^60=$96817.21
Fritz Evans is the owner and operator of Be-The-One, a motivational consulting business.
At the end of its accounting period, December 31, 2013, Be-The-One has assets of $395,000
and liabilities of $97,000. Using the accounting equation, determine the following amounts:
a. Owner's equity as of December 31, 2013.
b. Owner's equity as of December 31, 2014, assuming that assets decreased by $65,000
and liabilities increased by $36,000 during 2014.
PE
Answer:
2013 Equity: 298,000
2014 Equity: 327,000
Explanation:
(A)
Assets = Liabilities + Equity
395,000 = 97,000 + Equity
395,000 - 97,000 = Equity
298,000 = Equity
(B)
if asset increase by 65,000
and liabilities increase by 36,000
(395,000 + 65,000) = (97,000 + 36,000) + Equity
460,000 = 133,000 + Equity
Equity = 460,000 - 133,000 = 327,000
Arrowhead Delivery Service is owned and operated by Gates Deeter. The following selected
transactions were completed by Arrowhead Delivery Service during August:
1. Received cash from owner as additional investment, $25,000.
2. Paid creditors on account, $3,750.
3. Billed customers for delivery services on account, $22,400.
4. Received cash from customers on account, $11,300.
5. Paid cash to owner for personal use, $6,000.
Indicate the effect of each transaction on the accounting equation elements (Assets,
Liabilities,
Owner's Equity, Drawing, Revenue, and Expense). Also indicate the specific
item within the accounting equation element that is affected. To illustrate, the answer to
(1) is shown below.
(1) Asset (Cash) increases by $25,000; Owner's Equity (Gates Deeter, Capital) increases
by $25,000.
Answer
(1) Asset (Cash) increases by 25,000;
Owner's Equity (Gates Deeter, Capital) increases by 25,000.
(2) Liaiblities (Accounts Payable) decrease by 3,750
Assets (Cash ) decrease by 3,750
(3) Assets (Account Receivable ) increase by 22,400
Owner's Equity (Services revenue) increases by 22,400.
(4) Assets (Cash) increase by 11,300
Assets (Account Receivables) decrease by 11,3000
(5) Owner's Equity (Gates Deeter, Capital) decreases by 6,000.
Assets (Cash ) decrease by 6,000
Explanation:
Each transacion must have at least two accounts to explain it.
Also we must make sure that the change we made balance
so we should check if Assets = Liab + Equity
with the values, increases and decreases we post.
This information relates to Sunland Company for the year 2017. Retained earnings, January 1, 2017 $83,080 Advertising expense 2,232 Dividends 7,440 Rent expense 12,896 Service revenue 71,920 Utilities expense 2,976 Salaries and wages expense 37,200 After analyzing the data, prepare an income statement for the year ending December 31, 2017.
Answer:
Net Income : $16.616
Retained Earnings: $92.256
Please see details below:
Explanation:
Income Statement 2017
Sales $71.920
Advertising Expenses -$2.232
Miscellaneous Expenses -$50.096
Utilities Expenses -$2.976
Net Income $16.616
Retained Earnings Report
Opening retained earnings $ 83.080
Add: Net Income $ 16.616
Subtotal $ 99.696
Less: Dividens -$ 7.440
Total $ 92.256
Pix Company has the following production data for March: no beginning work in process, units started and completed 31,000, and ending work in process 4,100 units that are 100% complete for materials and 40% complete for conversion costs. Pix uses the FIFO method to compute equivalent units. If unit materials cost is $4 and unit conversion cost is $13. The total costs to be assigned are $564,720, prepare the cost section of the production cost report for Pix Company using the FIFO approach.
Answer:
unit beggining WIP 0
Units started and completed 31,000
Ending inventory 4,100
Total physical units 35,100
Equivalent units (materials)
Units started and completed 31,000
WIP materials (4,100 x 100%) 4,100
Total units accounted for 35,100
Equivalent units (conversion)
Units started and completed 31,000
WIP materials (4,100 x 40%) 1,640
Total units accounted for 32.640
Cost Incurred during March:
35, 100 x 4 = 140,400
32,640 x 13 = 1,044,480
Total cost 1, 184,880
Cost assigned to units transferred out
31,000 x (4 + 13) = 527,000
Cost of WIP
4,100 x 4 = 16.400
1,640 x 13 = 21,320
Total 37,720
Explanation:
We need to do the count of physical units
we need to calcualte the equivalent units:
transferred + ending x completion percentage
then the cost incurred
and allocate cost to finished goods and the ending WIP based on the equivalent units of materials and conversion
Final answer:
To prepare the production cost report for Pix Company, we calculate equivalent units for materials and conversion costs, then assign total costs using these calculations, which matches the provided total costs of $564,720.
Explanation:
The question involves preparing the cost section of a production cost report for Pix Company using the FIFO method for the month of March. The data includes units started and completed, the ending work in process units and their completion percentages, and the costs for materials and conversion. Using the provided unit costs for materials ($4) and conversion ($13), we calculate the equivalent units for both materials and conversion under the FIFO method. Since all ending work in process units are 100% complete for materials, equivalent units for materials are the same as the physical units. For conversion, the equivalent units are based on the completion percentage. The total costs are then assigned based on these calculations.
To calculate the cost for materials: 31,000 units completed + 4,100 units in ending WIP at 100% = 35,100 equivalent units. Materials cost: 35,100 units x $4/unit = $140,400.
For conversion costs: 31,000 units (from units completed) + (4,100 units in ending WIP x 40% completion for conversion) = 32,640 equivalent units. Conversion cost: 32,640 units x $13/unit = $424,320.
Total costs to be assigned = Materials cost + Conversion cost = $140,400 + $424,320 = $564,720, matching the total costs provided in the question.
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. David directly purchases a one-fifth interest by paying Allen $34,000 and Daniel $10,000. The land account is increased before David is admitted. By what amount is the land account increased?
A. $40,000
B. $10,000
C. $36,000
D. $20,000
Answer: Option (A) is correct.
Explanation:
Given that,
Allen's capital is $140,000
Daniel's is $40,000
Income sharing Ratio = 3:1
David paid for a 1/5th stake in the partnership
Allen = $34,000 and Daniel = $10,000
Total amount paid by David = $44,000
Land account is increased before David is admitted
Therefore,
The value of entire entity = 5 × $44,000
= $220,000
Upward valuation on account of land revaluation = $220,000 - $180,000
= $40,000
People, in general, do not lend money to one another to buy a house or a car because: A. they do not know about the capacity of other people to repay their debts. B. of information problems. C. they do not know about the effort other people will provide to repay their debts. D. All of the above.
Answer: People, in general, do not lend money to one another to buy a house or a car because: D. All of the above.
Explanation: It all comes down to information problems, assuming that all participants fully know the financial capacity of others would lend money because there would be no uncertainty and risk.
That is why certain requirements are requested when requesting loans at a bank.
A firm has estimated the following demand function for its product:
Q = 100 - 5 P + 5 I + 15 A
Where Q is quantity demanded per month in thousands, P is product price, I is an index of consumer income, and A is advertising expenditures per month in thousands. Assume that P = $200, I = 150, and A = 30. For simplicity in calculating the results, use the point elasticity formulas to complete the calculations indicated below.
(i) Calculate quantity demanded.
(ii) Calculate the price elasticity for demand. Is demand elastic, inelastic, or unit elastic?
(iii) Calculate the income elasticity of demand. Is the good normal or inferior?
(iv) Calculate the advertising elasticity of demand.
Answer:
(i) Q=300
(ii) Elasticity of Demand=-3.33 (elastic)
(iii) Income Elasticity= 2.5 (normal good)
(iv) Advertising Elasticity: 1.5
Explanation:
The Demand function is given by
[tex]Q=100-5P+5I+15A[/tex]
(1) To solve (i) we need to replace P = 200, I = 150, and A = 30 in the demand equation:
[tex]Q=100-5(200)+5(150)+15(30)=300[/tex]
(2) To find the price elasticity (how much quantity demanded changes with price) we use the point price elasticity formula
[tex]\eta_{Price}=\frac{\Delta Q}{\Delta P}\frac{P}{Q}[/tex]
From the above equation we get: [tex]\frac{\Delta Q}{\Delta P}=-5[/tex]
Replacing in the elasticity formula
[tex]\eta_{Price}=-5\frac{200}{300}=|-3.33|>1[/tex]
in absolute terms the elasticity is bigger than one so it is an elastic demand.
(3) For income elasticity (how much quantity demanded changes with income), we proceed similarly as above. But the derivative is respect to income
[tex]\eta_{Income}=\frac{\Delta Q}{\Delta I}\frac{I}{Q}=5\frac{150}{300}=2.5>1[/tex][/tex]
Which is bigger than one, denoting this is a normal good because it's bigger than one.
(4) Advertising elasticity (how much quantity demanded changes with expenditures in advertising), we proceed as before
[tex]\eta_{advertising}=\frac{\Delta Q}{\Delta A}\frac{A}{Q}=15\frac{30}{300}=1.5[/tex]
Swifty's Market used the perpetual method to record the following events involving a recent purchase of inventory:
Received goods for $75400, terms 2/12, n/30.
Returned $1300 of the shipment for credit.
Paid $700 freight on the shipment.
Paid the invoice within the discount period.
As a result of these events, the company's inventory
Answer:
Inventory balance will be of 73,318
Explanation:
Inventory 75,400
Account payable 75,400
to record goods received
Account payable 1,300
Inventory 1,300
to record return of goods
Inventory 700
Cash 700
to record payment of freight
Account Payable 74,100
Inventory 1,482
Cash 72,618
to record payment of invoice within discount period
75,400 - 1,300 = 74,100
74,100 x 2% = 1,482
Inventory balance:
DEBIT CREDIT
75,400
1,300
700
1,482
balance:
73,318
Funtime Park competes with Splash World by providing a variety of rides. Funtime sells tickets at $ 90 per person as a one-day entrance fee. Variable costs are $ 18 per person, and fixed costs are $ 464 comma 400 per month. Under these conditions, the breakeven point in tickets is 6 comma 450 and the breakeven point in sales dollars is $580 comma 500. Read the requirements LOADING.... Requirement 1. Suppose Funtime Park cuts its ticket price from $ 90 to $ 72 to increase the number of tickets sold. Compute the new breakeven point in tickets and in sales dollars. Begin by selecting the formula labels and then entering the amounts to compute the number of tickets Funtime must sell to break even under this scenario. (Abbreviation used: CM
Answer:
The new breakeven point in tickets is 8,600 and in sales dollars $619,200
Explanation:
BP=FC/CM
BP= breakeven point
FC=fixed cost
CM=contribution margin
8,600=464,400/(72-18)
8,600*72= $619,200
Answer:
BEPd 619,200
BEPu 8,600
Explanation:
1) sales price at 72:
[tex]Sales \: Revenue - Variable \: Cost = Contribution \: Margin[/tex]
contribution per unit
72 - 18 = 54
[tex]\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio[/tex]
54 / 72 = 75%
[tex]\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}[/tex]
464,400 / 0.75 = 619,200
in units: sales to break even 619,200 / 72 unit sales price = 8.600
The following is an account for a production department, showing its costs for one month: Work in Process Inventory Beginning Balance 5,600 Completed and transferred out 50,010 Direct materials 21,800 Direct labor 16,400 Overhead 11,000 Ending Balance 4,790 Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost $42,050, what was the cost of completing the units in the beginning Work in Process inventory?
Answer: $7,960
Explanation:
Given that,
Beginning WIP Inventory balance = 5,600
Completed and transferred out = 50,010
Direct materials = 21,800
Direct labor = 16,400
Overhead = 11,000
Ending Balance = 4,790
Started and completed units cost = $42,050
Therefore,
Cost of completing the units in the beginning WIP inventory:
= Completed and transferred out - Cost of Started and completed units
= $50,010 - $42,050
= $7,960
Answer:
The cost of completing the units in the beginning Work in Process inventory is $7,960
Explanation:
The computation of the beginning Work in Process inventory is shown below:
= Cost of Completed and transferred out - started and completed units cost
= $50,010 - $42,050
= $7,960
All other information which is mentioned in the question is not relevant. Hence, it is not to be considered in the computation part.
Since we have to compute the completing units so we considered the above two things only.
You buy a ten-year bond with an 8% coupon rate at a yield-to-maturity of 6%. (Both rates follow the BEY convention.) You hold the bond for two years, reinvesting coupons in a money market account earning an APR of 4%, compounded monthly. On the day you receive the fourth coupon, you sell the bond. Since market interest rates have increased, you sell it at a yield-to-maturity of 8%. What is your realized compound yield? Report the realized compound yield as an APR with semi-annual compounding.
Answer:
Ans. the realized yield is 0.7749% APR semi-annual compounding
Explanation:
Hello, first we need to find the exact amount paid for this bond, you can find this by finding the coupon that it pays every 6 months and transforming the effective annual rate of the YTM into semi-annual effective rate. All this as follows.
[tex]Coupon=FaceValue*\frac{AnnualCouponRate}{2}=1000*\frac{0.08}{2}=40[/tex]
[tex]YTM(SemiAnnual)=(1+YTM(annual))^{\frac{1}{2} } -1=(1+0.06)^{\frac{1}{2} } -1=0.0296[/tex]
Ok, so far, our semi annual coupon is $40 and our semi-annual YTM is 2.96%. Now. we are ready to find the price paid for the bond.
[tex]Price=\frac{Coupon((1+YTM)^{n-1}-1) }{YTM(1+YTM)^{n-1} } +\frac{(FaceValue+Coupon)}{(1+YTM)^{n} }[/tex]}
[tex]Price=\frac{40((1+0.0296)^{19}-1) }{40(1+0.0296)^{19} } +\frac{(1000+40)}{(1+0.0296)^{20} } =1155.91[/tex]
4 bonds were received and placed in a money market account earning a 4% compounded monthly rate, in order to make things more simple, let´s convert this into a semi-annual effective rate, since the bonds are paid every 6 months. Like this.
[tex]r(semi-annual)=(1+\frac{0.04}{12} )^{6} -1=0.020167[/tex]
Since you received 4 coupons, we have to find the future value of this 4 coupons, that is:
[tex]FV(Coupons)=40(1+0.020167)^{3}+ 40(1+0.020167)^{2}+40(1+0.020167)^{1}+40[/tex]}
[tex]FV(Coupons)=164.91[/tex]
The selling price of the bond, given the new YTM=8% is:
[tex]Price=\frac{40((1+0.03923)^{15}-1) }{40(1+0.03923)^{15} } +\frac{(1000+40)}{(1+0.03923)^{16} } =1009.02[/tex]
Adding both values (sell price of the bond and future values of the coupons) we get the money inflow, what we will call from here FV. The persent value is the money you first paid for the bond.
And then we find the rate of return of all this transactions by using this formula.
[tex]\sqrt[2]{\frac{FV}{PV} }-1=r[/tex][tex]\sqrt[2]{\frac{(1009.02+164.91}{1155.91} }-1=r =0.0077638[/tex]
The return of this invesment is 0.77638% effective annually, but we need it to have a semi-annual compounding, so first, we need to turn this effective annual rate into an effective semi annual rate and them, multiply by 2. this is the math of all this.
[tex]EffectiveSemi-annnual=(1+0.0077638)^{\frac{1}{2} } -1=0.0038744[/tex]
[tex]APR(SemiAnnualComp)=0.0038744*2=0.007749[/tex]
APR(SemiAnnualComp)= 0.7749%
Best of luck.
Kim's Retail had 800 units of inventory on hand at the end of the year. These were recorded at a cost of $ 13 each using the lastminusin, firstminusout (LIFO) method. The current replacement cost is $ 9 per unit. The selling price charged by Kim's Retail for each finished product is $ 15. In order to record the adjusting entry needed under the lowerminusofminuscostminusorminusmarket rule, the Merchandise Inventory will be ________.
Answer:
the Merchandise Inventory will be credited by $3200
Explanation:
given data
Retail inventory = 800 units
recorded cost = $13
replacement cost = $ 9 per unit
selling price charged = $15
to find out
the Merchandise Inventory will be
solution
we know here market is equal to current replacement cost that is $9
and here we can say
market is here less than cost
so inventory will be valued at Market
so we find
down in inventory is = 800 × ( 13 - 9 )
down in inventory is = 3200
so the Merchandise Inventory will be credited by $3200
Compute the total manufacturing cost for a manufacturer with the following information for the month. Raw materials purchased $ 43,200 Direct materials used 58,250 Direct labor used 14,000 Factory supervisor salary 8,800 Salesperson commissions 6,000 Depreciation expense—Factory building 3,700 Depreciation expense—Delivery equipment 3,400 Indirect materials 1,800
Answer:
Cost of good manufactured= $86550
Explanation:
To calculate the cost of manufactured goods we need to use the following formula:
Cost of good manufactured= Beginning work in progress+ direct materials of the period + direct labor + manufactured overhead - ending work in progress
Beginning work in progress= 0
Direct materials = beginning inventory + purchase - ending inventory= 58250
Direct labor= 14000
Manufactured overhead=Factory supervisor salary + Depreciation expense Factory building + Indirect materials= 8800 + 3700 + 1800= 14300
Ending work in progress= 0
Cost of good manufactured= 58250 + 14000 + 14300= $86550
Sheldon has the following year-end account balances: Accounts Receivable, $5,000; Supplies, $12,000; Equipment, $18,000; Accounts Payable, $17,000; Stockholders’ Equity, $43,000. The Cash account balance was not available at year-end. Given the account balances listed, the balance in the Cash account should be A : $95,000. B : $43,000. C : $25,000. D : $61,000.
Final answer:
The missing Cash account balance is calculated using the accounting equation Assets = Liabilities + Shareholders' Equity. Given the account balances, Cash is found to be $25,000.
Explanation:
The student has provided account balances for various items and is seeking to find the correct balance of the Cash account of a fictitious entity. To find the missing Cash account balance, you need to apply the basic accounting equation which states that Assets = Liabilities + Shareholders' Equity.
Here's the step-by-step calculation using the given account balances:
Sum of given Assets (excluding Cash) = Accounts Receivable ($5,000) + Supplies ($12,000) + Equipment ($18,000) = $35,000.
Total Liabilities = Accounts Payable ($17,000).
Shareholders' Equity = $43,000.
Subtracting the sum of Liabilities and Shareholders' Equity from the sum of Assets, we get the balance of the Cash account:
Cash = Total Assets - (Total Liabilities + Shareholders' Equity).
Inserting the given figures:
Cash = (Accounts Receivable + Supplies + Equipment + Cash) - (Accounts Payable + Shareholders' Equity)
Cash = ($35,000 + Cash) - ($17,000 + $43,000)
Cash = $35,000 + Cash - $60,000
Cash = Cash - $25,000
To isolate the value of Cash, we move all terms containing 'Cash' to one side:
Cash - Cash = -$25,000
Therefore, the balance in the Cash account should be $25,000.
Costs Classification a. Annual picnic for plant employees and their families Period costs-administrative expense b. Cost of fabric used by clothing manufacturer Product costs-direct materials cost c. Cost of plastic for a toy manufacturer Product costs-direct materials cost d. Cost of sewing machine needles used by a shirt manufacturer Product costs-factory overhead cost e. Cost of television commercials
Answer:
Instructions are listed below
Explanation:
- Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.
- Direct labor is production or services labor that is assigned to a specific product, cost center, or work order.
- Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.
- Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.
- Product costs are the direct costs involved in producing a product. A manufacturer, for example, would have production costs that include: Direct labor, Raw materials, Manufacturing supplies, Overhead that's directly tied to the production facility such as electricity.
In this exercise:
a. Annual picnic for plant employees and their families: Period costs-administrative expense.
b. Cost of fabric used by clothing manufacturer: Product costs- DM
c. Cost of plastic for a toy manufacturer: Product costs-DM
d. Cost of sewing machine needles used by a shirt manufacturer: Product costs- MOH
e. Cost of television commercials: Period cost - Selling
Which describes the role of automatic stabilizers in the economy? Automatic stabilizers have a similar impact as discretionary fiscal policy but occur automatically, without action by the government. Automatic stabilizers increase aggregate demand during recessions and reduce aggregate demand during expansions. Automatic stabilizer
Answer: Automatic stabilizers have a similar impact as discretionary fiscal policy but occur automatically, without action by the government.
Explanation: Automatic stabilizers refers to those factors which comes into act automatically when the economy faces any kinds of problems. Usually these includes the tax and transfer systems in the economy that affects the demand and supply of the commodities.
These factors comes into force without the direct intervention of the government.
Hence from the above we can conclude that the correct option is first statement.
Automatic stabilizers are mechanisms in the economy that automatically adjust government spending and taxes based on economic conditions. During recessions, they boost aggregate demand, and during expansions, they reduce aggregate demand. They act as shock absorbers, reducing the impact of economic bumps.
Explanation:Role of Automatic Stabilizers in the EconomyAutomatic stabilizers are a part of fiscal policy in the economy. They are built-in mechanisms that automatically adjust government spending and taxes based on the state of the economy, without requiring any specific action from the government. These stabilizers work to stabilize the economy during economic fluctuations. For example, during a recession, automatic stabilizers increase government spending and reduce taxes, thereby boosting aggregate demand. Conversely, during an economic expansion, they decrease government spending and increase taxes, which helps to reduce aggregate demand. Automatic stabilizers act like shock absorbers in a car, reducing the impact of economic bumps, although they don't eliminate them completely.
Learn more about Automatic stabilizers here:https://brainly.com/question/34561785
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Thumb Ink Inc. is a publishing company based in the United States. Its marketing and supply chain activities will add value when:
a. it dispatches new quality regulations to its vendors.
b. it switches to online media because they are widely used.
c. it copies the standards of other publishing companies.
d. it enters into joint ventures.
Answer:
b. it switches to online media because they are widely used.
Marlin Corporation reported pretax book income of $1,009,000. During the current year, the net reserve for warranties increased by $26,800. In addition, book depreciation exceeded tax depreciation by $100,900. Finally, Marlin subtracted a dividends received deduction of $15,900 in computing its current year taxable income. Marlin's current income tax expense or benefit would be:
Answer:
tax benefit
Explanation:
pretax income 1,009,000
permanent difference:
non-taxable dividend (15,900)
book taxable income: 993,100
temporary difference:
book exceeded tax depreicaiton 100,900
warrant liablity 26,800
Government Taxable income 1,120,800
journal entry:
tax expense for the book income
deferred tax benefit for the temporary difference
tax payable for the government taxable income
It is a tax benefit as in some point because, the warranties will be recognize as expense an the depreication will match at the end of the useful life, the company's book taxable income be lower in some point to balance the current difference.
Based on the semi-strong form of the efficient market theory, an investor reacting immediately to a news flash on the television generallyA) can make an abnormal profit.B) is guaranteed to make a reasonable profit.C) is too late to make an exceptional profit.D) will suffer a loss.
Answer:
Option C)
Explanation:
The theory of semi-strong form or structure of efficient market is a sort of holds that security costs alter rapidly to recently accessible data, in this way wiping out the utilization of key or specialized examination to accomplishing a better yield.
Since, under the semi-solid type of the efficient market, all open data is limited in current costs.
Thus its too late for an investor responding immediately to a news flashing on the television to make exceptional gain.