Answer:
B
C
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
Items not included in the calculation off GDP includes:
1. services rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
Only goods produced in a country would be included in the GDP. for this reason, the calculator would not be included in GDP
Marigold Company discovered the following errors made in January 2022.
1. A payment of Salaries and Wages Expense of $900 was debited to Equipment and credited to Cash, both for $900.
2. A collection of $6,500 from a client on account was debited to Cash $650 and credited to Service Revenue $650.
3. The purchase of equipment on account for $510 was debited to Equipment $150 and credited to Accounts Payable $150.
A. Correct the errors by reversing the incorrect entry and preparing the correct entry.
B. Correct the errors without reversing the incorrect entry.
Account Titles Debit Credit
1. Salaries And Wages Expense 700
Equipment 700
2. Cash 1000
Service Revenue 100
Accounts Receivable 100
3. Equipment 335
Accounts Payable 335
Answer:
A. Reversals entry
1. Dr Cash 900
Cr Equipment 900
Correct entry
Dr Wages and salaries 900
Cr Cash 900
B.
2. Dr Cash 5850
Dr Service revenue 650
Cr Account payable $6,500
3. Dr Accounts payable 360
Cr Equipment 360
Explanation:
A. To Correct the errors by reversing the incorrect entry and Preparation of the correct entry.
Reversals entry
1. Dr Cash 900
Cr Equipment 900
Correct entry
Dr Wages and salaries 900
Cr Cash 900
B. To Correct the errors without reversing the incorrect entry
2. Dr Cash 5850
($6500-650)
Dr Service revenue 650
Cr Account payable $6,500
3. Dr Accounts payable 360
(510-150)
Cr Equipment 360
Which of the following statements are true?
a. Markets by definition involve the exchange of money for goods and services.
b. Markets are forums in which parties exchange goods and services at a "price," where the latter can be flexibly construed.
c. Your current economics course, the next election, and the dating scene can all be seen as markets.
Answer:
C
Explanation:
A market is a place where goods and services can be exchanged at a predetermined price. A market does not have to be a physical location. With the advent of technology, a market can exist virtually. Money can be used in the exchange of goods or services or goods can be used for the exchange. In the case where goods are used in the exchange, it is known as trade by barter
At the trough of the business cycle, cyclical unemployment is _____ and the actual unemployment rate _____ the natural rate of unemployment. a. equal to zero; equals b. positive; is less than c. positive; equals d. positive; exceeds e. negative; exceeds
Answer:
d. positive; exceeds
Explanation:
Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;
I. Cyclical unemployment rate (CU).
II. Frictional unemployment rate (FU).
III. Structural unemployment rate (SU).
IV. Actual unemployment rate (AU).
V. Natural Rate of Unemployment (NU).
Cyclical unemployment can be defined as a type of unemployment which is typically related to changes in the business, economy or industry cycle such as recession, governmental policies etc.
Mathematically, cyclical unemployment is given by the formula;
[tex]Cyclical \; unemployment \; rate \; (CU) = Actual \; unemployment \; rate \; (AU) - Natural \; unemployment \; rate \; (NU)[/tex]
>>> [tex]CU = AU – NU[/tex]
The trough of a business cycle refers to the stage where decline (fall) in business activities ends and transit into expansion i.e the business moves from a decline (fall) to an expansion (rise).
Hence, at the trough of the business cycle, cyclical unemployment is positive and the actual unemployment rate exceeds the natural rate of unemployment because there's an increase in the level of output or productivity.
Which of the following is not an objective of a structure model?
A. Designate things of interest in the business domain.
B. Describe characteristics of things of interest in the business domain.
C. Support relational database design.
D. Describe the sequence of activities.
E. All of the choices are objectives of structure models.
Answer:
E.) all of the choices are objectives of structure models
Explanation:
Structural model can be regarded as a model that gives a view about a system whereby emphasizing on the object's structure as well as their relationships, classifiers and their operation and attributes.
The objective of a structure model are;
✓ Designate things of interest in the business domain.
✓Describe characteristics of things of interest in the business domain.
✓Support relational database design.
✓Describe the sequence of activities
Place each item with the appropriate element of the SWOT analysis.
1. Post office closings
2. JPM has superior information technology infrastructure
3. Increasing demand for international packages
4. JPM has an excellent workforce and human resource department
5. Potential global economic recession
6. JPM has increasing labor costs
7. JPM has less fuel-efficient planes
8. Increasing fuel costs due to turmoil in the Middle East
A. Strenghts
B. Opportunities
C. Threats
D. Weakness
Answer:
The correct answers are:
1 - C
2 - A
3 - B
4 - A
5 - C
6 - D
7 - D
8 - C
Explanation:
To begin with, the name of "SWOT" in the field of business and management refers to the famously known analysis whose name comes from the abreviation of words "Strenghts", "Weakness", "Opportunities" and "Threats". Moreover, this analysis consists basically in the process of recognizing every aspect of the company as one of the four major factors according to the analysis and when it comes to refering to the strengths and weaknesses they will be base upon the internal part of the organization that could be control and manage and the opportunities and threats are considered to be external factors so therefore they can not exactly be control and sometimes even managed.
Strenght
JPM has superior information technology infrastructureJPM has an excellent workforce and human resource departmentOpportunities
Increasing demand for international packagesWeaknesses
JPM has less fuel-efficient planesJPM has increasing labor costsThreats
Potential global economic recessionIncreasing fuel costs due to turmoil in the Middle EastPost office closingsWhat is SWOT Analysis?This is a strategy tool, a framework that is mostly used to evaluate a company's competitive position and to develop tailed strategies for its external and internal environment. SWOT is coined from the acronym which of course means Strengths, Weaknesses, Opportunites, and Threats.
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Creative Images Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at July 31, the end of the fiscal year, the following balances were taken from the ledger of Creative Images Co.:
Violet Lozano, Capital $930,000
Violet Lozano, Drawing 12,000
Fees Earned 694,400
Wages Expense 471,000
Rent Expense 69,500
Supplies Expense 11,100
Miscellaneous Expense 14,900
Required: Journalize the two entries required to close the accounts.
Post-Closing Trial Balance
An accountant prepared the following post-closing trial balance:
La Casa Services Co.
Post-Closing Trial Balance
March 31, 20Y6
Debit Balances Credit Balances
Cash 12,700
Accounts Receivable 28,190
Supplies 1,780
Equipment 125,600
Accumulated Depreciation 41,910
Accounts Payable 15,240
Salaries Payable 1,400
Unearned Rent 5,720
Sonya Flynn, Capital 104,000
207,760 128,780
Prepare a corrected post-closing trial balance.
Answer and Explanation:
The journal entries are shown below:
Fees Earned 694,400
To Wages Expense 471,000
To Rent Expense 69,500
To Supplies Expense 11,100
To Miscellaneous Expense 14,900
To Violet Lozano, Capital 127,900
Violet Lozano, Capital 12,000
To Violet Lozano, Drawing 12,000
Now the post trail balance is
Cash 12,700
Accounts Receivable 28,190
Supplies 1,780
Equipment 125,600
Accumulated Depreciation 41,910
Accounts Payable 15,240
Salaries Payable 1,400
Unearned Rent 5,720
Sonya Flynn, Capital 104,000
Totals 168,270 168,270
Refer to the following financial statements for Crosby Corporation:
CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 20X2
Sales $ 3,880,000
Cost of goods sold 2,620,000
Gross profit $ 1,260,000
Selling and administrative expense 656,000
Depreciation expense 300,000
Operating income $ 304,000
Interest expense 87,900
Earnings before taxes $ 216,100
Taxes 155,000
Earnings after taxes $ 61,100
Preferred stock dividends 10,000
Earnings available to common stockholders $ 51,100
Shares outstanding 150,000
Earnings per share $ .34
Statement of Retained Earnings
For the Year Ended December 31, 20X2
Retained earnings, balance, January 1, 20X2 $ 855,400
Add: Earnings available to common stockholders, 20X2 51,100
Deduct: Cash dividends declared and paid in 20X2 153,000
Retained earnings, balance, December 31, 20X2 $ 753,500
Comparative Balance Sheets
For 20X1 and 20X2
Year-End
20X1 Year-End
20X2
Assets
Current assets:
Cash $ 134,000 $ 66,500
Accounts receivable (net) 526,000 531,000
Inventory 649,000 719,000
Prepaid expenses 66,800 39,100
Total current assets $ 1,375,800 $ 1,355,600
Investments (long-term securities) 99,500 82,900
Gross plant and equipment $ 2,520,000 $ 3,000,000
Less: Accumulated depreciation 1,450,000 1,750,000
Net plant and equipment 1,070,000 1,250,000
Total assets $ 2,545,300 $ 2,688,500
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 315,000 $ 558,000
Notes payable 510,000 510,000
Accrued expenses 76,900 58,000
Total current liabilities $ 901,900 $ 1,126,000
Long-term liabilities:
Bonds payable, 20X2 198,000 219,000
Total liabilities $ 1,099,900 $ 1,345,000
Stockholders’ equity:
Preferred stock, $100 par value $ 90,000 $ 90,000
Common stock, $1 par value 150,000 150,000
Capital paid in excess of par 350,000 350,000
Retained earnings 855,400 753,500
Total stockholders’ equity $ 1,445,400 $ 1,343,500
Total liabilities and stockholders’ equity $ 2,545,300 $ 2,688,500
a. Prepare a statement of cash flows for the Crosby Corporation: (Amounts to be deducted should be indicated with parentheses or a minus sign.)
b. Compute the book value per common share for both 20X1 and 20X2 for the Crosby Corporation. (Round your answers to 2 decimals places.)
c. If the market value of a share of common stock is 3.6 times book value for 20X2, what is the firm’s P/E ratio for 20X2? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Answer:
Crosby Corporation
a. Statement of Cash Flows
Operating activities:
Operating Income $304,000
Add Depreciation 300,000
Cash from operations $604,000
Changes in working capital items:
Accounts receivable (net) (5,000)
Inventory (70,000)
Prepaid expenses 27,700
Accounts payable 243,000
Notes payable 0
Accrued expenses (18,900)
Interest expense (87,900)
Taxes (155,000)
Net cash from operations $537,900
Investing Activities:
Purchase of plant (480,000)
Investments
(long-term securities) 16,600
Financing Activities:
Bonds payable 21,000
Preferred stock dividends (10,000)
Common stock dividends (153,000)
Net cash flows ($67,500)
Reconciliation with cash:
Beginning Cash Balance 134,000
Ending Cash Balance $66,500
b. The book value per common share for both 20X1 and 20X2:
= Total stockholders’ equity/Common stock outstanding
20X1 20X2
= $ 1,445,400/150,000 $ 1,343,500/150,000
= $9.636 = $8.957
= $9.64 = $8.96
Market value = $8.96 * 3.6 = $32.256
c. If the market value of a share of common stock is 3.6 times book value for 20X2, P/E ratio =
P/E ratio = Market price/EPS
= $32.256/$ .34
= 94.87 times
Explanation:
a) Data and Calculations:
CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 20X2
Sales $ 3,880,000
Cost of goods sold 2,620,000
Gross profit $ 1,260,000
Selling and administrative expense 656,000
Depreciation expense 300,000 956,000
Operating income $ 304,000
Interest expense 87,900
Earnings before taxes $ 216,100
Taxes 155,000
Earnings after taxes $ 61,100
Preferred stock dividends 10,000
Earnings available to common stockholders $ 51,100
Shares outstanding 150,000
Earnings per share $ .34
Statement of Retained Earnings
For the Year Ended December 31, 20X2
Retained earnings, balance, January 1, 20X2 $ 855,400
Add: Earnings available to common stockholders, 20X2 51,100
Deduct: Cash dividends declared and paid in 20X2 153,000
Retained earnings, balance, December 31, 20X2 $ 753,500
Comparative Balance Sheets
For 20X1 and 20X2
Year-End 20X1 Year-End 20X2
Assets
Current assets:
Cash $ 134,000 $ 66,500
Accounts receivable (net) 526,000 531,000
Inventory 649,000 719,000
Prepaid expenses 66,800 39,100
Total current assets $ 1,375,800 $ 1,355,600
Investments (long-term securities) 99,500 82,900
Gross plant and equipment $ 2,520,000 $ 3,000,000
Less: Accumulated depreciation 1,450,000 1,750,000
Net plant and equipment 1,070,000 1,250,000
Total assets $ 2,545,300 $ 2,688,500
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 315,000 $ 558,000
Notes payable 510,000 510,000
Accrued expenses 76,900 58,000
Total current liabilities $ 901,900 $ 1,126,000
Long-term liabilities:
Bonds payable, 20X2 198,000 219,000
Total liabilities $ 1,099,900 $ 1,345,000
Stockholders’ equity:
Preferred stock, $100 par value $ 90,000 $ 90,000
Common stock, $1 par value 150,000 150,000
Capital paid in excess of par 350,000 350,000
Retained earnings 855,400 753,500
Total stockholders’ equity $ 1,445,400 $ 1,343,500
Total liabilities and
stockholders’ equity $ 2,545,300 $ 2,688,500
Changes in working capital items:
20X1 20X2 Changes
Accounts receivable (net) 526,000 531,000 5,000
Inventory 649,000 719,000 70,000
Prepaid expenses 66,800 39,100 -27,700
Accounts payable $ 315,000 $ 558,000 243,000
Notes payable 510,000 510,000 0
Accrued expenses 76,900 58,000 -18,900
Bonds payable, 20X2 198,000 219,000 21,000
Investments (long-term securities) 99,500 82,900 16,600
Plant and equipment 252,000 300,000 -48,000
The plaintiff and the defendant entered into a three-year contract in which the defendant would be the sole supplier of steel parts that the plaintiff used in its products. A dispute arose after the defendant sought to surcharge the parts sold to reflect increased costs. The plaintiff filed a lawsuit for breach of contract, and the jury returned a verdict in favor of the defendant, finding on a special verdict that there had been a valid modification to the contract, based solely on e-mails between the parties. Is this evidence enough to support a reformation of the contract?
Answer:
Yes
Explanation:
Emails show an agreement between the defendant and the plaintiff and as long as they are proved to be actually between the parties, it is considered evidence.
We must note that the price of the material is one of the most significant elements of any selling or manufacturing agreement and there must be a written agreement on the terms of increase in price to accommodate any changes in the price of the material by both the parties in the agreement.
Is email considered a legal document?As the court found that there has been a modification of the terms of the contract only on the basis of the written e-mails, in my opinion, it is not a valid argument.
Contract Modification Law?Any changes in the terms of the contracts must be included in the new or modified agreement. Thus, in my opinion, it is not a valid reason to form a modified contract unless a new contract is made including the new terms and conditions.
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cyber security systems had sales of 3,700 units at $75 per unit last year. the marketing projects of a 10 percent increase in unit volume sales this year a 40 percent increase returned merchandise will represent 8 percent of total sales what is your bet dollar sales projection for this year?
Answer:
$393,162
Explanation:
Units sold last year were 3,700
the projection for this year is an increase of 10% in volume.
projected units sales for this year will be
=110% of 3,700
=1.1 x 3,700
=4,070 units
The selling price last year was $75.
projected price this year is an increase by 40%
price for this year will be 140% of $75
=140/100 x $75
=1.4 x $75
=$105
Projected sales in dollar will be sales volume x selling price
= 4070units x $105
=$427,350
Purchase return = 8% of projected sales in dollars
=8/100 x $427,350
=34,188
Net projected sales
= $427,350 - $34,188
=$393,162
Nittany Company borrowed $60,000 from Lion Corporation on September 1, 2018 signing a 9-month payable with an interest rate of 3%. Nittany Co operates on a calendar year basis and is preparing its year-end financial statements In preparing its Income Statement for 2018, what amount of Interest Expense should Nittany Co. report from this note payable
Answer:
the interest expense that should be recorded in the income statement is $600
Explanation:
The computation of the interest expense is shown below:
= Borrowed amount × rate of interest × given months
= $60,000 × 0.03 ÷ 12 × 4 months
= $600
Hence, the interest expense that should be recorded in the income statement is $600
Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here:
Estimated Value Actual Value
Manufacturing overhead cost $732,000 $842,000
Direct labor cost $366,000 $377,000
Direct labor hours 14,640 hours 16,600 hours
Machine hours 18,300 hours 17,500 hours
Required:
Based on the company’s current allocation base (direct labor hours), compute the following:
a. Predetermined overhead rate.
b. Applied manufacturing overhead.
c. Over- or underapplied manufacturing overhead.
Answer:
Results are below.
Explanation:
Giving the following information:
Estimated Value Actual Value
Manufacturing overhead cost $732,000 $842,000
Direct labor hours 14,640 hours 16,600 hours
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 732,000 / 14,640
Predetermined manufacturing overhead rate= $50 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 50*16,600
Allocated MOH= $830,000
Finally, the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 842,000 - 830,000
Underapplied overhead= $12,000
The President is considering the following policies, each of which is aimed at reducing violent crime byreducing the use of guns. In your report, illustrate each of these proposed policies in a supply-and-demanddiagram of the gun market, and explain whether the policy will have the desired effect on the gun market.
1. a tax on gun buyers
2. a tax on gun sellers
3. a price floor on guns
4. a tax on ammunition
Answer:
Option 1
Explanation:
The best method to reduce the consumption of any goods or service is to increase the price of the product or services to such an extent that buyers themselves prefer not to buy such good or service.
Hence, the government must put tax on gun buyers. The more tax is implied, the more the demand for guns will reduce as the buyers will not prefer to buy.
Hence, option 1 is correct
On an automotive assembly line, Naif Marrot checks to make sure that recently painted car bodies are free of paint bubbles. Other people are assigned the task of seeing that other parts of the car are built to specifications. The task of building an automobile has been subdivided into a series of subtasks. The concepts of _____
have been employed in this situation.
(A) decentralization and unity of command
(B) product design and structured manufacturing
(C) functionalism and specialization
(D) centralization and product departmentalization
(E) specialization and division of labor
Tom Johnson Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost for A is $12.00, and forB, $10.00. The revenue generated by each unit is $20.00.a) If the expected volume is 8,500 units, _______(proposal A or proposal
b) with a total profit = $______ should be chosen(enter your response as a whole number).
Answer:
For 8,500 units, proposal A provides a higher income ($3,000).
Explanation:
Giving the following information:
Proposal A:
Fixed cost= $50,000
Unitary cost= $12
Proposal B:
Fixed cost= $70,000
Unitary cost= $10
We need to choose the proposal with the higher income if 8,500 units are produced.
Proposal A:
Net income= 8,500*(20 - 12) - 50,000
Net income= $18,000
Proposal B:
Net income= 8,500*(20 - 10) - 70,000
Net income= $15,000
For 8,500 units, proposal A provides a higher income ($3,000).
Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,580, and a new model, the Majestic, which sells for $1,270. The production cost computed per unit under traditional costing for each model in 2020 was as follows.
Traditional Costing Royale Majestic
Direct materials $650 $420
Direct labor ($20 per hour) 120 100
Manufacturing overhead ($42 per DLH) 252 210
Total per unit cost $1,022 $730
In 2017, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $42 per direct labor hour was determined by dividing the total expected manufacturing overhead of $8,449,220 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $458 ($1,480 - $1,022) and Majestic $540 ($1,270 - $730). Because of this difference, management is considering phasing out the Royale model and increasing the production of the Majestic model. Before finalizing its decision, management asks Schultz's controller to prepare an analysis using activity-based costing (ABC). The controller accumulates the following information about overhead for the year ended December 31, 2017.
Activity Cost Pools Cost Drivers Estimated Overhead Expected Use of Cost Drivers Activity-Based Overhead Rate
Purchasing Number of orders $1,261,700 40,700 $31/order
Machine setups Number of setups 874,120 16,810 $52/setup
Machining Machine hours 5,440,500 120,900 $45/hour
Quality control Number of inspections 872,900 30,100 $29/inspection
The cost drivers used for each product were:
Cost Drivers Royale Majestic Total
Purchase orders 17,600 23,100 40,700
Machine setups 14,510 2,300 16,810
Machine hours 75,300 45,600 120,900
Inspections 11,900 18,200 30,100
Assign the total 2017 manufacturing overhead costs to the two products using activity-based costing (ABC) and determine the overhead cost per unit. (Round cost per unit to 2 decimal places, e.g. 12.25.)
Required:
Calculate cost per unit of each model using ABC costing.
Answer:
Schultz Electronics
Royale Majestic
Cost per unit cost $971.35 $841.55
Explanation:
a) Data and Calculations:
Information about overhead for the year ended December 31, 2017.
Activity Cost Cost Drivers Estimated Expected Use Activity-Based
Pools Overhead of Cost Drivers O/H Rate
Purchasing No. of orders $1,261,700 40,700 $31/order
Machine
setups No. of setups 874,120 16,810 $52/setup
Machining Machine hours 5,440,500 120,900 $45/hour
Quality Number of
control inspections 872,900 30,100 $29/inspection
Total overhead costs $8,449,220
The cost drivers used for each product were:
Cost Drivers Royale Majestic Total
Purchase orders 17,600 23,100 40,700
Machine setups 14,510 2,300 16,810
Machine hours 75,300 45,600 120,900
Inspections 11,900 18,200 30,100
Allocation of overhead costs:
Cost Drivers Royale Majestic Total
Purchasing $545,600 (17,600*$31) $716,100 (23,100 *$31) $1,261,700
Machine setup 754,520 (14,510*$52) 119,600 (2,300*$52) 874,120
Machining 3,388,500 (75,300*$45) 2,052,000 (45,600*$45) 5,440,500
Quality Control 345,100 (11,900*$29) 527,800 (18,200*$29) 872,900
Total $5,033,720 $3,415,500 $8,449,220
Quantity 25,000 10,000
Overhead per
unit $201.35 $341.55
Cost per unit of each model, using ABC Costing Technique:
Royale Majestic
Direct materials $650 $420
Direct labor ($20 per hour) 120 100
Manufacturing overhead 201.35 341.55
($42 per DLH)
Total per unit cost $971.35 $841.55
Actual manufacturing overhead costs are those amounts of overhead costs that are incurred by a firm during production processes.
What is the cost per unit of each model using ABC costing?
a) Calculations:-
The cost drivers used for each product were:-Cost Drivers Royale Majestic Total
Purchase orders 17,600 23,100 40,700
Machine setups 14,510 2,300 16,810
Machine hours 75,300 45,600 120,900
Inspections 11,900 18,200 30,100
Allocation of overhead costs:-Cost Drivers Royale Majestic
Purchasing $545,600 (17,600*$31) $716,100 (23,100 *$31) ($1,261,700)
Machine setup 754,520 (14,510*$52) 119,600 (2,300*$52) (874,120)
Machining 3,388,500 (75,300*$45) 2,052,000(45,600*$45) (5,440,500)
Quality Control 345,100 (11,900*$29) 527,800 (18,200*$29) (872,900)
Total $5,033,720 $3,415,500 ($8,449,220)
Quantity 25,000 10,000
Overhead per unit $201.35 $341.55
Cost per unit of each model, using ABC Costing Technique:-Royale Majestic
Direct materials $650 $420
Direct labor ($20 per hour) 120 100
Manufacturing overhead 201.35 341.55
($42 per DLH)
Total per unit cost $971.35 $841.55
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Robert treats coffee and creamer as perfect complements and has very specific requirements for the ratio of creamer to coffee. He will drink coffee only if he has exactly 5.00 packets of creamer for every cup of coffee. Coffee is priced at $3.00 per cup and creamer at $0.25 per packet. In the questions below, give your answers to two decimal places.
a. Suppose that Robert has $39.00 to spend on coffee and creamer. His optimal consumption bundle contains _______cups of coffee and _________
b. Now, suppose that the price of creamer rises to $0.50 per packet. What is the substitution effect of this price change?
Answer:
a. Robert's optimal consumption bundle contains 9.18 cups of coffee and 45.88 packets of creamer.
b. Zero packets of creamer is the substitution effect.
Explanation:
a. Suppose that Robert has $39.00 to spend on coffee and creamer. His optimal consumption bundle contains _______cups of coffee and _________
The consumption ratio can be stated as follows:
5 Creamer = 1 cup of coffee
Budget line has an equation can also be given as follows:
B = (Pm * Qm) + (Pf * Qf) ...................... (1)
Where;
B = Budget = The amount Robert has to spend on coffee and creamer = $39.00
Pm = Price of creamer = $0.25
Qm = Quantity of creamer = ?
Pf = Price of coffee = $3.00
Qf = Quantity of coffee = ?
39 = (0.25 * Qm) + (3 * Qf)
39 = 0.25Qm + 3Qf
Since "5 Creamer = 1 cup of coffee". This also implies thal 1 creamer = 1 / 5 cup of coffee. Therefore, we have;
39 = 0.25Qm + (3 * 1/5 * Qm)
39 = 0.25Qm + (3/5)Qm
39 = 0.25Qm + 0.60Qm
39 = 0.85Qm
Qm = 39 / 0.85
Qm = 45.88
Qf = 45 / 5 = 9.18
Therefore, Robert's optimal consumption bundle contains 9.18 cups of coffee and 45.88 packets of creamer.
b. Now, suppose that the price of creamer rises to $0.50 per packet. What is the substitution effect of this price change?
Since Robert treats coffee and creamer as perfect complements, this implies that there there is nothing like substitution effect under this condition.
Therefore, zero packets of creamer is the substitution effect.
Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $800 million on January 1, 2021. The bonds sold for $739,814,813 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 12%. Interest is paid semiannually on June 30 and December 31. Required: 1. to 3. Prepare the journal entries to record their issuance by Federal on January 1, 2021, interest on June 30, 2021 (at the effective rate) and interest on December 31, 2021 (at the effective rate). 4. At what amount will Federal report the bonds among its liabilities in the December 31, 2021, balance sheet
Answer:
calcule estúpido malparido
Suppose that an appraiser has come to the following conclusions in evaluating the subject property. Due to the dramatic shift in the perceived safety of the neighborhood, values of any residential properties in the area of the subject property have fallen by $10,000, on average. Due to the subject property's age, physical deterioration to the building accounts for an estimate of S50,000 in lost value. An evaluation of the floor plan reveals that it is quite obsolete relative to current homebuyer preferences. This has a detrimental effect on the value of the property that is estimated to be approximately $15,000. Based on your understanding of adjustments related to accrued depreciation, which of the following pertains to the adjustment for external obsolescence?
A. $10,000
B. $15,000
C. $50,000
D. $75,000
Answer:
A
Explanation:
Obsolescence is the loss in value of a property.
there are different types of obsolescence
They include :
1. External obsolescence is the loss in value of a property as a result of factors external to the property. Such factors include economic, social or environmental.
Loss in value due to safety concerns qualifies as external obsolescence
2. Physical obsolescence
3. Functional obsolescence
Sutherland Company listed the following data for 2019:
Budgoted factory overhead $2,100,000
Budgeted direct labor hours 89,000
Budgeted machine hours 51,000
Actual factory overhead 2,201,000
Actual direct labor hours 83,700
Actual machine hours 48,900
If overhead is applied based on machine hours, the overapplied/underapplied overhead is:__________ (round calculations to 2 significant digits)
a) $176,358 underapplied.
b) $176,358 overapplied.
c) $187,298 underapplied
d) $187.298 overapplied.
Answer:
c) $187,298 underapplied
Explanation:
The computation of the overhead or underapplied overhead is shown below:
But before that the predetermined overhead, applied manufacturing overhead need to be computed
Predetermine overhead rate is
= Estimated factory overhead ÷ estimated machine hours
= $2,100,000 ÷ 51,000
= $41.18
Now the applied overhead is
= Actual machine hours × predetermined overhead rate
= 48,900 × $41.18
= $2,013,702
As, applied overhead is less than actual overhead
So, the Underapplied overhead is
= $2,201,000 - $2,013,702
= $187,298
The wholesale cost of a video game is $459.45. The original markup was 51% based on selling price. Find the final sale price after the following series of price changes: a markup of 24%, a markup of 17%, and a markdown of 10%.
Answer:
234.3399
Explanation:
The wholesale cost of a video game is $459.45. The original markup was 51% based on selling price. The final sale price after the following series of price changes would be a markup of 24%. Thus option (a) is correct.
What is a cost?The cost is the expenditure or spending required or incurred to create and sell products and services, or to acquire assets.
When a product is sold or consumed, a cost is charged to expense. In the case of a buying of an asset, the charge to expense could be significantly deferred.
The cost concept underlies the transition of assets from the balance sheet to expenses in the income statement.
The cost can be a fixed cost like the lease of a building which will not vary every month or can be a variable cost like the telephone cost which can vary every month.
Learn more about the cost here:
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Playtime Industries manufactures custom-designed playground equipment for schools and city parks. Playtime expected to incur $664,000 of manufacturing overhead cost, 41,500 of direct labor hours, and $830,000 of direct labor cost during the year (the cost of direct labor is $20 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During May, Playtime completed Job 301. The job used 155 direct labor hours and required $12,700 of direct materials. The City of Westlake has contracted to purchase the playground equipment at a price of 20% over manufacturing cost.
Required SHOW WORK
1. Calculate the manufacturing cost of Job 301. (hint: remember you have to consider each product cost: direct materials, direct labor and manufacturing overhead)
2. How much will the City of Westlake pay for this playground equipment?
Playtime Industries manufactures custom-designed playground equipment for schools and city parks. Playtime expected to incur $664,000 of manufacturing overhead cost, 41,500 of direct labor hours, and $830,000 of direct labor cost during the year (the cost of direct labor is $20 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During May, Playtime completed Job 301. The job used 155 direct labor hours and required $12,700 of direct materials. The City of Westlake has contracted to purchase the playground equipment at a price of 20% over manufacturing cost.
Required SHOW WORK
1. Calculate the manufacturing cost of Job 301. (hint: remember you have to consider each product cost: direct materials, direct labor and manufacturing overhead)
2. How much will the City of Westlake pay for this playground equipment?
Answer and Explanation:
The computation is shown below:
1 Calculation of predetermined overhead rate is
Predetermined overhead rate= Estimated Overhead Cost ÷ Direct labor hours
= $664,000 ÷ 41,500
= $16 per direct labor hour.
Now
Calculation of Total Job Cost:-
Direct Materials $12,700
Direct Labor $3,100
(155 direct labor hours × $20 per hour)
Manufacturing Overhead $2,480
(155 direct labor hours × $16 per hour)
Total Job Cost $18,280
2- Calculation of contracted billing price:-
Total manufacturing cost of Job 301 $18,280
Add: Markup on manufacturing cost 20% of $18,280 $3,656
Billing price $21,936
Can someone help me with this ?
Answer:
come over
Explanation:
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The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2018, the allowance account had a credit balance of $96,950. Credit sales for 2018 totaled $3,150,000 and the year-end accounts receivable balance was $537,500. During this year, $94,250 in receivables were determined to be uncollectible. Manda Panda anticipates that 3% of all credit sales will ultimately become uncollectible. The fiscal year ends on December 31.
Required:
a. Does this situation describe a loss contingency? Explain.
b. What is the bad debt expense that Manda Panda should report in its 2018 income statement?
c. Prepare the appropriate journal entry to record the contingency.
d. What is the net realizable value (book value) Manda Panda should report in its 2018 balance sheet?
Answer:
a. Does this situation describe a loss contingency? Explain.
Allowance for doubtful accounts are a loss contingency since they mar or may not happen, but the company has to account for them.
b. What is the bad debt expense that Manda Panda should report in its 2018 income statement?
total bad debt expense = total sales x 3% = $3,150,000 x 3% = $94,500
c. Prepare the appropriate journal entry to record the contingency.
Dr Bad debt expense 94,500
Cr Allowance for doubtful accounts 94,500
d. What is the net realizable value (book value) Manda Panda should report in its 2018 balance sheet?
ending balance of accounts receivable = $537,500 - $94,500 = $443,000
Marketers are more likely to recognize a problem as unethical when
Answer:
The explanation of the discussion has been characterized below.
Explanation:
The higher the degree of the contract between management peers that perhaps the intervention would be hazardous, the further presumably it is just that advertising agencies will understand the issue when unethical. Research has shown us that the strong ethical social structure and that of other work colleagues reduces the assertion of fraudulent activities.Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 20Y2, Inspirational has assets of $815,910 and liabilities of $257,830. Using the accounting equation and considering each case independently, determine the following amounts:a. Stockholders' equity as of October 31, 20Y2. $b. Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $128,910 and liabilities increased by $77,510 during 20Y3. $c. Stockholders' equity as of October 31, 20Y3, assuming that assets decreased by $64,460 and liabilities increased by $22,850 during 20Y3. $d. Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $107,700 and liabilities decreased by $40,800 during 20Y3. $e. Net income (or net loss) during 20Y3, assuming that as of October 31, 20Y3, assets were $1,028,050, liabilities were $167,260, and no additional common stock was issued or dividends paid. $
Answer:
Inspirational Inc.
a. Stockholders' equity as of October 31, 20Y2
= $558,080
b. Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $128,910 and liabilities increased by $77,510 during 20Y3.
= $609,480
c. Stockholders' equity as of October 31, 20Y3, assuming that assets decreased by $64,460 and liabilities increased by $22,850 during 20Y3.
=$470,770
d. Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $107,700 and liabilities decreased by $40,800 during 20Y3.
= $706,580
e. Net income (or net loss) during 20Y3, assuming that as of October 31, 20Y3, assets were $1,028,050, liabilities were $167,260, and no additional common stock was issued or dividends paid.
= $302,710
Explanation:
1) Data and Calculations:
a) Assets of $815,910
Liabilities of $257,830
Stockholders' equity = $558,080 ($815,910 - $257,830)
b) Assets of $944,820 ($815,910 + $128,910)
Liabilities of $335,340 ($257,830 + $77,510)
Stockholders' equity = $609,480 ($944,820 - $335,340)
c) Assets of $751,450 ($815,910 - $64,460)
Liabilities of $280,680 ($257,830 + $22,850)
Stockholders' equity = $470,770 ($751,450 - $280,680)
d) Assets of $923,610 ($815,910 + $107,700)
Liabilities of $217,030 ($257,830 -$40,800)
Stockholders' equity = $706,580 ($923,610 - $217,030)
e) Assets of $1,028,050
Liabilities of $167,260
Stockholders' equity = $558,080
Net Income = $302,710 (Assets - (Liabilities + Equity))
f) These different transactions and changes show that the accounting equation is always in balance. This means that the assets of Inspirational Inc. will always be equal to the liabilities + equity. The reason for this situation is that assets are funded by either liabilities or equity or a combination of these two financing sources.
Goodwill arises when one firm acquires the net assets of another firm and pays more for those net assets than their current fair value. Suppose that Target Co. had operating income of $59,000 and net assets with a fair value of $162,000. Takeover Co. pays $308,000 for Target Co.'s net assets and business activities.
How much goodwill will result from this transaction?
Calculate the ROI for Target Co. based on its present operating income and the fair value of its net assets. (Round your percentage answer to 2 decimal places.)
Calculate the ROI that Takeover Co. will earn if the operating income of the acquired net assets continues to be $64,900. (Round your percentage answer to 2 decimal places.)
Takeover Co. is willing to pay $93,000 more than fair value for the net assets acquired from Target Co. as it represents goodwill and the expected superior earnings in future years. True or False?
Answer:
Takeover Co.
a) Goodwill = $146,000
b) Target's ROI = 36.42%
c) Takeover's ROI = 21.07%
d) False
Explanation:
a) Data and Calculations:
Target Co's net assets fair value = $162,000
Payment by Takeover Co = $308,000
Goodwill = $146,000 ($308,000 - $162,000)
b) Target's ROI:
Operating income = $59,000
Net assets = $162,000
ROI = ($59,000/$162,000) * 100
= 36.42%
c) Takeover Co's ROI:
Operating income = $64,900
Net assets = $308,000
ROI = $64,900/$308,000 * 100
= 21.07%
d) Takeover Co:
Goodwill = $93,000
Purchase price of Target = $255,000 ($93,000 + $162,000)
2. Marginal analysis is sometimes called "thinking on the
Answer:
fly.
Explanation:
Thinking on the fly is the act of analyzing something quickly and sometimes without all the facts.
Outline:
Introduction
Sample Case and SWOT
Practice Case Analysis SWOT
Introduction
SWOT is an acronym which stands for Strengths, Weaknesses, Opportunities, and Threats. Companies conduct a SWOT analysis as a critical strategic step in developing a Marketing Plan. SWOT analysis may be completed for an individual, a product or company.
Why This Matters: A SWOT Analysis helps individuals and businesses discover their own unique qualities and gain insight on what differentiates them from competitors.
Your Task: In addition to your assigned reading on SWOT Analysis, review the following Sample Case and SWOT Analysis . As you review all the materials, consider how each of the SWOT categories relate. After reviewing the Sample Case and SWOT Analysis, review the Practice Case as preparation for generating your own SWOT Analysis. Respond to each category (Strength, Weakness, Opportunity, Threat) with three to five bullet points that outline potential impacts on the success of your business.
Answer:
Strengths:
Nestle has a brand image and is top company in food industry
Strong brand recognition among customers give nestle competitive advantage.
Nestle never compromises on quality of the product.
Healthy products are strong factor for Nestle's brand image.
Multiple product choices available to customers.
Weakness:
Price fluctuation due to inflation.
Change in consumer behavior may impact sales.
High prices due to better quality products.
Opportunity:
Nestle may go for diversified products and introduce healthy beverages for its customers.
The company can introduce home based online shopping through their website.
The company can launch new products with free samples.
Threats:
New entrants in the food industry
Low price competitors
Gorilla marketing by its competitors.
Government pressure on compliance standards.
Explanation:
SWOT analysis is an important tool for business managers to analyze the company's position among its competitors. Nestle has strong brand image among its customers and customers buys the product with the brand name. Maintaining the brand image among its competitors is a huge responsibility for Nestle as a single mistake could lead to a downfall for the entire company.
The bookkeeper for Jeff Sobol Equipment Repair made a number of errors in journalizing and posting, as described below.
a. A credit posting of $485 to Accounts Receivable was omitted.
b. A debit posting of $730 for Prepaid Insurance was debited to Insurance Expense.
c. A collection from a customer of $130 in payment of its account owed was journalized and posted as a debit to Cash $130 and a credit to Service Revenue $130.
4. A credit posting of $415 to Property Taxes Payable was made twice.
5. A cash purchase of supplies for $250 was journalized and posted as a debit to Supplies $25 and a credit to Cash $25.
6. A debit of $475 to Advertising Expense was posted as $457.
Required:
For each error:
a. Indicate whether the trial balance will balance.
b. If the trial balance will not balance, indicate the amount of the difference.
c. Indicate the trial balance column that will have the larger total.
Answer:
Jeff Sobol Equipment Repair
a. Indication of whether the trial balance will balance with each error:
1. No.
2. Yes.
3. Yes
4. No.
5. No.
6.No.
b. The amount of the difference:
1. $485
2. $0
3. $0
4. $415
5. $225
6. $18
c. Indication of the trial balance column that have the larger total:
1. Debit
2. N/A
3. N/A
4. Credit
5. Debit
6. Credit
Explanation:
a) Data and Calculations:
1. Debit side greater by $485
2. No effect on the trial balance.
3. No effect on the trial balance
4. Credit side greater by $415
5. Debit side greater by $225 ($250 -$25)
6. Credit side greater by $18 ($475 -457)
b) The trial balance shows that the double entry system has been correctly maintained. It does not reveal some posting errors, e.g. errors of transposition, omission, commission, and compensatory errors. It only reveals clerical (human) errors and errors of principle (wrong application of accounting principles).
The Acmeville Metropolitan Bus Service currently charges $0.67 for an all-day ticket, and has an average of 513 riders a day. The bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. They must therefore find a way to increase revenues. The bus company is considering increasing the ticket price to $ 0.78. The marketing department's studies indicate this price increase would reduce usage to 249 riders per day. Calculate the absolute value of the price elasticity of demand for bus tickets using the simple percentage change method.
A. Demand is inelastic, so decreasing ticket prices w ncreaSe revenue.
B. Demand is inelastic, so increasing ticket prices will increase revenue.
C. Demand is elastic, so increasing ticket prices will increase revenue.
D. Demand is elastic, so decreasing ticket prices will increase revenue.
Answer:
Explanation:
Price elasticity = Percentage change in demand/Percentage change in Price
Percentage change in Q= 513-236=277/513x100 = 53.99%
Percentage change in P= 0.89-0.67= 0.22/0.67x100 = 32.83%
Ed=53.99/32.83 = 1.6
Since the price elasticity of demand is elastic so the company should decrease the price to increase revenu