Answer:
Bergamo Bay's Computer System
a) Revised Trial Balance on December 31, 2017:
Debit Credit
Cash $32,000
Accounts receivable 44,000
Raw materials inventory 13,600
Work in process inventory 47,400
Finished goods inventory 9,000
Prepaid rent 3,000
Accounts payable $9,900
Notes payable 12,900
Common stock 30,000
Retained earnings 82,000
Sales 182,200
Cost of goods sold 102,000
Factory overhead 25,000
Operating expenses 41,000
Totals $317,000 $317,000
b) Balance Sheet as of December 31, 2017:
Assets:
Cash $32,000
Accounts receivable 44,000
Raw materials inventory 13,600
Work in process inventory 47,400
Finished goods inventory 9,000
Prepaid rent 3,000
$149,000
Accounts payable $9,900
Notes payable 12,900
Common stock 30,000
Retained earnings 96,200
$149,000
c) Income Statement for 2017:
Sales $182,200
less Cost of Goods Sold 102,000
less Factory Overhead 25,000 127,000
Gross Profit 55,200
Less Operating Expenses 41,000
Net Income 14,200
Explanation:
a) Prepared Trial Balance on December 31, 2017:
Debit Credit
Cash $66,000
Accounts receivable 44,000
Raw materials inventory 27,000
Work in process inventory 0
Finished goods inventory 9,000
Prepaid rent 3,000
Accounts payable $9,900
Notes payable 12,900
Common stock 30,000
Retained earnings 82,000
Sales 182,200
Cost of goods sold 102,000
Factory overhead 25,000
Operating expenses 41,000
Totals $317,000 $317,000
b) Raw Materials Inventory
As per Trial Balance $27,000
less Job 402 materials (4,300)
less Job 404 materials (7,300)
less indirect materials (1,800)
Adjusted Raw Materials Inventory $13,600
c) Work in Process:
As per Trial Balance $0
add Job 402 materials 4,300
add Job 404 materials 7,300
add indirect materials 1,800
add Job 402 labor 7,000
add Job 404 labor 5,000
add indirect labor 4,000
Work in Process Overhead 18,000
Adjusted Work in Process $47,400
d) Cash Balance:
As per Trial Balance $66,000
Work in Process Labor (16,000)
Work in Process Overhead (18,000)
Adjusted Cash balance $32,000
e) Retained Earnings
Opening Balance $82,000
add Net Income 14,200
Ending Balance $96,200
Company A sold merchandise with a list price of $4,200 and costing $2,300 on account to Company B.
The sale was subject to the following terms: FOB destination, 2/10, n/30.
Company A prepays the freight costs of $85 (debit Delivery Expense for the freight costs).
Prior to payment for the goods, Company A issues a credit memo for $750 to Company B for merchandise costing $425 that is returned.
Company A received payment from Company B within the discount period.
Company A uses a perpetual inventory system.
Which of the following statements is true about the amount Company A receives from Company B for the sale?
a. None of these answers are correct.
b. The invoice amount is greater than $3,500 and less than $3,600.
c. The invoice amount is greater than $3,400 and less than $3,500.
d. The invoice amount is greater than $3,300 and less than $3,400.
e. The invoice amount is greater than $2,700 and less than $2,800.
f. The invoice amount is greater than $3,100 and less than $3,200.
g. The invoice amount is greater than $2,900 and less than $3,000.
h. The invoice amount is greater than $3,000 and less than $3,100.
i. The invoice amount is greater than $3,200 and less than $3,300.
j. The invoice amount is greater than $2,800 and less than $2,900.
Answer: d. The invoice amount is greater than $3,300 and less than $3,400.
Explanation:
The terms of the sale are FOB destination, 2/10, n/30. This means that company B will get a 2% discount if they pay in 10 days, if not, they will have to pay in 30 days.
The goods were sold at a list price of $4,200.
Company B returned $750 according to the Credit memo from Company A.
This reduces the transaction amount by that credit memo,
= 4,200 - 750
= $3,450
It is stated that Company B paid within the discount period which was 10 days so they get the discount for a total balance of,
= 3,450 * (1 - 2%)
= $3,381
The answer therefore is option D.
The following information pertains to Xavier Corp. and its divisions for the year ended 12/31/20: Sales to unaffiliated customers $4,000,000 Intersegment sales of products similar to those sold to unaffiliated customers 900,000 Interest earned on loans to other operating segments 60,000 Xavier and all of its divisions are engaged solely in manufacturing operations. Xavier has a reportable segment if that segment's revenue exceeds a. $490,000 b. $406,000 c. $400,000 d. $496,000
Answer:
a. $490,000
Explanation:
Segment revenue will be recorded it if exceeds the limit of 10% of total sales .In this question sales made to unaffiliated customers and intersegment saels is the total sales value.
Sales to unaffiliated customers = $4,000,000
Intersegment Sales similar to Sold to unaffiliated customers = $900,000
Total Sales = $4,000,000 + $900,000 = $4,900,000
Segment revenue will be recorded if total sales increases $490.000 ($4,900,000 X 10%)
Machinery purchased for $66,000 by Metlock Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,400 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $4,950 at the end of that time. Assume straight-line depreciation.
Required:
a. Prepare the entry to correct the prior year's depreciation, if necessary.
b. Prepare the entry to record depreciation for 2021.
Answer:
a. Prepare the entry to correct the prior year's depreciation, if necessary.
When an asset's useful life is extended, the extension is done prospectively, not retrospectively. This means that past depreciation does not need to be adjusted.b. Prepare the entry to record depreciation for 2021.
Dr Depreciation expense 4,510 Cr Accumulated depreciation - machinery 4,510Explanation:
purchase cost of machinery $66,000
estimated useful life 8 years
estimated salvage value $4,400
depreciation has been recorded using the previous basis during the first 5 years, but now the estimated useful life was extended to 10 years and the salvage value = $4,950
depreciation expense per year (during first 5 years) = ($66,000 - $4,400) / 8 = $7,700 per year
accumulated depreciation up to year 5 = $7,700 x 5 = $38,500
the carrying value of the asset on January 1, 2021 = $66,000 - $38,500 = $27,500
the new depreciation expense per year = ($27,500 - $4,950) / 5 = $4,510
depreciation expense for 2021:
Dr Depreciation expense 4,510
Cr Accumulated depreciation - machinery 4,510
Rene is the manager at an event and catering company. He has just received a request for proposal (RFP) for managing the City Arts Festival. The organization that managed the event and all event volunteers in past years has raised its rates considerably and the city can no longer afford to hire them. Rene would like to submit a proposal to manage the City Arts Festival. The proposal will be quite lengthy because the event draws over 200,000 people, spans three days, and has a large budget. Which type of proposal should Rene submit in this situation
Answer:
The correct answer to the following question will be "Formal proposal".
Explanation:
Usually, formal proposals become prepared for bigger projects, here as in the case the expenditure demand is high, there is a huge amount of participants as well as the plan will be extensive, so formal proposals have become an easy option because informal proposals are made for projects too.Grant applications should never be posted here since they are usually sent to a grant seeking agency or entity. That is just not Rene 's goal in this.A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $300 per day. Assume that the additional vehicle would be capable of delivering 1,500 packages per day and that each package that is delivered brings in $0.30 in revenue. Also assume that adding the delivery vehicle would not affect any other costs.
Required:
a) What are the MRP and MRC?
b) Now suppose that the cost of renting a vehicle doubles to $600 per day. What are the MRP and MRC?
Should the firm add a delivery vehicle under these circumstances? Yes/No
Answer:
a) MRP = $450
MRC = $300
b) MRP = $450
MRC = $600
No
Explanation:
a) Marginal revenue product (MRP) is the change in revenue created due to an increase in resources.
MRP = Revenue change / additional input
The revenue change as a result of adding one vehicle= 1500 packages/day * $0.3 = $450. The additional input is 1 vehicle
MRP = Revenue change / additional input = $450 / 1 = $450
Marginal revenue cost (MRC) is the change in cost as a result of additional resource.
MRC = Change in resource cost / additional input
Since adding a vehicle is rented at $300/day, the Change in resource cost is $300.
MRC = $300 / 1 = $300
b) MRP = Revenue change / additional input = $450 / 1 = $450
MRC = Change in resource cost / additional input = $600 / 1 = $600
The firm should not add a delivery vehicle because the MRC exceeds the MRP, therefore the firm would be at a loss
The perceived benefit to a consumer MINUS or SUBTRACTING the price paid
Answer:
consumer surplus
Explanation:
The consumer surplus is the difference between the price a consumer is willing to pay and the price paid.
Dickson Co. has asked you to help the select a backhoe. You have a choice between a wheel-mounted version which costs $50,000 and has a life of 5 yrs with a salvage value of $3,000 or a track mounted version which costs $80,000 and has a life of 8 yrs with a salvage value of $5,000. Both machines will have the same productivity and operating costs. If the MARR is 10% which machine will you recommend?
Answer:
The wheel mounted version should be purchased because it has lower equivalent annual cost
Explanation:
To determine which back hole is better, we will compare the the equivalent annual cost of the two and then select the lower of the two:
Equivalent annual cost = Present value of cost /Annuity factor
Present value of Wheel mounted
PV of salvage value = 3,000 × 1.1^(-5)= $1862.76
Total present value = 50,000 + $1862.76 =
Annuity factor = (1-1.1^(-5)/0.1) = 3.790786769
Equivalent annual cost =51862.76/ 3.7907 = $13,681.26
Present Value f Track mounted version =
PV of salvage value = 2,332.536901
Annuity factor =( 1-1.1^(-8)/0.1) = 5.334926
Total present value of cost = 80,000 + 2,332.536901 = 82332.5369
Equivalent annual cost =82,332.53 /5.33492=$15,432.741
Equivalent annual cost of wheel mounted =$ 13,681.26
Equivalent annual cost of track mounted=$15,432.741
The wheel mounted version should be purchased because it has lower equivalent annual cost
Accounts payable $ 18400 Accounts receivable 11000 Accumulated depreciation – equipment 28000 Advertising expense 20600 Cash 15000 Common stock 41400 Dividends 13800 Depreciation expense 11900 Insurance expense 3100 Note payable, due 6/30/19 71400 Prepaid insurance (12-month policy) 6200 Rent expense 17300 Retained earnings (1/1/18) 58100 Salaries and wages expense 31400 Service revenue 133000 Supplies 4100 Supplies expense 5900 Equipment 210000 What is the company’s net income for the year ending December 31, 2018?
Answer:
$42,800
Explanation:
The computation of the net income for the year is shown below:
= Service revenue - advertising expense - depreciation expense - insurance expense - rent expense - salaries & wages expense - supplies expense
= $133,000 - $20,600 - $11,900 - $3,100 - $17,300 - $31,400 - $5,900
= $42,800
We simply deduct all the expenses from the service revenue so that the net income for the year could come
The Machining Department supervisor has been very pleased with this performance because actual expenditures for January–March have been less than the monthly static budget of $335,000. However, the plant manager believes that the budget should not remain fixed for every month but should "flex" or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows:
Wages per hour $15.00
Utility cost per direct labor hour $1.20
Direct labor hours per unit 0.75
Planned monthly unit production 100,000
Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places. Enter all amounts as positive numbers.
Answer:
The total units produced are as follows:
January: 90000 units
February: 100000 units
March: 110000 units
Explanation:
The total units produced are as follows:
January: 90000 units
February: 100000 units
March: 110000 units
Wages for each month are calculated as:
January: Wages = (Units * Direct labor hours per unit) + (hours * wages per hour) = (90000*$0.75) + (22500*$15) = $405000
February: Wages = (Units * Direct labor hours per unit) + (hours * wages per hour) = (100000*$0.75) + (25000*$15) = $450000
March: Wages = (Units * Direct labor hours per unit) + (hours * wages per hour) = (110000*$0.75) + (27500*$15) = $495000
Utilities for each month is:
January: Utility: = (hours * Utility cost per direct labor hour) = 22500 * 1.20 = $27000
February: Utility: = (hours * Utility cost per direct labor hour) = 25000 * 1.20 = $30000
March: Utility: = (hours * Utility cost per direct labor hour) = 27500 * 1.20 = $33000
Since depreciation is fixed and do not flex it is the same for all the months at $60000
The total for each month is:
January: Total = Wages + Utilities + depreciation = $405000 + $27000 + $60000 = $492000
February: Total = Wages + Utilities + depreciation = $450000 + $30000 + $60000 = $540000
March: Total = Wages + Utilities + depreciation = $495000 + $33000 + $60000 = $588000
On December 31, 2021, Wildhorse, Inc. leased machinery with a fair value of $1,425,000 from Cey Rentals Co. The agreement is a 6-year noncancelable lease requiring annual payments of $270,000 beginning December 31, 2021. The lease is appropriately accounted for by Wildhorse as a finance lease. Wildhorse’s incremental borrowing rate is 11%. Wildhorse knows the interest rate implicit in the lease payments is 10%. The present value of an annuity due of 1 for 6 years at 10% is 4.7908. The present value of an annuity due of 1 for 6 years at 11% is 4.69590.In its December 31, 2021 balance sheet, Wildhorse should report a lease liability of:_______
Answer:
$1,023,516
Explanation:
The computation of the lease liability reported is shown below:
= Present value of annual payment - Annual payments
where,
Present value of annual payment = 270000 × 4.7908
= $1,293,516
And, the annual payment is $270,000
So, the lease liability reported is
= $1,293,516 - $270,000
= $1,023,516
We simply applied the above formula to determine the lease liability
Which of the following, indicate whether each statement about regional trade agreements is true or false. Statement True False
Under regional trade agreements, several countries eliminate tariffs among themselves and lower tariffs against all other countries.
Regional trade agreements contradict GATT’s most favored nation principle.
The countries in the European Union (EU) keep their own tariffs with the countries outside the EU.
A good imported into Mexico from China will not be granted duty-free access to the U.S. market if no value is added to this good in Mexico.
Rules of origin specify the types of goods that can be shipped duty-free within a free trade area.
Rules of origin specify the types of goods that can be shipped duty-free within a customs union.
Answer: Please refer to Explanation
Explanation:
Under regional trade agreements, several countries eliminate tariffs among themselves and lower tariffs against all other countries.
FALSE.
Under regional Trade Agreements, countries do indeed eliminate tariffs amongst themselves but there is no obligation to reduce tariffs against countries not part of the agreement.
Regional trade agreements contradict GATT’s most favored nation principle.
TRUE
Regional Trade Agreements do indeed violate the GATT's and the WTO's most favoured principle which states that rights granted to 1 nation of GATT must be granted to all nations in GATT.
The countries in the European Union (EU) keep their own tariffs with the countries outside the EU.
FALSE.
As a political and economic union, the EU maintains a common tariff against countries outside the EU.
A good imported into Mexico from China will not be granted duty-free access to the U.S. market if no value is added to this good in Mexico.
TRUE.
Agreements between China and Mexico do not bound the US if they are not in the agreement as well. Seeing however, as there is an agreement between Mexico and the US, Mexican products can come into the US duty free so for a Chinese product to do tge same, it needs to have been added value to in Mexico.
Rules of origin specify the types of goods that can be shipped duty-free within a free trade area.
TRUE
Rules of origin are made to decide which goods can be shipped duty free.
Rules of origin specify the types of goods that can be shipped duty-free within a customs union.
FALSE.
Rule of Origin do not necessarily apply in a Customs Union as they are supposed to maintain a fixed tariff rate against all countries outside the Customs Union.
It is true that under regional trade agreements, several countries eliminate tariffs among themselves and lower tariffs against all other countries.
Regional trade agreements contradict GATT’s most favored nation principle is true.
The countries in the European Union (EU) keep their own tariffs with the countries outside the EU is true.
A good imported into Mexico from China will not be granted duty-free access to the U.S. market if no value is added to this good in Mexico is true.
Rules of origin specify the types of goods that can be shipped duty-free within a free trade area is true.
Rules of origin specify the types of goods that can be shipped duty-free within a customs union is false.
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On January 1, 2019 Powell Corporation issued $800,000, 5%, 5 year bonds dated January 1, 2019 at 95. The bonds pay annual interest on January 1. The company uses the straight-line method of amortization and has a calendar year end. Prepare the following journal entries that Powell Company would make related to this bond issue: Date of issue: January 1, 2019 Interest Expense Accrual: December 31, 2019 Interest Payment: January 1, 2020 Redemption of bonds at maturity January 1, 2024
Answer:
January 1, 2011
Dr Cash 760,000
Dr Discount on Bonds Payable 40,000
Cr Bonds Payable 800,000
December 31, 2011
Dr Bond Interest Expense 48,000
Cr Discount on Bonds Payable 8,000
Cr Bond Interest Payable 40,000
January 1, 2012
Dr Bond Interest Payable 40,000
Cr Cash 40,000
Explanation:
Powell Corporation Journal entries
January 1, 2011
Dr Cash 760,000
(800,000-40,000)
Dr Discount on Bonds Payable 40,000
Cr Bonds Payable 800,000
December 31, 2011
Dr Bond Interest Expense 48,000
Cr Discount on Bonds Payable 8,000
(40,000÷5)
Cr Bond Interest Payable 40,000
(5%×800,000)
January 1, 2012
Dr Bond Interest Payable 40,000
Cr Cash 40,000
Given Information
On January 1, 2019 issued bond $800,000 AT 5%.
5 year bonds dated January 1, 2019 at 95.
Date Account titles and Explanation Debit Credit
Jan 1, 2019 Cash ($600,000 * 95%) $570,000
Discount on bonds payable $30,000
Bonds payable $600,000
(To record sale of bonds at a discount)
Dec 31, 2019 Bond interest expense $36,000
Discount on bonds payable $6,000
($30,000 / 5 years)
Bond Interest payable ($600,000 * 5%) $30,000
(To record annual accrued bond interest
and amortization of bond discount)
Jan 1, 2020 Bond Interest payable $30,000
Cash $30,000
(To record payment of bond interest liability)
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With milk sales sagging of late, The Milk Processor Education Program (MPEP) decided to move on from the famous "Got Milk" ad slogan in favor of a new one, "Milk Life." The new tagline emphasizes milk's nutritional benefits, including its protein content.
MPEP began collecting data on the number of gallons of milk households consumed weekly (in millions), weekly price per gallon, and weekly expenditures on milk advertising (in hundreds of dollars) for the period following the launch of the new campaign. These data, in forms to estimate both a linear model and log-linear model, are available via the link below. Use these data to perform two regressions; a linear regression and a log-linear regression.
Suppose that the weekly price of milk is $3.40 per gallon and MPEP decides to ramp up weekly advertising by 35 percent to $150 (in hundreds). Use the best-fitting regression model to estimate the weekly quantity of milk consumed after this advertising increase.
Linear Model Log-Linear Model
Q P A lnQ lnP lnA
4.76 2.46 472.68 1.56 0.90 6.16
0.90 4.28 326.41 -0.10 1.45 5.79
1.74 3.72 357.36 0.55 1.31 5.88
0.96 4.20 475.82 -0.04 1.43 6.17
2.38 4.14 494.25 0.87 1.42 6.20
1.28 4.59 458.62 0.25 1.52 6.13
2.86 3.30 421.67 1.05 1.19 6.04
1.87 4.34 534.85 0.63 1.47 6.28
2.19 3.31 524.75 0.78 1.20 6.26
1.38 3.35 370.35 0.32 1.21 5.91
0.21 4.53 420.16 -1.54 1.51 6.04
3.55 2.63 333.79 1.27 0.97 5.81
2.44 4.40 437.32 0.89 1.48 6.08
1.94 4.36 442.70 0.66 1.47 6.09
2.50 3.24 375.67 0.91 1.18 5.93
2.92 3.45 546.36 1.07 1.24 6.30
4.94 2.97 391.17 1.60 1.09 5.97
2.14 3.22 498.00 0.76 1.17 6.21
3.89 3.34 530.17 1.36 1.20 6.27
6.91 2.24 527.36 1.93 0.81 6.27
3.41 4.04 440.93 1.23 1.40 6.09
1.16 4.10 480.35 0.15 1.41 6.17
1.60 3.99 404.91 0.47 1.38 6.00
4.09 3.22 512.00 1.41 1.17 6.24
2.69 2.98 346.29 0.99 1.09 5.85
2.41 4.30 383.47 0.88 1.46 5.95
2.25 2.84 434.26 0.81 1.04 6.07
2.48 3.96 548.37 0.91 1.38 6.31
3.79 2.49 357.71 1.33 0.91 5.88
3.33 3.29 445.73 1.20 1.19 6.10
2.61 4.02 524.55 0.96 1.39 6.26
2.40 4.05 487.87 0.88 1.40 6.19
3.92 2.46 343.13 1.37 0.90 5.84
3.42 3.45 353.81 1.23 1.24 5.87
0.80 3.40 334.47 -0.23 1.22 5.81
5.79 2.95 330.57 1.76 1.08 5.80
3.58 2.69 363.91 1.28 0.99 5.90
1.58 3.79 383.71 0.46 1.33 5.95
1.14 3.37 430.37 0.13 1.21 6.06
1.04 4.64 501.84 0.04 1.54 6.22
4.88 2.66 447.12 1.59 0.98 6.10
4.31 2.25 404.38 1.46 0.81 6.00
2.23 3.94 449.29 0.80 1.37 6.11
1.38 4.42 327.99 0.32 1.49 5.79
1.62 3.13 332.39 0.49 1.14 5.81
1.38 4.45 450.16 0.33 1.49 6.11
6.20 2.38 467.40 1.82 0.87 6.15
4.17 3.69 528.60 1.43 1.31 6.27
4.08 4.02 533.73 1.41 1.39 6.28
0.08 4.30 355.81 -2.55 1.46 5.87
3.82 2.80 462.42 1.34 1.03 6.14
1.17 4.51 549.78 0.16 1.51 6.31
3.26 2.42 366.63 1.18 0.88 5.90
2.44 4.37 429.74 0.89 1.47 6.06
4.16 2.53 399.57 1.42 0.93 5.99
2.63 3.63 521.95 0.97 1.29 6.26
4.94 2.80 356.59 1.60 1.03 5.88
1.84 4.36 416.24 0.61 1.47 6.03
4.71 3.12 435.99 1.55 1.14 6.08
6.46 2.40 464.62 1.87 0.87 6.14
2.79 3.51 353.37 1.03 1.25 5.87
4.09 3.07 425.12 1.41 1.12 6.05
4.76 2.32 481.72 1.56 0.84 6.18
3.05 3.45 376.30 1.12 1.24 5.93
0.87 4.44 536.86 -0.13 1.49 6.29
3.12 2.50 493.52 1.14 0.92 6.20
1.34 3.11 454.69 0.29 1.13 6.12
1.93 3.24 487.07 0.66 1.17 6.19
1.64 2.87 461.69 0.50 1.05 6.13
4.39 2.97 410.84 1.48 1.09 6.02
5.76 2.33 480.66 1.75 0.84 6.18
4.40 2.82 381.62 1.48 1.04 5.94
6.22 3.14 456.97 1.83 1.14 6.12
1.10 3.89 461.39 0.09 1.36 6.13
4.12 2.67 430.43 1.42 0.98 6.06
5.40 2.73 438.53 1.69 1.01 6.08
2.75 4.52 336.00 1.01 1.51 5.82
5.12 2.28 519.90 1.63 0.83 6.25
3.94 3.25 536.25 1.37 1.18 6.28
5.69 2.18 439.75 1.74 0.78 6.09
0.44 4.27 352.57 -0.82 1.45 5.87
1.89 3.62 397.69 0.64 1.29 5.99
4.02 3.32 345.17 1.39 1.20 5.84
3.70 3.43 507.56 1.31 1.23 6.23
3.26 2.43 330.67 1.18 0.89 5.80
2.98 2.97 433.20 1.09 1.09 6.07
2.09 4.32 462.14 0.74 1.46 6.14
5.68 2.25 515.33 1.74 0.81 6.24
4.33 2.65 508.14 1.47 0.98 6.23
4.97 3.63 510.41 1.60 1.29 6.24
2.89 3.60 343.16 1.06 1.28 5.84
2.25 3.37 365.82 0.81 1.22 5.90
0.17 3.77 425.56 -1.79 1.33 6.05
3.96 2.87 347.36 1.38 1.06 5.85
4.08 2.97 326.06 1.40 1.09 5.79
3.49 3.94 527.12 1.25 1.37 6.27
4.21 4.10 475.28 1.44 1.41 6.16
2.25 4.09 475.69 0.81 1.41 6.16
2.40 3.93 536.42 0.88 1.37 6.28
1.61 4.10 325.89 0.48 1.41 5.79
Answer:
bggggggggggdgfdfgfghghkj
Explanation:
Suppose Chef City manufactures cast iron skillets. One model is a 10-inch skillet that sells for $ 32. Chef City projects sales of 650 10-inch skillets per month. The production costs are $ 10 per skillet for direct materials, $ 3 per skillet for direct labor, and $ 4 per skillet for manufacturing overhead. Chef City has 40 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 30% of the next month's sales. Selling and administrative expenses for this product line are $ 1 comma 600 per month. Chef City is budgeted to produce 805 skillets in July. Compute the total amount budgeted for product costs for July.
Answer:
$13,600
Explanation:
The solution of the total amount budgeted for product costs for July is provided below:-
Budgeted for product costs for July = Number of skillets × (Direct material + Direct labor + Cost of manufacturing overhead)
= 805 × ($10 + $3 + $4)
= 805 × $17
= $13,600
So, we have calculated the total amount budgeted for product costs for July by using the above formula.
Doloris is a college sophomore. She is currently living in a dorm and signed a contract to pay the dorm fees for the full academic year (9 months). The contract states the if she moves out she can sell the remaining contract to another student. The cost of the dorm is $5000 for the year.
After two (2) months of living in the dorm Doloris found an apartment with her friends and really wants to move off-campus. Doloris put an ad in the Alligator and had two offers for her dorm contract buy out.
1) Pay Doloris $350 per month for the 7 remaining months.
2) Move in the second semester and pay half of the original dorm fee ($2,500).
Doloris's new apartment will cost $450 in rent. The cost for food in the dorm is $500 per month and about she estimates it is $400 in food and utility monthly expenses if she moves into the apartment.
Assume semesters are 4.5 months long.
Required:
1. What is the cost for Doloris to move into the apartment now?
2. What is the cost for Doloris to move at the end of the semester?
3. What is the cost for Doloris to stay in the dorm for the rest of the school year?
4. Which is the most economical option for Doloris?
As per the question dolorous is a college sophomore she is living in a dorm and has signed a contract to pay the fees for the full education year that is 9 months.
The contract states that cost of the dorm is about $5000 for the year. After 2 months she found an apartment with her friends and put an ad in alligator. The cost of food is $500, has a semester for 4.5 months.Learn more about the college sophomore.
brainly.com/question/26268249.
Businesses, individuals, and governments often need to raise capital, while others have surplus funds. In a well-functioning economy, capital flows efficiently from those with surplus capital to those who need it. Transfers can take place in 3 ways (indirect, direct) transfers without going through any type of financial institution, (indirect, direct) transfers through investment banks that underwrite the securities, and indirect transfers through financial (agencies, intermediaries, funds) that create new forms of capital.
Answer:
1). Direct.
2). Indirect.
3). Intermediaries.
Explanation:
1). Direct Channel: This is explained to be the shortest and simplest channel of direct distribution of goods from manufacturer to customers.
It is called as zero level channel of distribution as it does not involve any intermediary.
2. Indirect Channel: When a manufacturer employs one or more intermediaries to sell and distribute their product to the customers it is called as indirect selling. In this, goods move from the point of production to the point of consumption through a distribution network.
3). Intermediaries: This is a firm or person(such as a broker or consultant) who acts as a mediator on a link between parties to a business deal, investment decision, negotiation etc.
considering a project that is equally as risky as the firm's current operations. The firm has a cost of equity of 15.4 percent and a pretax cost of debt of 8.9 percent. The debt-equity ratio is .46 and the tax rate is 21 percent. They are evaluating a project that will cost $60,000 and will cash inflows of $20,000, $30,000 and $40,000 respectively for the three years of the project. What is the net present value for this project?
Answer:
$9230.70
Explanation:
Debt ratio = Debt equity ratio / (Debt equity ratio+1) = 0.46/(0.46+1) = 0.46/1.46
Equity ratio = 1/(Debt equity ratio+1) = 1/(0.46+1) = 1/1.46
WACC = 15.4%×1/1.46+8.9%×(1-21%)×0.46/1.46 = 12.76%
Net present value = 20000/(1+12.76%) + 30000/(1+12.76%)^2 + 40000/(1+12.76%)^3 - 60000 = $9230.70
Bob is a recognized french horn player. Bob has played for several major symphonies. Last year Bob went through bankruptcy and in order to pay his rent for a couple of months took out loans from a small bank - Avarice Bank - and pledged his french horn as collateral. He was unable to make the first payment on the loan so the bank was getting ready to take the french horn for non-payment. Bob approached the director of the Gilroy Philarmonic International Symphony - Joe - for help - asking him to guarantee payment so he does not lose his french horn. Joe agreed to guarantee the payment - partially because Bob is scheduled as the featured performer at the Classic Polka Festival in Gilroy which Joe manages. Joe called Avarice Bank and said if Bob could not pay, he would, and Avarice accepted his guaranty by phone. Bob played for the Polka Festival (it was very successful), but immediately after, left town and his whereabouts are unknown. Avarice has contacted Joe and indicated they have not collected from Bob and they expect Joe to pay the debt. Joe told Avarice they did not have anything in writing from him (though there are witnesses who heard Joe guarantee payment) and he believes he will not be liable for Bob's debt. Avarice has indicated it will file suit for payment against Joe. I
nstructions: Answer the following questions about this case:
Issue: What is the legal issue/dispute? (Be specific. Don’t just say Contract Law)
Decision: Who should prevail?
Support: Provide support for your decision. Describe what the law says about situations like this, and how it applies to this case.
Answer:
In this case, we analysed three problems, which are The issue, The decision and The support.
The issue of the dispute was does guarantee on phone for payment debt) valid and enforceable in the court of law.
The decision was centered on whether a contract is needed to be in writing and if it should bear the signatures of both parties in order for it to be enforceable.
The support centered on the assurance of the repayment of debt contract in which authorities the creditor to get back the money from the guarantor, if the debtor fails on payment.
Explanation:
Solution
The Issue : Does guarantee on phone for a debt payment is valid and enforceable in a court of law.
Decision : The guarantee is a contract and needs to be in writing and should bear the signatures of the parties in order to be enforceable. In this case, the guarantee for the debt repayment by Bob was given by Joe on phone, which does not fulfill the requirement of the contract to be enforceable.Hence the bank would not succeed in claiming payments from Joe.
Support : Guarantee for repayment of debt is a contract that authorities the creditor to recover the money from the guarantor if the debtor defaults on payment. However, the guarantee contract should be in writing ( in legal systems of most of the countries) and should be signed by the guarantor. In absence of a written contract and signature of the guarantor, the contract can't be enforced in a court of law, which is in this case. The bank should have insisted only on the written and signed consent of guarantee from Joe. As it did not, it can't hold him liable for the breach of guarantee contract.
Selected information from Peridot Corporation's accounting records and financial statements for 2018 is as follows ($ in millions): Cash paid to acquire machinery $ 36 Reacquired Peridot common stock 50 Proceeds from sale of land 70 Gain from the sale of land 52 Investment revenue received 66 Cash paid to acquire office equipment 80 In its statement of cash flows, Peridot should report net cash outflows from investing activities of: Group of answer choices $46 million. $72 million. $26 million. $78 million.
Answer:
Peridot should report net cash outflows from investing activities of: $46 million
Explanation:
Peridot Corporation
Statement of cash flows (extract)
$ in millions
Purchase of machinery ($36)
Proceeds from sale of land 70
Cash paid to acquire office equipment (80)
Net cash flows from investing activities ($46)
Note that reacquired common stock belongs to financing activities section of the cash flows, while gain from sale of land and investment revenue belong to operating activities section of the cash flows
What is the name of the Inca tot of stock market prices that averages 30 selected industrial stocks?
A. NYSE
B. S&P 500
C. NASDQ
D. Dow Jones
Answer:
C
Explanation:
I'm smart boy that's y because y = u and u nedda pay attention in class blood
The name of the Inca tot of stock market prices that average 30 selected industrial stocks is Dow Jones. Thus the correct option is D.
What is stock?A stock is referred to as a kind of ownership of certain items. When an individual holds stocks or shares in the market they are entitled as a stockholder or shareholder and liable for some dividend.
The more than 3,700 stocks listed on the Nasdaq stock exchange make up the market capitalization-weighted Nasdaq Composite Index. While Dow Jones is made up of only the top 30 stocks, which are often selected for their industrial industries.
As a result, Dow Jones is the name of the stock market price indicator that uses the average of 30 carefully chosen industrial stocks. Therefore, D is the appropriate option.
Learn more about stocks, here:
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In recent years, banks have encouraged their customers to save by giving incentives to join programs that automatically transfer money from checking accounts to savings accounts. For example, a bank might offer to round debit transactions to the nearest dollar, transferring the change to one's savings account, and then boost this amount with a match of a certain amount. Although these programs were intended to encourage customers to save, some economists are not very enthusiastic about these programs. Which of these describe why the economists would be concerned? a. Economists fear that saving money would trigger consumers to spend more in the near future. b. The program was offered during an expansionary time period; consumers were not worried about saving their money. c. Some economists believe the automatic transfers could lead to overdrafts. d. Economists believe consumers would not be willing to transfer the money from their checking account to their savings account.
Answer:
The correct answer is the economists believe consumers would not be willing to transfer the money from their checking account to their savings account.
Explanation:
From the given question, the statements that best describe why the economists would be concerned is that, the economists believe consumers would not be willing to transfer the money from their checking account to their savings account.
In recent times, bank have encouraged it's customers to join programs that would be of benefit to them such as transferring money automatically from their checking accounts to savings. these programs was designed to benefit he customers into saving money, but economists had this believe that customers might not be willingly to transfer money into their savings account from the checking account which might have resulted to doubt and trust for the bank.
Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $22,000 bill from her accountant for consulting services related to her small business. Reese can pay the $22,000 bill anytime before January 30 of next year without penalty. Assume Reese’s marginal tax rate is 32 percent this year and will be 37 percent next year, and that she can earn an after-tax rate of return of 6 percent on her investments. a. What is the after-tax cost if she pays the $22,000 bill in December?
Answer:
$14,960
Explanation:
Pay $22,000 bill in December:
$22,000 tax deduction × 32%marginal tax rate = $7,040 in present value tax savings.
After-tax cost= Pretax Cost − Present Value
Tax Savings= $22,00 − $7,040
= $14,960
Therefore the after-tax cost if she pays the $22,000 bill in December will be $14,960
Answer:
$ 14,960.00
Explanation:
By paying the $22,000 in settlement of the accrued bills payment,Reese would have a tax savings equal to the 32% of the amount paid since the payment is tax deductible,the payment would reduce taxable income by $22,000,in effect reduce tax payable by $7,040 (32%*$22,000).
All in all,the after tax cost of the payment is the actual payment of $22,000 less tax savings of $7,040.
After tax cost of bills=$22,000-$7,040=$ 14,960.00
Escents, a body lotion manufacturer from Canada, negotiated a contract with a shea butter company in Mali, Africa, to supply 40% of the needed shea butter for its products. The negotiations ended, and the process of moving shea butter supplies across Mali to the coast for shipping began. Along the way, there were delays because trucks would be stopped by washed-out roads or faulty bridges. What challenge did Escents discover with working in a less-developed country like Mali
Answer: Infrastructure Challenge.
Explanation:
A major problem in developing countries is insufficient and often damaged infrastructure. There are lack of roads and other mean of access to quite some areas in the country and those routes that do have road networks sometimes see trade still hampered by damage to those road networks.
Sometimes there would be potholes that require careful maneuvering and sometimes the roads would be washed out. In this case Escents is experiencing Dela due to washed-out roads or faulty bridges which are examples of infrastructural damage.
Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Heather deposited $1,700 at her local credit union in a savings account at the rate of 9.8% paid as simple interest. She will earn interest once a year for the next 13 years. If she were to make no additional deposits or withdrawals, how much money would the credit union owe Heather in 13 years? $1,882.93 $3,865.80 $266.60 $5,731.65
Answer:
The correct answer in this case is $3865.8
Explanation:
The first thing to do is to calculate the on the principal in thirteen years' time using the below formula:
I=PRT
I is the interest which is unknown
P is the principal of $1700
R is the rate of interest of 9.8%
T is the length of the deposit which is 13 years
I=1700*9.8%*13=$2165.8
The total amount owed by the credit union in 13 years=principal+interest
=$1,700+$2,165.8
=$3865.8
The correct option is is the second option
Carns Company is considering eliminating its small tools division, which reported an operating loss for the recent year of $85,000. Division sales for the year were $1,310,000 and its variable costs were $1,175,000. The fixed costs of the division were $220,000. If the kitchen division is dropped, 45% of the fixed costs allocated it could be eliminated. The impact on Carns’s operating income from eliminating the small tools division would be:
Answer:
$36,000
Explanation:
As per the data given in the question,
Current Loss = $85,000
If we don't consider division, then 45% of fixed cost cab be eliminated and remaining 55% of fixed cost is considered.
Fixed cost to be applied
= $220,000 × 55%
= $121,000
Enhancing in operating loss when division is eliminated
= $121,000 - $85,000
= $36,000
Sadler Corporation purchased equipment to be used in manufacturing. The purchase was made at the beginning of 2015 by paying cash of $150,000. The equipment has an estimated residual value of $10,000 and an expected useful life of 10 years. At the beginning of 2017, Sadler concluded that the total useful life of the equipment will be 8 years rather than 10, and that the residual value will be zero. Sadler uses the straight-line method for depreciation.
Required:
a) Prepare the journal entry to record depreciation on the equipment for 2016.
b) Prepare the journal entry to record depreciation on the equipment for 2017 including the effect of the changes in estimates.
Answer:
a) Debit Depreciation expense $14,000
Credit Accumulated depreciation $14,000
Being entries to record depreciation expense for 2016
b) Debit Depreciation expense $26,666.67
Credit Accumulated depreciation $26,666.67
Being entries to record depreciation expense for 2017
The effect of a change in estimate is a reduction of the annual depreciation from $14,000 to $26,666.67 (increase of $12,666.67) annually
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.
It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset
Mathematically,
Depreciation = (Cost - Salvage value)/Estimated useful life
Annual depreciation
= (150,000 - 10,000)/10
= $14,000
At the beginning of 2017,
Net book value of asset
= $150,000 - 2($14,000)
= $124,000
If Sadler concluded that the total useful life of the equipment will be 8 years rather than 10, and that the residual value will be zero.
Depreciation expense for 2017
= $124,000/6
= $26,666.67
Hill Manufacturing uses departmental cost driver rates to apply manufacturing overhead costs to products. Manufacturing overhead costs are applied on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 2018, the following estimates were provided for the coming year:
Machining Assembly
Direct labor-hours 10,000 dlh 90,000 dlh
Machine-hours 100,000 mah 5,000 mh
Direct labor cost $ 80,000 $720,000
Manufacturing overhead costs $250,000 $360,000
The accounting records of the company show the following data for Job #846:
Machining Assembly
Direct labor-hours 50 dlh 120 dlh
Machine-hours 170 mh 10 mh
Direct material cost $2,700 $1,600
Direct labor cost $ 400 $ 900
Required:
a. Compute the manufacturing overhead allocation rate for each department.
b .Compute the total cost of Job #846
Answer:
a. Manufacturing overhead allocation rate for each department.
Machining Department
Overhead allocation rate = $2.50
Assembly Department
Overhead allocation rate = $4.00
b. total cost of Job #846 is $6,505
Explanation:
a. Manufacturing overhead allocation rate for each department.
Machining Department
Overhead allocation rate = Overhead / Machine hours
= $250,000/ 100,000
= $2.50
Assembly Department
Overhead allocation rate = Overhead / direct labor-hours
= $360,000/ 90,000
= $4.00
b. total cost of Job #846
Direct material cost :
Machining $2,700
Assembly $1,600
Direct labor cost :
Machining $ 400
Assembly $ 900
Overhead Costs :
Machining ( $2.50 × 170) $ 425
Assembly ( $4.00 × 120) $ 480
Total Cost $6,505
The following information is available for Ramos Corporation for the year ended December 31, 2014.Beginning cash balance $ 79,425Accounts payable decrease 6,531Depreciation expense 285,930Accounts receivable increase 14,473Inventory increase 19,415Net income 501,437Cash received for sale of land at book value 61,775Cash dividends paid 21,180Income taxes payable increase 8,296Cash used to purchase building 510,085Cash used to purchase treasury stock 45,890Cash received from issuing bonds 353,000Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer:
Please see the statement of cash flows prepared below.
Explanation:
Ramos Corporation
Statement of cash flows
Net income $501,437
Add: Depreciation expense 285,930
Income taxes payable increase 8,296
Less: Accounts payable decrease (6,531)
Accounts receivable increase (14,473)
Inventory increase (19,415)
Net cash flows from operating activities (a)....... 755,244
Proceed from sale of land 61,775
Purchase of building (510,085)
Net cash flows from investing activities (b)....... (448,310)
Cash dividends paid (21,180)
Purchase treasury stock (45,890)
Proceed from the issue of bonds 353,000
Net cash flows from financing activities (c)....... 285,930
Net increase in cash and cash equivalents (d=a+b+c)592,864
Cash balance at the beginning of the year 79,425
Cash balance at the end of the year $672,289
Joe has just moved to a small town with only one golf course, the Northlands Golf Club. His inverse demand function is pequals200minus2q, where q is the number of rounds of golf that he plays per year. The manager of the Northlands Club negotiates separately with each person who joins the club and can therefore charge individual prices. This manager has a good idea of what Joe's demand curve is and offers Joe a special deal, where Joe pays an annual membership fee and can play as many rounds as he wants at $40, which is the marginal cost his round imposes on the Club. What membership fee would maximize profit for the Club? The manager could have charged Joe a single price per round. How much extra profit does the Club earn by using two-part pricing? The profit-maximizing membership fee (F) is $ nothing. (Enter your response as a whole number.)
Answer:
$3200
Explanation:
MC = Marginal Cost
MR = Marginal Revenue
p = 200 – 2q
The profit-maximizing membership fee is equal to the total surplus
So, Number of rounds played by joe,
P = MC = 40 = 200 - 2q
40 = 200 - 2q
q = 160/2 = 80
and, T.S = 1/2*(vertical intercept of demand curve - MC)*Quantiy of rounds
T.S = 1/2*(200-40)*80
= 6400
So, the maximum membership FEE (F) = $6400 .
If Firm Charge singe price , then it will provide rounds such MR = MC
TR = P*Q = (200 - 2Q)*Q
MR = dTR/dQ = 200 - 4Q
Equating MR = MC
200 - 4Q = 40
Q = 160/4 = 40
P = 200 - 2Q = 200 - 2*40 = 120
So, Profit if charge single price = TR - TC = PQ - MC*Q = (P-MC)*Q = (120-40)*40 = $3200
So, Increase in Profit = Membership fee - Profit if charge single price
= $6400 - $32000
= $3200
The following transactions involving intangible assets of Minton Corporation occurred on or near December 31, 2017. 1. Minton paid Grand Company $400,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Minton is in business. 2. Minton spent $600,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful. 3. In January, 2018, Minton's application for a patent (#2 above) was granted. Legal and registration costs incurred were $180,000. The patent runs for 20 years. The manufacturing process will be useful to Minton for 10 years.Minton incurred $140,000 in successfully defending one of its patents in an infringement suit. The patent expires during December, 2021.Minton incurred $480,000 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $252,000, is deemed worthless.Minton paid Sneed Laboratories $104,000 for research and development work performed by Sneed under contract for Minton. The benefits are expected to last six years.A. Prepare journal entry (ies) for on the date of transaction.B. Prepare journal entry (ies) for on December 31, 2018 to record any resultant amortization:
Answer and Explanation:
As per the data given in the question,
The journal entries are shown below:
A. On the date of transaction
1. Franchise A/c Dr. $400,000
To Cash Cr. $400,000
(Being cash paid is recorded)
2. Research and development expense A/c Dr. $600,000
To Cash Cr. $600,000
(Being cash paid is recorded)
3. Patents A/c Dr. $180,000
To Cash Cr. $180,000
(Being cash paid is recorded)
4. Patents A/c Dr. $140,000
To Cash Cr. $140,000
(Being cash paid is recorded)
5. Legal fees expense A/c Dr. $480,000
To Cash Cr. $480,000
(Being cash paid is recorded)
6. Patents expense A/c Dr. $252,000
To Patents Cr. $252,000
(Being patent expense is recorded)
7. Research and development expense $104,000
To Cash Cr. $104,000
(Being cash paid is recorded)
B. Journal entries on Dec-31, 2018
1. No journal entry is needed
2. No journal entry is needed
3. Amortization expense A/c Dr. $18,000
To Patents Cr. $18,000
(Being the amortization expense is recorded)
4. Amortization expense $35,000 ($140,000 ÷ 4 years)
To Patents Cr. $35,000
(Being the amortization expense is recorded)
5. No journal entry is needed
6. No journal entry is needed