Answer:
$220,000
Explanation:
Calculation for What amount should Crane report as its December 31 inventory
Using this formula
Ending inventory =Goods costing on hand+Physical count of goods purchased+Goods sold
Let plug in the formula
Ending inventory = $180,000 + $20,000 + $20,000
Ending inventory = $220,000
Therefore the amount that Crane should report as its December 31 inventory is $220,000
Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.
Transactions Units Units Cost
a. Inventory, Beginning For the year 300 $19
b. Purchase, April 11 900 17
c. Purchase, June 1 800 20
d Sale, May 1 (sold for $47 per unit) 300
e. Sale, July 3 (sold for $47 per unit) 680
f. Operating expenses (excluding income tax expense), $18,700
Required:
1. Calculate the number and cost of goods available for sale.
2. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost.
3. Prepare an Income Statement that shows the FIFO method, LIFO method, and weighted average method.
Answer:
Results are below.
Explanation:
First, we need to calculate the number and cost of goods available for sale:
Number of units= 300 + 900 + 800= 2,000
Cost of goods available for sale= (300*19) + (900*17) + (800*20)
cost of goods available for sale= $37,000
FIFO:
Under the FIFO (first-in, first-out), the cost of goods sold is calculated using the cost of the firsts units incorporated into inventory.
COGS= 300*19 + 680*17= $17,260
Ending inventory= 37,000 - 17,260= $19,740
LIFO:
Under the LIFO (last-in, first-out), the cost of goods sold is calculated using the cost of the lasts units incorporated into inventory.
COGS= 800*20 + 180*17= $19,060
Ending inventory= 37,000 - 19,060= $17,940
Weighted-average:
Weighted-average cost= 37,000/2,000= $18.5 per unit
COGS= 980*18.5= $18,130
Ending inventory= 1,020*18.5= $18,870
Finally, the income statements for each method:
FIFO:
sales= (980*47)= 46,060
COGS= (17,260)
Gross profit= 28,800
Operating expenses= (18,700)
Net operating income= 10,100
LIFO:
sales= (980*47)= 46,060
COGS= (19,060)
Gross profit= 27,000
Operating expenses= (18,700)
Net operating income= 8,300
Weighted-average:
sales= (980*47)= 46,060
COGS= (18,130)
Gross profit= 27,930
Operating expenses= (18,700)
Net operating income= 9,230
A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $9 per hour and capital is rented at $10 per hour. If the marginal product of labor is 45 units of output per hour and the marginal product of capital is 60 units of output per hour, should the firm increase, decrease, or leave unchanged the amount of capital used in its production process
Answer: Capital should be increased in the production process.
Explanation:
We should note that based on rule of cost minimization, the quantity of capital and labor that's employee by a firm should be one where the MRTS i.e marginal rate of technical substitution between the capital and labor is equal to the wage rental ratio. Therefore,
MRTS = w/r
MPl/MPk = w/r
MPl/w = MPk/r
45/9 < 60/10
5 < 6
Since the ratio isn't equal, it simply means that the firm isn't using optimum mix of inputs. Based on the above, capital should be increased.
The management of Wheeler Company has decided to develop cost formulas for its major overhead activities. Wheeler uses a highly automated manufacturing process, and power costs are a significant manufacturing cost. Cost analysts have decided that power costs are mixed. The costs must be broken into their fixed and variable elements so that the cost behavior of the power usage activity can be properly described. Machine hours have been selected as the activity driver for power costs. The following data for the past eight quarters have been collected:
Quarter Machine Hours Power cost
1 20000 26000
2 25000 38000
3 30000 42500
4 22000 37000
5 21000 34000
6 18000 29000
7 24000 36000
8 28000 40000
1. Prepare a scattergraph by plotting power costs against machine hours. Does the scattergraph show a near relationship between machine hours and power cost?
2. Using the high and low points (i.e., the high-low method), compute a power cost formula.
3. Use the method of least squares to compute a power cost formula. Evaluate the coefficient of determination.
Answer:
Explanation:
1-a See the attached photo for the a scattergraph.
1-b. Yes, the scattergraph show a near relationship between machine hours and power cost.
2. The power cost formula using the high and low points is as follows:
Total power cost = -7000 + (1.65 * Machine hours)
3-a. The power cost formula using the method of least squares is as follows:
Total power cost = 6454 + (1.21 * Machine hours)
3-b. R² = Coefficient of determination = 0.8969, or 89.69%
Explanation
1-a. Prepare a scattergraph by plotting power costs against machine hours.
Note: See the attached photo for the a scattergraph by plotting power costs against machine hours.
1-b. Does the scattergraph show a near relationship between machine hours and power cost?
Note that Scattergraph is interpreted by looking by looking for trends in the data as there is movement from left to right.
From the attached a scattergraph, it can be observed that there is an uphill pattern as there is a movement from left to right. This indicates that there a near positive relationship between power costs against machine hours.
Therefore, the scattergraph show a near relationship between machine hours and power cost.
2. Using the high and low points (i.e., the high-low method), compute a power cost formula.
2-a. Calculation of variable cost elements
Variable cost per machine hour = (Highest Power Costs - Lowest Power Costs) / (Highest machine hours – Lowest machine hours) = (42500 - 26000) / (30000 - 20000) = 1.65 per hour
2-b. Calculation of fixed cost elements
Total power cost = Total Fixed Cost + Total Variable Cost ................. (1)
Where;
Total Variable Cost = Variable cost per machine hour * Machine hours ……….. (2)
Substitute equation (2) into equation (1), we have:
Total power cost = Total Fixed Cost + (Variable cost per machine hour * Machine hours) ……………………. (3)
Using highest machine hours and substitute relevant values into equation (3), we have:
42500 = Total Fixed Cost + (1.65 * 3000)
42500 = Total Fixed Cost + 49,500
Total Fixed Cost = 42500 - 49,500
Total Fixed Cost = -7000
2-c Computation of a power cost formula
Substituting Variable cost per machine hour = 1.65 and Total Fixed Cost = -7000 into equation (3), we can compute the power cost formula as follows:
Total power cost = -7000 + (1.65 * Machine hours) ………………. (4)
Equation is the power cost formula.
3. Use the method of least squares to compute a power cost formula. Evaluate the coefficient of determination.
Note: See the attached excel file for the calculations of Total of Machine Hours (x), Power cost (y), xy, x^2, and y^2.
Since Σ = Total of or summation of, we can therefore obtain the following from the attached excel file:
Σx = 190,800
Σy = 282,500
Σxy = 6,878,400,000
Σx² = 4,666,540,000
Σy² = 10,188,250,000
N = Number of quarters = 8
3-a. Use the method of least squares to compute a power cost formula
Step 1: Calculation of variable cost per rental return
To calculate the variable power cost per machine hour, the following formula is used:
Variable power cost per machine hour = (NΣxy − ΣxΣy) /((NΣx²) − (Σx)²) ……………… (5)
= (Σxy – (1/8)ΣxΣy) /((Σx²) – (1/8)(Σx)²)
=(6,878,400,000 – ((1/8) * 190,800 * 282,500)) / (4,666,540,000 – ((1/8) * 190,800²))
Substituting the relevant values into equation (5), we have:
Variable cost per rental return = ((8 * 6,878,400,000) - (190,800 * 282,500)) /((8 * 4,666,540,000) - 190,800²)
Variable power cost per machine hour = 1.21
Step 2: Calculation of quarterly fixed power cost
This can be calculated using the following formula:
Fixed Cost per quarter = {Σy - (Variable power cost per machine hour * Σx) / N ....... (6)
Substituting the relevant values into equation (6), we have:
Fixed Cost per quarter = (282,500 - (1.21 * 190,800)) / 8
Fixed Cost per quarter = 6,454
Step 3: Computation of the power cost formula
Substituting Variable cost per machine hour = 1.21 and Total Fixed Cost = 6,454 into equation (3) in part 2 above, we can compute the power cost formula as follows:
Total power cost = 6454 + (1.21 * Machine hours) ………………. (4)
Equation (4) is the power cost formula.
3-b. Evaluate the coefficient of determination.
This can be evaluated using the following formula:
R² = Coefficient of determination = (NΣxy – ΣxΣy) / ((NΣx² - (Σx)²) * (NΣy² - (Σy)²))^0.5 ……….. (5)
Substituting the relevant values into equation (5) we have:
R² = ((8 * 6,878,400,000) – (190,800 * 282,500)) / (((8 * 4,666,540,000) – 190.800²) * ((8 * 10,188,250,000) – 282,500²))^0.5
R² = 0.8969, or 89.69%
Consider the effects of inflation in an economy composed of only two people: Larry, a bean farmer, and Megan, a rice farmer. Larry and Megan both always consume equal amounts of rice and beans. In 2016 the price of beans was $1, and the price of rice was $4.
Suppose that in 2017 the price of beans was $2 and the price of rice was $8.
Inflation was.
Indicate whether Larry and Megan were better off, worse off, or unaffected by the changes in prices.
Better Off
Worse Off
Unaffected
Larry
Megan
Now suppose that in 2017 the price of beans was $2 and the price of rice was $4.80.
In this case, inflation was.
Indicate whether Larry and Megan were better off, worse off, or unaffected by the changes in prices.
Better Off
Worse Off
Unaffected
Larry
Megan
Now suppose that in 2017, the price of beans was $2 and the price of rice was $1.60.
In this case, inflation was.
Indicate whether Larry and Megan were better off, worse off, or unaffected by the changes in prices.
Better Off
Worse Off
Unaffected
Larry
Megan
What matters more to Larry and Megan?
The relative price of rice and beans
The overall inflation rate
Answer:
a.
Inflation = (2017 price of basket - 2016 price of basket) / 2016 price of basket
2016 price of basket = 1 + 4 = $5
2017 price of basket = 2 + 8 = 10
Inflation
= (10 - 5) / 5
= 100%
Both Megan and Larry would be unaffected by the changes in prices because the prices doubled for both of them.
__________________________________________________________
b. Now suppose that in 2017 the price of beans was $2 and the price of rice was $4.80.
Market basket in 2017 = 2 + 4.8 = $6.80
Inflation
= (6.8 - 5) / 5
= 36%
Larry will be better off because the price of beans increased by 100% which is more than the inflation rate of 36%.
Megan's price increase = (4.8 - 4)/4 = 20%.
Inflation is 36%.
Megan will be worse off as inflation is higher than the increase in price of rice.
__________________________________________________________
c. Now suppose that in 2017, the price of beans was $2 and the price of rice was $1.60.
Market Basket in 2017 = 2 + 1.6 = $3.60
Inflation = (3.6 - 5)/5 = -28%
Larry will be better off because his prices have risen while general inflation has fallen.
Megan's price decrease = ( 1.6 - 4)/4 = -60%. Inflation was -28%.
Megan will be worse off because inflation decreased less than her prices did.
__________________________________________________________
d. What matters more to Larry and Megan?
The relative price of rice and beans
This matters more to them because a change in prices of the commodities they sell could either benefit them or give them a loss regardless of the inflation rate.
Ornaments, Inc.,is an all-equity firm with a total market value of $520,000 and 18,500 shares of stock outstanding. Management believes the earnings before interest and taxes (EBIT) will be $73,000 if the economy is normal. If there is a recession, EBIT will be 10 percent lower, and if there is a boom, EBIT will be 20 percent higher. The tax rate is 40 percent. What is the EPS in a recession?
Answer:
2.1308
Explanation:
EPS recession = (EBIT normal * (1 - Reduction in recession) * (1 - Tax rate)/shares
EPS recession = ($73,000 * (1 - 0.1)) * (1 - 0.40)/18,500
EPS recession = $65,700 * 0.6 / 18,500
EPS recession = 2.130810810810811
EPS recession = 2.1308
Greene, Inc. uses the LIFO inventory method for external reporting and for income tax purposes but maintains its internal records using FIFO. The following disclosure note was included in a recent annual report:
Inventories ($ in millions):
2021 2020
Total inventories $600 $580
LIFO reserve (75) (50)
The company's income statement reported cost of goods sold of $2,750 million for the fiscal year ended December 31, 2021.
Required:
a. Drew adjusts the LIFO reserve (Allowance to Reduce Inventory to LIFO) at the end of its fiscal year. Prepare the December 31, 2021, adjusting entry to record the cost of goods sold adjustment.
b. If Drew had used FIFO to value its inventories, what would cost of goods sold have been for the 2021 fiscal year?
Answer:
a. Debit Cost of goods sold for $25; and Credit LIFO Reserve for $25.
b. Cost of goods sold in 2021 if FIFO is used would have been $2,775.
Explanation:
a. Greene adjusts the LIFO reserve (Allowance to Reduce Inventory to LIFO) at the end of its fiscal year. Prepare the December 31, 2021, adjusting entry to record the cost of goods sold adjustment.
Change in LIFO reserve = Current year LIFO reserve = LIFO Reserve balance in 2021 - LIFO Reserve balance in 2020 = $75 - $50 = $25
The adjusting entry will therefore look as follows:
Date General Journal Debit ($'m) Credit ($'m)
31 Dec 2021 Cost of goods sold 25
LIFO Reserve 25
(To record the cost of goods sold adjustment.)
b. If Green had used FIFO to value its inventories, what would cost of goods sold have been for the 2021 fiscal year?
This can be calculated as follows:
Cost of goods sold in 2021 if FIFO is used = Cost of goods sold reported in the income statement + Change in LIFO reserve = $2,750 + $25 = $2,775
Distributors have grown in their value and influence in the economy for the following reasons: 1) the rise in e-commerce has increased the B2B service demands 2) expanded direct market knowledge and customer knowledge of distributors, including the capacity to individualize customer strategies 3) _____________________________________________________________________________________ Group of answer choices
Answer:
Businesses have preferred their marketing strategy for B2B to be concise and to the point because businesses do not need persuasion like customers.
Explanation:
A company might choose B2B or B2C strategy depending on the their business strategy. It is easier for a business to opt for B2B marketing as the expense may be lower and there do not need persuasion for selling the product. The B2C is a tough marketing strategy as preference of different customers need to be kept in view.
Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 8% with semiannual payments of $40, and a par value of $1,000. The price of each bond in the issue is $1,196.00. The bond issue is callable in 5 years at a call price of $1,080. What is the bond's current yield
Answer:
6.69%
Explanation:
Price of Ace products bond issue = $1,196
Annual coupon payment = $80
Current yield = Annual coupon payment / Bond price
Current yield = $80/$1,196
Current yield = 0.0668896
Current yield = 6.69%
a company acquired a truck for 130,000 residual value was estimated to be $20,000 the truck can be driven for 50,000 miles or a useful life of four years. Actual usage of the truck was recorded as 10,000 miles for the first year. What is the amount of depreciation expesne for the first year calculated by the double
Answer:
$65,000
Explanation:
Depreciation Expense = 2 x SLDP x BVSLDP
where,
SLDP = 100 ÷ 4 = 25 %
BVSLDP = $130,000 (FIRST YEAR)
therefore,
Depreciation Expense = 2 x 25 % x $130,000 = $65,000
Flag As of January 1 of the current year, the Grackle Company had accounts receivables of $50,000. The sales for January, February, and March of 2012 were as follows: $120,000, $140,000 and $150,000. 20% of each months sales are for cash. Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with remaining 40% collected in the following month. What is the total cash collected (both from accounts receivable and for cash sales) in the month of february
Answer:
Grackle Company
The total cash collected (both from accounts receivable and for cash sales) in the month of february is:
= $133,600.
Explanation:
a) Data and Calculations:
January 1, Accounts receivables = $50,000
January 2012, Sales = $120,000
February 2012, Sales = $140,000
March 2012, Sales = $150,000
January February March
Sales $120,000 $140,000 $150,000
20% Cash Sales 24,000 28,000 30,000
80% Credit Sales 96,000 112,000 120,000
Cash Collections:
20% Cash Sales 24,000 28,000 30,000
60% month of sale 57,600 67,200 72,000
40% following month 50,000 38,400 44,800
Total collections $131,600 $133,600 $146,800
What is the eventual effect on real GDP if the government increases its purchases of goods and services by $50,000? Assume the marginal propensity to consume (MPC) is 0.75. $ What is the eventual effect on real GDP if the government, instead of changing its spending, increases transfers by $50,000? Assume the MPC has not changed. $ An increase in government transfers or taxes, as opposed to an increase in government purchases of goods and services, will result in
Answer:
a. The real GDP increases by $200,000.
a. The real GDP increases by $150,000.
Explanation:
a. What is the eventual effect on real GDP if the government increases its purchases of goods and services by $50,000?
Eventual effect on real GDP = Amount of increase in government spending * (1 /(1 - MPC)) = $50,000 * (1 / (1 – 0.75)) = $200,000
Therefore, the real GDP increases by $200,000.
a. What is the eventual effect on real GDP if the government, instead of changing its spending, increases transfers by $50,000?
Eventual effect on real GDP = (Amount of increase in government transfers * (1 /(1 - MPC))) - Amount of increase in government transfers = ($50,000 * (1 / (1 – 0.75))) - $50,000 = $150,000
Therefore, the real GDP increases by $150,000.
A guidance counselor at a high school is working on a project to get more girls interested in the Science, Technology, Engineering, and Mathematics career cluster, which students would be best prepared to enter this career cluster?
A)Those who are strong in art and creative writing.
B)Those who are strong in algebra and computer design.
C) Those who are strong in leadership and communication,
D) Those who are strong in foreign language and history
Answer:
its either b or c, im more confident about b though
Explanation
Answer:
b
Explanation:
Lillich, Inc., manufactures and sells two products: Product U6 and Product R5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product U6 690 8.9 6,141 Product R5 1,060 5.9 6,254 Total direct labor-hours 12,395 The direct labor rate is $28.00 per DLH. The direct materials cost per unit for each product is given below:
Direct Materials
Cost per Unit
Product U6 $250.40
Product R5 $167.80
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product U6 Product R5 Total
Labor-related DLHs $ 201,638 7,125 7,280 14,405
Production orders orders 72,840 1,350 1,250 2,600
Order size MHs 1,020,608 6,500 6,800 13,300
$ 1,295,086
Which of the following statements concerning the unit product cost of Product U6 is true? (Round your intermediate calculations to 2 decimal places.)
a. The unit product cost of Product U6 under traditional costing is greater than its unit product cost under activity-based costing by $340.31.
b. The unit product cost of Product U6 under traditional costing is less than its unit product cost under activity-based costing by $5.63.
c. The unit product cost of Product U6 under traditional costing is greater than its unit product cost under activity-based costing by $5.63.
d. The unit product cost of Product U6 under traditional costing is less than its unit product cost under activity-based costing by $340.31.
Answer:
Lillich, Inc.
c. The unit product cost of Product U6 under traditional costing is greater than its unit product cost under activity-based costing by $5.63.
Explanation:
a) Data and Calculations:
Direct labor rate = $28.00 per DLH
Product U6 Product R5 Total
Expected production 690 1,060
Direct materials cost/unit $250.40 $167.80
Direct Labor Hours/unit 8.9 5.9
Total direct labor hours 6,141 6,254 12,395
Direct labor costs $171,948 ($28*6,141) $175,112 ($28*6,254)
Total direct materials cost $172,776 ($250.4*690) $177,868 ($167.8*1,060)
Total overhead $636,360 $658,752 $1,295,112
Total production cost $981,084 $1,011,732
Expected production 690 1,060
Cost per unit $1,421.86 $954.46
Traditional costing:
Direct labor costs $171,948 ($28*6,141) $175,112 ($28*6,254)
Total direct materials cost $172,776 ($250.4*690) $177,868 ($167.8*1,060)
Total overhead $641,612 $653,418 $1,295,112
Total production cost $986,336 $1,006,398
Expected production 690 1,060
Cost per unit $1,429.47 $949.43
Allocation of overhead based on direct labor hours
= $ 1,295,086/12,395
= $104.48 per DLH
Product U6 = $641,612 ($104.48 * 6,141)
Product R5 = $653,418 ($104.48 * 6,254)
Estimated Expected Activity
Activity Cost Pools Activity Overhead Product Product Total
Measures Costs U6 R5
Labor-related DLHs $ 201,638 7,125 7,280 14,405
Production orders Orders 72,840 1,350 1,250 2,600
Order size MHs 1,020,608 6,500 6,800 13,300
Total $ 1,295,086
Overhead rates:
Labor-related = $201,638/14,405 = $14.00 per DLH
Production orders = $72,840/2,600 = $28.00 per order
Order size = $1,020,608/13,300 = $76.74 per machine hour
Overhead allocation:
Product U6 Product R5 Total
Labor-related $99,750 (7,125*$14) $101,920 (7,280*$14) $201,670
Production orders 37,800 (1,350*$28) 35,000 (1,250*$28) 72,800
Order size 498,810 (6,500*$76.74) 521,832 (6,800*$76.74) 1,020,642
Total overhead $636,360 $658,752 $1,295,112
Prepare a flexible budget for Cedar Jeans Company using production levels of 16,000, 18,000, and 20,000 units produced. The following is additional information necessary to complete the budget: Variable costs: Direct labor ($6.00 per unit) Direct materials ($8.00 per unit) Variable manufacturing costs ($2.50 per unit) Fixed costs: Supervisor's salaries $80,000 Rent 12,000 Depreciation on equipment 24,000
Answer:
Results are below.
Explanation:
Giving the following information:
Total unitary variable cost= $16.5
Total fixed costs= $116,000
Now, the flexible budget for each production level:
16,000 units:
Total variable cost= 16.5*16,000= 264,000
Total fixed cost= 116,000
Total costs= $380,000
18,000 units:
Total variable cost= 16.5*18,000= 297,000
Total fixed cost= 116,000
Total costs= $413,000
20,000 units:
Total variable cost= 16.5*20,000= 330,000
Total fixed cost= 116,000
Total costs= $446,000
Testbank Multiple Choice Question 81 At the beginning of 2020, Sunland Company issued 8% bonds with a face value of $5700000. These bonds mature in the five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $5259870 to yield 10%. Sunland uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2020
Answer:
$527,737
Explanation:
The Bond Payment or Coupon always includes the Interest Portion and the the Capital Potion. The question only requires the Interest Portion of the Bond.
The Bond Parameters can be set as :
PV = - $5,259,870
FV = $5,700,000
PMT = ($5,700,000 x 8%) ÷ 2 = $228,000
N = 5 x 2 = 10
YTM = 10 %
P/YR = 2
Constructing an amortization schedule for 2020 gives :
Date Capital Portion Interest Balance
June 30 $34,994 $262,994 $5,294,864
Dec 30 $36,743 $264,743 $5,331,607
Total $71,737 $527,737 $5,331,607
therefore,
The amount of interest expense to be reported for 2020 is $527,737
Use the cost information below for Laurels Company to determine the cost of goods manufactured during the current year: Direct materials used$5,000 Direct labor 7,000 Total factory overhead 5,100 Beginning work in process 3,000 Ending work in process 4,000 Multiple Choice $12,000. $16,100. $17,100. $18,100. $13,600.
Answer:
$16,100
Explanation:
Add the total manufacturing costs for the year to determine the cost of goods manufactured during the current year. Also remember to account for change in work in process inventory.
Use Annual Cost Analysis to determine whether Alternative A or B should be chosen. The analysis period is 5 years. Assume an interest rate of 6% per year, compounded annually Alternative A Alternative B Initial Cost 2800 6580 Annual Benefit 450 940 Salvage Value 500 1375 Useful Life (yrs) 5 5 Group of answer choices Alternative A should be chosen, because its initial cost is lower than Alternative B's Alternative A should be chosen, because its equivalent annual cost is $252.15 lower than Alternative B's Alternative B should be chosen, because its annual benefit is higher than Alternative A's Alternative B should be chosen, because its equivalent annual cost is $252.15 higher than Alternative A's
Answer:
A should be chosen, because its equivalent annual cost is $252.15 lower than Alternative B's.
Explanation:
a) Data and Calculations:
Interest rate = 6% per year
Alternative A Alternative B
Initial Cost 2800 6580
Annual Benefit 450 940
Salvage Value 500 1375
Useful Life (yrs) 5 5
Annuity factor = 4.212 for 5 years at 6%.
Present value factor = 0.747 for 5 years at 6%.
Alternative A Alternative B
Present value of
annual benefits $1,895.40 $3,959.28
PV of salvage value 373.50 1,027.12
Total present value
of benefits $2,268.90 $4,986.40
Initial Cost 2,800 6,580
Net present value $531.10 $1,593.60
The equivalent annual cost
= NPV/PV annuity factor
($531.10/4.212) ($1,593.60/4.212)
Equivalent annual cost $126.09 $378.35
Difference:
Alternative B = $378.35
Alternative A = $126.09
Difference = $252.26
"We are certainly in a better position in terms of diversity management than we were five years ago," said Patricia Collins-Jones, CEO of BetterFit, Inc. "We certainly have a more diverse employee population, and we have taken steps to involve people from different backgrounds in our business operations. However, I expect us to do more. We must be an organization where diversity not only exists, but is valued. We must ____________________."
Answer: fully integrate minority group members both formally and informally.
Explanation:
The options are:
a. Encourage monitory group members to adopt the norms of the majority.
b. fully integrate minority group members both formally and informally.
c. strive to build a more homogeneous employee population.
d. focus primarily upon employees visible differences like race or sex.
e. encourage more intergroup productive conflict.
Diversity simply refers to when people from different social, ethnic backgrounds or people from different races, religions, genders, etc are involved in a company or a particular thing.
Since the CEO calls for diversity to exist and be valued, the best option will be to fully integrate minority group members both formally and informally. This will help in making the minority group valued and also bring about diversity.
Other options are wrong as they either bring about discrimination or can bring about quarrel. Therefore, the correct option is B
Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year.Beginning Inventory Ending InventoryRaw material* 41,000 51,000Finished goods 81,000 51,000* Three pounds of raw material are needed to produce each unit of finished product.If Paradise Corporation plans to sell 485,000 units during next year, the number of units it would have to manufacture during the year would be:
Answer:
Production= 455,000 units
Explanation:
Giving the following information:
Beginning Inventory= 81,000
Ending Inventory= 51,000
Sales= 485,000
To calculate the production required for the period, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 485,000 + 51,000 - 81,000
Production= 455,000 units
Suppose the production of long-distance airline flights is described by a fixed proportion production process in which three crew members (i.e., labor) are required for each aircraft (i.e., capital). If the airline operates with four crew members per plane, then we know that: A. the production process violates diminishing margin returns. B. production at this point is technically inefficient. C. the isoquants for this production process are upward sloping. D. the airline will have negative profits.
Answer:
production at this point is technically inefficient.
Explanation:
The Factors of Production are simply the inputs in the production process such as labor, capital, materials.
The production function shows the various materials or recipes for producing a given level of output. It shows the output that can be produced if the firm is technically efficient.
Production at point of technically inefficient are said to be points in the production set but not on the production function.
Fixed Proportion Production Function is simply a Production function with L-shaped isoquants that is only one combination of labor and capital can be used to produce each level of output. It describes situations in which methods of production are limited.
The balance in Accounts Receivable at the beginning of the year amounted to $1,920. During the year, $7,160 of credit sales were made to customers. If the ending balance in Accounts Receivable amounted to $1,220, and uncollectible accounts expense amounted to $500, what is the amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement
Answer:
$7,360
Explanation:
To determine the amount of cash inflow from customers open a Total Receivable Account and determine the Cash Balance.
Total Receivable T - Account
Debit :
Beginning Balance $1,920
Credit Sales $7,160
Total $9,080
Credit :
Uncollectable expense $500
Cash Received (Balancing figure) $7,360
Ending Balance $1,220
Total $9,080
Conclusion :
the amount of cash inflow from customers is $7,360
Next
Unit 1 Quiz
6
This holiday season, the hottest gift was a doll named Sparkle Princess within a few hours all of the stores sold out their stack of this
People who had been fortunate enough to buy a doll began to sell their dolls on the internet. Thousands of people logged on to try to
be a
the few dolls that were being sold on the Internet. What MOST likely happened with the internet sales?
CA The price went down because the supply was low and the demand was high
B. The price went up because the supply was low and the demand was high
CC The price went down because the supply was high and the demand was low
D. The price went up because the supply was high and the demand was low
Reser
Answer:
The price went up because the supply was low and the demand was high.
I believe
Explanation:
Two alternatives, code-named X and Y, are under consideration at Guyer Corporation. Costs associated with the alternatives are listed below. Alternative X Alternative Y Materials costs $ 41,000 $ 59,000 Processing costs $ 45,000 $ 45,000 Equipment rental $ 17,000 $ 17,000 Occupancy costs $ 16,000 $ 24,000 Are the materials costs and processing costs relevant in the choice between alternatives X and Y
Answer: Only Material costs are relevant
Explanation:
The material cost under alternative X is given as $41000 while under alternative Y is given as $59000.
The processing cost under alternative X is given as $45000 while under alternative Y, the processing cost is given as $45000 as well.
Then, we can deduce that only the materials costs are relevant since the processing costs are thesame.
Computing Number of Shares
The charter of Vista West Corporation specifies that it is authorized to issue 212,000 shares of common stock. Since the company was incorporated, it has sold a total of 145,000 shares (at $16 per share) to the public. It has bought back a total of 15,000. The par value of the stock is $6. When the stock was bought back from the public, the market price was $23.
Required:
1. Determine the authorized shares.
2. Determine the issued shares.
3. Determine the outstanding shares.
Answer: See explanation
Explanation:
1. Determine the authorized shares.
The authorized share simply refers to the maximum number of shares that can be issued by a particular company. In this case, the authorised share is 212000.
2. Determine the issued shares.
The issued share simply means the shares sold. In this case, the answer is 145000 shares.
3. Determine the outstanding shares.
The outstanding shares will be:
= 145000 - 15000
= 130000
Prepare the journal entry for the issuance of these bonds. Assume the bonds are issued for cash on January 1, 2017. Garcia Company issues 8.00%, 15-year bonds with a par value of $290,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6.00%, which implies a selling price of 114 3/4.
Answer:
Dr Cash $332,775
Cr Bonds payable $290,000
Cr Premium on bonds payable $42,775
Explanation:
Preparation of the journal entry to record the issuance of these bonds. Assume the bonds are issued for cash on January 1, 2017
Based on the information given the journal entry to record the issuance of these bonds will be:
Dr Cash ($290000/100*114.75) $332,775
Cr Bonds payable $290,000
Cr Premium on bonds payable ($332,775-$290,000) $42,775
(To record issuance of bonds)
One reason critics think advertising is wasteful is that: a. advertising is silent about things like product quality. b. businesses use deceptive methods of advertising which is harmful for consumers. c. large sums of money are spent on advertising that produces no consumer benefit. d. most ads are distasteful and send the wrong messages to consumers.
Answer:
c. large sums of money are spent on advertising that produces no consumer benefit
Explanation:
Critics consider advertising to be a waste because they believe that there is a large amount of financial resources being spent on advertising that will not be converted into benefits for the consumer, that is, they believe that it is a lot of money spent on communication marketing that it should be spent on product development, for example, in the form of converting investments into physical benefits that add greater value to the product and greater satisfaction for the consumer.
But a company that wants to become competitive and well positioned in the market, must allocate financial resources so that both things can be carried out, because advertising is extremely necessary to attract and retain potential consumers, since there is currently a great offer of them products available on the market and the company needs to develop a strategy that attracts consumers to its product, which can occur through well-developed advertising that generates consumer engagement and identification with the offered product.
Jim is a lawyer who requires that his clients pay him in advance of legal services rendered. Jim routinely credits Legal Service Revenue when his clients pay him in advance. In June Jim collected $12,000 in advance fees and completed 75% of the work related to these fees. What adjusting entry is required by Jim's firm at the end of June
Answer:
Legal Service Revenue Dr $3000
Unearned Revenue Cr $3000
This is due to the fact that the amount of 25% of the work is undone. Hence, it is recorded as a liability and since it is earned, it is shown as unearned revenue.
The adjusting entry required as a result of Jim collecting money in advance is:
Date Account Title Debit Credit
June XXXX Legal Service Revenue $3,000
Unearned Revenue $3,000
Revenue should only be recognized when the work related to it has been done. Jim only managed to do 75% of the work which means that revenue cannot be recognized on 25%.
This 25% is:
= 25% x 12,000
= $3,000
This amount will be credited to the Unearned Revenue account until Jim completes the work.
Find out more at https://brainly.com/question/13929809.
Feng needs to export Access data that contains a table of contacts. This table will be used to create personalized
mailings. Which type of export should he choose?
O Access
O Word Merge
O Excel
O XML file
Answer:
if i answer this pls answer mine the answer is b
Explanation:
The table and scatterplot shows the additional plant growth measured each day for particular days.
Which two points should the trend line go through to best represent the data given in this scatterplot?
2, 1) and (3, 1.5)
(2, 1) and (5, 2)
(6, 2) and (8, 2)
(6, 2) and (10.1.75)
do you know the answer to this
What method can help to avoid typos when writing a function that includes a range?
Answer:
clicking and dragging to select the range
Deborah's Performance Pizza is a small restaurant in San Francisco that sells gluten-free pizzas. Deborah's very tiny kitchen has barely enough room for the two ovens in which her workers bake the pizzas. Deborah signed a lease obligating her to pay the rent for the two ovens for the next year. Because of this, and because Deborah's kitchen cannot fit more than two ovens, Deborah cannot change the number of ovens she uses in her production of pizzas in the short run.
However, Deborah's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Deborah lets them know how many workers she needs for each day of the week. In the short run, these workers are__________ inputs, and the ovens are__________ inputs.
Answer:
✓VARIABLE Correct inputs
✓FIXED Correct inputs.
Explanation:
Variable inputs can be regarded as resources, it can also be called factor of production that can undergo change in the short run by a company as a result of the company changing quantity of output produced. These variable inputs in short-run could be labor as well as material inputs.
Fixed inputs can be regarded as resources it can also be called factor of production that cannot undergo change in the short run by a company as a result of the company changing quantity of output produced. These fixed inputs in short-run could be building as well as lands