Diego Company manufactures one product that is sold for $73 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 56,000 units and sold 51,000 units. Variable costs per unit: Manufacturing: Direct materials $ 24 Direct labor $ 16 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 784,000 Fixed selling and administrative expense $ 672,000 The company sold 38,000 units in the East region and 13,000 units in the West region. It determined that $300,000 of its fixed selling and administrative expense is traceable to the West region, $250,000 is traceable to the East region, and the remaining $122,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. Foundational 6-10 10. What would have been the company’s variable costing net operating income (loss) if it had produced and sold 51,000 units? You do not need to perform any calculations to answer this question.

Answers

Answer 1

Answer:

Net operating income= (28,000)

Explanation:

Giving the following information:

Selling price per unit= $73

Total unitary variable production cost= (24 + 16 + 2 + 3)= $45

Fixed manufacturing overhead $ 784,000

Fixed selling and administrative expense $ 672,000

Under the variable costing method, the fixed manufacturing overhead is a period cost instead of a product cost.

Variable costing income statement:

Sales= 73*51,000= 3,723,000

Total variable cost= 51,000*45= (2,295,000)

Contribution margin= 1,428,000

Fixed manufacturing overhead= (784,000)

Fixed selling and administrative expense= (672,000)

Net operating income= (28,000)


Related Questions

Stellar Corporation was organized on January 1, 2020. It is authorized to issue 9,100 shares of 8%, $100 par value preferred stock, and 525,800 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year.

Jan. 10 Issued 80,170 shares of common stock for cash at $6 per share.
Mar. 1 Issued 5,410 shares of preferred stock for cash at $112 per share.
Apr. 1 Issued 24,730 shares of common stock for land. The asking price of the land was $91,570; the fair value of the land was $80,170.
May 1 Issued 80,170 shares of common stock for cash at $9 per share.
Aug. 1 Issued 9,100 shares of common stock to attorneys in payment of their bill of $50,100 for services rendered in helping the company organize.
Sept. 1 Issued 9,100 shares of common stock for cash at $11 per share.
Nov. 1 Issued 1,010 shares of preferred stock for cash at $106 per share.

Required:
Prepare the journal entries to record the above transactions.

Answers

Answer:

Jan-10

Dr Cash $ 481,020

Cr Common stock $ 80,170

Cr Additional paid in capital in excess of stated value - Common stock $ 400,850

Mar-01

Dr Cash $ 605,920

Cr Preferred stock $ 541,000

Cr Additional paid in capital in excess of par value - Preferred stock $ 64,920

Apr-01

Dr Land $ 80,170

Cr Common stock $ 24,730

Cr Additional paid in capital in excess of stated value - Common stock $55,440

May-01

Dr Cash $ 721,530

Cr Common stock $ 80,170

Cr Additional paid in capital in excess of stated value - Common stock $ 641,360

Aug-01

Dr Incorporation charges / Legal charges $ 50,100

Cr Common stock $ 9,100

Cr Additional paid in capital in excess of stated value - Common stock $ 41,000

Sep-01

Dr Cash $ 100,100

Cr Common stock $ 9,100

Cr Additional paid in capital in excess of stated value - Common stock $ 91,000

Nov-01

Dr Cash $ 107, 060

Cr Preferred stock $ 101,000

Cr Additional paid in capital in excess of par value - Preferred stock $ 6,060

Explanation:

Preparation of Journal entries

Jan-10

Dr Cash (80,170 * $6) $ 481,020

Cr Common stock (80,170*$1) $ 80,170

Cr Additional paid in capital in excess of stated value - Common stock $ 400,850

(481,020-80,170)

Mar-01

Dr Cash (5,410*$112) $ 605,920

Cr Preferred stock (5,410*$100) $ 541,000

Cr Additional paid in capital in excess of par value - Preferred stock $ 64,920

(605,920-541,000)

Apr-01

Dr Land $ 80,170

Cr Common stock (24,730*$1) $ 24,730

Cr Additional paid in capital in excess of stated value - Common stock $55,440

(80,170-24,730)

May-01

Dr Cash (80,170 * $9) $ 721,530

Cr Common stock (80,170*$1) $ 80,170

Cr Additional paid in capital in excess of stated value - Common stock $ 641,360

(721,530-80,170)

Aug-01

Dr Incorporation charges / Legal charges $ 50,100

Cr Common stock (9,100*$1) $ 9,100

Cr Additional paid in capital in excess of stated value - Common stock $ 41,000

(50,100-9,100)

Sep-01

Dr Cash (9,100 * $11) $ 100,100

Cr Common stock (9,100*$1) $ 9,100

Cr Additional paid in capital in excess of stated value - Common stock $ 91,000

(100,100-9,100)

Nov-01

Dr Cash (1,010*$106) $ 107, 060

Cr Preferred stock (1,010*$100) $ 101,000

Cr Additional paid in capital in excess of par value - Preferred stock $ 6,060

(107,060-101,000)

Kiyara (single) is a 50 percent shareholder of Jazz Corporation (an S Corporation). Kiyara does not do any work for Jazz Corp. Jazz Corp. reported $300,000 of business income for the year (2020). Before considering her business income allocation from Jazz Corp. and the self-employment tax deduction (if any), Kiyara’s adjusted gross income was $250,000 (all employee salary). Answer the following questions for Kiyara. (Leave no answer blank. Enter zero if applicable.)

Required:
a. Assuming the income allocated to Kiyara is qualified business income, what is Kiyara’s deduction for qualified business income?
b. What is Kiyara’s additional Medicare tax liability (include all earned income)?

Answers

Answer:

(a)  $30,000

(b) $1,800

Explanation:

(a)

Business Income allocated will be:

= [tex]3,00,000\times 50 \ percent[/tex]

= [tex]150,000[/tex] ($)

Qualified Business Income

= [tex]150,000[/tex] ($)

For Qualified Business Income, deduction will be:

= [tex]150,000\times 20 \ percent[/tex]

= [tex]30,000[/tex] ($)

(b)

Whenever your net earnings from self-employment continue to increase $200,000 whether you're a singular filer, a 0.90 percent extra free Medicare tax may very well implement.

Additional Medicare Tax Liability will be:

= [tex][(250,000 + 150,000) - 200,000]\times 0.90 \ percent[/tex]

= [tex]$200,000\times 0.90 \ percent[/tex]

= [tex]1,800[/tex] ($)

The Corporation determines that at current​ prices, the demand for its computer chips has a price elasticity of 2 in the short​ run, while the price elasticity for its disk drives is 1. If the corporation decides to raise the price of both products by ​percent, what will happen to its​ sales? Sales of computer chips will ▼ decrease increase by nothing percent and sales of disk drives will ▼ decrease increase by nothing percent. ​(Enter your responses here and below using integers.​) What will happen to sales​ revenue? Computer chip sales revenue will ▼ decrease increase .

Answers

Answer:

Sales of computer chips will ▼ decrease by 40% and sales of disk drives will ▼ decrease by 20%.

What will happen to sales​ revenue? Computer chip sales revenue will ▼ decrease

Explanation:

The numbers are missing, so I looked for a similar question:

The ACME Corporation determines that at current​ prices, the demand for its computer chips has a price elasticity of -2 in the short​ run, while the price elasticity for its disk drives is  -1. If the corporation decides to raise the price of both products by 20 ​percent, what will happen to its​ sales?

When a product's PED = -2 (price elastic), a 1% increase in price will result in a 2% decrease in quantity demanded.

When a product's PED = -1 (price unitary elastic), a 1% increase in price will result in a 1% decrease in quantity demanded.

The ledger of Shamrock, Inc. on March 31, 2022, includes the following selected accounts before adjusting entries.

Debit Credit
Supplies 2,780
Prepaid Insurance 2,240
Equipment 25,500
Unearned Service Revenue 14,700

An analysis of the accounts shows the following.

1. Insurance expires at the rate of $280 per month.
2. Supplies on hand total $890.
3. The equipment depreciates $170 per month.
4. During March, services were performed for two-fifths of the unearned service revenue.

Required:
Prepare the adjusting entries for the month of March.

Answers

Answer:

Shamrock, Inc.

Adjusting Journal Entries:

1. Debit Insurance Expense $280

  Credit Prepaid Insurance $280

  To record insurance expense for the month.

2. Debit Supplies Expense $1,890

   Credit Supplies $1,890

   To record supplies expense for the month.

3. Debit Depreciation Expense - Equipment $170

   Credit Accumulated Depreciation- Equipment $170

   To record depreciation expense for the month.

4. Debit Unearned Service Revenue $5,880

   Credit Service Revenue $5,880

   To record earned service revenue for the month.

Explanation:

a) Data:

Selected Accounts:

                                Debit     Credit

Supplies                  2,780

Prepaid Insurance                  2,240

Equipment           25,500

Unearned Service Revenue 14,700

b) The above adjusting entries at the end of March are made by Shamrock in order to accurately recognize its revenue and expenses for the month of March.  These entries are in line with the accrual concept and matching principle of generally accepted accounting principles.  They require that revenues or expenses earned or incurred in a period be recognized and matched in the affected period, whether cash was exchanged or not.

Winnebago​ Industries, Inc. is a leading manufacturer of recreational vehicles​ (RVs), including motorized and towable products. The company​ designs, develops,​ manufactures, and markets RVs as well as supporting products and services. The RVs are sold to consumers through a dealer network. On the August​ 29, 2015, balance​ sheet, Winnebago reported inventory of approximately​ $112 million. Of this​ amount, approximately​ $12 million, about​ 11%, was Finished Goods Inventory​ (Notes to Consolidated Financial​ Statements, Note​ 3). Suppose Winnebago motor homes have an average sales price of​ $96,000 and cost of goods sold is​ 89% of sales. Thor​ Industries, Inc., a major​ competitor, has an average cost of goods sold of​ 86% of sales. For year ending August​ 29, 2015, Winnebago sold​ 9,097 motor homes​ (Form 10-K, Item 1​ Business).

Required:
a. Why would the Finished Goods Inventory be such a relatively small portion of total inventory?
b. What is the average cost of goods sold (in dollars) for a Winnebago motor home? What is the average gross profit?
c. If Winnebago could reduce production costs so that the average cost of goods sold is equal to their competitor’s average cost of goods sold, how much more profit would Winnebago earn on each motor home sold?
d. Based on 2015 sales, how much would operating income increase if the company reduced the average cost of goods sold to equal their competitor’s average cost of goods sold?
e. How could managers at Winnebago use managerial accounting to reduce costs and increase profits?

Answers

Answer:

a. Why would the Finished Goods Inventory be such a relatively small portion of total inventory?

Winnebago has a relatively small inventory of finished units because it sells them through independent dealerships. This means that once the units are finished, they are swiftly sold to dealerships.  

b. What is the average cost of goods sold (in dollars) for a Winnebago motor home? What is the average gross profit?

average sales price = $96,000

average COGS = $85,440

average gross profit = $10,560

c. If Winnebago could reduce production costs so that the average cost of goods sold is equal to their competitor’s average cost of goods sold, how much more profit would Winnebago earn on each motor home sold?

new average COGS = $82,560

new average gross profit = $13,440

incremental gross profit = $13,440 - $10,560 = $2,880

d. Based on 2015 sales, how much would operating income increase if the company reduced the average cost of goods sold to equal their competitor’s average cost of goods sold?

9,097 motor homes x $2,880 = $26,199,360 incremental operating income

e. How could managers at Winnebago use managerial accounting to reduce costs and increase profits?

managerial accounting can be used to better plan and control production costs, including making decisions about future investments that can help to reduce costs, e.g. purchase of new machinery, changing productive systems, changing cash collection and payment schedules, etc.  

Place the following U.S. markets in order from least competitive to most competitive.

Middletown Regional Electric company, the only provider of electricity to the region.

Coca-Cola Company, one of two main firms in the beverage market.

Tony's Tomatoes, a tomato seller at a farmer's market with many other tomato sellers.

Answers

The U.S. markets listed in order from least competitive to most competitive are:

Middletown Regional Electric company, the only provider of electricity to the region.Coca-Cola Company, one of two main firms in the beverage market.Tony's Tomatoes, a tomato seller at a farmer's market with many other tomato sellers.

What determines competitiveness?

A market that is considered to be competitive is a market that has more sellers. In other words, the more sellers and providers available, the higher the competitiveness.

The Middletown Regional Electric company will therefore be the least competitive followed by Coca-Cola. Finally, the most competitive will be a market that has many tomato sellers.

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JJ Construction Inc. entered into a contract with a customer to build a movable storage facility on January 1, 2020, for $1,500,000. JJ Construction Inc. owns the work in process and constructs this type of storage unit for a number of customers. The customer made a down payment of 10% of the project, with an additional 10% due at the end of year one and the remaining due when it takes control of the facility. The facility is expected to be completed in two years for a total cost of $1,200,000. Actual costs incurred through December 31, 2020, are $500,000. Determine the amount of revenue to record in 2020.

Answers

Based on the information given the amount of revenue to record in 2020  is: $630,000.

Revenue

First step is to calculate the % of work completed by December 31, 2020

% of work completed by December 31, 2020 = Actual cost incurred / Total estimated costs

% of work completed by December 31, 2020=$500,000 / $1,200,000

% of work completed by December 31, 2020=41.6%

% of work completed by December 31, 2020= 42%(Approximately)

Now let calculate the amount of revenue to record in 2020

Amount of revenue to record in 2020 = Total contract price×% completion

Amount of revenue to record in 2020 = $1,500,000×42%

Amount of revenue to record in 2020 = $630,000

Therefore the amount of revenue to record in 2020 assuming that the cost-to-cost method is used is $630,000.

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Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method.

Nov. 5 Purchased 900 units of product at a cost of $10 per unit. Terms of the sale are 4/10, n/60; the invoice is dated November 5.
Nov. 7 Returned 35 defective units from the November 5 purchase and received full credit.
Nov. 15 Paid the amount due from the November 5 purchase, minus the return on November 7.

Answers

Answer:

Nov 05

Dr Merchandise inventory 9,000

Cr Accounts payable 9,000

Nov 07

Dr Accounts payable 350

Cr Merchandise inventory 350

Nov 15

Dr Accounts payable 8,650

Cr Merchandise inventory 346

Cr Cash 8,304

Explanation:

Preparation of Journal entries

Based on the information given we were told that on Nov. 5 the company Purchased 900 units of product at the amount of $10 per unit which means that the Journal entry will be:

Nov 05

Dr Merchandise inventory 9,000

Cr Accounts payable 9,000

(900 units *$10 per units)

Based on the information given we were told that the company on Nov. 7 Returned 35 defective units from the the month of November 5 purchase in which they received full credit which means that the Journal entry will be:

Nov 07

Dr Accounts payable 350

Cr Merchandise inventory 350

(35*$10 per units)

Based on the information given we were told that the company on Nov. 15 Paid the amount of money due from the month of November 5 purchase in which they minus the return on November 7 which means that the Journal entry will be:

Nov 15

Dr Accounts payable 8,650

(9,000- 350)

Cr Merchandise inventory 346

(4%*8,650)

Cr Cash 8,304

(8,650-346)

Suppose at December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley Inc.: ending inventory $150,221; beginning inventory $109,841; cost of goods sold $349,744 and sales revenue $694,487. Calculate the inventory turnover for Oakley, Inc. (Round inventory turnover to 2 decimal places, e.g. 5.12.) Inventory turnover enter Inventory turnover rounded to 2 decimal places times eTextbook and Media List of Accounts Calculate the days in inventory for Oakley, Inc. (Round days in inventory to 0 decimal places, e.g. 125.) Days in inventory enter Days in inventory rounded to 0 decimal places days

Answers

Answer:

1. 2.69 times

2. 135.70 days

Explanation:

The computation of inventory turnover is shown below:-

Inventory Turnover Ratio = Cost of Goods Sold ÷ Average Inventory

Average Inventory = Opening inventory + Closing Inventory ÷ 2

= ($109,841 + $150,221) ÷ 2

= $130,031

Inventory Turnover Ratio = $349,744 ÷ $130,031

= 2.69 times

The computation of days in inventory is shown below:-

Days in Inventory = Average Inventory ÷ Cost of Goods Sold × 365

= $130,031 ÷ $349,744 × 365

= 135.70 days

Ramniwas, a book-keeper, taking out a trial balance as on 31st March 2005, found that its debit and credit columns did not agree. He proceeded to check the entries and discovered the following errors:



A credit sale of Rs. 1,000 to Ajay had been correctly entered in the Sales Book but Ajay’s Account had been debited with Rs. 100 only.



The total of the Bills Payable Book Rs. 5,000 had been posted to the credit of Bills Receivable Account.



Rs. 2,500 paid to Ram had been wrongly posted to Shyam.



Rs. 100 owing by a customer had been omitted from the list of debtors.



The discount column of the Cash Book representing discount allowed to customer has been over-added by Rs. 10.



Goods worth Rs. 100 taken by the proprietor omitted to be recorded in the books.



Depreciation on furniture Rs. 100, had not been posted to Depreciation Account.



The total of Sales Book had been added Rs. 1,000 short.





Which of the above errors caused the totals of the Trial Balance to disagree and by how much did the totals differ?

Answers

Answer:

Ramniwas Bookkeeper

A. The errors that caused the totals of the Trial Balance to disagree are:

1. A credit sale of Rs. 1,000 to Ajay had been correctly entered in the Sales Book but Ajay’s Account had been debited with Rs. 100 only.

2. The discount column of the Cash Book representing discount allowed to customer has been over-added by Rs. 10.

3. The total of Sales Book had been added Rs. 1,000 short.

B. The totals disagreed by:

Understated debit    Rs. 900

Overstated debit              (10)

Understated credit     (1,000)

Totals disagreed by   Rs. 110

Explanation:

a) Correction of Errors on the Trial Balance, March 31:

Account Title                             Debit       Credit

Account receivable (Ajayi's)   Rs. 900

Accounts Payable                                    Rs. 5,000

Accounts Receivable                5,000

Shyam                                       2,500

Ram                                                               2,500

Cash Discount Allowed                                     10

Drawings                                      100

Inventory                                                          100

Depreciation Expense                100

Accumulated Depreciation                             100

Sales Revenue                                             1,000

Totals                                Rs. 8,600     Rs.  8,710

b) Credit side of the Trial Balance was greater by Rs. 110 (Rs. 8,710 - Rs. 8,600).

Vistakon, the maker of Acuvue brand contact lenses, is working on a new product launch. They are best known for their Acuvue 2 contact lenses, but are planning to launch Acuvue 3, which will provide 40% more moisture than Acuvue 2. The extra moisture will make the lenses more comfortable and cause less irritation. Vistakon has been in the new product planning process for a year. Currently, they are trying to determine the cannibalization rate of Acuvue 3. They believe that 30% of Acuvue 3 sales will come from Acuvue 2. Which stage of the new product planning process are they in

Answers

Answer:

They are in the 4th stage. The business analysis stage

Explanation:

In the new product process, this is the 4th stage. Concept tests are tests given to new­product idea take note that it's not the actual product, with consumers. From this question, we have been told that Vistakon has already gone ahead of past concept tests, it is shown that what their focus is on right now is the marketing and also the finance side. This is obvious given that that they are doing cannibalization and already projecting on sales.

The stage of the new product planning process are they in is 4th stage i.e. business analysis stage

Concept test:

It is the tests provided to new­product idea take note that it's not the actual product, along with consumers. Since in the question it is mentioned Vistakon has already gone ahead of past concept tests, it is presented that what their focus is on right now that represent the marketing and also the finance side.

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Information used to examine the profit margin management path comes from the retailer's income statement, which summarizes a firm's financial performance over a period of time. The information used to analyze a retailer's asset management path primarily comes from the retailer's balance sheet. Whereas the income statement summarizes the financial performance over a period of time, the balance sheet summarizes a retailer's financial position at a given point in time, typically at the end of the fiscal year.

The strategic profit model is a method for summarizing the factors that affect a firm's financial performance, as measured by return on assets. Return on assets is an important performance measure for a firm and its stockholders because it measures the profits that a firm makes relative to the assets it possesses. The strategic profit model decomposes ROA into two components: (1) operating profit margin percentage and (2) asset turnover. These two components illustrate that ROA is determined by two sets of activitiesâprofit margin management and asset turnover managementâand that a high ROA can be achieved by various combinations of operating profit margins and asset turnover levels.


1. Net Sales minus cost Of Goods sold
2. Net Profit Margin Percentage divided by Asset Turnover
3. Total Current Assets plus Total Fixed Assets
4. Net Profit before Taxes minus Taxes
5. Net Profit after Taxes divided by Net Sales
6. Gross Margin minus Operating Expenses
7. Net Sales divided by Total Assets


Match each of the options above to the items below.

a. Total Assets (All of the retailers combined assets)
b. Asset Turnover (This financial measure assesses the productivity of a firm's investment in its assets and indicates how many dollars are generated for each dollar Of assets)
c. Gross Margin (This measure indicates how much profit the retailer is making on merchandise sold, without considering the expenses associated with operating the store)
d. Net Operating Profit before Taxes (This measure Indicates how much profit a retailer is making before taxes are taken out)
e. Net Profit after Taxes (This measure indicates how much profit a retailer is making after taxes are taken out)
f. Net Profit Margin Percent (This financial measure is expressed as a percentage of net sales to facilitate comparisons across items, categories, and departments)
g. Return on Assets (This financial measure evaluates the profit generated by the assets possessed by the firm)

Answers

Answer:

Explanation:

question a) Total current assets plus the total fixed assets results in total assets.

question b) Net sales over total assets results in asset turnover.

question c) Net slaves minus cost of goods sold is equal to gross margin

question d) gross margin minus operating expenses is equal to net operating profits (before tax)

question e) Net profit before tax minus taxes is equal to net profit (after tax)

question f) Net profit after tax over net sales is equal to net profit margin (%)

question g) Net profit margin(%) over asset turnover is equal to return on assets.

Colin is 40 years old and wants to retire in 27 years. His family has a history of living well into their 90s. Therefore, he estimates that he will live to age 95. He currently has a salary of $150,000 and expects that he will need about 75% of that amount annually if he were retired. He can earn 8 percent from his portfolio and expects inflation to continue at 3 percent. Some years ago, he worked for the government and expects to receive an annuity that will pay him $20,000 in today’s dollars per year beginning at age 67. The annuity includes a cost of living adjustment, which is equal to inflation. Colin currently has $200,000 invested for his retirement. His Social Security benefit in today’s dollars is $30,000 per year at normal age retirement of age 67. How much does he need to accumulate at age 67 exclusive of his pension and Social Security benefits? Group of answer choices $2.1 million. $2.2 million. $2.8 million. $2.9 million.

Answers

Answer:

$2.1 million

Explanation:

Colin will retire at 67 and expects to live 28 more years. Be believes that he will need approximately $112,500 (in current dollars) per year to live while he is retired. His social security benefits are $30,000 + $20,000 in a government sponsored annuity (in current dollars) per year, so that means that he needs to cover the remaining $62,500. In order to calculate this, I will assume that Colin receives his first distribution on his 67th birthday (annuity due) and each distribution is made on an annual basis and received on the subsequent birthdays until he turns 94 (28th distribution).  

The $62,500 that Jordan expects to need once he retires must be adjusted to inflation (3%). In 27 years they will equal $62,500 x (1 + 3%)²⁷ = $138,830.56

Using an excel spreadsheet, I calculated the present value of Colin's 28 distributions using an 8% discount rate = $2,064,637.04 , which we can round up to $2.1 million

Colin currently has $200,000 in his retirement account and in 27 years (age 67), his account will be worth $200,000 x (1 + 8%)²⁷ = $1,597,612.29

this means that Colin will be $2,064,637.04 - $1,597,612.29  = $467,024.75 short

using the future value of an annuity formula, we can calculate the annual contribution:

annual contribution = future value / annuity factor

future value = $467,024.75 FV annuity factor, 8%, 27 periods = 87.35077

annual contribution = $467,024.75 / 87.35077 = $5,346.54

DEBIT OR CREDIT - ACCOUNTING
1. Accrued Expenses are increased with a _______________
2. Salaries Expense is increased with a _______________
3. The Equipment accounts is increased with a _______________
4. The Sales Revenue account is increased with a _______________

Answers

1. Credit
2. Debit
3. Debit
4. Credit

Albert established a qualified tuition program for each of his twins, Kim and Jim. He started each fund with $20,000 when the children were five years old. Albert made no further contributions to his children's plans. Thirteen years later, both children have graduated from high school. Kim's fund has accumulated to $45,000, and Jim's has accumulated to $42,000. Kim decides to attend a state university, which will cost $60,000 for four years (tuition, fees, room and board, and books). Jim decides to going to work instead of going to college. During the current year, $7,500 is used from Kim's plan to pay the cost of her first semester in college. Because Jim is not going to college now or in the future, Albert withdraws the $42,000 plan balance and gives it to Jim to start his new life after high school.

Required:
a. During the period since the plans were established, should Albert or the twins have been including the annual plan earnings in gross income?
b. What are the tax consequences to Kim and Albert of the $7,500 being used for the first semester's higher education costs?
c. Because of her participation in the qualified tuition program, Kim received a 10% reduction in tuition charges; so less than $7,500 was withdrawn from her account. Is either Albert or Kim required to include the value of this discount in gross income?
d. What are the tax consequences to Albert of Jim's qualified tuition program being closed?

Answers

Question attached

Answer and Explanation:

1. No. The earnings from the fund would not be included in gross income so long as it is for higher education expenses and has not been withdrawn for any other purpose.

2. There are no tax consequences since the $7500 is used for qualified higher education expenses

3. There are no tax consequences even there was a discountvor reduction in tuition as long as the qualifies tuition program funds was used for higher education expenses

4. If account is closed and for instance there is a refund, there are tax consequences as the excess interest over and above amount contributed must be included in gross income

In the market for blue shirts, if the price of green shirts falls,
a. Which curve will shift?
b. Along which curve will price and quantity move?
c. At the new equilibrium, will price be higher or lower?
d. At the new equilibrium, will quantity be higher or lower?

Answers

Answer:

the demand curve for blue shirts would shift

the blue shirt's demand curve

lower

lower

Explanation

Blue shirts and green shirts are substitute goods.

Substitute goods are goods that can be used in place of another good.

If the price of green shirts falls, green shirts become cheaper and the quantity demanded of green shirts increase.

As a result of the increase in demand for green shirts, the demand for blue shirts would fall. the would lead to a leftward shift of the demand curve. As a result equilibrium price and quantity would fall.

Two blocks are connected by a very light string passing over a massless and frictionless pulley. Traveling at constant speed, the 20.0-N block moves 76.0 cm to the right and the 12.0-N block moves 76.0 cm downward.

Required:
a. During this process, how much work is done on the 12.0-N block by gravity?
b. During this process, how much work is done on the 12.0-N block by the tension in the string?
c. During this process, how much work is done on the 20.0-N block by gravity?
d. During this process, how much work is done on the 20.0-N block by the tension in the string?
e. During this process, how much work is done on the 20.0-N block by friction?
f. During this process, how much work is done on the 20.0-N block by the normal force?

Answers

Answer:

a) 9.12 Joules

b) - 9.12 Joules

c) 0

d) 9.12 Joules

e) -9.12 Joules

f) 0

Explanation:

a. During this process, how much work is done on the 12.0-N block by gravity?

Work done = Force(N) × Distance(d)

Distance = 76 cm

100 cm = 1m

76cm =

Cross Multiply

= 76cm × 1 m/ 100cm

= 0.76m

Work done = 0.76m × 12N

= 9.12 Joules

b. During this process, how much work is done on the 12.0-N block by the tension in the string?

Tension: This always occurs in an equal and opposite direction,hence:

Force = 12N, Tension = -12N

Work done = Tension(N) × Distance(d)

Distance = 76 cm

100 cm = 1m

76cm =

Cross Multiply

= 76cm × 1 m/ 100cm

= 0.76m

Work done = 0.76m × -12N

= - 9.12 Joules

c. During this process, how much work is done on the 20.0-N block by gravity?

= This 20.0N block is not moving up or down , therefore, the work done on the block by gravity is Zero = 0

d. During this process, how much work is done on the 20.0-N block by the tension in the string?

Frictional force = -12N because the Box moves in the same direction, hence:

= Tension = 12N

Work done = Tension (N) × Distance(d)

Distance = 76 cm

100 cm = 1m

76cm =

Cross Multiply

= 76cm × 1 m/ 100cm

= 0.76m

Work done = 0.76m × 12N

= +9.12 Joules

e. During this process, how much work is done on the 20.0-N block by friction?

This time around Friction is on the opposite side of Tension.

Hence:

Tension = 12N, Frictional force = -12N

Work done = Frictional force (N) × Distance(d)

Distance = 76 cm

100 cm = 1m

76cm =

Cross Multiply

= 76cm × 1 m/ 100cm

= 0.76m

Work done = 0.76m × -12N

= - 9.12 Joules

= -9.12 Joules

f. During this process, how much work is done on the 20.0-N block by the normal force?

The 20.0N block is neither moving up or down hence, the work done on the 20.0N block by the normal force is zero (0)

Since the end of the recession in 2009. small businesses have
a. decreased in number:
b. contributed an average of $2 billion per year to the U.S. economy.
c. struggled more than large businesses
d. generated the majority of new jobs.​

Answers

Answer:

d. generated the majority of new jobs.​

Explanation:

Like other major recessions, the 2009 USA recession was characterized by substantial job losses. Many skilled employees become jobless. To earn a living, many of these skilled workers started small businesses. A majority had savings from their former employment.

Since then, the number of small businesses in the USA has grown tremendously. To date, small businesses are the largest employers in the USA.  A huge percentage of the new jobs created in the US economy originate from small businesses.

(CO 3) On the production line the company finds that 90.2% of products are made correctly. You are responsible for quality control and take batches of 30 products from the line and test them. What number of the 30 being correctly made would cause you to shut down production

Answers

Any number that is less than 27.06 would cause you to shut down production.

What Number Would Cause a Production Shut-Down?

The calculation can be done as follows:

Probability of correctly made product = 90.2%

Probability of NOT correctly made product = 100% - Probability of correctly made product = 100% - 90.2% = 9.80%

Number of products in the batches being tested = 30

The average number of products NOT correctly made = Probability of NOT correctly made product * Number of products in the batches being tested = 9.80% * 30 = 2.94

The average number of products correctly made = Probability of correctly made product * Number of products in the batches being tested = 90.2% * 30 = 27.06

Since the average number of products correctly made is 27.06, any number that is less than 27.06 would cause you to shut down production.

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CP4-1 Preparing an Adjusted Trial Balance, Closing Journal Entry, and Post-Closing Trial Balance [LO 4-3, LO 4-5][The following information applies to the questions displayed below.]The following is a list of accounts and amounts reported for Rollcom, inc., for the fiscal year ended September 30, 2015. The accounts have normal debit or credit balances. Accounts Payable $ 39,000 Accounts Receivable 66,400 Accumulated Depreciation—Equipment 21,400 Cash 80,200 Common Stock 94,700Equipment 90,600 Income Tax Expense 10,490 Notes Payable (long-term) 1,490 Office Expense 6,290 Rent Expense 164,100 Retained Earnings 99,790 Salaries and Wages Expense 128,600 Sales Revenue 325,400 Supplies 35,100ReferencesSection BreakCP4-1 Preparing an Adjusted Trial Balance, Closing Journal Entry, and Post-Closing Trial Balance [LO 4-3, LO 4-5]11.value:8.33 pointsRequired informationCP4-1 Part 22. Prepare the closing entry required at September 30, 2015. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)12.value:8.33 pointsRequired informationCP4-1 Part 33. Prepare a post-closing trial balance at September 30, 2015.

Answers

Please find question attached

Answer and Explanation:

Find answer and explanation attached

1. If the price of (x) falls, the budget constraint

a. Shifts outward in a parallel fashion.
b. Shifts inward in a parallel fashion.
c. Rotates outward about the x-intercept.
d. Rotates outward about the y-intercept.

2. If the prices of all goods increase by the same proportion as income, the quantity demanded of good (x) will

a. Decrease
b. Increase
c. Remain unchanged
d. Change in a way that cannot be determined from the information given

Answers

Answer:

1. If the price of (x) falls, the budget constraint

c. Rotates outward about the x-intercept.

If the price of a good X decreases, but the price of a good Y does not, then a consumer will be able to purchase a larger quantity of good X, but the same quantity of good Y. The Y-intercept will remain the same, but the X-intercept will shift outward.

2. If the prices of all goods increase by the same proportion as income, the quantity demanded of good (x) will

c. Remain unchanged

Lets say you have $100 and you buy 20 hamburgers. If your income increases to $110 (10% increase), but the price of hamburgers increase to $5.50, then inflation offsets any change in income. You will still be able to buy only 20 hamburgers, so your real income didn't change, only your nominal income changed.

Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the $21.60 million cost of the patent on a straight-line basis since it was acquired at the beginning of 2017. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the end of 2021 (before adjusting and closing entries). What is the appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not r

Answers

Answer:

General Journal                        Debit               Credit

Amortization expenses        $6,000,000

      Patent                                                       $6,000,000

Calculation of annual amortization after the estimate change

Cost                                           $21,600,000

Less: Amortization till date      $9,600,000

         ($2,400,000*4 years)

Un-amortized Cost A                $12,000,000

Remaining Life (6yrs-4yrs)            2 Years    

New annual amortization         $6,000,000

Old annual amortization = $21,600,000 / 9 years = $2,400,000

Amortization till date = $2,400,000 * 4 = $9,600,000

Amortization is an accounting method used over a certain period of time to gradually reduce the book value of a loan or other intangible asset.

Calculation after the Change is provided below:

Original Cost = 15.3

Annual Amortization (Old) = 15.3/9 = 1.7 million

Amortization till Date (2009 - 2013) = 1.7*4 = 6.8 million

Unamortized Value = 15.3 - 6.8 = 8.5 million

Remaining Life = 6 - 4 = 2 Years

New Amortization = Unamortized Value/Remaining Life = 8.5/2 = 4.25 million

Journal Entry:

Amortization Expense Dr. 4.25

Patent Cr. 4.25

Amortization of a loan focuses on deferring loan payments over a period of time. Amortization is comparable to depreciation in terms of how it affects an asset.

There are two contexts in which the word "amortization" is used. First, amortization is a tool used in the process of repaying debt over time with consistent principal and interest payments. Through installment payments, an amortization plan is used to lower the outstanding balance on a loan, such as a mortgage or vehicle loan.

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Problem 5-15 Comprehensive Problem-Weighted-Average Method [LO5-2, LO5-3, LO5-4, LO5-5] Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended juices are then bottled and packed for shipping in the Bottling Department. The following information pertains to the operations of the Blending Department for June. Percent Completed Units Materials Conversion Work in process, beginning 20,000 100% 75% Started into production 180,000 Completed and transferred out 160,000 Work in process, ending 40,000 100% 25% Materials Conversion Work in process, beginning $ 25,200 $ 24,800 Cost added during June $ 334,800 $ 238,700 Required: 1. Calculate the Blending Department's equivalent units of production for materials and conversion in June. 2. Calculate the Blending Department's cost per equivalent unit for materials and conversion in June. 3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June. 4. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June. 5. Prepare a cost reconciliation report for the Blending Department for June.

Answers

Answer:

1.                                Blending Department

                       Equivalent units of production (EUP)

                                      Units   %material   EUP     %Conversion    EUP

Units Completed and  160000  100%      160000     100%           160000

transferred out

Units of Ending work   40000   100%        40000      25%            10000  

in process

Equivalent units of production                200,000                     170,000

2. Cost per Equivalent unit

                                                               Material    Conversion

Cost of Beginning Work in Process     $25,200      $24,800

Cost added during June                       $3,34,800   $238,700

Total Costs                                             $360,000   $263,500

/Equivalent units of Production              200000      170000  

Cost per Equivalent unit of Production $1.80           $1.55

3. Cost of ending WIP                

                                                    EUP     Cost per EUP   Total Cost

Material                                     40000          $1.80            $72,000

Conversion                                10000           $1.55           $15,500

Total Ending work in process                                            $87,500

4. Cost of Units Transferred Out

                                        EUP Cost per EUP    Total Cost

Material                          160000           $1.80           $288,000

Conversion                     160000           $1.55          $248,000

Total transferred out                                                $536,000

5.                    Blending Department

                Cost Reconciliation Report  

Particulars                                        Amount

Costs to be accounted for

Cost of beginning WIP inventory   $50,000

($25200+$24800)  

Cost added to production              $573,500

($334800+$238700)                                        

Total Cost to be accounted for     $623,500

Costs accounted for as follows:

Cost of unit transferred out $536,000

Cost of Ending WIP              $87,500

Total cost accounted for     $623,500

How can expenses on groceries, clothes, and transportation be classified?
A.
variable expenses
OB.
fixed expenses
C.
unexpected expenses
D.
debt expenses
Reset
Next

Answers

Answer:

pog

Explanation:

[pg

Answer:

A

Explanation:

Variable expenses are expenses that can change over time. These cost vary depending on your usage of products or services, and they can change depending on any number of factors including the price of an item may have gone up or down. example Gas may be 1.73 today but may be 1.98 tomorrow. a gallon of milk may be 3 dollars today but 4 tomorrow.

Your friend Jeanne is searching for a job and is especially interested in one company. She has decided to create a LinkedIn profile, and she asks you how to use the site to get her dream job. What advice should you give Jeanne? Send LinkedIn messages to everyone in the company, and ask them for a job. Find employees at your company of interest, and see whether they are connected to anyone you know. Post status updates praising the company’s competitors to catch the company’s attention. Finding a job today is difficult, but developing your own personal brand will help you identify what makes you a valuable job candidate and understand

Answers

Answer:

The correct answer is:  Find employees at your company of interest, and see whether they are connected to anyone you know.

Explanation:

LinkedIn is a valuable tool for job seekers, because through this business-oriented social network it is possible for a candidate to seek a relationship with a company of interest, view available vacancies and network.

Therefore, the best advice I could give Jennie, who is looking for a position at a specific company, would be to network, seeking some common contact with some employee of the company in question, in order to develop some relationship that could help Jennie to get a job.

LinkedIn is very effective for this purpose, so it is necessary to keep the curriculum up to date, seek information about the company of interest, make new contacts etc.

Sally Toone wants to start a new business, and hopes to attract several hundred investors
to help finance its growth. She considered forming a C corporation, but wants to have
more flexibility about how the new business will be taxed. She also wants to offer
investors limited liability. Sally can satisfy her objectives by setting up a(n):
general partnership
alien corporation
S corporation.
limited liability company.

Answers

Answer:

limited liability company.

Explanation:

A limited liability company features mostly in private company's. It is a business ownership structure formed by at least one person with no maximum. This structure combines elements of a partnership and a corporation. It adopts a corporation's limited liability feature while passing through its taxation to its members, just like in a partnership.

Sally can satisfy both her objectives by setting up a limited liability company LLC. An LLC does not have an upper limit on membership, while its taxation is a single layer.

upply and demand
Question 8 of 10
Which situation would cause the price of a product to fall the most?
A. Both the demand and the supply fall.
B. Both the demand and supply rise.
C. The demand falls while the supply rises.
D. The demand rises while the supply falls.

Answers

The demand falls while the supply rises.

What are the means of calling for and delivery?

The wide variety of goods and services which can be available for people to shop for in comparison to the variety of products and offerings that humans need to shop for If less of a product than the public wishes is produced, the law of delivery and demand says that extra may be charged for the product.

what is the relationship between demand and supply?

it's an essential monetary principle that when supply exceeds demand for a very good or service, charges fall. whilst demand exceeds supply, fees tend to upward thrust. there is an inverse relationship between the delivery and prices of products and offerings while the call for is unchanged.

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In order for a person to recognize needs that are not being met and make a career out of fulfilling unmet needs, that person must have _____.
a.
interpretation
b.
sight and foresight
c.
independence
d.
decision making skills

Answers

The answer to this question is c

(a) A business pays weekly salaries of $22,000 on Friday for a five-day week ending on that day. Journalize the necessary adjusting entry at the end of the fiscal period, assuming that the fiscal period ends (1) on Tuesday, (2) on Wednesday. (b) The balance in the prepaid insurance account before adjustment at the end of the year is $18,000. Journalize the adjusting entry required under each of the following alternatives: (1) the amount of insurance expired during the year is $5,300, (2) the amount of unexpired insurance applicable to a future period is $2,700. (c) On July 1 of the current year, a business pays $54,000 to the city for license taxes for the coming fiscal year. The same business is also required to pay an annual property tax at the end of the year. The estimated amount of the current year's property tax allocated to July is $4,800. (1) Journalize the two adjusting entries required to bring the accounts affected by the taxes up to date as of July 31. (2) What is the amount of tax expense for July

Answers

Answer and Explanation:

The Journal entry is shown below:-

a. 1. Salaries expenses Dr, $8,800 ($22,000 × 5 ÷ 2)

        To Accrued salaries $8,800

(Being salaries expense is recorded)

2. Salaries expenses Dr, $13,200 ($22,000 × 5 ÷ 3)

       To Accrued salaries $13,200

(Being salaries expense is recorded)

b. 1. Insurance expense Dr, $5,300

         To Prepaid insurance $5,300

(Being insurance expense is recorded)

2. Insurance expense Dr, $15,300 ($18,000 - $2,700)

         To Prepaid insurance $15,300

(Being insurance expense is recorded)

c. 1. Prepaid license taxes Dr, $54,000

        To license taxes $54,000

(being license tax is recorded)

2. Property tax Dr, $4,800

           To Property tax payable $4,800

(Being property tax is recorded)

(2) the amount of tax expense for July is $4,800

Based on your reading of the following, choose the best answer to the question.

The Maverick Motel recently had to shut down operations for two days to get rid of bedbugs. A paying guest complained about getting bitten about a week ago, but as far as management can tell, the bedbugs are an isolated problem and were found only in three rooms. What can the motel do to minimize the damage to its reputation as a result of a guest finding bedbugs?

A. Create a banner ad on the motel’s web site announcing that the bedbug situation is now under control.
B. Call the paying guest and explain the problem has been addressed and is not widespread, and then offer the customer free stays for an entire year.
C. Call the paying guest and beg her not to tell anybody that she was bitten by bedbugs at the motel.
D. Call the paying guest and offer her money if she promises not to tell anyone about the bedbugs.

Answers

i would say B.
A would just spread the word that there is bed begs more.
C would be bad because asking someone to lie is going to look bad on the business if people find out. so it isn’t realistic.
D is also not a realistic option for a motel company.
i hope this helps!
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