Answer:
Results are below.
Explanation:
Giving the following information:
Sales:
April 82,000
May 90,000
June 122,000
July 96,000
Desired ending inventory= 15% of the following month's unit sales.
The inventory at the end of March was 12,300 units
To calculate the production required, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
April:
Sales= 82,000
Desired ending inventory= 90,000*0.15= 13,500
Beginning inventory= (12,300)
Total production= 83,200
May:
Sales= 90,000
Desired ending inventory= 122,000*0.15= 18,300
Beginning inventory= (13,500)
Total production= 94,800
June:
Sales= 122,000
Desired ending inventory= 96,000*0.15= 14,400
Beginning inventory= (18,300)
Total production= 118,100
g A corporation sold 26,000 shares of its $1 par value common stock at a cash price of $12 per share. The entry to record this transaction would be:
Answer:
Debit Cash $312,000; credit Common Stock $26,000; credit Paid-in Capital in Excess of Par Value, Common Stock $286,000.
Explanation:
The journal entry to record the given transaction is shown below:
Cash Dr (26,000 shares × $12) $312,000
To Common stock (26,000 shares × $1) $26,000
To Additional paid in capital in excess of par value - common stock $286,000
(Being the issuance of the common stock is recorded)
For recording we debited the cash as it increased the asset and credited the common stock and additional paid in capital as it also increased the equity
suppose the returns on long term corporate bonds and T-bills are normally distributed. Based on the values below answer the following questions: what is the probability that in any given year, the return on long-term corporate bonds will be greater than 10 percent? long term corporate bonds average return= 6.30%
Answer:
32.35% ( the probability that in any given year, the return on long-term corporate bonds will be greater than 10 percent )
Explanation:
Given data for long-term corporate bonds
Standard deviation : 8.3%
mean = 6.2%
To calculate the probability that in any given year, the return on long-term corporate bonds will be greater than 10 percent ( USING THE NORM-DIST FUNCTION )
P( x > 10% ) = 1 - P(x<10%) = 1 - NORM-DIST (10,6.2,8.3,TRUE ) = 0.3235
= 32.35%
attached below is the missing part of your question
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $368,900; materials of $407,000 and direct labor of $217,000. During the year Adams incurred $415,000 in materials costs, $412,900 in overhead costs and $221,000 in direct labor costs. Compute the amount of overhead applied to jobs during the year.
a. $375,700.
b. $412,900.
c. $368,900.
d. $412,890.
e. $424,150.
Answer:
Allocated MOH= $375,700
Explanation:
Giving the following information:
Estimated total overhead= $368,900
Estimated direct labor= $217,000
Actual direct labor= $221,000
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 368,900/217,000
Predetermined manufacturing overhead rate= $1.7 per direct labor dollar
Now, we can allocate overhead based on actual labor costs:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 1.7*221,000
Allocated MOH= $375,700
If a bushel of wheat costs $3.20 in the US and costs 40 pesos in Mexico and the nominal exchange rate is 10 pesos per dollar, then the real exchange from the US perspective is 0.80. The US will…
Answer:
If a bushel of wheat costs $3.20 in the US and costs 40 pesos in Mexico and the nominal exchange rate is 10 pesos per dollar, then the real exchange from the US perspective is 0.80. The US will…
increase exports of wheat to Mexico.
Explanation:
As the US increases exports of wheat to Mexico, it will receive more income per bushel since a bushel of wheat costs more in Mexico than in the US. While a bushel of wheat costs $3.20 in the US, it costs $4.00 per bushel in Mexico. Exports of wheat to Mexico will yield income in excess of $0.80 per bushel.
The $0.80 excess is computed from the difference between the dollar cost in Mexico and the dollar cost in US. With the exchange rate of 10 pesos per dollar, 40 pesos will be equal to $4.00. So, if it costs $3.20 in US and $4.00 in Mexico, the best option would be to export more to Mexico and reap in the extra $0.80 ($4.00 - $3.20) per bushel.
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,090,000, and it would cost another $22,500 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and it would be sold after 3 years for $627,000. The machine would require an increase in net working capital (inventory) of $16,500. The sprayer would not change revenues, but it is expected to save the firm $430,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 30%. Cash outflows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar.
a. What is the Year-0 net cash flow?
$
b. What are the net operating cash flows in Years 1, 2, and 3?
Year 1: $
Year 2: $
Year 3: $
c. What is the additional Year 3 cash flow (i.e, the after-tax salvage and the return of working capital)?
$
d. If the project's cost of capital is 13 %, what is the NPV of the project?
$
Should the machine be purchased?
a. Yes
b. No
Answer:
a) -$1,129,000
b) net operating cash flows:
year 1 = $412,239
year 2 = $448,152
year 3 = $350,428
c) total year 3 cash flow (including after tax salvage value and working capital) = $831,759
after tax salvage value = $464,831
working capital = $16,500
d) NPV = $179,733
e) the machine should be purchased
Explanation:
initial investment year 0 = $1,090,000 + $22,500 + $16,500 (net working capital) $1,129,000
depreciation per year:
year 1 = 33.33% x $1,112,500 = $370,796
year 2 = 44.45% x $1,112,500 = $490,506
year 3 = 14.81%% x $1,112,500 = $164,761, carrying value after depreciation = $86,437
if sold at $627,000 at the end of year 3, the after tax net cash flow = $627,000 - [($627,000 - $86,437) x 30%] = $464,831
cash flow year 1 = [($430,000 - $370,796) x (1 - 30%)] + $370,796 = $412,239
cash flow year 2 = [($430,000 - $490,506) x (1 - 30%)] + $490,506 = $448,152
operating cash flow year 3 = [($430,000 - $164,761) x (1 - 30%)] + $164,761 = $350,428
total cash flow year 3 = [($430,000 - $164,761) x (1 - 30%)] + $164,761 + $16,500 + $464,831 = $831,759
NPV = $179,733
You hold short positions of a stock and believe the price of the stock is going to decline within the next three months. However, you realize the stock price could increase and want to hedge that risk. Which one of the following option positions should you take to create the desired hedge? A) Buy a call B) Sell a call C) Buy a put D) Sell a put E) No option position will create the desired hedge
Answer: A) Buy a call
Explanation:
A Call Option is a derivative instrument where a person buys the option to be able to buy an asset at a set price. The call option therefore makes a profit if the price of the asset increases past the set (exercise ) price as the holder of the call option will be able to buy the asset for lower than it's market value.
If you believe that the price is likely to increase then you should buy a call option so that if it does increase, you can make a profit from the call option that would offset your loss from the short positions.
International trade currently involves about ______________ worth of goods and services thundering around the globe. Group of answer choices
Answer: $20 trillion
Explanation:
International trade is a trade that occurs between different countries. Die to international trade, several countries can buy the goods and services that are not being produced in their countries.
It should also be noted that International trade currently involves about $20 trillion worth of goods and services thundering around the globe.
Polk Products is considering an investment project with the following cash flows:
Year Cash Flow
0 $100,000
1 40,000
2 90,000
3 30,000
4 60,000
The company has a 10 percent cost of capital. What is the project's discounted payback? Show your calculations?
a. 1.67 years
b. 1.86 years
c. 2.11 years
d. 2.49 years
e. 2.67 years
Answer:
b. 1.86 years
Explanation:
The computation of the project's discounted payback is shown below:-
Year Cash Flows Discounted CFs (at 10%) Cumulative
Discounted CFs
0 -$100,000 -$100,000 -$100,000
1 $40,000 $36,363.64 -$63,636.36
2 $90,000 $74,380.17 $10,743.80
3 $30,000 $22,539.44 $33,283.25
4 $60,000 $40,980.81 $74,264.05
Discounted Payback Period = Years before full recovery +
(Uncovered Cost at start of the year ÷ Cash Flow during the year)
Now we will put the values into the formula
= 1 + ($63,636.36 ÷ $74,380.17)
= 1 + 0.86
= 1.86 years
On July 23 of the current year, Dakota Mining Co. pays $6,165,600 for land estimated to contain 8,808,000 tons of recoverable ore. It installs machinery costing $1,849,680 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years. The machinery is paid for on July 25, seven days before mining operations begin. The company removes and sells 488,500 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined.
Required:
Prepare entries to record the following:_______.
(a)To record the purchase of the land.
(b)To record the cost and installation of machinery.
(c) To record the first five months' depletion assuming the land has a net salvage value of zero after the ore is mined.
(d)To record the first five months' depreciation on the machinery.
Answer:
a) July 23, 202x, purchase of land parcel (for mining purposes)
Dr Land and ore deposits 6,165,600
Cr Cash 6,165,600
b) July 25, 202x, purchase and installation of mining machinery
Dr Machinery 1,849,680
Cr Cash 1,849,680
c) December 31, 202x, depleting expense of ore deposits
Dr Depleting expense 341,917
Cr Accumulated depletion: land and ore deposits 341,917
depleting expense = ($6,165,600 / 8,808,000 tons) x 488,500 tons = $341,917
d) December 31, 202x, depreciation expense of machinery
Dr Depreciation expense 102,585
Cr Accumulated depreciation: machinery 102,585
depreciation expense = ($1,849,680 / 8,808,000 tons) x 488,500 tons = $102,585
Roberto Corporation was organized on January 1, 2021. The firm was authorized to issue 88,000 shares of $5 par common stock. During 2021, Roberto had the following transactions relating to shareholders' equity: Issued 10,800 shares of common stock at $5.70 per share. Issued 19,300 shares of common stock at $9.70 per share. Reported a net income of $98,000. Paid dividends of $41,000. Purchased 3,500 shares of treasury stock at $11.70 (part of the 19,300 shares issued at $9.70). What is total shareholders' equity at the end of 2021
Answer:Shareholder's equity =$264,820
Explanation:
Purcahse of treasury stock =Shares purchased×price purchased
=3,500 shares×$11.70 per share
=$40,950
Shareholder's equity =Equity capital+Net income− Dividend−Treasury stock
Given
Net income = $98,000
Dividends =$41,000
but Equity capital =Shares issued× the Issued price + Shares issued× the Issued price +....
= 10,800 x $5.70 + 19,300 x 9.70=61,560 + 187,210=$248,770
Shareholder's equity = $248,770 + $98,000 - $41,000 -$40,950= $264,820.
A method of allocating merchandise cost that assumes the first merchandise bought was the first merchandise sold is called the
Answer:
First - in - First - Out (FIFO) method
Explanation:
The First - in - First - Out (FIFO) method, assumes that the first goods received by the business will be the first ones to be delivered to the final customer.
It assumes that goods have been used in the order in which they are purchased.
Should companies hire only people who represent the company image based on how they look?
What is LVN Corporation's direct labor efficiency variance? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)
Complete Question:
LVN Corporation's direct labor costs and related information for the month of June were as follows:
500 Actual total direct labor-hours
1000 Standard total direct labor-hours
Total direct labor cost $16,500
Unfavorable direct labor rate (rate) variance $600
What is LVN Corporation's direct labor efficiency variance?
A. $16,500 unfavorable
B. $7950 unfavorable
C. $7950 favorable
D. $16,500 favorable
Answer:
$7,950 Unfavorable
Explanation:
As we know that:
"Labor Efficiency Variance = (Actual Labor Hours Worked for Actual Production − Standard Hours for Actual Production) * Standard Rate"
If we consider the parenthesis elements in the formula, we can decide whether the variance is favorable or adverse. If the actual labor hours worked are more than the budget (standard hours for actual production) then the variance (difference) is adverse because greater the hours worked for same level of activity (Production Units) the greater is the labor cost. Hence the variance would be adverse and vice versa.
Here
Actual Hours Worked for actual production are 1,000 Hours
Actual total labor cost is $16,500
Standard Hours Worked for actual production are 500 Hours
Standard rate per hour is $15.9 per Hour (Step 1)
By putting values, we have:
Direct Labor Efficiency Variance = (1000 Hrs - 500 Hrs) * $15.9 per hour
= (1000 - 500) * $15.9 per share
= $7,950 Unfavorable
Step1: Find Standard Labor RateWe can find the standard labor rate using the following labor rate variance formula:
Labor Rate Variance = (Standard Rate per Hour * Actual Hours Worked) − (Actual Rate per Hour * Actual Hours Worked)
Here
(Actual Rate per Hour * Actual Hours Worked) is total labor cost which is $16,500
Actual Hours Worked is 1000 Hours
Labor Rate Variance is ($600)
By putting values, we have:
($600) = (1000 Hours * Standard Labor Rate) - $16,500
($600) + $16,500 = 1000 Hours * Standard Labor Rate
$15,900 = 1000 Hours * Standard Labor Rate
Standard Labor Rate = $15,900 / 1000 Hours = $15.9 per hour
Rex and Sandy are partners. Rex has a capital balance of and Sandy has a capital balance of . Marcus contributes a building with a fair market value of in order to acquire an interest in the partnership. What is Marcus's partnership share after he makes the investment? (Assume no bonus to any partner. Round the percentage to one decimal place.)
Answer:
25.29%
Explanation:
the numbers are missing, so I looked for a similar question:
Rex's capital balance = $370,000Sandy's capital balance = $280,000Marcus contributed a building worth = $220,000the partnership's total capital = $370,000 + $280,000 + $220,000 = $870,000
Marcus's share in the partnership = value of building / partnership's total capital = $220,000 / $870,000 = 25.29%
Ploeger Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.Sales (4,000 units) $ 240,000Variable expenses $156,000Contribution margin $84,000Fixed expenses $81,900Net operating income $2,100What is the break-even point for Ploeger Corporation in dollar sales?
Answer:
Break-even point (dollars)= $234,000
Explanation:
Giving the following information:
Sales (4,000 units) $240,000
Variable expenses $156,000
Fixed expenses $81,900
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 81,900/ [(240,000 - 156,000)/240,000]
Break-even point (dollars)= 81,900/0.35
Break-even point (dollars)= $234,000
Tulip Inc. uses standard costing, and its manufacturing standards are as follows: 2 pounds of materials at $13 per pound, and 3 hours of labor at $10 per hour. Budgeted production last period was 5,000 units, and actual production was 4,800 units. Last period, Tulip purchased and used 9,800 pounds of materials for $135,000, and used 15,000 labor hours, costing $145,000. WHat is the journal entry to record direct labor costs to the costs of goods sold account
Answer:
Dr Work In Progress $144,000
Dr Direct Labor Cost Variance $1,000
Cr Wages Payable $145,000
Explanation:
The first step would be to calculate the direct labor variance which is calculated as under:
Direct Labor Cost Variance = Standard Labor Cost of Actual Production - Actual Labor Cost for Actual Production
Standard Labor Cost of Actual Production = Standard Labor Cost * Actual Production
Here
Actual Production is 4,800 Units and standard labor cost is 3 Hrs at $10 per hour which means:
Standard Labor Cost of Actual Production = 4,800 Units * 3 Hrs * $10 per Hr
= $144,000
Actual Labor Cost for Actual Production is $145,000
By putting the values in the above equation, we have:
Direct Labor Cost Variance = $144,000 - $145,000 = ($1,000) Unfavorable
The double entry would be:
Dr Work In Progress $144,000
Dr Direct Labor Cost Variance $1,000
Cr Wages Payable $145,000
PIRs (planned independent requirements) are calculated based on actual and forecasted sales.a) trueb) false
Answer:
A. True
Explanation:
Option A is correct because PIRs (planned independent requirements) are calculated based on actual and forecasted sales.
In PIR, the independent requirement for final goods is calculated by the sales and the activities /operation for material planning process.
In a lean environment, the journal entry to record conversion costs would include a debit to the raw and in process inventory account.
a) true
b) false
Answer: True
Explanation:
Lean is used by organizations in order to prevent wastages and to also improve the effectiveness and efficiency at such organizations.
In a lean environment, the journal entry to record conversion costs would include a debit to the raw and in process inventory account.
The answer above is true.
Which federally supported credit agency was established to trade student loan debt?
A. Fannie Mae.
B. Freddie Mac.
C. Farmer Mac.
D. Sallie Mae.
Answer:
D. Sallie Mae.
Explanation:
Sallie Mae was established to trade students loan debt. The association provided debt management services. Initially it was known as the Student Loan Marketing Association and it was first set up in 1973. The association used to be if the government because it was used to give federal education loans. It became private later on and was used to finance private loans for education.
Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $1.50 in 2009. If 4 apples were produced in 2002 and 5 in 2009, whereas 3 oranges were produced in 2002 and 4 in 2009, then real GDP (in 2002 prices) in 2009 was:__________
a. $5
b. $6.50
c. $9.50
d. $11.
Answer:
B
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
(5 x $0.5) +( 4 x $1) = $6.50
In the late the unemployment rate dropped below the natural rate of employment. Firms with cavancies wer having to pay:______.
Complete Question:
In the late 1990's, the unemployment rate dropped below the natural rate of unemployment. Firms with vacancies were having to pay higher wages to try and fill job openings. If inflation were to begin, it would most likely be described as:
A. Deficit pull inflation
B. Demand pull inflation
C. Cross deficit inflation
D. Cost push inflation
Answer:
Option D. Cost push inflation
Explanation:
The inflation that is all because of increase in the prices of input labor, Material, Overhead, etc. Thus increase in the price of end product is an impact of increase in input cost and also because of decreased supply of product. The decrease in product supply is because only those firms produce products that have a competitive cost advantage.
In the current case, when the unemployment rate falls below the natural rate of employment then this means that the demand of the labor has increased and thus the salaries and wages of the employee will also increase. The new job opening will have to be filled by putting forward an attractive offer to recruit employees. This is cost push inflation, because the cost of the input has increased which will increase the cost of production and thus increasing the price of the end product.
Which of the following is not a part of checking a diversified company's business units for cross-business competitive advantage potential?
A. Ascertaining the extent to which sister business units have value chain match-ups that offer opportunities to combine the performance of related value chain activities and reduce costs
B. Ascertaining the extent to which sister business units have value chain match-ups that offer opportunities to transfer skills or technology or intellectual capital from one business to another
C. Ascertaining the extent to which sister business units are making maximum use of the parent company's competitive advantages
Answer:
C. Ascertaining the extent to which sister business units are making maximum use of the parent company's competitive advantages.
Explanation:
For a diversified company that has many business units, it is important for the sister units to provide opportunities that make more profit for the business.
These opportunities are generated by the ability of each sister unit to have a unique competitive edge not shared by other business units.
In analysing cross business competitive advantage among sister units, we don't consider which sister business units are making maximum use of the parent company's competitive advantages.
This is because the company's competitive advantage is a trait shared by all the business units. It does not show a unique competitive edge of sister units.
Which of the following is true of optional-product pricing? Question 11 options: 1) It involves setting geographically specific prices. 2) It involves pricing products that can be added to the base product. 3) It is used to price products that must be used with the company's main product. 4) It involves capitalizing on low value by-products. 5) It is used to price a company's main product.
Answer: 2) It involves pricing products that can be added to the base product.
Explanation:
Optional-product planning is a method of pricing where the producer lure buyers in by selling at a cheap price which can sometimes even fall below their cost price. These products however can not be fully utilized alone or as they are. They require accessories.
This is where the company hopes to make up the profit. They charge low on the main product, then hope to make up the cost when you buy the accessories. An example would be Printers and ink.
This is a risky method of selling and so needs the accessories to be priced in such a way that the company makes no losses.
According to, "Ditching the Dollar," having multiple reserve currencies to choose from is healthy because:
Answer: D. If one country creates all the reserves it can prevent other countries from trading.
Explanation:
Ditching the Dollar refers to a movement by nations to reduce the dependence on the US. dollar for transactions.
The USD is the major currency for trade around the world with it accounting for the currency of use in more than 50% of the entire World trade. This was due to the Bretton Woods Agreement and System which at the time pegged the USD to gold and other currencies at certain value to the USD.
The influence the USD gained that day continues today. Countries however are increasing becoming fed up by the United States using the Dollar to impose trade restrictions and sanctions on countries and then requiring everyone to fall in line because trades are mostly done in the currency controlled by the US, the USD.
For instance, when sanctions were imposed on Iran, the European Union looked for alternative means of payment for Iranian oil.
Ditching the Dollar therefore argues that having multiple reserve currencies to choose from is healthy because one country will not be able to control world trade as the US has.
You have gathered the following information on your investments. What is the expected return on the portfolio?
Stock Number of Shares Price per Share Expected Return
F 270 36 13.16%
G 295 22 9.85%
H 235 48 10.47%
a. 11.27%
b. 12.22%
c. 11.16%
d. 11.75%
e. 12.69%
Answer:
The correct option is a. 11.27%.
Explanation:
Note: See the attached excel file for the computation of the e expected return on the portfolio.
The expected return on the portfolio is the addition of the products of weight of each asset in the portfolio and the expected return of each asset.
From the attached excel file, the expected return on the portfolio is 11.27%. Therefore, the correct option is a. 11.27%.
Shares of common stock of the Samson Co. offer an expected total return of 13.00 percent. The dividend is increasing at a constant 5.40 percent per year. The dividend yield must be:
Answer:
the dividend yield is 7.60%
Explanation:
The computation of the dividend yield is shown below:
As we know that
Required return = Dividend yield + Capital Gain Yield or growth rate
13% = Dividend yield + 5.4%
So, the dividend yield is
= 13% - 5.4%
= 7.60%
Hence, the dividend yield is 7.60%
We simply applied the above formula so that the dividend yield could come
A copyright registered on or after January 1, 1978 lasts how long?
the author's life plus fifty years
the author's life plus sixty years
the author's life plus seventy years
the author's life
Answer:
Life of the author plus seventy years
Explanation:
Answer:
the author's life plus seventy years
Explanation:
_____ refer(s) to the sale of programs on a station-by-station, market-by-market basis.
a) Makegoods
b) Syndication
c) Dayparts
d) Spot announcement
e) Participation basis
Answer:
a) makegoods
Explanation:
Because I got it right
Answer:
i believe the answer is a
Explanation:
Assume company can produce any amount above 3.4 units. Naploc purchased the equipment for $12,000 and did not start production yet. Market price is $400. Tebit Inc, another company that operates in the same industry desperately needs equipment and makes an offer to Naples. Debit already knows Naples cost structure. What is the lowest price that Tebit should offer for the equipment
Answer: $12,000
Explanation:
As no production has been started yet, no other costs have been incurred by Naples for the equipment other than the $12,000.
The lowest price that Tebit should offer therefore should be the price that the equipment was purchased for as the equipment has not not been used to produce anything and so has not incurred any variable costs or donated any incremental value that would decrease or increase its value.
Considering the communication process, an advertisement of a particular copier machine model would be considered:
Answer: encoding
Explanation:
Considering the communication process, an advertisement of a particular copier machine model would be considered encoding.
Encoding simply helps in the translatation of the idea relgarding a message into symbols or words which should be easily understood by the receiver. The copier machine is sending tothe sender.