Answer:
youuurrr mooomm
Explanation:
:D
Inventories: March 1 March 31 Raw material $18,000 $15,000 Work in process 9,000 6,000 Finished goods 27,000 36,000 Additional information for March: Raw material purchased $42,000 Direct labor payroll $30,000 Direct labor rate per hour $7.50 Overhead rate per direct labor hour $10.00 Refer to Crawford Enterprises. For March, conversion cost incurred was
Answer:
$118000
Explanation:
Calculation for conversion cost incurred
First step is to calculate the Prime Cost
Opening stock Of Raw Material $18000
Add: Material purchased $42000
Less: Closing stock of raw material ($15000)
Add: Direct Labour $30000
Prime Cost $75000
Now let calculate the conversion cost incurred
Prime cost $75000
Add: overhead expenses $40000
[($30000/ $7.50)**10]
( 4000 * $10=$40000)
Total $115000
($75000+$40000)
Add: opening work in progress $9000
Total $124000
($115000+$9000)
Less: Closing stock of work in progress ($6000)
Factory cost or conversion cost $118000
($124000-$6000)
Therefore For March, conversion cost incurred was $118,000
Adams Company has two products: A and B. The annual production and sales of Product A is 2,300 units and of Product B is 1,700 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor-hours per unit and Product B requires 0.6 direct labor-hours per unit. The total estimated overhead for next period is $105,475.
The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows:
Total Estimated
Overhead
Costs Expected Activity
Product A Product B Total
Activity 1 $32,592 1,600 1,200 2,800
Activity 2 18,564 2,300 800 3,100
General Factory54,319 690 1,020 1,710
Total $105,475
(Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.)
The overhead cost per unit of Product B under the traditional costing system is closest to:________.
a. $20.30
b. $14.62
c. $16.71
d. $37.01
Answer:
The correct answer is D.
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Total estimated overhead= $105,475
Total direct labor hours= (2,300*0-3) + (1,700*0.6)
Total direct labor hours= 1,710
Predetermined manufacturing overhead rate= 105,475 / 1,710
Predetermined manufacturing overhead rate= $61.68 per direct labor hour
Now, we can allocate overhead to Product B:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 61.68*(0.6*1,700)
Allocated MOH= $62,913.6
Finally, the cost per unit:
Cost per unit= 62,913.6/1,700
Cost per unit= $37
A manufacturing plant that assembles television sets has variable output volume from 200 sets to 350 sets a day. The building for both manufacturing and warehousing has an area of 80,000 square feet. It employs about 250 people. It produces all of the components that go into the assembly. An example for variable cost in this plant is ___________________. Group of answer choices building cost equipment cost labor cost property taxes
Answer:
Labor cost
Explanation:
An example for variable cost in this plant is Labor cost. Labor cost is a variable cost at producers have to hire more labor to raise manpower to produce more goods. Labor cost is also the cost of human effort expended towards projects objectives.
What may make a small business loan challenging to obtain? List at least two potential obstacles.
Answer:
credit
work history
Explanation:
hope this helps
Green marketing refers to:________
A) the purchasing of products from producers whose farming practices are Fair Trade certified.
B) the marketing efforts taken by new and smaller companies that lack both the experience and resources of their major competitors.
C) the marketing efforts to produce,promote,and reclaim environmentally sensitive products.
D) the marketing of products that have in no way been altered or reprocessed by artificial means.
E) the marketing of those products made exclusively from recycled materials.
Answer:
C) the marketing efforts to produce,promote,and reclaim environmentally sensitive products.
Explanation:
Green marketing can be understood as a way for organizations to concentrate efforts to produce, promote and recover environmentally sensitive products.
It is correct to say that this is a positive marketing for companies to reduce their negative impacts on the environment and adopt environmentally responsible attitudes, due to the fact that today's society expects companies to be positive transforming agents of society, being more than just entities profitable, stekeholders influence companies to adopt strict environmental standards in their processes and thus gain greater reliability, positioning and increase their market value.
Black Bear Construction Company has a contract to construct a $6,000,000 bridge at an estimated cost of $5,300,000. The contract is to start in July 2017, and the bridge is to be completed in October 2019. The following data pertain to the construction period.
2015 2016 2017
Costs to date $1,325,000 $3,780,000 $5,430,000
Estimated costs to complete 3,975,0001, 620,000 —
Progress billings during the year 1,200,000 3,200,000 1,600,000
Cash collected during the year 1,000,000 2,340,000 2,660,000
What amount of gross profit should Black Bear recognize in 2017 using the percentage-of-completion method?
a. $150,000
b. $169,000
c. $210,000
d. $530,000
Answer:
a. $150,000
Explanation:
Calculation for What amount of gross profit should Black Bear recognize in 2017 using the percentage-of-completion method
First step is to calculate the Total estimated contract costs at 2016
Total estimated contract costs at 2016=$3,780,000+$1,620,000
Total estimated contract costs at 2016=$5,400,000
Second step is to calculate the Percentage of completion
Percentage of completion = $3,780,000 / ($3,780,000+$1,620,000)
Percentage of completion =$3,780,000 / $5,400,000
Percentage of completion =0.7*100
Percentage of completion =70%
Now let calculate the gross profit
Using this formula
Gross profit=Percentage of completion *(Contract Price-Total estimated contract costs at 2016)
Let plug in the formula
Gross profit=70%*($6,000,000-$5,400,000)
Gross profit=70%*$600,000
Gross profit=$150,000
Therefore amount of gross profit should Black Bear recognize in 2017 using the percentage-of-completion method will be $150,000
Now imagine that Tiger Pros is 60% financed with equity and 40% financed with debt. Cost of equity is 16.5% and after-tax cost of debt is 11%. It has the same perpetual EBIT of $500 a year but has a $120 perpetual interest expense. The firm is subject to a 21% tax rate. What is the market value of Tiger Pros
Answer:
$2,762.24
Explanation:
The computation of the market value as follows:
But before that WACC is
WACC is
= Weight of Equity × Cost of Equity + Weight of Debt × Cost of Debt × (1 -Tax Rate)
= 60% × 16.5% + 40% × 11%
= 14.30%
Now the Market Value is
= (EBIT) × (1 - Tax rate) ÷ WACC
= $500 × (1 - 21%) ÷ 14.30%
= $2,762.24
what is Amazon's current price-to-book value?
Answer:
The current price to book value of Amazon as on date (25 February 2021) is 16.48
Explanation:
The current price to book value of Amazon as on date (25 February 2021) is 16.48
However, on 24th February 2021, the price to book value of Amazon was 17.03
Which of the following types of insurance allows individuals to keep a former employer's group coverage for a set period of time?
COBRA
Individual health insurance
Hospital indemnity policy
Group health insurance
Answer:
group health insurance
Which of the following is not a way to improve your credit?
Keep your balances low
Move debt around
Keep established accounts
Pay your bills on time
Answer:
Move debt around
Explanation:
The way where the credit is not improved is that if we moving the debt around.
Information related to the credit score & creditworthiness:
The credit score is the mathematical expression that depends upon your creditworthiness. Creditworthiness is the willingness of the lender for believing you to pay off the debts.
The credit should be improved by:
Having established accounts.Bills are paid on timeLess balances.But if the debt is moving around so this does not improve your credit.
Therefore we can conclude that the way where the credit is not improved is that if we moving the debt around.
Learn more about creditworthiness here: brainly.com/question/2254218
You have received two bids from outside companies to conduct guest satisfaction surveys for you. You want at least 320 responses. Company A charges $3,200 + $6 per respondent. Company B charges $4,000 + $3 per respondent. Which company will cost you less?
a) Company A
b) Company B
From the two bids received from outside companies to conduct guest satisfaction surveys, the company that would cost me less will be Company B which charges $4,000 + $3 per respondent.
What is a bid?A bid is the price offer that a corporation or individual is willing to pay in the context of auctions, stock exchanges, or real estate. Bidding is an individual or business's offer to set a price for a product or service, or a demand that something is done. Bidding is a method of determining the price or worth of something.
Bidding can be done by a person who is influenced by a product or service in a given setting. It is used by numerous economic niches to determine demand and thus the worth of a commodity or property. In today's modern technology environment, the Internet is a preferred platform for giving bidding services.
Therefore, from the bids received it can be concluded that Company B would cost less.
To learn more on bid, click here:
https://brainly.com/question/28436717
#SPJ3
Use the following information available as of December 31 to prepare an income statement for the year and a balance sheet for Goldie Company.
Fees for services performed during the year, $123,000
Accounts payable, $17,800
Accounts receivable, $17,400
Miscellaneous expenses for the year, $9,000
Supplies on hand, $3,300
Notes payable, $25,000
Interest expense on the note for the year, $3,700
Equipment, $92,700
Cash on hand, $11,600
Salaries expense for the year, $71,500
Supplies expense for the year, $8,500
Rent expense for the year, $11,100
Common stock that has been issued, $55,000
Retained earnings at the end of the year, $27,200
Answer:
Goldie Company
a) Income Statement for the year ended December 31:
Fees for services $123,000
Miscellaneous expenses 9,000
Interest expense 3,700
Salaries expense 71,500
Supplies expense 8,500
Rent expense 11,100 $103,800
Net income 19,200
b) Balance Sheet as of December 31:
Assets:
Cash on hand $11,600
Accounts receivable 17,400
Supplies on hand 3,300
Equipment 92,700
Total assets $125,000
Liabilities and Equity:
Accounts payable $17,800
Notes payable 25,000
Common stock 55,000
Retained earnings 27,200
Total liabilities & equity $125,000
Explanation:
a) Data and Calculations:
Trial balance as of December 31:
Account Titles Debit Credit
Cash on hand $11,600
Accounts receivable 17,400
Supplies on hand 3,300
Equipment 92,700
Accounts payable $17,800
Notes payable 25,000
Common stock 55,000
Retained earnings 8,000
Fees for services 123,000
Miscellaneous expenses 9,000
Interest expense 3,700
Salaries expense 71,500
Supplies expense 8,500
Rent expense 11,100
Totals $228,800 $228,800
Retained Earnings at January 1 = $8,000 (27,200 - 19,200)
Net income 19,200
Retained Earnings at December 31 $27,200
Hugh has the choice between investing in a City of Heflin bond at 4.80 percent or investing in a Surething Inc. bond at 7.25 percent. Assuming that both bonds have the same nontax characteristics and that Hugh has a 40 percent marginal tax rate, what interest rate does Surething Inc. need to offer to make Hugh indifferent between investing in the two bonds
Answer:
8%
Explanation:
Calculation for what interest rate does Surething Inc. need to offer to make Hugh indifferent between investing in the two bonds
Using this formula
Interest rate=City of Heflin bond Percentage rate/(1 − Marginal tax rate)
Let plug in the formula
Interest rate=4.80% / (1 − 40%)
Interest rate=4.80%/60%
Interest rate= 8%
Therefore the interest rate that Surething Inc. need to offer to make Hugh indifferent between investing in the two bonds will be 8%
Waterway Industries provided the following information on selected transactions during 2021: Dividends paid to preferred stockholders $ 510000 Loans made to affiliated corporations 1400000 Proceeds from issuing bonds 1550000 Proceeds from issuing preferred stock 2090000 Proceeds from sale of equipment 795000 Purchases of inventories 2350000 Purchase of land by issuing bonds 590000 Purchases of treasury stock 1180000 The net cash provided (used) by financing activities during 2021 is
Answer:
Net cash provided by financing activities $1,195,000
Explanation:
The computation of the net cash provided by financing activities are as follows:
Cash flows from financing activities
Issue bonds $2,090,000
Issue preferred stock $795,000
Less: Purchase of treasury stock -$1,180,000
Less: Dividend paid to preferred stockholders -$510,000
Net cash provided by financing activities $1,195,000
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.2 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 7% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end.
Required:
a. Prepare the journal entries on October 1, 2021, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank.
2. Record the adjustments on December 31, 2021, for (a) Precision Castparts and (b) Midwest Bank.
3. Prepare the journal entries on September 30, 2021, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank.
Answer:
a. Prepare the journal entries on October 1, 2021, to record (a) the notes payable for Precision Castparts
Dr Cash 40,200,000
Cr Notes payable 40,200,000
and (b) the notes receivable for Midwest Bank.
Dr Notes receivable 40,200,000
Cr Cash 40,200,000
2. Record the adjustments on December 31, 2021, for (a) Precision Castparts and
Dr Interest expense 703,500
Cr Interest payable 703,500
(b) Midwest Bank.
Dr Interest receivable 703,500
Cr Interest revenue 703,500
3. Prepare the journal entries on September 30, 2021, to record payment of (a) the notes payable for Precision Castparts and
Dr Interest expense 2,110,500
Dr Notes payable 40,200,000
Dr Interest payable 703,500
Cr Cash 43,014,000
(b) the notes receivable for Midwest Bank.
Dr Cash 43,014,000
Cr Interest revenue 2,110,500
Cr Notes receivable 40,200,000
Cr Interest receivable 703,500
As a long-term investment at the beginning of the 2018 fiscal year, Florists International purchased 25% of Nursery Supplies Inc.'s 16 million shares for $68 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $52 million and distributed cash dividends of $.75 per share. At the end of the year, the fair value of the shares is $64 million.Required: Prepare the appropriate journal entries from the purchase through the end of the year.
Answer:
1. Dr Investment in Nursery supplies common share $68 million
Cr Cash $68 million
2. Dr Investment in Nursery supplies common share $13 million
Cr Investment Revenue $13 million
3.Dr Cash $3 million
Cr Investment in Nursery supplies common share $3 million
4. No Journal entry
Explanation:
Preparation of the appropriate journal entries from the purchase through the end of the year.
1. Dr Investment in Nursery supplies common share $68 million
Cr Cash $68 million
2. Dr Investment in Nursery supplies common share $13 million
Cr Investment Revenue $13 million
(25%*$52 million )
3.Dr Cash $3 million
Cr Investment in Nursery supplies common share $3 million
(16 million shares *25%*$.75 per share)
4. No Journal entry is required to record the change in fair value
The August 31 balance shown on the bank statement is $9,813.
a. There is a deposit in transit of $1,263 at August 31.
b. Outstanding checks at August 31 totaled $1,877.
c. Interest credited to the account during August but not recorded on the company's books amounted to $116.
d. A bank charge of $35 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived.
e. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $626 had been recorded as a disbursement of $373. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,371.
Required:
Prepare a bank reconciliation as of August 31 from the above information.
Answer:
Adjusted Balance per bank $9,199
Adjusted Balance per books $9,199
Explanation:
Preparation of a bank reconciliation as of August 31
Balance per bank on August 31 $9,813
Add Deposit in transit $1,263
Less Outstanding checks ($1,877)
Adjusted Balance per bank $9,199
Balance per books on August 31 $9,371
Add Interest earned $116
Less Bank charge ($35)
Less Error in Books ($253)
($626-$373)
Adjusted Balance per books $9,199
Therefore the bank reconciliation as of August 31 will be:
Adjusted Balance per bank $9,199
Adjusted Balance per books $9,199
you have $26,605.46 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $270,000. you expect to earn 10% annually on the account. how many years will it take to reach your goal? do not round intermediate calculations. round your answer to the nearest whole number.
All of the following are examples of primary market research EXCEPT
Direct mail surveys
Fee product samples
Focus groups
Promotional email campaigns
Answer:
Fee product samples
Explanation:
makes pay
I. Prepare a journal entry.
(a) Stockholder invests $15,000 into the business.
(b) Company borrows $15,000 signing a note payable to the bank that is due in three months.
(c) Receives and pays for a $10,000 truck and $5,000 of equipment.
(d) Purchases $600 of supplies on account.
(e) Signs contract for first website design for $10,000.
(f) Pays $200 to the supplier in (d).
(g) Purchases and pays for $400 of supplies.
(i) Orders a $900 computer, to be delivered in 90 days.
Transaction # Accounts titles (names) Debit Credit
II. Post the transactions to ledger accounts and then determine the ending balances of each of the following T-accounts.
Assets Liabilities Stockholders' Equity
Cash Accounts Payable Common Stock
Supplies Notes Payable Retained Earnings
Equipment
3. PREPARING A TRIAL BALANCE AND A CLASSIFIED BALANCE SHEET
Use the ending balances from the T-accounts to prepare a trial balance as of December 31, Year 1.
World Wide Webster
Trial Balance
At December 31, Year 1
Answer:
1. Journal Entries:
a. Debit Cash $15,000
Credit Common Stock $15,000
To record investment by stockholder
b. Debit Cash $15,000
Credit Note Payable $15,000
To record note payable to the bank in three months.
c. Debit Truck $10,000
Debit Equipment $5,000
Credit Cash $15,000
To record the purchase of truck and equipment.
d. Debit Supplies $600
Credit Accounts Payable $600
To record the purchase of supplies on account.
e. No journal required.
f. Debit Accounts Payable $200
Credit Cash $200
To record the payment on account.
g. Debit Supplies $400
Credit Cash $400
To record the purchase of supplies for cash.
h. or i. No journal entry required.
II. Ledger Accounts:
Cash
Accounts titles Debit Credit
a. Common stock $15,000
b. Note payable 15,000
c. Truck & Equipment $15,000
f. Accounts payable 200
g. Supplies 400
Balance $14,400
Totals $30,000 $30,000
Common Stock
Accounts titles Debit Credit
a. Cash $15,000
Notes Payable
Accounts titles Debit Credit
b. Cash $15,000
Truck
Accounts titles Debit Credit
c. Cash $10,000
Equipment
Accounts titles Debit Credit
c. Cash $5,000
Supplies
Accounts titles Debit Credit
d. Accounts payable $600
g. Cash 400
Balance $1,000
Totals $1,000 $1,000
Accounts Payable
Accounts titles Debit Credit
d. Supplies $600
f. Cash $200
Balance $400
Totals $600 $600
III. Trial Balance
Accounts titles Debit Credit
Cash $14,400
Truck 10,000
Equipment 5,000
Supplies 1,000
Common stock $15,000
Notes payable 15,000
Accounts payable 400
Totals $30,400 $30,400
IV. Classified Balance Sheet
Assets
Current Assets:
Cash $14,400
Supplies 1,000 $15,400
Long-term Assets:
Truck 10,000
Equipment 5,000 $15,000
Total Assets $30,400
Liabilities + Equity:
Accounts payable 400
Notes payable 15,000
Common stock 15,000
Liabilities + Equity $30,400
Explanation:
Journal Entries are made to record transactions for the first time in the accounting books. These transactions are then posted to the general ledger where balances are extracted for the Trial Balance. Based on the Trial Balance, the financial statements are prepared to determine the financial performance and position of the business at the end of an accounting year.
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 11 years because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $16.25 per share 12 years from today and will increase the dividend by 5.5 percent per year thereafter. The required return on the stock is 13.5 percent. What is the price of the stock 11 years from today?
Answer:
P11 = $203.125
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock in year 11. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D1 is dividend expected for the next period /year
g is the growth rate
r is the required rate of return or cost of equity
P11 = 16.25 / (0.135 - 0.055)
P11 = $203.125
The production possibilities frontier will shift outward
A.
if resources are used to produce consumption goods.
B.
if production occurs outside the production possibilities frontier.
C.
if resources are not used in production.
D.
.if resources are not used to produce capital goods
E.
.if technological advances occur
D. if resources are used to produce capital goods.
Production possibilities frontierThe PPF (production possibilities frontier) is a collection of points along which a country's economy allocates its resources most efficiently to produce as many things as feasible.The Production Possibilities Curve, also known as the Production Possibilities Frontier, is a graph that indicates how many units a firm can produce if it only makes two items and uses all of its resources efficiently.The production possibilities frontier will shift outward D. if resources are used to produce capital goods.For more information:
https://brainly.com/question/14620714?referrer=searchResults
Smith Corporation has provided the following information: Cash sales totaled $135,000. Credit sales totaled $289,000. Cash collections from customers for services yet to be provided totaled $48,000. An $10,000 gain from the sale of property and equipment occurred. Interest income totaled $8,700. How much of these items were included in operating income
Answer:
$434,000
Explanation:
The total amount that should be included in the operating income as follows:
1. Cash sales $135,000
2. Credit sales $289,000
3. Gain from the sale of property and the equipment $10,000
Operating income $434,000
hence, the $434,000 should be included in the operating income
a. A ______ of accounts is a list of all accounts a company uses, not including account balances. b. The ______ is a record containing all accounts used by a company, including account balances. c. A(n) ______ describes transcations entering an accounting system, such as a purchase order. d. Increases and decreases in a specific asset, liability,
Answer:
a. A general ledger of accounts is a list of all accounts a company uses, not including account balances.
b. The Chart of accounts is a record containing all accounts used by a company, including account balances.
c. A source document describes transactions entering an accounting system, such as a purchase order.
d. An account contains a record of decreases and increases in a specific revenue, expense, asset, liability, or equity
A company currently using an inspection process in its material receiving department is trying to install an overall cost reduction program. One possible reduction is the elimination of one inspection position. This position test material has a defective content on the average of 0.04. By inspecting all items, the inspector is able to remove all defects. The inspector can inspect 50 units per hour. The hourly rate including fringe benefits for this position is $9. If the inspection position is eliminated, defects will go into product assembly and will have to be replaced later at a cost of $10 each when they are detected in final product testing.
Required:
a. If the inspector position is eliminated, what will the hourly cost of defects be?
b. Should this inspection position be eliminated?
c. What is the cost to inspect each unit?
d. Is there benefit (or loss) from the current inspection process? How much?
Answer:
defects per hour = 0.04
units inspected per hour = 50
inspector's salary per hour = $9
cost per undetected defects = $10
a. If the inspector position is eliminated, what will the hourly cost of defects be?
number of defects per hour = 0.04 x 50 = 2
cost of defects = 2 x $10 = $20
b. Should this inspection position be eliminated?
no, because the cost of eliminating the position is higher than the cost of hiring the inspector
c. What is the cost to inspect each unit?
cost to inspect each unit = $9 / 50 = $0.18 per unit
d. Is there benefit (or loss) from the current inspection process? How much?
the benefit of the inspection process = $20 - $9 = $11 per hour, or $11 / 50 = $0.22 per unit
Use the following information to answer this question.
Bayside, Inc. 2010 Income Statement ($ in thousands)
Net sales $ 5,970
Less: Cost of goods sold 4,320
Less: Depreciation 340
Earnings before interest and taxes 1,310
Less: Interest paid 33
Taxable Income $ 1,277
Less: Taxes 447
Net income $ 830
Bayside, Inc. 2009 and 2010 Balance Sheets ($ in thousands)
2009 2010 2009 2010
Cash $ 90 $195 Accounts payable $ 1,480 $ 1,455
Accounts rec. 980 820 Long-term debt 770 570
Inventory 1,585 2,020 Common stock $ 3,205 $ 3,240
Total $ 2,655 $ 3,035 Retained earnings 840 1,090
Net fixed assets3,640 3,320
Total assets $ 6,295 $ 6,355 Total liab. & equity $ 6,295 $ 6,355
How many dollars of sales are being generated from every dollar of fixed assets? (use 2010 values)
a. $1.72
b. $0.94
c. $0.95
d. $1.64
e. $1.80
Answer:
e. $1.80
Explanation:
Calculation for How many dollars of sales are being generated from every dollar of fixed assets
Using this formula
Sales generated by every dollar of fixed assets= Net sales/Fixed assets
Let plug in the formula
Sales generated by every dollar of fixed assets= 5,970/3,320
Sales generated by every dollar of fixed assets= $1.798
Sales generated by every dollar of fixed assets=$1.80 (Approximately)
Therefore How many dollars of sales are being generated from every dollar of fixed assets will be $1.80
Some firms pool overhead into a single plantwide overhead pool, while others accumulate overhead costs into manufacturing departments, each of which has an overhead cost pool and overhead cost application rate. Which approach is likely to provide more accurate cost numbers for cost estimating, pricing, and performance evaluation?
Answer:
departmental rate
Explanation:
From the question we are informed about Some firms which pool overhead into a single plantwide overhead pool, while others accumulate overhead costs into manufacturing departments, each of which has an overhead cost pool and overhead cost application rate. In this case, the approach likely to provide more accurate cost numbers for cost estimating, pricing, and performance evaluation is departmental overhead rate.
The departmental overhead rate can be regarded as expense rate that is been calculated in production process of a factory for each of the departments. It varies at stages of the production process
The following balance sheet for the Hubbard Corporation was prepared by the company:
HUBBARD CORPORATION
Balance Sheet
At December 31, 2021
Assets
Buildings $754,000
Land 262,000
Cash 64,000
Accounts receivable (net) 128,000
Inventory 248,000
Machinery 284,000
Patent (net) 104,000
Investment in equity securities 68,000
Total assets $1,912,000
Liabilities and Shareholders' Equity
Accounts payable $219,000
Accumulated depreciation 259,000
Notes payable 508,000
Appreciation of inventory 84,000
Common stock (authorized and issued
104,000 shares of no par stock) 416,000
Retained earnings 426,000
Total liabilities and shareholders' equity $1,912,000
Additional information:
The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $54,000 but, due to a significant increase in market value, is listed at $128,000. The increase in the land account was credited to retained earnings. The investment in equity securities account consists of stocks of other corporations and are recorded at cost, $24,000 of which will be sold in the coming year. The remainder will be held indefinitely. Notes payable are all long term. However, a $140,000 note requires an installment payment of $35,000 due in the coming year. Inventory is recorded at current resale value. The original cost of the inventory is $164,000.
Required:
Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2018.
Answer:
Assets
Current assets
Cash $64,000
Accounts receivable (net) $128,000
Inventory $164,000
Available for sale securities $24,000
Total current assets $380,000
Non-current assets
Buildings $754,000
Land $188,000
Machinery $284,000
Patent (net) $104,000
Investment in equity securities $44,000
Accumulated depreciation 259,000
Total non-current assets $1,115,000
Total assets $1,495,000
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $219,000
Current portion of long term debt $35,000
Total current liabilities $254,000
Long term liabilities
Notes payable $473,000
Total long term liabilities $473,000
Stockholders' equity
Common stock (authorized and issued
104,000 shares of no par stock) $416,000
Retained earnings $352,000
Total equity $768,000
Total liabilities and shareholders' equity $1,495,000
Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost. Last year, the company sold 60,000 of these balls, with the following results:
Sales (60,000 balls) $1,500,000
Variable expenses 900,000
Contribution margin 600,000
Fixed expenses 375,000
Net operating income $225,000
Required:
a. Compute the CM ratio and the break-even point in balls.
b. Compute the the degree of operating leverage at last year
Answer:
A. 37,500 balls
B.2.67
Explanation:
A. Compution for the CM ratio and the break-even point in balls.
First step is to calculate the Contribution margin
Selling price $25 100%
Variable expenses $15 60%
Contribution margin $10 40%
($25-$15)
Now let calculate the CM ratio and the break-even point in balls using this formula
Unit sales to break even=Fixed expenses/Unit contribution margin
Let plug in the formula
Unit sales to break even=$375,000/$10
Unit sales to break even= 37,500 balls
Therefore the CM ratio and the break-even point in balls will be 37,500 balls
b. Computation for the degree of operating leverage at last year
Using this formula
Degree of operating leverage =Contribution margin/Net operating income
Let plug in the formula
Degree of operating leverage=$600,000/$225,000=
Degree of operating leverage = 2.67 (rounded)
Therefore the degree of operating leverage at last year will be 2.67
Markel entered into a contract with Jaylin to paint a portrait for her in consideration of $600. This contract was freely negotiated. There was nothing in the terms of the agreement about when Markel had to start on the portrait or how long it should take him to finish. It took Markel a long time to complete the portrait, almost 18 months. Which of the following is true of this contract?
a. It must be in writing because it took longer than one year to complete.
b. It must be in writing because it was for more than $500.
c. It is a unilateral contract.
d. The contract need not be in writing.
Answer:
It is a unilateral contract.
Explanation:
A unilateral contract is a type of contract where only one party of the persons involved in the contract agrees to offer something.
In this case, Markel is offering to give Jaylin $600 for her portrait and Jaylin is not giving any specified time of delivery.
The contract is termed as the legal agreement between two-person that defines the rights and duties between the individuals or among the parties.
It is a legally enforceable obligation or the boundation between the person that accepts at their own wish for the exchange of the goods and services.
The correct option is c. It is a unilateral contract.
A unilateral contract is a type of contract where only one party of the persons involved in the contract agrees to offer something.
In this case, Markel is offering to give Jaylin $600 for her portrait and Jaylin is not giving any specified time of delivery. This is the correct option because it has been specified in the context itself about the one side contract by Markel.
To know more about the unilateral contract, refer to the link below:
https://brainly.com/question/25313756