Grand Lips produces a lip balm used for​ cold-weather sports. The balm is manufactured in a single processing department. No lip balm was in process on May 31​, and Grand started production on 20,500 lip balm tubes during June. Direct materials are added at the beginning of the​ process, but conversion costs are incurred evenly throughout the process. Completed production for June totaled 15,300 units. The June 30 work in process was 30​% of the way through the production process. Direct materials costing $4,305 were placed in production during June​, and direct labor of $3,320 and manufacturing overhead of $1,738 were assigned to the process.

Required:
a. Draw a time line for Great Lips.
b. use the time line to help you compute the total equivalent units and the cost per equivalent unit for June.
c. Assign total costs to (a) units completed and transferred to Finished Goods and (b) units still in process at June 30.
d. Prepare a T-account for Work in Process Inventory to show activity during June, including the June 30 balance.

Answers

Answer 1

Answer:

a. see attachment

b.

total equivalent units : Materials = 30,500 units and Conversion Costs = 16,860

cost per equivalent unit : Materials = $0.14 and Conversion Costs = $0.30

c.

(a) units completed and transferred to Finished Goods = $6,732

(b) units still in process at June 30 = $1,196

d.

Journals

Work In Process :Direct Materials $4,305 (debit)

Raw Materials $4,305 (credit)

Being Raw Materials used in Production

Work In Process :Direct Labor  $3,320 (debit)

Salaries Payable $3,320  (credit)

Being Labor used in Production

Work In Process ; Overheads $1,738 (debit)

Overheads $1,738 (credit)

Being Overheads Assigned to Production

Finished Goods $6,732 (debit)

Work In Process $6,732 (credit)

Being Units transferred to Finished Goods

Explanation:

Calculation of Equivalent units of Production in respect with Raw Materials and Conversion Costs

1. Materials

Ending Work In Process (5,200 × 100%)                                         5,200

Completed and Transferred Out (15,300 × 100%)                         15,300

Equivalent units of Production in respect with Raw Materials     30,500

2. Conversion Costs

Ending Work In Process (5,200 × 30%)                                            1,560

Completed and Transferred Out (15,300 × 100%)                         15,300

Equivalent units of Production in respect with Conversion Cost 16,860

Calculation of Cost per Equivalent unit of production  in respect with Raw Materials and Conversion Costs

Unit Cost = Total Cost ÷ Total Equivalent units

1. Materials

Unit Cost =  $4,305 ÷ 30,500

                = $0.14

2. Conversion Costs

Unit Cost =  ($3,320 + $1,738) ÷ 16,860

                = $0.30

3. Total unit cost

Total unit cost = Material Cost + Conversion Cost

                        = $0.14 + $0.30

                        = $0.44

Calculation of costs assigned to (a) units completed and transferred to Finished Goods and (b) units still in process at June 30.

(a) units completed and transferred to Finished Goods

Total Cost = units completed and transferred out × total unit cost

                 = 15,300 × $0.44

                 = $6,732

(b) units still in process at June 30.

Total Cost = Materials Cost + Conversion Cost

                 = $0.14 × 5,200 + $0.30 × 1,560

                 = $1,196

Grand Lips Produces A Lip Balm Used For Cold-weather Sports. The Balm Is Manufactured In A Single Processing

Related Questions

g Phil rented out his home for 12 days and collected $50,000 of rental income. How much should Phil include in his gross income for the 12 rental days

Answers

Answer:

$0

Explanation:

The rules regarding rental income of your house are simple. You must include all income that you earn from renting your house, condo, etc., if the total rental period for the year is more than 14 days (15 days or more). Since Phil only rented his house for 12 days, then he does not need to include it in his gross income.

Which of the following are examples of career clusters? Select all that apply. PLEASE HURRY​

Answers

Answer:

E, C, B

Explanation:

Those seem like they'd be Carrer clusters

Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows:

Job 201 $4,280
Job 202 2,140
Job 203 1,690
Job 204 3,140

Factory supervision 1,460 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $22 per direct labor hour. The direct labor rate is $15 per hour. If required, round final answers to the nearest dollar.

Required:
a. Journalize the entry to record the factory labor costs.
b. Journalize the entry to apply factory overhead to production for November.

Answers

Answer:

Part a.

Work In Process : Job 201 $64,200 (debit)

Work In Process : Job 202 $32,100 (debit)

Work In Process : Job 203 $25,350 (debit)

Work In Process : Job 204 $47,100 (debit)

Salaries Payable $168,750 (credit)

Part b.

Work In Process : Job 201 $94,160 (debit)

Work In Process : Job 202 $47,080 (debit)

Work In Process : Job 203 $37,180 (debit)

Work In Process : Job 204 $69,080 (debit)

Overheads $168,750 (credit)

Explanation:

Calculation of Labor Cost :

Job 201  = 4,280 hours × $15 = $64,200

Job 202 = 2,140 hours × $15  = $32,100

Job 203 = 1,690 hours × $15  = $25,350

Job 204 = 3,140 hours × $15  = $47,100

Application of overhead to jobs :

Job 201  = 4,280 hours × $22 = $94,160

Job 202 = 2,140 hours × $22  = $47,080

Job 203 = 1,690 hours × $22   = $37,180

Job 204 = 3,140 hours × $22 = $69,080

Adelberg Corporation makes two products: Product A and Product B. Annual production and sales are 1,500 units of Product A and 1,500 units of Product B. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.4 direct labor-hours per unit and Product B requires 0.2 direct labor-hours per unit. The total estimated overhead for next period is $87,630. 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:
Expected Activity
Activity Cost Pool Estimated Overhead Costs Product A Product B Total
Activity 1 $ 41,400 1,000 500 1,500
Activity 2 15,720 800 400 1,200
General Factory 30,510 600 300 900
Total $ 87,630
(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 activity-based costing system is closest to:_________
a. $42.90
b. $9.10
c. $21.30
d. $63.92

Answers

Answer:

Results are below.

Explanation:

First, we need to calculate the predetermined overhead rate for each activity:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Activity 1= 41,400/1,500= $27.6 per unit of activity

Activity 2= 15,720/1,200= $13.1 per unit of activity

General Factory= 30,510/900= $33.9 per direct labor hour

Now, we can allocate overhead to product B:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Activity 1= 27.6*500= $13,800

Activity 2= 13.1*400= $5,240

General Factory= 33.9*300= $10,170

Total allocated overhead= $29,210

Unitary allocated overhead= 29,210/1,500= $19.47

he GDP deflator in year 4 is 120 and the GDP deflator in year 5 is 130. The rate of inflation between years 4 and 5 is

Answers

Answer:

8.33%

Explanation:

The GDP deflator in year 4 is 120

The GDP deflator in year 5 is 130

Therefore the rate of inflation between year 4 and year 5 can be calculated as follows

= 130/120

= (1.0833 -1) × 100

= 0.0833 × 100

= 8.33%

Hence the rate of inflation between year 4 and 5 is 8.33%

A company had a tractor destroyed by fire. The tractor originally cost $141,000 with accumulated depreciation of $74,400. The proceeds from the insurance company were $36,000. The company should recognize:

Answers

Answer:

The correct answer is "$30,600". The further explanation is given below.

Explanation:

The given values are:

Tractor's cost

= $141,000

Accumulated depreciation

= $74,400

Now,

The book value on sale's date will be:

= [tex]Cost-Accumulated \ depreciation[/tex]

= [tex]141,000-74400[/tex]

= [tex]66,600[/tex] ($)

The Loss on sale is:

= [tex]66,600-36,000[/tex]

= [tex]30,600[/tex]

Mr Store who runs his photocopy business working 8 hours per day process 100 scripts. He estimates his labour cost to be € 9 per hour. Also he has estimated that the total material cost for each script is approximately € 2; while the daily expenses are €28. Calculate the multifactor productivity. In an effort to increase the rate of the photocopy process to 150 scripts, he decides to change the quality of ink thus raising the mate- rial cost to € 2.5 per day. Is the new productivity better than before? If Mr Store would like to increase the photocopy process to 150 scripts without sacrificing the initial multifactor productivity, by what amount has the material costs to be increased?

Answers

Answer:

A) 0.33 scripts per euro

B) The new productivity is worse than the old productivity

C) 0.333 euros per script

Explanation:

number of hours worked per day = 8

number of scripts processed per day = 100

Labor cost per hour = 9 euros

Total labor cost per day = 9 * 8 = 72 euros

material cost per script = 2 euros

Total material cost per day = 2 * 100 = 200 euros

daily expenses = 28 euros

A) Calculate the multifactor productivity

= output / Total cost

Total cost =  ( 72 + 200 + 28 ) = 300

= 100 / 300

= 0.33 scripts per euro

B ) compare the old and new productivity

Old productivity = 0.33 scripts / euro

new multifactor productivity

= output / Total cost

Total cost = (8*9)+(150*2.5)+28 = 475

= 150 / 475

= 0.3158 scripts per euro

hence the new productivity is worse than the old productivity

C ) using the initial multifactor productivity of 0.333

calculate the target total cost = output / multifactor of productivity

= 150/0.333

= 450 euros

hence  Material cost = (450 - 8*9-28)/150

= 2.33 euro per script

So, the material cost will be increased by = 2.33 euros - 2

euros

= 0.333 euros per script

The following inventory information is available for Ricci Manufacturing Corporation for the year ended December 31, 2017:

Beginning Ending
Inventories: Raw materials $17,000 $19,000
Work in process 9,000 14,000
Finished goods 11,000 8,000
Total $37,000 $41,000

In addition, the following transactions occurred in 2017:

1. Raw materials purchased on account, $75,000.
2. Incurred factory labor, $80,000, all is direct labor. (Credit Factory Wages Payable).
3. Incurred the following overhead costs during the year: Utilities $6,800, Depreciation on manufacturing machinery $8,000, Manufacturing machinery repairs $9,200, Factory insurance $9,000 (Credit Accounts Payable and Accumulated Depreciation).
4. Assigned $80,000 of factory labor to jobs.
5. Applied $36,000 of overhead to jobs. Instructions

Required:
a. Journalize the above transactions.
b. Reproduce the manufacturing cost and inventory accounts.
c. From an analysis of the accounts, compute the following:

1. Raw materials used.
2. Completed jobs transferred to finished goods.
3. Cost of goods sold.
4. Under- or overapplied overhead.

Answers

Answer:

Ricci Manufacturing Corporation

a. Journal Entries;

1. Debit Raw Materials Inventory $75,000

Credit Accounts Payable $75,000

To record the purchase of materials on account.

2. Debit Factory Wages $80,000

Credit Factory Wages Payable $80,000

To record factory labor incurred on account.

3. Debit Manufacturing Overhead:

             Utilities $6,800

             Depreciation $8,000

             Machinery Repairs $9,200

             Factory Insurance $9,000

 Credit: Accounts Payable $25,000

             Accumulated Depreciation $8,000

To record manufacturing overhead costs incurred.

4. Debit Work in Process $80,000

Credit Factory Wages $80,000

To record the assignment of factory labor to jobs.

5. Debit Work in Process $36,000

Credit Manufacturing Overheads $36,000

To apply overhead to jobs.

b. Manufacturing cost and Inventory Accounts:

Raw Materials

Accounts Titles          Debit       Credit

Balance                   $17,000

Accounts payable   75,000

Work in Process                        73,000

Balance                                    $19,000

Work in Process

Accounts Titles          Debit       Credit

Balance                   $9,000

Raw materials         73,000

Factory Wages       80,000

Manuf. Overhead  36,000

Finished Goods                   $184,000

Balance                                  $14,000

Finished Goods

Accounts Titles          Debit       Credit

Balance                   $11,000

Work in Process    184,000

Cost of goods sold              $187,000

Balance                                   $8,000

c. Computation of:

1. Raw materials used

= Beginning Inventory + Purchases - Ending Inventory

= $17,000 + $75,000 - $19,000

= $73,000

2. Completed jobs transferred to finished goods

= Beginning WIP + Raw materials used + Labor + Overhead - Ending WIP

= $9,000 + $73,000 + $80,000 + $36,000 - $14,000

= $184,000

3. Cost of goods sold

= Beginning Finished Goods + Manufacturing Costs - Ending Finished Goods

= $11,000 + $184,000 - $8,000

= $197,000

4. Under- or overapplied overhead

= Total Incurred manufacturing overhead - applied manufacturing overhead

= $33,000 - $36,000

= $3,000 over-applied

Explanation:

a) Data:

                           Beginning        Ending

Inventories:

Raw materials      $17,000         $19,000

Work in process     9,000            14,000

Finished goods      11,000             8,000

Total                   $37,000          $41,000

Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing. Because of this, the company's profits are driven by the amount of work Tom does. If he works 40 hours each week, the company's EBIT will be $615,000 per year; if he works a 50 hour week, the company's EBIT will be $755,000 per year. The company is currently worth $3.85 million. The company needs a cash infusion of $1.95 million, and it can issue equity or issue debt with an interest rate of 7 percent. Assume there are no corporate taxes.
What are the cash flows to Tom under each scenario?

Answers

Answer:

Scenario 1: debt is issued

interest expense = $1,950,000 x 7% = $136,500

amount of hours                  EBIT               Net income (all for Tom)

Tom works    

40                                     $615,000           $478,500

50                                    $755,000            $618,500

Scenario 2: equity is issued

amount of hours            Net income         Tom's share    

Tom works                                                  ($3.85 / $5.8 = 66.38%)      

40                                     $615,000           $408,237

50                                    $755,000            $501,169

Which example requires persuasion from the manager? Asking a colleague to join a leadership panel Giving instructions on how to format a report Giving instructions for answering the phone Requesting details on how to perform a job

Answers

Answer:

Asking a colleague to join a leadership panel

Explanation:

Persuasion is the act of convincing a person to behave in a certain way based on beliefs, attitudes, motivation, and intentions shared.

A manager will have to get the buy-in of his subordinates in various scenarios.

The exercise of power or force does not always bring the best results.

The scenario below require persuasion because the other parties have to have a buy-in to the request. They are not mandated to comply.

- Asking a colleague to join a leadership panel

Which government tax incentive retirement account allows a person to contribute after-tax earnings?
a. Contribution matching
b. Roth IRA
c. Traditional IRA
d. 529 plan

Answers

Answer:

B.

Explanation:

If you look this question up on your main search engine, it should give you this answer. Let me know if it's wrong.

The tax incentive being provided by government to eligible taxpayers at the time of retirement that allows an individual for contributing after tax income is the Traditional IRA.

Option C is correct.

What is the after tax-income?

After tax income is the amount being earned by individual after paying off the taxes on the basis of their filing status. It is determined by deducting tax expense from the amount of gross income.

Traditional IRA is one of the retirement account that permits a person for making contributions of gross revenues or after-tax revenues for investment. If the amount invested is complied with the rules as framed by tax authorities, then it can be considered for tax deductions. This leads to lowering of tax liability to some extent.

Therefore, the traditional IRA is the tax incentive allowing an individual on after tax income.

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Early in the current year, Amazon Co. purchased the Rio Silver Mine at a cost of $30,000,000. The mine was estimated to contain 400,000 tons of ore and to have a residual value of $7,500,000 after mining operations are completed. During the year, 115,000 tons of ore were removed from the mine. At year-end, the book value of the mine is:

Answers

Answer:

$23,531,250

Explanation:

Calculation for the book value of the mine using this formula

Book value =(Cost of purchased-Residual value )/Estimated tons* (Tons of ore-Cost of purchased)

Let plug in the formula

Book value=($30,000,000 - $7,500,000)/400,000

Book value = $56.25

Book value=$56.25*115,000 = $6,468,750;

Book value= $30,000,000 - $6,468,750

Book value= $23,531,250

Therefore the book value of the mine will be $23,531,250

Hot dogs and hot dog buns are complements. An increase in the price of flour used to make hot dogs buns will:

a. increase consumer surplus in the market for hot dog buns and decrease producer surplus in the market for hot dogs.
b. increase consumer surplus in the market for hot dogs and increase producer surplus in the market for hot dog buns.
c. decrease consumer surplus in the market for hot dog buns and increase producer surplus in the market for hot dogs.
d. decrease consumer surplus in the market for hot dog buns and decrease producer surplus in the market for hot dogs.

Answers

Answer:

a)decrease consumer surplus in the market for hot dog buns and decrease producer surplus in the market for hot dogs

Explanation:

Hot dogs and hot dog buns are complements. An increase in the price of flour used to make hot dogs buns will decrease consumer surplus in the market for hot dog buns and decrease producer surplus in the market for hot dogs.

In economics, complements goods are ones(two goods) that their usage is very close,when there is increase in price of one, the demand of other goods that complement it falls, and from the question Hot dogs and hot dog buns are complementary goods.

consumer surplus is the difference between the price that was actually paid for a goods/service by the consumer and the price the consumer is willing to pay.

Since, Hot dogs and hot dog buns are complementary goods As the flour's price rise here consumer surplus for hot dog buns will definitely decreases, then the producer surplus decreases for hot dogs.

Question 7
5 pts
(03.02 MC)
Gina made a down payment on a motorcycle. What incentive did she have for making a down payment?
O A tax break
O A higher loan rate
O A less secure loan
O A reduced time in debt

Answers

Because Gina made a down payment on a motorcycle, an incentive that she have for making such down payment is a reduced time in debt.

What do we mean by down payment?

Basically, a down payment refers to the cash that the buyer pays upfront in a transaction and other large purchases. These payment are typically a percentage of the purchase price and can range from as little as 3% to as much as 20%

Here, she intends to purchase that motorbike on credit and by making a down-payment, she is reducing the amount she needs to borrow to buy the bike. So, a reduced loan amount means that Gina will require less to repay which implies that the interest to be paid will reduce.

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The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021:

Penske Stanza
Revenues $(842,000 ) $(568,000 )
Cost of goods sold 299,700 142,000
Depreciation expense 207,000 304,000
Investment income Not given 0
Dividends declared 80,000 60,000
Retained earnings, 1/1/21 (668,000 ) (222,000 )
Current assets 572,000 566,000
Copyrights 1,076,000 449,500
Royalty agreements 604,000 1,180,000
Investment in Stanza Not given 0
Liabilities (546,000 ) (1,631,500 )
Common stock (600,000 )($20 par) (200,000 ) ($10 par)
Additional paid-in capital 150,000 80,000


On January 1, 2013, Penske acquired all of Stanza's outstanding stock for $680,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition copyrights (with a six-year remaining life) have a $440,000 book value but a fair value of $560,000.

a. As of December 31,2013, what is the consolidated copyrights balance?
b. For the year ending December 31,2013, what is consolidated net income?
c. As of December 31,2013, what is the consolidated retained earnings balance?
d. As of December 31,2013, what is the consolidated balance to be reported for goodwill?

Answers

Answer:

a. $1,625,500

b. $437,300

c. $1,025,300

d. $58,000

Explanation:

a. As of 31, December 2013, what is the consolidated copy rights balance

b. For the year ending, December 31, 2013, what is consolidated net income

c. As of December 31, 2013, what is the consolidates retained earnings balance

d. As of December 31, 2013 what is the consolidated balance to be reported for Goodwill.

Please find attached detailed explanations to the above questions and answers.

All of the following are forms of cognitive bias except:_____.
A. Confirmation bias: This bias occurs when decision makers seek out evidence that confirms their previously held beliefs, while discounting or diminishing the impact of evidence in support of differing conclusions.
B. Anchoring: This is the overreliance on an initial single piece of information or experience to make subsequent judgments. Once an anchor is set, other judgments are made by adjusting away from that anchor, which can limit one’s ability to accurately interpret new, potentially relevant information.
C. Shifting: This is the bias involved in shifting perspectives too rapidly, thereby forgoing objectivity and sound reasoning.
D. Halo effect: This is an observer’s overall impression of a person, company, brand, or product, and it influences the observer’s feelings and thoughts about that entity’s overall character or properties. It is the perception, for example, that if someone does well in a certain area, then they will automatically perform well at something else regardless of whether those tasks are related.
E. Overconfidence bias: This bias occurs when a person overestimates the reliability of their judgments. This can include the certainty one feels in her own ability, performance, level of control, or chance of success.

Answers

Answer:

Option C would be the correct answer.

Explanation:

Throughout objective reasoning, cognitive bias seems to be a weakness that has been triggered by that of the human brain's propensity to interpret knowledge through a prism of individual perspective including interests. The types of cognitive bias but for the remaining change.  

The types of cognitive bias are almost as follows:

Overconfidence biasConfirmation bias Halo effect Anchoring bias

The latter considerations provided are not closely linked to the case provided. So, the answer above is the right one.

Elaine Sweeney went to Ragged Mountain Ski Resort in New Hampshire with a friend. Elaine went snow tubing down a run designed exclusively for snow tubers. There were no Ragged Mountain employees present in the snow-tube area to instruct Elaine on the proper use of a snow tube. On her fourth run down the trail, Elaine crossed over the center line between snow-tube lanes, collided with another snow tuber, and was injured. Elaine filed a negligence action against Ragged Mountain seeking compensation for the injuries that she sustained. Two years earlier, the New Hampshire state legislature had enacted a statute that prohibited a person who participates in the sport of skiing from suing a ski-area operator for injuries caused by the risks inherent in skiing. Using the information to answer the following questions.

a. What defense will Ragged Mountain probably assert?
b. The central question in this case is whether the state statute establishing that skiers assume the risks inherent in the sport bars Elaine's suit. What would your decision be on this issue? Why?
c. Suppose that the court concludes that the statute applies only to skiing and not to snow tubing. Will Elaine's lawsuit be successful? Explain.
d. Now suppose that the jury concludes that Elaine was partly at fault for the accident. Under what theory might her damages be reduced in proportion to the degree to which her actions contributed to the accident and her resulting injuries?

Answers

Explanation:

1. Ragged mountains assertion of defense is 'assumption of risk'. In this scenario, Elaine Sweeney exposed herself to risk while snow tubing at the absence of an instructor. snow tube run is solely for snow tubers. ragged mountain can use this defense

2. new hampshire has prohibited people from suing for injuries received due to skiing risks. in a case of this sort, ms Elaine would be assumed to know all possible risks involved. the defendant will be favored since it has been advised that people should not go into sports of these sorts witout good training and an instructor.

3. no Elaine's lawsuit will not be successful if the conclusion of the court is that the statue applies to skiing and not to snow tubing. one should be cautious during snow tubing. she went snow tubing without proper care. it is likely that she may not win the case.

4. the theory is contributory negligence theory. her damages is going to be reduced in proportion with the actions that has brought about her accident. for this reason she is partly responsible.

The Ragged Mountains were established in the year 1997 and were made to the knowledge of the public in the year 1999.

The mountains included a collection of Charlottesville surrounded by the river basin everywhere with almost the oak and yellowwoods.

1. The 'assumption of risk' defense is used by the Ragged Mountains. Elaine Sweeney put herself in danger while snow tubing in the absence of an instructor in this scenario.

The snow tube run is exclusively for tubers. This defense can be used by the ragged mountain.

2. The state of New Hampshire has made it illegal to sue for injuries sustained while skiing. In a situation like this, it's reasonable to assume that Ms. Elaine is aware of all potential dangers.

The defendant will be favored because it has been suggested that people should not participate in sports of this nature without proper training and supervision.

3. No, Elaine's lawsuit will fail if the court decides that the statute only applies to skiing and not to snow tubing. Snow tubing should be approached with caution.

She went snow tubing without taking the necessary precautions. It is very likely that she will lose the case.

4. Contributory negligence theory is the fourth theory. Her damages will be reduced in direct proportion to the actions that caused her accident. As a result, she bears some responsibility.

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The nation of Textilia does not allow imports of clothing. In its equilibrium without trade, a T-shirt costs $24, and the equilibrium quantity is 4 million T-shirts. One day, after reading Adam Smith's The Wealth of Nations while on vacation, the president decides to open the Textilian market to international trade. The market price of a T-shirt falls to the world price of $16. The number of T-shirts consumed in Textilia rises to 8 million, while the number of T-shirts produced declines to 2 million.
a. Illustrate the situation just described in a graph. Your graph should show all the numbers.
b. Calculate the change in consumer surplus, producer surplus, and total surplus that results from opening up trade. (Hint: Recall that the area of a triangle is1/2×base×height

Answers

Answer:

a) attached graph

b) triangle S represents the change in supplier surplus = 1/2 x -2,000,000 shirts x $8 = -$8,000,000

triangle C represents the change in consumer surplus = 1/2 x 4,000,000 shirts x ($8) = $16,000,000

Air conditioning for a college dormitory will cost $2.1 million to install and $170,000 per year to operate at current prices. The system should last 19 years. The real cost of capital is 9%, and the college pays no taxes. What is the equivalent annual cost

Answers

Answer:

$404,634

Explanation:

the formula that we can use to calculate equivalent annual costs is:

EAC = asset price x {discount rate / [1 - (1 + discount rate)⁻ⁿ]} + annual maintenance costs

EAC = $2,100,000 x {0.09 / [1 - (1.09)⁻¹⁹]} + $170,000

EAC = $2,100,000 x {0.09 / [1 - (1.09)⁻¹⁹]} + $170,000 = $234,634 + $170,000 = $404,634

EAC is basically the cost of using an asset during its lifetime. We are determining the cost per year, assuming that they are all equal.

Wainwright Corporation owns and operates a wholesale warehouse.
The following transactions occurred during March 2016:
1. Issued 30,000 shares of capital stock in exchange for $300,000 in cash.
2. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed.
3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000.
5. Paid $5,000 in rent on the warehouse building for the month of March.
6. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2016.
7. Paid $70,000 on account for the merchandise purchased in 3.
8. Collected $55,000 from customers on account.
9. Recorded depreciation expense of $1,000 for the month on the equipment.
Required:
1.Analyze each transaction and classify each as a financing, investing and/or operating activity.
A transaction can represent more than one type of activity.
Also indicate the cash effect of each, if any.
Activities:
Transaction Financing Investing Operating
1
2
3
4
5
6
7
8
9

Answers

Answer:

Operating transactions

-$5000

-$6000

-$70000

$55000

Total = -$26000

Financing transactions

+ $300000

+ $30000

Total = $330000

Investing transactions

-$10000

- $30000

Explanation:

Operating transactions

-$5000

-$6000

-$70000

$55000

Total = -$26000

Financing transactions

+ $300000

+ $30000

Total = $330000

Investing transactions

-$10000

- $30000

Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions. ok ht inces
a. Owner invested $60,000 cash in the company along with equipment that had a $26,000 market value in exchange for its common stock.
b. The company paid $2,700 cash forfrent of office space for the month.
c. The company purchased $14,000 of additional equipment on credit (payment due within 30 days).
d. The company completed work for a client and immediately collected the $2,600 cash earned.
e. The company completed work for a client and sent a bill for $7,700 to be received within 30 days.
f. The company purchased additional equipment for $5,100 cash.
g. The company paid an assistant $4,000 cash as wages for the month.
h. The company collected $4,300 cash as a partial payment for the amount owed by the client in transaction e.
i. The company paid $14,000 cash to settle the liability created in transaction c.
j. The company paid $1,100 cash in dividends to the owner (sole shareholder). ad time
Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)

Answers

Answer:

I used an excel spreadsheet because there is not enough room here.    

Explanation:

Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator, who chooses the best proposal (effectively giving one side or the other $3 million). Each side can choose to hire, or not hire, an expensive labor lawyer (at a cost of $300,000) who is effective at preparing the proposal in the best light. If neither hires a lawyer or if both hire lawyers, each side can expect to win about half the time. If only one side hires a lawyer, it can expect to win nine tenths, or 0.9, of the time. Use the given information to fit in the expected payoff, in dollars, for each cell in the matrix.
Management (M)
No Lawyer Lawyer
No Lawyer L: M: S L: S M: S
Labor (L) Lawyer L: M: S L: S M: S
The Nash equilibrium for this game is for Management to_____a lawyer, and for Labor to_____a lawyer.

Answers

Answer: hire; hire

Explanation:

The Nash equilibrium for this game is for Management to hire a lawyer, and for Labor to hire a lawyer.

The Nash Equilibrium is the solution in a game where the parties are not cooperative with one another and refers to the strategy at which neither party would not want to move from as it would not benefit them to do so.

The Nash Equilibrium here is that they both hire a lawyer because if one side decides not to hire a lawyer, they could win only one tenths of the time. Both of them will therefore hire lawyers and neither would go without a lawyer on the chance that the other hires a lawyer.

Three workers each take home two packs of Post-It notes at a cost of $.67 per pack.

Answers

Answer:

$ 4.02

Explanation:

Take two packs ×3 and it = 6 then take 6 × 67 and you get $4.02

Which of the following best defines a financial intermediary? a claim by a buyer to a future payment by a seller a collection of stocks and bonds issued to investors a financial institution that transforms investor funds into financial assets an asset sold by a company which entitles the buyer to partial ownership

Answers

Answer:

Option C (A financial.......assets) is the correct choice.

Explanation:

A financial intermediary seems to be an entity that serves as an intermediary seen between the listing agent as well as the buyer's transactions. They help convert investment properties, swap properties between producers and consumers, respectively. Therefore, a financial intermediary would be a finance company that converts capital instruments into investment capital.

Other decisions are given aren't connected to the results provided. So that is indeed the safest decision.

Alpha Inc. has receivables from unrelated parties with a face value of $5,000. It transfers these receivables to bank for $4,500, without recourse. It will continue to collect the receivables, depositing them in a non-interest-bearing bank account with the cash flows remitted to the bank at the end of each month. It is not allowed to sell or pledge the receivables to anyone else and is under no obligation to repurchase the receivables from bank. Which of the following is the appropriate treatment for these Accounts receivables?
A) It should show these receivables in its Balance Sheet.
B) It should amortize these receivables.
C) It should derecognize these receivables.
D) It should derecognize these receivables if it retains the interest earned on these.

Answers

Answer:

C). It should derecognize these receivables.

Explanation:

Derecognition is characterized as the process of removing or derecognizing a financial asset or liability from the company's balance sheet that was previously acknowledged. In the given situation, the appropriate treatment for the Account receivables would be to dercognize it as the organization does not possess any control over them. Thus, option C is the correct answer.

Two methods can be used for producing solar panels for electric power generation. Method 1 will have an initial cost of $550,000, an annual operating cost of $160,000 per year, and $125,000 salvage value after its three-year life. Method 2 will cost $830,000 with an annual operating cost of $120,000. and a $240,000 salvage value after its five-year life. The company has asked you to determine which method is better, but it Wants the analysis done over a three-year planning period. The salvage value of Method 2 will be 35% higher after three years than it is after five years. If the company's minimum attractive rate of return is 10% per year, which method should the company select?

Answers

Answer:

the company should choose method 1

Explanation:

                                                  Method 1                Method 2

Initial outlay                              $550,000               $830,000

operating costs (years 1,2,3)    $160,000                $120,000

salvage value                            $125,000               $324,000

we must determine which alternative has the lowest present value:

method 1 = $550,000 + $160,000/1.1 + $160,000/1.1² + $160,000/1.1³ - $125,000/1.1³ = $550,000 + $145,455 + $132,231 + $120,210 - $93,914 =  $853,982

method 2 = $830,000 + $120,000/1.1 + $120,000/1.1² + $120,000/1.1³ - $324,000/1.1³ = $830,000 + $109,091 + $99,174 + $90,158 - $243,426 = $884,996

The accounting for bond premiums is not the mirror image of that for the bond discounts. Pacific Independent School District issued $100 million of general obligation bonds to finance the construction of new schools. The bonds were issued at a premium of $0.6 million.
1. Prepare the capital projects fund journal entries to record the issue of the bonds and the transfer of the premium to an appropriate fund.
2. Suppose, instead, that the bonds were issued at a discount of $0.6 million but that the project will still cost $100 million. Prepare the appropriate entries.
a. Contrast the entries in this part with those in part 1.
b. Indicate the options available to the school district, and state how they would affect the entries required of the district.
c. Suppose that the government chose to finance the balance of the project with general revenues. Prepare the appropriate capital projects fund entry.

Answers

Answer:

1. Dr Cash$100,600,000

Cr Bond proceeds $100,000,000

Cr Bond proceeds $600,000

Dr Nonreciprocal transfer of bond premium to debt service fund $600,000

Cr Due to debt service fund/Cash $600,000

2. Dr Cash $994,000,000

Dr Other financing sources-bond proceeds(Bond discount)$600,000

Cr Other financing sources-bond proceeds(Face value)$100,000,000

2a. In a situation where the bonds are been issued at a discount the debt services will have unavailable resources that they would send to the capital project fund.

2b. Both the Bonds premiums and that of the discount will be an issue reason been that the uncertainly of the amount of cash or money that are in excess will have to be disposed off as well as the ways of compensating for the cash deficiency

2c. Dr Due from the general fund $600,000

Cr Other financing use- nonreciprocal Transfer from the general fund $600,000

Explanation:

1.Preparation of the capital projects fund journal entries

Dr Cash$100,600,000

($100,000,000+$600,000)

Cr Bond proceeds (Face value amount)$100,000,000

Cr Bond proceeds (Bond premium amount)$600,000

(To record issuance of bonds sold at a premium)

Dr Nonreciprocal transfer of bond premium to debt service fund $600,000

Cr Due to debt service fund/Cash $600,000

(To record the premium payable to the debt service fund)

2. Preparation of the Journal entries.

suppose the bonds were issued at a discount of $0.6 million in which the project will still cost $100 million.

Dr Cash $994,000,000

($100,000,000-$600,000)

Dr Other financing sources-bond proceeds(Bond discount)$600,000

Cr Other financing sources-bond proceeds(Face value)$100,000,000

(To record the issue of bonds at a discount)

2a. When Contrasting the Journal entries in this part with those in part 1 this means that in a situation where the bonds are been issued at discount the debt services will have unavailable resources that they would send to the capital project fund.

2b. The options that are available to the school district and how they would affect the entrees required of the district is that both Bonds premiums as well as that of the discount will be an issue reason been that the uncertainly of the amount of cash or money that are in excess will have to be disposed off as well as the the ways of compensating for the cash deficiency

2c. Preparation of the appropriate capital projects fund Jounal entry

Dr Due from the general fund$600,000

Cr Other financing use- nonreciprocal Transfer from the general fund $600,000

Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Assume the year ended on September 30, 2018.
Accounts Payable $ 610
Accounts Receivable 310
Accumulated Depreciation 910
Cash 310
Common Stock 210
Deferred Revenue 210
Depreciation Expense 310
Equipment 3,210
Income Tax Expense 310
Interest Revenue 110
Notes Payable (long-term) 210
Notes Payable (short-term) 510
Prepaid Rent 110
Rent Expense 410
Retained Earnings 1,510
Salaries and Wages Expense 2,210
Service Revenue 6,230
Supplies 510
Supplies Expense 210
Travel Expense 2,610
Required:
a. Prepare and adjusted trial balance on September 30, 2018.
b. Is the Retained Earnings balance of $1,503 the amount that would be reported on the balance sheet as of September 30, 2018?

Answers

Answer:

Please see attached preparation of the above trial balance and retained Earnings.

Explanation:

Please find attached adjusted trial balance and updated value of retained earning in the balance sheet.

If the expected sales volume for the current period is 9,000 units, the estimated the beginning inventory is 200 units and the desired ending inventory is 300 units, calculate the production budget for the current period.Group of answer choices9,0008,9008,7009,100

Answers

Answer:

Production= 9,100 units

Explanation:

Giving the following information:

Sales= 9,000 units

Beginning inventory= 200 units

Desired ending inventory= 300 units

To calculate the budgeted production for the period, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 9,000 + 300 - 200

Production= 9,100 units

Record the following transactions for Sunland Company using a perpetual inventory system. Include margin explanations for the changes in revenues and expenses.

a. On March 2, Sunland Company sold $928,000 of merchandise to Blossom Company on account. The cost of the merchandise sold was $626,400.
b. On March 6, Blossom Company returned $162,400 of the merchandise purchased on March 2. The cost of the merchandise returned was $109,040.
c. On March 12, Sunland Company received the balance due from Blossom Company.

Answers

Answer:

March 2

Account Receivable : Blossom Company $928,000 (debit)

Cost of Goods Sold $626,400 (debit)

Sales Revenue $928,000 (credit)

Merchandise Inventory $626,400 (credit)

Sale of Merchandise to Blossom Company on credit

March 6

Sales Revenue $$162,400 (debit)

Merchandise Inventory $109,040 (debit)

Account Receivable : Blossom Company $162,400 (credit)

Cost of Goods Sold $109,040 (credit)

Merchandise returned by Blossom Company

March 12

Cash $765,600 (debit)

Account Receivable : Blossom Company $765,600 (credit)

Blossom Company pays for the Account owing

Explanation:

Perpetual Inventory method recalculates the value of goods held after each transaction.

See the Journals and narrations i have prepared above.

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