hamilton construction company uses the percentage of completion method of accounting. in 2020. hamilton began work under
Question Completion:
Hamilton construction company uses the percentage of completion method of accounting. In 2020, Hamilton began work on the construction of a hospital, which provides for a contract price of $2,195,000. Other details follow: 202O 2021 Costs incurred during the year 637,600 1,000,000 Total estimated cost 1,594,000 1,637,600 Billings during the year 427,000 2,195,000 Collections during the year 343,000 1,509,000 What portion of the total contract price would be recognized as revenue in 2020?
Answer options: 2,195,000 878,000 1,097,500 427,000 343,000
Answer:
Hamilton Construction Company
The portion of the total contract price would be recognized as revenue in 2020 is:
= $878,000.
Explanation:
a) Data and Calculations:
Contract price = $2,195,000.
2020 2021
Costs incurred during the year $637,600 $1,000,000
Total estimated cost 1,594,000 1,637,600
Billings during the year 427,000 2,195,000
Collections during the year 343,000 1,509,000
Percentage of completion= Cost incurred in 2020/Total estimated cost in 2020 * 100
= $637,600/$1,594,000 * 100
= 40%
Revenue to be recognized in 2020 = 40% * Contract Price
= $878,000 ($2,195,000 * 40%)
7.You invested in long-term corporate bonds and earned 6.1 percent. During that same time period, large-company stocks returned 12.6 percent, long-term government bonds returned 5.7 percent, U.S. Treasury bills returned 4.2 percent, and inflation averaged 3.8 percent. What average risk premium did you earn
Answer: 1.9%
Explanation:
The risk premium is the return that an investment offers over the risk free rate in the market.
The risk free rate is the return on the U.S. Treasury bill in the same period:
Average risk premium = Return on long term corporate bond - Return on U.S. T-bill
= 6.1% - 4.2%
= 1.9%
The Aqua Liquid Assets Money Market Mutual Fund has a NAV of $1 per share. During the year, the assets held by this fund appreciated by 1.4 percent. If you had invested $50,000 in this fund at the start of the year, how many shares would you own at the end of the year
Answer:
Missing word "Final shares=? Net asset value=?"
Final shares is computed as follows:
= (Amount invested / NAV per share) * (1 + Fund appreciation)
= ($50,000 / $ 1) * (1 + 0.014)
= $50,000 * 1.014
= $50,700
As know that this is a Money Market Mutual Fund, hence the Net asset value of this fund at the end of the year will be also $1.
NoFly Corporation sells three different models of a mosquito "zapper." Model A12 sells for $53 and has variable costs of $45. Model B22 sells for $101 and has variable costs of $81. Model C124 sells for $406 and has variable costs of $315. The sales mix of the three models is A12, 59%; B22, 27%; and C124, 14%. What is the weighted-average unit contribution margin? (Round answer to 2 decimal places, e.g. 15.50.) Weighted-Average Unit Contribution Margin $ ______.
Answer:
$22.86
Explanation:
Model A12 Model B22 Model C124
Selling price per unit $53 $101 $406
Variable costs per unit $45 $81 $315
Contribution margin per unit $8 $20 $91
Weighted-Average Unit Contribution Margin = (Model A12 Contribution margin per unit * Sales mix) + (Model B22 Contribution margin per unit * Sales mix) + (Model C124 Contribution margin per unit * Sales mix)
Weighted-Average Unit Contribution Margin = ($8 * 59%) + ($20 * 27%) + ($91 * 14%)\
Weighted-Average Unit Contribution Margin = $4.72 + $5.4 + $12.74
Weighted-Average Unit Contribution Margin = $22.86
A severe freeze has damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of
Group of answer choices.
A. the supply curve, resulting in a lower equilibrium price.
B. the supply curve, resulting in a higher equilibrium price.
C. the demand curve, as consumers try to economize because of the shortage.
D. the demand curve, resulting in a price ceiling in the market.
Answer:
B. the supply curve, resulting in a higher equilibrium price.
Explanation:
In this scenario, a severe freeze has damaged the Florida orange crop. Thus, the impact on the market for orange juice will be a leftward shift of the supply curve, resulting in a higher equilibrium price.
An equilibrium price can be defined as the price at which the quantity of goods demanded is equal to the quantity of goods supplied.
Additionally, the equilibrium price is generally said to be stable because at this price, the quantity of goods or services demanded is equal to the quantity of goods or services supplied to the consumers.
Jayco has the following expected cash flows from a project. Calculate the payback period of the project. Year 0 (685,000) Year 1 255,000 Year 2 355,000 Year 3 455,000 Year 4 555,000
Answer:
2.16 years
Explanation:
Bonner Metals wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 8.5 percent bonds on the market that sell for $959, make semiannual payments, and mature in 16 years. What should the coupon rate be on the new bonds if the firm wants to sell them at par?
Answer: 8.99%
Explanation:
The coupon rate on the new bonds if the firm wants to sell them at par will be calculated thus:
Par value = 1000
Selling value = 959
Maturity = 16 × 2 = 32
Coupon = 8.5% = 8.5% × 1000 = $85
Semiannual PMT = $85/2 = $42.5
The coupon rate on the new bonds will be:
= Rate(32, 42.5, -959, 1000) × 2
= 8.99
Coupon rate = 8.99%
Assume the state of Alaska placed a tax on playing cards of 5 cents per pack. If the state generated $55500 in revenue, how many packs of cards were sold?
Answer:
The right solution is "1,110,000 units".
Explanation:
Given:
Tax revenue,
= $55500
Tax per good,
= 5 cents
As we know,
⇒ [tex]Tax \ revenue=Tax \ per \ good\times goods[/tex]
By substituting the values, we get
[tex]55500=0.05\times Q[/tex]
[tex]Q=\frac{55500}{0.05}[/tex]
[tex]=1,110,000 \ units[/tex]
Innovation is the introduction of
New goods or Services or Improvement in offering goods or services.
_________________________[tex]\bf \Large \hookrightarrow \:More \: \: Information : [/tex]
[tex]\Large{\textrm{{{\color{blue}{What \: is \: Innovation ? \: }}}}}[/tex]
Innovation is the process and outcome of creating something new, which is also of value.
The viewpoint that business should be privately controlled and not controlled by the government is a perspective of a ________ economy.
Answer:
The viewpoint that business should be privately controlled and not controlled by the government is a perspective of a ____capitalist____ economy.
Explanation:
For example, the US economy provides a good example of a capitalist economy. A capitalist or market economy is also known as capitalism. It is an economic system whereby private individuals or businesses own capital goods or means of production. Therefore, the production of goods and services is based on the market forces of supply and demand. Since individuals and firms fix prices of and decide what goods and services to produce, rather than through central planning by the government, it is also known as a market economy. The opposite is called a command economy, characterized by central government planning.
Ajax Inc. was formed on April 25 and elected a calendar year for tax purposes. Ajax paid $13,200 to the attorney who drew up the articles of incorporation and $7,100 to the CPA who advised the corporation concerning the accounting and tax implications of its organization. Ajax began business operations on July 15. To what extent can Ajax deduct its $20,300 organizational costs on its first tax return
Answer: $5510
Explanation:
For organizations cost up to $50,000, there'll be a deduction of $5000. The remaining non deductible expense will then be spread out for 180 months. Here, the non deductible cost will be:
= ($13200 + $7100) - $5000
= $20300 - $5000
= $15300
The capitalized cost will then be:
= $15300 / 180
= $85 per month.
Since there's an ammortization of 6 months from July, then the capitalized cost will be:
= $85 × 6
= $510
Therefore, the amount that should be deducted on its first tax return will be:
= $5000 + $510
= $5510
Caber corporation applies manufacturing overhead on the basis of machine-hours. at the begining of the most recent year, the company based it predetermined overhead rate on total estimated overhead of $60,600. Actual manufacturing overhead for the year amounted to $59,000 and actual machine-hours were 5,900. The company's predetermined overhead rate for the year was $10.10 per machine-hour.
a. The pre-determined overhead rate was based on how many estimated machine-hours?
A. 5,783.
B. 6,000.
C. 5,900.
D. 5,842 24.
b. The applied manufacturing overhead for the year was closest to:_____.
A. $58,017.
B. $59,590.
C. $60,600.
D. $58,597.
c. The overhead for the year was:_____.
A. $1,010 underapplied.
B. $590 overapplied.
C. $590 underapplied.
D. $1,010 overapplied.
Answer and Explanation:
The calculation of each part is given below:
a. The estimated machine hours is
= $60,600 ÷ 10.10
= 6,000 machine hours
b. The applied manufacturing overhead is
= 5,900 × $10.10
= $59,590
c. The overhead should be
= $60,600 - $59,590
= $1,010 underapplied
In this way each and every part should be determined
So the same should be considered and relevant
Evaluating your data involves examining it in terms of reliability, relevance, expertise, adaptability, and biases.
a. True
b. False
Answer:
a. True
Explanation:
In the case when the data is evaluated so it consist of detail examination with respect how much data is reliable that means how the data gives the actual results, how much it is relevant to the current decision, the data needs expertise in order to make some decisions, the data needs adaptability as per the changes done and the biases also
Therefore the given statement is true
Valley Spa purchased $10,200 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 14% promissory note for $10,200. If the note is dishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.)
Answer:
Debit Accounts Receivable—Valley Spa $10,438 Credit Interest Revenue $238
Credit Notes Receivable $10,200.
Explanation:
Preparation of the the journal entry to record the dishonored note
Debit Accounts Receivable—Valley Spa $10,438
($10,200+$238)
credit Interest Revenue $238
($10,200 x 14% x 60/ 360)
Credit Notes Receivable $10,200
(To record the dishonored note)
Which of these is more likely to be true?
A. An adaptor is likely to consider radical innovations
B. An innovator is likely to consider incremental innovations
C. Large companies often find it easier to adopt radical innovations.
D. Innovators will often push for radical innovations.
Answer: D. Innovators will often push for radical innovations.
Explanation:
A radical innovation is one that when made, changes up the way things were being done in the industry that it appears in. For instance, when the first digital camera was made, it changed photography forever.
This is what innovators want. They want to come up with a product that would change the way things are being done and enable them to take over the market.
Most spells of unemployment are long, and most unemployment observed at any given time is long-term. a. True b. False
Answer: False
Explanation:
Unemployment refers to the individuals that are part of the labor force in an economy but cannot find suitable job for themselves.
Most spells of unemployment are not long but rather short while most unemployment observed at any given time is long-term. It should also be noted that the unemployment problem in an economy is usually because of few workers who are without job for long periods of time.
You are a student with a demanding schedule of classes. You also work part time and your supervisor allows you to determine your schedule. In this situation, your scarce resource is time . In this situation, you will work: multiple choice 2 enough hours to get the money to pay for school. as much as your boss demands and hope your grades do not suffer. very little so you can enjoy school. enough to earn some money but not too much to jeopardize your grades.
Answer: enough to earn some money but not too much to jeopardize your grade
Explanation:
Based on the scenario explained in the question, the student will earn enough to earn some money but not too much to jeopardize his or her grade.
Option A is incorrect as working for enough hours to get the money to pay for school means that the grades will be jeopardized as there won't be time to study or attend classes.
Option B is incorrect because working as much as the boss demands will have a negative effect on grades. Option C is incorrect as well.
The correct option is D.
Assume that the price of the sub sandwiches is $4 and the price of tacos is $2. When Harry's income is $14 he buys two Italian sub sandwiches and three tacos. The last column lists the values of the marginal utility per dollar for tacos when the price of tacos decreases to $1. Complete this statement: As a result of the change in price, the marginal utility of each taco Harry consumes increases and:__________
a. the substitution effect of the price change will cause Harry to buy more tacos if they are a normal good, and fewer tacos if they are an inferior good.
b. the substitution effect will cause Harry to buy another sub because his purchasing power has increased.
c. the substitution effect of the price change will cause Harry to buy more tacos and fewer subs.
d. the substitution effect will cause Harry to buy fewer tacos.
Answer:
c. the substitution effect of the price change will cause Harry to buy more tacos and fewer subs.
Explanation:
Since the price of tacos decreased, subs became relatively more expensive. The substitution effect occurs when a consumer (Harry in this case) changes his consumption habits because the price of the goods changes. In this case, tacos become cheaper, and therefore, Harry will obtain more utils per dollar.
Kevin's Company uses a normal costing system, applying overhead using a single plant-wide rate. At the beginning of the year, budgeted (estimated) manufacturing overhead costs totaled $400,000, budgeted direct labor hours totaled 80,000 hours and budgeted machine hours totaled 20,000 hours. At the end of the year, the actual overhead costs recorded totaled $450,000 and actual direct labor hours were 86,000. Kevin's Company's production process is very labor-intensive and therefore uses direct labor hours as the activity base. With this information, what is the assigned (applied) amount of MOH that Sherfield Company assign to production
Answer:
$430,000
Explanation:
MOH recovery rate = Estimated MOH / Estimated direct labor hours
MOH recovery rate = $400,000 / 80,000 hours
MOH recovery rate = $5 per direct labor hours
So, the applied amount of manufacturing overhead rate is $5
Assigned amount of MOH = MOH recovery rate * Actual direct labor hours
Assigned amount of MOH = $5 * 86,000 DLH
Assigned amount of MOH = $430,000
The following information applies to the questions displayed below] A local Chevrolet dealership carries the following types of vehicles
Inventory Items Quantity Cost per unit NRV per Unit
Vans 4 27000 25000
Trucks 7 18000 17000
2-door sedans 3 13000 15000
4-door sedans 5 17000 20000
Sports cars 1 37000 40000
SUVs 6 30000 28000
Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks
A) Compute the total cost of the entire inventory.
B) Determine whether each inventory item would be reported at cost or net realizable value (NRV).
C) Prepare necessary journal entry to write down inventory from from close to net realize value.
D) The write-down of inventory from cost to net realizable value reduces total assets and increases total expenses, leading to lower net income and lower retained earnings. True OR False
Answer:
Chevrolet Dealership
A) The total cost of the entire inventory is:
= $575,000
B) Each inventory would be reported at the LCNRV:
Inventory Items Quantity Reporting Cost/Value
Vans 4 NRV
Trucks 7 NRV
2-door sedans 3 Cost
4-door sedans 5 Cost
Sports cars 1 Cost
SUVs 6 NRV
C) Journal Entry:
Debit Cost of goods sold $27,000
Credit Inventory $27,000
To write-down costs to net realizable values.
D) TRUE.
Explanation:
a) Data and Calculations:
Inventory Items Quantity Cost per unit NRV per Unit LCNRV
Vans 4 27000 $108,000 25000 $100,000
Trucks 7 18000 126,000 17000 119,000
2-door sedans 3 13000 39,000 15000 39,000
4-door sedans 5 17000 85,000 20000 85,000
Sports cars 1 37000 37,000 40000 37,000
SUVs 6 30000 180,000 28000 168,000
Total Cost $575,000 $548,000
Martinez Company's ending inventory includes the following items. Product Units Cost per Unit Market per Unit Helmets 30 $ 58 $ 62 Bats 23 112 80 Shoes 44 103 99 Uniforms 48 44 44 Compute the lower of cost or market for ending inventory applied separately to each product.
Answer:
Inventory Units CPU MV per unit Total Cost Total MV LCM
Helmets 30 58 62 1740 1860 1740
Bats 23 112 80 2576 1840 1840
Shoes 44 103 99 4532 4356 4356
Uniforms 48 44 44 2112 2112 2112
Inventory Valuation 10048
Redbud Company uses a certain part in its manufacturing process that it buys from an outside supplier for $44 per part plus another $6 for shipping and other purchasing-related costs. The company will need 10,000 of these parts in the next year and is considering making the part internally. After performing a capacity analysis, Redbud determined that it has sufficient unused capacity to manufacture the 10,000 parts but would need to hire a manager at an annual salary of $40,000 to oversee this production activity. Estimated production costs are determined to be:
Direct material $ 28
Direct labor 12
Variable overhead 6
Fixed overhead (includes manager at $4 per unit) 10
Total unit cost $ 56
A) Identify the relevant costs to make this part internally. (Select all that apply)
A) Historical cost
B) Direct labor
C) Direct material
D) Variable overhead
E) Fixed overhead
F) New manager's salary
B) Should Redbud produce the part or continue to buy it from the outside supplier? (Select the right answer)
A) Redbud should produce the part.
B) Redbud is indifferent about the decision.
C) Redbud should continue to buy it from the outside supplier.
C.What are the other factors that Redbud Company should consider in deciding to make the part internally? (Select all that apply.)
A) Total sales quantity.
B) The potential for improved control over the availability of the parts by having it when needed and the potential for improved quality of the parts.
C) Since Redbud Company is considering the use of currently available capacity, it should evaluate any relevant opportunity costs of using this capacity for more profitable activities.
Answer:
Redbud Company
A) Relevant costs:
B) Direct labor
C) Direct material
D) Variable overhead
F) New manager's salary
B) B) Redbud is indifferent about the decision.
C. Other factors to consider:
B) The potential for improved control over the availability of the parts by having it when needed and the potential for improved quality of the parts.
C) Since Redbud Company is considering the use of currently available capacity, it should evaluate any relevant opportunity costs of using this capacity for more profitable activities.
Explanation:
a) Data and Calculations:
Cost of buying parts from outside supplier = $50 per part
Units required in the next year = 10,000
Costs required to produce internally:
Supervisor's salaries $40,000
Direct material $ 28
Direct labor 12
Variable overhead 6
Fixed overhead (includes
manager at $4 per unit) 10
Total unit cost $ 56
Relevant costs:
Direct material $ 28
Direct labor 12
Variable overhead 6
Fixed overhead (includes
manager at $4 per unit) 4
Total unit cost $50
Consider the market for purple potatoes below and assume that a price ceiling of $30 is imposed by the government. Calculate the deadweight loss:
Answer:
$5000
Explanation:
Management at Bank ABC is attempting to determine which types of instruments to use for risk management. When comparing exchange-traded instruments to over-the-counter (OTC) instruments, which characteristic should the bank associate with exchange-traded instruments
Answer:
Options and Swaps.
Explanation:
Hedging is the process of offsetting risk associated with an asset by taking an opposite position in an underlying asset. The hedging may be profitable or it may be in no loss situation. The most common method of hedging is use of derivatives. It is used to minimize foreign exchange and interest rate movement risks. The few common derivatives are futures, swaps and options.
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $ 523,000 $ 445,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,250 Long-term notes payable secured by mortgages on plant assets 98,500 101,500 83,500 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 131,100 104,750 79,250 Total liabilities and equity $ 523,000 $ 445,000 $ 377,500 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three year period?
Answer:
Simon Company
1-a) Current ratio = 1.88 2.52 2.87
= Current assets/Current liabilities
1-b. The current ratio worsened over the three-year period.
2-a) Acid-test ratio = 1.02 1.43 1.81
= (Current assets - Inventory)/Current liabilities
2-b) The acid-test ratio worsened over the three-year period.
Explanation:
a) Data and Calculations:
At December 31 Current Yr 1 Yr Ago 2 Yrs Ago
Assets
Cash $ 31,800 $ 35,625 $ 37,800
Accounts receivable, net 89,500 62,500 50,200
Merchandise inventory 112,500 82,500 54,000
Prepaid expenses 10,700 9,375 5,000
Total current assets $244,500 $190,000 $147,000
Plant assets, net 278,500 255,000 230,500
Total assets $ 523,000 $ 445,000 $ 377,500
Liabilities and Equity
Accounts payable $ 129,900 $ 75,250 $ 51,250
Long-term notes payable secured by
mortgages on plant assets 98,500 101,500 83,500
Common stock, $10 par value 163,500 163,500 163,500
Retained earnings 131,100 104,750 79,250
Total liabilities and equity $ 523,000 $ 445,000 $ 377,500
1-a) Current ratio = 1.88 2.52 2.87
= Current assets/Current liabilities
= Total current assets $244,500 $190,000 $147,000
Accounts payable $ 129,900 $ 75,250 $ 51,250
1-b. The current ratio worsened over the three-year period.
2-a) Acid-test ratio = 1.02 1.43 1.81
= (Current assets - Inventory)/Current liabilities
Current assets - Inventory $132,000 $107,500 $93,000
Accounts payable $ 129,900 $ 75,250 $ 51,250
2-b) The acid-test ratio worsened over the three-year period.
Three years ago, Kuley invested $32,200. In 2 years from today, he expects to have $50,300. If Kuley expects to earn the same annual return after 2 years from today as the annual rate implied from the past and expected values given in the problem, then in how many years from today does he expect to have exactly $87,200
Answer:
8.17 years(closest to 8 years )
Explanation:
The future value of $50,300, would be accumulated after 5 years of having made the investment(3 years+2 years=5 years)
As a result, we can determine the annual rate of return based on the future value in year 5 using the future value formula below:
FV=PV*(1+r)^n
FV=future value=$50,300
PV=amount invested initially=$32,200
r=unknown=annual rate of return
n=5 years
$50,300=$32,200*(1+r)^5
$50,300/$32,200=(1+r)^5
$50,300/$32,200 can be rewritten as ($50,300/$32,200)^1
($50,300/$32,200)^1=(1+r)^5
divide index on both sides by 5
($50,300/$32,200)^(1/5)=1+r
r=($50,300/$32,200)^(1/5)-1
r=9.33%
Our next task is to determine how long( in years) it takes to accumulate a future value of $87,200 from today's point, which means we need to determine the value of the investment today( 3 years after making the investment)
FV=$32,200*(1+9.33%)^3
FV=value of investment today=$42,079.82
Lastly, we can ascertain when $42,079.82 today would become $87,200
$87,200=$42,079.82*(1+9.33%)^n
n=number of years=unknown
$87,200/$42,079.82=(1+9.33%)^n
$87,200/$42,079.82=1.0933^n
take log of both sides
ln ($87,200/$42,079.82)=n ln(1.0933)
n=ln ($87,200/$42,079.82)/ln(1.0933)
n=0.72863604/0.08920065
n=8.17 years( from today, approx 8 years)
If a real estate license holder wants to assist a property owner by soliciting tenants, collecting rents, and being responsible for property maintenance, which specialization would the license holder likely choose?
Answer: Property management
Explanation:
Property management refers to the operation, oversight and the maintenance of real physical properties and real estate.
Since the real estate license holder wants to assist a property owner by soliciting tenants, collecting rents, and being responsible for property maintenance, the license holders should be specialized in property management.
The focus on establishing relationships with all customers has given way to a more targeted effort to seek higher-value customers.
A. True
B. False
brooks is babysitting this summer while she is home from college. she puts the money in the bank every week. this illustrates one of the advantages of money over bartering, which is
Answer:
it can be stored overtime
Explanation:
You are an executive with an internet merchandizing company. Azzamon Inc. You have been assigned the task of analyzing whether to add a new warehouse in Atlanta or in Boston. A consulting firm whom you paid $100 K to do a study has narrowed the choice down to these two cities. You currently have two other warehouses in other cities. You must decide whether the following is relevant or irrelevant to the decision of where to locate the warehouse? Consultant Fee: Relevant Irrelevant
Answer:
Azzamon Inc.
Consultant Fee:
Irrelevant.
Explanation:
The consultant fee is not relevant to the decision of where to locate the warehouse. It is like a sunk cost that has already been incurred. The two cities recommended by the consultant will be considered based on their relevant statistics and data and not based on the fee paid to the consultant. A relevant cost impacts the decision at hand. One relevant cost for making a decision of this nature is the cost of installing facilities at the locations.