Answer:
1.a Yes
1. b $3,000
2. Work-In-Process
Explanation:
1. a. Overhead rate in percentage = Total overhead ÷ Direct labor
= $6,000 ÷ $8,000
= 75%
Yes, Overhead cost will be applied on Job W at the year end
b. Overhead Cost = Direct Labor Cost × Overhead rate in percentage
= $4,000 × 75%
= $3,000
2. In the Financial statement cost included in Job W's will be recognized as Work-In-Process
Eagle Co. manufactures bentwood chairs and tables. Wood for both products is steam-bent in the same process, but different types of wood are used for each product. Thus, materials cost is identified separately to each product. One production cycle uses 20 board feet. Labor cost is identified to the process as a whole, as is overhead cost. Data for the month of July follow:
Chairs Tables
Direct material cost per board foot $3.60 $4.20
Number of parts formed per production cycle (20 board feet) 10 8
Actual operating hours in July 120 380
Parts produced during July 4,000 9,000
Budgeted annual conversion cost:
Labor $150,000
Utilities 125,000
Depreciation 65,000
Other overhead 50,000
Total $390,000
Budgeted annual operating hours for steam-bending 5,200
Required:
a. Compute July's predetermined rate for the steam-bending process.
b. Compute July's direct material costs for chairs and tables.
c. Compute conversion costs to be applied to chairs and tables in July. In your calculations, round the per unit amount to two decimal places and use in subsequent computations.
d. Journalize the following entries:
1. Assignment of direct materials to chairs and tables.
2. Application of conversion costs to chairs and tables.
3. The transfer of completed chairs and tables to the Finishing Department. All of July's production was completed in July
Answer:
A. $75
B. Direct material costs for Chairs = $28,800
Direct material costs for Tables= $94,500
C. Conversion costs for Chairs = $9,000
Conversion costs for Tables = $28,530
D1. Dr Work in process-chairs 28,800
Dr Work in process-tables 94,500
Cr Materials 123,300
D2. Dr Work in process-chairs 9,000
Dr Work in process-tables 28,530
Cr Conversion costs applied 37,530
D3. Dr Finished Goods-Chairs 37,800
Cr Finished Goods- Tables 123,030
Dr Work in process 37,800
Cr Work in process 123,030
Explanation:
a. Computation of July's predetermined rate
Steam-bending process predetermined rate=
390,000 / 5,200
Steam-bending process predetermined rate= $75
b. Computation for July's direct material costs for both chairs and tables.
Direct material costs for Chairs= 3.60 x 20 / 10 Direct material costs for Chairs= 7.20
Direct material costs for Chairs=7.20x 4,000
Direct material costs for Chairs = $28,800
Direct material costs for Tables=4.20 x 20 / 8
Direct material costs for Tables= 10.50
Direct material costs for Tables=10.50 x 9,000 Direct material costs for Tables= $94,500
c. Computation for conversion costs to be applied to chairs and tables in July
Conversion costs for Chairs: 75 x 120 / 4,000
Conversion costs for Chairs = 2.25
Conversion costs for Chairs=2.25 x 4,000
Conversion costs for Chairs = $9,000
Conversion costs for Tables= 75 x 380/9,000
Conversion costs for Tables =3.17
Conversion costs for Tables=3.17x 9,000
Conversion costs for Tables = $28,530
D1. Preparation of Journal entry for the Assignment of direct materials to chairs and tables.
Dr Work in process-chairs 28,800
Dr Work in process-tables 94,500
Cr Materials 123,300
(94,500+28,800)
D2. Preparation of Journal entry for the Application of conversion costs to chairs and tables.
Dr Work in process-chairs 9,000
Dr Work in process-tables 28,530
Cr Conversion costs applied 37,530
(28,530+9,000)
D3. Preparation of the Journal entry for the Th transfer of completed chairs and tables to the Finishing Department
Dr Finished Goods-Chairs 37,800
(28,800+9,000)
Cr Finished Goods- Tables 123,030
(94,500+28,530=123,030)
Dr Work in process 37,800
(28,800+9,000)
Cr Work in process 123,030
(94,500+28,530=123,030)
Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2,350, current assets of $690, current liabilities of $380, net fixed assets of $1,540, and a 5 percent profit margin. The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 10 percent next year. If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year? Compute current total equity, projected assets, liabilities, change in equity, additional equity funding, and answer the following two questions:
Answer:
The required financial needed would be "$55.75". The further explanation is given below.
Explanation:
The given values are:
Current assets
= $690
Fixed assets
= $1540
Project assets = (Current assets + Fixed assets) × 1.10
= [tex](690+1540)\times 1.10[/tex]
= [tex]2453[/tex] ($)
Projected liabilities = [tex]380\times 1.10[/tex]
= [tex]418[/tex] ($)
Current equity = Current assets + Fixed assets + Current liabilities
= [tex]690+1540-380[/tex]
= [tex]1850[/tex] ($)
Increased project in retaired earnings will be:
= [tex]2350\times 5 \ percent\times 1.10[/tex]
= [tex]129.25[/tex] ($)
Now,
Equity financial needed = Projected assets - Project liabilities - current equity - Projected increase
= [tex]2453-481-1850-129.25[/tex]
= [tex]55.75[/tex] ($)
Trident Manufacturing Company's treasurer identified the following cash flows during this year as significant. The company repaid existing debt of $25 million, while raising additional debt capital of $75 million. It also repurchased stock in the open markets for a total of $20 million and paid $25 million dividends to its shareholders. What is the net cash provided by (used in) financing activities? (net cash provided by financing are positive cash flows, and net cash used in financing are negative cash flows). Group of answer choices -$5 million -$30 million $5 million $30 million
Answer:
Net cash flows from financing activities = $5 million
Explanation:
Net cash flows from finance = Raising additional debt capital - Repaid debt - Repurchased - Dividends
Net cash flows from finance = $75 million - $25 million - $20 million - $25 million
Net cash flows from finance = $75 million - 70 million
Net cash flows from financing activities = $5 million
Precision Camera Services started the year with total assets of $80,000 and total liabilities of $40,000. The revenues and the expenses for the year amounted to $140,000 and $60,000, respectively. During the year, the company did not issue any common stock, but it distributed dividends of $55,000. What is the amount of stockholders' equity at the end of the year?
Answer:
$65,000
Explanation:
Stockholder's equity is the net value of a company's asset. It is the remaining value of a company asset after adjusting for retained earnings and liabilities.
For Precision Camera Services.
Current year additions to stakeholder equity will be the retained earnings.
Retained earning is revenues- expenses - dividends paid out
=$140,000 - $60,000 - $55,000
=$25,000
Stockholders equity : Assets + retained earning - liabilities
=$80,000 + $25,000 - $40,000
=$105,000- $40,000
=$65,000
Big Red Machines, a startup, has come up with a new product and has seen significant customer demand. Due to reinvestment in the firm (100% plowback ratio) Big Red Machines will pay no dividends in the first 2 years. Beginning in the 3rd through 6th years, the firm expects to pay $1.50, $1.60, and $1.75 In the 6th year, the firm should see stable growth rates and thus begin a divided which grows at 3% per year. You plan to graduate 1 year from now, and hope to invest in Big Red Machines at that time. The expected rate of return is 8% What is the value of Big Red Machine's stock one year from today
Answer:
The correct answer is "$ 30.34".
Explanation:
The value of the stock can be computed by the following formula:
⇒ [tex]\frac{Dividend \ in \ year \ 3}{(1 + Required \ return \ rate)2} + \frac{Dividend \ in \ year \ 4}{(1 + Required \ return \ rate)3} + \frac{Dividend \ in \ year \ 5}{(1 + Required \ return \ rate) 4 } + \frac{1}{(1 + Required \ return \ rate)4 }\times [\frac{( Dividend \ in \ year \ 5 (1 + Growth \ rate)} {( Required \ return \ rate - Growth \ rate)}][/tex]
On putting the values, we get
⇒ [tex]\frac{1.50}{1.08^2} + \frac{1.60}{1.08^3} + \frac{1.75}{1.08^4 } + \frac{1}{1.08^4} \times [ \frac{( 1.75\times 1.03)}{(0.08 - 0.03)}][/tex]
⇒ [tex]\frac{1.50}{1.08^2 } + \frac{1.60}{ 1.08^3 } + \frac{37.80}{ 1.08^4 }[/tex]
⇒ [tex]30.34[/tex] ($)
n outside supplier has offered to produce this Item and sell it to the company for $15.80 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the Item was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $26,000 of these allocated general overhead costs would be avoided. If management decides to buy Item I51 from the outside supplier rather than to continue making the Item, what would be the annual impact on the company's overall net operating income
Answer:
- $119,800(declines).
(Kindly note the negative sign).
Explanation:
So, we have the following parameters or data ir information that is going to help us in solving this particular Question or problem;
(1). ..."produce this Item and sell it to the company for $15.80 each."
(2). "The special equipment used to make the Item was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company."
(3). "If the outside supplier's offer were accepted, only $26,000 of these allocated general overhead costs would be avoided".
The relevant cost for Direct Material = 21,600.
The relevant cost for direct labour = 39,600.
The relevant cost for Variable manufacturing overhead = 59,400.
The relevant cost for Supervisor’s salary = 18,000.
Therefore, the total for ''Buy'' = $284,400.
Also, the total for net changes in operating income= - $284,400.
This give us the net changes in operating income to decline $199,800(that is - $119,800).
CALCULATION THAT GIVES THE VALUE FOR THE NET CHANGES IN OPERATING INCOME =
(-) [ {18,000 × 15.80 } - { (1.2 + 2.2 + 3.3 + 1) × 18,000 units} - 26,000 ]
Why do different customers and service staff respond very differently to the same service environment?
Answer:
Most of them usually get paid for fake products which the consumer might not know is fake
When setting prices of products, businesses want to make sure they can
cover their costs and make
Answer:
profit
Explanation:
their costs and make some profit
You have an idea for a company that sources fruits from local farms and makes fresh juices on a daily basis. You want to start a subscription-based service in which households within a 100-mile radius subscribe to your plan and receive two gallons of freshly squeezed juice (for example, cherry juice, apple juice, lemonade) twice a week. As you think about starting your business, you ask yourself: Am I being responsive to the customer? Is it innovative? Can I offer a quality product? After asking these questions, review and identify which question you forgot to ask that would give you a sustainable advantage.
Explanation:
This issue is related to the VRIO model, which is an analytical technique to help a company evaluate its organizational resources and make them effective and competitive in the market. The acronym VRIO stands for Value, Rarity, Imitability and Organization, which together form the necessary points for business improvement.
Analyzing the question, it is possible to see that the company focused on issues related to value, rarity and organization, so the question that should be asked to achieve a sustainable advantage is the question related to imitability, which could be: It is difficult to imitate the product at the cost of the resource or capacity?
Answer please
What is the name for an assessment of what you own and what you owe?
A.a personal balance sheet
B.a cash flow statement
C.a personal budget
D.a budget variance
Answer:
A. Personal Balance Sheet/Statement
Forget this question exists
Answer: yay
Explanation:
Culver Architects incorporated as licensed architects on April 1, 2022. During the first month of the operation of the business, these events and transactions occurred:
Apr. 1 Stockholders invested $26,910 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $561 per week, payable monthly.
2 Paid office rent for the month $1,345.
3 Purchased architectural supplies on account from Burmingham Company $1,943.
10 Completed blueprints on a carport and billed client $2,840 for services.
11 Received $1,046 cash advance from M. Jason to design a new home.
20 Received $4,186 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $2,244.
30 Paid $448 to Burmingham Company for accounts payable due.
Requied:
Journalize the transactions
Answer:
April 1 Stockholders invested $26,910 cash in exchange for common stock of the corporation.
Dr Cash 26,910
Cr Common stock 26,910
April 1 Hired a secretary-receptionist at a salary of $561 per week, payable monthly.
no journal entry required
April 2 Paid office rent for the month $1,345.
Dr Rent expense 1,345
Cr Cash 1,345
April 3 Purchased architectural supplies on account from Burmingham Company $1,943.
Dr Supplies 1,943
Cr Accounts payable 1,943
April 10 Completed blueprints on a carport and billed client $2,840 for services.
Dr Accounts receivable 2,840
Cr Service revenue 2,840
April 11 Received $1,046 cash advance from M. Jason to design a new home.
Dr Cash 1,046
Cr Unearned revenues 1,046
April 20 Received $4,186 cash for services completed and delivered to S. Melvin.
Dr Cash 4,186
Cr Service revenue 4,186
April 30 Paid secretary-receptionist for the month $2,244.
Dr Wages expense 2,244
Cr Cash 2,244
April 30 Paid $448 to Burmingham Company for accounts payable due.
Dr Accounts payable 448
Cr Cash 448
On August 1, 20Y5, Rafael Masey established Planet Realty, which completed the following transactions during the month:
a. Rafael Masey transferred cash from a personal bank account to an account to be used for the business, $17,500.
b. Purchased supplies on account, $2,300.
c. Earned fees, receiving cash, $13,300.
d. Paid rent on office and equipment for the month, $3,000.
e. Paid creditor on account, $1,150.
f. Withdrew cash for personal use, $1,800.
g. Paid automobile expenses (including rental charge) for month, $1,500, and miscellaneous expenses, $400.
h. Paid office salaries, $2,800.
i. Determined that the cost of supplies used was $1,050.
Required:
Journal Entries and Trial Balance
Answer:
a. Dr Cash 17,500
Cr Common Stock 17,500
b. Dr Supplies 2,300
Cr Account payable 2,300
c. Dr Cash 13,300
Cr Sales commission 13,300
d. Dr Rent expense 3,000
Cr Cash 3,000
e. Dr Account payable 1,150
Cr Cash 1,150
f. Dr Dividend 1,800
Cr Cash 1,800
g. Dr Automobile expense 1,500
Dr Miscellaneous expense 400
Cr Cash 1,900
h. Dr Salaries expense 2,800
Cr Cash 2,800
I. Dr Supplies expense 1,050
Cr Supplies 1,050
Explanation:
Preparation of Journal entries
a. Based on the information given we were told that the amount of $17,500 was transferred from a personal bank account to an account that is to be used for business which means that the Journal entry will be:
Dr Cash 17,500
Cr Common Stock 17,500
b. Based on the information given we were told that Purchased supplies on account was the amount of $2,300 which means that the Journal entry will be:
Dr Supplies 2,300
Cr Account payable 2,300
c. Based on the information given we were told that they Earned fees receiving cash of $13,300 which means that the Journal entry will be:
Dr Cash 13,300
Cr Sales commission 13,300
d. Based on the information given we were told they Paid rent on office and equipment of the amount of $3,000 which means that the Journal entry will be:
Dr Rent expense 3,000
Cr Cash 3,000
e. Based on the information given we were told that they Paid creditor on account for the amount $1,150 which means that the Journal entry will be:
Dr Account payable 1,150
Cr Cash 1,150
f. Based on the information given we were told that they Withdrew cash for personal use of the amount of $1,800 which means that the Journal entry will be:
Dr Dividend 1,800
Cr Cash 1,800
g. Based on the information given we were told that they paid automobile expenses which include rental charge for month, costing $1,500, and miscellaneous expenses costing $400 which means that the Journal entry will be:
Dr Automobile expense 1,500
Dr Miscellaneous expense 400
Cr Cash 1,900
h. Based on the information given we were told that they Paid office salaries of the amount of $2,800 which means that the Journal entry will be:
Dr Salaries expense 2,800
Cr Cash 2,800
i. Based on the information given we were told that the cost of supplies used was the amount of $1,050 which means that the Journal entry will be:
Dr Supplies expense 1,050
Cr Supplies 1,050
g Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations: Provided $91,000 of services on account. Collected $72,000 cash from accounts receivable. Paid $36,000 of salaries expense for the year. Adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance Current $ 7,800 0.01 0-30 4,500 0.05 31-60 2,000 0.10 61-90 2,200 0.20 Over 90 days 2,500 0.50 Required a. Record the above transactions in general journal form and post to T-accounts. b. Prepare the income statement for Vulcan Service Co. for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1
Answer:
Provided $91,000 of services on account.
Collected $72,000 cash from accounts receivable.
Paid $36,000 of salaries expense for the year.
Adjusted the accounts using the following information from an accounts receivable aging schedule:
Number of days Amount % Likely to be uncollectible $
Current $7,800 0.01 $78
0-30 $4,500 0.05 $225
31-60 $2,000 0.10 $200
61-90 $2,200 0.20 $440
Over 90 $2,500 0.50 $1,250
totals $19,000 $2,193
a) Provided $91,000 of services on account.
Dr Accounts receivable 91,000
Cr Service revenue 91,000
Collected $72,000 cash from accounts receivable.
Dr Cash 72,000
Cr Accounts receivable 72,000
Paid $36,000 of salaries expense for the year.
Dr Wages expense 36,000
Cr Cash 36,000
Allowance for doubtful accounts
Dr Bad debt expense 2,193
Cr Allowance for doubtful accounts 2,193
Cash
debit credit
72,000
36,000
36,000
Accounts receivable
debit credit
91,000
72,000
19,000
Allowance for doubtful accounts
debit credit
2,193
Service revenue
debit credit
91,000
Wages expense
debit credit
36,000
Bad debt expense
debit credit
2,193
b) Vulcan Service Co.
Income Statement
For the year ended December 31, year 1
Revenue $91,000
Expenses:
Wages expense $36,000
Bad debt expense $2,193 ($38,193)
Net income $52,807
c) net realizable value of accounts receivable = $19,000 - $2,193 = $16,807
name five specific actions or behaviors that you believe would show what a person's most important value are?
The most vital traits for a person to possess are intelligence, kindness, hard work, and respect for others.
Explain about the hard work?A hardworking young lady who is consistently, frequently, or habitually engaged in intense and arduous work. Our pupils must be very dedicated and hardworking. They work a lot of hours.
A person is said to be hardworking if they take their task very seriously and complete it quickly and effectively. Example 1: A hardworking individual is someone who works two jobs to support his family and himself.
We learn discipline, commitment, and determination via hard effort. It is unquestionably significant because we can only accomplish our life's objectives via perseverance. We must all work hard as a result.
To learn more about hard work refer to:
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The ledger of Pina Colada Corp. on July 31, 2022, includes the selected accounts below before adjusting entries have been prepared.
Debit Credit
Investment in Note Receivable $18,000
Supplies 22,500 Prepaid Rent 5,400
Buildings 210,000
Accumulated DepreciationâBuildings $135,000
Unearned Service Revenue 11,100
An analysis of the companyâs accounts shows the following.
1. The investment in the notes receivable earns interest at a rate of 12% per year.
2. Supplies on hand at the end of the month totaled $17,600.
3. The balance in Prepaid Rent represents 4 months of rent costs.
4. Employees were owed $2,800 related to unpaid salaries and wages.
5. Depreciation on buildings is $6,360 per year.
6. During the month, the company satisfied obligations worth $4,500 related to the Unearned Services Revenue.
7. Unpaid maintenance and repairs costs were $2,100.
Required:
Prepare the adjusting entries at July 31 assuming that adjusting entries are made monthly.
Answer: See attachment
Explanation:
The adjusting entries at July 31 assuming that adjusting entries are made monthly has been attached.
N.B:
Interest receivable:
= 18000 × 12% × 1/12
= 18000 × 0.12 × 1/12
= 180
Supplies expenses:
= 22500 - 17600
= 4900
Rent expense:
= 5400/4
= 1350
Depreciation expense:
= 6360/12
= 530
For each of the following separate situations, prepare he necessary accounting adjustments using the financial statement effects template.
a. Unrecorded depreciation on equipment is $610.
b. On the date for preparing financial statements, an estimated utilities expense of $390 has been incurred, but no utility bill has yet been received or paid.
c. On the first day of the current period, rent for four periods was paid and recorded as a $2,800 debit to Prepaid Rent and a $2,800 credit to Cash.
d. Nine months ago, The Hartford Financial Services Group sold a one-year policy to a customer and recorded the receipt of the premium by debiting Cash for $624 and crediting Contract Liabilities for $624.
e. At the end of the period, employee wages of $965 have been incurred but not yet paid or recorded.6. At the end of the period, $300 of interest income has been earned but not yet received or recorded.
Answer:
depreciation expense equipment 610 debit
accumulated depreciation equipment 610 credit
utilities expense 390 debit
utilities payable 390 credit
rent expense 700 debit
prepaid rent 700 credit
insurance expense 468 debit
prepaid insurance 468 credit
wages expense 965 debit
wages payables 965 credit
interest receivables 300 debit
interest revenue 300 credit
Explanation:
(C) rent calculations
2,800 --> four period of rent
2,800 / 4 = 700 per period
(D) insurance calculations
624 for the entire years
expired 9 months in this period
$624 x 9/12 = 468
a. What two elements must exist before a person can be held liable for a crime?
b. What defenses might be raised by criminal defendants to avoid liability for criminal acts?
c. John Law, a local police officer, is sitting outside an AM/PM around Midnight. He is eating a protein bar and drinking an energy drink when he observed a man walking up to the entrance of the AM/PM. The man then walked away from the entrance and met up with another individual on a street corner while repeatedly walking up and down the same street. The men would periodically peer into the AM/PM window and then talk some more. The men also spoke to a third man whom they eventually followed up the street. The officer believed that the men were "casing" the store for a potential robbery. The officer decided to approach the men for questioning, and given the nature of the behavior the officer decided to perform a quick search of the men before questioning. A quick frisking of one of the men, Jake, produced a concealed weapon and Jake was charged with carrying a concealed weapon, a felony.
Jake, hires a lawyer and fights the charges against him. He believes that his greatest argument is that the officer did not have probably cause to search and seize the firearm. Do you agree or disagree? Within your answer, please discuss whether the search was lawful or unlawful. In other words, did the search violate Jake’s 4th Amendment rights?
Explanation:
A. The elements are:
-The person must have committed an act that is prohibited
-The act must have been committed with intent
B
The defenses include
-Self defense
- under duress
- insanity
- necessity
C officer john law had a good and enough cause to search Jake and seize his firearm since his movement was suspicious. It was midnight and he was about a shop in a strange manner and he was even talking to someone else. Such actions is enough to get an officer at alert. It seemed like jake and the man were planning on how to commit a crime. A search on the man even revealed a weapon. 4th amendment gives a protection to peoples privacy and immunity from unnecessary search and seizures. But the amendment does not say a probable cause like the officer had done was illegal. This search was reasonable and very legal. Jakes rights were not violated.
During the staff meeting, the performance of BJ is discussed. BJ works hard but received a poor customer rating, and the manager is told to “figure it out” or fire BJ. Which of the following would be the best approach to try to improve BJ’s performance?
Answer:
BJ
Explanation:
Hi is the hard worker
so, he is the best
Providing him with 360-degree feedback from customers, co-workers and managers to give him insight into how his behavior is perceived will help improve his performance.
What is a 360-degree feedback?A 360-degree feedback refers to a process that allows employees to receive feedback from the people who work around them.
In conclusion, the feedback will let him know how to improve on his work performance.
Read more about 360-degree feedback
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Kitchen Supply Corporation obtained land, a factory, and manufacturing equipment in a lump-sum purchase for $990,000. An appraisal set the value of the land at $592,800, the factory at $421,800, and the equipment at $125,400. Immediately after the purchase, the factory was renovated at a cost of $50,000. At what amount should Kitchen Supply record the factory?
The amount at which Kitchen Supply Corporation should initially record the Factory immediately after the purchase is $421,800.
However, the Renovation Cost of $50,000 should increase the amount of the Factory to $471,800 ($421,800 + $50,000) immediately after the renovation.
Why is renovation cost capitalized?The cost of renovation is usually capitalized because the cost needs to be recorded as an asset on the balance sheet, instead of an expense in the income statement.
Thus, the final amount the Factory should be recorded after the renovation is $471,800.
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The Simkins Corporation uses a job-order costing system. The following activities took place during the month of May: a. Raw materials purchased $40,000 b. Raw materials (all direct) used in production $35,000 c. Salaries and wages costs: Direct labor cost $60,000 Indirect labor cost $30,000 Sales salaries $25,000 d. Factory utility costs $15,000 e. Depreciation on factory equipment $50,000 f. Advertising expense $80,000 g. Manufacturing overhead is applied at the predetermined rate of 150% of direct labor cost. h. Cost of Goods Manufactured for the month $180,000 i. Cost of Goods Sold for the month $150,000 Required: Prepare journal entries to record the information given above. Key your entries by the letters a through i.
Answer:
A. Dr Raw Material Inventory $40,000
Cr Accounts Payable $40,000
B. Dr Work in process Inventory $35,000
Cr Raw Material Inventory $35,000
C. Dr Work in process Inventory $60,000
Dr Factory Overheads $30,000
Dr Selling and administrative expenses $25,000
Cr Wages Payable $90,000
Cr Salaries Payable $25,000
D. Dr Factory Overheads $15,000
Cr Expense Payable $15,000
E. Dr Factory Overheads $50,000
Cr Accumulated Depreciation- Factory Equipment $50,000
F. Dr Selling and administrative expenses $80,000
Cr Expense Payable $80,000
G. Dr Work in process Inventory $90,000
Cr Factory Overheads $90,000
H. Dr Finished Goods Inventory $180,000
Cr Work in process Inventory $180,000
I. Dr Cost of goods sold $150,000
Cr Finished Goods Inventory $150,000
Explanation:
Preparation of Journal entries for Simkins Corporation
a. Based on the information given we were told that Raw materials purchased was the amount of $40,000 which means that the Journal entry will be "
Dr Raw Material Inventory $40,000
Cr Accounts Payable $40,000
b. Based on the information given we were told that Raw materials that was used in production was the amount of $35,000 which means that the Journal entry will be:
Dr Work in process Inventory $35,000
Cr Raw Material Inventory $35,000
c. Based on the information given we were told that Salaries and wages costs include Direct labor cost of the amount of $60,000 Indirect labor cost of the amount of $30,000 and Sales salaries if the amount of $25,000 which means that the Journal entry will be:
Dr Work in process Inventory $60,000
Dr Factory Overheads $30,000
Dr Selling and administrative expenses $25,000
Cr Wages Payable $90,000
Cr Salaries Payable $25,000
d. Based on the information given we were told that Factory utility costs the amount of $15,000 which means that the Journal entry will be:
Dr Factory Overheads $15,000
Cr Expense Payable $15,000
e. Based on the information given we were told that Depreciation on factory equipment cost the amount of $50,000 which means that the Journal entry will be:
Dr Factory Overheads $50,000
Cr Accumulated Depreciation- Factory Equipment $50,000
f. Based on the information given we were told that Advertising expense cost the amount of $80,000 which means that the Journal entry will be:
Dr Selling and administrative expenses $80,000
Cr Expense Payable $80,000
g. Based on the information given we were told that the company has predetermined rate of 150% of direct labor cost which means that the Journal entry will be:
Dr Work in process Inventory $90,000
Cr Factory Overheads $90,000
h. Based on the information given we were told that the Cost of Goods Manufactured for the month was $180,000 which means that the Journal entry will be:
Dr Finished Goods Inventory $180,000
Cr Work in process Inventory $180,000
i. Based on the information given we were told that Cost of Goods Sold for the month was $150,000 which means that the Journal entry will be:
Dr Cost of goods sold $150,000
Cr Finished Goods Inventory $150,000
Short-term investments include: Multiple Choice Investments in land or other assets not used in operations. Noncurrent assets. Securities that management intends to convert to cash within one year or the operating cycle, whichever is longer, and are readily convertible to cash. Stocks not intended to be converted into cash. Bonds not intended to be converted into cash.
Short term investment refer to Securities that management intends to convert to cash within one year or the operating cycle, whichever is longer, and are readily convertible to cash.
What is Short-term investment?Short term investment are temporary financial investments that can be converted to cash within a short period of time which can be within 5 years. Some short-term investments are converted to cash after a period of only 3-12 months. Some examples of short-term investments include, money market accounts, high-yield savings accounts, government bonds, and Treasury bills.
Therefore, Short term investment refer to Securities that management intends to convert to cash within one year or the operating cycle, whichever is longer, and are readily convertible to cash.
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According to Percy Barnevik, how should a global manager respond when told "You canât do that in Brazil because of current government regulations."?
According to Percy Barnevik, CEO of ABB Asea Brown Boveri, as a global manager, you must think globally and act locally. For him, an organization must combine global scale and global technology while adapting to a local market.
What is an internationalization strategy?It is a process by which companies implement their business in another country, through various ways, such as exporting a product and setting up factories in a foreign country.
The objective of internationalization is to achieve competitive and profitable advantages in a new market.
Therefore, despite the risks of internationalization, according to Percy Barnevik, an organization must adapt to the market, legislation and preferences of local consumers, using its best resources to be well positioned globally.
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List A List B 1. Interest a. First cash flow occurs one period after agreement begins 2. Monetary asset b. The rate at which money will actually grow during a year 3. Compound interest c. First cash flow occurs on the first day of the agreement 4. Simple interest d. The amount of money that a dollar will grow to 5. Annuity e. Amount of money paid/received in excess of amount borrowed/lent 6. Present value of a single amount f. Obligation to pay a sum of cash, the amount of which is fixed 7. Annuity due g. Money can be invested today and grow to a larger amount 8. Future value of a single amount h. No fixed dollar amount attached 9. Ordinary annuity i. Computed by multiplying an invested amount by the interest rate 10. Effective rate or yield j. Interest calculated on invested amount plus accumulated interest 11. Nonmonetary asset k. A series of equal-sized cash flows 12. Time value of money l. Amount of money required today that is equivalent to a given future amount 13. Monetary liability m. Claim to receive a fixed amount of money
Answer:
1. List A: Interest
List B: e. Amount of money paid/received in excess of amount borrowed/lent
2. List A: Monetary asset
List B: m. Claim to receive a fixed amount of money
3. List A: Compound interest
List B: j. Interest calculated on invested amount plus accumulated interest
4. List A: Simple interest
List B: i. Computed by multiplying an invested amount by the interest rate
5. List A: Annuity
List B: k. A series of equal-sized cash flows
6. List A: Present value of a single amount
List B: l. Amount of money required today that is equivalent to a given future amount
7. List A: Annuity due
List B: c. First cash flow occurs on the first day of the agreement
8. List A: Future value of a single amount
List B: d. The amount of money that a dollar will grow to
9. List A: Ordinary annuity
List B: a. First cash flow occurs one period after agreement begins
10. List A: Effective rate or yield
List B: b. The rate at which money will actually grow during a year
11. List A: Nonmonetary asset
List B: h. No fixed dollar amount attached
12. List A: Time value of money
List B: g. Money can be invested today and grow to a larger amount
13. List A: Monetary liability
f. Obligation to pay a sum of cash, the amount of which is fixed
.......is the body of elected official whose duty is to make the laws of the country
Answer:
The lagislative body gives out laws for the country
Mertens Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry hours $200,000 10,000 hours Account billing lines $140,000 4,000,000 lines Account verification accounts $75,000 40,000 accounts Correspondence letters $ 25,000 4,000 letters Total costs $440,000 The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2,000 hours 4,000 hours Account billing lines 400,000 lines 200,000 lines Account verification accounts 10,000 accounts 8,000 accounts Correspondence letters 1,000 letters 1,600 letters How much of the account billing cost will be assigned to Department B
Answer:
Cost assigned to Deparment B is $112,000
Explanation:
In order to calculate the cost assigned to Department B, we will take each amount divide it by their respective drivers and multiply by the driver assigned to Department B. Then we will add up all the relevant cost to determine the total cost assigned to Department B. As shown below:
Account Inquiry Hours = $200,000 / 10,000 hours x 4,000 hours
= $80,000
Account Billing Lines = $140,000 / 4,000,000 lines x 200,000 lines
= $7,000
Account Verification = $75,000 / 40,000 accounts x 8,000 accounts
= $15,000
Correspondence Letter = $25,000 / 4,000 letters x 1,600 letters
= $10,000
Total Cost = 80,000 + 7,000 + 15,000 + 10,000
= $112,000
The Acmeville Metropolitan Bus Service currently charges $0.99$0.99 for an all-day ticket, and has an average of 433433 riders a day. The bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. They must therefore find a way to increase revenues. The bus company is considering increasing the ticket price to $ 1.11.1 . The marketing department's studies indicate this price increase would reduce usage to 169169 riders per day. Calculate the absolute value of the price elasticity of demand for bus tickets using the simple percentage change method. Round your answer to one decimal place.
Answer:
PED = 5.49
Explanation:
current price = $0.99 per ticket
average daily tickets sold = 433
average daily revenue = $428.67
if the company increases the price to $1.10, then average daily tickets will be only 169. Average daily revenue will drop to $185.90
price elasticity of demand (PED) = % change in quantity demanded / % change in price
PED = [(169 - 433)/433] / [(1.1 - 0.99)/0.99] = -0.6097 / 0.1111 = -5.49 or |5.49| in absolute terms
the price of tickets is very elastic, meaning that a 1% change in price will result in a much higher proportional change in quantity demanded
Outsourced industrial production in less-developed countries often relies on female labor because:.
The reason why female labor is relied on in less-developed countries is that females are paid less than males.
Why is female labor more sought after?Countries that outsource production to less developed countries, do so to increase their profit margins by reducing labor cost.
One way to further reduce this labor cost is to hire women because the inequality in developing countries has led to a situation where women are paid less than men.
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The managers of Loyola Corp. recently had a meeting to discuss new opportunities in Europe as a result of the recent integration among Eastern European countries. They decided not to penetrate new markets because of their present focus on expanding market share in the United States. Loyola's financial managers have developed forecasts for earnings based on the 12 percent market share (defined here as its percentage of total European sales) that Loyola currently has in Eastern Europe.
Required:
a. Is 12 percent an appropriate estimate for next year's Eastern European market share?
b. If not, does it likely overestimate or underestimate the actual Eastern European market share next year?
Answer:
a. Is 12 percent an appropriate estimate for next year's Eastern European market share?
No its not, because Loyola is probably not the only company considering expanding its operations over eastern Europe. As more companies start operating there, Loyola's market share will decrease due to increased competition.
b. If not, does it likely overestimate or underestimate the actual Eastern European market share next year?
Loyola's future market share is overestimated because:
Loyola is not willing to expand their operations and it is basically focusing on their domestic operations (in the US)other companies expand their operations and an aggressive market strategy will make them gain market share, which means that Loyola's market share will start to shrink
The table below lists the CPI and wage values for the United States from different decades.
a. Complete the table by computing the real income for each year shown in the table
Instructions: Round your answers to two decimal places.
(Table in the picture. If you could provide me with a formula and an example I can do it on my own after that. Thanks :) )
Instructions: Enter the year using all four numbers (yyyy).
b. Of the years listed above, the paycheck of the average worker was highest in
c. Of the years listed above, the purchasing power of the average worker was highest in
The average real wage given the CPI and Nominal wages in:
1967 is $21,188.62
1977 is $22,407.58
1987 is $22,935.74
1997 is $23,163.24
2007 is $23,973.95
2013 is $22,455.79
The paycheck of the average worker was highest in 2013.
The purchasing power of the average worker was highest in 2007.
What is the consumer price index?
The consumer price index measures the changes in price of a basket of good. It is used to measure inflation.
Real wages = nominal wages / cpi
Real wage in 2013 = 52,322 / 2.33 = $22,455.79
Purchasing power is the highest when the real wage is the highest.
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