Question Completion:
a) raw materials
b) work in process
c) finished goods
d) cost of goods sold
e) selling expense
Answer:
The Devon Motor Company
The cost of batteries that would appear in each of the following accounts on April 30th:
a) raw materials = $32,000
b) work in process = $60,000
c) finished goods = $162,000
d) cost of goods sold = $378,000
e) selling expense = $8,000
Total cost of batteries purchased = $640,000
Explanation:
a) Data and Calculations:
Beginning inventory = 0
Purchase of batteries = 8,000 at $80 = $640,000
Used batteries = 7,600
Ending inventory = 400 at $80 = $32,000 raw materials
Used batteries = 7,600:
Selling expenses = 100 * $80 = $8,000
Work in process = 7,500
Ending WIP = (7,500 - 6,750) * $80 = $60,000
Finished goods = 90% 6,750 * $80 = $540,000
Ending inventory 30% 2,025 * $80 = $162,000
Cost of goods sold 70% 4,725 * $80 = $378,000
By the 1990s, A. Tourism was possibly the largest single global industry. B. The manufacture of computers and microchips had moved from California to China. C. Cellular telephones outnumbered landline telephones. D. Food continued to be the most important production item.
Answer:
C. Cellular telephones outnumbered landline telephones
Explanation:
The cordless or portable phones as a handset that could be used as a landline were made popular. The cellular industry was one of the fastest growing industry in the market and still maintains a strong global position.A rock group assigns its payment under a performance contract to the Costume Shop, a business that has supplied the group with outrageous stage outfits, and to which the group owes a great sum of money. Under this arrangement the rock group is the a. delegator. b. delegatee. c. assignee. d. assignor.
Answer:
Rock Group and Costume Shop
Under this arrangement the rock group is the
d. assignor.
Explanation:
The rock group, as the assignor, is the entity that transfers its property rights or its powers to payment to Costume Shop. The Costume Shop is the assignee because it is the entity to which property rights or powers to payment of the rock group are transferred. Under the performance contract, the rock group can also be described as the delegator while the Costume Shop is the delegatee. However, under payment terms, the rock is the assignor while the Costume Shop is the assignee.
Explain the nature of the exchange-rate risk for each of the following, from the perspective of the U.S. firm or person. In your answer, include whether each is a long or short position in foreign currency.
a. A small U.S. firm sold experimental computer components to a Japanese firm, and it will receive payment of 1 million yen in 60 days.
b. An American college student receives a birthday gift of Japanese government bonds worth 10 million yen, and the bonds mature in 60 days.
c. A U.S. firm must repay a yen loan, principal plus interest totaling 100 million yen, coming due in 60 days.
Answer:
a. U.S. firm has long position in yen since it has asset in yen.
b. An American student has long position in yen since it has asset of bonds in yen.
c. U.S. firm has liability position in yen, therefore it is short position.
Explanation:
a. The payment is to be received in next 60 days which means there is a risk of yen depreciation and then company will receive lower dollars. The company should hedge its exchange rate risk by selling yen now and buying dollars later.
b. The gift received in the form of bonds will mature in 60 days. There is uncertainty in dollar rate, if dollar appreciates against yen then student will receive less yen.
c. The dollar rate is unpredictable for yen in next 60 days. If yen appreciate then dollar will depreciate against yen and therefore amount of loan repayment will increase.
Bims Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 2,400 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 62,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 20,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month
Answer:
56,400 units
Explanation:
The computation of the equivalent units for conversion costs in the Assembly Department is given below:
But the transferred units is
= Beginning work in process inventory units + additional units - ending work in process inventory units
= 2,400 units + 62,000 units - 20,000 units
= 44,400 units
Now the equivalent units for conversion costs equal to
= Transferred units × percentage of completion + ending work in process inventory units × percentage of completion
= 44,400 units × 100% + 20,000 units ×60%
= 44,400 units + 12,000 units
= 56,400 units
Classify the transaction as either an operating activity, an investing activity, a financing activity, or a noncash activity:
1. Common stock is sold for cash
2. Bonds payable are issued for cash at a discount
3. Interest on a short-term note receivable is collected
4. Merchandise is sold to customers for cash
5. Cash paid to purchase inventory
Answer:
1. financing activity
2. financing activity
3. investing activity
4. operating activity
5. operating activity
Explanation:
Operating Activities includes Firms activities in sale and purchase of Inventory.
Investing Activities shows cash resulting from acquiring and sale of assets as well as receipt of interest on the investments.
Financing Activities shows cash resulting from raising capital or debt and the repayment of debt.
what is gompertz function
Answer:
The Gompertz curve or Gompertz function is a type of mathematical model for a time series, named after Benjamin Gompertz (1779–1865). It is a sigmoid function which describes growth as being slowest at the start and end of a given time period. ... It is a special case of the generalised logistic function.
Farrick and Kenley want to form a business in which they invest money in exchange for stock ownership in their organization. What type of business entity do they wish to form
Answer:
Limited liability company
Explanation:
In simple words, A limited liability corporation (LLC) is a type of private company structure. It's among the most frequent legal structures for forming a company. In a comprehensive partnerships all members are accountable for the firm and have unlimited accountability for its obligations.
Thus the limited liability structure is most suitable for the two.
Fern, Inc., Ivy, Inc., and Jeremy formed a general partnership. Fern owns a 50% interest, and Ivy and Jeremy both own 25% interests. Fern, Inc. files its tax return on an October 31 year-end; Ivy, Inc., files with a May 31 year-end, and Jeremy is a calendar year taxpayer. Which of the following statements is true regarding the taxable year the partnership can choose?
A) The partnership must choose the calendar year because it has no principal partners.
B) The partnership must choose an October year-end because Fern, Inc., is a principal partner.
C) The partnership can request permission from the IRS to use a January 31 fiscal year under § 444.
D) The partnership must use the "least aggregate deferral" method to determine its "required" taxable year.
E) None of the above items are true.
Answer: D) The partnership must use the "least aggregate deferral" method to determine its "required" taxable year.
Explanation:
The Least Aggregate Deferral rule is used when neither of the partners can enforce their taxable year on the others because there is no dominant partner as is the case here because no shareholder has more than 50% ownership and the tax years of the partners are not aligned.
The partnership will have to use the "Least Aggregate Deferral" method when the above happens which is based on the percentage of profits for each partner.
What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19? Answer in percentage terms to 2 decimals and without the % sign.
Answer:
5.00
Explanation:
The rate of return for the investor can be determined using a holding period rate of return bearing in mind that the investor would incur a cash outflow of $1,054.47 whereas the investor would receive $1,037.19 and an annual coupon of 7% of the face value
holding period return=(selling price+annual coupon-purchase price)/purchase price
annual coupon=7%*$1000
annual coupon=$70.00
holding period return=($1,037.19+$70.00-$1,054.47)/$1,054.47
holding period return=5.00%
Productivity is difficult to measure because precise units of measure are available, quality is consistent, and exogenous variables don't change. True False
Answer:
False
Explanation:
All of the statements being made are False. Productivity is measured by stats. For example, in any given month a certain number of products are produced by a fixed number of employees, the next month the same value is calculated and compared with the previous month. This lets you know if productivity is increasing or decreasing. The quality of anything depends on the time and effort being implemented in making something, if this changes then so does the quality. Exogenous variables are simply variables that are not affected by other variables in a given environment, this does not mean that they cannot change. Even though they are independent they can still change. For example, the weather is an exogenous variable but it can still change from Raining to Sunny.
MLX has annual sales of $320 million per year and has calculated the collection float to be 12 days. If MLX is currently paying 9.35% on its line of credit, what amount of interest expense could be saved if the collection float is reduced by 3 days? (Assume 365 days per year.
Answer:
The right solution is "$245,917.81".
Explanation:
According to the question,
Interest,
= 9.35%
Sales,
= 320000000
Float reduction,
= 3
Now,
Saving in interest will be:
= [tex]Sales\times Interest\times \frac{Float \ reduction}{365}[/tex]
By substituting the values, we get
= [tex]320000000\times 9.35 \ percent\times \frac{3}{365}[/tex]
= [tex]245,917.81[/tex] ($)
To urban-dwelling, educated tech-savvy consumers, when they use Zipcar, car-sharing service, instead of owning a car, they save money while reducing their carbon footprint. What is effective about this position statement?
Answer: It addresses all five key elements of an effective position statement.
Explanation:
In this scenario, the most effective thing about this position statement is that it addresses all the five key elements of an effective position statement.
The target market is identified, the category of customers which are the prospective customers is identified as well. The company's differentiators as well as the mission and vision is also in effect.
Assume that EEG Company wanted to reduce the cost of materials handling in each of its stores, and management set a target reduction of 2 percent per year. If a given store has current annual materials handling costs of $200,000 and expected an increase next year due to 15 percent growth, the budget for next year would be: A. $230,000 B. $216,000 C. $196,000 D. $225,400
14.With earned value management (EVM), the Government can determine if a program is currently experiencing a/n
Answer: cost or schedule variance
Explanation:
Earned value management, refers to the project management technique that's used for the measurement of project progress and performance.
Earned value management integrates the cost, schedule, and scope in the measurement of project performance and this can be used by the government to determine if a program is currently experiencing a cost or schedule variance.
Olin is a partner in Precision Plumbing. When the partners decide to dissolve the firm, Olin collects and distributes the assets. This results in
Answer: the termination of the firm's legal existence
Explanation:
The options to the question are:
a. the termination of the firm's legal existence.
b. the temporary suspension of the firm's business.
c. the continuation of the firm's business.
d. nothing with respect to the firm's existence
From the information given in the question, the partners decide to dissolve the firm and Olin collects and distributes the assets. Based on these reasons, this will results in the termination of the legal existence of the firm.
A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 loans per day. A furnace repair team that services an average of 3 furnaces a day if the design capacity is 9 furnaces a day and the effective capacity is 8 furnaces a day.
a. Utilization ____________ %
b. Efficiency ____________ %
Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems?
Answer:
Efficiency = Actual Output / Effective Capacity * 100%
Utilization = Actual Output / Design Capacity * 100%
Loan processing operation
Actual output = 9 loans per day
Design capacity = 10 loans per day
Effective capacity = 8 loans per day
Utilization = 9/10 * 100
Utilization = 90.0%
Efficiency = 9/8 x 100
Efficiency = 112.5%
Furnace repair team
Actual output = 3 furnaces per day
Design capacity = 9 furnaces per day
Effective capacity = 8 furnaces per day
Utilization = 3/9 * 100
Utilization = 33.3%
Efficiency = 3/8 * 100
Efficiency = 37.5 %
Markung's Co. is 100% equity-financed company (no debt or preferred stock); hence, its WACC equals it cost of common equality. Markung's Co.'s retained earnings will be sufficient to fund its capital budget in the foreseeable future. The company has a beta of 1.50, the risk-free rate is 5.0%, and the market return is 6.5%. What is Markung's Co.'s cost of equity?
Markung's Co. is financed exclusively using equity funding and has a cost of equity of 12.55%. It is considering the following projects for investment next year:
Project Required Investment Expected rate of return
W $22,450 13.10%
X $12,750 10.10%
Y $19,235 13.60%
Z $17,875 14.60%
Each Project has average risk, and Markung’s Co. accepts any project whose expected rate of return exceeds its cost of capital. How large should next year’s capital budget be?
Answer:
Markung Cost of Equity:
For this you should use the Capital Asset Pricing Model:
Cost of equity = Risk free rate + Beta * (Market return - Risk free rate)
= 5% + 1.50 * (6.5% - 5%)
= 7.25%
Total capital budget:
They will only pick projects with a rate of return that is higher than 12.55%:
= Project W + Project Y + Project Z
= 22,450 + 19,235 + 17,875
= $59,560
One thousand dollars is invested at 5% continuous annual interest. this means the value of the investment will grow exponentially, with k equaling the decimal rate of interest. What will the value of the investment be after 7 1/2 years?
a. $1, 375.00.
b. $375.00.
c. $1, 454.99.
d. $454.99.
The Gear Division makes a part with the following characteristics:
Production capacity 25,000 units
Selling price to outside customers $ 18
Variable cost per unit $ 11
Fixed cost, total $ 100,000
Motor Division of the same company would like to purchase 10,000 units each period from the Gear Division. The Motor Division now purchases the part from an outside supplier at a price of $17 each. Suppose that the Gear Division is operating at capacity and can sell all of its output to outside customers. If the Gear Division sells the parts to Motor Division at $17 per unit, the company as a whole will be:
a. better off by $10,000 each period.
b. worse off by $20,000 each period.
c. worse off by $10,000 each period.
d. There will be no change in the status of the company as a whole.
Answer:
Effect on income= -10,000
Explanation:
Giving the following information:
Production capacity 25,000 units
Selling price to outside customers $ 18
Variable cost per unit $ 11
Fixed cost, total $ 100,000
First, we need to calculate the unitary total production cost:
Total unitary cost= (100,000/25,000) + 11
Total unitary cost= $15
The company can sell all of its production to outside customers and gain $3 from the sale. But, by selling to the Motor Division, it gains $2.
Now, the effect on income:
Effect on income= increase in income by not buying the part - decrease in sales revenue for not selling to outside customers
Effect on income= 10,000*2 - 10,000*3
Effect on income= 20,000 - 30,000
Effect on income= -10,000
A rate-making method designed to adjust a premium to reflect the actual loss experience of an insured during the policy period is known as:_______.
a. retrospective rating,
b. experience rating,
c. premium discount,
d. all of the above
Answer:
a. retrospective rating
Explanation:
Retrospective Rating can be regarded as a rating plan which is able to give
adjustments to it's premium, this rating can be subjected to a certain minimum as well as maximum, the rating is able to reflect or state the current loss experience of the insured. This rating give combination of actual losses as well as graded expenses so that produce a premium that reflects the current experience of the insured accurately can be produced. It should be noted that retrospective rating is a rate-making method designed to adjust a premium to reflect the actual loss experience of an insured during the policy period
The beginning inventory of BG Action Figures is understated by $7 million at December 31, 20x8. What is the effect on 20x8 cost of goods sold? Group of answer choices $7 million overstated $7 million understated no effect none of the above
Answer:
$7million understated
Explanation:
Based on the information given the effect on 20x8 COST OF GOODS SOLD will be UNDERSTATED by $7 million reasons been that since the OPENING INVENTORY IS UNDERSTATED by $7 million which means that the COST OF GOODS SOLD will as well be UNDERSTATED by the same amount based on the fact that opening inventory adds to Cost of goods sold.
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $440,000; Allowance for Doubtful Accounts has a credit balance of $4,000; and sales for the year total $1,980,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $14,800.
Required:
a. Determine the amount of the adjusting entry for uncollectible accounts.
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
c. Determine the net realizable value of accounts receivable.
Answer: See explanation
Explanation:
a. The amount of the adjusting entry for uncollectible accounts will be:
= Estimated balance required in Allowance account - Unadjusted balance existing in Allowance account
= $14800 - $4000
= $10800
b. The adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense will be:
Account receivables = $440,000
Allowance for Doubtful accounts = $14,800
Bad Debt expense = $10800
c. The net realizable value of accounts receivable will be:
= Account receivables - Allowance for Doubtful accounts
= $440,000 - $14800
= $425200
Consider golfers who led the Professional Golfers' Association of America (PGA) in winnings at different points in time. Note that the winnings are nominal figures (unadjusted for inflation).
Year Golfer Nominal Winnings (Dollars) U.S. CPI (1983 = 100) Winnings in 2009 Dollars
1965 Jack Nicklaus 140,752 31.5
1970 Lee Trevino 157,037 38.8
1982 Craig Stadler 446,462 96.5
2009 Tiger Woods 10,508,163 214.5 10,508,163
Fill in the missing values in the table above.
Answer:
Professional Golfers' Association of America (PGA)
Winnings at Different Points in Time
Year Golfer Nominal U.S. CPI Winnings
Winnings (Dollars) (1983 = 100) in 2009 Dollars
1965 Jack Nicklaus 140,752 31.5 958,454
1970 Lee Trevino 157,037 38.8 868,156
1982 Craig Stadler 446,462 96.5 992,395
2009 Tiger Woods 10,508,163 214.5 10,508,163
Explanation:
a) Data and Calculations:
Year Golfer Nominal U.S. CPI Winnings
Winnings (Dollars) (1983 = 100) in 2009 Dollars
1965 Jack Nicklaus 140,752 31.5
1970 Lee Trevino 157,037 38.8
1982 Craig Stadler 446,462 96.5
2009 Tiger Woods 10,508,163 214.5 10,508,163
Calculating the missing values:
Year Golfer Nominal U.S. CPI Winnings
Winnings (Dollars) (1983 = 100) in 2009 Dollars
1965 Jack Nicklaus 140,752 31.5 958,454 (140,752*214.5/31.5)
1970 Lee Trevino 157,037 38.8 868,156 (157,037*214.5/38.8)
1982 Craig Stadler 446,462 96.5 992,395 (446,462*214.5/96.5)
2009 Tiger Woods 10,508,163 214.5 10,508,163
Navajo Corporation traded a used truck (cost $20,000, accumulated depreciation $18,000) for a small computer with a fair value of $3,300. Navajo also paid $500 in the transaction. Prepare the journal entry to record the exchange. (The exchange has commercial substance.)
Answer and Explanation:
The journal entry is given below:
Equipment/Computer $3,300
Accumulated depreciation-Truck $18,000
To Truck $20,000
To Gain on disposal of truck $800
To Cash $500
(Being the exchange is recorded)
Here the equipment and accumulated depreciation is debited as it increased the asset and credited the truck, cash and gain as it decreased the assets and increased the revenue
The standard amount of materials required to make one unit of Product Q is 4 pounds. Tusa's static budget showed a planned production of 6,200 units. During the period, the company actually produced 6,300 units of product. The actual amount of materials used averaged 3.9 pounds per unit. The standard price of material is $2 per pound. Based on this information, the materials usage variance was:\
Answer: $1,260 Favorable
Explanation:
Material usage variance = (Standard quantity of materials actually produced - Actual quantity of materials actually produced) * Standard price of material
= [ ( 4 * 6,300 ) - (3.9 * 6,300) ] * 2
= [ 25,200 - 24,570 ] * 2
= 630 * 2
= $1,260 Favorable
What annual rate of return is earned on a $13,000 investment made in year 2 when it grows to $17,000 by the end of year 7?
A. 10.64%.
B. 4.28%.
C. 8.04%.
D. 5.51%.
Answer:
It would be D. 5.51%
Answer:
D
Explanation:
It's accumulating for 5 years
[tex]17000=13000(1+i)^5\\1.307692308=(1+i)^5\\\sqrt[5]{1.307692308} =1+i\\i=.05511[/tex]
The short-run elasticity of demand for gasoline sold at gasoline stations is 0.20. If terrorism causes the supply of gasoline to fall, resulting in a 5 percent drop in quantity, if other things remain the same, the price per gallon will increase by:___________
Answer:
25%
Explanation:
Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.
Price elasticity of supply = percentage change in quantity supplied / percentage change in price
0.2 =5% / percentage change in price
percentage change in price = 5/0.2 = 25%
If the absolute value of price elasticity is greater than one, it means supply is elastic. Elastic supply means that quantity supplied is sensitive to price changes.
Supply is inelastic if a small change in price has little or no effect on quantity supplied. The absolute value of elasticity would be less than one
Supply is unit elastic if a small change in price has an equal and proportionate effect on quantity supplied.
Mannix Corporation stock currently sells for $80 per share. The market requires a return of 10 percent on the firm's stock. If the company maintains a constant 6 percent growth rate in dividends, what was the most recent dividend per share paid on the stock
Answer: $3.02
Explanation:
The Gordon growth method can help solve this:
Formula is:
Price of stock = (Most recent dividend * (1 + growth rate)) / (required return - growth rate)
80 = ( D * ( 1 + 6%)) / (10% - 6%)
80 = 1.06D / 4%
1.06D = 80 * 4%
D = 3.2 / 1.06
D = $3.02
By representing the budget and schedule associated with each task, the Performance Measurement Baseline (PMB) allows program managers to ___________________. Reduce overall life cycle costs Complete projects on time Compare the value of work performed to actual costs Complete comparative analyses more efficiently
Answer:
Option C (Compare......actual costs) is the correct alternative.
Explanation:
The benchmark establishing performance measurements takes place just at beginning of the assignment to monitor the construction process.Three restrictions exist, notably timeframe, scope as well as money. Benchmark employee performance simply monitors the implementation with these restrictions. This enables system management to identify discrepancies promptly.The situation presented is not connected to other alternatives. This is the solution, therefore.
bank holds $10 for every $100 in deposits. The bank wants to hold $9 for every $100 in deposits. The bank holds desired reserves of $7 comma 000 and actual reserves of $12 comma 000 . What is the actual reserve ratio, the desired reserve ratio, and the excess reserves ?
Answer:
Actual reserve ratio = Money that bank holds per deposit
= 10 / 100
= 10%
Desired reserve ratio = Money banks wants to hold per deposit
= 9 / 100
= 9%
Excess reserves = Actual reserves - desired reserves
= 12,000 - 7,000
= $5,000