Answer:
Oct 1
Rent expense Dr. $2800
Cash Cr. $2800
(To record entry for payment of rent for month)
Oct 3
Advertising expenses Dr. $525
Cash Cr. $525
(To record entry for Advertising expenses)
Oct 5
Supplies Dr. $1250
Cash Cr. $1250
(To record entry for purchase of supplies)
Oct 6
Office equipment Dr. $9300
Accounts Payable Cr. $9300
(To record purchase of office equipment on account)
Oct 10
Cash Dr. $16600
Accounts Receivable Cr. $16600
(To record cash received from customers on account)
Oct 15
Accounts payable Dr. $3720
Cash Cr. $3720
(To record payment made to creditors)
Oct 27
Miscellaneous expenses Dr. $590
Cash Cr. $590
(To record repair expense of office equipment)
Oct 30
Telephone expense Dr. $275
Cash Cr. $275
(To record payment made for telephone bill)
Oct 31
Accounts receivables Dr. $50160
Service fees Cr. $50160
(To record fees earned )
Oct 31
Utility expense Dr. $830
Cash CR $830
(To record payment made for electricity bill)
Oct 31
Personal use Dr. $1700
Cash Cr. $1700
(To record payment of dividend)
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer.
Month Occupancy-Days Electrical Costs
January 1,736 $4,127
February 1,904 $4,207
March 2,356 $5,083
April 960 $2,857
May 360 $1,871
June 744 $2,696
July 2,108 $4,670
August 2,406 $5,148
September 840 $2,691
October 124 $1,588
November 720 $2,454
December 1,364 $3,529
Required:
a. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day.
b. What other factors other than occupancy-days are likely to affect the variation in electrical costs from month to month?
Answer:
Total cost= 1,395 + 1.56x
x= number of units of activity
Explanation:
To calculate the unitary and fixed costs, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (5,148 - 1,588) / (2,406 - 124)
Variable cost per unit= $1.56
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 5,148 - (1.56*2,406)
Fixed costs= $1,395
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 1,588 - (1.56*124)
Fixed costs= $1,395
The total cost is given by:
Total cost= 1,395 + 1.56x
x= number of units of activity
The electrical costs can vary with the season. In summer a higher electricity use is required to cool down the rooms and, some artifacts such as freezers and refrigerators usage increase. In winter the days are shorter, artificial lighting increases.
In the Excel, or spreadsheet, approach to recording financial transactions, if manufacturing overhead is underapplied by X dollars, the Manufacturing Overhead account is closed out by deducting X dollars in the Manufacturing Overhead column and deducting X dollars in the Retained Earnings column.
a. True
b. False
Answer:
False.
Explanation:
To close the underapplied Manufacturing Overhead account requires that the Cost of Goods Sold is debited, say with $100 while the Manufacturing Overhead account is credited with the same amount. Underapplied Manufacturing Overhead account means that a debit balance is left after applying the overhead to production. To close this debit, therefore, a credit entry is required to the manufacturing overhead account. The corresponding debit entry goes to the Cost of Goods Sold, or this may be apportioned among Cost of Goods Sold, Finished Goods Inventory, and Work-in-Process, as may be the case.
Answer:
True.
Explanation:
A forklift will last for only 2 more years. It costs $5,000 a year to maintain. For $20,000 you can buy a new lift that can last for 10 years and should require maintenance costs of only $2,000 a year. a-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 4% per year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) a-2. Should you replace the forklift
Answer:
The equivalent cost of owning and operating the forklift is $4,465.82
We should replace the forklift.
Explanation:
The Equivalent annual cost can be calculated using the following formula
Equivalent annual cost = PV of cost / Annuity factor
Old forklift
PV of Cost = Annual cost x 2 years Annuity factor at 4% / 2 years Annuity factor at 4%
Hence
PV of cost = Annual cost = $5,000
New forklift
10 years Annuity factor at 4% = 1 - ( 1 + 4%)^-10 )/4% = 8.11090
PV of cost = ( Annual Cost x 10 years Annuity factor at 4% ) + Initial cost
PV of cost = ( $2,000 x 8.11090 ) + $20,000
PV of cost = 16,221.79 + $20,000
PV of cost = 36,221.79
Placing values in the formula
Equivalent annual cost = $36,221.79 / 8.11090
Equivalent annual cost = $4,465.82
As the equivalent annual cost of the new lift is lower than the the old one, we should replace the forklift
A corporation had the following assets and liabilities at the beginning and end of this year.
Assets Liabilities
Beginning of the year $57,000 $24,436
End of the year 115,000 46,575
A. Owner made no investments in the business, and no dividends were paid during the year.
B. Owner made no investments in the business, but dividends were $1,500 cash per month.
C. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock.
D. Dividends were $1,500 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock.
Determine the net income earned or net loss incurred by the business during the year for each of the above separate cases.
Answer:
Net Income / Net Loss:
Scenario A $35,888 (-58,000 + 22,112)
Scenario B $37,088 (-58,000 + 22,112 + 1,500)
Scenario C -$9,112 (-58,000 + 45,000 + 22,112)
Scenario D $17,112 (-58,000 + 35,000 + 22,112 + 18,000)
Explanation:
a) Data and Calculations:
Beginning Ending
Assets $57,000 $24,463
Liabilities 115,000 46,575
Equity (58,000) ($22,112)
Net Income / Net Loss:
Scenario A $35,888 (-58,000 + 22,112)
Scenario B $37,088 (-58,000 + 22,112 + 1,500)
Scenario C -$9,112 (-58,000 + 45,000 + 22,112)
Scenario D $17,112 (-58,000 + 35,000 + 22,112 + 18,000)
b) The net income is the difference between the beginning equity plus new investments and the ending equity and dividends.
According to the substitution effect of labor supply, when the wage rate goes up: Group of answer choices it becomes more costly to consume leisure, so people will work more. it becomes less costly to consume leisure, so people will work more. the opportunity cost of enjoying leisure goes down. firms will hire more workers since people are more willing to work.
According to the substitution effect of labor, firms would hire more workers because people are more willing to work more.
The substitution effect of labor tells us that as income is raised, people would be more willing to give up leisure hours to work more.
This is due to the fact that they would earn more money for the extra hours that they would have spent on leisure.
There would be more willingness to work and the firms would have more people to hire.
Read more on the substitution effect here:
https://brainly.com/question/1319399
Games Galore Corporation hires Amanda, a minor, to create new customized game software for certain clients. Amanda signs a contract that requires her to work for Games Galore for eighteen months. Before beginning work, however, Amanda tells Games Galore that she will not create new software for Games Galore and that she is going to work for Ideal Worldcraft, Inc., a Games Galore competitor. Answer the following questions, providing the reasoning/analysis behind your conclusions, i.e. list the applicable rule/law, and apply the facts to the rule to reach a conclusion. You can also argue in the alternative.
(a) Is Games Galore’s contract with Amanda enforceable?
(b) Why or why not?
Answer and Explanation:
According to the question the contract is valid but the same would not be enforceable as Amanda is a minor. As a minor her consent is not valid completely but if there is any violation on Games Galore so the same would be penalized that results the contract to be enforceable. For minors, the guardian is necessary
So being a minor the contract would not be enforceable although she accepts the terms and condition of 18 months
A machine at a cost of $5,000 was purchased 3 years ago. It can be sold now for $3,000. If the machine is kept, the annual operating and maintenance costs will be $1,500. If it is kept and operated for next five years, determine the amount at time 0 (now) equivalent to the cost of owning and operating the machine for the next five-year period. It is anticipated that the machine can be sold for $1,000 at the end of the five-year period. Use an interest rate of 10%
Answer:
$10,065.26
Explanation:
First, we need to calculate the present value of machine operating cost using the following formula
PV of operating cost = Yearly Operating cost x ( 1 - ( 1 + Interest rate )^-numbers of years ) / Interest rate
Where
Yearly operating cost = $1,500
Interest rate = 10%
Numbers of years = 5 years
Placing values in the formula
PV of operating cost = $1500 x ( 1 - ( 1 + 10% )^-5 ) / 10%
PV of operating cost = $5,686.18
Now calculate the present vlaue of salvahge value
PV of SAlvage value = Slavage value / ( 1 + Interest rate )^Numbers of years
where
Salvage Value = $1,000
Interest rate = 10%
Numbers of years = 5 years
PLacing values in the formula
PV of SAlvage value = $1,000 / ( 1 + 10% )^5
PV of SAlvage value = $620.92
Net cost at time 0 = Initial purchase cost + PV of operating cost - Present value of salvage value = $5,000 + $5,686.18 - $620.92 = $10,065.26
probability
find the probability
Answer:
i think 7 jahahhhaa
Matrix Inc. calculates cost for an equivalent unit of production using the weighted-average method.
Data for July:
Work-in-process inventory, July 1 (40,000 units):
Direct materials (92% completed) $122,800
Conversion (58% completed) 77,250
Balance in work in process inventory, July 1 $200,050
Units started during July 94,000
Units completed and transferred 109,600
Work-in-process inventory, July 31:
Direct materials (92% completed) 24,400
Conversion (58% completed) Cost incurred during July:
Direct materials $184,000
Conversion costs 292,000
Required:
a. Cost per equivalent unit for materials under the weighted-average method is calculated to be:______
b. Cost per equivalent unit for conversion under the FIFO method is calculated to be:_______
Answer:
a. $2.32
b. $2.92
Explanation:
Part a
Equivalent Units
Completed and Transferred 109,600 x 100% 109,600
Ending Work In Process 24,400 x 92% 22,448
Equivalent Units with respect to Materials 132,048
Total Materials Cost
Materials cost Beginning Work in Process $122,800
Add Material Cost incurred during the year $184,000
Total Material Costs $306,800
Cost per equivalent unit = Total Materials Cost ÷ Equivalent Units
= $306,800 ÷ 132,048
= $2.32
Part b
Equivalent Units
To finish OWIP 40,000 x 42% 16,800
Started and Completed (109,000 - 40,000) x 100 69,000
Closing Work in Progress 24,400 x 58% 14,152
Equivalent units with respect to conversion cost 99,952
Total Conversion Cost
Conversion Cost incurred during the year $292,000
Total Material Costs
Cost per equivalent unit = Total Conversion Cost ÷ Equivalent Units
= $292,000 ÷ 99,952
= $2.92
the majority of retailers are what
Kingbird Corporation is preparing its December 31, 2020, balance sheet. The following items may be reported as either a current or long-term liability.
1. On December 15, 2020, Kingbird declared a cash dividend of $2.30 per share to stockholders of record on December 31. The dividend is payable on January 15, 2021. Kingbird has issued 1,000,000 shares of common stock, of which 50,000 shares are held in treasury.
2. At December 31, bonds payable of $114,286,000 are outstanding. The bonds pay 12% interest every September 30 and mature in installments of $28,571,500 every September 30, beginning September 30, 2021.
3. At December 31, 2019, customer advances were $12,485,000. During 2020, Kingbird collected $32,673,000 of customer advances; advances of $27,486,000 should be recognized in income.
Required:
For each item above, indicate the dollar amounts to be reported as a current liability and as a long-term liability, if any.
Answer:
1. Dividend payable = (1,00,000 shares - 50,000 shares) shares * $2.30 per shares = $2,185,000 will be reported as current liability (payable within 1 year)
2. Bonds payable (September 30, 2021 installment)= $28,571,500 and interest on bonds = ($114,286,000*12%*3/12) = $3,428,580 are current liabilities whereas Bonds payable (Other than September 30, 2018 installment) =($114,286,000 - $28,571,500) = $85,714,500 are long term liabilities.
3. Customer advances = ($12,485,000 + $32,673,000 - $27,486,000) = $17,672,000 are current liabilities.
Cynthia Co. exchanged Building 24 which has an appraised value of $4,800,000, a cost of $7,600,000, and accumulated depreciation of $3,619,000 for Building M belonging to Waterway Co. Building M has an appraised value of $4,560,000, a cost of $9,096,000, and accumulated depreciation of $4,747,000. The correct amount of cash was also paid. Assume depreciation has already been updated.
Prepare the entries on both companies' books assuming the exchange had no commercial substance.
Answer:
See the journal entries below.
Explanation:
In the Book of Cynthia Co.
Book value of Building 24 = Cost of Building 24 - Accumulated depreciation of Building 24 = $7,600,000 - $3,619,000 = $3,981,000
Gain on disposal of Building 24 = Building 24 an appraised value of - Book value of Building 24 = $4,800,000 - $3,981,000 = $819,000
Basis for Building M = Building M appraisal value - Gain on disposal of Building 24 = $4,560,000 - $819,000 = $3,741,000
Cash = Accumulated Depreciation of Building 24 + Basis for Building M - Cost of Building 24 - Gain on Disposal of Building 24 = $3,619,000 + $3,741,000 - 7,600,000 - $819,000 = $1,059,000
The journal entries will look as follows:
Accounts Title Debit ($) Credit ($)
Accumulated Depreciation 3,619,000
Building M 3,741,000
Cash 1,059,000
Building 24 7,600,000
Gain on Disposal 819,000
To record the exchange of Building 24 for Building M from Waterway Co.
In the Book of Waterway Co.
Building 24 = Building M cost + Cash - Building M depreciation = $9,096,000 + $1,059,000 - $4,747,000 = $5,408,000
The journal entries will look as follows:
Accounts Title Debit ($) Credit ($)
Accumulated Depreciation 4,747,000
Building 24 5,408,000
Building M 9,096,000
Cash 1,059,000
To record the exchange of Building M for Building 24 from Cynthia Co.
In January, Harry and Belinda Johnson had $10,660 in monetary assets: $1,100 in cash on hand; $1,200 in a statement savings account at First Credit Union earning 1.0 percent interest; $4,000 in a statement savings account at the Far West Savings Bank earning 1.1 percent interest; $2,260 in Homestead Credit Union earning a dividend of 1.3 percent; and $2,100 in their regular checking account at First Credit Union earning 1 percent.
If the Johnsons could put most of their monetary assets ($10,660) into a money market account earning 2.3 percent, how much would they have in the account after one year? Round your answer to the nearest dollar.
Answer:
the amount after one year is $10,905
Explanation:
The computation of the amount after one year is shown below:
= Monetary assets ×(1 + earning interest)
= $10,660 × (1 + 0.023)
= $10,660 × 1.023
= $10,905
Hence, the amount after one year is $10,905
We simply applied the above formula
What should you do first to best use your personal goals as a means for a promotion
Answer:
The solution to this question can be defined as follows:
Explanation:
To achieve any goal, first of all, we need to make a quite high range of the ambition and after preparing the ambition we need to get hard work to achieve that goal. we must not be lazy, in another word we can say that laziness will make a boundary, that we can't pass. If we want to get the goal is to be promoted by using personal goals. that's why we suggest that the separate your personal and work goals, and try to work hard to achieve the goal.
Abigail has just signed a 5-year lease for her new business. The full annual lease amount is due at the beginning of every year and such cash flows have been agreed to be 20,156 dollars now and the subsequent payments to increase by 5% per year until maturity. Given that the prevailing average market interest rate is 8% per year compounded monthly, compute the present value of this financial asset. (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas)
Answer: $93,088
Explanation:
Rate is compounded monthly which makes it:
= 8% / 12
= 0.6667%
= 0.006667
The payment of $20,156 is to increase yearly at a rate of 5%. Payments are at the beginning of the period so the first payment does not have to be discounted.
[tex]= 20,156 + \frac{20,156 * 1.04}{(1 + 0.006667)^{12} } + \frac{20,156 * 1.04^{2} }{(1 + 0.006667)^{24} } + \frac{20,156 * 1.04^{3} }{(1 + 0.006667)^{36} } + \frac{20,156 * 1.04^{4} }{(1 + 0.006667)^{48} }\\\\= 20,156 + 19,355.65 + 18,587.08 + 17,849.02 + 17,140.27\\\\= 93,088.02[/tex]
= $93,088
Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ACME Wayne ($ in millions)Corporation Enterprises Current assets:Cash and cash equivalents $499 $285 Current investments 7 530 Net receivables 751 206 Inventory 10,586 8,609 Other current assets 1,344 255 Total current assets $13,187 $9,885 Current liabilities:Current debt $8,621 $4,451 Accounts payable 1,807 1,061 Other current liabilities 1,179 2,381 Total current liabilities $11,607 $7,893 Required:1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.)
Answer: See explanation
Explanation:
We should note that the current ratio is calculated as:
= Current assets / Current liabilities
Therefore, the current ratio for ACME Corporation will be:
= Current assets / Current liabilities
= $13,187 / $11,607
= 1.136
The current ratio for Wayne Enterprises will be:
= Current assets / Current liabilities
= $9,885 / $7,893
= 1.25
Defaulting on a bond most nearly means
the bond issuer cannot pay the promised amount
O the bond issuer pays a percentage of the bond's value
O the bond holder sells the bond on the secondary market
O the bond's rating has decreased
Whether to pay a lawmaker for giving a speech at your company is an ethical
dilemma that deals with
O A. lobbying
B. awarding honoraria
c. professional standards
D. gift giving
Answer: D
Explanation:
Answer:
D. gift giving
Explanation:
On August 31, the balance sheet of Bramble Veterinary Clinic showed Cash $12,000, Accounts Receivable $4,700, Supplies $600, Equipment $6,000, Accounts Payable $6,600, Common Stock $16,050, and Retained Earnings $650. During September, the following transactions occurred.
1. Paid $3,500 cash for accounts payable due.
2. Collected $2,050 of accounts receivable.
3. Purchased additional equipment for $2,350, paying $900 in cash and the balance on account.
4. Performed services worth $7,900, of which $2,550 is collected in cash and the balance is due in October.
5. Declared and paid a $2,250 cash dividend.
6. Paid salaries $2,100, rent for September $1,150, and advertising expense $100.
7. Incurred utilities expense for month on account $180.
8. Received $12,000 from Capital Bank on a 6-month note payable.
Required:
Prepare a tabular analysis of the September transactions beginning with August 31 balances.
Answer:
Total Assets = Total Liabilities + Total Owner's Equity = $35,550
Explanation:
Note: See the attached excel file for the tabular analysis of the September transactions beginning with August 31 balances.
In the attached excel file, Evidence that Assets Equal Liabilities Plus Stockholders' Equity is prepared below the tabular analysis to show that the accounting equation holds as follows:
Total Assets = Total Liabilities + Total Owner's Equity = $35,550
In the attached excel file, the following calculations are performed:
1. Under Transaction 3: Accounts Payable ($) = $2,350 - $900 = $1,450
2. Under Transaction 4: Accounts Receivable = $7,900 - $2,550 = $5,350
-At which point are you producing all running shoe
inserts and no hiking boot inserts?
-Which production point would be a goal for the future
but cannot be attained now?
Answer is A,X
Answer:
the guy above is right trust me (kid in all cp classes)
Explanation:
but yea he is correct
hello, im stuck. if i could get some ideas for this i will mark you brainliest if i can.
i just need some ideas and maybe an explanation. i don't expect an entire two page thing but just some help pls :((
thanks in advance.
Answer: so you are giving someone instructions like how to make a sandwich with a lot of detail so someone could do everything you did :)
Explanation:
✪ ω ✪
Ridgewood, Inc. manufactures upholstery fabric and uses process costing. In the Weaving Department, direct materials are added at the beginning of the process, and conversion costs are added evenly throughout the process. During the month, the Weaving Department used $280,000 of direct materials and $70,000 of conversion costs. At the end of the month, 10,000 equivalent units of direct materials and 9,000 equivalent units of conversion costs had been used. What is the cost per equivalent unit for conversion costs
Answer:
See below
Explanation:
The Case: The hairdressing industry in Pakistan is flourishing day by day. There are certainly lots of hairdressers and each of the hairdressers has a slightly different type of skill. Some salons only cut, some only provide color services, some only do natural hair, some do all types, etc. Also, they have different premises situated in a different location where they provide the services. The prices offered by the hairdresser depend on the services offered by them and its uniqueness. If the particular hairdresser is known for providing the best services in the particular market then he can increase the prices of his services as he knows that consumers can pay slightly more amount of money for his superior services. There is relatively a low barrier for entry and exit for setting up a new hairdresser shop. Requirement: Read the above scenario and explain in which market structure ‘the hairdressing industry’ falls and how?
Answer:
The Hairdressing Industry in Pakistan
The market structure of "the hairdressing industry" falls under Monopolistic Competition. The features of this market structure include: many hairdresser shops, low barriers for entry and exit for setting up a new hairdresser shop, the hairdressing services are not perfect substitutes, and the pricing decisions of any one shop do not impact others.
Explanation:
In a monopolistic competition, each firm is differentiated from others by distinct goods and services. This situation is enhanced in a services industry, where different skills are employed to further differentiate each firm's services from the others. While the products and services may look similar, one cannot actually substitute one for the other. Therefore, each firm can charge different prices for their distinct products and services without being influenced by the other firms, unless through a cartel arrangement.
In the FASB ASC, Sections are standardized across all Subtopics. For example, Section 20 will be the Glossary section in every Subtopic. Match the Section number with the appropriate description of the Section below. (Note: Not all Section numbers have been included, and not all of the descriptions will be used.)
- 05 - 25 - 30 - 35 - 50 - 65
A. Scope and Scope Exceptions
B. Recognition
C. Subsequent Measurement
D. Initial Measurement
E. XBRL Elements
F. Disclosure
G. Transition and Open Effective Date Information
H. Overview and Background
I. Implementation Guidance and Illustrations
J. Measurement
Answer:
A. 25
B. 50
C.05
D. 25
E. 30
F. 65
G. 35
H. 05
I. 25
J. 05
Explanation:
FASB is Financial Accounting Standard Board which reviews the standards and monitors its implementation after their issuance. The main purpose of FASB is to improve the financial accounting standards. It is single source of authoritative generally accepted accounting practices.
Calculating Earnings per Share Little, Inc., reported earnings of $162,000 for 2013, and at the end of the year, had the following securities outstanding: 60,000 shares of common stock. (The year-end share price was $25 per share). Employee stock options for the purchase of 8,000 common shares at an exercise price of $22 per share. (The options are fully vested).
(a) Calculate the basic earnings per share for Little, Inc. for 2013. Round to two decimal places.
(b) Calculate the diluted earnings per share for Little, Inc. for 2013. Round to two decimal places.
Answer:
(a) Basic earnings per share = $2.70 per share
(b) Diluted earnings per share = $2.38 per share
Explanation:
(a) Calculate the basic earnings per share for Little, Inc. for 2013. Round to two decimal places.
Basic earnings per share = Earnings / Number of shares of common stock .......... (1)
Where;
Earnings = $162,000
Number of shares of common stock = 60,000
Substituting the values into equation (1), we have:
Basic earnings per share = $162,000 / 60,000 = $2.70 per share
(b) Calculate the diluted earnings per share for Little, Inc. for 2013. Round to two decimal places.
Diluted earnings per share = Earnings / (Number of shares of common stock + Number of common shares for employee stock options) ............ (2)
Where;
Earnings = $162,000
Number of shares of common stock = 60,000
Number of common shares for employee stock options = 8,000
Substituting the values into equation (2), we have:
Diluted earnings per share = $162,000 / (60,000 + 8,000) = $162,000 / 68,000 = $2.38 per share
Answer: See Explanation
Explanation:
a. Calculate the basic earnings per share for Little, Inc. for 201
(Net income - Preferred stock dividend) / Weighted SVF shaers of the common stock outstanding
= ($162,000 - 0) / 60,000
= $162000 / 60000
= $2.70
b. Calculate the diluted earnings per share for Little, Inc. for 2013
= ($162,000 - 0) / (60,000+8,000)
= $162000 / 68000
= $2.38
Reamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for next year: Direct materials $ 1,000 Direct labor $ 3,000 Sales commissions $ 4,000 Salary of production supervisor $ 2,000 Indirect materials $ 400 Advertising expense $ 800 Rent on factory equipment $ 1,000 Reamer estimates that 500 direct labor-hours and 1,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be:
Answer:
$3.40 per machine-hour
Explanation:
Calculation for what The predetermined overhead rate per hour will be:
First step is to calculate the Total estimated manufacturing overhead
Manufacturing overhead:
Salary of production supervisor $2,000
Indirect materials $400
Rent on factory equipment$1,000
Total estimated manufacturing overhead $3,400
Now let calculate the Predetermined overhead rate using this formula
Predetermined overhead rate=Total estimated manufacturing overhead/Estimated machine-hours
Let plug in the formula
Predetermined overhead rate=$3,400/1,000
Predetermined overhead rate=$3.40 per machine-hour
Therefore The predetermined overhead rate per hour will be:$3.40 per machine-hour
A corporation wishes to determine the fixed portion of its maintenance expense (a semivariable expense), as measured against direct labor hours, for the first 3 months of the year. The inspection costs are fixed; the adjustments necessitated by errors found during inspection account for the variable portion of the maintenance costs. Information for the first quarter is as follows:
Direct Labor Hours Maintenance Expense
January 34,000 $610
February 31,000 $585
March 34,000 $610
Required:
What is the fixed portion of Jacob's maintenance expense, rounded to the nearest dollar?
a. $283
b. $327
c. $258
d. $541
Answer:
b. $327
Explanation:
The computation of the fixed portion is shown below:
But before that variable maintenance expense per direct labor is
= ($610 - $585) ÷ (34000 hours - 31000 hours)
= $0.00833 per direct labor hour
Now
Total variable expense for 34,000 hours is
= $0.00833 × 34000
= $283
And, finally Fixed portion is
= $610 - $283
= $327
Mike Greenberg opened Cheyenne Window Washing Inc. on July 1, 2022. During July, the following transactions were completed.
July 1 Issued 9,800 shares of common stock for $9,800 cash.
1 Purchased used truck for $6,560, paying $1,640 cash and the balance on account.
3 Purchased cleaning supplies for $740 on account.
5 Paid $1,440 cash on a 1-year insurance policy effective July 1.
12 Billed customers $3,030 for cleaning services performed.
18 Paid $820 cash on amount owed on truck and $410 on amount owed on cleaning supplies.
20 Paid $1,640 cash for employee salaries.
21 Collected $1,310 cash from customers billed on July 12.
25 Billed customers $2,050 for cleaning services performed.
31 Paid $240 for maintenance of the truck during month.
31 Declared and paid $490 cash dividend.
Journalize the July transactions.
Post to the ledger accounts.
Prepare a trial balance at July 31.
Journalize the following adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
(1) Services performed but unbilled and uncollected at July 31 were $1,750.
(2) Depreciation on equipment for the month was $202.
(3) One-twelfth of the insurance expired.
(4) An inventory count shows $320 of cleaning supplies on hand at July 31.
(5) Accrued but unpaid employee salaries were $415.
Answer:
Cash (Dr.) $9.800
Common Stock (Cr.) $9,800
Truck (Dr.) $6,560
Cash (Cr.) $1,640
Accounts Payable -Truck (Cr.) $4,920
Cleaning Supplies (Dr.) $740
Accounts Payable (Cr.) $740
Prepaid Insurance (Dr.) $1,440
Cash (Cr.) $1,440
Accounts Receivable (Dr.) $3,030
Service Revenue (Dr.) $3,030
Accounts Payable - Truck (Dr.) $820
Accounts Payable - Supplies (Dr.) $410
Cash (Cr.) $1,230
Cash (Dr.) $1,310
Accounts Receivable (Cr.) $1,310
Maintenance Expense Truck (Dr.) $240
Cash (Cr.) $240
Dividend paid (Dr.) $490
Cash (Cr.) $490
Explanation:
1) Accounts Receivable (Dr.) $1,750
Service Revenue (Cr.) $1,750
2) Depreciation expense (Dr.) $202
Accumulated Depreciation (Cr.) $202
3) Insurance Expense (Dr.) $120
Prepaid Insurance (Cr.) $120
4) Ending Inventory (Dr.) $320
Cleaning Supplies (Cr.) $320
5) Salaries Expense (Dr.) $415
Salaries Payable (Cr.) $415
sally borrowed $1000 from her friend monique two years ago. their arrangement required sally to repay $250 each year for the subsequent four years. Today with two paymewnts remaining on the loan, Sally offers to repay the loan with a single payment of $475. Assuming no change in interest rates throughout the entire time, should monique accept the signle $475 payment today, why or why not
Answer:
a
Explanation:
Here are the options to this question :
A. yes, 475 is more than the PV of the two remaining payments
B. More information is needed to decide
C. Monique is indifferent between the options, the PVs are equivalent
D. No, the PV of the remaining two payments is more than 475
We have to determine the present value of the remaining two payments and compare the options
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = 0
Cash flow in year 2 = 0
Cash flow in year 3 = 250
Cash flow in year 4 = 250
I = 2%
PV = $466.54
$475 is greater than $466.54. Therefore, she should accept the single $475 payment
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,824. Cash receipts yet to be deposited into the checking account total $3,218, and checks written by the academy but not yet processed by the bank total $1,305. The company's balance of cash does not reflect a bank service fee of $23 and interest earned on the checking account of $34. These amounts are included in the balance of cash of $5,922 reported by the bank as of the end of August. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2021. (Amounts to be deducted should
Answer:
1. Bank balance per reconciliation $7,835
Company balance per reconciliation $7,835
2. August 31, 2021
Dr Cash $34
Cr Interest revenue $34
August 31, 2021
Dr Service fees expense $23
Cr Cash $23
Explanation:
1. Preparation of a bank reconciliation to calculate the correct ending balance of cash on August 31, 2021 .
BANK CASH BALANCE
Per bank statement $5,922
Add deposit outstanding $3,218
Less check Outstanding ($1,305)
Bank balance per reconciliation $7,835
COMPANY CASH BALANCE
Per general ledger $7,824
Less service fees ($23)
Interest earned $34
Company balance per reconciliation $7,835
Therefore the correct ending balance of cash on August 31, 2021 will be :
Bank balance per reconciliation $7,835
Company balance per reconciliation $7,835
2.Preparation of the necessary entries to adjust the balance for cash
August 31, 2021
Dr Cash $34
Cr Interest revenue $34
August 31, 2021
Dr Service fees expense $23
Cr Cash $23