Truck drivers for a hauling company, while loading a desk, found a $100 bill that had fallen out of the desk. They agreed to get it exchanged for small bills and divide the proceeds. En route to the bank, one of them changed his mind and refused to proceed with the scheme, whereupon the other pulled a knife and demanded the bill. A police officer intervened. What crimes have been committed?
Answers
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Astro Corporation was started with the issue of 5,100 shares of $10 par stock for cash on January 1, 2018. The stock was issued at a market price of $15 per share. During 2018, the company earned $66,100 in cash revenues and paid $44,287 for cash expenses. Also, a $3,700 cash dividend was paid to the stockholders.
Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Astro Corporation's 2018 fiscal year.
Answers
Answer:
Income statement
Revenue $66,100
Less Expenses ($44,287)
Net Income / (Loss) $21,813
statement of changes in stockholders' equity
Equity and Liabilities Section :
Equity :
Share Capital 5,100 shares at $10 $51,000
Share Premium 5,100 shares at $5 $25,500
Profit during the year $21,813
Dividends Paid ($3,700)
Total Equity $94,613
balance sheet
Assets
Current Assets :
Cash ( $66,100 + $51,000 + $25,500 - $44,287 - $3,700) $94,613
Total Assets $94,613
Equity and Liabilities Section :
Equity :
Share Capital 5,100 shares at $10 $51,000
Share Premium 5,100 shares at $5 $25,500
Profit during the year $21,813
Dividends Paid ($3,700)
Total Equity $94,613
Explanation:
The Income Statement is prepared first, following the Statement of Changes in Equity then follows the balance sheet and the cash flow statement.
has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment $ 36,500 Annual cash inflows $ 8,600 Salvage value of equipment $ 0 Life of the investment 15 years Required rate of return 10 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return for the investment (rounded to the nearest tenth of a percent) is:
Answers
Answer:
16.89%
Explanation:
As per the given question the solution of simple rate of return for the investment is provided below:-
we need to first find out the accounting profit and depreciation
where
Accounting Profit = Annual Cash Inflow - Depreciation
and
Depreciation = Investment required in equipment ÷ Life of investment
= $36,500 ÷ 15
= $2,433.33
now we will put the value by using the accounting profit formula.
= $8,600 - $2,433.33
= $6,166.67
So,
Simple Rate of Return = Accounting Profit ÷ Initial Investment
= $6,166.67 ÷ $36,500
= 16.89%
The given terms refer to different approaches to regulating natural monopolies. Place each with its corresponding description.A firm is allowed to price its product so that it earns a normal return on capital invested.Firms are directed to charge the price associated with the extra cost of making each unit. This pricing rule often leads to firms earning a negative profit.Firms charge a price that allows them to earn only a normal economic profit.This places maximum limits on the price firms can charge for a good or service.
Answers
Answer: Please refer to Explanation
Explanation:
Sometimes Monopolies need to be regulated to ensure the protection of consumers from unfair pricing business strategies.
The below are some of the ways the Government does so.
A firm is allowed to price its product so that it earns a normal return on capital invested. RATE of RETURN REGULATION.
Firms are directed to charge the price associated with the extra cost of making each unit. This pricing rule often leads to firms earning a negative profit. MARGINAL COST PRICING RULE.
Firms charge a price that allows them to earn only a normal economic profit. AVERAGE COST PRICING RULE.
This places maximum limits on the price firms can charge for a good or service. PRICE CAPS.
The financial statements for Dividendosaurus, Inc., for the current year are as follows: Balance Sheet Statement of Income and Retained Earnings Cash $100,Sales $3,000 Accounts receivable 200,Cost of goods sold (1,600),Inventory 50,Net fixed assets 600,Gross profit $1,400,Operations expenses (970),Total $950,Operating income $430 Accounts payable $140, Interest expense (30) ,Long-term debt 300,Income before tax $400,Capital stock 260 ,Income tax (200), Retained earnings 250 ,Net income $200 ,Total $950 Add: Jan.1 retained earnings 150 Less: dividends (100) Dec.31 retained earnings $250,Dividendosaurus has a dividend-payout ratio of:_______.
A. 19.6%
B. 28.6%
C. 40.0%
D. 50.0%
Answers
Answer:
Option D,50% is the correct answer.
Explanation:
Dividend payout ratio is an important financial measure which measures the ratio of company's dividends payment to net income of the company.
This implies the portion of income earned in a year given to shareholders as dividends while the remains is kept in the business as source of further growth.
Dividend payout ratio=dividends/net income=$100/$200=50%
Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 2,000 units):
Direct materials $ 25
Direct labor 53
Variable overhead 16
Fixed overhead 47
Total $ 141
Trailblazers offered to sell the assembly to Mobility for $110 each. The total order would amount to 2,000 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $10,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $40,000.
Required:
(a) Prepare a schedule that shows the differential costs on the 2,000 rear wheel assemblies order. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.)
(b) Should Mobility make rear wheel assemblies or buy them from Trailblazers?
Answers
Answer:
Net savings from buying $ 8,000
Decision : The company should assemble
Explanation:
Unit variable cost of making = 25+ 53+ 16+ 47 = $94
$
Total variable cost ( $94 × 2,000) = 188,000
Total cost of external purchase ($110× 2000) 220,000
Extra variable cost from external purchase (32,000 )
add Savings in fixed overheads 40,000
Net savings from buying 8,000
Note that the fixed cost were not included because they not relevant for the decision. They would be incurred either way.
Decision.
Since the management wishes tom save at least $10,000 per year but the analysis above shows that the company can only save $8,000, then Mobility should not buy the product but rather assemble them
The following account balances were taken from the adjusted trial balance for Urgent Messenger Service, a delivery service firm, for the fiscal year ended November 30, 2018:Depreciation Expense $10,650Fees Earned 724,500Insurance Expense 5,000Miscellaneous Expense 6,650Rent Expense 75,000Salaries Expense 393,100Supplies Expense 6,150Utilities Expense 41,200Required:1. Prepare an income statement.
Answers
Answer:
$186,750
Explanation:
Urgent Messenger Service,INCOME STATEMENT for the year ended
Fees Earned 724,500
Less Expenses:
Salaries expenses 393,100
Rent expenses 75,000
Utilities expense 41,200
Depreciation expenses 10,650
Miscellaneous expenses 6,650
Supplies expense 6,150
Insurance expense 5,000
Net income (724,500-537,750 ) 186,750
Record the following transactions on the books of Crane Co. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (a) On July 1, Crane Co. sold merchandise on account to Stacey Inc. for $23,380, terms 3/10, n/30. (b) On July 8, Stacey Inc. returned merchandise worth $3,380 to Crane Co. (c) On July 11, Stacey Inc. paid for the merchandise.
Answers
Answer:
a. July 1 Accounts Receivable $23380 Dr
Sales Revenue $23380 Cr
b. July 8 Sales Returns $3380 Dr
Accounts Receivable $3380 Cr
c. July 11 Cash $20000 Dr
Accounts Receivable $20000 Cr
Explanation:
a.
The sales are made on credit so the accounts receivable will be debited and the sales revenue will be credited. Assuming that we are using the gross method to record sale, we will record the sale at the invoice price as quoted and will not record it at net of discount amount.
b.
The sales returns are made on July 8 which will reduce the sales revenue. We do this by opening a contra account to sales revenue which is of Sales returns. The increase in sales returns will be debited to this account and the accounts receivable will be reduced and credited by the amount of return made.
c.
As the sales term are 3/10 n/30 which means a 3% discount if payment for credit sales is made within 10 days of sale and the credit term is 30 days. The Crane Co. received the payment from accounts receivable on July 11 which is after the discount period has ended. Thus the accounts receivable will pay the full amount outstanding which is (23380 - 3380) = $20000.
An individual is known to their coworkers for keeping promises. The individual promised that they would attend a scheduled project meeting or send a representative from their team. The meeting organizer just received an email from the individual that they would not be able to attend the scheduled project meeting.
a. Which one of the following conclusions is best supported by the passage above?
1. The organizer is expecting a representative from the individual's team to attend the meeting.
2. No one from the individual's team will be attending the meeting.
3. Coworkers believe that the individual never breaks promises.
Answers
Answer:
The correct answer is option (1) The organizer is expecting a representative from the individual's team to attend the meeting.
Explanation:
Solution:
As the individual is known for keeping promises and also in the received mail individual didn't tell about their team representative weather representative will attend meeting or not.
As individual known for keeping their promises so that organizer is expecting a representative from the individual team to attend meeting.
Adjusting entries.
a) Present, in journal form, the adjustments that would be made on July 31, 2013, the end of the fiscal year, for each of the following.
1. The supplies inventory on August 1, 2012 was $7,350. Supplies costing $22,150 were acquired during the year and charged to the supplies inventory. A count on July 31, 2013 indicated supplies on hand of $8,810.
2. On April 30, a ten-month, 6% note for $20,000 was received from a customer.
3. On March 1, $12,000 was collected as rent for one year and a nominal account was credited.
Answers
Answer:
J1
Inventory $7,350 (debit)
Trading Account - 2012 $7,350 (credit)
J2
Inventory $22,150 (debit)
Trade Payable $22,150 (credit)
J3
Write down of Inventory $20,690 (debit)
Inventory $20,690 (credit)
J4
Note Receivable $20,000 (debit)
Bank $20,000 (credit)
J5
Rent Prepaid $12,000 (debit)
Bank $12,000 (credit)
Explanation:
J1
Being Inventory on hand at begining of the year
J2
Being Inventory supplies acquired.
J3
Being inventory written down after physical count.
Inventory = $7,350 + $22,150 - $8,810 = $20,690
J4
Being Note received from a customer
J5
Being Rent for 1 year received in advance
Today is time t. Two zero coupon bonds both have a face value of 100 dollars, which means both bonds are expected to pay $100 at Maturity (time T). Bond A is liquid and is often traded by average institutional investors at zero transaction costs. Bond B is illiquid. Its total direct and indirect trading cost is $5 per trade (either buy or sell). Suppose an average-sized institutional trader who wants to own the two bonds will trade three times in either bond (i.e., first buy it at t, then sell it and buy it back again at some time between t and T). Interest rate for discounting future bond price is zero for both bonds. In other words, everyone in this market is not risk averse. What should be the average trader’s evaluation of the bond A and B price today?
A. 100,90
B. 100,100
C. 100,95
D. 100,85
Answers
Answer:
The correct answer is (D) 100,85
Explanation:
Solution:
Two zero coupon bonds both have a face value of = $100
Bond A is liquid and traded by average institutional investors at = 0 transaction costs
Bond B is liquid, with a trading cost of =$5
Now,
As the interest rate for discounting future price is zero, then the Bind price is represented as follows:
Bond price = face value - trading cost
Bond A price = 100 - 3*0 = 100
Bond B price = 100 - 3*5 = 85
Therefore, the average trader's evaluation of the bond A and bond B price today is = 100,85
The Mixed Nuts Division of Yummy Snacks, Inc. had the following operating results last year:
Sales (140,000 pounds of product) $70,000
Variable expenses $42,000
Contribution margin $28,000
Fixed expenses $12,000
Income $16,000
Yummy expects identical operating results in the division this year. The Mixed Nuts Division has the ability to produce and sell 200,000 pounds of product annually. Assume that the Trail Mix Division of Yummy wants to purchase an additional 20,000 pounds of nuts from the Mixed Nuts Division.
Mixed Nuts will be able to increase its profit by accepting any transfer price above:____________.
a) $0.25 per pound
b) $0.08 per pound
c) $0.15 per pound
d) $0.30 per pound
e) $0.10 per pound
Answers
Answer:
d) $0.30 per pound
Explanation:
The solution of minimum transfer price is provided below:-
Here, If the transferor division has spare capacity then variable cost per unit is the minimum transfer price also when the division of the transferor sells over variable cost per unit then the division of the transferor receives benefit.
Therefore,
Minimum transfer price = Variable expenses ÷ Pounds of product
= $42,000 ÷ $140,000
= $0.30 per pound
So, we have calculated the minimum transfer price by using the above formula.
Crafting a strategy to compete in one or more foreign markets can be considered complex because 34) A) factors that affect industry competitiveness are the same from country to country. B) different government policies and economic conditions make the business climate more favorable in some countries than in others. C) the potential for location-based advantages to conducting value chain activities in certain countries. D) buyer tastes and preferences differ among countries and present a challenge for companies concerning. customizing versus standardizing their products and services. E) currency exchange rates among countries are generally fixed and rarely change.
Answers
Answer:
Options A, B, C, and E.
(Please check the explanation section before you judge or pick your answer)
Explanation:
The options A, B, C, and E are the options that are considered complex if we want to Craft a strategy to compete in one or more foreign markets.
Please take note that if the question asked us to pick which of the options is NOT a inherently complex reason when crafting a strategy to compete in one or more foreign markets then we would have picked Option D.
As given in the question, that is option D which says; '' buyer tastes and preferences creates challenges in standardizing products and services." Will not be a reason for crafting a strategy to compete in one or more foreign markets is inherently complex.
Countries due to globalization tends to participate in international trades. Competition in the international trade has its advantages as well as its disadvantages or risks.
To trade in the international market, countries must have their individual strategies and Option D above is NOT a inherently complex reason when crafting a strategy to compete in one or more foreign markets
Answer:
The correct answer is the option D: buyer tastes and preferences differ among countries and present a challenge for companies concerning customizing versus standardizing their products and services.
Explanation:
To begin with, the fact that a company is looking forward to expand its business to other countries needs to be very carefully planned because every business would be manage in different ways in differents areas and that is due to the differences in those countries, in their cultures and social believes as well. That is why, that to craft a strategy to compete in one or more foreign markets can be considered complex because of the different preferences and tastes that buyers in those places will have and due to that the company will need to adjust to that type of customer and therefore to customize their product in order to achieve sale's goals.
1. Answer the below question based upon the following information on Fitbit: Fitbit Year0 Year1 RRF 2% Initial Investment -$5,000,000 RM 9% Units of Sales 150,000 Investment Banking Fee or Floating Rate 7% Price per Unit $400 Existing Fitbit Shares 2,000,000 Variable Cost per Unit $250 New IPO Shares 36,500,000 Fixed Cost $1,000,000 Pre-IPO Value $91,100,000 Depreciation $1,500,000 Tax Rate 35% What is the price per share for the Fitbit IPO?
Answers
Answer:
$8.53
Explanation:
As per the data given in the question,
Total sales
= 150,000 × $400
= $60,000,000
Variable = $37,500,000
Fixed cost = $1,000,000
Depreciation = $1,500,000
Tax rate = 35% = 0.35
Net Income = (Sales - Variable - Fixed cost - Depreciation) (1 -Tax rate)
= ( $60,000,000 - $37,500,000 - $1,000,000 - $1,500,000)(1 -0.35)
= $13,000,000
Price per share
= Net income ÷ Existing Fit-bit shares
= $13,000,000 ÷ 2,000,000
= $6.5
Total IPO value = Pre-IPO value + Post-IPO value
= [$91,100,000 + (6.5 × 36,500,000)] ÷ ( 2,000,000 + 36,500,000)
= $8.53
We simply applied the above formula
Regent Plumbing Company provides plumbing services. The company is a sole proprietorship. Selected transactions of Regent Plumbing Company are described as follows: Sharon Regent, the owner, contributed $6,000 cash in exchange for capital. Paid $4,000 cash for equipment to be used for plumbing repairs. Borrowed $10,000 from a local bank and deposited the money in the checking account. Paid $700 rent for the year. Paid $200 cash for plumbing supplies to be used next year. Completed a plumbing repair project for a local lawyer and received $3,000 cash. How much is the net income for the year ?
Answers
Answer:
Montgomery equipment rental company received $1,000 cash from a customer, the amount was owed to the business from the previous month. ...
The December 31, 2021, post-closing trial balance for Strong Corporation is presented below: Accounts Debit Credit Cash $ 23,300 Accounts receivable 23,100 Prepaid insurance 4,600 Supplies 190,000 Long-Term Investments 52,000 Land 45,000 Buildings 275,000 Accumulated depreciation 86,000 Accounts payable 37,400 Notes payable, due 2022 62,000 Interest payable 12,000 Notes payable, due 2031 129,000 Common stock 180,000 Retained earnings 106,600 Totals $ 613,000 $ 613,000 Prepare a classified balance sheet for Strong Corporation at December 31, 2021.
Answers
Answer and Explanation:
The balance sheet is shown below:-
Current assets Current liability
Cash $23,300 Accounts payable $37,400
Accounts
receivable $23,100 Notes payable due
Prepaid 2022 $62,000
Insurance $4,600 Interest payable $12,000
Supplies $190,000 Total current liabilities $111,400
Total Current Long term liabilities
assets $241,000
Long term Notes payable due 2031 $129,000
Investments $52,000
Property plants and
equipment
Land $45,000 Stockholders Equity
Building $275,000 Common stock $180,000
Less: Accumulated Retained Earnings $106,600
Depreciation $86,000
Property plants and Total stockholder equity $286,600
equipment $234,000
Total assets $527,000 Total Liabilities
and Stockholders’ Equity $527,000
Therefore the total assets is $527,000 while the total liabilities and stockholder equity is $527,000
Some traits of successful individuals in our industry, as mentioned by Aimee Mangold of KOLTER Hospitality included: drive, intelligence, self-confidence, the desire to influence others, relevant knowledge, and honesty/moral character. Unfortunately, these same traits do not apply to other fields outside of the hospitality and tourism industry to any great extent.
O True
O False
Answers
Answer:
The correct answer is the second option: False.
Explanation:
To begin with, the fact that those characteristics in individuals in that industry make it more successful does not mean that the industry mentioned is the only one with those characteristics in the individuals. Actually, it is quite understandable to find individuals with those abilities that make an industry to be better than other, that is the case of the technology industry where most of the workers must have those skills in order to achieve the goals that they look for. So that is why that it is false that those traits do not apply to other fields.
At the beginning of the month, the Forming Department of Martin Manufacturing had 14,000 units in inventory, 40% complete as to materials, and 20% complete as to conversion. During the month the department started 64,000 units and transferred 68,000 units to the next manufacturing department. At the end of the month, the department had 10,000 units in inventory, 85% complete as to materials, and 60% complete as to conversion. If Martin Manufacturing uses the weighted-average method of process costing, compute the equivalent units for materials and conversion respectively for the Forming Department.
Answers
Answer:
total equivalent units using weighted average method:
materials = 76,500 unitsconversion = 74,000 unitsExplanation:
beginning inventory 14,000 units
40% complete to materials = 5,600 equivalent units20% complete to conversion = 2,800 equivalent unitsduring the month 64,000 were started
68,000 units were transferred out
ending inventory 10,000 units
85% complete to materials = 8,500 equivalent units60% complete to conversion = 6,000 equivalent unitstotal equivalent units using weighted average method:
materials = units completed and transferred out + ending inventory = 68,000 + 8,500 = 76,500 unitsconversion = units completed and transferred out + ending inventory = 68,000 + 6,000 = 74,000 unitsEllie has been working for an engineering firm and earning an annual salary of $80,000. She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Ellie will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning annual interest of $500.
Ellie's annual implicit costs will equala. $55,200.b. $75,200.c. $80,500.d. $165,700.
Answers
Answer:
c. $80,500
Explanation:
The computation of the implicit cost is shown below:
Implicit cost = Annual salary earned + annual interest earned on certificate of deposit
= $80,000 + $500
= $80,500
We simply added the annual salary earned and annual interest earned i.e income that is foregone so that the implicit cost could arrive
All other information which is mentioned in the question is not relevant. Hence, ignored it
Q2: In the expenditure cycle, the majority of payments made are by check. What are some
control issues related to payment of vendors by check?
Answers
Answer:
Key control problems in the area of payment by check can give rise to fraudulent activity.
Explanation:
Paying employees by check offers a level of security of employee payments.
Cardinal Company is considering a five-year project that would require a $2,915,000 investment in equipment with a useful life of five years and no salvage value. The company’s discount rate is 12%. The project would provide net operating income in each of five years as follows:
Sales $ 2,746,000
Variable expenses 1,126,000
Contribution margin 1,620,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs $615,000
Depreciation 583,000
Total fixed expenses 1,198,000
Net operating income $ 422,000
Prepare journal entry
Answers
Answer:
Cardinal Company
Journal Entries:
Debit Credit
Equipment $2,915,000
Cash $2,915,000
To record investment in equipment.
Cash $2,746,000
Sales $2,746,000
To record revenue from customers.
Variable Expenses $1,126,000
Cash $1,126,000
To record payment to suppliers.
Advertising & Others $615,000
Cash $615,000
To record payment for expenses.
Equipment Depreciation$583,000
Accumulated Equipment Depreciation $583,000
To record depreciation charge for the year.
Explanation:
Journal entries record business transactions as they occur on a daily or periodic basis. They show the accounts to be debited and the accounts to be credited in the Ledger. Journal entries are the first records made in the books of accounts to capture transactions. They have a note explaining the details of each transaction.
Wozniacki and Wilcox form Jewel LLC, with each receiving a one-half interest in the capital and profits of the LLC. Wozniacki receives his one-half interest as compensation for tax planning services he rendered prior to the formation of the LLC. Wilcox contributes $50,000 cash. The value of a one-half capital interest in the LLC (for each of the parties) is $50,000.
How much income does Wozniacki recognize as a result of this transaction, and what is the character of the income?
Answers
Answer:
Recognize the $50,000 as a compensation income received.
Explanation:
The reason is that the Compensation of $50,000 that Wozniacki received for the services that he previously used to render which means this whole amount received must be recognized as income.
Department E had 4,000 units in Work in Process, that were 40% completed at the beginning of the period, at a cost of $12,500. 14,000 units of direct materials were added during the period, at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450, and factory overhead was $18,710. The number of equivalent units of production for the period for materials, if the average cost method is used to cost inventories was:____________.a. 15,650b. 18,000c. 17,250
d. 17,700
Answers
Answer:
Total equivalent units= 17,250 units
Explanation:
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required to a complete a set of work is done in the period under consideration.So there is no separation of the completed units into opening inventory and fully worked.
Equivalent units = Degree of completion× units of inventory
Item units Equivalent unit
Completed 15,000 100%× 15,000 = 15,000
Closing inventory 3,000 75%× 3,000 = 2,250
Total equivalent units 17,250
Total equivalent units= 17,250 units
Lucy and Fred want to begin saving for their baby's college education. They estimate that they will need $120,000 in eighteen years. If they are able to earn 5% per annum (compounded annually), how much must be deposited at the end of each of the next eighteen years to fund the education? (The future value of a single sum for 18 periods at 5% is 2.40662; The future value of an ordinary annuity of 1 for 18 periods at 5% is 28.13238).
Answers
Answer:
$4,265.55
Explanation:
Future value = $120,000
Interest rate (i) = 5%
Annual deposit = ?
Time period (n) = 18 year
Since deposit are to be made at the beginning of each year, hence the relevant factor table to be used is future value annuity due factor table.
Future value = Annual deposit x future value annuity due factor (i%, n)
120,000 = Annual deposit x FVADF (5%, 18period)
120,000 = Annual deposit x 28.13238
Annual deposit = 120,000/28.13238
=$4,265.547
=$4,265.55
Badgersize Company has the following information for its Forming Department for the month of August.
Work in Process Inventory, August 1: 20,000 units
Direct materials: 100% complete $ 80,000
Conversion: 20% complete 24,000
Balance in work in process, August 1 $ 104,000
Units started during August 49,000
Units completed and transferred in August 60,000
Work in process (70% complete), August 31 ?
Costs charged to Work in Process in AugustDirect materials $140,000Conversion costs:Direct labor $105,000Overhead applied 148,000Total conversion $253,000Assume materials are added at the start of processing.Required:1. Calculate the equivalent units for the Forming Department for the month of August.2. Find the cost per equivalent of input resource.
Answers
Answer:
1. Calculate the equivalent units for the Forming Department for the month of August.
direct materials 60,000 unitsconversion 70,000 units2. Find the cost per equivalent of input resource.
direct materials per unit $2.33conversion cost per unit $3.61Explanation:
beginning WIP 20,000 units:
direct materials 100% = 20,000 equivalent units $80,000
conversion 20% = 4,000 equivalent units $24,000
total $104,000
Units completed and transferred 60,000
Ending WIP = 20,000:
direct materials 100%
conversion costs 70% = 14,000 equivalent units
costs charged:
Direct materials $140,000
Direct labor $105,000
Overhead applied 148,000
equivalent units:
direct materials 60,000 since all materials are added at the beginning
conversion = units started + ending WIP - beginning WIP = 60,000 + 14,000 - 4,000 = 70,000 units
direct materials per unit = total direct materials / equivalent units = $140,000 / 60,000 = $2.33
conversion costs per unit = total conversion costs / equivalent units = $253,000 / 70,000 = $3.61
Jamison Company reports depreciation expense of $48,000 for Year 2. Also, equipment costing $164,000 was sold for a $5,800 gain in Year 2. The following selected information is available for Jamison Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.
At December 31 Year 2 Year 1
Equipment $ 650,000 $ 814,000
Accumulated
Depreciation-Equipment 460,000 540,000
a) $41,800.
b) $36,000.
c) $30,200.
d) $48,000.
e) $84,000.
Answers
Answer:
The correct answer is (a) $41,800.
Explanation:
Solution:
Given that:
The first step taken is to calculate for depreciation on sold equipment:
Amount($)
Accumulated depreciation in Year -1 (a) = 540000
Depreciation for the year 2 (b) = 48000
Accumulated depreciation to be in year 2 c=(a+b)=588000
Reported accumulated depreciation in year 2(d)=460000
Thus,
Depreciation on sold Equipment e= (c-d) = 128000
Now,
The second step is to calculate sale proceeds:
Cost (a)= 164000
Depreciation(b) =128000
The written dawn value c=(a-b) = 36000
Gain on sale of equipment (d)=5800
The Sale Price (c+d)=41800
Therefore, the sale of the equipment is $41,800
QUESTION ONE
Mr. Balham started business on July 1, 2019 with a capital of GH¢16,000 cash.
July 2. Opened a bank account with GH¢8,000
July 2. Bought goods costing GH¢1,000 with cheque
July 3. Purchased Shop Fittings on credit from Jupiter Furniture at GH¢5,000
July 5. Bought motor van by cheque GH¢4,000
July 8. Purchased stationery GH¢150 and goods GH¢5,000 by cash
July 17. Paid insurance GH¢100 by cash
July 18. Cash sales made GH¢2,500
July 20. Sent cash of GH¢2,700 to the bank
July 22. Withdrew GH¢1,000 from the bank for personal use
July 25. Paid motor expenses GH¢300
July 28. Cash sales sent to the bank GH¢5,400
Required: Prepare the ledger accounts of Mr. Balham and extract a trial balance.
Answers
Answer:
a) Ledger Accounts:
1) Capital Account
Debit Credit Balance
Cash GH¢16,000 GH¢16,000
Cash Account
Date Debit Credit Balance
July 1 Capital GH¢16,000 GH¢16,000
July 2 Bank GH¢8,000 GH¢8,000
July 8 Stationery GH¢150 GH¢7,850
July 8 Purchases GH¢5,000 GH¢2,850
July 17 Insurance GH¢100 GH¢2,750
July 18 Sales GH¢2,500 GH¢5,250
July 20 Bank GH¢2,700 GH¢2,550
July 25 Motor Expenses GH¢300 GH¢2,250
3) Bank Account
Date Debit Credit Balance
July 2 Cash GH¢8,000 GH¢8,000
July 2 Purchases GH¢1,000 GH¢7,000
July 5 Motor Van GH¢4,000 GH¢3,000
July 20 Cash GH¢2,700 GH¢5,700
July 22 Drawing GH¢1,000 GH¢4,700
July 28 Sales GH¢5,400 GH¢10,100
4) Purchases Account
Date Debit Credit Balance
July 2 Bank GH¢1,000 GH¢1,000
July 8 Cash GH¢5,000 GH¢6,000
5) Furniture & Fittings Account
Date Debit Credit Balance
July 3 Accounts Payable GH¢5,000 GH¢5,000
6) Accounts Payable
Date Debit Credit Balance
July 3 Furniture & Fittings GH¢5,000 GH¢5,000
7) Motor Van
Date Debit Credit Balance
July 5 Bank GH¢4,000 GH¢4,000
8) Stationery
Date Debit Credit Balance
July 8 Cash GH¢150 GH¢150
9) Insurance
Date Debit Credit Balance
July 17 Cash GH¢100 GH¢100
10) Drawings
Date Debit Credit Balance
July 22 Bank GH¢1,000 GH¢1,000
11) Motor Expenses
Date Debit Credit Balance
July 25 Cash GH¢300 GH¢300
12) Sales Account
Date Debit Credit Balance
July 18 Cash GH¢2,500 GH¢2,500
July 28 Bank GH¢5,400 GH¢7,900
b) Trial Balance as at July 28, 2019:
Debit Credit GH¢ GH¢
Capital 16,000
Cash 2,250
Bank 10,100
Purchases 6,000
Fittings 5,000
Accounts Payable 5,000
Motor Van 4,000
Stationery 150
Insurance 100
Drawings 1,000
Motor Expenses 300
Sales 7,900
Total $28,900 $28,900
Explanation:
a) Ledger Accounts are the financial records of all classes of business transactions, which record the debit and credit sides and extracts balances for preparing the trial balance.
b) Trial Balance is a list of the balances extracted from the ledger. It is a tool for checking if the two sides of the accounts are in balance (equal). It is the basis for adjusting entries and the preparation of the financial statements for a period.
You want to invest in a riskless project in Sweden. The project has an initial cost of SKr3.86 million and is expected to produce cash inflows of SKr1.76 million a year for three years. The project will be worthless after three years. The expected inflation rate in Sweden is 3.2 percent while it is 2.8 percent in the U.S. A risk-free security is paying 4.1 percent in the U.S. The current spot rate is $1 = SKr7.7274.
Required:
1. What is the net present value of this project in Swedish krona if the International Fisher effect applies?
O SKr1,087,561
O SKr958,029
O SKr701,458
O SKr823,333
O SKr978,177
Answers
Answer:
SKr978,177
Explanation:
Note: Find attached the attached excel file for the full calculation of the net present value of this project in Swedish krona.
Applying International Fisher effect, the risk-free rate of return in Sweden is calculated as follows:
USRF = Risk-free rate of return in the US = 4.1%, or 0.041
USEI = Expected inflation in the US = 2.8%, or 0.028
SWRF = Risk-free rate of return in Sweden = ?
SWEI = Expected inflation in Sweden = 3.2%, or 0.032
Applying International Fisher effect, we have:
USRF - USEI = SWRF - SWEI
Substituting for the values, we have:
0.041 - 0.028 = SWRF - 0.032
0.013 = SWRF - 0.032
SWRF = 0.045
The SWRF of 0.045 as the discount rate to calculate the discounting factor in the attached excel file.
Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $300,000 for the year, and machine usage is estimated at 125,000 hours.
For the year, $322,000 of overhead costs are incurred and 130,000 hours are used.
Required:
A) Compute the manufacturing overhead rate for the year.B) What is the amount of under- or overapplied overhead at December 31st?C) Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.
Answers
Answer:
A. $2.40 per Machine hour
B. Underapplied = $10,000
C. cost of goods sold (debit) $10,000 , overheads (credit) $10,000
Explanation:
A) Compute the manufacturing overhead rate for the year
Overhead Rate = Total Fixed Overheads / Budgeted Activity
= $300,000 / 125,000 Machine hours
= $2.40 per Machine hour.
B) What is the amount of under- or over applied overhead at December 31st?
Under Applied Overheads = Actual Overheads > Applied Overheads
Over Applied Overheads = Actual Overheads < Applied Overheads
Actual Overheads = $322,000
Applied Overheads = $2.40 × 130,000 hours = $ 312,000
Underapplied = $10,000
C) Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.
cost of goods sold (debit) $10,000
overheads (credit) $10,000
Answer:
A. The manufacturing overhead rate for the year is $2.40
B. The amount of under- or overapplied overhead at December 31st is $10,000
C. The adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold would be as follows:
Debit Credit
cost of goods sold $10,000
Manufacturing overhead 10,000
Explanation:
A. To calculate the manufacturing overhead rate for the year we would have to use the following formula:
manufacturing overhead rate=Estimated overhead cost/Estimated machine hours usage
manufacturing overhead rate=$300,000/125,000
manufacturing overhead rate=$2.40
B. To Calculate the amount of under applied or over applied overhead cost we would have to use the following formula:
manufacturing overhead cost applied=Total machine hours used*manufacturing overhead rate
manufacturing overhead cost applied=130,000*$2.40
manufacturing overhead cost applied=$312,000
under- or overapplied overhead cost=Actual manufactured overhead costs-Manufacturing overhead cost applied
under- or overapplied overhead cost= $322,000-$312,000
under- or overapplied overhead cost= $10,000
C. The adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold would be as follows:
Debit Credit
cost of goods sold $10,000
Manufacturing overhead 10,000
When determining the best way to motivate employees, why shouldn't managers rely solely on HR staff for directions. (check all that apply)
Answers
You have a team of four employees. Liam, the financial analyst, is from Ireland, and he knows everything there is to know about protecting and growing donations. Destiny, the events planner, is from Charleston, South Carolina, and she is a genius at handling all the details of a fundraiser. Andry is from Madagascar, and he writes all of the content for your fundraising letters and website. Finally, Marjorie is from Berkeley, California, and she prepares profiles of potential donors and makes suggestions about what types of fundraising events might appeal to them.
Although all of your employees are very good at what they do, the group has had some problems in the past. Andry and Marjorie have decided that they will write no more than one discrete piece of work per day, even if they are capable of writing more. If Andry writes more than one part of a website, Marjorie torments him by sending him a stream of instant messages questioning his mental abilities. Destiny and Marjorie tend to disagree about what kinds of events will appeal to donors, and they have had some heated arguments in the past. Marjorie usually wins these fights, which is making Destiny very resentful. Liam has told you that the group needs a strong leader who will make sure that the organization's goals are met.
After reading about the history of management in your textbook, you find yourself particularly fascinated by the human relations approach to management.
The theories seem so modern, but could they really be used in today's world? You decide to put them to the test.
Liam's idea that a strong leader could pull the group together is very similar to Chester Barnard's concept of _________ in organizations.
Finally, you consider how to start solving the problems in the organization. What would Mary Parker Follett recommend you do in this situation? Check all that apply:
a) Try to understand why Andry and Marjorie feel that one piece of writing per day is an acceptable work output. Be a role model in establishing new productivity norms, but recognize that your actions may not have much of an impact on them.
b) Get Destiny and Marjorie into one room. Have them present their visions of what a fundraising event should be, and then brainstorm with them to find ways to achieve both of their goals.
c) Remember that you must have power with, not over, your team. So when you ask Andry and Marjorie to write more, be sure to give them facts and information they need to understand the reason for your request.
d) Be sure that your orders are understood and that your employees have the ability to carry them out. Match your directions with the overall strategy of the organization; at the same time, help people achieve their personal goals.
Answers
Answer: 1. Acceptance Theory to Authority
2. All of the Above.
Explanation:
1. Acceptance Theory to Authority
According to Chester Barnard's concept of Acceptance Theory of Authority, people respond more to in an Organisation to a strong leader whose authority they accept. The main premise here is that the leader's authority has to be accepted and people only usually respect strong leaders. A weaker leader will not be able to bring the team together because the employees will not listen to them as much as they should because they have not accepted their authority.
2. According to Mary Parker Follett, all the above options are correct for initiation in this scenario.
Mary Parker Follett came up Principles of Coordination to help companies better themselves. Some of the principles she came up with cover the options.
A. This has to do with the Reciprocal Relationship Principle of Coordination. Mary Follet argued that there must be a reciprocal relationship at work because people work together. This means that should you start to work harder, it will influence Andry and Majorie to work harder as well.
B. Falls under the Principle of Direct Contact.
According to this principle, Heads of Department should meet and discuss their problems since they are closer to the situation on the ground. Destiny and Majorie should therefore meet and discuss a way forward.
C. Falls under the Early Stages section of Coordination.
Here Mary Follett believed that managers should not unilaterally come up with strategy but rather consult the members of their team and talk to them so that they understand why something must be done.
D. Also falls under the Early Stages section.
Mary also believed that as well as consulting your team to come up with strategy, that strategy needs to be aligned to the goals of the organizations. By discussing with employees before a strategy is implemented, you make sure that they understand it as well and they will then know if or not they are able to perform and voice any objections they may have.