A company had the following assets and liabilities at the beginning and end of this year.
Assets Liabilities
Beginning of the year $ 109,500 $ 46,943
End of the year 169,000 68,445
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 $1,450 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 $1,450 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:
(Decreases in equity should be indicated with a minus sign.)
a. b. c. d.
Beginning of the year
Answers
Answer: Check attachment
Explanation:
Note that the beginning of the year equity was calculated as:
= 109500 - 46943
= 62557
Ending of the year equity was calculated as:
= 169000 - 68445
= 100555
Check attachment for further analysis
Related Questions
The president of the Super Sip Soda Corporation asks you, as the company economist, to forecast changes in consumer root beer purchases associated with a proposed price change. You conduct a survey and find that if the price of a six-pack increases from $8.50 to $10.50, the quantity demanded will decrease from 2,500 units to 2,350 units a month
Answers
Answer:
the price elasticity of demand (midpoint formula) = % change in quantity demanded / % change in price = {(2,350 - 2,500) / [(2,350 + 2,500)/2]} / {(10.50 - 8.50) / [(10.50 + 8.50)/2]} = (-150 / 2,425) / (2 / 9.50) = -0.0619 / 0.2105 = -0.294 or |0.294| in absolute terms, price inelastic
this means that for every 1% that price increases, total quantity demanded will decrease by only 0.294%.
You can increase total revenue by increasing the price of beer:
previous revenue = $8.50 x 2,500 = $21,250
new revenue = $10.50 x 2,350 = $24,675
It is actually a very good idea to go ahead and increase the price.
Consider two neighboring island countries called Euphoria and Bellissima. They each have 4 million labor hours available per week that they can use to produce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor.Country Jeans Corn (Pairs per hour of labor) (Bushels per hour of labor)Euphoria 5 20Bellissima 8 16Initially, suppose Bellissima uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce corn, while Euphoria uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce corn. Consequently, Euphoria produces 15 million pairs of jeans and 20 million bushels of corn, and Bellissima produces 8 million pairs of jeans and 48 million bushels of corn. Assume there are no other countries willing to trade goods, so in the absence of trade between these two countries, each country consumes the amount of jeans and corn it produces.Euphoria’s opportunity cost of producing 1 pair of jeans is of corn, and Bellissima's opportunity cost of producing 1 pair of jeans is of corn. Therefore, has a comparative advantage in the production of jeans, and has a comparative advantage in the production of corn.Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will producemillion pairs per week, and the country that produces corn will producemillion bushels per week.In the following table, enter each country's production decision on the third row of the table (labeled "Production"). Euphoria Bellissima Jeans Corn Jeans Corn (Millions of pairs) (Millions of bushels) (Millions of pairs) (Millions of bushels)Without TradeProduction 15 20 8 48Consumption 15 20 8 48With TradeProduction Imports/Exports Consumption Gains from TradeIncrease in Consumption Suppose the country that produces jeans trades 18 million pairs of jeans to the other country in exchange for 54 million bushels of corn.In the previous table, use the dropdown menus across the row labeled "Imports/Exports" to select the amount of each good that each country imports and exports. Then enter each country’s final consumption of each good on the line labeled "Consumption."When the two countries did not specialize, the total production of jeans was 23 million pairs per week, and the total production of corn was 68 million bushels per week. Because of specialization, the total production of jeans has increased bymillion pairs per week, and the total production of corn has increased bymillion bushels per week.Because the two countries produce more jeans and more corn under specialization, each country is able to gain from trade.Calculate the gains from trade—that is, the amount by which each country has increased its consumption of each good relative to the first row of the previous table. Enter this difference in the boxes across the last row (labeled "Increase in Consumption").
Answers
Answer:
Country Jeans Corn
Euphoria 5 20 (15 + 20)
Bellissima 8 16 (8 + 48)
Bellisima's opportunity cost:
Production of corn per million hours of labor = 8 / 16 = 0.5 pairs of jeans Production of jeans per million hours of labor = 16 / 8 = 2 bushels of cornEuphoria's opportunity cost:
Production of corn per million hours of labor = 5 / 20 = 0.25 pairs of jeans Production of jeans per million hours of labor = 20 / 5 = 4 bushels of cornEuphoria has a comparative advantage int he production of corn while Bellisima has a comparative advantage in the production of jeans.
If both countries specialize:
Euphoria will produce 80 million bushels of corn. Bellisima will produce 32 million pairs of jeans.Total production of corn has increased by 12 million bushels.
Total production of jeans has increased by 9 million pairs.
Assuming that Bellisima trades 18 million pairs of jeans and Euphoria exchanges 54 million bushels of corn, then:
Euphoria's consumption of jeans will increase by 3 million pairs, while their consumption of corn will increase by 6 million bushels. Bellisima's consumption of jeans will increase by 10 million pairs, while their consumption of corn will increase by 6 million bushels.The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year.
Manufacturing Overhead
(a) 488,448 (b) 407,040
Bal. 81,408
Work in Process
Bal. 9,960 (c) 758,000
302,000
91,000
(b) 407,040
Bal. 52,000
Finished Goods
Bal. 38,000 (d) 664,000
(c) 758,000
Bal. 132,000
Cost of Goods Sold
(d) 664,000
The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows:
Work in Process, ending $ 24,960
Finished Goods, ending 63,360
Cost of Goods Sold 318,720
Overhead applied $ 407,040
For example, of the $52,000 ending balance in work in process, $24,960 was overhead that had been applied during the year.
Required:
1. Identify reasons for entries (a) through (d).
2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.
3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold.
Prepare the necessary journal entry.
Answers
Answer:
1.
(a) is the Actual Manufacturing Overhead Expense incurred for the year.
(b) is the Manufacturing overhead applied to Work in Process for the year.
(c) is the Cost of goods manufactured for the year.
(d) is the Cost of goods sold for the year.
2. Journal Entry:
Debit Cost of Goods Sold $81,408
Credit Manufacturing Overhead $81,408
To close the underapplied overhead to cost of goods sold.
3. Journal Entry:
Debit Work in Process $4,992
Finished Goods $12,672
Cost of goods sold $63,744
Credit Manufacturing Overhead $81,408
To close the underapplied overhead to the 3 accounts.
Explanation:
a) Data and Calculations:
1. T-accounts:
Manufacturing Overhead
Debit Credit
a) 488,448 (b) 407,040
Bal. 81,408
Work in Process
Debit Credit
Bal. 9,960 (c) 758,000
302,000
91,000
(b) 407,040
Bal. 52,000
Finished Goods
Debit Credit
Bal. 38,000 (d) 664,000
(c) 758,000
Bal. 132,000
Cost of Goods Sold
Debit Credit
(d) 664,000
2. Distribution of overhead applied to production:
Work in Process, ending $ 24,960
Finished Goods, ending 63,360
Cost of Goods Sold 318,720
Overhead applied $ 407,040
3. Allocation of Underapplied:
Work in Process, ending $4,992 (24,960/407,040 * 81,408)
Finished Goods, ending 12,672 (63,360/407,040 * 81,408)
Cost of Goods Sold 63,744 (318,720/407,040 * 81,408)
4. The Underapplied overhead is $81,408. This figure is stated as the balance on the Manufacturing overhead account. It means that the applied overhead is less than the actual overhead incurred by $81,408.
Lemony Company made sales of $38,000 million during 2018. Cost of goods sold for the year totaled $16,340 million. At the end of 2017, Lemony’s inventory stood at $1,800 million, and Lemony ended 2018 with inventory of $2,000 million. Compute Lemony’s gross profit percentage and rate of inventory turnover for 2018.Begin by computing Lemony’s gross profit percentage for 2018.
Answers
Answer:
Gross profit = 57%
Inventory turnover = 8.60 Times
Explanation:
The gross profit percentage can be calculated by dividing the gross profit by sales. Inventory turnover can be calculated by dividing the cost of goods sold by the average inventory, in this case average inventory is not given in the question. Average inventory can be calculated by dividing the sum of opening and closing inventory with 2.
Gross profit = (Sales - Cost of goods sold) / Sales x 100
Gross profit = (38,000 - 16,340) /38000 x 100%
Gross profit = 21,660/38,000 x 100
Gross profit = 57%
Inventory turnover = Cost of goods sold / Average inventory
Inventory turnover = 16340/1900
Inventory turnover = 8.60 Times
Average inventory = (1800 + 2000) /2
Average inventory = 1900 Million
The following selected accounts appear in the adjusted trial balance for Deane Company.Indicate the financial statement on which each account would be reported.Account (a) Accumulated Depreciation. (b) Depreciation Expense. (c) Retained Earnings (beginning). (d) Dividends. (e) Service Revenue. (f) Supplies. (g) Accounts Payable. Financial Statements:1. Balance Sheet2. Income Statement3. Retained Earnings Statement
Answers
Answer:
Accounts Financial Statements
(a) Accumulated Depreciation Balance sheet
(b) Depreciation Expense Income statement
(c) Retained Earnings (beginning) Retained earnings statement
(d) Dividends Retained earnings statement
(e) Service Revenue Income statement
(f) Supplies Balance sheet
(g)Accounts Payable Balance sheet
On June 1, 2017, Pharoah Company was started with an initial investment in the company of $22,350 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2017, and the revenues and expenses for the month of June, its first month of operations:
Cash $5,010 Notes payable $12,820
Accounts receivable 4,290 Accounts payable 790
Service revenue 7,910 Supplies expense 1,030
Supplies 2,370 Maintenance and repairs expense 630
Advertising expense 400 Utilities expense 270
Equipment 26,410 Salaries and wages expense 1,810
Common stock 22,350
In June, the company issued no additional stock but paid dividends of $1,650.
Required:
Prepare an income statement for the month of June.
Answers
Answer:
Pharaoh Company
Income statement
For the year ended June 30, 2017
Revenue & Gains Amount
Service Revenue $7,910
Total revenue & gains (A) $7,910
Expense and losses:
Salaries and wages expense $1,810
Advertising expense $400
Supplies expense $2,370
Utilities expense $270
Maintenance and repair expense $630
Total expense (B) $5,480
Net Income (A - B) $2,430
The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement you notice several errors.
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2018
Assets
Cash $ 74,000
Accounts receivable 131,000
Inventories 72,000
Machinery (net) 137,000
Franchise (net) 47,000
Total assets $ 461,000
Liabilities and Shareholders’ Equity
Accounts payable $ 84,000
Allowance for uncollectible accounts22,000
Note payable 89,000
Bonds payable 127,000
Shareholders’ equity 139,000
Total liabilities and shareholders’ equity $
461,000
Additional information:
Cash includes a $37,000 restricted amount to be used for repayment of the bonds payable in 2022.
The cost of the machinery is $224,000.
Accounts receivable includes a $37,000 note receivable from a customer due in 2021.
The note payable includes accrued interest of $22,000. Principal and interest are both due on February 1, 2019.
The company began operations in 2013. Income less dividends since inception of the company totals $52,000.
67,000 shares of no par common stock were issued in 2013. 100,000 shares are authorized.
Required:
Prepare a corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)
Answers
Answer:
Los Gatos Corporation
Corrected, Classified Balance Sheet
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2018
Assets
Current Assets:
Cash $ 37,000
Restricted Cash 37,000
Accounts receivable 94,000
Allowance for
uncollectibles 22,000 72,000
Inventories 72,000
Total current assets $218,000
Long-term Assets:
Note receivable 37,000
Machinery 224,000
Acc. Depreciation 87,000 137,000
Franchise (net) 47,000
Total long-term assets $221,000
Total assets $ 439,000
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable $ 84,000
Accrued interest 22,000
Note payable 67,000
Total current liabilities $173,000
Long-term liabilities
Bonds payable 127,000
Shareholders’ equity
Common Stock, 100,000 authorized
67,000 shares of no par issued 87,000
Retained earnings 52,000 139,000
Total liabilities and shareholders’ equity $ 439,000
Explanation:
a) Data and Calculations:
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2018
Assets
Cash $ 74,000
Accounts receivable 131,000
Inventories 72,000
Machinery (net) 137,000
Franchise (net) 47,000
Total assets $ 461,000
Liabilities and Shareholders’ Equity
Accounts payable $ 84,000
Allowance for
uncollectibles 22,000
Note payable 89,000
Bonds payable 127,000
Shareholders’ equity 139,000
Total liabilities and shareholders’ equity $ 461,000
Adjustment based on additional information:
Cash $ 74,000
Bonds Payable restricted 37,000
Cash balance $37,000
Machinery (net) 137,000
Cost of machinery 224,000
Acc. Depreciation 87,000
Accounts receivable 131,000
Long-term Note receivable 37,000
Balance 94,000
Short-term liabilities:
Note payable 89,000
Accrued interest 22,000
Note payable 67,000
Retained earnings = $52,000
Shareholders’ equity 139,000
Retained earnings 52,000
Balance in equity 87,000
Taco Bell processes on average 1,500 customers per day (15 hours). On average there are 75 customers in the restaurant (waiting to place the order, waiting for the order to arrive, eating, etc.). How long does an average customer spend at Taco Bell and what is the average customer turnover
Answers
Answer:
1.333 customers per hour
Explanation:
The computation of average customer turnover is shown below:-
number of customers processed per hour = 1,500 ÷ 15
= 100 customers per hour
Now,
Average time spend by the customer is given as the ratio I/R = 75 ÷ 100
= 0.75 hours
or
= 45 minutes
Customer turnover = 100 ÷ 75
= 4/3
or
= 1.333 customers per hour
Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December 31, 2015, the accounting records for the most popular item in inventory showed the following;Transactions Units Unit CostBeginning Inventory Jan 1, 2015 400 $3.00Transactions during 2015:a) Purchase, Jan 30 300 $3.40b) Purchase, May 1 460 $4.00c) Sale ($5 each) (160)d) Sale ($5 each) (700)Compute the amount of goods available for sale.Goods available for sale _____________Compute the amount of ending inventory and cost of goods sold at December 31 under Average cost, First-in, first-out, Last-in, first-out, Specific identification of the inventory costing methods. For Specific identification, assume that the first sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)Average Cost First-In, First Out Last-In, First-Out Specific IdentificationEnding Inventory Cost of goods sold
Answers
Answer:
Goods available for sale = 300 units
ending inventory under:
FIFO = $1,200LIFO = $900weighted average = $1,050specific identification = $981.60COGS under:
FIFO = $2,860LIFO = $3,160weighted average = $3,010specific identification = $3,078.40Explanation:
Transactions Units Unit Cost Total
Beginning Inventory Jan 1, 2015 400 $3.00 $1,200
a) Purchase, Jan 30 300 $3.40 $1,020
b) Purchase, May 1 460 $4.00 $1,840
c) Sale (160) $5.00 ($800)
d) Sale (700) $5.00 ($3,500)
total 300 $4,060
ending inventory under:
FIFO = 300 x $4 = $1,200
LIFO = 300 x $3 = $900
weighted average = ($4,060 / 1,160) x 300 = $1,050
specific identification = $4,060 - $3,078.40 = $981.60
COGS under:
FIFO = 300 x $4 = $4,060 - $1,200 = $2,860
LIFO = 300 x $3 = $4,060 - $900 = $3,160
weighted average = $4,060 - $1,050 = $3,010
specific identification = (160 x 2/5 x $3) + (160 x 3/5 x $3.40) + (240 x $3) + (460 x $4) = $3,078.40
Why is investing in gold beneficial?
A. It is easy to mine.
B. It is considered a stable investment
C. Gold is more expensive than stocks.
D. The value of hold is subject to inflation.
Answers
Answer:
B
Explanation:
The value of gold is usually very consistent especially when accounting for inflation
1. What are the different types of economic measurements used to analyze most
economies?
Answers
Answer:
Government borrowing/national debt.
Real disposable incomes.
Income inequality (Gini coefficient)
Labour productivity.
Investment levels.
Exchange rate.
Misery index (inflation rate + Unemployment rate)
Poverty levels.
Explanation:
hope this helps :)
and i did it on a test and got it right! pls make me Brainiest!!!!
The number of internal disk drives (in millions) made at a plant in Taiwan during the past 5 years follows:______. Year Disk Drives 1 1402 160 3 1904 200 5 210a) Using simple linear regression LOADING..., the forecast for the number of disk drives to be made next year = 243.6 disk drives (round your response to one decimal place). b) The mean squared error (MSE) when using simple linear regression = 4.5 (round your response to one decimal place). c) The mean absolute percentage error (MAPE) when using simple linear regression = 1.04% (round your response to one decimal place).
Answers
Full question attached
Answer and Explanation:
Please see answer and explanation attached
What businesses have the biggest contribution to socioeconomic development of the philippines
Answers
Answer:
Philippine chemicals industry.
Explanation:
Philippine chemical industry strives to turn the raw resources of the country into a wide variety of higher-demand goods that serve the best consumer benefit for domestic and global business needs. It can achieve sustainable growth by constantly developing goods and processes, and thereby lead to the employment generation and socio-economic prosperity of the country.
when opening a bank account it asks you for a proof of address, can I put an address as the proof one but use a different address to actually get it shipped to a hotel? ...outta town
Answers
A new aluminum part production facility opened for business, selling products for $9,000 each. The rent on the facility building is $5,000/month and additional utilities cost $15,000/month. The production line is open 24 hours every day of the month (calculate with 30 days per month). Each day has three 8-hour shifts with 10 workers present in each of these snifts. All workers get paid $30/hour. The materials used for your product cost $2,500/product. Your accountant advises you that your corporate taxes are estimated to be $500/product.
Calculate, how many products you must make and sell in one month to make a $1,000,000 profit per month.
Answers
Answer:
Break-even point in units= 172 units
Explanation:
Fixed costs= 5,000 + 15,000= $20,000
Direct labor cost= [(10*8)*3]*30= $7,200
Tax= $500 per unit
Direct material= $2,500 per unit
To calculate the number of units to be sold, we need to use the following formula:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (20,000 + 7,200 + 1,000,000) / (9,000 - 500 - 2,500)
Break-even point in units= 172 units
Prove:
Sales= 172*9,000= 1,548,000
Variable costs= 172*3,000= (516,000)
Contribution margin= 1,032,000
Fixed costs= 27,200
Net income= 1,004,800
The PE ratio is useful because it measures: A. how much an investor is willing to pay for $1 of earnings. B. how much a stock is expected to earn. C. how much earnings are going to grow.
Answers
Answer:
A. how much an investor is willing to pay for $1 of earnings.
Explanation:
The formula used to calculate the price earnings ratio (PE) = market price of the stock / earnings per stock. E.g. a company that earns $2 per stock and its stock is worth $50 has a PE ratio = $50 / $2 = 25.
The higher the PE ratio, the higher the expected growth rate. Earnings of a company that has a PE ratio of 25 should grow at a much higher rate than a company with a PE of 10.
A very high PE ratio can mean that:
the company's growth rate is very highthe company's stock is overvaluedInvestors generally compare a company's PE ratio against the industry's average, e.g. the average PE ratio of companies that list in the S&P 500 is between 13-15.
Following are income statements for Hossa Corporation for 20X1 and 20x2. Percentage of sales amounts are also shown for each operating expense item. Hossa's income tax rate was 22% in 20X1 and 24% in 20X2
2011 2012
($ in millions) ($ in millions) of sales % ($ in millions) of sales % Sales
Cost of sales $5,500.0 $6,500.0
Other operating expenses (2,475.0) 45% (3,055.0) 47%
Operating income (825.0) 15% (1,040.0) 16%
Provision for income taxes 2,200.0 2,405,0
Net income 484.0 (577.2)
Income tax rate $1,716.0 $2,827.8
22% 24%
Hossa’s management was pleased that 20X2 net income was up 6.5% from the prior year. Although you are also happy with the increase in net income, you are not so sure the news is all positive. You have modeled Hossa’s income as follows:
NET INCOME = SALES × (1 − COGS% − OPEX%) × (1 − TAX RATE)
Using this model, net income in 20X1 is computed as $5,500 × (1 − 45% − 15%) × (1 − 22%) = $1,716.0. Net income in 20X2 is computed as $6,500 × (1 − 47% − 16%) × (1 − 24%) = $1,827.8.
Required:
Prepare a cause-of-change analysis to show the extent to which each of the following items contributed to the $111.8 million increase in Hossa’s net income from 20X1 to 20X2: (Do not round intermediate calculations.
Increase in sales (SALES)
Increase in cost of sales as a percent of sales (COGS%)
Increase in other operating expenses as a percent of sales (OPEX%)
Increase in income tax rate (TAX RATE)
Answers
Please find full question attached Answer and Explanation:
Please find full answer and explanation attached
We have done a change analysis using data from Hossa's net income statement
From the analysis we can observe that only increase in sales brings a positive effect and therefore the result of increase in net income
On January 2, Chaz transfers cash of $143,400 to a newly formed corporation for 100% of the stock. In its initial year, the corporation has net income of $35,850. The income is credited to its earnings and profits account. The corporation distributes $10,755 to Chaz.
A. How do Chaz and the corporation treat the $10,755 distribution?
B. Assume instead that Chaz transfers to the corporation cash of $71,700 for stock and cash of $71,700 for a note of the same amount. The note is payable in equal annual installments of $7,170 and bears interest at the rate of 6%. No distributions are made during the year to Chaz. However, at the end of the year, the corporation pays an amount to meet the loan obligation(i.e., the annual $7,170 principal payment plus the interest due). Determine the total amount of the payment and its tax treatment to Chaz and the corporation.
The corporate payment to Chaz totals $_____. Chaz has interest of $______ and a note repayment of $____ of which $____is taxable to Chaz. The corporation has a deduction of $____$ of which $ is taxable to Chaz. The corporation has a deduction of $.
Answers
Answer: See explanation
Explanation:
A. Chaz has a taxable dividend of $10,755 and the corporation has a deduction of $0.
It should be noted that the dividend will be taxable once it gets to the receivers hand while the corporation will have a deduction of 0
B. The corporate payment to Chaz totals $11472. Chaz has interest of $4302 and a note repayment of $7170 of which $4302 is taxable to Chaz. The corporation has a deduction of $4302
Notes:-
Interest = $71700 × 6%
= $71700 × 0.06
= $4302
Total repayment:
= First installment + Interest
= $7170 + $4302
= $11472
Northstar Company uses ABC to account for its chrome wheel manufacturing process.
Company managers have identified four manufacturing activities that incur manufacturing overhead costs: materials handling, machine setup, insertion of parts and finishing.
The budgeted activity costs for the upcoming year and their allocation bases are as follows:
Activity Total Budgeted Allocation Base
Manufacturing
Overhead Cost
Materials handling $12,000 Number of parts
Machine setup 3,400 Number of setups
Insertion of parts 48,000 Number of parts
Finishing 80,000 Finishing direct labor hours
Total $143,400
Northstar expects to produce 1,000 chrome wheels during the year.
The wheels are expected to use 3,000 parts, require 10 setups and consume 2,000 hours of finishing time.
Job 420 used 150 parts, required 2 setups and consumed 100 finishing hours.
Job 510 used 500 parts, required 4 setups and consumed 310 finishing hours.
Required:
1. Compute the cost allocation rate for each activity.
2. Compute the manufacturing overhead cost that should be assigned to Job 420.
3. Compute the manufacturing overhead cost that should be assigned to Job 510.
Answers
Answer:
Instructions are below.
Explanation:
First, we need to calculate the predetermined overhead rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Materials handling= 12,000/3,000= $4 per part
Machine setup= 3,400/10= $340 per setup
Insertion of parts= 48,000/3,000= $16 per part
Finishing= 80,000/2,000= $40 per finishing direct labor hour
Job 420 used 150 parts, required 2 setups and consumed 100 finishing hours.
Job 510 used 500 parts, required 4 setups and consumed 310 finishing hours.
To allocate costs, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Job 420:
Materials handling= 4*150= $600
Machine setup= 340*2= $680
Insertion of parts= 16*150= $2,400
Finishing= 40*100= $4,000
Total allocated cost= $7,680
Job 510:
Materials handling= 4*500= $2,000
Machine setup= 340*4= $1,360
Insertion of parts= 16*500= $8,000
Finishing= 40*310= $12,400
Total allocated cost= $23,760
Considering all of the factors listed in the preceding SWOT analysis question, which of the following strategies would make the most sense for the Cubs in the upcoming season? A. Assume that as the players age, they will continue to produce at their current levels. B. Keep the Cubs intact and do not hire any new players because the team was good enough to win the World Series. C. Sign a free-agent outfielder to bolster the current roster and sign the current pitchers to long-term contracts. D. Trade the Cubs’ current pitchers to another team for minor-league prospects who aren’t ready for the major league.
Answers
Answer:
b. Sign a free-agent outfielder to bolster the current roster and sign the young pitchers to long-term contract.
Explanation:
Sign a free-agent outfielder to bolster the current roster and sign the young pitchers to long-term contract. Keeping the existing strength will provide a competitive advantage to the firm. This strategy will help to add strength to the existing team as well as prepare a long term team.
A landowner has just acquired 370 acres of new land, and is using the Cost-Benefit Principle to decide between three alternative uses for the land: growing corn, growing soybeans, or renting it to a local farmer. If corn is planted, the landowner expects to earn $980 per acre, while soybeans pay only $575 per acre. Renting the land earns the landowner $400 per acre. In addition, the cost of growing and harvesting corn is estimated to be $203,500, while only $88,800 for soybeans. We can assume there are no costs associated with renting the land.
Required:
a. For this landowner, the opportunity, or implicit cost of growing corn is $___________ from____________
b. The opportunity, or implicit cost of growing soybeans is $___________ from ___________
c. The landowner maximizes economic surplus by ____________
Answers
Answer:
See explanation below.
Explanation:
a. Opportunity cost is a term in economic, which is used to express cost, in terms of forgone alternatives.
For this landowner , the opportunity , or implicit cost of growing corn is $148,000 [$400 per acre × 370 acres] from renting the land.
b. The opportunity cost or implicit cost of growing soya beans is $148,000 [$400 × 370 acres] from renting the land.
c. The landowner maximizes economic surplus by renting the land.
ASSUMPTIONS
Sales Price per Unit $49.99
Gross Margin = (Revenues - cost of goods sold) / Revenues 25%
Depreciation & amortization as a % of capital expenditures 25%
Tax Rate 35%
Year 2014 2015 2016 2017 2018
Units Sold 200,000
Growth Rate Of Unit Sold 5% 13% 15% 9%
Operating Expenses as % of Sales (2014 Only) 10%
Operating Expense Growth Rate 4% 4% 4% 4%
Capital Expenditures $1,750,000 $1,775,000 $1,800,000 $1,825,000 $1,850,000
Interest Expense $0 $10,000 $10,000 $10,000 $12,500
Income Statement
Year 2014 2015 2016 2017 2018
Units Sold
Price per Unit
Revenue
Cost of goods sold
Gross Profit (defined as Revenue - COGS)
Operating Expenses
Earnings Before Interest Taxes Depreciation And Amortization (Ebitda)
EBITDA / Revenue (%)
Depreciation and Amortization
Operating Income (defined as EBITDA - Depreciation and Amortization)
Interest Expense
Pre-tax Net Income (Operating Income - Interest Expense)
Income Taxes
Net Income (Pret-tax Net Income - Income Taxes)
If Depreciation & Amortization as a % of Capital Expenditures is changed to 30%, what is Net Income in 2017?
Answers
Answer:
Income Statement
Year 2014 2015 2016 2017 2018
Units Sold 200,000 210,000 237,300 272,895 297,456
Price per Unit $49.99 $49.99 $49.99 $49.99 $49.99
Revenue $9,998,000 $10,497,900 $11,862,627 $13,642,021 $14,869,825
COGS $7,498,500 $7,873,425 $8,896,970 $10,231,516 $11,152,369
G/Profit $2,499,500 $2,624,475 $2,965,657 $3,410,505 $3,717,456
Operating
Expenses 999,800 1,039,792 1,081,384 1,124,639 1,169,624
EBITDA $1,499,700 $1,584,683 $1,884,273 $2,285,866 $2,547,832
EBITDA / Revenue
(%) 15% 15.1% 15.9% 16.8% 17.1%
Depreciation and Amortization
$437,500 $443,750 $450,000 $456,250 $462,500
Operating
Income $1,062,200 $1,140,933 $1,434,273 $1,829,616 $2,085,332
Interest
Expense $0 $10,000 $10,000 $10,000 $12,500
Pre-tax $1,062,200 $1,130,933 $1,424,273 $1,819,616 $2,072,832
Net Income (Operating Income - Interest Expense)
Income (35%)
Taxes $371,770 $395,827 $498,495 $636,866 $725,491
Net $690,430 $735,106 $925,778 $1,182,750 $1,347,341
Income (Pret-tax Net Income - Income Taxes)
Explanation:
a) Data and Calculations:
Sales Price per Unit $49.99
Gross Margin = (Revenues - cost of goods sold) / Revenues 25%
Depreciation & amortization as a % of capital expenditures 25%
Tax Rate 35%
Year 2014 2015 2016 2017 2018
Units Sold 200,000 210,000 237,300 272,895 297,456
Growth Rate
Of Unit Sold 5% 13% 15% 9%
Sales
Revenue $9,998,000 $10,497,900 $11,862,627 $13,642,021 $14,869,825
COGS $7,498,500 $7,873,425 $8,896,970 $10,231,516 $11,152,369
Operating
Expenses 999,800 1,039,792 1,081,384 1,124,639 1,169,624
as % of Sales (2014 Only) 10%
Operating Expense Growth Rate 4% 4% 4% 4%
Capital
Expenditures $1,750,000 $1,775,000 $1,800,000 $1,825,000 $1,850,000
Interest Expense $0 $10,000 $10,000 $10,000 $12,500
Depreciation $437,500 $443,750 $450,000 $456,250 $462,500
G/Profit = (Gross Profit defined as Revenue - COGS)
COGS = Cost of Goods Sold
According to the video, which of these skills and abilities will help a worker succeed in this career cluster? Check all
that apply
being alert
being a quick learner
having good
communication skills
being assertive
being flexible
being confident
Answers
Answer:
B, C, E
Explanation:
Answer:
B. being a quick learner
C. having good communication skills
E. being flexible
Explanation:
During September 20Y2, Lisa managed the tennis courts and entered into the following transactions:
9/1 Opened a business account by contributing $950.
9/1 Paid $300 for tennis supplies (practice tennis balls, etc.).
9/1 Paid $275 for the rental of video equipment to be used in offering lessons during September.
9/1 Arranged for the rental of two ball machines during September for $250. Paid $100 in advance, with the remaining $150 to be paid October 1.
9/30 Received $1,750 for lessons given during September.
9/30 Received $600 in fees from the use of the ball machines during September.
9/30 Paid $800 for salaries of part-time employees who answered the telephone and took reservations while Lisa was giving lessons.
9/30 Paid $290 for miscellaneous expenses.
9/30 Received $1,300 (325 per week) from the club for managing the tennis courts during September.
9/30 Determined that the cost of supplies on hand at the end of the month totaled $180; therefore, the cost of supplies used was $120.
9/30 Withdrew $400 (similar to Dividend) for personal use on September 30.
Journalize entries for above transactions.
Answers
Answer:
9/1 Opened a business account by contributing $950.
Dr Cash 950
Cr Lisa, capital, 950
9/1 Paid $300 for tennis supplies (practice tennis balls, etc.).
Dr Supplies 300
Cr Cash 300
9/1 Paid $275 for the rental of video equipment to be used in offering lessons during September.
Dr Rent expense 275
Cr Cash 275
9/1 Arranged for the rental of two ball machines during September for $250. Paid $100 in advance, with the remaining $150 to be paid October 1.
Dr Rental expense 250
Cr Cash 100
Cr Accounts receivable 150
9/30 Received $1,750 for lessons given during September.
Dr Cash 1,750
Cr Fees earned 1,750
9/30 Received $600 in fees from the use of the ball machines during September.
Dr Cash 600
Cr Fees earned 600
9/30 Paid $800 for salaries of part-time employees who answered the telephone and took reservations while Lisa was giving lessons.
Dr Wages expense 800
Cr Cash 800
9/30 Paid $290 for miscellaneous expenses.
Dr Miscellaneous expenses 290
Cr Cash 290
9/30 Received $1,300 (325 per week) from the club for managing the tennis courts during September.
Dr Cash 1,300
Cr Fees earned 1,300
9/30 Determined that the cost of supplies on hand at the end of the month totaled $180; therefore, the cost of supplies used was $120.
Dr Supplies expense 120
Cr Supplies 120
9/30 Withdrew $400 (similar to Dividend) for personal use on September 30.
Dr Lisa, drawings 400
Cr cash 400
Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of roller skates is 1,000 units, while 1 skates require 1.5 direct labor hours per unit, while skateboards require 1:25 direct labor hours per unit. The total estimated overhead for the period used an activity-based costing system, it would have the following three activity cost pools: Expected activity Estimated overhead cost $6,550 $16,000 $91450 Activity cost pool Roller skates Skateboards Total Setup costs 345 320 665 Engineering costs Maintenance costs 490 630 1,120 2,175 2,178 4,353 The overhead cost per skateboard using an activity-based costing system would be closest to (Round all answers to two decimal places.)
A. $45.14
B. $57.91
C. $114.72
D. $33.47
Answers
Answer:
D. $33.47
Explanation:
The computation of overhead cost per skateboard using an activity-based costing system is shown below:-
Total Expected Activity
Activity pool cost Overheads Activity Rate
Setup cost $6,550 665 9.85
Engineering cost $16,000 1,120 14.29
maintenance cost $91,450 4,353 21.01
Activity pool cost Rate Driver Overhead cost
Setup cost 9.85 320 3,152
Engineering cost 14.29 630 9,002.7
maintenance cost 21.01 2,178 45,759.78
Total Overheads cost 57,914.48
Number of units 1,730
Overhead cost per unit $33.48
Therefore for computing the overhead cost per unit we simply divide the total overhead cost by number of units.
In each of the following cases, determine how much GDP and each of its components is affected, if at all:
A. Debbie spends $200 to buy her husband dinner at the finest restaurant in Boston.
B. Sarah spends $1800 on a new laptop to use in her publishing business. The laptop was built in China.
C. Jane spends $1200 on a computer to use in her editing business. She got last year’s model on sale for a great price from a local manufacturer.
D. General Motors builds $500 million worth of cars, but consumers only buy $470 million worth of them.
Computing GDP: 2018 (base year) 2019 2020 P Q P Q P QGood A $30 $900 $31 $1000 $36 $1050Good B $100 $192 $102 $200 $100 $205
2. Use the above data to solve these problems:A. Compute nominal GDP in 2018.B. Compute real GDP in 2019.C. Compute the GDP deflator in 2020.
Answers
Answer:
Follows are the solution to this question:
Explanation:
In option A, Its increase in consumption and GDP is $200.
In option B, Investment decisions increase about $1800, net exports drop by $1800 and therefore GDP should remain constant.
In option C, GDP or investment wasn’t increasing only at present because estimates were produced last year.
In option D, Market growth is $470 million, options trading is rising by $30 million but GDP is growing by $500 million.
GDP is just a misleading indicator, it does not take into account recreation, environmental protection, education and health rates, non-market behaviors, changes in wealth disparity, increases of variety or rises in innovation. HDI's social progress Index could be used to highlight a need for people or their ability to assess national growth as the supreme requirement.
Prepare the necessary adjusting entries at December 31, 2019 for the Washington Apple Company. Assume that no adjustments were made during the year. Use the journal below.
a. On October 1, 2019 the company purchased for cash a one year fire policy for $4000.
b. The company had depreciation on equipment of $12,500 for the year.
c. On December 28, 2019 the company received $4000 cash for products. The entire $4000 was counted as revenues for the year when the transaction was made. One half of the product was shipped on December 30, 2019 and the other half won't be produced and shipped until mid-January.
Answers
Answer:
Entries are given
Explanation:
Fire policy will be debited as it is an asset for the company. Depreciation is always debited as it is a non-cash expense and accumulated depreciation will be credited related to the equipment depreciated. Revenue will be recognized to the extent of value the company has provided as a service or a product.
DEBIT CREDIT
Fire policy $4,000
cash $4,000
Depreciation expense $12,500
Accumulated depreciation (equipment) $12,500
Cash $4.000
Revenue $2,000
Unearned revenue $2.000
What is a green thumb?
An ability to care for animals
An ability to climb trees
An ability to care for plants
An interest in the environment
Please help
Answers
Answer:
It is the ability to care for plants.
Explanation:
At December 31, 2019, Concord Corporation had the following stock outstanding.
10% cumulative preferred stock, $100 par, 107,956 shares $10,795,600
Common stock, $5 par, 4,068,220 shares 20,341,100
During 2020, Concord did not issue any additional common stock. The following also occurred during 2020.
Income from continuing operations before taxes $22,234,700
Discontinued operations (loss before taxes) $3,457,200
Preferred dividends declared $1,079,560
Common dividends declared $2,404,100
Effective tax rate 35%
Compute earnings per share data as it should appear in the 2020 income statement of Concord Corporation.
Answers
Answer:
Concord Corporation
Income Statement
31-Dec-20
Particulars Amount
Net Income:
Income from continuing operation $22,234,700
before income tax
Income Tax (35%) $7,782,145
Income from continuing operation $14,452,555
Discontinued operations
Losses before taxes $3,457,200.00
Less: Income tax (35%) $1,210,020.00 $2,247,180
Net Income $12,205,375
Preferred dividend declared $1,079,560
Weighted average common share outstanding 4,068,220
Earning per share = Income from continuing operation - Discontinued operation, net of tax
Where Income from continuing operation = ($14,452,555 - $1,079,560) / 4068220 = $3.29. Discontinued operation, net of tax = ($2,247,180/4068220) = -$0.55
Earning per share = $3.29 - $0.55
Earning per share = $2.74
Crane Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period:
Estimated annual overhead cost $1700000
Actual annual overhead cost $1675000
Estimated machine hours 400000
Actual machine hours 390000
$1657500 applied and $17500 overapplied
$1657500 applied and $17500 underapplied
$1675000 applied and neither under-nor overapplied
$1700000 applied and $17500 overapplied
Answers
Answer:
$1657500 applied and $17500 overapplied
Explanation:
The computation of overhead applied and the under- or overapplication of overhead for the period is shown below:-
Predetermined overhead rate = Estimated annual overhead ÷ Estimated machine hours
=($1,700,000 ÷ 400,000)
= $4.25 per machine hours
Overhead applied = Predetermined overhead rate × Actual machine hours
= $4.25 × 390,000
= $1,657,500
The overhead applied is lower than the actual overhead cost;
overhead underapplied = $1,675,000 - $1,657,500
= $17,500