Answer:
Dec 31
1.
Insurance expense 770 Dr
Prepaid Insurance 770 Cr
2.
Rent Expense 4880 Dr
Prepaid Rent 4880 Cr
3.
Unearned Service Revenue 1440 Dr
Service Revenue 1440 Cr
4.
Cleaning Expense 1150 Dr
Prepaid Cleaning 1150 Cr
5.
Unearned Service Revenue 2250 Dr
Service Revenue 2250 Cr
Explanation:
1.
The insurance policy is for 1 year. The per year expense is = 1320 / 12 = 110
Till December, 7 months of insurance expense will be charged = 110 * 7 = 770
2.
The rent is paid in advance for 5 months till January. Till December, 4 months of rent has been consumed.
Rent expense will be debited by = 6100 / 5 * 4 = 4880
3.
The cash is received in advance for service providing for the 9 months from September. Till December, 4 months of service revenue would have been earned.
Service revenue will be credited by = 3240 / 9 * 4 = 1440
4.
The cash is paid for cleaning service in advance for 2 months till January next year. Till December, one month of service would have been availed so cleaning expense will be debited by $1150 and prepaid cleaning will be credited by $1150
5.
The cash is received in advance for service to be provided. Till the end of December, $2250 (2600 - 350) of service has been provided. So service revenue will be credited by $2250 and unearned service revenue will be debited by $2250
Foxy Investigative Services is an investigative services firm that is owned and operated by Shirley Vickers. On November 30, 20Y8, the end of the fiscal year, the accountant for Foxy Investigative Services prepared an end-of-period spreadsheet, a part of which follows:
Foxy Investigative Services
End-of-Period Spreadsheet
For the Year Ended November 30, 20Y8
~ Adjusted Trial Balance
Account Title ~ Dr. Cr.
~
Cash ~ 22,000
Accounts Receivable ~ 68,400
Supplies ~ 4,400
Prepaid Insurance ~ 2,500
Building ~ 433,500
Accumulated Depreciation-Building ~ 42,800
Accounts Payable ~ 11,400
Salaries Payable ~ 4,000
Unearned Rent ~ 2,000
Common Stock ~ 80,000
Retained Earnings ~ 293,400
Dividends ~ 11,700
Service Fees ~ 707,300
Rent Revenue ~ 11,700
Salaries Expense ~ 525,900
Rent Expense ~ 46,800
Supplies Expense ~ 11,000
Depreciation Expense-Building 7,600
Utilities Expense ~ 7,600
Repairs Expense ~ 3,000
Insurance Expense ~ 2,000
Miscellaneous Expense ~6,200
~ 1,152,600 1,152,600
Required:
1.
A. Prepare an income statement for the year ended November 30, 20Y8. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement. Refer to the Chart of Accounts for exact wording of account titles.
B. Prepare a statement of stockholders’ equity for the year ended November 30, 20Y8. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names.
C. Prepare a balance sheet as of November 30, 20Y8. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
2. Based upon the end-of-period spreadsheet, journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles.
3. If Retained Earnings had instead decreased $33,000 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or net loss? If required, use a minus sign to indicate a net loss.
CHART OF ACCOUNTS
Foxy Investigative Services
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Prepaid Insurance
17 Building
18 Accumulated Depreciation-Building
LIABILITIES
21 Accounts Payable
22 Salaries Payable
23 Unearned Rent
EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
REVENUE
41 Service Fees
42 Rent Revenue
EXPENSES
51 Salaries Expense
52 Rent Expense
53 Supplies Expense
54 Depreciation Expense-Building
55 Utilities Expense
56 Repairs Expense
57 Insurance Expense
59 Miscellaneous Expense
Labels
Current assets
Current liabilities
Expenses
For the Year Ended November 30, 20Y8
November 30, 20Y8
Property, plant, and equipment
Revenues
Amount Descriptions
Balances, December 1, 20Y7
Balances, November 30, 20Y8
Dividends
Net income
Net loss
Total assets
Total current assets
Total expenses
Total liabilities
Total liabilities and stockholders’ equity
Total property, plant, and equipment
Total revenues
Total stockholders’ equity
Answer:
Foxy Investigative Services
1. Foxy Investigative Services
A. Income Statement
For the Year Ended November 30, 20Y8
REVENUE
41 Service Fees $707,300
42 Rent Revenue 11,700
Total revenues $719,000
EXPENSES
51 Salaries Expense $525,900
52 Rent Expense 46,800
53 Supplies Expense 11,000
54 Depreciation Expense-Building 7,600
55 Utilities Expense 7,600
56 Repairs Expense 3,000
57 Insurance Expense 2,000
59 Miscellaneous Expense 6,200
Total expenses $610,100
Net income $ 108,900
32 Retained Earnings 293,400
33 Dividends 11,700
Balance, November 30, 20Y8 $390,600
Foxy Investigative Services
B. Statement of Shareholders' Equity
November 30, 20Y8
31 Common Stock $80,000
Net income 108,900
32 Retained Earnings 293,400
33 Dividends -11,700
Balance, November 30, 20Y8 $390,600
Total stockholders' equity $470,600
Foxy Investigative Services
C. Balance Sheet
November 30, 20Y8
ASSETS
Current assets
11 Cash $22,000
12 Accounts Receivable 68,400
13 Supplies 4,400
14 Prepaid Insurance 2,500
Total current assets $97,300
Property, plant, and equipment
17 Building 433,500
18 Accumulated Depreciation -42,800
Total property, plant, and equipment $390,700
Total assets $488,000
LIABILITIES
Current liabilities
21 Accounts Payable 11,400
22 Salaries Payable 4,000
23 Unearned Rent 2,000
Total liabilities $17,400
EQUITY
31 Common Stock 80,000
32 Retained Earnings 390,600
Total stockholders' equity $470,600
Total liabilities and stockholders' equity $488,000
2. Closing Journal Entries:
Account Title Dr. Cr.
Income Summary 11,700
Dividends 11,700
To close dividends to the income summary (Retained Earnings)
Account Title Dr. Cr.
Service Fees 707,300
Rent Revenue 11,700
Income Summary 719,000
To close revenues to the income summary.
Account Title Dr. Cr.
Income Summary $610,100
Salaries Expense $525,900
Rent Expense 46,800
Supplies Expense 11,000
Depreciation Expense-Building 7,600
Utilities Expense 7,600
Repairs Expense 3,000
Insurance Expense 2,000
Miscellaneous Expense 6,200
To close the expenses to the income summary.
3. Net Income would have remained $ 108,900. Retained Earnings, beginning balance would have been reduced by $33,000.
Explanation:
a) Data and Calculations:
Foxy Investigative Services
End-of-Period Spreadsheet
For the Year Ended November 30, 20Y8
Adjusted Trial Balance
Account Title Dr. Cr.
Cash 22,000
Accounts Receivable 68,400
Supplies 4,400
Prepaid Insurance 2,500
Building 433,500
Accumulated Depreciation-Building 42,800
Accounts Payable 11,400
Salaries Payable 4,000
Unearned Rent 2,000
Common Stock 80,000
Retained Earnings 293,400
Dividends 11,700
Service Fees 707,300
Rent Revenue 11,700
Salaries Expense 525,900
Rent Expense 46,800
Supplies Expense 11,000
Depreciation Expense-Building 7,600
Utilities Expense 7,600
Repairs Expense 3,000
Insurance Expense 2,000
Miscellaneous Expense 6,200
Totals 1,152,600 1,152,600
Tyare Corporation had the following inventory balances at the beginning and end of May:
May 1 May 30
Raw materials $35,500 $50,000
Finished Goods $85,000 $86,000
Work in Process $23,500 $18,040
During May, $68,500 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 500 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $8,050 of direct materials cost. The Corporation incurred $45,000 of actual manufacturing overhead cost during the month and applied $45,600 in manufacturing overhead cost. The raw materials purchased during May totaled:__________
Answer:
purchases= $83,000
Explanation:
Giving the following information:
May 1 May 30
Raw materials $35,500 $50,000
During May, $68,500 in raw materials (all direct materials) were drawn from inventory and used in production.
To calculate the direct material purchase, we need to use the following formula:
Direct material used= beginning inventory + purchases - ending inventory
68,500= 35,500 + purchases - 50,000
$83,000= purchases
What happened to assets, earnings, dividends, and cash flows during the financial year?
Accounting practice in the United States follows the generally accepted accounting principles (GAAP) developed by the Financial Accounting Standards Board (FASB), which is a nongovernmental, professional standards body that monitors accounting practices and evaluates controversial issues. The Securities and Exchange Commission (SEC) requires all publicly traded companies to periodically report their financial information.
A publicly held corporation must publish an annual report that contains the balance sheet, income statement, statement of cash flows, statement of stockholders’ equity, and other financial information for analysis.
The following table lists descriptions of the major financial statements and reports that a firm publishes. Identify the correct statement or report for each description.
Description
Statement or Report
Explains the changes in a company’s stockholders’ equity over the accounting year. Balance Sheet, Statement of Stockholders equity ,income statement,Statement of cashflows, anual report
Provides details about the flow of funds from operating, investing, and financing activities. statement of cashflows,balance sheet,income statement, anual report,stockholders equity
Is issued once a year by a corporation and contains basic financial statements and an analysis of past performance and future prospects. Statement of CashFlows, Balance sheet, Income Statement, Anual Report, Statment of Stockholders equity
Has three segments that when analyzed together give an idea of what the company owns and what it owes. Same drop-down choices as previous question above!
Gives details about the firm’s sales, costs, and profits for the past accounting period. Same drop-down choices as above from previosus question
Accountants focus on creating financial statements, whereas finance professionals use these statements to evaluate a firm and answer questions about its performance. Indicate which financial statement you would refer to when answering the questions in the following table:
Balance Sheet
Statement of Cash Flows
Does the firm generate enough internal funds to support anticipated investment, or does additional outside capital need to be raised?
Can the firm meet all its short-term obligations using its current assets?
The annual report is very important for investors, because the information contained in the annual report:
A: Helps investors forecast expected earnings and dividends.
B: Shows the prices at which each investor purchased the company’s stocks and bonds.
Answer:
Identification of the correct statement or report for each description:
Statement or Report
a1) Explains the changes in a company’s stockholders’ equity over the accounting year. Balance Sheet, Statement of Stockholders equity, income statement, Statement of cash flows, annual report
2) Provides details about the flow of funds from operating, investing, and financing activities. statement of cash flows, balance sheet,income statement, annual report,stockholders equity
Is issued once a year by a corporation and contains basic financial statements and an analysis of past performance and future prospects. Statement of Cash Flows, Balance sheet, Income Statement, Annual Report, Statement of Stockholders equity
Has three segments that when analyzed together give an idea of what the company owns and what it owes. Balance sheet
Gives details about the firm’s sales, costs, and profits for the past accounting period. Income Statement
b) Statements to refer to when answering the questions in the following table:
1. Does the firm generate enough internal funds to support anticipated investment, or does additional outside capital need to be raised?
Statement of Cash Flows
2. Can the firm meet all its short-term obligations using its current assets?
Balance Sheet
c) The annual report is very important for investors, because the information contained in the annual report:
A: Helps investors forecast expected earnings and dividends.
Explanation:
Companies usually issue Annual Reports which contain the following financial statements: Balance sheet, Income Statement, and Statement of Cash Flows, including a Statement of Stockholders equity , among other information. The above financial statements are important to the various stakeholders, including existing and potential investors, governmental bodies, social organizations, employees, suppliers, customers, and the society at large because some key economic decisions are based on them.
a. On July 1, Lopez Company paid $2,200 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31.
b. Zim Company has a Supplies account balance of $7,000 at the beginning of the year. During the year, it purchased $3,000 of supplies. As of December 31, a physical count of supplies shows $1,300 of supplies available.
Required:
Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31.
Answer and Explanation:
The Journal entries are shown below:-
1. Insurance expenses Dr, $2,200
To Prepaid insurance $2,200
(Being insurance coverage expired is recorded)
2. Supplies expenses Dr, $11,300 ($7,000 + $3,000 + $1,300)
To Supplies $11,300
(Being supplies expenses is recorded)
These two entries should be considered
Bakker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $97,500 and 3,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $99,400 and actual direct labor-hours were 2,850. The applied manufacturing overhead for the year was:________
Answer:
Allocated MOH= $92,625
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 97,500 / 3,000
Predetermined manufacturing overhead rate= $32.5 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 32.5*2,850
Allocated MOH= $92,625
Kim is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Kim is living at home and works in a shoe store, earning a gross income of $1,070 per month. Her employer deducts $210 for taxes from her monthly pay. Kim also pays $128 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $85 per month.
Required:
Calculate her debt payments-to-income ratio without college loan.
Answer:
Explanation:
Gross income = 1070
net income = gross income - tax = 1070 - 210 = 860
payment to credit card = 128
debt payment to income ratio without college loan
= 128 / 860
= .1488
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates:
Activity Cost Pool Activity Rates
Labor-related $9.00 per direct labor-hour
Machine-related $7.00 per machine-hour
Machine setups $60.00 per setup
Production orders $200.00 per order
Shipments $100.00 per shipment
General factory $7.00 per direct labor-hour
Cost and activity data have been supplied for the following products:
J78 B52
Direct materials cost per unit $3.00 $36.00
Direct labor cost per unit $5.00 $7.00
Number of units produced per year 4,000 200
Total Expected Activity
J78 B52
Direct labor-hours 800 40
Machine-hours 3,300 20
Machine setups 3 3
Production orders 8 3
Shipments 12 3
Required:
Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Answer:
Larner Corporation
Unit cost of J78 B52
$17.72 $52.30
Explanation:
a) Data and Calculations:
Activity Cost Pool Activity Rates
Labor-related $9.00 per direct labor-hour
Machine-related $7.00 per machine-hour
Machine setups $60.00 per setup
Production orders $200.00 per order
Shipments $100.00 per shipment
General factory $7.00 per direct labor-hour
b) Cost and activity data have been supplied for the following products:
J78 B52
Unit Total Unit Total
Direct materials cost per unit $3.00 $12,000 $36.00 $7,200
Direct labor cost per unit $5.00 $20,000 $7.00 $1,400
Manufacturing overhead costs $38,880 $1,860
c) Total manufacturing costs $70,880 $10,460
Number of units produced per year 4,000 200
d) Unit cost $17.72 $52.30
e) Total Expected Activity and Costs:
J78 B52
Unit Total Unit Total
Direct labor-hours 800 $7,200 40 $360
Machine-hours 3,300 23,100 20 140
Machine setups 3 180 3 180
Production orders 8 1,600 3 600
Shipments 12 1,200 3 300
General factory 800 5,600 40 280
Total overhead $38,880 $1,860
Boyd Docker engaged in the following activities in establishing his photography studio, SnapShot!:
1. Opened a bank account in the name of SnapShot! and deposited $7,590 of his own money into this account in exchange for common stock.
2. Purchased photography supplies at a total cost of $920. The business paid $290 in cash, and the balance is on account.
3. Obtained estimates on the cost of photography equipment from three different manufacturers.
In what form (type of record) should Joel record these three activities? Prepare the entries to record the transactions.
Answer:
In what form (type of record) should Joel record these three activities? Joel should record these three activities in the General Journal format as it is standardized.
Journal Entries
S/N Account Titles and Explanation Debit Credit
1. Cash $7,590
Common stock $7,590
(To record the investment)
2. Supplies $920
Cash $290
Account payable $630
(To record the purchase of supplies)
3. No Entries - -
(This is because it is just an receiving of quotation)
_____________ is when your company makes an effort to actively control and shape your brand image with your target market.
A.Market penetration
B.Market segmenting
C.Data mining
D.Market positioning
Answer:
D
Explanation:
Market positioning is when the company makes an effort to actively control and shape your brand image with the target market. Thus, option D is correct.
What is Market positioning?Market positioning is the ability to influence consumer perception of a brand or product in comparison to competitors. The goal of market positioning is to establish a brand's or product's image or identity so that consumers perceive it in a specific way.
Market positioning is a critical component of marketing strategy because it influences what customers perceive to be offered to them. This includes the following steps: market segmentation (analysing the different parts of a market), and Targeting (deciding with market segments to enter) (deciding with market segments to enter)
Therefore, option D is correct, that Market positioning is when a company actively controls and shapes the brand's image with the target market.
Learn more about the Market positioning, refer to:
https://brainly.com/question/30077419
#SPJ2
Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $115,000 if credit were extended to these new customers. Of the new accounts receivable generated, 9 percent will prove to be uncollectible. Additional collection costs will be 6 percent of sales, and production and selling costs will be 75 percent of sales. The firm is in the 30 percent tax bracket.
Required:
a. Compute the incremental income after taxes.
b. What will Johnson’s incremental return on sales be if these new credit customers are accepted?
c. If the accounts receivable turnover ratio is 3 to 1, and no other asset buildup is needed to serve the new customers, what will Johnson’s incremental return on new average investment be?
Answer:
See answers below
Explanation:
Incremental income after tax
Incremental sales. $115,000
Less:
Expected uncollectibles
(115,000 × 9%) $10,350
Additional collection cost
(115,000 × 6%) $6,900
Production and selling cost
(115,000 × 75%) $86,250
Total balance. ($103,500)
Increase in before- tax inc. $11,500
Less: tax 30%. ($3,450)
Increase in after tax income $8,050
a. Incremental income after taxes $8,050
b. Johnson's incremental return on sales
= Increase in after - tax income / incremental sales
= $8,050 / $115,000
= 7%
c. Incremental return on new average
Incremental sales. $115,000
Accounts receivable
turnover ratio. 3
Average investments.
in assets $38,333
*Note: Average investment in assets = Sales / Accounts receivable turnover ratio.
Incremental return on new average investment
= Increase in after tax income / Average investments in assets
= $8,050 / $38,333
= 21%
Robert Wilkins has prepared the following list of statements about process cost accounting. Identify each statement as true or false.
1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion.
A. True
B. False
2. A process cost system is used when each finished unit is indistinguishable from another.
A. True B. False
3. Companies that produce soft drinks, movies, and computer chips would all use process cost accounting.
A. True B. False
4. In a process cost system, costs are tracked by individual jobs.select between True and False
5.Job order costing and process costing track different manufacturing cost elements.
A. True B. False
6. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead.
A. True B. False
7. Costs flow through the accounts in the same basic way for both job order costing and process costing.
A. True B. False
8. In a process cost system, only one work in process account is used.
A. True B. False
9. In a process cost system, costs are summarized in a job cost sheet.
A. True B. False
10. In a process cost system, the unit cost is total manufacturing costs for the period divided by the equivalent units produced during the period.
A. True B. False
Answer:
Identification of True or False Statements:
1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion.
A. True
2. A process cost system is used when each finished unit is indistinguishable from another.
A. True
3. Companies that produce soft drinks, movies, and computer chips would all use process cost accounting.
A. True
4. In a process cost system, costs are tracked by individual jobs.select between
False
5.Job order costing and process costing track different manufacturing cost elements.
B. False
6. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead.
A. True
7. Costs flow through the accounts in the same basic way for both job order costing and process costing.
A. True
8. In a process cost system, only one work in process account is used.
A. True
9. In a process cost system, costs are summarized in a job cost sheet.
B. False
10. In a process cost system, the unit cost is total manufacturing costs for the period divided by the equivalent units produced during the period.
A. True
Explanation:
A process costing system is a method of collecting and assigning manufacturing costs to the units produced. It is used by companies that produce similar or identical units of product in batches employing a consistent process. The unit cost is arrived at by averaging units produced to the total cost of the process.
A Nike women’s-only store in California offers women’s running, training and sportswear products and also contains an in-store fitness studio for group and personal fitness training sessions. The store consistently earns profits in excess of $500,000 per year and is located on prime real estate in the center of town. The store owner pays $15,000 per month in rent for the building. A real estate agent approached the owner and informed her that she could add $8,000 per month to her firm’s profits by renting out the portion of her store that she uses as a fitness studio. While the prospect of acquiring this rental income was enticing, the owner believed the use of that space as a fitness studio was an important contributor to her store’s profits.
What is the opportunity cost of continuing to operate the fitness studio within the store?
$______
Answer:
$8000
Explanation:
Opportunity cost or implicit cost is the cost of the next best option forgone when option is chosen over other options
By continuing to operate the fitness studio, the store owner is giving up the opportunity to earn $8000 from renting it. This is the opportunity cost
Stine Corp.'s trial balance reflected the following account balances at December 31, 2024: Accounts receivable (net) $23,000 Trading securities 6,000 Accumulated depreciation on equipment and furniture 15,000 Cash 16,000 Inventory 30,000 Equipment 25,000 Patent 4,000 Prepaid expenses 2,000 Land held for future business site 18,000. In Stine's December 31, 2024 balance sheet, the current assets total is
Answer: $77,000
Explanation:
Current Assets are those assets that will be expended within the period. In this case they will include;
= Accounts Receivable + Trading securities + Cash + Inventory + Prepaid expenses
= 23,000 + 6,000 + 16,000 + 30,000 + 2,000
= $77,000
Knight Inventory Systems, Inc., has announced a rights offer. The company has announced that it will take five rights to buy a new share in the offering at a subscription price of $33. At the close of business the day before the ex-rights day, the company’s stock sells for $54 per share. The next morning, you notice that the stock sells for $44 per share and the rights sell for $2 each. What is the value of the stock ex-rights? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)What is the value of a right?
Are the rights underpriced or overpriced?
What is the amount of immediate profit you can make on ex-rights day per share?
Immediate profit $
Answer:
1) What is the value of a right?
value of a right = (stock price - right subscription price) / number of rights needed to buy a share
value of a right = ($54 - $33) / 5 = $21 / 5 = $4.20
2) Are the rights underpriced or overpriced?
the rights are underpriced because they are sold at $2 each, and their fair price is $4.20
3) What is the amount of immediate profit you can make on ex-rights day per share?
you buy 5 rights and use them to buy one stock at $33, total cost = (5 x $2) + $33 = $43. Immediately sell the stock at $44, and you can earn $1 per stock.
This company reports only total factory overhead on the schedule of cost of goods manufactured and attaches a separate schedule listing individual overhead costs. For each of the following account balances for a manufacturing company, select yes in the appropriate column indicating that it appears on the balance sheet, the income statement, the schedule of cost of goods manufactured, and/or a detailed listing of factory overhead costs. Assume that the income statement shows the calculation of the cost of goods sold and the schedule of the cost of goods manufacturers shows only the total amount of factory overhead.
Account Balance Sheet Income Statement Schedule of COGM Overhead Report
Accounts receivable
Computer supplies used (office)
Beginning finished goods inventory
Beginning work in process inventory
Cash
Depreciation expense - Factory building
Depreciation expense - Office building
Direct Labor
Ending work in process inventory
Ending raw materials inventory
Factory maintenance wages
Income taxes
Insurance on factory building
Property taxes on factory building
Raw materials purchases
Sales
Answer:
balance sheet (permanent accounts):
Accounts receivable ⇒ BALANCE SHEET Cash ⇒ BALANCE SHEETincome statement (temporary accounts):
Computer supplies used (office) ⇒ INCOME STATEMENT Depreciation expense - Office building ⇒ INCOME STATEMENT Income taxes ⇒ INCOME STATEMENT Sales ⇒ INCOME STATEMENTcost of goods manufactured (temporary accounts):
Beginning finished goods inventory ⇒ SCHEDULE OF COST OF GOODS MANUFACTURED Beginning work in process inventory ⇒ SCHEDULE OF COST OF GOODS MANUFACTURED Direct Labor ⇒ SCHEDULE OF COST OF GOODS MANUFACTURED Ending work in process inventory ⇒ SCHEDULE OF COST OF GOODS MANUFACTURED Ending raw materials inventory ⇒ SCHEDULE OF COST OF GOODS MANUFACTURED Raw materials purchases ⇒ SCHEDULE OF COST OF GOODS MANUFACTUREDoverhead report (temporary accounts):
Depreciation expense - Factory building ⇒ OVERHEAD REPORT Factory maintenance wages ⇒ OVERHEAD REPORT Insurance on factory building ⇒ OVERHEAD REPORT Property taxes on factory building ⇒ OVERHEAD REPORT
1.1.1 the name of the business and the title of the job advertisement
1.1.2 A clear job description that is relevant to the advertised vacancy
1.1.3A clear job specification that is to the advertised vacancy
Answer:
what are you even asking
A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $530,000; March 31, $630,000; June 30, $430,000; October 30, $690,000. To help finance construction, the company arranged a 10% construction loan on January 1 for $760,000. The company’s other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 13% and 6%, respectively.
Required:
Assuming the company uses the specific interest method, calculate the amount of interest capitalized for the year.
Answer:
total capitalized interests = $126,380
Explanation:
Weighted average expenditures:
January 1 = $530,000 x 12/12 = $530,000
March 31 = $630,000 x 9/12 = $472,500
June 30 = $430,000 x 6/12 = $215,000
October 30 = $690,000 x 2/12 = $115,000
total weighted expenditures = $1,332,500
weighted interest rate:
$4,000,000 x 13% = $520,000
$6,000,000 x 6% = $360,000
total = $880,000 / $10,000,000 = 8.8%
capitalized interest:
$760,000 x 10% = $76,000
($1,332,500 - $760,000) x 8.8% = $50,380
total capitalized interests = $126,380
Presented below are the basic assumptions and principles underlying financial statements. a. Historical cost principle d. Going concern assumption b. Economic entity assumption e. Monetary unit assumption c. Full disclosure principle f. Periodicity assumption Identify the basic assumption or principle that is described below. 1. The economic life of a business can be divided into artificial time periods. select a letter 2. The business will continue in operation long enough to carry out its existing objectives. select a letter 3. Assets should be recorded at their cost. select a letter 4. Economic events can be identified with a particular unit of accountability. select a letter 5. Circumstances and events that make a difference to financial statement users should be disclosed. select a letter 6. Only transaction data that can be expressed in terms of money should be included in the accounting records. select a letter
Answer with Explanation:
Requirement 1. The economic life of a business can be divided into artificial time periods.
It is a periodicity assumption which says that the business time periods can be used to prepare financial statement as per the need of the management or other organization to make meaningful decisions.
Requirement 2. The business will continue in operation long enough to carry out its existing objectives.
It is going concern assumption which says that the company will continue its business for foreseeable future and thus the financial reporting exists. If this assumption wasn't present then the financial reporting would had only included "How to prepare financial statements on breakup basis?". Which is the situation when the company goes bankrupt and we have to prepare in breakup basis which says that the business will not continue for the foreseeable future.
Requirement 3. Assets should be recorded at their cost.
It is based on Historical cost principle which says that the contracts formed and the prices agreed would be incorporated in the financial reporting.
Requirement 4. Economic events can be identified with a particular unit of accountability.
It is Economic entity assumption which says that every stakeholder is an entity. For example, engineer, schools, leather company, Honda company, Gucci, Boss inc, etc are the examples of economic entity.
Requirement 5. Circumstances and events that make a difference to financial statement users should be disclosed.
It is talking about Disclosure principle which says that the circumstances and events that has potential to alter the decision making of the user of financial statement, must be disclosed in notes to financial statements.
Requirement 6. Only transaction data that can be expressed in terms of money should be included in the accounting records.
The statement is clear reflection of Monetary Unit assumption which says that the dealings of company that can be measured in financial terms can only be recorded in the books of accounts.
Determine the utilization and efficiency for each of the following situations.
a. A loan processing operation that processes an average of 3 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 7 loans per day.
b. A furnace repair team that services an average of 2 furnaces a day if the design capacity is 6 furnaces a day and the effective capacity is 5 furnaces a day.
c. Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems
Answer:
a. Utilization= 30%
Efficiency= 42.85%
b. Utilization= 33.33%
Efficiency=40%
c. . Based on the calculations , the utilization will tend to relied on the design capacity and it may vary accordingly.
Explanation:
a. Calculation to Determine the utilization and efficiency for each
Calculation for utilization
Using this formula
Utilization = (Actual Output/Design Capacity)*100
Let plug in the formula
Utilization= (3/10)*100
Utilization= 30%
Using this formula to calculate for efficiency
Let plug in the formula
Efficiency = (Actual Output/Effective Capacity)*100
Efficiency= (3/7)*100
Efficiency= 42.85%
b. Calculation for utilization
Using this formula
Utilization = (Actual Output/Design Capacity)*100
Let plug in the formula
Utilization= (2/6)*100
Utilization= 33.33%
Using this formula to calculate for efficiency
Let plug in the formula
Efficiency = (Actual Output/Effective Capacity)*100
Efficiency= (2/5)*100
Efficiency=40%
c. In a situation where the design capacity is High this means that there is likelyhood that the utilization could be lesser despite the efficiency was high.
Therefore based on the above calculations , the utilization will tend to relied on the design capacity and it may vary accordingly.
Performed $20,000 of services on account.
Collected $17,400 cash on accounts receivable.
Paid $4,900 cash in advance for an insurance policy.
Paid $990 on accounts payable.
Recorded the adjusting entry to recognize $3,900 of insurance expense.
Received $7,700 cash for services to be performed at a later date.
Purchased land for $1,420 cash.
Purchased supplies for $1,200 c
Required
Record each of the above transactions in general journal form and then show the effect of the transaction in a horizontal statements model.
The first transaction is shown as an example.
Transaction Account Titles Debit Credit
Accounts receivable 8,200
Service revenue 8,200
Answer:
Journal of given entries
Explanation:
Debtor ac dr 20000to Sales ac 20000
Cash ac dr 17400to Account Receivables ac 17400
Prepaid Insurance ac dr 4900to Cash ac 4900
Accounts Payable ac dr 990to Cash ac 990
Insurance ac dr 3900to Prepaid Insurance ac 3900
Cash ac dr 7700to Advance ac 7700
Land ac dr 1420to Cash ac 1420
Purchase ac dr 1200to Cash ac 1200
Happy Selling's had the following accounts at year end: Cash-250,000, Accounts Payable-70,000,
Prepaid Expense-15,000. Compute for the company's current assets.
Answer:
265,000
Explanation:
I calculated the answer
Princeton Fabrication, Inc., produced and sold 1,400 units of the company's only product in March. You have collected the following information from the accounting records:
Sales price (per unit) $137
Manufacturing costs:
Fixed overhead (for the month) 15,400
Direct labor (per unit) 8
Direct materials (per unit) 34
Variable overhead (per unit) 24
Marketing and administrative costs:
Fixed costs (for the month) 25,200
Variable costs (per unit) 5
Find the following:1. Variable manufacturing cost per unit.2. Full cost per unit.3. Variable cost per unit.4. Full absorption cost per unit.5. Prime cost per unit.6. Conversion cost per unit.7. Profit margin per unit.8. Contribution margin per unit.9. Gross margin per unit.
Answer:
Princeton Fabrication, Inc.
1. Variable Manufacturing cost per unit:
$66
2. Full Manufacturing cost per unit:
= $77
3. Variable cost per unit:
$71
4. Full absorption cost per unit:
$100
5. Prime Cost per unit:
$42
6. Conversion Cost per unit:
$69
7. Profit margin per unit:
$37
8. Contribution Margin per unit:
$71
9. Gross margin per unit:
$60
Explanation:
a) Data and Calculations:
Quantity produced and sold in March = 1,400
Sales price (per unit) $137
Manufacturing costs:
Fixed overhead (for the month) 15,400
Direct labor (per unit) 8
Direct materials (per unit) 34
Variable overhead (per unit) 24
Marketing and administrative costs:
Fixed costs (for the month) 25,200
Variable costs (per unit) 5
b) Variable Manufacturing cost per unit:
Direct labor (per unit) 8
Direct materials (per unit) 34
Variable overhead (per unit) 24
Total variable cost per unit $66
c) Full Manufacturing cost per unit:
Variable cost ($66 x 1,400) = $92,400
Fixed overhead (for the month) 15,400
Total manufacturing cost = $107,800
$107,800/ 1,400 = $77
d) Variable cost per unit:
Direct labor (per unit) 8
Direct materials (per unit) 34
Variable overhead (per unit) 24
Variable costs (per unit) 5
Total variable costs per unit $71
e) Full absorption cost per unit:
Total variable costs ($71 * 1,400) = $99,400
Total fixed costs: manufacturing 15,400
Total fixed marketing & admin 25,200
Total absorption costs = $140,000
unit absorption cost = $140,000/1,400 = $100
f) Prime Cost per unit:
Direct labor (per unit) 8
Direct materials (per unit) 34
Prime cost per unit $42
g) Conversion Cost per unit:
Direct materials (per unit) 34
Overhead cost per unit 35 (fixed overhead + variable overhead) per Conversion cost per unit = $69
h) Profit margin per unit:
Selling price $137
Full cost 100
Profit margin $37
i) Contribution Margin per unit:
Selling price $137
Variable manufacturing cost $66
Contribution margin per unit $71
j) Gross margin per unit:
Selling price $137
Manufacturing cost 77
Gross margin $60
Click this link to view O'NET's Work Activities section for Accountants. Note that common activities are listed toward
the top, and less common activities are listed toward the bottom. According to O*NET, what are some common work
activities performed by Accountants? Check all that apply.
evaluating information
performing general physical activities
handling and moving objects
interacting with computers
processing information
getting information
Answer - 1 4 5 6
Explanation:
Answer:
1,4,5,6
Explanation:
Neil Webster is the sole proprietor of Prestigious Pugs, a business specializing in the sale of high-end pet gifts and accessories. Prestigious Pugs' sales totaled $1,105,000 during the most recent year. During the year, the company spent $55,000 on expenses relating to website maintenance, $30,500 on marketing, and $29,500 on wrapping, boxing, and shipping the goods to customers. Prestigious Pugs also spent $638,000 on inventory purchases and an additional $19,500 on freight-in charges. The company started the year with $16,250 of inventory on hand and ended the year with $16,000 of inventory. Prepare Prestigious Pugs' income statement for the most recent year.
Answer and Explanation:
The Preparation of the income statement is shown below:-
Prestigious Pugs
Income Statement
For the most recent year
Particulars Amount
Sales $1,105,000
Less: Cost of goods sold ($657,750)
Gross profit $447,250
Less : Operating expenses
website maintenance expenses ($55,000)
Marketing expenses ($30,500)
wrapping, boxing, and shipping Exp ($29,500) ($115,000)
Net income $332,250
Working note:
Beginning inventory $16,250
Add: Inventory purchase $657,500
($638,000 + 19,500)
Total goods available for sale $673,750
Less: Ending inventory ($16,000)
Cost of goods sold $657,750
Grenoble Enterprises had sales of $50,000 in March and $60,000 in April. Forecast sales for May, June, and July are $70,000, $80,000, and $100,000, respectively. The firm has a cash balance of $5,000 on May 1 and wishes to maintain a minimum cash balance of $5,000. Given the following data, prepare and interpret a cash budget for the months of May, June, and July.
1. The firm makes 20% of sales for cash, 60% are collected in the next month, and the remaining 20% are collected in the second month following sale.
2. The firm receives other income of $2,000 per month.
3. The firm's actual or expected purchases, all made for cash, are $50,000, $70,000, and $80,000 for the months of May through July, respectively.
4. Rent is $3,000 per month.
5. Wages and salaries are 10% of the previous month's sales.
6. Cash dividends of $3,000 will be paid in June.
7. Payment of principal and interest of $4,000 is due in June.
8. A cash purchase of equipment costing $6,000 is scheduled in July.
9. Taxes of $6,000 are due in June.
Answer:
I used an excel spreadsheet since there is not enough room here.
The company might want to have a minimum cash balance of $5,000 at the end of each month, but only has a cash surplus during May. The company has cash deficits for both June and July, which means that they will probably need to take a loan to keep operating.
Discuss and analyze a situation where you worked on a team/project team consisting of diverse or intercultural team members. Consider the following points in your response:
a. What were some good and/or poor examples of communication?
b. Discuss any examples or interpretation of cultural differences as described in Hofstede's Cultural Values chart on page 46 of your text (e.g., individualism, time orientation, formality, etc.).
c. Was there anything that could have been done to make the communication more effective?
Explanation:
a. It is common that there are challenges in multicultural companies, communication can be a problem in companies where there are language barriers for example, which can cause significant communication noises that can cause misunderstanding and difficulty integrating a member of a culture different when joining a work team.
b. There are several different cultural values that can directly influence the work environment, the issue of formality for example is a factor that differs from country to country, and the lack of formality of an employee for example can be seen as rude, invasive behavior or unprofessional, when in fact it may just be a cultural feature of countries where the work environment is less informal and more flexible.
c. To make communication more effective, it is necessary to prepare the organization, that is, the development of policies, organizational culture and programs aimed at inclusion and respect for the different cultural values present in the organization.
It is essential that the company prepare its managers and employees to receive workers from other countries, developing a favorable environment for the exchange of positive experiences, aimed at integration, collaboration and ethical behaviors.
Honda Motor Company has discovered a problem in the exhaust system of one of its automobile lines and has voluntarily agreed to make the necessary modifications to conform to government safety requirements. Standard procedure is for the firm to pay a flat fee to dealers for each modification completed. Honda is trying to establish a fair amount of compensation to pay dealers and has decided to choose a number of randomly selected mechanics and observe their performance and learning rate. Based on the results of this test, Honda decided to pay a $60 fee for each repair (3 hours × $20 per flat-rate hour).
Southwest Honda, Inc., is considering whether to participate in the program. If they can average three hours or less on each repair (what Honda is willing to pay them for), it will make sense for them to agree. They performed their own test repairs to help in their decision process. Six mechanics, working independently, have completed two modifications each. On average, the mechanics took 9 hours to do the first unit and 6.3 hours to do the second. The dealership expects to perform 300 such modifications, which works out to 50 modifications per mechanic, including the first two units already built. Use Exhibit 6.5.
On average, how many hours will it take Southwest Honda to perform each modification using all six mechanics as planned?
For this exercise it has to be taken the leaning curve with a leaning rate equals to L%
If the period necessary for 1st unit is equal to T,
the time necessary for the 2nd unid is equal to L/100 * T
as well as for the forth it will be L/100^2T
As explained,
The necessary time for the first unit will be 9 hours
and the second it will be 6.3 hours
applying the Leaning method we have
= (2nd necessary time/1st necessary time )* 100 = 6.3h/9h*100 = 70%
therefore the modifications performed by six mechanics is equal to 300/6 which is equal to 50 modifications
By using the leaning curve, it has to be found the total amount of time necessary for each mechanic to perform the 50 modifications.
50th modification time = 1.2 hour
therefore the total time necessary to perform the 50th modifications is equal to 110.76 h
So, the time for each modification is equal to:
110.76 h / 50 = 2.21 h
Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system with labor hours as the cost driver but is considering switching to an activity-based costing system. In preparation for the possible switch, Bunker has identified two activity cost pools: materials handling and setup. Pertinent data follow: Fabric Case Leather Case Number of labor hours 17,000 11,000 Number of material moves 560 1,040 Number of setups 35 135 Total estimated overhead costs are $249,800, of which $192,000 is assigned to the materials handling cost pool and $57,800 is assigned to the setup cost pool.Required :1. Calculate the overhead assigned to the fabric case using the traditional costing system based on direct labor hours. (Do not round intermediate calculations.)Overhead assigned:2. Calculate the overhead assigned to the fabric case using ABC.Overhead assigned:3. Was the fabric case over- or undercosted by the traditional cost system compared to ABC?Fabric case:
Answer:
(1.) $151,664
(2.) $79100
Explanation:
Given the data :
___________Fabric Case ____ Leather Case
labor hours__ 17,000__________ 11,000
material_____ 560 ____________1,040
setups_______ 35 _____________135
Material handling cost pool = $192,000
Setup cost pool = $57,800
1.) Calculate the overhead assigned to the fabric case using the traditional costing system based on direct labor hours.
Total Estimated overhead cost = $249,800
Cost driver = labor hour
Total labor hour = (17000 + 11000) = 28,000 labor hour
For traditional costing method :
Overhead assigned to Fabric case :
Total Estimated overhead / total direct labor hours
= (249,800 / 28,000) * 17000
= $151,664
For The activity-based costing :
[Total materials handling cost pool / Total number of material moves) × fabric case number of material moves)] + [( setup cost pool / Total number of setups) × Fabric case number of setups)]
((192000/1600)*560) + ((57800/170)*35)
= $79100
what contributes to an empolyee's self worth which in turn increases productivity and reduces absenteeism
Answer:
The factors that contribute to an employee's self-worth is thought to be linked to employees productivity, motivation, performance, job satisfaction, emotional stability, effective stress and conflict management.
Explanation:
The productivity of an employee, a business or an economy can be calculated based on its performance and efficiency. When we measure labour productivity, we compare a given output with the amount of labour required for that output.
On the other hand, Absenteeism is the behaviour of a person who is often absent when he should be present.
The concept of an employee's self-worth is being recognized for its vital role both in terms of identity formation and in adaptive terms. However, factors that contribute to an employee's self-worth is thought to be linked to employees productivity, motivation, performance, job satisfaction, emotional stability, effective stress and conflict management.
There is a 3% defect rate at a specific point in a production process. If an inspector is placed at this point, all the defects can be detected and eliminated. The inspector would cost $8 per hour and could inspect units in the process at the current production rate of 30 per hour. If no inspector is hired and defects are allowed to pass this point, there is a cost of $10 per defective unit to correct the defects later on.
Assume that the line will operate at the same rate (i.e., the current production rate) regardless of whether the inspector is hired or not.
A. If an inspector is hired, what will be the inspection cost per unit?
B. If an inspector is not hired, what will be the defective cost per unit?
C. Should an inspector be hired based on costs alone?
Answer:
A. $2.67 per unit
B. $0.3 per unit
C. Yes
Explanation:
A. Calculation for what will be the inspection cost per unit If an inspector is hired,
Using this formula inspection cost
Inspection cost=Cost of inspector/inspection rate per hour
Inspection cost = 8/30
Inspection cost = $2.67 per unit
Therefore what will be the inspection cost per unit If an inspector is hired is $2.67 per unit
B. Calculation for what will be the defective cost per unit If an inspector is not hired,
Using this formula formula
No inspection =(Defective average *Inspection rate * Correction cost) /Inspection rate
Let plug in the formula
No inspection=0.03*30 per hour *$10 each/30 per hour
No inspection =9/30
No inspection = $0.3 per unit
Therefore what will be the defective cost per unit If an inspector is not hired is $0.3 per unit
C. Yes the inspector should be hired based on the costs alone.