Answer: $593000; $250000
Explanation:
The consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2021 balances) as a result of this acquisition transaction will be calculated thus:
Additional paid in capital will be:
= $60000 + ([46-5] × $13000)
= $60000 + (41 × $13000)
= $60000 + $533000
=$593000
Retained earnings will the value of the parent's retained earnings only which will be $250000
John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $890,000. John has used past financial information to estimate that the net cash flows (cash inflows less cash outflows) generated by the restaurant would be as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Years Amount
1-6 $ 89,000
7 79,000
8 69,000
9 59,000
10 49,000
If purchased, the restaurant would be held for 10 years and then sold for an estimated $790,000.
Required:
Determine the present value, assuming that John desires an 11% rate of return on this investment. (Assume that all cash flows occur at the end of the year.) (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)
Answer and Explanation:
The computation of the present value is as follows:
Years Value Factor at 11% Present value
1-6 $89,000 4.2305 $376,515
7 $79,000 0.4817 $38,054
8 $69,000 0.4339 $29,939
9 $59,000 0.3909 $23,063
10 $49,000 0.3522 $17,258
10 $790,000 0.3522 $278,238
Present value $763,067
it should be rejected as it less than the initial investment
Question 2 (5 points)
(01.07 MC)
How do we know our current money has value? (5 points)
а
People talk about money a lot.
Ob
It is backed by gold.
Ос. .
People accept it in exchange for goods or services,
od
It has many security measures.
Answer:
It's C
Explanation:
a and d are kind of a result of C but C is still correct
we no longer back our money with gold
All of the following statements are correct when referring to process costing except:Multiple ChoiceCosts are accumulated by department.A process costing system has the same basic purposes as a job-order costing system.Process costing would be appropriate for a jeweler who makes custom jewelry to order.Units produced are indistinguishable from each other.
Answer:
Process costing would be appropriate for a jeweler who makes custom jewelry to order.
Explanation:
Product costing is defined as the process by which the best costing method is chosen to suit a particular product.
There are three main types: process costing, specific order costing, and service costing.
Process costing is a method that determines the cost incurred at each stage of production. It is best used for processes that are repetitive such as manufacturing plants.
However a jeweler who makes custom jewelry to order will most appropriately be served by a specific order costing.
This involves costing according to distinct jobs or contracts.
There is no specific or repetitive process, rather the job is usually carried out according to specific needs of a customer.
Answer each of the following independent questions. Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $64,000 cash immediately, (2) $20,000 cash immediately and a six-period annuity of $8,000 beginning one year from today, or (3) a six-period annuity of $13,000 beginning one year from today. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Assuming an interest rate of 6%, determine the present value for the above options. Which option should Alex choose? 2. The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030. Weimer will make annual deposits of $100,000 into a special bank account at the end of each of 10 years beginning December 31, 2021. Assuming that the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2030?
Answer:
Option 1$1,381,645Explanation:
1. Alex needs to pick the option that offers the highest present value.
Option 1 present value = $64,000
Option 2:
Mix of lump-sum and annuity:
Present value of annuity = Annity * Present value interest factor of annuity, 6%, 6 periods
= 8,000 * 4.9173
= $39,338.40
Present value of option B = 20,000 + 39,338.40
= $59,338.40
Option 3:
Present value of annuity = Annity * Present value interest factor of annuity, 6%, 6 periods
= 13,000 * 4.9173
= $63,924.90
Alex should choose option 1 as it has the largest present value.
2.As this concerns a future amount, the future value of an annuity is used.
Future value of Annuity = Annuity * (( 1 + rate)^n - 1 )/ r
= 100,000 * ((1 + 7%)¹⁰ - 1) / 7%
= 100,000 * 13.8164479612795
= $1,381,644.79
= $1,381,645
Jake Fleming sells graphic card update kits for computers. Jake purchases these kits for $20 and sells about 250 kits a year. Each time Jake places an order, it costs him $25 to cover shipping and paperwork. Jake figures that the cost of holding an update kit in inventory is about $3.50 per kit per year. What is the economic order quantity
Answer:
60 Kits
Explanation:
Cost price (C) = $20/Kit
Yearly se (D) = 250 kit/year
Shipping cost / Ordering cost (Co) = $25
Holding cost (Ch) = $3.5/Kit-year
Economic order quantity = √2.D.Co / Ch
Economic order quantity = √2*250*25/3.5
Economic order quantity = √12500/3.5
Economic order quantity = √3571.4285
Economic order quantity = 59.7614305
Economic order quantity = 60 Kits
Milea Inc. experienced the following events in Year 1, its first year of operations:
1. Received $13,500 cash from the issue of common stock
2. Performed services on account for $45,000
3. Pald the utility expense of $1,150.
4. Collected $36,540 of the accounts receivable.
5. Recorded $8,100 of accrued salaries at the end of the year
6. Paid a $1,050 cash dividend to the stockholders.
Required
1. Prepare the income statement
2. Prepare the statement of changes in stockholders' equity
3. Prepare the balance sheet as of December 31.
4. Prepare the statement of cash flows for the Year 1 accounting period.
Answer:
1. Net income = $35,750
2. Stockholders' equity = $48,200
3. Total assets = Total Equity and Liabilities = $56,300
4. Net cash generated = $47,840
Explanation:
1. Prepare the income statement
Milea Inc.
Income Statement
For the Year ended 31 December Year 1
Details Amount ($)
Revenue:
Service income 45,000
Expenses:
Utility expense (1,150)
Accrued salaries (8,100)
Net income 35,750
Dividend paid (1,050)
Retained earnings 34,700
2. Prepare the statement of changes in stockholders' equity
Milea Inc.
Statement of changes in stockholders' equity
For the Year ended 31 December Year 1
Details Amount ($)
Common stock 13,500
Retained earnings 34,700
Stockholders' equity 48,200
3. Prepare the balance sheet as of December 31.
Milea Inc.
Balance Sheet
As of 31 December Year 1
Details $
Assets
Current Assets
Ending cash balance 47,840
Accounts receivable ($45,000 - $36,540) 8,460
Total assets 56,300
Equity and Liabilities
Stockholders' equity 48,200
Liabilities
Current liabilities
Accrued salaries 8,100
Total Equity and Liabilities 56,300
4. Prepare the statement of cash flows for the Year 1 accounting period.
Milea Inc.
Statement of Cash Flows
For the Year ended 31 December Year 1
Details $ $
Net income 35,750
Adjustment to reconcile net income:
(Increase) decrease in current assets:
Accounts receivable ($45,000 - $36,540) (8,460)
Increase (decrease) in current liabilities:
Accrued salaries 8,100
Net cash from operating activities 35,390
Cash flow from financing activities:
Common stock 13,500
Dividend paid (1,050)
Net cash from financing activities 12,450
Net cash generated 47,840
Beginning cash balance 0
Ending cash balance 47,840
Pronghorn Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. PRONGHORN COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020 Current assets Cash $241,500 Accounts receivable (net) 351,500 Inventory (lower-of-average-cost-or-market) 412,500 Equity investments (marketable)-at cost (fair value $131,500) 151,500 Property, plant, and equipment Buildings (net) 581,500 Equipment (net) 171,500 Land held for future use 186,500 Intangible assets Goodwill 91,500 Cash surrender value of life insurance 101,500 Prepaid expenses 23,500 Current liabilities Accounts payable 146,500 Notes payable (due next year) 136,500 Pension obligation 93,500 Rent payable 60,500 Premium on bonds payable 64,500 Long-term liabilities Bonds payable 511,500 Stockholders’ equity Common stock, $1.00 par, authorized 400,000 shares, issued 301,500 301,500 Additional paid-in capital 171,500 Retained earnings ?
Which of the following statements are true oflong-term investments?
a. They can include bonds and stocks not intended to be sold in the near future.
b. They can be considered cash equivalents.
c. They can include assets not used in operations, such as investments in land.
d. They generally include investments that will mature in 3 to 12 months.
e. They are reported with noncurrent assets on the balance sheet.
f. They are always easily sold and therefore qualify as being marketable.
Answer:
a. They can include bonds and stocks not intended to be sold in the near future.
c. They can include assets not used in operations, such as investments in land.
e. They are reported with noncurrent assets on the balance sheet.
Explanation:
Long term investment or assets are those that are typically held in a company's balance sheet for many years. They can include assets such as land, equipment like machinery, buildings and vehicles.
They also include sticks and bonds that won't be used in the short term.
So long term investment are not cash equivalents because cash can be used in the short term.
Also it cannot be used within 3 - 12 months.
They are not easily sold as they sold so they are not considered marketable asset in the short run.
Long term investment is considered to be a non current asset as they last longer than a year on the balance sheet.
At December 31, 2021, Newman Engineering's liabilities include the following:
a. $12 million of 6% bonds were issued for $12 million on May 31, 1999. The bonds mature on May 31, 2029, but bondholders have the option of calling (demanding payment on) the bonds on May 31, 2022. However, the option to call is not expected to be exercised, given prevailing market conditions.
b. $16 million of 5% notes are due on May 31, 2022. A debt covenant requires Newman to maintain current assets at least equal to 177% of its current liabilities. On December 31, 2021, Newman is in violation of this covenant. Newman obtained a waiver from National City Bank until June 2022, having convinced the bank that the companyâs normal 2 to 1 ratio of current assets to current liabilities will be reestablished during the first half of 2022.
c. $9 million of 8% bonds were issued for $9 million on August 1, 1989. The bonds mature on July 31, 2022. Sufficient cash is expected to be available to retire the bonds at maturity.
Required:
Classify the above mentioned debts as current liabilities or noncurrent liabilities.
Answer:
1. Classify as Current liabilities up to the sum of $12 million
Since the bondholder have the option to demand the payment in the near future irrespective of whether they will exercise or not, it will be treated as current liability.
2. Classify as Current liabilities up to the sum of $16 million
The notes payable are due within a year and despite the violation of maintaining the condition, it will be treated as current liability.
3. Classify as Current liabilities up to the sum of $9 million
Since the bond matures within a year and there is sufficient amount of cash available for redemption which signifies that there is fair chances of retirement of bonds exits, hence, need to classified as current liability.
Based on accounting practices, the following are true:
a. Current liability.b. Current liability.c. Current liability. Why are the above current liabilities?The bondholders can call the bond on May 31, 2022 which is within a year of December 2021. This is therefore a current liability.
Even though they are in violation of the covenant, the amount is still due within the year which makes it a current liability.
The bonds maturing on July 31, 2022 are within a year of the date of the statements which is December 31, 2021.
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Before any month-end adjustments are made, the net income of Russell Company is $37,000. However, the following adjustments are necessary: office supplies used, $3,060; services performed for clients but not yet recorded or collected, $2,940; interest accrued on a note payable to bank, $3,540. After adjusting entries are made for the items listed above, Russell Company's net income would be: Group of answer choices
Answer:
the net income would be $33,340
Explanation:
The computation of adjusted net income is shown below:
= Net income - office supplies used + service performed for clients - interest accrued to bank
- $37,000 - $3,060 + $2,940 - $3,540
= $33,340
Hence, the net income would be $33,340
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While attending a baseball game cheering for the home team a fan of the other team sneaks up behind jack and hits jack on the head with a hard piece of pretxel injuring jack. Jack has no ideas he is about to be hit an dis embarrassed when his friends see that he was injured by a pretzel. Which of the following torts has the fan committed?
a) assault and battery.
b) battery and negligent infliction of emotional distress.
c) battery.
d) assault.
e) assault, battery, and negligent infliction of emotional distress.
Answer:
C) Battery
Explanation:
From the question we are informed about an instance, While attending a baseball game cheering for the home team a fan of the other team sneaks up behind jack and hits jack on the head with a hard piece of pretxel injuring jack. Jack has no ideas he is about to be hit an dis embarrassed when his friends see that he was injured by a pretzel. In this case, The torts that the fan has committed is the battery. A tort as regards common law jurisdiction can be regarded as a civil wrong which make a claimant to count losses/ harm which resulted in legal liability on the part of the person that committed the tortious act. These could be invasion of privacy as well as injuries
Wildhorse Locomotive Corporation purchased for $604,000 a 40% interest in Lopez Railways, Inc. This investment enables Wildhorse Locomotive to exert significant influence over Lopez Railways. During the year, Lopez Railways earned net income of $159,000 and paid dividends of $27,000. Prepare ZaneLocomotive’s journal entries related to this investment.
Answer:
Dr Equity Investments $604,000
Cr Cash $604,000
Dr Equity Investments $63,600
Cr Investment Income $63,600
Dr Cash $10,800
Cr Equity Investments $10,800
Explanation:
Preparation of ZaneLocomotive’s journal entries related to this investment.
Dr Equity Investments $604,000
Cr Cash $604,000
(Being to record Investment)
Dr Equity Investments $63,600
Cr Investment Income $63,600
(40% × $159,000)
(Being to record share in net income)
Dr Cash $10,800
Cr Equity Investments $10,800
(40% × $27,000)
(Being to record shares in dividend)
Tom is comparing two printers for his small business. The purchase price for Printer A is $1,000, with maintenance and operations costs of $400. Printer B increases productivity by $100, and reduces the maintenance and operations costs by half. The expected lifetime value is one year for both printers. What is the economic value to the customer (EVC) of Printer B
Answer:
EVC = $1300
Explanation:
In this question, we need to find the economic value to the customer (EVC) of Printer B.
First of all we need to know the basics of Economic value of a product,
It is basically starts with evaluating the additional values of the product first which are associated with it and then, those values are added to the next best product in the market. In this case, Printer A is the next best product whose price is $1000.
We know that, Printer B increase productivity by $100
Reduce the maintenance and operations costs by half, which means $400/2 = $200.
Additional value of the product = $100 + $200
Cost of the next best product = $1000
So,
According to the EVC definition and understandings, we must add the additional values of the product to value of the next best product.
Hence,
EVC = $1000 + $100 + $200
EVC = $1300
you are in a 98 story building taking the elevator to the top from the bottom. Each story is 15 feet. The elevator travels at 20 miles per hour. There are 5,280 feet in a mile. How long do you have for your elevator pitch ?
Answer: 50 seconds
Explanation:
I took the test just now.
You are in a 98-story building taking the elevator to the top from the bottom. Each story is 15 feet. The elevator travels at 20 miles per hour. There are 5,280 feet in a mile. Around 50 seconds you can have for your elevator pitch.
What is an elevator pitch?An elevator pitch, elevator speech, or elevator statement is a short description of an idea, product, or company that explains the concept in a way such that any listener can understand it in a short period.
This description typically explains who the thing is for, what it does, why it is needed, and how it will get done. When explaining a person, the description generally explains one's skills and goals, and why they would be a productive and beneficial person to have on a team or within a company or project.
An elevator pitch does not have to include all of these components, but it usually does at least explain what the idea, product, company, or person is and their value.
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As part of its commitment to quality, the J. J. Borden manufacturing company is proposing to introduce just-in-time (JIT) production methods. Managers of the company have an intuitive feel regarding the financial benefits associated with a change to JIT, but they would like to have some data to inform their decision making in this regard. You are provided with the following data:
Item ExistingSituation AfterAdopting JIT
Manufacturing costs as percentage of sales:
Product-level support 15 % 4 %
Variable manufacturing overhead 28 10
Direct materials 30 20
Direct manufacturing labor 20 13
Other financial data:
Sales revenue $ 1,430,000 $ 1,810,000
Inventory of WIP 260,000 46,000
Other data:
Manufacturing cycle time 60 days 30 days
Inventory financing costs (per annum) 10 % 10 %
Required:
As the management accountant for the company, prepare an estimate the financial benefits associated with the adoption of JIT. Specifically, what is the estimated change in annual operating income attributable to the JIT implementation?
Answer:
A. $74,100 $954,700
B. $880,600
Explanation:
A. Preparation to estimate the financial benefits associated with the adoption of JIT
Current situation After JIT
Sales 1,430,000 1,810,000
Less costs
Production level support 214,500 72,400
(15%*1,430,000=214,500)
(4%*1,810,000=72,400)
Variable manufacturing overhead 400,400 181,000
(28%*1,430,000=400,400)
(10%*1,810,000=181,000)
Direct material 429,000 362,000
(30%*1,430,000=429,000)
(20%*1,810,000=362,000)
Direct manufacturing labor 286,000 235,300
(20%*1,430,000=286,000)
(13%*1,810,000=235,300)
Inventory financing costs 26,000 4,600
(10%*260,000=26,000)
(10%*46,000=4,600)
Total costs 1,355,900 855,300
Operating profits $74,100 $954,700
(1,430,000-1,355,900)
(1,810,000-855,300)
Therefore the the financial benefits associated with the adoption of JIT will be $74,100 $954,700
B. Preparation for the estimated change in annual operating income attributable to the JIT implementation
Current situation After JIT Change
Sales 1,430,000-1,810,000=-380,000
Less costs
Production level support 214,500-72,400 =142,100
Variable manufacturing overhead 400,400 -181,000=219,400
Direct material 429,000-362,000=67,000
Direct manufacturing labor 286,000- 235,300= 50,700
Inventory financing costs 26,000-4,600 =21,400
Total costs 1,355,900-855,300=500,600
Operating profits 74,100-954,700=880,600
Therefore the estimated change in annual operating income attributable to the JIT implementation will be 880,600
During fiscal 2016, Caleres Inc. (formerly Brown Shoe Company), reported cost of goods sold of $1,517.4 million. Inventory at the start of the year was $546.7 million and at the end of the year was $585.8 million. Which of the following describes the closing entry that the company will make for these accounts?
A. Debit Inventory $39.1 million.
B. Credit Inventory $585.8 million.
C. Credit Cost of goods sold $1,517.4 million.
D. Both A and C.
E. None of the above.
Answer:
Credit Cost of goods sold $1,517.4 million
Explanation:
given data
cost of goods sold = $1,517.4 million
Inventory at the start of the year = $546.7 million
Inventory at the end of the year = $585.8 million
solution
Journal Entry will as
Income Summary DR $1,517.4 million
Cost of goods sold CR $1,517.4 million
so correct option is C. Credit Cost of goods sold $1,517.4 million.
Bailey Corp. has the following information: Beginning Inventory (Jan 1) Ending Inventory (Dec 31) Raw Materials Inventory $ 25,300 $ 39,100 Work in Process Inventory $ 24,100 $ 26,600 Finished Goods Inventory $ 39,000 $ 21,900 Additional information for the year is as follows: Raw materials purchases $ 106,100 Direct labor $ 81,600 Manufacturing overhead applied $ 87,000 Indirect materials $ 0 Compute the cost of goods manufactured.
Answer:
See below
Explanation:
The cost of goods manufactured is computed as;
Beginning inventory
$25,300
Add ;
Raw materials purchases
$106,100
Cost of goods available for sale
$131,400
Less:
Ending inventory
$39,100
Cost of goods sold
$92,300
Add:
Beginning work in process
$24,100
Less:
Ending work in process
($26,600)
Cost of goods manufactured
$89,800
You're getting the idea that Julio's departure may negatively affect the employees' job attitudes. You're concerned about employee levels of job satisfaction, job involvement, organizational commitment, perceived organizational support, and employee engagement. What would you like to do on your first week as restaurant manager
Answer:
Consider conducting a comprehensive, anonymous poll of the employees to determine if they are happy in their current positions.
Explanation:
In the given scenario an employee Julio is leaving, and you feel this may affect the other employees attitude.
The best action to take when you are concerned with employee satisfaction is to conduct a comprehensive, anonymous poll of the employees to determine if they are happy in their current positions.
As the poll is anonymous this will encourage employees to respond honestly.
The information gained will give insight on level of employee satisfaction.
Measures can now be taken to ensure improvement in levels of job satisfaction, job involvement, organizational commitment, perceived organizational support, and employee engagement.
I don’t know what the percentages are for each one
Answer:
thats correct
Explanation:
Whitch of the following is required to be considered an entrepreneur?
Answer:
An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures
Explanation:
Verbal/linguistic learners prefer learning activities that involve reading, writing, and speaking.
False
True
Answer:
I would assume it is true
Explanation:
Wade Company estimates that it will produce 6,800 units of product IOA during the current month. Budgeted variable manufacturing costs per unit are direct materials $8, direct labor $13, and overhead $17. Monthly budgeted fixed manufacturing overhead costs are $8,300 for depreciation and $3,500 for supervision. In the current month, Wade actually produced 7,300 units and incurred the following costs: direct materials $51,800, direct labor $87,400, variable overhead $124,400, depreciation $8,300, and supervision $3,780.
Prepare a static budget report. Hint: The Budget column is based on estimated production while the Actual column is the actual cost incurred during the period. (List variable costs before fixed costs.) Wade Company Static Budget Report Difference Favorable Neither Favorable Budget Actual nor Unfavorable Were costs controlled?
Answer:
Wade Company
Static Budget Report
Budget Actual Variance
Units of production 6,800 7,300 500 Favorable
Variable manufacturing costs:
Direct materials $54,400 $51,800 $2,600 Favorable
Direct labor 88,400 87,400 1,000 Favorable
Overhead 115,600 124,400 (8,800) Unfavorable
Sub-Total $258,400 263,600 ($5,200) Unfavorable
Fixed manufacturing costs:
Depreciation $8,300 $8,300 $0 Neither
Supervision 3,500 3,780 (280) Unfavorable
Sub-Total $11,800 $12,080 ($280) Unfavorable
Total $270,200 $275,680 ($5,480) Unfavorable
Some costs were controlled (direct materials and labor). The overhead costs were not very well controlled.
Explanation:
a) Data and Calculations:
Estimated units of production of product IOA = 6,800 units
Budgeted variable manufacturing costs:
Direct materials $8 * 6,800 = $54,400
Direct labor $13 * 6,800 = $88,400
Overhead $17 * 6,800 = $115,600
Total= $38
Budgeted fixed manufacturing overhead costs:
Depreciation = $8,300
Supervision = 3,500
Total = $11,800
Actual:
Units produced = 7,300
Direct materials cost = $51,800
Direct labor cost = $87,400
Variable overhead = $124,400
fixed manufacturing overhead costs:
Depreciation = $8,300
Supervision = 3,780
Total = $12,080
Taggart Technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. The stock issue would have no effect on total assets, the interest rate Taggart pays, EBIT, or the tax rate. Which of the following is likely to occur if the company goes ahead with the stock issue?
A. The ROA will decline.
B. Taxable income will decline.
C. The tax bill will increase.
D. Net income will decrease.
E. The times-interest-earned ratio will decrease.
Answer:
C. The tax bill will increase.
Explanation:
Interest paid on debt finance is tax deductible , unlike the dividends paid on common stock which are not deductible for tax purposes,hence, by reducing debt capital so also the interest expense which has the potential to reduce taxable income would also reduce.
Hence, there would higher taxable profit and eventually, there would higher tax, in essence, the correct option is the option C
What is the variable cost of sterilizing an instrument using the new equipment
After graduating from dental school two years ago, Dr. Lauren Farish purchased the dental practice of a long-time dentist who was retiring. In January of this year she had to replace the out-dated autoclave equipment she inherited from the previous dentist. Now as she is preparing her budget for next year, she is concerned about understanding how her cost for sterilizing her dental instruments has changed. She has gathered the following information from her records:
Month Number of instruments used Total autoclave cost
January 634 $7,466
February 534 6,526
March 734 7,148
April 934 9,028
May 834 7,744
June 1,034 8,596
July 1,234 10,009
August 1,134 9,924
What is the variable cost of sterilizing an instrument using the new equipment? (Round answer to 2 decimal places, e.g. 15.25.)
Variable cost _____ $ per instrument
What is the fixed cost of the autoclave equipment? (Round answer to 0 decimal places, e.g. 5,275.)
Fixed cost $ ________
What is the cost formula that Dr. Farish should use for estimating autoclave sterilization costs for next year
Answer:
Results are below.
Explanation:
Giving the following information:
Month Number of instruments used Total autoclave cost
January 634 $7,466
February 534 6,526
March 734 7,148
April 934 9,028
May 834 7,744
June 1,034 8,596
July 1,234 10,009
August 1,134 9,924
To determine the fixed and variable cost, we need to use the high-low method:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (10,009 - 6,526) / (1,234 - 534 )
Variable cost per unit= $4.9757 per unit
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 10,009 - (4.9757*1,234)
Fixed costs= $3,869
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 6,526 - (4.9757*534)
Fixed costs= $3,869
Total cost= 3,869 + 4.9757x
x= number of instruments
State and federal governments actively support education at the primary, secondary, and collegiate levels. But they mandate education at the primary and secondary levels, while merely providing subsidies and loan guarantees at the collegiate level. Of the key rationales for public provision of education described, which do you think underpins this differential treatment?
Answer:
1. positive externalities
2. educational credit for the market failure
3. redistribution
4. failure to maximize the family utility
Explanation:
There are generally four rationales or logical thinking for the public provisions for education. They are the positive externalities, failure to maximize the family utility, educational credit for the market failure, redistribution.
Now each rationales provides reasons that educations is more likely to be underprovided without any intervention from the government. But many of them does not provide any reasons for the mandate of education.
Like suppose the government can support and solve any educational credit market failure by just offering some loan guarantees for the students while letting them chose to receive education or not.
Similarly government can also address positive externalities that are associated with productivity gains or just letting a person educated without any mandating it.
And finally, government redistributes the poor families through the progressive taxation or the offerings of free education without any mandating them.
December 31, 2021 and 2020, financial statements and key ratios are presented below (all numbers are in millions): 2021 2020 Accounts receivable (net) $ 20 $ 16 Net sales $ 115 $ 100 Cost of goods sold $ 60 $ 55 Net income $ 20 $ 17 Inventory turnover 5.22 Return on assets 10.3 % Equity multiplier 2.36 Dowling's 2021 profit margin is (rounded):
Answer:
17.40%
Explanation:
Profit margin = Net income / Net sales * 100
Profit margin = $20 million / $115 million * 100
Profit margin = 0.1739130 * 100
Profit margin = 17.3913%
Profit margin = 17.40%
So, Dowling's 2021 profit margin is 17.40%
What is the first step in the standard purchasing process practiced by most companies
Answer:
requisition
Explanation:
its correct :D
The first step in the standard purchasing process practised by most companies is requisition.
What do you understand by requisition?Requisition is a request for goods or services made by an employee to the person or department in a company that is responsible for purchasing. If the request is approved, that entity will submit a purchase order to a supplier for the goods or services. In this context, a requisition is also known as a purchase requisition.
Requisitions are usually submitted in a standardized format on paper form or through e-procurement software that automates some of the tasks involved and reduces duplication of effort. A requisition form, whether physical or digital, typically includes the details about the item requested, the date of the request, the individual and department making the request and the location where the goods should be delivered.
Copies of the requisition, the purchase order, the invoice and the packing slip are usually stored together.
Learn more about requisition, here:
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Bakerston Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year:
Beginning Balance Ending Balance
Raw materials $ 11,700 $ 15,800
Work in process $ 32,700 $ 14,600
Finished goods $ 102,000 $ 121,000
The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 17,500 machine-hours and incur $262,500 in manufacturing overhead cost. The following transactions were recorded for the year:
• Raw materials were purchased, $415,000.
• Raw materials were requisitioned for use in production, $410,900 ($382,000 direct and $28,900 indirect).
• The following employee costs were incurred: direct labor, $332,000; indirect labor, $71,000; and administrative salaries, $154,000.
• Selling costs, $115,000.
• Factory utility costs, $27,000.
• Depreciation for the year was $124,000 of which $110,000 is related to factory operations and $14,000 is related to selling, general, and administrative activities.
• Manufacturing overhead was applied to jobs. The actual level of activity for the year was 14,200 machine-hours.
• Sales for the year totaled $1,283,000.
Required:
a. Prepare a schedule of cost of goods manufactured in good form. (Do not round predetermined overhead rate. Input all amounts as positive values.)
b. Was the overhead underapplied or overapplied? By how much? (Do not round predetermined overhead rate. Input the amount as a positive value.)
c. Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. (Input all amounts as positive values.)
Answer:
Part a
Cost of goods manufactured
Beginning Work In Process Inventory $32,700
Add Manufacturing Costs :
Raw Materials Cost $410,900
Direct Labor $332,000
Applied Overheads $213,000 $955,900
Less Ending Work In Process Inventory ($14,600)
Cost of Goods Manufactured $974,000
Part b
Under-applied overheads = $23,900
Part c
income statement for the year
Sales $1,283,000
Less Costs of Sales
Beginning Finished Goods Inventory $102,000
Add Cost of Goods Manufactured $974,000
Less Ending Finished Goods Inventory ($121,000)
$1,197,000
Add Under - Applied Overheads $23,900 ($1,220,900)
Gross Profit $62,100
Explanation:
Applied Overheads = $262,500 / 17,500 x 14,200 = $213,000
Raw Materials Cost = $11,700 + $415,000 - $15,800 = $410,900
Actual Overheads = $28,900 + $71,000 + $27,000 + $110,000 = $236,900
Under-applied overheads = $236,900 - $213,000 = $23,900
What are The two segments of the organization's environment