Answer:
A. $938,339
B. $2,061 Underapplied
C. $4,900
Explanation:
a. Preparation of a schedule of cost of goods manufactured.
Baab Corporation
Schedule of Cost of Goods Manufactured
DIRECT MATERIAL
Opening 14,350
Add Purchased 315,350
Total Raw Material Available 329,700
Less: Closing Raw Material (22,350)
Less: Indirect Raw Material used in Production (26,700)
Raw Material used in production (A) 280,650
DIRECT LABOR (B) 377,350
FACTORY OVERHEAD APPLIED
($7.7*34070) (C ) 262,339
TOTAL MANUFACTURING COSTS (A+B+C) 920,339 (280,650+377,350+262,339)
Add Opening Work in Progress 27,350
Less: Closing Work in Progress (9,350)
Cost of goods manufactured 938,339
Calculation for Factory Overhead Recovery Rate using this formula
Factory Overhead Recovery Rate = Budgeted Factory Overhead/Machine Hours
Let plug in the formula
Factory Overhead Recovery Rate=256,795/33,350
Factory Overhead Recovery Rate= $ 7.70
2. Calculation for the overhead underapplied or overapplied
First step is to compute for Total Manufacturing Overhead
Computation of Manufacturing Overhead Incurred
Indirect Material 26,700
Indirect Labour 96,350
Factory Utilities Cost 10,350
Depreciation 131,000
Total Manufacturing Overhead 264,400
Second step is to Compute for Manufacturing Overhead Under or Over applied using this formula
Let plug in the formula
Manufacturing Overhead Under or Over applied = Actual Manufacturing Overhead Incurred - Manufacturing Overhead applied
Manufacturing Overhead Under or Over applied= 264,400 - 262,339
Manufacturing Overhead Under or Over applied= $2,061 Underapplied
3. Preparation of an income statement for the year.
Baab Corporation Income Statement
Sales 1,267,000
Add: Closing Finised Goods 77,350
Less: Opening Finished Goods (62,350)
Less: Selling & Administrative Expense:
Administrative Salaries 172,350
Depreciation relating to the selling, general & administrative activities 17,000
Selling Costs 147,350
Total Selling & Administrative Expense(336,700)
Less: Underapplied Overheads (2,061)
Less: Cost of Goods Manufactured (938,339 )
Profit/Loss $4,900
Selected transactions for Grouper’s Dog Care are as follows during the month of March.
March 1 Paid monthly rent of $1,030.
3 Performed services for $120 on account.
5 Performed services for cash of $65.
8 Purchased equipment for $515. The company paid cash of $70 and the
balance was on account.
12 Received cash from customers billed on March 3.
14 Paid wages to employees of $450.
22 Paid utilities of $62.
24 Borrowed $1,290 from Grafton State Bank by signing a note.
27 Paid $190 to repair service for plumbing repairs.
28 Paid balance amount owed from equipment purchase on March 8.
30 Paid $1,550 for six months of insurance.
Journalize the transactions.
Answer and Explanation:
The Journal entries are shown below:-
1. Rent expense Dr, $1,030
To cash $1,030
(Being cash paid is recorded)
2. Account receivable $120
To service revenue $120
(Being service revenue is recorded)
3. Cash $120
To Service revenue $120
(Being cash received is recorded)
4. Equipment Dr, $515
Cash Dr, $70
To Accounts payable $445
(Being cash received is recorded)
5. Cash Dr $120
To account receivable $120
(Being cash received is recorded)
6. Wage expense $450
To cash $450
(Being cash paid is recorded)
7. Utility expense Dr, $62
To cash $62
(Being cash paid is recorded)
8. Cash Dr, $1,290
To notes payable $1,290
(Being cash received is recorded)
9. Repair & maintenance Dr, $190
To cash $190
(Being cash paid is recorded)
10. Accounts payable Dr, $445
To cash $445
(Being cash paid is recorded)
11. Prepaid Insurance Dr, $1,550
To cash $1,550
(Being cash paid is recorded)
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.
Merchandise with a list price of $7,500 and a cost of $7,000 is sold on account, terms 1/10, n/30. Prior to payment, merchandise with a list price of $1,000 and a cost of $800 is returned. The correct amount is paid within the discount period. Record the following transactions, using the integrated financial statement framework that follows:_______. a. Sold the merchandise. If a financial statement doesn't require an entry, select "No Effect" and enter "0" in amount field. Assets = Liabilities + Stockholders' Equity Cash Accounts Receivable Merchandise Inventory Accounts Payable Capital Stock Retained Earnings 7,500 7,000 500 Statement of Cash Flows Income Statement No Effect $ Sales $ 7,500 Cost of Goods Sold 7,000 500 b. Received the returned merchandise. If a financial statements doesn't require an entry, select "No Effect" and enter "0" in amount field. Assets = Liabilities + Stockholders' Equity Cash Accounts Receivable Merchandise Inventory Accounts Payable Capital Stock Retained Earnings 1,000 800 200 Statement of Cash Flows Income Statement No Effect $ Sales Ret & Allow 1,000 Cost of Goods Sold 800 200 c. Received the amount owed. If all the financial statements doesn't require any entry. Select "No Effect" and enter "0" in amount field. Assets = Liabilities + Stockholders' Equity Cash Accounts Receivable Merchandise Inventory Accounts Payable Capital Stock Retained Earnings 7,000 7,000 Statement of Cash Flows Income Statement Operating $ Sales Discounts
Answer:
I used an excel spreadsheet since there is not enough room here.
Explanation:
Which kind of CRM fits into the category of web analytics?
"BLANK" fits into the category of web analytics.
Answer:
Clickstream analysis fits into the category of web analytics.
Explanation:
Clickstream analysis records browsing data and would be best for web analytics.
Clickstream analysis kind of CRM fits into the category of web analytics. Clickstream data are an in-depth record of how users move around a website while completing a task. The log typically contains the pages visited, the length of time spent on each page, how the user got there, and the next step.
Why clickstream analysis is important in web mining?Predicting where customers will click next based on their prior click-through patterns is very helpful in clickstream analysis. Based on actual user behavior, customer personas can be developed using this insight.
The tracking and analysis of website visits constitute clickstream analysis, a subset of Web analytics see separate entry. While there are other methods for gathering this information, clickstream analysis typically makes use of Web server log files to track and gauge website activity.
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During the spring and summer of 2014, Edward and Geneva Irvine received numerous "hang-up" phone calls, including three calls in the middle of the night. With the help of their local phone company, the Irvine’s learned that many of the calls were from the telemarketing department of the Akron Beacon Journal in Akron, Ohio. The Beacon’s sales force was equipped with an automatic dialing machine. During business hours, the dialer was used to maximize productivity by calling multiple phone numbers at once and connecting a call to a sales representative only after it was answered. After business hours, the Beacon programmed its dialer to dial a list of disconnected numbers to determine whether they had been reconnected. If the dialer detected a ring, it recorded the information and dropped the call. However, if the automated dialing system crashed, which happened frequently, it redialed the entire list all over again. The Irvine’s filed a suit in an Ohio state court against the Beacon, alleging, among other things, an invasion of privacy.
Required:
In whose favor should the court rule, and why?
Answer:
This is an actual court case that went all the way up to the Court of Appeals of Ohio's Ninth District.
It was a very complex case (it also included another case against Beacon for trying to gather information regarding the family, but it was ruled in their favor) were both sides appealed different decisions. The appeals court ruled 1 out of 14 assignments of error in favor of Akron beacon Journal, but it was a minor issue. Most of the original outcome was upheld, with the Irvines being assigned more than $100,000 in different types of damages + their attorney's fees.
Akron beacon Journal was found guilty of violating the Telephone Consumer Protection Act and invading the Irvines' privacy.
Using this type of machines are illegal and what makes things worse is that the marketing department of Beacon knew it wasn't working properly and they kept resetting it. It made a lot of calls to the Irvines at hours that no one would expect them, all after or before working hours. Their actions were deliberate since they were in desperate need of new subscribers to their newspaper.
A company has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during Year 1, its first year of operations:______.
January 2 Issues 100,000 shares of common stock for $29 per share.
February 6 Issues 2,400 shares of 9% preferred stock for $11 per share.
September 10 Purchases 11,000 shares of its own common stock for $34 per share.
December 15 Resells 5,500 shares of treasury stock at $39 per share.
In its first year of operations, the company has net income of $154,000 and pays dividends at the end of the year of $94,500 ($1 per share) on all common shares outstanding and $2,160 on all preferred shares outstanding. Required:
Prepare the stockholders' equity section of the balance sheet for the company as of December 31, Year 1.
Answer:
Stockholders' EquityPreferred 9% Stock, $10 par value
(2,400 stocks authorized) $24,000
Paid-in Capital in Excess of Par $2,400 $26,400
Common Stock
(94,500 stocks outstanding) $100,000
Paid-in Capital in Excess of Par $2,827,500 $2,927,500
Total paid in capital $2,953,900
Retained Earnings $59,500
Treasury Stock (5,500 stocks at cost) ($187,000)
Total Stockholders' Equity $2,826,400
Explanation:
Jan. 2 Issued 100,000 shares of common stock for $2,900,000.
Dr Cash 2,900,000
Cr Common stock 100,000
Cr Paid-in capital in excess of par value - common stock 2,800,000
February 6 Issues 2,400 shares of 9% preferred stock for $11 per share.
Dr Cash 26,400
Cr Preferred stock 24,000
Cr Paid-in capital in excess of par value - preferred stock 2,400
September 10 Purchases 11,000 shares of its own common stock for $34 per share.
Dr Treasury stock 374,000
Cr Cash 374,000
December 15 Resells 5,500 shares of treasury stock at $39 per share.
Dr Cash
Cr Treasury stock 187,000
Cr Paid-in capital in excess of par value - common stock 27,500
retained earnings = $154,000 - $94,500 = $59,500
Preferred Stock $24,000
Common Stock $100,000
Paid-in capital in excess of par value - preferred stock $2,400
Paid-in capital in excess of par value - common stock $2,827,500
Retained Earnings $59,500
Treasury Stock $187,000
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
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.
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
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
A Georgia state law requires the use of contoured rear-fender mudguards on trucks and trailers operating within Georgia state lines. The statute further makes it illegal for trucks and trailers to use straight mudguards. In approximately thirty-five other states, straight mudguards are legal. Moreover, in Florida, straight mudguards are explicitly required by law. There is some evidence suggesting that contoured mudguards might be a little safer than straight mudguards.
a. Discuss whether this Georgia statute violates any constitutional provisions.
b. State the law, define it apply it and make your conclusion. Richard is an employee of the Dun Construction Corp. While delivering materials to a construction site, he carelessly backs Dun's truck into a passenger vehicle driven by Green. This is Richard's second accident in six months. When the company owner, Dun, learns of this latest accident, a heated discussion ensues, and Dun fires Richard. Dun is so angry that he immediately writes a letter to the union of which Richard is a member and to all other construction companies in the community, stating that Richard is the "worst driver in the city" and that "anyone who hires him is asking for legal liability". Richard files a suit against Dun, alleging libel on the basis of the statements made in the letters. Discuss the results.
Answer: Defamation.
Explanation:
The state has the power to make laws which protect, and maintain the order and general safety of its citizens. The state of Georgia has found that contoured mud glass are safer unlike straight mud glass. The state statue has the potential of affecting trade and commerce because this trucks are used in the haulage of goods and services from one state to another.
B. Defamation.
what Dun has done is a defamation of character on the part of Richard. This is because of the words used in Dun letters sent to the union Richard belonged to and other constirction company’s was intended to Harm the reputation and values Richard has worked hard to achieve.
Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2015, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2015, follow.Additional Information Itemsa. An analysis of WTI's insurance policies shows that $3,864 of coverage has expired.b. An inventory count shows that teaching supplies costing $3,349 are available at year-end 2015.c. Annual depreciation on the equipment is $15,458.d. Annual depreciation on the professional library is $7,729.e. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,900, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2016.f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,700 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)g. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.h. The balance in the Prepaid Rent account represents rent for December.WELLS TECHNICAL INSTITUTEUnadjusted Trial BalanceDecember 31, 2015Debit Credit Cash $26,189 Accounts receivable 0 Teaching supplies 10,071 Prepaid insurance 15,110 Prepaid rent 2,015 Professional library 30,217 Accumulated depreciation—Professional library $9,066 Equipment 70,500 Accumulated depreciation—Equipment 16,117 Accounts payable 32,840 Salaries payable 0 Unearned training fees 14,500 Common stock 12,812 Retained earnings 51,250 Dividends 40,291 Tuition fees earned 102,740 Training fees earned 38,275 Depreciation expense—Professional library 0 Depreciation expense—Equipment 0 Salaries expense 48,350 Insurance expense 0 Rent expense 22,165 Teaching supplies expense 0 Advertising expense 7,051 Utilities expense 5,641 Totals $277,600 $277,600 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.2. Prepare an adjusted trial balance
Answer:
1) a. An analysis of WTI's insurance policies shows that $3,864 of coverage has expired.
Dr Insurance expense 3,864
Cr Prepaid insurance 3,864
b. An inventory count shows that teaching supplies costing $3,349 are available at year-end 2015.
Dr Teaching supplies expense 6,722
Cr Teaching supplies 6,722
c. Annual depreciation on the equipment is $15,458.
Dr Depreciation expense 15,458
Cr Accumulated depreciation: equipment 15,458
d. Annual depreciation on the professional library is $7,729.
Dr Depreciation expense 7,729
Cr Accumulated depreciation: professional library 7,729
e. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,900, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2016.
Dr Unearned training fees 5,800
Cr Training fees earned 5,800
f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,700 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)
Dr Accounts receivable 11,750
Cr Tuition fees earned 11,750
g. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
Dr Salaries expense 400
Cr Salaries payable 400
h. The balance in the Prepaid Rent account represents rent for December.
Dr Rent expense 2,015
Cr Prepaid rent 2,015
2) Wells Technical Institute (WTI)
Adjusted Trial Balance
For the year ended December 31, 2015
Debit Credit
Cash $26,189
Accounts receivable $11,750
Prepaid rent $0
Teaching supplies $3,349
Prepaid insurance $11,246
Professional library $30,217
Accumulated depreciation: $16,795
Professional library
Equipment $70,500
Accumulated depreciation: $31,575
Equipment
Accounts payable $32,840
Salaries payable $400
Unearned training fees $8,700
Common stock $12,812
Retained earnings $51,250
Dividends $40,291
Tuition fees earned $114,490
Training fees earned $44,075
Depreciation expense: $7,729
Professional library
Depreciation expense: $15,458
Equipment
Salaries expense $48,750
Insurance expense $3,864
Rent expense $24,180
Teaching supplies expense $6,722
Advertising expense $7,051
Utilities expense $5,641
Totals $312,937 $312,937
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.
_____________ 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.
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Crane Company has these comparative balance sheet data:
CRANE COMPANY Balance Sheets December 31
2020 2019
Cash $33,900 $67,800
Accounts receivable (net) 158,200 135,600
Inventory 135,600 113,000
Plant assets (net) 452,000 406,800
$779,700 $723,200
Accounts payable $113,000 $135,600
Mortgage payable (15%) 226,000 226,000
Common stock, $10 par 316,400 271,200
Retained earnings 124,300 90,400
$779,700 $723,200
Additional information for 2020:
1. Net income was $29,200.
2. Sales on account were $379,100. Sales returns and allowances amounted to $28,000.
3. Cost of goods sold was $203,800.
4. Net cash provided by operating activities was $58,000.
5. Capital expenditures were $27,500, and cash dividends were $19,600.
Compute the following ratios at December 31, 2017. Round current ratio to 2 decimal places, and all other answers to 1 decimal place, Use 365 days for calculation.
a. Current ratio _______:1
b. Accounts receivable turnover _______times
c. Average collection period _______days
d. Inventory turnovefr _______times
e. Days inventory _______days
f. Free cash flow $_______
Answer and Explanation:
A. Current ratio= current assets/current liabilities
= 33900+158200+135600/113000 = 2.9
B. Account Receivable Turnover = Sales/ Average account receivables
= 379100 -28000/158200+135600/2) = 2.39
c) Average collection period =
365/ account receivable turnover
= 365/2.39 =
152.72 days
D. inventory turnover = cost of goods sold / average inventory
= 203800/135600+113000/2 = 1.64
E. Days in inventory = 365/inventory turnover=
365/1.64 = 222.561 Days
F. Cash debt coverage
= cash from operating activities - dividend / total debt
= (58000 - 19600 )/(226000) = 0.17
G. Current cash debt coverage = net cash provided by the operating activities / average current liabilities
=58000 /113000 + 135600/2) = 0.467
H. Cash flow available = cash flow from operating activities - Capital Expenditure- Cash Dividend
$(58000-27500-19600)
= $10900
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
Record year-end adjusting entries (LO3-3) Below are transactions for Wolverine Company during 2021. On December 1, 2021, Wolverine receives $4,000 cash from a company that is renting office space from Wolverine. The payment, representing rent for December and January, is credited to Deferred Revenue. Wolverine purchases a one-year property insurance policy on July 1, 2021, for $13,200. The payment is debited to Prepaid Insurance for the entire amount. Employee salaries of $3,000 for the month of December will be paid in early January 2022. On November 1, 2021, the company borrows $15,000 from a bank. The loan requires principal and interest at 10% to be paid on October 30, 2022. Office supplies at the beginning of 2021 total $1,000. On August 15, Wolverine purchases an additional $3,400 of office supplies, debiting the Supplies account. By the end of the year, $500 of office supplies remains.Required:
Record the necessary adjusting entries at December 31, 2021, for Wolverine Company. You do not need to record transactions made during the year. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
Answer: See explanation
Explanation:
1. Dr Deferred revenue 2,000
Cr. Rent revenue 2,000
2 Dr. Insurance expense 6,600
Cr. Prepaid insurance 6,600
3 Dr Salaries expense 3,000
Cr Salaries payable 3,000
4 Dr Interest expense 250
Cr Interest payable 250
5 Dr Supplies expense 3,900
Cr Supplies. 3900
N. B:
Rent revenue for December was calculated as:
= $4,000 x 1/2
= $2,000
Insurance expense for the current year was calculated as:
= $13,200 x 6/12
= $6,600
Interest expense:
= $15,000 x 10% x 2/12
= $15000 × 0.1 × 2/12
= $250
Supplies expense:
= $1,000 + $3,400 - $500
= $3,900
Ben: We need to select the team members for the Dragon Owls project. I have identified seven essential skills we need to make this project successful: leadership skills, creative skills, conceptual skills, collaborative skills, technical skills, interpersonal skills, and planning skills. Therefore, we should bring at least seven people on to the team.
Steve: Instead, we should identify all of the departments that have a stake in the success of the Dragon Owls project and ensure that a representative from each department is on the Dragon Owls team.
Curtis: I have a better idea. Since the Dragon Owls success is so important, it should contain the top performers in the entire organization.
Which of the following is assumed by Ben's argument?
a. No potential member of the Dragon Owls project has better leadership skills than conceptual skills.
b. Every potential member of the Dragon Owls project has outstanding skills in at least one respect.
c. Some potential members of the Dragon Owls project have creative skills and planning skills.
d. No potential member of the Dragon Owls team has both conceptual skills and interpersonal skills.
e. Every potential member of the Dragon Owls team with technical skills also has collaborative skills.
Answer:
b.
Explanation:
Based on Ben's idea he is stating that every potential member of the Dragon Owls project has outstanding skills in at least one respect. He seems to know that potential candidates can possess various skills that may be useful to the overall project. Since he has identified seven key skills that are detrimental to the success of the project, he basically wants at least one member of the project that has an exceptional skill level in at least one of the needed skills. That way by having seven members, each of which is exceptional at one of these skills then he would have experts in every skill to get the project done right.
National Orthopedics Co. issued 8% bonds, dated January 1, with a face amount of $550,000 on January 1, 2021. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. (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.)
Required:
1. Determine the price of the bonds at January 1, 2021.
2. Prepare the journal entry to record their issuance by National on January 1, 2021.
3. Prepare an amortization schedule that determines interest at the effective rate each period.
4. Prepare the journal entry to record interest on June 30, 2021.
5. Prepare the appropriate journal entries at maturity on December 31, 2024.
Answer:
1) the price of each bond:
PV of face value = $1,000 / 1.05⁸ = $676.84
PV of coupon payments = $40 x 6.4632 (PV annuity factor, 5%, 8 periods) = $258.53
market price per coupon = $935.37
2) journal entry to record issuance of the bonds:
January 1, 2021, bonds issued at a discount
Dr Cash 514,453.50
Dr Discount on bonds payable 35,546.50
Cr Bonds payable 550,000
3) I used an excel spreadsheet
4) June 30, 2021, first coupon payment
Dr Interest expense 25,722.68
Cr Cash 22,000
Cr Discount on bonds payable 3,722.68
5) December 31, 2024, last coupon payment
Dr Interest expense 27,236.45
Cr Cash 22,000
Cr Discount on bonds payable 5,236.45
December 31, 2024, bonds are redeemed
Dr Bonds payable 550,000
Cr Cash 550,000
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
Imagine that your friend is the CEO of a company, called Magna Clothes, that manufactures cool new clothing accessories for both men and women. Now that it has achieved a large following and a level of success in the United States, Magna Clothes wants to start conducting business abroad. Your friend knows you have taken a management class and has asked you to explain the history and significance of the World Trade Organization (WTO). Which of the following statements are true?
a. The WTO seeks to establish impartial procedures for resolving trade disputes among its members.
b. The WTO seeks to reduce remaining trade barriers through multilateral negotiations.
c. The WTO is headquartered in Belgium.
d. Existence of the WTO has allowed most member countries to replace their local currencies with a universal currency beginning in 2002.
Answer:
a) & b) are true. c) & d) are false.
Explanation:
WTO is an international (intergovernmental) organisation, supervising international trade between countries.
a) is true. It seeks to establish impartial procedures for resolving trade disputes among its members.
It seeks to reduce remaining trade barriers through multilateral negotiations, b) is true
c) is false. It is headquartered in Geneva, Switzerland (not Belgium)
d) is false. Existence of the WTO has allowed most member countries to replace their local currencies with a universal currency beginning in 2002. It is an international trade organisation, not monetary policy organisation.
A company has the following adjusted trial balance:________. Account Debit Credit Cash $1,100 Accounts Receivable 1,000 Inventory 1,900 Supplies 1,800 Prepaid Rent 400 Land 5,800 Building 40,500 Accumulated Depreciation—Building $8,900 Accounts Payable 7,800 Unearned Revenue 4,000 Notes Payable, due 2020 2,400 Common Stock 6,600 Retained Earnings 3,200 Dividends 900 Service Revenue 32,200 Rent Expense 1,500 Supplies Expense 1,200 Salaries Expense 6,100 Depreciation Expense—Building 1,000 Utilities Expense 1,900 Totals $65,100 $65,100 Which closing entry is needed?
Answer: Debit Retained Earnings $900 and credit Dividends $900
Explanation:
When accounting for dividends at the end of the year they should be removed from the Retained Earnings because this is the account that they will be funded from.
As Retained Earnings is an Equity account, when it is reduced it will be debited so in this case the $900 for dividends will be debited. The Dividends being a temporary account are debited when the Dividends are declared by the company during the year.
When the company wants to close off the account they will then transfer it to the Retained Earnings account by crediting it.
Problem 13-1 A company currently using an inspection process in its material receiving department is trying to install an overall cost reduction program. One possible reduction is the elimination of one inspection position. This position tests items for which the probability of a material defect averages 0.04. By inspecting all items, the inspector is able to remove all defects. The inspector can inspect 50 units per hour. The hourly rate including fringe benefits for this position is $9. If the inspection position is eliminated, defects will go into product assembly and will have to be replaced later at a cost of $10 each when they are detected in final product testing. Assume that the line will operate at the same rate (i.e., the inspection rate) if the inspection operation was eliminated.
Required:
a. If the inspector position is eliminated, what will the hourly cost of defects be?
b. Should this inspection position be eliminated based on costs alone?
c. What is the cost to inspect each unit?
Answer:
a. $20
b. No.
c. $0.18 per unit
Explanation:
a. Hourly cost = Material defects * Cost to replace
50 units are inspected per hour with a 0.04 chance of defects.
= 50 * 0.04 = 2 units
Hourly cost = 2 * 10
= $20
b. No. Based on costs alone, Paying the inspector $9 an hour would be more cost effective than paying $20 to replace the defect.
c. Cost of inspecting each unit = Instructor fee/ Units inspected in an hour
= 9 / 50
= $0.18 per unit
The cost of direct materials would most likely be a(n): a. Variable cost. b. Fixed cost. c. Indirect cost. d. Differential cost.
Answer:
a. Variable cost
Explanation:
Direct Materials are traceable to cost object (product) and they usually vary with the quantities produced. Thus cost of direct materials would most likely be Variable cost.
You have a co-worker at work that you are also friends with. One day, a borrower comes in and meets with him. You overhear the borrower tell your co-worker that he has a loan with his mom and dad for about $10,000 that he pays $300 a month. Your co-worker proceeds as if he didn’t hear your borrower at all. Once he has taken the application, he tells the borrower that he qualifies for maximum financing for a $250,000 home. However, that does NOT take into consideration the $300 a month the borrower pays his parents for the loan.
Did your coworker do anything unethical in this transaction?
Assuming you feel this was an unethical situation, how do you handle this? Remember, this is your friend and co-worker
Answer:
1. My co-worker has indeed done something unethical as it goes against the ethics of the financial profession. By ignoring the outstanding loan that the applicant has with his parents in his risk assessment of the applicant, he has opened the company to more risk exposure that could be costly to the company. My co-worker has therefore been derelict in his duty for whatever reason and engaged in unethical conduct.
2. As this is my co-worker and friend, I would not think to get him in trouble as a first resort by reporting to our immediate manager. Rather I will go an discuss with him to make him see the error in what he just did because it might have been a mistake.
I will advise him to call the applicant back and reduce the available financing. On the off chance he refuses, I would be forced to report him to our supervisor/ manager.
On april 1, Windsor, Inc. began operations. The following transactions were completed during the month.
1. Issued common stock for $28,300 cash.
2. Obtained a bank loan for $8,300 by issuing a note payable.
3. Paid $13,000 cash to buy equipment.
4. Paid $1,400 cash for April office rent.
5. Paid $1,700 for supplies.
6. Purchased $710 of advertising in the Daily Herald, on account.
7. Performed services for $21,200: cash of $2,360 was received from customers, and the balance of $18,840 was billed to customers on account.
8. Paid $470 cash dividend to stockholders.
9. Paid the utility bill for the month, $2,360.
10. Paid Daily Herald the amount due in transaction (6).
11. Paid $50 of interest on the bank loan obtained in transaction (2).
12. Paid employees’ salaries, $7,550.
13. Received $14,160 cash from customers billed in transaction (7).
14. Paid income tax, $1,770.
Required:
Journalise the transactions.
Answer:
S/n General Journal Debit Credit
1. Cash $28,300
Common stock $28,300
(To record issuance of common stock)
2. Cash $8,300
Note payable $8,300
(To record issuance of note payable)
3. Equipment $13,000
Cash $13,000
(To record purchase of equipment)
4. Rent expense $1,400
Cash $1,400
(To record rent expense)
5. Supplies $1,700
Cash $1,700
(To record purchase supplies )
6. Advertising expense $710
Accounts payable $710
(To record advertising expense)
7. Cash $2,360
Accounts receivable $18,840
Service revenue $21,200
(To record service revenue)
8. Cash dividends $470
Cash $470
(To record cash paid for dividends )
9. Utilities expense $2,360
Cash $2,360
(To record utilities expense)
10. Accounts payable $710
Cash $710
(To record payment to creditors)
11. Interest expense $50
Cash $50
(To record interest expense)
12. Salaries and wages $7,550
expense
Cash $7,550
(To record salaries and wages expense)
13. Cash $14,160
Accounts receivable $14,160
(To record amount received from customers)
14. Tax Expenses $1,770
Account payable $1,770
(To record income tax expenses)
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.
Finance, or financial management, requires the knowledge and precise use of the language of the field. Match the terms relating to the basic terminology and concepts of the time value of money on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term.
Discounting:A. Concept that maintains that the owner of a cash flow will value it differently, depending on when it occur.
Time value of money terms:B. The amount towhich an ndividual cash flow or series of cash payments or receipt ewill grow over a period of time when earning interest at a given rate of interest.
Amortized loan:C. A type of security that is frequently used in mortgages and requres that the loan payment contain both interest and loan principal.
Ordinary annulty:D. An interest rate that reflects the return required by a lender and paid by a borrower, expressed as a percentage of the principal borrowed.
Annual percentage rate:E. A series of equal cash flows that occur at the end of each of the equally rate spaced intervals (such as daily, monthly, quarterly, and so on)
Annuity due: F. A table that reports the results of the disaggregation of each payment on an amortized loan, such as a mortgage, into its interest and loan repayment components.
Perpetuity:G. A process that involves calc lating the current value of a future cash flow or series of cash flows based on a certain interest rate Future value:H. A rate that represents the return on an investor's best available alternative investment of equal risk.
Amortization schdule:I. A series of equal (constant) cash flows (receipts or payments) that are schedule expected to continue forever
Opportunity cost of funds:J. A series of equal cash flows that occur at the beginning of each of the equaly spaced intervas (such as daily, monthly, quarterly, and so on)
Time value of money calculations can be solved using a mathernatical equation, a financial calculator, or a spreadsheet. Which of the following equations can be used to solve for the present alue of an annuity due?
A. PMT x (1-(1/ (1 + r)/r) x (1 +r)
B. PMT x (1-(1/ (1 + r)n]}
C. PMT/r
D. PMT x{[(1+r)n-1]/r*(1+r)
Answer:
1. Time value of money.
2. Future value.
3. Amortized loan.
4. Annual percentage rate.
5. Annuity due.
6. Amortization schedule.
7. Discounting.
8. Opportunity cost of funds.
9. Perpetuity.
10. Ordinary annuity.
11. A
Explanation:
1. Time value of money: concept that maintains that the owner of a cash flow will value it differently, depending on when it occur.
2. Future value: the amount to which an individual cash flow or series of cash payments or receipt will grow over a period of time when earning interest at a given rate of interest.
3. Amortized loan: a type of security that is frequently used in mortgages and requires that the loan payment contain both interest and loan principal.
4. Annual percentage rate: an interest rate that reflects the return required by a lender and paid by a borrower, expressed as a percentage of the principal borrowed.
5. Annuity due: A series of equal cash flows that occur at the end of each of the equally rate spaced intervals (such as daily, monthly, quarterly, and so on)
6. Amortization schedule: a table that reports the results of the disaggregation of each payment on an amortized loan, such as a mortgage, into its interest and loan repayment components.
7. Discounting: a process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate.
8. Opportunity cost of funds: a rate that represents the return on an investor's best available alternative investment of equal risk.
9. Perpetuity: a series of equal (constant) cash flows (receipts or payments) that are schedule expected to continue forever.
10. Ordinary annuity: a series of equal cash flows that occur at the beginning of each of the equally spaced intervals (such as daily, monthly, quarterly, and so on).
11. PMT x (1-(1/ (1 + r)/r) x (1 +r): an equation that can be used to solve for the present value of an annuity due. It is known as Present Value of an Annuity.
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
Balance Sheet Missing element problem.Plz help?
I tried but didn't make it correct.Can anyone plz help?
The following December 31, 2009, fiscal year-end account balance information is available for the Stonebridge Corporation:
Cash and cash equivalents $ 5,000
Accounts receivable (net) 20,000
Inventories 60,000
Property, plant, and equipment (net) 120,000
Accounts payable 44,000
Wages payable 15,000
Paid-in-capital 100,000
The only asset not listed is short-term investments. The only liabilities not listed are a $30,000 note payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.5:1.
Required:
Determine the following at December 31, 2009:
Total current assets ??
Short-term investments ??
Retained earnings ??
Answer:
1. Current ratio = Total current assets / Current liabilities
Total current assets = Current liabilities * Current ratio
Total current assets = ($44,000 + $15,000 + $1,000) + 1.5
Total current assets = $60,000 * 1.5
Total current assets = $90,000
2. Short Investments = Total current assets - (Cash + Accounts receivable + Inventories)
Short Investments = $90,000 - ($5,000 + $20,000 + $50,000)
Short Investments = $90,000 - $75,000
Short Investments = $15,000
3.Calculation of Retained earnings
Total assets = Long term assets + Current assets = $120,000 + $90,000 + $210,000
Retained earnings = Total assets - (Current liabilities + Long term liabilities + Paid in capital
Retained earnings = $210,000 - ($60,000 + $30,000 + $100,000)
Retained earnings = $210,000 - $190,000
Retained earnings = $20,000