Answer:
C)an example of frictional unemployment
Explanation:
Frictional unemployment can be regarded as " search unemployment" and it's a type of unemployment which can be as a result of the individual circumstances, this is the period of time used between jobs by workers trying to search for jobs or moving from initial job to another.
Scenario #3: Isaiah
Isaiah is in his 50s and currently does not have a retirement fund. However, he recently read a few articles about the insufficient savings of people in retirement and, as a result, he decides he wants to start now. He saves $500 per month for 15 years and earns 7% by investing in the stock market* through an index fund.
9. What is the total balance in the account after 15 years?
10. How much of the total did Isaiah contribute himself?
11. How much money did Isaiah make through compounded returns in this investment account?
12. Explain why Isaiah’s total balance is less than Pamela’s even though his money earned the same rate of return and his monthly contribution was higher than hers.
______________________________________________________
Question 4: If someone you know wanted to start investing, what best practices would you recommend they follow so they can harness the power of compounding? Explain your reasoning.
please hurry
Answer:
did anyone ever get the answer to this?
Explanation:
9. The total balance in Isaiah's retirement savings account at the end of 15 years is $159,405.62.
10. The total amount that Isaiah contributed to the savings account is $90,000.
11. Through compounded returns in the investment account, Isaiah earned interest income of $69,405.62.
12. The reason Isaiah's account balance is less than Pamela's is because Isaiah started contributing in his 50s, while Pamela started in her 30s.
13. The best strategy to harness the power of compounding is to start saving early. If it were possible, start saving in your 20s. When you start savings early, the investor reaps greatly from the power of multiplication inherent in compounding interest.
Data and Calculations:
Monthly savings into retirement account = $500
Period of savings = 15 years or 180 months
Interest rate = 7%
N (# of periods) = 180 months (15 years x 12)
I/Y (Interest per year) = 7%
PV (Present Value) = 0
PMT (Periodic Payment) = $500
Results
FV (Future Value) = $159,405.62
Sum of all periodic payments = $90,000.00 ($500 x 180)
Total Interest = $69,405.62
Thus, if Isaiah had started saving in his 30s like Pamela, he could be having $905,780.38 in his retirement savings account by the time he is 65 years old.
Learn more: https://brainly.com/question/24674971 and https://brainly.com/question/15878003
Grove Co. acquired a production machine on January 1, 2019, at a cost of $575,000. The machine is expected to have a four-year useful life, with a salvage value of $118,000. The machine is capable of producing 88,000 units of product in its lifetime. Actual production was as follows: 19,360 units in 2019; 28,160 units in 2020; 24,640 units in 2021; 15,840 units in 2022. Following is the comparative balance sheet presentation of the net book value of the production machine at December 31 for each year of the asset’s life, using three alternative depreciation methods (items a–c):
Productiom Machine Net of Accumulated Depreciation
At December 31
Depreciation Method 2019 2018 2017 2016
a. 80000 152000 264000 392000
b. 80000 80000 120000 240000
c. 80000 180000 280000 380000
Required:
Identify the depreciation method used for each of the preceding comparative balance sheet presentations.If a declinining balance method is used be sure to indicate the percentage.
Answer:
a. Production Units method
b. Straight Line depreciation
c. Double declining method
Explanation:
Straight Line Depreciation: [575,000 - 118,000] / 4 = 114,250 per year
Declining Balance Method :
Year 2019 : 19,360 / 88,000 * [ 575,000 - 118,000 ] = 100,540
Year 2020 : 28,160 / 88,000 * [ 575,000 - 118,000 ] = 146,240
Year 2021 : 24,640 / 88,000 * [ 575,000 - 118,000 ] = 127,960
Year 2022 : 15,840 / 88,000 * [ 575,000 - 118,000 ] = 82,260
A young graduate looks to save money to buy a house 5.00 years from today. He is somewhat conservative and will invest his money in a bond fund that pays 6.00% APR with quarterly compounding. The graduate invests $12,370.00 today. How much will his account be worth in 5.00 years
Answer:
FV= $16,660.60
Explanation:
Giving the following information:
Number of periods= 5*4= 20 quarters
Interest rate= 0.06/4= 0.015
Initital investment= $12,370
To calculate the future value after 5 years, we need to use the following formula:
FV= PV*(1+i)^n
FV= 12,370*(1.015^20)
FV= $16,660.60
Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $6,000 for direct materials, $9,900 for direct labor, and $7,128 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $3,000 for direct materials and $4,900 for direct labor.
Required:
Calculate the overhead cost be added to Job W at year-end
Answer:
$6,811
Explanation:
Job V had $9,900 of direct labor and $7,128 of overhead was applied to the job
= $9,900 ÷ $7,128
= $1.39 overhead rate.
This means that the application was based on taking $9,900 of Direct labor × $1.39 rate = $7,128 overhead
For Job W, take $4,900 DL × same $1.39 rate = $6,811
Therefore, the overhead cost to be applied to job w at year end is $6,811
Swifty Corporation had the following selected transactions.
1. Kim Leppard invested $7,274 cash in the business in exchange for common stock.
2. Paid office rent of $1,382.
3. Performed consulting services and billed a client $6,838.
4. Declared and paid a $873 cash dividend.
Answer:
Missing word "Indicate the effect each transaction has on the accounting equation, (Assets = Liabilities + Stockholders' Equity), using plus and minus signs."
Assets = Liabilities + Stockholders' Equity
1. Increase(+) No Effect Increase(+)
2. Decrease(-) No Effect Decrease(+)
3. Increase(+) No Effect Increase(+)
4. Decrease(-) No Effect Decrease(+)
On January 1, 2021, Red Flash Photography had the following balances: Cash, $20,000; Supplies, $8,800; Land, $68,000; Deferred Revenue, $5,800; Common Stock $58,000; and Retained Earnings, $33,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $28,000. 2. May 20 Provide services to customers for cash, $43,000, and on account, $38,000. 3. August 31 Pay salaries to employees for work in 2021, $31,000. 4. October 1 Paid for one year's rent in advance, $20,000. 5. November 17 Purchase supplies on account, $30,000. 6. December 30 Pay dividends, $2,800.
The following information is available on December 31, 2021:
1. Employees are owed an additional $4,800 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $5,800 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.
Answer:
A. 15-Feb
Dr Cash $ 28,000.00
Cr Common Stock $ 28,000.00
20-May
Dr Cash $ 43,000.00
CrAccounts Receivable $ 38,000.00
Cr To Service Revenue $ 81,000.00
31-Aug
Dr Salaries Expense $ 31,000.00
Cr To Cash $ 31,000.00
1-Oct
Dr Prepaid Rent $ 20,000.00
Cr To Cash $ 20,000.00
17-Nov Dr Supplies $ 30,000.00
Cr Accounts Payable $ 30,000.00
30-Dec
Dr Dividends $ 2,800.00
Cr Cash $ 2,800.00
31-Dec
Dr Salaries Expense $ 4,800.00
Cr Salaries Payable $ 4,800.00
31-Dec
Dr Rent Expense $ 5,000.00
Cr Prepaid Rent $ 5,000.00
31-Dec
Dr Supplies Expense $ 33,000.00
Cr Supplies $ 33,000.00
31-Dec
Dr Deferred Revenue $ 5,800.00
Cr Service Revenue $ 5,800.00
B. $ 13,000.00
C. $ 43,200.00
D.TOTAL ASSETS $ 164,000.00
TOTAL LIABILITIES and EQUITY $ 164,000.00
Explanation:
Preparation of General Journal, Income Statement, Statement of SE, Balance Sheet
15-Feb
Dr Cash $ 28,000.00
Cr Common Stock $ 28,000.00
20-May
Dr Cash $ 43,000.00
CrAccounts Receivable $ 38,000.00
Cr To Service Revenue $ 81,000.00
31-Aug
Dr Salaries Expense $ 31,000.00
Cr To Cash $ 31,000.00
1-Oct
Dr Prepaid Rent $ 20,000.00
Cr To Cash $ 20,000.00
17-Nov Dr Supplies $ 30,000.00
Cr Accounts Payable $ 30,000.00
30-Dec
Dr Dividends $ 2,800.00
Cr Cash $ 2,800.00
31-Dec
Dr Salaries Expense $ 4,800.00
Cr Salaries Payable $ 4,800.00
31-Dec
Dr Rent Expense $ 5,000.00
Cr Prepaid Rent $ 5,000.00
($ 20000 x 3/12)
31-Dec
Dr Supplies Expense $ 33,000.00
Cr Supplies $ 33,000.00
($ 8800 + $ 30000 - $ 5800)
31-Dec
Dr Deferred Revenue $ 5,800.00
Cr Service Revenue $ 5,800.00
B. Preparation of INCOME STATEMENT
Service REVENUE $ 86,800.00
Less: EXPENSES
Salaries Expense $ 35,800.00
Rent Expense $ 5,000.00
Supplies Expense $ 33,000.00
Net Income $ 13,000.00
($ 86,800.00-$ 73,800.00)
Therefore the income statement will be $ 13,000.00
Calculation for the STATEMENT OF RETAINED EARNINGS
Beginning Balance $ 33,000.00
Add: Net Income $ 13,000.00
Less: Dividends $ (2,800.00)
Ending Balance $ 43,200.00
Therefore retained earnings will be $ 43,200.00
D. Preparation of BALANCE SHEET
ASSETS
Cash $ 37,200.00
Accounts Receivable $ 38,000.00
Prepaid Rent $ 15,000.00
Supplies $ 5,800.00
Land $ 68,000.00
TOTAL ASSETS $ 164,000.00
LIABILITIES and EQUITY
Liabilities
Accounts Payable $ 30,000.00
Salaries Payable $ 4,800.00
Total Liabilities $ 34,800.00
Equity
Common stock $ 86,000.00
Retained Earnings $ 43,200.00
Total Equity $ 129,200.00
TOTAL LIABILITIES and EQUITY $ 164,000.00
Therefore the balance sheet will be
ASSETS $ 164,000.00
TOTAL LIABILITIES and EQUITY $ 164,000.00
Washtenaw Corporation uses a job-order costing system. The following data are for last year: Estimated Direct Labor Hours 14,000 Estimated Machine Hours 12,000 Estimated Manufacturing Overhead Cost $42,600 Actual Direct Labor Hours 11,000 Actual Machine Hours 13,000 Actual Manufacturing Overhead Cost $39,000 Washtenaw applies overhead using a predetermined rate based on direct labor-hours. What predetermined overhead rate was used last year
Answer:
$3.25 per direct labor-hour
Explanation:
Calculation for predetermined overhead rate was used last year
Predetermined overhead rate = $39,000 ÷ 12,000 direct labor-hours
Predetermined overhead rate= $3.25 per direct labor-hour
Therefore the predetermined overhead rate was used last year was $3.25 per direct labor-hour
The LFH Corporation makes and sells a single product, Product T. Each unit of Product T requires 1.5 direct labor-hours at a rate of $10.50 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. LFH Corporation needs to prepare a Direct Labor Budget for the second quarter of next year. The company has budgeted to produce 28,000 units of Product T in June. The finished goods inventories on June 1 and June 30 were budgeted at 800 and 600 units, respectively. Budgeted direct labor costs for June would be:
Answer:
$441,000
Explanation:
Budgeted direct labor cost = Budgeted production * Hours per unit * Rate per hour
Budgeted direct labor cost = 28,000 units * 1.5 DLH * $10.50
Budgeted direct labor cost = $441,000
So, budgeted direct labor cost for June would be $441,000
Dr. Ruth is going to borrow $8,700 to help write a book. The loan is for one year and the money can be borrowed at either the prime rate or the LIBOR rate. Assume the prime rate is 9 percent and LIBOR 0.5 percent less. Also assume there will be a $75 transaction fee with LIBOR (this amount must be added to the interest cost with LIBOR). a. What is the effective interest rate on the LIBOR loan
Answer: 9.37%
Explanation:
The effective interest rate on the LIBOR loan is calculated as follows based on the information given in the question:
Principal = $8700
Prime rate = 9%
LIBOR net interest rate = 9% - 0.5% = 8.5%
Interest Cost will be:
= 8700 × 8.50 × 1/100
= 739.50
We the add the transaction Fee of $75 and thus will be:
= $739.50 + $75.00
= $814.50.
Then, the effective interest rate will be:
= $814.50 × 100/$8700
= $814.50 × $0.0115
= 9.37%
Journalize the December 31 adjusting entry required if the amount of unearned fees at the end of the year is $12,530. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Prepaid Insurance
15 Land
16 Equipment
17 Accumulated Depreciation-Equipment
LIABILITIES
21 Accounts Payable
22 Unearned Fees
23 Salaries Payable
24 Taxes Payable
EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
REVENUE
41 Fees Earned
EXPENSES
51 Advertising Expense
52 Insurance Expense
53 Rent Expense
54 Salary Expense
55 Supplies Expense
56 Utilities Expense
57 Depreciation Expense
59 Miscellaneous Expense
Answer:
Dr Unearned fees $24,510
Cr Fees earned $24,510
Explanation:
Preparation of the December 31 adjusting entry required
Based on the information given if the balance shown in the unearned fees account was the amount of $37,040 before adjustment at the end of the year which means that if the amount of unearned fees at the end of the year is the amount of $12,530 the December 31 adjusting entry required will be :
Dr Unearned fees $24,510
Cr Fees earned $24,510
($37,040-$12,530)
Suppose we want to highlight the year number for each year during which sales were at least 5% higher than the previous year. We would begin by selecting the cell range D6:D12 and choose Conditional Formatting from the Ribbon. Then you would select new rules followed by the Use a Formula option. Finally you would enter the following formula.
Year Actual Sales Cumulative Sales
1 77 77
2 58 135
3 78 213
4 40 253
5 42 295
6 44 339
7 74 413
8 83 496
A. (E5/E4)>1.05.
B. ($E$6/E5)>1.05.
C. (E6/E5)>1.05.
D. (E6/E5)>.05.
Answer:
c) E6/E5 > 1.05
Option C is the correct option.
Explanation:
Data Given:
Year Actual Sales Cumulative Sales
1 77 77
2 58 135
3 78 213
4 40 253
5 42 295
6 44 339
7 74 413
8 83 496
The formula, we have to use in this question is:
c) E6/E5 > 1.05
Option C is the correct option.
Actual Sales/Previous Sales > (1+r)
r = 5%
r = 0.05
Actual Sales/Previous Sales > (1 + 0.05)
Actual Sales/ Previous Sales > (1.05)
Here, the sales were at least 5% higher than the previous year sales. Therefore, the correct formula here we need to enter in Excel Spread Sheet is "E6/E5 > 1.05"
Where, E is the name of the cell in the Excel Spreadsheet.
Peeples, Inc., has a book value of equity of $13,500. Long-term debt is $7,700. Net working capital, other than cash, is $1,990. Fixed assets are $18,450 and current liabilities are $1,670.
A) How much cash does the company have? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
B)What is the value of the current assets? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Answer:
hope you like my answer
Explanation:
TB MC Qu. 03-111 A manufacturer of cedar shingles...
A manufacturer of cedar shingles has supplied the following data:
Bundles of cedar shakes produced and sold 262,000
Sales revenue $ 2,122,200
Variable manufacturing expense $ 975,200
Fixed manufacturing expense $ 487,000
Variable selling and administrative expense $ 260,400
Fixed selling and administrative expense $ 276,000
Net operating income $ 123,600"
The company's contribution margin ratio is closest to:__________ (Do not round Intermediate calculations. Round your answer to whole percentage)
a) 42%
b) 34%
c) 66%
d) 58%
Answer:
A. 42%
Explanation:
Given the above information,
Contribution margin ratio = (Selling price - Unitary variable cost) / Selling price
Selling price = $2,122,200 / 262,000 = $8.1
Total variable cost = Variable manufacturing expense $975,200 + Variable selling and administrative expense $260,400 = $1,235,600
Unitary variable cost = $1,235,600 / 262,000 = $4.72
Contribution margin ratio = (8.1 - 4.72)/8.1 = 41.73% = 42%
Large businesses in developed economies generally find it more efficient to enlist the services of a financial institution to raise capital. A set of highly efficient financial intermediaries has evolved. In recent years, regulations against diversification of institutions have been largely removed; and today the differences between institutions have become blurred. Still, there remains a degree of institutional identity among them.
Give the correct response to each of the following questions.
a. Large conglomerates that combine many different financial institutions within a single corporation are known as_________
b. Organizations that underwrite and distribute new investment securities and help businesses obtain financing are known as_________
c. The traditional department stores of finance serving a variety of savers and borrowers are known as _________
d. Cooperative associations whose members are supposed to have a common bond are known as ___________
e. Retirement plans funded by corporations or government agencies for their workers and administered primarily by the trust departments Of commercial banks are known are:________
Answer:
a. Large conglomerates that combine many different financial institutions within a single corporation are known as_________
Financial services corporations.
b. Organizations that underwrite and distribute new investment securities and help businesses obtain financing are known as_________
Investment banks.
c. The traditional department stores of finance serving a variety of savers and borrowers are known as _________
Commercial Banks.
d. Cooperative associations whose members are supposed to have a common bond are known as ___________
Credit Unions.
e. Retirement plans funded by corporations or government agencies for their workers and administered primarily by the trust departments Of commercial banks are known are:________
Pension Funds.
Explanation:
During the last financial crisis, it was discovered that the financial sector was not sufficiently supervised. They tended to run their institutions without regard to the financial disasters that their activities might generate in the economy. To forecast financial recklessness, Congress passed the Dodd-Frank Act in 2010. The Act created a new agency for consumer protection in the financial sector. It promoted financial stability by improving accountability and transparency, especially with regard to derivative transactions. It took steps to curtail excessive risk-taking by financial institutions.
Jane The Virgin Trivia
Jane's son's name is...?
Who is Jane's first husband?
How many seasons of the show are there?
Answer all correctly and you get 10 points and brainliest
Answer:
Mateo.
Michael.
5.
Explanation:
Answer: Mateo Gloriano Rogelio Solano Villanueva
Michael Cordero Jr
5 Seasons
Explanation: as you can see, I LOOOOOVEEEEEE Jane the Virgin! Season 6 rn idc
Oslo Food Company distributes to consumers coupons which may be presented (on or before a stated expiration date) to grocers for discounts on certain products of Flavor. The grocers are reimbursed when they send the coupons to Oslo. In Oslo's experience, 55% of such coupons are redeemed, and generally one month elapses between the date a grocer receives a coupon from a consumer and the date Oslo receives it. During 2021 Oslo issued two separate series of coupons as follows:
Consumer Amount Disbursed
Issued On Total Value Expiration Date as of 12/31/18
1/1/18 $500,000 6/30/18 $236,000
7/1/18 840,000 12/31/18 350,000
The only journal entry recorded to date is: debit to coupon expense and credit to cash of $815,000. The December 31, 2018 balance sheet should include a liability for unredeemed coupons of:_____.
a) $0.
b) $70,000.
c) $184,000.
d) $420,000.
Answer: $112,000
Explanation:
$840,000 worth of coupons had been issued. The company expects that 55% of these coupons will be redeemed.
= 840,000 * 55%
= $462,000
Out of this, by year end only $350,000 have been disbursed, the amount left as a liability will be:
= 462,000 - 350,000
= $112,000
Options are probably for another variant of the question.
On 1/1/22 Big Co acquired 60% of Little Co voting stock for $300,000. The fair value of the NC Interest was $200,000 on that date. Little's book value was $500,000, and all assets and liabilities had fair values equal to book value.
During 2022, Little reported earnings of $70,000 and paid dividends of $20,000.
1. What was Big's "investment income" ("Income from Little") for 2022? (xx,xxx)
2. What was the "income to the NC Interest" ("NCI in Net Income") for 2022? (xx,xxx)
3. After recording the equity method entries for the year, what was the end of year balance in the "Investment in Little" reported on Big's ledger? (xxx,xxx)
4. What was value of the NC Interest ("NCI in NA of Little") reported on the 12/31/22 Consolidated Balance Sheet? (xx,xxx)
Answer:
1. Particulars Amount
Reported net income of Little $70,000
Multiply: Ownership share of Big Co 60%
Investment income (from Little) $42,000
2. Particulars Amount
Reported net income of Little $70,000
Multiply: non-controlling share (100%-60%) 40%
Income to the NC Interest $28,000
3. Particulars Amount
Investment in Little at beginning $300,000
Investment income (from Little) $42,000
Less: Dividends received (20000*60%) $(12,000)
Investment in Little at end of year balance $330,000
4. Particulars Amount
NC Interest at beginning $200,000
Income to the NC Interest $28,000
Less: Dividends paid to NC Interest (20000*40%) $(8,000)
NC Interest reported on the 12/31/22 $220,000
Consolidated Balance Sheet
what makes a home a "dream home"?
Answer:
A dream home is a home that you wish you had.
Explanation:
Answer: A dream home is unique to each person. For example: ones dream home might be living in the country with cows and farmland, while someone else might prefer living in a busy city. Its unique to you.
Explanation:
Bergamo Bay's computer system generated the following trial balance on December 31, 2017. The company's manager knows something is wrong with the trial balance because it does not show any balance for Work in Process Inventory but does show a balance for the Factory Overhead account. In addition, the accrued factory payroll (Factory Wages Payable) has not been recorded.
After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date.
Materials requisition 21-3010: ............................$10,200 direct materials to Job 402
Materials requisition 21-3011: ............................$18,600 direct materials to Job 404
Materials requisition 21-3012: ........................................$5,600 indirect materials
Labor time ticket 6052: ........................................$36,000 direct labor to Job 402
Labor time ticket 6053: ........................................$23,800 direct labor to Job 404
Labor time ticket 6054: ....................................................$8,200 indirect labor
Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 200% of direct labor cost.
Required
1. Use information on the six source documents to prepare journal entries to assign the following costs.
a. Direct materials costs to Work in Process Inventory.
b. Direct labor costs to Work in Process Inventory.
c. Overhead costs to Work in Process Inventory.
d. Indirect materials costs to the Factory Overhead account.
e. Indirect labor costs to the Factory Overhead account.
2. Determine the revised balance of the Factory Overhead account after making the entries in part 1. Determine whether there is any under- or overapplied overhead for the year. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold, assuming the amount is not material.
3. Prepare a revised trial balance.
4. Prepare an income statement for 2017 and a balance sheet as of December 31, 2017.
Analysis Component
5. Assume that the $5,600 on materials requisition 21-3012 should have been direct materials charged to Job 404. Without providing specific calculations, describe the impact of this error on the income statement for 2017 and the balance sheet at December 31, 2017.
Question Completion:
Trial Balance as at December 31, 2017:
Debit Credit
Cash $170,000
Accounts receivable 75,000
Raw materials inventory 80,000
Work in process inventory 0
Finished goods inventory 15,000
Prepaid rent 3,000
Accounts payable 17,000
Notes payable 25,000
Common stock 50,000
Retained earnings 271,000
Sales 373,000
Cost of goods sold 218,000
Factory overhead 115,000
Operating expenses 60,000
Totals $736,000 $736,000
Answer:
Bergamo Bay
1. Journal Entries to assign the following costs:
a. Direct materials costs to Work in Process Inventory.
Debit Work in Process $10,200
Credit Raw materials $10,200
To record direct materials for Job 402.
Debit Work in Process $18,600
Credit Raw materials $18,600
To record direct materials for Job 404.
b. Direct labor costs to Work in Process Inventory.
Debit Work in Process $36,000
Credit Factory Payroll Payable $36,000
To record ticket 6052 direct labor to Job 402.
Debit Work in Process $23,800
Credit Factory Payroll Payable $23,800
To record ticket 6053 direct labor to Job 404.
c. Overhead costs to Work in Process Inventory.
Debit Work in Process $119,600
Credit Factory Overhead $119,600
To apply overhead costs, 200% of direct labor cost to WIP.
d. Indirect materials costs to the Factory Overhead account.
Debit Factory Overhead $5,600
Credit Raw materials $5,600
To record indirect materials to factory overhead.
e. Indirect labor costs to the Factory Overhead account.
Debit Factory Overhead $8,200
Credit Factory Payroll Payable $8,200
To record indirect labor costs to factory overhead.
2. Revised balance of the Factory Overhead account after above entries:
= $9,200
Underapplied overhead = $9,200
Adjusting Journal Entry to Cost of Goods Sold:
Debit Cost of Goods Sold $9,200
Credit Factory Overhead $9,200
To record underapplied overhead to cost of goods sold.
3. Revised Balance as at December 31, 2017:
Debit Credit
Cash $170,000
Accounts receivable 75,000
Raw materials inventory 45,600
Work in process inventory 0
Finished goods inventory 223,200
Prepaid rent 3,000
Accounts payable $17,000
Factory payroll payable 65,400
Notes payable 25,000
Common stock 50,000
Retained earnings 271,000
Sales 373,000
Cost of goods sold 227,200
Factory overhead 0
Operating expenses 60,000
Totals $804,000 $801,400
4. Income Statement for the year ended December 31, 2017
Sales 373,000
Cost of goods sold 227,200
Operating expenses 60,000 287,200
Net Income 85,800
Retained Earnings 271,000
Net income 85,800
Retained earnings 356,800
Balance Sheet as of December 31, 2017:
Cash $170,000
Accounts receivable 75,000
Raw materials inventory 45,600
Work in process inventory 0
Finished goods inventory 223,200
Prepaid rent 3,000 $516,800
Accounts payable $17,000
Factory payroll payable 65,400
Notes payable 25,000
Total liabilities 107,400
Common stock 50,000
Retained earnings 356,800 406,800
Total Liabilities and equity 514,200
5. Assume that the $5,600 on materials requisition 21-3012 should have been direct materials charged to Job 404. Without providing specific calculations, describe the impact of this error on the income statement for 2017 and the balance sheet at December 31, 2017
If the $5,600 were direct materials instead of indirect materials, it would not be expensed in the income statement, through Cost of Goods Sold. Instead, it would be carried forward as Finished Goods Inventory in the Balance Sheet.
Explanation:
a) Data and Calculations:
Trial Balance as at December 31, 2017:
Debit Credit
Cash $170,000
Accounts receivable 75,000
Raw materials inventory 80,000
Work in process inventory 0
Finished goods inventory 15,000
Prepaid rent 3,000
Accounts payable $17,000
Notes payable 25,000
Common stock 50,000
Retained earnings 271,000
Sales 373,000
Cost of goods sold 218,000
Factory overhead 115,000
Operating expenses 60,000
Totals $736,000 $736,000
Raw materials inventory
Account Titles Debit Credit
Balance 80,000
Work in Process (Job 402) 10,200
Work in Process (Job 404) 18,600
Factory overhead 5,600
Balance 45,600
Work in process inventory
Account Titles Debit Credit
Balance 0
Raw materials 10,200
Raw materials 18,600
Factory payroll 36,000
Factory payroll 23,800
Overhead 119,600
Finished Goods 208,200
Finished goods inventory
Account Titles Debit Credit
Balance 15,000
WIP 208,200
Balance 223,200
Factory Payroll Payable
Account Titles Debit Credit
WIP ticket 6052 36,000
WIP ticket 6053 23,800
Factory overhead 5,600
Balance 65,400
Cost of goods sold
Account Titles Debit Credit
Balance 218,000
Factory overhead 9,200
Balance 227,200
Factory overhead
Account Titles Debit Credit
Balance 115,000
Raw materials 5,600
Payroll Payable 8,200
Work in Process 119,600
Underapplied:Cost of goods 9,200
By convention, a swap buyer on an interest rate swap agrees to act as the dealer in the swap agreement. hold both principal and interest to contract maturity. periodically pay a fixed rate of interest and receive a floating rate of interest. back both sides of the swap agreement. periodically pay a floating rate of interest and receive a fixed rate of interest.
Answer:
periodically pay a fixed rate of interest and receive a floating rate of interest.
Explanation:
The interest rate (rate of return) can be defined as the percentage of interest or dividends earned on money that is invested.
In Financial accounting, a return refers to the amount of profit generated by an investor on an investment over a specific period of time.
Basically, the interest rate which is typically expressed as a percentage of the initial costs of an investment can either be a gain or a loss on an investment. Therefore, a positive rate of return on an investment over a specific period of time, simply means that an investor is making a profit (gains) while a negative rate of return on an investment over a specific period of time, indicates that the investor is running at a loss.
By convention, a swap buyer on an interest rate swap agrees to periodically pay a fixed rate of interest and receive a floating rate of interest.
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.
April 30 May 31
Inventories
Raw materials $44,000 $49,000
Work in process 9,300 19,800
Finished goods 67,000 34,600
Activities and information for May
Raw materials purchases (paid with cash) 185,000
Factory payroll (paid with cash) 250,000
Factory overhead
Indirect materials 10,000
Indirect labor 57,500
Other overhead costs 106,000
Sales (received in cash) 2,000,000
Pre-determined overhead rate based
on direct labor cost 55%
Compute the following amounts for the month of May using T-accounts.
Cost of direct materials used.
Cost of direct labor used.
Cost of goods manufactured.
Cost of goods sold.
Gross profit.
Overapplied or underapplied overhead.
Answer:
Cost of Direct Material Used $134,900.
Under applied Overhead $36,000
Explanation:
Cost of Direct Material Used
Opening Material $44,000
Add: Opening Work in Process $9,300
Add: Purchases $185,000
Less: Closing Material $49,000
Less: Closing Work in process $19,800
Less: Closing finished goods $34,600
= $134,900
Overhead Rate Application:
Budgeted Overhead 55% of direct labor cost [55% * 250,000] = $137,500
Actual Overhead is $173,500
Under applied Overhead is $36,000
You and your friends hike a total of 8 miles to the nearest campsite (Activity A). Upon arriving you break off into teams. One team will set up tents and hammocks for everyone to sleep in (Activity B). At the same time, another team will get wood for a fire (Activity C). Once they have the wood, that same team then proceeds to start the fire (Activity D). The third team will walk to find water (Activity E) and once they find it they will to collect water and bring it back to camp (Activity F). Once the fire is ready and the water is brought back to camp the two groups- the one collecting firewood and the one collecting water- will then purify the water (Activity G). Once the camp is set up and the water is purified everyone will come together and cook dinner around the campfire (Activity H). Once dinner is prepared and eaten half of the group stays behind to put out the fire (Activity I) and half of the group walks away from the campsite to dispose of the food waste (Activity J). After disposing of the food waste the second half of the group returns to the camp (Activity K). Once everyone is at the campsite the day of camping ends
Activity Optimistic time Most Likely Time Pessimistic Time
to complete to Complete to Complete
A Hike to the campsite 3 5 8
B Set up campsite 2 4 5
C Collect wood for fire 1 3 5
D Start a fire 1 2 3
E Find water 0.5 1 3
F Collect water and bring it 1 2 4
back to canm
G Purify the water 1 2 4
H Cook and eat dinner 1 3 4
I Put out fire 1 2 4
J Dispose of food waste 0.5 2 3
K Return from food waste disposal 0.25 1 2
a. Determine the critical path of the PERT chart in a.
b. Assuming a deterministic system how long will it take to complete the entire process.
Answer:
a. The critical path is 16 minutes.
b. The length of time to complete the entire process = 23 minutes.
Explanation:
a) Data and Calculations:
Activity Optimistic time Most Likely Time Pessimistic Time
to complete to Complete to Complete
A Hike to the campsite 3 5 8
B Set up campsite 2 4 5
C Collect wood for fire 1 3 5
D Start a fire 1 2 3
E Find water 0.5 1 3
F Collect water & bring it
back to camp 1 2 4
G Purify the water 1 2 4
H Cook and eat dinner 1 3 4
I Put out fire 1 2 4
J Dispose of food waste 0.5 2 3
K Return from food
waste disposal 0.25 1 2
Total time 12.25 27 45
Critical path: Activity A - Activity B
Activity A - Activity C 3 - Activity D 2 - Activity E 1 - Activity F 2
Activity G 2 - Activity H 3 - Activity I and J 2 - Activity K 1
= 3 + 2 + 1 + 2+ 2 + 3 + 2 + 1 = 16 minutes
Length of time to complete the entire process = 27 - 4 = 23
The critical path identifies the longest stretch of dependent activities and measuring the time required to complete them from start to finish.
Indicate whether the item in each column is reported in the financial statements of the fund types listed below by clicking the corresponding boxes.
Statement Capital assets Long-term liabilities Encumbrances
1. General fund
2. Special revenue funds
3. Capital projects funds
4. Debt service funds
5. Permanent funds
6. Enterprise funds
7. Internal service funds
8. Pension (and other employee
benefit) trust funds
9. Investment trust funds
10. Private-purpose trust funds
11. Custodial funds
Answer:
dont know thanks for the points tho
Explanation:
The following statement is listed as follows:
Capital fund - General Fund, Permanent Fund, Enterprise funds, Investment trust funds, Capital projects funds.Long-term liabilities - Debt Service funds, Pension Trust funds, Private-purpose trust funds, Custodial funds.Encumbrances - Special Revenue funds.Homes, automobiles, investment properties, stocks, bonds, and even collections or art are examples of capital assets.
Long-term liabilities in accounting are a company's financial commitments that are due longer than a year in the future.
A third party's claim, stake, or legal obligation over real estate is referred to as an encumbrance if it does not prevent the owner from transferring the title.
Therefore, the following statement is listed:
Capital fund - 1, 3, 5, 6, 9.Long-term liabilities - 4, 8, 10,11Encumbrances - 2To know more about the capital assets, visit:
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Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $11.10 each, and the variable cost to manufacture them was $6.10 per unit. The company needed to sell 22,400 shirts to break-even. The after tax net income last year was $5,760. Donnelly's expectations for the coming year include the following: (CMA adapted) The sales price of the T-shirts will be $14. Variable cost to manufacture will increase by one-third. Fixed costs will increase by 10%. The income tax rate of 40% will be unchanged. Sales for the coming year are expected to exceed last year's by 1,120 units. If this occurs, Dorcan's sales volume in the coming year will be:_____.
Answer:
b 18,602 units.
Explanation:
The following summarized Cash T-account reflects the total debits and total credits to the Cash account of Thomas Corporation for calendar year 2015.
Cash
Balance, Dec. 31, 2014 $212,900
Receipts from customers 9,367,600 Payments for inventory $2,482,414
Receipts from dividends 3,278,660 Payments for wages 861,819
Receipts from land sale 3,466,012 Payments for rent 496,483
Receipts from machinery sale 1,105,377 Payments for interest 337,234
Receipts from issuing stock 2,407,473 Payments for taxes 702,570
Receipts from borrowing 4,056,171 Payments for machinery 3,494,115
Payments for long-term investments3,531,585
Payments for note payable 599,526
Payments for dividends 777,511
Payments for treasury stock 337,234
Balance, Dec. 31, 2015 $
Required:
Use this information to prepare a complete statement of cash flows for year 2015. The cash provided or used by operating activities should be reported using the direct method.
Answer:
Thomas Corporation
Statement of Cash Flows for the year ended December 31, 2015:
Operating Activities:
Receipts from customers $9,367,600
Receipts from dividends 3,278,660
Payments for inventory (2,482,414)
Payments for wages (861,819)
Payments for rent (496,483)
Payments for interest (337,234)
Payments for taxes (702,570)
Net cash from operations $7,765,740
Investing Activities:
Receipts from land sale $3,466,012
Receipts from machinery sale 1,105,377
Payments for machinery (3,494,115)
Payments for long-term investments (3,531,585)
Net cash from investments ($2,454,311)
Financing Activities:
Receipts from issuing stock $2,407,473
Receipts from borrowing 4,056,171
Payments for note payable (599,526)
Payments for dividends (777,511)
Payments for treasury stock (337,234)
Net cash from financing $4,749,373
Net cash flows $10,060,802
Explanation:
a) Data and Calculations:
Cash
Balance, Dec. 31, 2014 $212,900
Receipts from customers $9,367,600
Receipts from dividends 3,278,660
Receipts from land sale 3,466,012
Receipts from machinery sale 1,105,377
Receipts from issuing stock 2,407,473
Receipts from borrowing 4,056,171
Total receipts $23,681,293
Payments for inventory $2,482,414
Payments for wages 861,819
Payments for rent 496,483
Payments for interest 337,234
Payments for taxes 702,570
Payments for machinery 3,494,115
Payments for long-term investments 3,531,585
Payments for note payable 599,526
Payments for dividends 777,511
Payments for treasury stock 337,234
Total payment $13,620,491
Balance, Dec. 31, 2015 $10,273,702 ($212,900 + 23,681,293 - 13,620,491)
Classification of receipts and payments:
Operating Activities
Receipts from customers $9,367,600
Receipts from dividends 3,278,660
Payments for inventory (2,482,414)
Payments for wages (861,819)
Payments for rent (496,483)
Payments for interest (337,234)
Payments for taxes (702,570)
Net cash from operations $7,765,740
Investing Activities
Receipts from land sale $3,466,012
Receipts from machinery sale 1,105,377
Payments for machinery (3,494,115)
Payments for long-term investments (3,531,585)
Net cash from investments ($2,454,311)
Financing Activities
Receipts from issuing stock $2,407,473
Receipts from borrowing 4,056,171
Payments for note payable (599,526)
Payments for dividends (777,511)
Payments for treasury stock (337,234)
Net cash from financing $4,749,373
Net cash flows $10,060,802
Cash Reconciliation:
Beginning Cash Balance $212,900
Net cash flows 10,060,802
Ending Cash balance $10,273,702
If annual overhead costs are expected to be $958000 and direct labor costs are expected to be $1000000, then if the activity base is direct labor costs:
A. $1.04 is the predetermined overhead rate.
B. a predetermined overhead rate cannot be determined.
C. for every dollar of manufacturing overhead, 1.04 cents of direct labor will be assigned.
D. for every dollar of direct labor, 95.8 cents of manufacturing overhead will be assigned.
Answer:
Predetermined manufacturing overhead rate= $0.958 per direct labor dollar
The correct answer is D.
Explanation:
Giving the following information:
Estimated overhead costs= $958,000
Estimated direct labor costs= $1,000,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 958,000 / 1,000,000
Predetermined manufacturing overhead rate= $0.958 per direct labor dollar
You have recently won the super jackpot in the Washington State Lottery. On reading the fine print, you discover that you have the following two options:
a. You will receive 31 annual payments of $250,000, with the first payment being delivered today. The income will be taxed at a rate of 28 percent. Taxes will be withheld when the checks are issued.
b. You will receive $530,000 now, and you will not have to pay taxes on this amount. In addition, beginning one year from today, you will receive $200,000 each year for 30 years. The cash flows from this annuity will be taxed at 28 percent. Using a discount rate of 6.25 percent, which option should you select?
Answer:
should choose option a
Explanation:
option a)
annuity due, 31 payments of $180,000 per year, 6.25% discount rate
Present value = $180,000 x 14.40432 (PV annuity due factor, 6.25%, 31 periods) = $2,592,726
option b)
$500,000 today + ordinary annuity, 30 periods, 6.25%, $144,000
present value = $500,000 + ($144,000 x 13.40432 [PV annuity factor, 6.25%, 30 periods)] = $2,430,222
Jan Gentry is the owner of a small company that produces electric scissors used to cut fabric. The annual demand is 8,000 scissors, and Jan produces the scissors in batches. On average, Jan can produce 150 scissors per day, and during the production pro-cess, demand for scissors has been about 40 scissors per day. The cost to set up the production process is $100, and it costs Jan 30 cents to carry one pair of scissors for one year. How many scissors should Jan produce in each batch
Answer:
2,697 scissors per batch
Explanation:
Q = √[2KD / h(1 - x)]
K = setup cost = $100D = annual demand = 8,000h = annual holding cost = $0.30x = annual demand / annual production rate = 8,000 / (150 x 200) = 0.267Q = √{(2 x $100 x $8,000) / [$0.30 x (1 - 0.267)]} = √($1,600,000 / 0.22) = 2,696.8 ≈ 2,697 scissors per batch
Assume you are the CEO of Black Diamond, a global organization. You realize that some of the people in your organization are more comfortable working in a strong hierarchy while others prefer to work more like colleagues with their managers than as leaders. You have a project that requires highly structured reporting relationships with a clear hierarchy because it is a joint venture project. You believe people from some cultures may not feel comfortable with such a strong hierarchical relationship. In this case, you might seek to put people on the project who are from a country: ________
A. High uncertainty avoidance
B. High collectivism
C. High assertiveness
D. High power distance
Answer:
The correct answer is the option D: High power distance.
Explanation:
To begin with, the anthropological concept known as "High Power Distance" is specifically refered to the relationship that exists between the members of a community in where there are established ranks and places that everybody has to follow and obey, knowing that there are high powers and low powers. Therefore that this concept was used in communities to see how the cultures were important to affect the tasks of the groups and how they collaborate with each other. That is why, that in the case presented it would be better to find people who came from a culture with high power distance due to the fact that they will be more comfortable working with a highly structured and strong hierarchy.
You are considering changing jobs. Your goal is to work for three years and then return to school full-time in pursuit of an advanced degree. A potential employer just offered you an annual salary of $41,000, $43,000, and $46,000 a year for the next three years, respectively. All salary payments are made as lump sum payments at the end of each year. The offer also includes a starting bonus of $3,000 payable immediately. What is this offer worth to you today at a discount rate of 6.75%?
A. $11,406.
B. $114,545.
C. S116,956.
D. $120,212.
E. S133,697.
Answer:
C. S116,956.
Explanation:
The computation of the offer worth today is shown below:
Particulars 0 1 2 3 Total
Salary 3000 41000 43000 46000
PVIF at 6.75% 1.0000 0.9368 0.8775 0.8220
Present value 3000 38407.49 37733.99 37814.14 116956