This activity is important marketing managers need to understand how buy-classes affect organizational buying behavior. Organizations face three different types of buying situations called buy-class situations; new buy, straight rebuy, and modified rebuys. The type of buy-class affects the way buying centers make purchase decisions.
The goal of this exercise is to demonstrate your understanding of the three different types of buy-classes.
Hover over the product name to reveal the hint. Then match the product with the correct buy-class situation
Legal pads and pens
Service trucks
Shipping crane
Solar panels
Copier paper
Record-keeping software
Buy-Class Situation New Buy Straight Rebuy Modified Rebuy
Question attached
Answer and Explanation:
New buy: solar panels, shipping cranes
Straight rebuy: legal pads and pens, copier paper
Modified rebuy : service trucks, record keeping software
New buy is typical of buyers who are buying a product for the first time and have no previous experience about it and therefore need to research and make proper buying decision
Straight rebuy: this class buy these products regularly and so do not need to make a critical decision.
modified rebuy: this buy class only need that the product be modified albeit the same product but with slightly different specifications. They have some experience as they have previously purchased the product. Example a company ordering for new logos and business cards.
Different products belong to different economical classes.
Different products and economical classesNew buy Straight Re-buy Modified Re-buy
Solar panels Legal pads and pan Service trucks
Shipping crane Copier paper Record-keeping software
Buyers in the new buy class have never purchased a product before. Because the customer is making their first purchase, they must be included in the decision-making process.
Buyers in the straight-buy category buy the product on a regular basis. As a result, less input is required.
Modified rebuy: Buyer has some product purchase experience.
Find out more information about 'Buyers'.
https://brainly.com/question/8394668?referrer=searchResults
Sarasota Architects incorporated as licensed architects on April 1, 2022. During the first month of the operation of the business, these events and transactions occurred:
Apr. 1 Stockholders invested $24,300 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $506 per week, payable monthly.
2 Paid office rent for the month $1,215.
3 Purchased architectural supplies on account from Burmingham Company $1,755.
10 Completed blueprints on a carport and billed client $2,565 for services.
11 Received $945 cash advance from M. Jason to design a new home.
20 Received $3,780 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $2,024.
30 Paid $405 to Burmingham Company for accounts payable due.
Required:
Journalize the transactions.
Answer:
Date Account Titles and Explanation Debit Credit
Apr. 1 Cash $24,300
Common Stock $24,300
(To record the amount of cash invested into the business)
Apr. 1 No entry for hiring an employee because there is no monetary transaction.
Apr. 2 Office Rent $1,215
Cash $1,215
(To record the payment of office rent by cash)
Apr. 3 Supplies $1,755
Accounts Payable $1,755
(To record the purchase of supplies on account)
Apr. 10 Accounts Receivable $2,565
Service Revenue $2,565
(To record the services provided on account)
Apr. 11 Cash $945
Unearned Service Revenue $945
(To record the receipt of cash for the services to be
provided in future)
Apr. 20 Cash $3,780
Accounts Receivable $3,780
(To record the collection of cash from the
credit services provided)
Apr. 30 Salaries Expense $2,024
Cash $2,024
(To record the payment of salaries by cash)
Apr. 30 Accounts Payable $405
Cash $405
(To record the payment of accounts payable due)
Techuxia Corporation worked on four jobs during October: Job A256, Job A257, Job A258, and Job A260. At the end of October, the job cost sheets for these jobs contained the following data:
Job A256 Job A257 Job A258 Job A260
Beginning balance $920 $640 $0 $0
Charged to the jobs during October:
Direct materials $2,750 $4,020 $1,550 $3,750
Direct labor $1,150 $930 $650 $460
Manufacturing overhead
applied $4,420 $1,760 $2,345 $400
Units completed 210 0 101 0
Units in process at the
end of October 0 310 0 253
Units sold during October 155 0 52 0
Jobs A256 and A258 were completed during October. The other two jobs had not yet been completed at the end of October. There was no finished goods inventory on October 1. In October, overhead was overapplied by $1,380. The company adjusts its cost of goods sold every month for the amount of the underapplied or overapplied overhead.
Required:
1. Using the direct method, what is the cost of goods sold for October?
2. What is the total value of the finished goods inventory at the end of October?
3. What is the total value of the work in process inventory at the end of October?
Answer:
1 $10,540
2 $4,625
3 $11,960
Explanation:
1. Cost of goods sold for October is $10,540
2. Total value of finished goods inventory for October is $4,625
3. Total value of work in process inventory at the end of October is $11,960
Please find attached explanations to the above answers.
Illustrate your understanding of how to use the adjusted trial balance to prepare a statement of retained earnings by completing the following sentence.
In order to prepare the statement of retained earnings, the balance of the _____________ account balance as well as any debit balance in the ______________ account is transferred from the adjusted trial balance and is used along with the reported net income (loss) from the Income statement.
Answer:
a. Retained earnings
b. Net income
Explanation:
The format of the statement of the retained earnings is presented below:
Retained Earning statement
For the year ended
Beginning balance of retained earning XXXXX
Add: Net income XXXXX
Less: Cash Dividend paid XXXXX
Ending balance of retained earning XXXXX
By considering the above items i.e. Beginning opening balance, net income, and the dividend the statement of the retained earnings should be prepared.
The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2019.
Current assets $540,000
Debt investments (trading) 624,000
Common stock (par value $10) 500,000
Paid-in capital in excess of par 150,000
Retained earnings 840,000
Required:
Prepare the required journal entries for the following unrelated items.
a. A 5% stock dividend is declared and distributed at a time when the market price per share is $39.
b. The par value of the common stock is reduced to $2 with a 5-for-1 stock split.
c. A dividend is declared January 5, 2020, and paid January 25, 2020, in bonds held as an investment. The bonds have a book value of $100,000 and a fair value of $135,000.
Answer:
Please see below
Explanation:
a. A 5% stock dividend is declared and distributed when the market per share was $39.
Common stock par value($10) 500,000
Retained earning = 50,000 × 5% × 39
= $97,500
Common stock dividend distributed
50,000 × 5% × $10
= $25,000
See attached further explanations.
Nelson Ovalles worked as a cable installer for Cox Rhode Island Telecom, LLC, under an agreement with a third party, M&M Communications, Inc. The agreement stated that no employer-employee relationship existed between Cox and M&M’s technicians, including Ovalles. Ovalles was required to designate his affiliation with Cox on his work van, clothing, and identification badge, but Cox had minimal contact with him and limited power to control the manner in which he performed his duties. Cox supplied cable wire and similar items, but the equipment was delivered to M&M, not to Ovalles. On a workday, while Ovalles was fulfilling a work order, his van rear ended a car driven by Barbara Cayer.
a. Is Cox liable to Cayer?
b. Are independent contractors the same as employees?
c. What is the difference?
Answer:
a. Is Cox liable to Cayer?
No
b. Are independent contractors the same as employees?
No
c. What is the difference?
Ovalles cannot be considered Cox's employee because Cox didn't control the performance of Ovalles and didn't have contact with him.
Independent contractors are not covered by labor and employment laws, and they are responsible for paying their own taxes, including self-employment taxes. A contractor does not work on a salary basis, their work and pay must be specified in a contract.
Explanation:
This is an actual court case where the Supreme Court of Rhode Island ruled in favor of Cox Communications in February, 2014.
The court ruled that Ovalles was an employee for M&M, and that M&M had an independent contractor relationship with Cox Communications. Additionally, Ovalles was also an independent contractor for M&M, not an employee. There existed no direct relationnship between Cox and Ovalles.
Even though Ovalles and other independent contractors use both Cox's and M&M's logos on their vans and uniforms, this was done so consumers could identify them. The fact that an identification is needed so customers can determine the function of a technician, doesn't imply that those technicians are actually employees of the firm nor they actually a method of control over the technicians.
Since Cox didn't control the performance of Ovalles and didn't have contact with him, then there was no reason to consider him an employee of Cox.
The plaintiff, Barbara Cayer probably made a mistake when it included Cox in the lawsuit (since it is a large company), and she would have had a better case against M&M because that company did have control over Ovalles's performance and did have contact with him. But since M&M was a much smaller firm, they decided to go after the big fish. Later they tried to include M&M into the lawsuit but it was rejected since the Supreme Court had not made their ruling yet.
During 2009, Raines Umbrella Corp. had sales of $746,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $578,000, $103,000, and $130,000, respectively. In addition, the company had an interest expense of $97,000 and a tax rate of 40 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corp. paid out $18,000 in cash dividends, spending on net fixed assets and net working capital was zero, and no new stock was issued during the year.What is the firm’s:______.
1- Cash Flow from Assets?
2- Cash Flow to Shareholders?
3- Cash Flow to Creditors?
4- Net new Long-term Debt?
Answer:
1 $65,000
2 $18,000
3 $47,000
4 $50,000
Explanation:
1. Cash flow from Assets = $65,000
2. Cash flow to Shareholders = Dividend = $18,000
3. Cash flow to Creditors = $47,000
4. Net new long term debt = $50,000
Please find attached explanations to the answers above.
Mrs. JK recently made a gift to her 19-year old daughter, Alison. Mrs. JK’s marginal income tax rate is 35 percent and Alison’s marginal income tax rate is 15 percent. In each of the following cases, compute the annual income tax savings resulting from the gift. (Keep in mind the assignment of income doctrine in deciding if there will be income tax savings.)
a. The gift consisted of a corporate bond paying $7,500 annual interest to its owner.
b. The gift consisted of the $7,500 interest payment on a corporate bond owned by Mrs. JK.
c. The gift consisted of rental property generating $8,300 of annual rental income to its owner.
d. The gift consisted of an $8,300 rent check written by the tenants who lease rental property owned by Mrs. JK.
Answer:
a. The gift consisted of a corporate bond paying $7,500 annual interest to its owner.
annual tax savings = interest income x (Mrs. JK's tax bracket - Allison's tax bracket) = $7,500 x (35% - 15%) = $1,500b. The gift consisted of the $7,500 interest payment on a corporate bond owned by Mrs. JK.
no tax savings since the bond is still owned by Mrs. JK, and income will be taxed at her marginal tax rate.c. The gift consisted of rental property generating $8,300 of annual rental income to its owner.
annual tax savings = $8,300 x (35% - 15%) = $1,660d. The gift consisted of an $8,300 rent check written by the tenants who lease rental property owned by Mrs. JK.
no tax savings since the rental property is still owned by Mrs. JK, and income will be taxed at her marginal tax rate.A production line has three machines A, B, and C, with reliabilities of .92, .97, and .87, respectively. The machines are arranged so that if one breaks down, the others must shut down. Engineers are weighing two alternative designs for increasing the line’s reliability. Plan 1 involves adding an identical backup line, and plan 2 involves providing a backup for each machine. In either case, three machines (A, B, and C) would be used with reliabilities equal to the original three.
A. Compute overall system reliability under Plan 1.
B. Compute overall system reliability under Plan 2.
C. Which plan will provide the higher reliability?1. Plan 2.2. Plan 1.
Answer:
The answer is below
Explanation:
If one machine breaks, the others breaks, this means that the are connected in series, hence the reliability of the line is:
Reliability of line = 0.92 * 0.97 * 0.87 = 0.7764
A) Plan 1: Plan A involves connecting a backup line in parallel, therefore the overall reliability would be:
Overall reliability = 1 - (1 - 0.7764)² = 0.95
B) Plan 2: In plan B, each machine has a backup.
Hence:
For machine A: Reliability = 1 - (1 - 0.92)² = 0.9936
For machine B: Reliability = 1 - (1 - 0.97)² = 0.9991
For machine C: Reliability = 1 - (1 - 0.97)² = 0.9831
Overall system reliability = 0.9936*0.9991*0.9831 = 0.9759
C) Since plan 2 has a higher reliability hence plan 2 is the better plan
Pearl Corporation bought Noodle Bowl Limited at the end of the fiscal year. While negotiating the purchase price, Pearl’s management team referred to the following three recent appraisals from independent valuation consultants.
Appraised Value Appraisal Method
Noodle Bowl brand name $50 million Cash flow model based on observed royalty rates
Noodle Bowl workforce $40 million Estimate of the replacement cost to recruit and train an equivalent workforce
Favorable lease agreements $20 million Cash flow model of the anticipated savings from Noodle Bowl's favorable (below market) $20 million contractually guaranteed rental rates for retail space
Required:
Which of the above intangibles is likely to be recorded as a distinct identiflable asset in Pearl Corporation's consolidated financia statement? Which is likely to be recorded as part of goodwill? Explain your reasoning.
Answer:
Identifiable Asset is the one which can be separated from the business and can be identified separately. The asset should have the capability to be disposed of individually. Favorable lease agreements are one such asset which qualifies these conditions. Thus, Favorable lease agreements should be recorded as a distinct asset in Pearl Corporation's consolidated financial statement.
Every such asset which cannot be identified separately should be recorded as goodwill. We cannot recognize Noodle Bowl workforce and Noodle Bowl brand name as a distinctive asset. Thus, they both should be recorded as a part of goodwill.
This information relates to Sheffield Real Estate Agency.
Oct. 1 Stockholders invest $33,860 in exchange for common stock of the corporation.
2 Hires an administrative assistant at an annual salary of $31,320.
3 Buys office furniture for $3,850, on account.
6 Sells a house and lot for E. C. Roads; commissions due from Roads, $10,620 (not paid by Roads at this time).
10 Receives cash of $220 as commission for acting as rental agent renting an apartment.
27 Pays $790 on account for the office furniture purchased on October 3.
30 Pays the administrative assistant $2,610 in salary for October.
Required:
Prepare the debit-credit analysis for each transaction.
Answer:
cash 33,860 debit (+assests)
common stock 33,860 credit (+equity)
---
no entry required
--
furniture 3,850 debit (+assets)
account payable 3,850 credit (+liabilities)
---
accounts receivables 10,620 debit (+assets)
commissions revenues 10,620 credit (+revenue / +equity)
---
cash 220 debit (+assets)
commissions revenues 220 credit (+revenue / +equity)
---
Accounts Payable 790 debit (- liaiblities)
cash 790 credit (- assets)
---
Salaries expense 2,610 debit (+ expense / - equity)
cash 2,610 credit (-assets)
Explanation:
We do the journal entries following the accounting rules
debit = credit
and we usethe accoutnign equation analysis
Assets + Expenses = Liablities + Equity + Revenues
DEBIT CREDIT DEBIT CREDIT
+ + + - - - - - - + + +
The left side increase from debit and decrease from credit
while the element of the right side increase through credit and decrease by debit
Predictive analytics in business is an important application of multiple regression analysis. Generally speaking, what is meant by predictive analytics
Answer:
Predictive analytics is a branch of statistics that is used to predict unknown events in the future
Explanation:
Predictive analytics uses various tools such as data mining, predictive modelling, and machine learning for the purpose of analysing historical data to predict future outcomes.
Businesses use this method to predict rail and opportunities based on previous transactional data.
It eventually provides predictive score or probability that can be used in credit risk, marketing, healthcare, and fraud detection
Munchies, Inc., dominates the snack-food industry with its Salty Chip brand. Assume that Munchies purchased Sweet Snacks Company for $5.4 million cash. The market value of Sweet Snacks’ assets is $10 million, and Sweet Snacks has liabilities with a market value of $7.1 million.
Required:
a. Compute the cost of the goodwill purchased by Munchies.
b. Explain how Munchies will account for goodwill in future years.
Answer:
$2500000
Explanation:
A
1. Goodwill = purchase consideration - market value of net assets of the company
Market value of net assets of the company =$10000000-$7100000
=$2900000
Therefore goodwill=$5400000-$2900000=
$2500000
2. Under GAAP and IFRS, goodwill is an intangible asset that has an indefinite useful life and not amortized like other depreciable assets
Vandalay Industries manufactures two products: toasters and blenders. The annual production and sales of toasters is 2100 units, while 1600 units of blenders are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Toasters require 1.25 direct labor hours per unit, while blenders require 1 direct labor hours per unit. The total estimated overhead for the period is $149,315. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools:
Expected activity
Estimated
Activity cost Overhead
pool cost Toasters Blenders Total
Setup costs $8,585 215 batches 450 batches 665 batches
Engineering costs $73,980 870 engineering 820 engineering 1,690 engineering
hours hours
Maintenance costs $66,750 2,7250 direct 1,195 direct 3,945 direct
labor hours labor hours labor hours
Total $149,315
The overhead cost per Blenders using the traditional costing system would be closest to:____.
A. $28.27.
B. $37.85.
C. $93.32.
D. $19.40.
Answer:
a. Overhead cost per blender = $28.27
Explanation:
Overhead rate = $149,315 / 3,945
Overhead rate = $37.85
Overhead cost per blender = (Blender Direct labor hours * Overhead rate) / Units of blunder Produced and sold
Overhead cost per blender = (1,195 * $37.85) / 1,600
Overhead cost per blender = $45,230.75 / 1,600
Overhead cost per blender = $28.27
At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $70 million attributable to a temporary book-tax difference of $280 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $208 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2021 is $504 million and the tax rate is 25%.
Payne has a valuation allowance of $28 million for the deferred tax asset at the beginning of 2021.Required:A. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full.B. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized.
Answer:
A.
1. Dr Income tax expense $144
Cr To Deferred Tax Assets $18
Cr To Income Tax Payable $126
2. No Journal Entry
B.
1. Dr Income tax expense $144
Cr To Deferred Tax Assets $18
Cr To Income Tax Payable $126
2. Dr Income tax expense $39
Cr To Valuation Allowance - Deferred Tax Assets $39
Explanation:
A. Preparation of the journal entry(s) to record Payne’s income taxes for 2021
1. Dr Income tax expense $144
($126+$18)
Cr To Deferred Tax Assets $18
[($280-$208)*25%]
Cr To Income Tax Payable $126
($504*25%)
(Being income tax expense recorded for 2021 and deferred tax assets reversed for temporary differences reversal )
2 No Journal Entry
B. Preparation of the journal entry(s) to record Payne’s income taxes for 2021
1. Dr Income tax expense $144
($126+$18)
Cr To Deferred Tax Assets $18
[($280-$208)*25%]
Cr To Income Tax Payable $126
($504*25%)
(Being income tax expense recorded for 2021 and deferred tax assets reversed for temporary differences reversal )
2. Dr Income tax expense $39
Cr To Valuation Allowance - Deferred Tax Assets $39
[($208*75%)*25%]
(To record valuation allowance for deferred tax assets)
Purple Panda Pharmaceuticals Inc.’s free cash flows (FCFs) are expected to grow at a constant long-term growth rate ( gL ) of 13% per year into the future. Next year, the company expects to generate a free cash flow of $10,000,000. The market value of Purple Panda’s outstanding debt and preferred stock is $75,000,000 and $41,666,667, respectively. Purple Panda has 4,500,000 shares of common stock outstanding, and its weighted average cost of capital (WACC) is 19%.Given the preceding information, complete the adjacent table (rounding each value to the nearest whole dollar), and assuming that the firm has not had any nonoperating assets in its balance sheet. Term Value Value of Operations Value of Firm's Common Equity Value of Common Stock (per share) Oops, a more careful review of Purple Panda's balance sheet actually reports a $2,370,000 portfolio of marketable securities. How does this new information affect the intrinsic value of Purple Panda's common equity (expressed on a per-share basis) assuming no other changes to the Purple Panda financial situation? Review the statements below and select those that accurately describe Purple Panda's financial situation.
A. The intrinsic value of the company's common stock isn't affected by the new information.
B. The intrinsic value of Purple Panda's common stock decreases with the inclusion of the company's marketable securities portfolio into the analysis.
C. The revised intrinsic value of Purple Panda's common stock is $1.27 per share.
D. The intrinsic value of Purple Panda's common stock increases with the inclusion of the company's marketable securities portfolio into the analysis.
Answer:
Total value of PPP = $10,000,000 / (19% - 13%) = $166,666,667
Total equity value = $166,666,667 - $41,666,667 = $125,000,000 (preferred stocks are considered equity)
Common stock equity value = $125,000,000 - $75,000,000 = $50,000,000
Per share value = $50,000,000 / 4,500,000 = $11.11 ≈ $11 (to the nearest $)
Oops, a more careful review of Purple Panda's balance sheet actually reports a $2,370,000 portfolio of marketable securities. How does this new information affect the intrinsic value of Purple Panda's common equity (expressed on a per-share basis) assuming no other changes to the Purple Panda financial situation? Review the statements below and select those that accurately describe Purple Panda's financial situation.
A. The intrinsic value of the company's common stock isn't affected by the new information.Marketable securities are short term investments (included in current assets). Since we are not given any more information regarding PPP's assets nor how it earns a profit, we cannot determine for sure if this discovery affects stock. personally, I believe it shouldn't unless the securities include high risk stocks that could affect the companies future earnings. We determined the price of PPP based on its future cash flows, not based on its assets.
The Esposito Import Company had 1 million shares of common stock outstanding during 2021. Its income statement reported the following items: income from continuing operations, $7 million; loss from discontinued operations, $1.4 million. All of these amounts are net of tax.
Required:
Prepare the 2021 EPS presentation for the Esposito Import Company.
Answer:
$5.60 million
Explanation:
Preparation of the 2021 EPS presentation for the Esposito Import Company.
Earnings per share :
Income from continuing operations $7.00 million
Less: Loss from discontinued operations ($1.40 million)
Net income $5.60 million
Therefore the 2021 EPS presentation for the Esposito Import Company will be $5.60 million
The following incorrect income statement was prepared by the accountant of the Axel Corporation:
AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains:
Sales revenue $ 592,000
Interest revenue 32,000
Gain on sale of investments 86,000
Total revenues and gains 710,000
Expenses and losses:
Cost of goods sold $ 325,000
Selling expense 67,000
Administrative expense 87,000
Interest expense 16,000
Restructuring costs 55,000
Income tax expense 40,000
Total expenses and losses 590,000
Net Income $ 120,000
Earnings per share $ 1.20
Required: Prepare a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)
Answer:
AXEL CORPORATION
Income Statement
For the Year Ended December 31, 2021:
Sales revenue $ 592,000
Cost of goods sold (325,000 )
Gross profit $ 267,000
Operating Expenses:
Selling expense 67,000
Administrative expense 87,000 (154,000)
Operating Profit $113,000
Interest revenue 32,000
Gain on sale of investments 86,000
Profit before Interest expense $231,000
Interest expense (16,000)
Restructuring costs (55,000)
Profit before tax $160,000
Income tax expense (40,000 )
Net Income $ 120,000
Earnings per share $ 1.20
Explanation:
a) Data and Calculations:
AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains:
Sales revenue $ 592,000
Interest revenue 32,000
Gain on sale of investments 86,000
Total revenues and gains 710,000
Expenses and losses:
Cost of goods sold $ 325,000
Selling expense 67,000
Administrative expense 87,000
Interest expense 16,000
Restructuring costs 55,000
Income tax expense 40,000
Total expenses and losses 590,000
Net Income $ 120,000
Earnings per share $ 1.20
b) Axel Corporation's Income Statement is a financial statement that shows the profitability of the corporation. It reveals how the corporation is able to convert the costs it incurred in the business into profitability for the stockholders. It is one of the key financial statements, whose result (called the bottom-line or net income or loss) is carried forward to the next accounting period.
Basic job Costing
1. Our company makes customized jewelry Customer 101 orders a ring (job 101).
2. It requires 2 grams of 14k gold, 1 diamond and 3 rubies.
c. Customer 102 orders a pendant (job 102). It requires 4 grams of 14 k gold, and 1 ruby.
d. Purchasing buys 1,000 grams of 14k gold for $24,000. 10 diamonds for $28,000, and 10 rubies for $14,000.
e. For the month, the company had factory labor costs of $280,000 and 10,000 hours.
Required:
Prepare the journal entry for the purchases/receivings.
Prepare the journal entry for the direct materials requisitions (by job).
Prepare the journal entry for factory payroll.
Answer:
1) Prepare the journal entry for the purchases/receivings.
Dr Inventory: 14k gold 24,000
Dr Inventory: diamonds 28,000
Dr Inventory: rubies 14,000
Cr Cash (or accounts payable) 66,000
2) Prepare the journal entry for the direct materials requisitions (by job).
Dr Work in process (job 101) 7,480
Cr Inventory: 14k gold 480
Cr Inventory: diamonds 2,800
Cr Inventory: rubies 4,200
Dr Work in process (job 102) 2,360
Cr Inventory: 14k gold 960
Cr Inventory: rubies 1,400
3) Prepare the journal entry for factory payroll.
Dr Work in process 280,000
Cr Wages payable 280,000
it is the list of material or ingredients for a project
Explanation:
okay thankyou and that was very helpful (please mark me brainliest)
Suppose you’re evaluating three alternative MMMF investments. The first fund buys a diversified portfolio of municipal securities from across the country and yields 3.95 percent. The second fund buys only taxable, short-term commercial paper and yields 5.7 percent. The third fund specializes in the municipal debt from the state of New Jersey and yields 3.6 percent. If you are a New Jersey resident, your federal tax bracket is 35 percent, and your state tax bracket is 8 percent.1. Calculate the aftertax yield for each of the alternatives. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Aftertax Yield Municipal fund 3.95 % Taxable fund 3.31 % New Jersey municipal fund %2. Which of these three MMMFs offers you the highest aftertax yield?a. New Jersey Fundb. Municipal Fundc. Taxable Fund
Answer:
1) After tax yield for each alternative will be calculated as;
Municipal Fund after-tax yield = 0.0395*(1-0.08)
Municipal Fund after-tax yield = 0.0395*0.92
Municipal Fund after-tax yield = 0.03634
Municipal Fund after-tax yield = 3.63
Taxable Fund after-tax yield = 0.057(1 - 0.35 -0.08)
Taxable Fund after-tax yield = 0.057*0.57
Taxable Fund after-tax yield = 0.03249
Taxable Fund after-tax yield = 3.25
New jersey municipal fund after-tax yield =
2) Municipal fund offers the highest after-tax yield out of these three MMMF's
Indicate whether the following statements about the conceptual framework are true or false. (a) Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements. select an option (b) General-purpose financial reports are most useful to company insiders in making strategic business decisions. select an option (c) Accounting standards based on personal conceptual frameworks generally will result in consistent and comparable accounting reports. select an option (d) Capital providers are the only users who benefit from general-purpose financial reporting. select an option (e) Accounting reports should be developed so that users without knowledge of economics and business can become informed about the financial results of a company. select an option (f) The objective of financial reporting is the foundation from which the other aspects of the framework logically result.
Answer:
Explanation:
(a) Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements. select an option (TRUE)
This is true be
(b) General-purpose financial reports are most useful to company insiders in making strategic business decisions. select an option (FALSE)
This is false because General-purpose financial reports are most useful to investors as well as shareholders. And it let us financial information about a particular business.
(c) Accounting standards based on personal conceptual frameworks generally will result in consistent and comparable accounting reports. select an option(FALSE)
This is false because Accounting standards based on personal conceptual frameworks will have a diverse report, that cannot be compared.
(d) Capital providers are the only users who benefit from general-purpose financial reporting. select an option (FALSE)
(e) Accounting reports should be developed so that users without knowledge of economics and business can become informed about the financial results of a company. select an option(FALSE)
(f) The objective of financial reporting is the foundation from which the other aspects of the framework logically result.(TRUE)
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,082,125, divided into two departments: Fabrication, $841,500, and Assembly, $240,625. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require three direct labor hours in Fabrication and two direct labor hours in Assembly. The bass boats require three direct labor hours in Fabrication and three direct labor hours in Assembly. Each product is budgeted for 5,500 units of production for the year.If required, round all per unit answers to the nearest cent.a. Determine the total number of budgeted direct labor hours for the year in each department.Fabrication direct labor hoursAssembly direct labor hoursb. Determine the departmental factory overhead rates for both departments.Fabrication $per dlhAssembly $per dlhc. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.Speedboat: $per unitBass boat: $per unit
Answer:
a. Determine the total number of budgeted direct labor hours for the year in each department.
Fabrication 33,000 direct hours Assembly 27,500 direct hoursb. Determine the departmental factory overhead rates for both departments.
Fabrication $841,500 / 33,000 direct hours = $25.50 per direct labor hour Assembly $240,625 / 27,500 direct hours = $8.75 per direct labor hourc. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
Speedboats = (3 x $25.50) + (2 x $8.75) = $94Bass boats = (3 x $25.50) + (3 x $8.75) = $102.75Explanation:
total overhead expense $1,082,125
Fabrication $841,500Assembly $240,625speedboats (5,500 units)
Fabrication 3 hour x 5,500 = 16,500 hours Assembly 2 hour x 5,500 = 11,000 hoursbass boats (5,500 units)
Fabrication 3 hour x 5,500 = 16,500 hours Assembly 3 hours x 5,500 = 16,500 hoursThe following balance sheet for the Hubbard Corporation was prepared by the company:
HUBBARD CORPORATION
Balance Sheet
At December 31, 2016
Assets
Buildings $ 760,000
Land 280,000
Cash 70,000
Accounts receivable (net) 140,000
Inventories 260,000
Machinery 290,000
Patent (net) 110,000
Investment in marketable equity securities 80,000
Total assets $ 1,990,000
Liabilities and Shareholders' Equity
Accounts payable $ 225,000
Accumulated depreciation 265,000
Notes payable 520,000
Appreciation of inventories 90,000
Common stock, authorized and issued
110,000 shares of no par stock 440,000
Retained earnings 450,000
Total liabilities and shareholders' equity $ 1,990,000
Additional information:
1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $51,000 but, due to a significant increase in market value, is listed at $122,000. The increase in the land account was credited to retained earnings.
2. The investment in equity securities account consists of stocks of other corporations and are recorded at cost, $21,000 of which will be sold in the coming year.
3. The remainder will be held indefinitely.Notes payable are all long term. However, a $110,000 note requires an installment payment of $27,500 due in the coming year.
4. Inventory is recorded at current resale value. The original cost of the inventory is $161,000.
Required:
Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
Corrected Classified:
HUBBARD CORPORATION
Balance Sheet
At December 31, 2016
Assets
Current Assets:
Cash 70,000
Accounts receivable (net) 140,000
Inventories 170,000
Investment in marketable
equity securities 21,000
Total current assets $401,000
Land 280,000
Buildings 760,000
Accumulated depreciation -265,000 495,000
Machinery 290,000
Patent (net) 110,000
Investment in marketable
equity securities 59,000
Total long-term assets $1,234,000
Total assets $ 1,635,000
Liabilities and Shareholders' Equity :
Current liabilities:
Accounts payable $ 225,000
Short-term Notes payable 27,500
Total current liabilities $252,500
Long-term liabilities:
Notes payable $492,500
Total liabilities $745,000
Equity:
Common stock, authorized and issued
110,000 shares of no par stock 440,000
Retained earnings 379,000
Other comprehensive income 71,000 $890,000
Total liabilities and shareholders' equity $ 1,635,000
Explanation:
HUBBARD CORPORATION
Balance Sheet
At December 31, 2016
Assets
Buildings $ 760,000
Land 280,000
Cash 70,000
Accounts receivable (net) 140,000
Inventories 260,000
Machinery 290,000
Patent (net) 110,000
Investment in marketable
equity securities 80,000
Total assets $ 1,990,000
Liabilities and Shareholders' Equity
Accounts payable $ 225,000
Accumulated depreciation 265,000
Notes payable 520,000
Appreciation of inventories 90,000
Common stock, authorized and issued
110,000 shares of no par stock 440,000
Retained earnings 450,000
Total liabilities and shareholders' equity $ 1,990,000
1. Retained Earnings 450,000
Fair Value Gain: Land (71,000)
Balance 379,000
Other comprehensive income:
Fair Value Gain of Land 71,000
3. Short-term Investment 21,000
Long-term Investment 59,000
4. Notes payable 520,000
Short-term Notes payable (27,500)
Long-term Notes payable 492,500
5. Inventory 260,000
Appreciation of inventories (90,000 )
Inventory value 170,000
Barnes Corporation expected to sell 150,000 board games during the month of November, and the company’s master budget contained the following data related to the sale and production of these games:_______.Revenue $2,400,000Cost of goods sold:Direct materials $675,000Direct labor $300,000Variable Overhead $450,000Contribution Margin $975,000Fixed overhead $250,000Fixed selling and administration $500,000Operating income $225,000Actual sales during November were 180,000 games. Using a flexible budget, the company expects the operating income for the month of November to be:_____.A) $225,000B) $270,000C) $420,000D) $510,000
Answer:
C) $420,000
Explanation:
Barnes Corporation
Master budget Flexible budget
150,000 games 180,000 games
Revenue $2,400,000 $2,880,000
Cost of goods sold:
Direct materials $675,000 $810,000
Direct labor $300,000 $360,000
Variable Overhead $450,000 $540,000
Contribution Margin $975,000 $ 1170,000
Fixed overhead $250,000 $ 250,000
Fixed selling and administration $500,000 $500,000
Operating income $225,000 $420,000
We calculate each term by dividing the cost by 150,000 units and multiplying the unit cost with the actual units 180,000. It is assumed that the fixed costs remain constant for the range of units from 150,000 - 200,000.
This gives an operating income of $ 420,000
Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 43,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $540,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per direct labor-hour. Harris’s actual manufacturing overhead cost for the year was $787,704 and its actual total direct labor was 43,500 hours.
Required:
Compute the company’s plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.)
Answer:
$16.56 per direct labor hour.
Explanation:
Plant wide predetermined overhead rate for the year
= Total estimated overhead cost ÷ Total estimated allocation base
= $712,000 / 43,000 direct labor hour
= $16.56 per direct labor hour.
Note : Total estimated overhead cost
Fixed manufacturing overhead $540,000
Add: Variable manufacturing overhead ($4 × 43,000 hour) $172,000
Total estimated manufacturing cost $712,000
Christopher likes cupcakes (C) and muffins (M). His preferences can be represented by the utility function U(C, M) = C0.5M0.5. He received a gift basket with 16 cupcakes and 4 muffins, but when he was about to eat them, he found out his younger brother Dan had eaten 14 cupcakes and 2 muffins. Christopher made Dan buy what he'd eaten back. However, the bakery was out of muffins and Dan only bought cupcakes. How many cupcakes did Dan buy if, in addition to what he had not eaten from the basket, the new cupcakes provide Christopher with the same level of utility as the original gift basket?
Answer:
16 cupcakes
Explanation:
U(C, M) = C⁰°⁵ x M⁰°⁵ = √C x √M
total utility obtained by eating 16 cupcakes and 4 muffins = √16 x √4 = 4 + 2 = 6
since the bakery is out of muffins, then utility function = √C x √2 = √C x 1.4142
√C x 1.4142 = 6
√C = 6 / 1.4142 = 4.2426
C = 4.2426² = 18
since there were 2 cupcakes left, Christopher must purchase 18 - 2 = 16 cupcakes
Prepare the adjusting journal entries for the following transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
1. Supplies for office use were purchased during the year for $500, of which $100 remained on hand (unused) at year-end.
2. Interest of $250 on a note receivable was earned at year-end, although collection of the interest is not due until the following year.
3. At year-end, salaries and wages payable of $3,600 had not been recorded or paid.
4. At year-end, one-half of a $2,000 advertising project had been completed for a client, but nothing had been billed or collected.
5. Redeemed a gift card for $600 of services.
Answer:
S/N Account Titles and Explanation Debit Credit
a. Supplies Expenses $400
Supplies $400
(To record the adjusting entry for supplies on hand)
b. Interest receivable $250
Interest income $250
(To record the adjusting entry for interest income)
c. Wages expenses $3,600
Wages payable $3,600
(To record the adjusting entry for wage payable)
d. Accounting revenue $1,000
($2,000 * 1/2)
Advertising revenue $1,000
(To record the service of service revenue)
e. Unearned revenue $600
Service revenue $600
(To record the entry of service revenue)
Supply Company reported the following information in its comparative financial statements for the fiscal year ended January 31.
January 31 January 31
2018 2017
Net sales $91,000 $89,500
Net earnings $6,370 $6,220
Average total assets $65,000 $64,400
Requirement
1. Compute net profit margin ratio (%) for the years ended January 31, and 2017. Did it improve or worsen in 2018?
2. Compute asset turnover for the years ended January 31, 2018 and 2017. Did improve or worsen in 2018? 2018 2017 91,000 $ 89,500 Net sales
3. Compute return on assets for the years ended January 31, 2018 and 2017. Did it improve or worsen in 2018? Which component-net profit margin ratio or asset turnover-was mostly responsible for the change in the company's return on assets?
Answer: See explanation
Explanation:
1. Net profit margin ratio (%) for 2017 will be:
= Net income/Net sales
= 6220/89500
= 0.0695
= 6.95%
Net profit margin ratio (%) for 2018 will be:
= Net income/Net sales
= 6370/91000
= 0.07
= 7%
An improvement of (7% - 6.95%) = 0.05% occurs in net profit.
2. Asset turnover for the year ended 2017 will be:
Net sales/Average total assets
= 89500/64400
= 1.39
= 139%
Asset turnover for the year ended 2018 will be:
Net sales/Average total assets
= 91000/65000
= 1.4
= 140%
There's an improvement in the asset turnover in 2018.
3. Return on assets for 2017 will be:
= Net income/Average total asset
= 6220/64400
= 9.66%
Return on assets for 2018 will be:
= Net income/Average total asset
= 6370/65000
= 9.80%
An improvement in return on total assets of (9.80% - 9.66%) = 0.14% occurs.
Both component-net profit margin ratio or asset turnover- are responsible for the change in the company's return on assets.
According to the sectoral shifts hypothesis:_______.
a. frictional unemployment will cause workers to extend their temporary lay-offs.
b. most unemployed workers will return to their previous job because the firm knows the skills of the worker.
c. there will always be a pool of unemployed workers who experience spells of unemployment because they do not aggressively search for work cyclical unemployment will always exceed frictional unemployment.
d. there will be always be some level of unemployment because the skills of the workers do not match the skill requirements of employers.
Answer:
a. frictional unemployment will cause workers to extend their temporary lay-offs.
Explanation:
Remember, frictional unemployment is a type of unemployment that is self-inflicted by workers who want to change jobs (sectorial shifting) within the same economy; thus, they quit their present job in search of a new one.
However, due to uncontrolled circumstances, they may extend their temporary layoffs or period of unemployment, making them become frictionally unemployed.