A rise in demand will result in an increase in a good's equilibrium price and output. Hence option C is correct .
What is equilibrium ?According to formal definitions, equilibrium is a condition of balance or rest brought on by the equal activity of opposing forces. Supply and demand are these forces in economics. We shall see that when there is an imbalance between supply and demand, economic forces will operate until the equilibrium is restored.
Depicts the hot dog market's competitive nature, with aggregate supply in yellow and aggregate demand in blue. Hot dog demand decreases as price increases, while supply increases. This diagram contains two crucial details. Equilibrium quantity comes first (QE). QE occurs when the amount supplied and the quantity required are equal.
It is crucial to understand the means through which we arrive at this value. Only one price, known as equilibrium price, can be correlated with equilibrium quantity (PE). The question of how to achieve equilibrium still stands. Let's start by thinking about what happens when the price is too high.
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We know that most decisions are in part, based on expectations of the future. Suppose we have two people who are trying to decide whether to consume today (assume it is currently January 2008) or save for the future and consume one year later, in January 2009. One person, let's call him Joe, is basing his decision on the ex-ante real rate of interest like most of us do. The other person who has a crystal ball, we'll call her Crystal, can see exactly what the actual rate of inflation is going to be and thus, has perfect foresight and bases her decision on the ex-post real rate. Look at the difference in the ex-ante and ex-post real rates you calculated in #25 and # 26 above. Who would be more likely to save and who would be more likely to spend? A. Both Joe and Crystal are savers. B. Both Joe and Crystal are spenders. C. Crystal saves, Joe spends. D. Crystal spends, Joe saves.
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Answer and Explanation:
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Consider the market for wheat, which is currently in equilibrium. Then, the following two things happen: 1) A change in the climate causes farmers to switch from planting wheat to corn and 2) a credible study shows that eating even a moderate amount of wheat is bad for you If the change given is the only change that happened (all other things are held constant), what will be the effect on the equilibrium?
A. Price of wheat increases, change in quantity of wheat is ambiguous.B. Price of wheat decreases, change in quantity of wheat is ambiguous.C. Quantity of wheat increases, change in price of wheat is ambiguous.D. Quantity of wheat decreases, change in price of wheat is ambiguous.E. None of the above.
Answer:
The market for wheat
If the following two things happen: 1) A change in the climate causes farmers to switch from planting wheat to corn and 2) a credible study shows that eating even a moderate amount of wheat is bad for you.
If all other things are held constant, and the given change is the only change that happened, the effect on the equilibrium is:
D. Quantity of wheat decreases, change in price of wheat is ambiguous.
Explanation:
With the switch from the planting of wheat to the production of corn by farmers caused by climate change, the quantity of wheat will surely nosedive. This decrease in the quantity produced and supplied is ordinarily supposed to trigger an increase in the price of wheat, thereby dislocating the market equilibrium, but because of the low demand caused by the study, the change in price of wheat will remain ambiguous.
Answer:
According to my research, I think the answer is D. Quantity of wheat decreases, change in the price of wheat is ambiguous
Use Worksheet 5.2 and Exhibit 5.9. Denise Green is currently renting an apartment for $650 per month and paying $400 annually for renters insurance. She just found a small townhouse she can buy for $175,000. She has enough cash for a $10,000 down payment and $4,200 in closing costs. Denise estimated the following costs as a percentage of the homes price: property taxes, 2.5 percent; homeowners insurance, 0.5 percent; and maintenance, 0.7 percent. She is in the 25 percent tax bracket. Using Worksheet 5.2, calculate the cost of each alternative and recommend the least costly option - rent or buy - for Denise. Assume Denises security deposit is equal to one months rent of $650. Also assume a 4% after tax rate return on her savings, a 3% annual appreciation in home price, and a 6% mortgage interest rate for 30 years.1. Cost of renting. Round the answer to the nearest dollar.
$
2. Cost of buying. Round the answer to to the nearest dollar.
$
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Answer and Explanation:
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On April 1, 2019, AFC Corporation was organized. The following transactions occurred during 2019:
On April 1, 2019, 10,000 shares of $1 par value common stock were issued for $20 per share.
On April 2, 2019, a one year rent for $64,000 a year was signed on a store. The corporation paid the entire $64,000 on this date.
On April 2, 2019 the company borrowed $50,000 from the bank by signing a three year, 8%
note with interest payable each April 1 (first interest payment due April 1, 2020).
The company purchased furniture and equipment for $40,000 in cash on April 2, 2019. The
furniture and equipment has an estimated life of 5 years with no residual value.
During the 2019 the company purchased $130,000 worth of merchandise for cash.
Merchandise costing $120,000 was sold for $290,000 in 2019. All sales were cash sales.
Salaries and wages of $50,000 were paid during 2019.
Other operating expenses totaled $10,000 in 2019 and were paid in cash.
Dividends of $1 per share were declared on December 15, 2019 to be paid on January 15, 2020.
List of Accounts:
Cash, Inventory, Prepaid Rent, Furniture & Equipment, Accumulated Depreciation, Interest Payable, Notes Payable, Dividends Payable, Salaries & Wages Payable, Common Stock, Additional Paid In Capital, Retained Earnings, Sales Revenue, Cost of Goods Sold, Rent Expense, Salaries & Wages Expense, Interest Expense, Depreciation Expense, Other Expenses, Dividends
1. Journalize the transactions
2. Prepare an unadjusted trial balance
3. Prepare and Post Adjusting Entries. Prepare all necessary adjusting entries at December 31, 2019. Note that salaries and wages earned by employees in December of 2019 but not yet paid at December 31, 2019 amounted to $3,000 (Remember to update ledger accounts).
4. Prepare an adjusted trial balance
5. Prepared Financial Statements for the period in good forms
Answer:
1) On April 1, 2019, 10,000 shares of $1 par value common stock were issued for $20 per share.
Dr Cash 200,000
Cr Common stock 10,000
Cr Additional paid in capital 190,000
On April 2, 2019, a one year rent for $64,000 a year was signed on a store. The corporation paid the entire $64,000 on this date.
Dr Prepaid rent 64,000
Cr Cash 64,000
On April 2, 2019 the company borrowed $50,000 from the bank by signing a three year, 8% note with interest payable each April 1 (first interest payment due April 1, 2020).
Dr Cash 50,000
Cr Notes payable 50,000
The company purchased furniture and equipment for $40,000 in cash on April 2, 2019. The furniture and equipment has an estimated life of 5 years with no residual value.
Dr Furniture & equipment 40,000
Cr Cash 40,000
During the 2019 the company purchased $130,000 worth of merchandise for cash.
Dr Merchandise inventory
Cr Cash 130,000
Merchandise costing $120,000 was sold for $290,000 in 2019. All sales were cash sales.
Dr Cash 290,000
Cr Sales revenue 290,000
Dr Cost of goods sold 120,000
Cr Merchandise inventory 120,000
Salaries and wages of $50,000 were paid during 2019.
Dr Wages expense 50,000
Cr Cash 50,000
Other operating expenses totaled $10,000 in 2019 and were paid in cash.
Dr Operating expenses 10,000
Cr Cash 10,000
Dividends of $1 per share were declared on December 15, 2019 to be paid on January 15, 2020.
Dr Dividends 10,000
Cr Dividends payable 10,000
2) unadjusted trial balance
debit credit
Cash $246,000
Merchandise inventory $10,000
Prepaid rent $64,000
Furniture & equipment $40,000
Notes payable $50,000
Dividends payable $10,000
Common stock $10,000
Additional paid in capital $190,000
Sales revenue $290,000
Cost of goods sold $120,000
Wages expense $50,000
Operating expenses $10,000
Dividends $10,000
Totals $550,000 $550,000
3) adjusting entries
Dr Rent expense 48,000
Cr Prepaid rent 48,000
Dr Wages expense 3,000
Cr Wages payable 3,000
Dr Depreciation expense 6,000
Cr Accumulated depreciation: furniture & equipment 6,000
Dr Interest expense 3,000
Cr Interest payable 3,000
4) adjusted trial balance
debit credit
Cash $246,000
Merchandise inventory $10,000
Prepaid rent $16,000
Furniture & equipment $34,000
Notes payable $50,000
Wages payable $3,000
Interest payable $3,000
Dividends payable $10,000
Common stock $10,000
Additional paid in capital $190,000
Sales revenue $290,000
Cost of goods sold $120,000
Wages expense $53,000
Operating expenses $10,000
Rent expense $48,000
Depreciation expense $6,000
Interest expense $3,000
Dividends $10,000
Totals $556,000 $556,000
5) Income statement
Revenues $290,000
COGS ($120,000)
Gross profit $170,000
Operating expenses:
Wages expense $53,000Operating expenses $10,000Rent expense $48,000Depreciation expense $6,000 ($117,000)Operating profit $53,000
Other revenues and expenses:
Interest expense $3,000 ($3,000)Net income before taxes $50,000
Retained earnings = $50,000 - $10,000 = $40,000
balance sheet
Assets:
Cash $246,000
Merchandise inventory $10,000
Prepaid rent $16,000
Furniture & equipment $34,000
Total assets $306,000
Liabilities:
Notes payable $50,000
Wages payable $3,000
Interest payable $3,000
Dividends payable $10,000
Total liabilities $66,000
Stockholders' equity:
Common stock $10,000
Additional paid in capital $190,000
Retained earnings $40,000
Total stockholders' equity $240,000
Total liabilities + stockholders' equity $306,000
What is market demand?
a. The subtraction of the individual quantities demanded by each buyer in a market at each price.
b. The addition of the individual prices of the product at each level of quantity.
c. The multiplication of the prices of each product by the individual quantities demanded by each buyer in a market.
d. The division of the total spending by an individual buyer by the prices paid for the product.
e. The addition of the individual quantities demanded by each buyer in a market at each price
Answer:
e. The addition of the individual quantities demanded by each buyer in a market at each price
Explanation:
Among the options given above, the selected is the best explanation to what a market demand happens to be. The quantity of goods demanded by each individuals when added together gives an idea of what the market demand is for that particular goods.
P purchased a machine on January 1, 2018 for $53656 At the time of purchase, the machine was expected to have a useful life of 16 years and a residual value of $4292 P uses straight-line depreciation At the beginning of 2026, P estimated the machine had a remaining useful life of 11 years with no residual value. Determine the following amounts
1. The depreciation expense for the year ending December 31, 2018:
2. The carrying value of the machine on January 1, 2026:
3. The depreciation expense for the year ending December 31, 2026:
4. The carrying value of the machine on December 31, 2026:
Answer:
Jan' 18 to Dec' 25 estimated annual depreciation = 3085, Jan'26 onwards estimated annual depreciation = 4878
1) 3085, 2) 28976, 3) 4878, 4) 24098
Explanation:
Annual Depreciation = (Cost - Scrap Value) / Useful Years
On Jan 2018, Estimated Annual Depreciation = (53656 - 4292) / 16 = 3085
On Jan 2026, Estimated Annual Depreciation = (53656 - 0) / 11 = 4878
1. The depreciation expense for the year ending December 31, 2018 = 3085
2. The carrying value of the machine on January 1, 2026 = Cost - Dep 8 years (2018 - 2025) = 53656 - (3085) 8 = 53656 - 24680 = 28976
3. The depreciation expense for the year ending December 31, 2026 = 4878
4. The carrying value of the machine on December 31, 2026 = Carrying capacity Jan'2026 - depreciation for year ending Dec'2026 = 28976 - 4878 = 24098
How have the evolving business environment and the emergence of free agent workers affected make-or-buy talent decisions?
The evolving business environment and emergence of free agent workers affected have led to more rigorous processes before hiring workers.
What is Hiring?This is defined as the process of employing workers for different roles in an organization.
The increase in free agent workers and evolving business environment have led to more rigorous recruitment processes to get the best results.
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On November 1 of the current year, Rob Elliot invested $30,000 of his cash to form a corporation, GGE Enterprises Inc., in exchange for shares of common stock. No other common stock was issued during November or December. After a very successful first month of operations, the retained earnings as of November 30 were reported at $5,000. After all transactions have been entered into the accounting equation for the month of December, the ending balances for selected items on December 31 follow. On that date, the financial statements were prepared. The balance sheet reported total assets of $56,150 and total stockholders' equity of $37,785.
Cash Accounts Accounts Common Retained Fees Supplies
Recivable Land Payable Stock Earnings Dividends Earned Expense
$8,350.00 $15,500.00 $5,000.00 $5,750.00 $27,250.00 $6,450.00
Utilities Wages Miscellaneous
Expense Expense Expense
$4,625.00 $1,220.00 $400.00
Balance Income Retained Earnings
Sheet Statement Statement Amount
1. What is the amount reported for total
liabilities and stockholders' equity on
December 31? $54,400.00
2. What is the retained earnings amount
reported on December 31? $8,455.00
3. How much does GGE Enterprises Inc.
owe to its creditors?
4. How much cash is being held by GGE
Enterprises Inc.? $30,550.00
5. By what amount did retained earnings
increase or decrease during the period?
6. What is the amount of profit or loss during
December?
7. What were the total expenses for December? $9,205.00
8. How much was paid for utilities?
Answer:
1. What is the amount reported for total liabilities and stockholders' equity on December 31?
$56,150 (same as total assets)
2. What is the retained earnings amount reported on December 31?
= total equity - common stock = $37,785 - $30,000 = $7,785
3. How much does GGE Enterprises Inc. owe to its creditors?
accounts payable = $56,150 - $37,785 = $18,365
4. How much cash is being held by GGE Enterprises Inc.?
cash = $56,150 - $8,350 - $15,500 = $32,300
5. By what amount did retained earnings increase or decrease during the period?
$7,785 - $5,000.00 from Nov. = $2,785
6. What is the amount of profit or loss during December?
profit = increase in retained earnings + dividends = $2,785 + $5,750 = $8,535
7. What were the total expenses for December?
total expenses = fees earned - December's profit = $27,250 - $8,535 = $18,715
8. How much was paid for utilities?
$18,715 - $6,450 - $4,625 - $1,220 - $400 = $205
Explanation:
the numbers are all mixed, so I looked for a similar question:
Cash ? = $56,150 - $8,350 - $15,500 = $32,300
Accounts Receivable $8,350.00
Land $15,500.00
Accounts Payable ? = $56,150 - $37,785 = $18,365
Common Stock ? $30,000
Retained Earnings = $37,785 - $30,000 = $7,785 ($5,000.00 from Nov. + $2,785 from Dec.)
Dividends $5,750.00
Fees Earned $27,250.00
Supplies Expense $6,450.00
Utilities Expense ?
Wages Expense $4,625.00
Rent Expense $1,220.00
Miscellaneous Expense $400.00
SNC is considering working with Nutrilife on a half-size contract for its herbal nutraceutical product line, with an incremental sales benefit to the top line of $2 million (a one-time 20% increase). In addition, Ayurveda Naturals, the India-based supplier of herbs for the Nutrilife contract, is offering very favorable payment terms: 2/30 net 60. In other words, SNC could lower its accounts payable liability to $153,000 by paying Ayurveda Naturals within 30 days, thereby realizing a 2% discount on raw materials. What would you like to do about this opportunity?Accept or Decline2013 2014 2015 Post 2015Incremental Summary Income Statement ($ in thousands)Sales $2,000 $2,000 $2,000 $2,000Cost of Sales $1,833 $1,833 $1,833 $1,833EBIT $167 $167 $167 $167Incremental Balance Sheet ($ in thousands)Accounts Receivable $603 $603 $603 $603Inventories $452 $452 $452 $452Accounts Payable $151 $151 $151 $151
Answer and Explanation:
Answer and explanation attached
Your younger sister is just starting high school, and 5 years from today she should be entering college. Your father plans to start a college fund for her, beginning today. He will invest $5,000 per year in a mutual fund, beginning today, and he expects to earn an annual return of 8%. What is the expected value of the college fund when your sister enters college?
Answer:
FV= $29,333
Explanation:
Giving the following information:
Number of periods= 5 years
Annual investmemnt= $5,000
Interest rate= 0.08
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {5,000*[(1.08^5) - 1]} / 0.08
FV= $29,333
Which feature would clickstream analysis typically capture?
A.
eye color of the consumer
B.
typing speed of the consumer
C.
model of the mouse on the consumer’s machine
D.
last web page the consumer visited
Answer:
d
Explanation:
Answer:
D
Explanation:
Last web page the customer visited a click stream is an events of hyper link clicks that leave a paper trail behind. plus a good tip to always remember is that when something is free you are the product. and data sells
In 1880 five aboriginal trackers were each promised the equivalent of 50 Australian dollars for helping to capture the notorious outlaw Ned Kelley. In 1998 the granddaughters of two of the trackers claimed that this reward had not been paid. The prime minister stated that if this was true, the government would be happy to pay the $50. However, the granddaughters also claimed that they were entitled to compound interest.
A. How much was each entitled to if the interest rate was 3%?B. How much was each entitled to if the interest rate was 6%?
Answer:
A. $1,635
B. $48,424
Explanation:
Using the formulae P (1+r)^t, where P= $50; the principal, r= 0.03 or 3%; the interest rate, and t= 118 (1998-1880).
Hence, at 3% each would be entitled
=50 (1+0.03)^118
=50 (1.03)^118
= $1,635
At 6% each would be entitled
= 50 (1+06)^118
= 50 (1.06)^118
= $48,424
Therefore, since the granddaughters also claimed that they were entitled to compound interest, they would be entitled $1,635 at 3% interest rate and $48,424 if the interest rate was 6%.
Your boss would like your help on a marketing research project she is conducting on the relationship between the price of soda and the quantity of soda demanded. She hands you the following document: Price of Soda Quantity of Soda Demanded (Dollars per can) (Billions of cans) 0.50 2,000 0.75 1,500 1.00 1,000 1.25 750 Your task is to take this________ and construct a graphical representation of the data. In doing so, you determine that as the price of soda rises, the quantity of soda demanded decreases. This confirms the________
Answer:
Your task is to take this demand schedule and construct a graphical representation of the data. In doing so, you determine that as the price of soda rises, the quantity of soda demanded decreases. This confirms the law of supply and demand .
Explanation:
A demand schedule basically shows us the quantity demanded for a good or service at different price levels.
As the price of a good or service increases, the consumers will be less willing to purchase the good or service, therefore the quantity demanded will decrease. When the price of a good or service increases, this results in a higher opportunity cost for the consumer and a lower consumer surplus.
Inversely, when the price of the good or service increases, the suppliers will be more willing to produce the good or service, therefore the quantity supplied will increase.
The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $8 million. The loss from operations of the segment during 2021 was $3.6 million. Pretax income from continuing operations for the year totaled $5.8 million. The income tax rate is 25%. The estimated fair value of the segment's assets, less costs to sell, on December 31 was $7 million. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions.)
Answer:
$1,650,000
Explanation:
Preparation of the lower portion of the 2021 income statement .
2021 Income from continuing operations before income taxes5,800,000
Income tax expense(1,450,000)
($5,800,000 × 25 %)
Income from continuing operations4,350,000
Discontinued operations:
Loss from operations of discontinued component(3,600,000)
Income tax benefit 900,000
(25*3,600,000)
Loss on discontinued operations(2,700,000)
Net income$1,650,000
(4,350,000-2,700,000)
Therefore the the lower portion of the 2021 income statement is $1,650,000
Which of the following is not a measure of variability?
a. range
b. variance
c. standard deviation
d. regulated differences
Answer:
regulated differences
The option that is not regarded as a measure of variability in the question is Regulated difference.
Variability can be regarded as the extent to which a distribution can be stretched or the extent it can be squeezed. Variability express spread scores in a distribution out, it gives the amount of spread of the scores around the mean. For instance, distributions that has same mean can have different amounts of variability.Examples of measures of variability includes variance standard deviation interquartile range.variance can be regarded as expectation of the squared deviation of a random variable gotten from its sample mean. Variance can be explained as measure of dispersion.Standard deviation can be regarded as a measure of the amount of variation in a set of values. when there is low standard variation, then the value is closer to the meanRange can be regarded as the difference in the highest and lowest value as regards a sample.Therefore, option D is right.
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Presented below are certain account balances of Sheridan Products Co.
Rent revenue $6,510 Sales discounts $8,390
Interest expense 13,340 Selling expenses 99,470
Beginning retained earnings 114,860 Sales revenue 401,600
Ending retained earnings 134,870 Income tax expense 24,627
Dividend revenue 71,020 Cost of goods sold 174,271
Sales returns and allowances 12,900 Administrative expenses 80,940
Allocation to noncontrolling interest 17,960
From the foregoing, compute the following:
(a) Total net revenue $
(b) Net income $
(c) Dividends declared $
(d) Income attributable to controlling stockholders $
Answer:
a. $457,840
b. $65,192
c. $45,182
d. $47,232
Explanation:
a. Total net revenue = Sales revenue - sales discount - Sales return and allowances + Rent revenue + Dividend
= $401,600 - $8,390 - $12,900 + $6,510 + $71,020
= $457,840
b. Net income = Total net revenue - Cost of goods sold - Administrative expenses - Selling expenses - Interest expense - Income tax expense
= $457,840 - $174,271 - $80,940 - $99,470 - $13,340 - $24,627
= $65,192
c. Dividends declared
Ending retained earnings = Beginning retained earnings + Net income - Dividend
$134,870 = $114,860 + $65,192 - Dividend
Dividend = $45,182
d. Income attributable to controlling stockholders = Net income - Allocation to non controlling interest
= $65,192 - $17,960
= $47,232
What countries are Canada’s top ten service import partners?
Answer:
Canada’s top 10 service import partners are:-
This is a list of the largest trading partners of Canada. Canada is considered to be a trading nation as its total trade is worth more than two-thirds of its GDP.
Explanation:
See the list of largest trading partners of Canada:
1. United States
2.European Union
3. China
4. Mexico
5. United Kingdom
6. Japan
7. Germany
8. South Korea
9. Italy
10. France
Finding Unknown Values in the Cost of Goods Manufactured Report [LO 2-3, 2-6]Mulligan Manufacturing Company uses a job order cost system with overhead applied to products at a rate of 150 percent of direct labor cost. Case 1 Case 2 Case 3Direct material used 15,000 14,100Direct labor 18,000 Manufacturing overhead applied 11,500 Total current manufacturing costs 27,500 28,500Beginning work in process inventory 9,900 8,000Ending work in process inventory 5,900 9,900 Cost of goods manufactured 44,000 26,001Beginning finished goods inventory 4,700 12,000 Ending finished goods inventory 7,600 6,200Cost of goods sold 41,000 36,000Required:Treating each case independently, selected from the manufacturing data given below, find the missing amounts. You should do them in the order listed. (Hint: For the manufacturing costs in Case 3, first solve for conversion costs and then determine how much of that is direct labor and how much is manufacturing overhead.) (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar. Enter all amounts as positive values.)
Answer:
For Case 1:
Manufacturing overhead applied = 27,000
Total current manufacturing costs = 60,000
Cost of goods manufactured = 64,000
Cost of goods sold = 61,100
For Case 2:
Direct labor = 7,667
Direct material used = 8,333
Beginning work in process inventory = 26,400
Ending finished goods inventory = 15,000
For Case 3:
Direct labor = 5,760
Manufacturing overhead applied = 8,640
Ending work in process inventory = 10,499
Beginning finished goods inventory = 16,199
Explanation:
Note: The data in the question are merged together. The data are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
Also note: See the attached excel file for the table with the computed figure in bold red color.
In the attached excel file, the following calculations are employed:
For Case 1:
Since overhead applied to products at a rate of 150 percent of direct labor cost, we have:
Manufacturing overhead applied = Direct labor * 150% = 18,000 * 150% = 27,000
Total current manufacturing costs = Direct material used + Direct labor + Manufacturing overhead applied = 15,000 + 18,000 + 27,000 = 60,000
Cost of goods manufactured = Total current manufacturing costs + Beginning work in process inventory - Ending work in process inventory = 60,000 + 9,900 - 5,900 = 64,000
Cost of goods sold = Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = 64,000 + 4,700 - 7,600 = 61,100
For Case 2:
Since overhead applied to products at a rate of 150 percent of direct labor cost, we have:
Direct labor = (Manufacturing overhead applied / 150%) * 100% = (11,500 / 150%) * 100% = 7,667
Direct material used = Total current manufacturing costs - Manufacturing overhead applied - Direct labor = 27,500 - 11,500 - 7,667 = 8,333
Beginning work in process inventory = Cost of goods manufactured + Ending work in process inventory - Total current manufacturing costs = 44,000 + 9,900 - 27,500 = 26,400
Ending finished goods inventory = Cost of goods manufactured + Beginning finished goods inventory - Cost of goods sold = 44,000 + 12,000 – 41,000 = 15,000
For Case 3:
Since overhead applied to products at a rate of 150 percent of direct labor cost, we can let:
Direct labor = x
Therefore, we have:
Manufacturing overhead applied = x * 150%
Since,
Total current manufacturing costs = Direct material used + Direct labor + Manufacturing overhead applied ……………………….. (1)
Where;
Total current manufacturing costs = 28,500
Direct material used = 14,100
We can therefore substitute the relevant values into equation (1) and solve for x as follows:
28,500 = 14,100 + x + 1.5x
28,500 - 14,100 = 2.5x
14,400 = 2.5x
x = 14,400 / 2.5
x = 5,760
Therefore;
Direct labor = x = 5,760
and
Manufacturing overhead applied = x * 150% = 5,760 * 150% = 8,640
Ending work in process inventory = Total current manufacturing costs + Beginning work in process inventory - Cost of goods manufactured = 28,500 + 8,000 - 26,001 = 10,499
Beginning finished goods inventory = Cost of goods sold + Ending finished goods inventory - Cost of goods manufactured = 36,000 + 6,200 - 26,001 = 16,199
Flint Corporation provides security services. Selected transactions for Flint Corporation are presented below.
Oct.
1 Issued common stock in exchange for $75,200 cash from investors.
2 Hired part-time security consultant. Salary will be $2,300 per month. First day of work will be October 15.
4 Paid 1 month of rent for building for $2,300.
7 Purchased equipment for $20,500, paying $4,600 cash and the balance on account.
8 Paid $2,300 for advertising.
10 Received bill for equipment repair cost of $480.
12 Provided security services for event for $3,600 on account.
16 Purchased supplies for $470 on account.
21 Paid balance due from October 7 purchase of equipment.
24 Received and paid utility bill for $169.
27 Received payment from customer for October 12 services performed.
31 Paid employee salaries and wages of $5,800.
Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Post the transactions to T-accounts. (Post entries in the order of journal entries presented in the previous part. For accounts with zero balance select "Balance" from the list and enter "0" or leave it blank.)
Prepare a trial balance at October 31, 2017.
Answer:
Date Account Titles Debit Credit
1-Oct Cash $75,200
Common Stock $75,200
2-Oct No entry required $0
4-Oct Rent Expenses $2,300
Cash $2,300
7-Oct Equipment $20,500
Cash $4,600
8-Oct Advertising expenses $2,300
Cash $2,300
10-Oct Repair expenses $480
Account payable $480
12-Oct Account Receivables $3,600
Service revenue $3,600
16-Oct Supplies $470
Account Payable $470
21-Oct Accounts payable $15,900
Cash $15,900
24-Oct Utility expenses $169
Cash $169
27-Oct Cash $3,600
Account receivables $3,600
31-Oct Salaries & Wages Ex $5,800
Cash $5,800
Nitai, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday, Nitai’s employer called and offered him $525 in overtime pay if he would agree to work over the weekend. Nitai could get his car repaired over the weekend at Autofix for $420. If Nitai works over the weekend, he will have to pay the $420 to have his car repaired, but he will earn $525. Assume Nitai’s marginal tax rate is 12 percent rate.
Required:
a. Strictly considering tax factors, should Nitai work or repair his car if the $420 he must pay to have his car fixed is deductible for AGI?
b. Given the answer in a above, by how much is Nitai better or worse off?
Answer:
A) $12.6 B)He will have earned $92.4 extra.
Explanation:
A) Assuming that the $420 is not included when calculating the 12 percent tax, that means the tax that he will pay for the $525 is 12 percent of $105 which is (105 x 12) / 100 = $12.6
B) If Nitai does not work and instead fixes the car himself without spending the $420, he will save that money. But if he works and gets the car fixed at Autofix, he will have earned $92.4 over the weekend and still get his car fixed.
I hope this answer helps.
Biochemical Corp. requires $660,000 in financing over the next three years. The firm can borrow the funds for three years at 12.80% interest per year. The CEO decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 9.50% interest in the first year, 14.25% interest in the second year, and 10.75% interest in the third year. Assume interest is paid in full at the end of each year.
A. Determine the total interest cost under each plan.
B. Which plan is less costly?
Answer:
A. Fixed Cost Financing = $253,440
Short-term Financing=$227,700
B. Short term financing is less costly
Explanation:
A. Calculation to Determine the total interest cost under each plan.
Cost of Three Year FIXED COST FINANCING
$660,000 borrowed × 12.80% per annum × 3 years
= $253,440
Cost of Three Year Variable SHORT-TERM FINANCING
1st year $660,000 × 9.50%
Per annum= $ 62,700 Interest cost
2nd year $660,000 × 14.25%
Per annum=94,050 Interest cost
3rd year $660,000 × 10.75%
Per annum=70,950 Interest cost
TOTAL
YEAR 1 $ 62,700 Interest cost
YEAR 2 $94,050 Interest cost
YEAR 3 70,950 Interest cost
=$227,700
B. Based on the above calculation the SHORT TERM plan is less costly because the total interest cost for three years is $227,700 which is lesser than Fixed term the total interest cost of $253,440
JV, a corporation, was formed in 2013 to design and manufacture electric cars. JV is 60 percent owned by AutoCo (a car manufacturer) and 40 percent owned by ElectricCo (a developer of electric car technology). The decision-making authority of JV is equally shared between AutoCo and ElectricCo: the board of directors of JV is comprised of two members appointed by AutoCo and two members appointed by ElectricCo. JV’s board of directors (1) set the annual budgets; (2) responsible for the hiring, firing, and compensation of management; and (3) approve all material contracts. As part of the agreement, all cars produced by JV will bear AutoCo’s logo and will be sold at AutoCobranded auto dealers.
AutoCo is an established car manufacturer that has been producing cars in the United States for the past century. To meet governmental mandates of lowering emissions and increasing the fuel economy of its fleet, AutoCo has been evaluating various ways to enter the electric vehicle market. AutoCo does not currently have viable technology for the production of electric cars. ElectricCo was established by professors that developed cutting-edge battery technology for electric cars. Although ElectricCo has not produced electric cars in a mass market, the battery technology is tested and highly valued. AutoCo and ElectricCo jointly formed JV to produce electric cars for the mass market. JV benefits from ElectricCo’s proprietary technology and AutoCo’s manufacturing expertise and access to credit markets and distribution channels.
JV is financed with 30 percent equity and 70 percent debt. When JV was formed, ElectricCo did not have access to sufficient cash at inception to fund its equity interest. To purchase its equity interest, ElectricCo received a loan from AutoCo. The debt financing was obtained in the form of a credit facility from a third-party bank. For the bank to provide debt to JV, it required that AutoCo guarantee the loan.
Required:
a. Is JV a variable interest entity (VIE)?
b. Which entity, if any, should consolidate JV?
Answer:
a. Is JV a variable interest entity (VIE)?
Yes, JV should be considered a variable interest entity. Basically both AutoCo and ElectricCo share JV's board, but ElectricCo didn't have the money to start a company or even be part of a joint venture. ElectricCo's equity is financed by AutoCo, so ElectricCo has basically no no equity at risk. Even the debt acquired by JV is backed by AutoCo, but AutoCo does not control JV on its own.
Basically ElectricCo's contribution is technology, and AutoCo provides everything else, but both control the company with one side (ElectricCo) not having enough money to invest but doing so through financing.
b. Which entity, if any, should consolidate JV?
AutoCo must include JV in its consolidated balance sheet since it owns 60% of the company and the products manufactured by JV are sold under AutoCo's brand.
Constructing and Assessing Income Statements Using Cost-to-Cost Method Assume General Electric Company agreed in May 2016 to construct a nuclear generator for NSTAR, a utility company serving the Boston area. General Electric Company estimated that its construction costs would be $840 million. The contract price of $1,050 million is to be paid as follows: $350 million at the time of signing; $350 million on December 31, 2016; and $350 million at completion in May 2017. General Electric incurred the following costs in constructing the generator: $336 million in 2016 and $504 million in 2017.
Required:
Compute the amount of General Electric's revenue, expense, and income for both 2016 and 2017, and for both years combined, under the cost-to-cost revenue recognition method.
Answer:
Year Costs % Total cost Revenue Income
incurred excepted costs recognized
$'million $'million $'million $'million
2016 336 40% 420 84
2017 504 60% 630 126
Total 840 100% 1,050 210
Workings
1. % Total cost excepted costs
2016 = 336 / 840 = 0.4 = 40%
2017 = 504/840 = 0.6 = 60%
2. Revenue recognized
2016 = 1,050 * 40% = 420
2017 = 1,050 * 60% = 630
3. Income = Revenue recognized - Cost incurred
Following are the transactions of Sustain Company.
June 1 T. James, owner, invested $14,500 cash in Sustain Co. in exchange for its common stock.
2 The company purchased $7,500 of furniture made from reclaimed wood on credit.
3 The company paid $1,300 cash for a 12-month insurance policy on the reclaimed furniture
4 The company billed a customer $6,500 in fees earned from preparing a SASB-compliant sustainability report.
12 The company paid $7,500 cash toward the payable from the June 2 furniture purchase. 20 The company collected $6,500 cash for fees billed on June 4.
21 The company received $13,500 cash from a sustainable investor group in exchange for common stock.
30 The company received $8,500 cash from a client for sustainability services for the next 3 months.
Prepare general journal entries for the above transactions View transaction list Journal entry worksheet 123 4 5 678 T.
James, owner, invested $14,500 cash in Sustain Co. in exchange for its common stock. Note: Enter debits before credits. Date General Journal Debit Credit June 01
Answer and Explanation:
The Journal entries are shown below:-
1. Cash Dr, $14,500
To Common stock $14,500
(Being Common Stock issued is recorded)
2. Furniture Dr, $7,500
To Accounts Payable $7,500
(Being Furniture purchased on Credit is recorded)
3. Prepaid insurance Dr, $1,300
To Cash $1,300
(Being Prepaid Insurance Paid is recorded)
4. Accounts Receivable Dr, $6,500
To Service Revenue $6,500
(Being Revenue earned is recorded)
5. Accounts Payable Dr, $7,500
To Cash $7,500
(Being paid for Outstanding balance in payable is recorded)
6. Cash Dr, $6,500
To Accounts Receivable $6,500
(Being received from Accounts Receivables is recorded)
7. Cash Dr, $13,500
To Common stock $13,500
(Being common Stock issued is recorded)
8. Cash Dr, $8,500
To Unearned Service Revenue $8,500
(Being advance received for services is recorded)
Adjusting entries on month-end
Insurance Expense Dr, $108.33 ($1,300 ÷ 12)
To Prepaid Insurance $108.33
(Being insurance expired is recorded)
According to a newly added office smoking regulation, only employees who have an enclosed office may smoke at their desks. This leads to a major conflict between various employees as virtually all employees with enclosed offices are higher level managers, and all other employees lack enclosed offices. Therefore, the lower level employees who smoke argue that they should be offered enclosed offices. Which of the following, if true, strengthens the employees' argument?
A) The company is a zealous supporter of the "Kick the Butt" campaign a corporate anti-smoking campaign.
B) The smoking regulations allow all employees who smoke an equal opportunity to do so, regardless of an employee's job level.
C) The company has a limited budget for infrastructure modifications.
D) Employees at the higher level, who do not smoke, do not have enclosed offices.
E) Higher level managers, who have enclosed offices, are willing to share their offices with lower level employees.
Answer: B. The smoking regulations allow all employees who smoke an equal opportunity to do so, regardless of an employee's job level
Explanation:
Based on the scenario that we have in the question, the option that strengthens the employees' argument is that the smoking regulations allow all employees who smoke an equal opportunity to do so, regardless of an employee's job level.
In this case, there's actually a justification for the employees demand of enclosed offices since the smoking regulations allow all the workers who smoke an equal opportunity to do so.
Hence, this particular option strengthens their argument. The other options doesn't support the argument of the employees.
Lucia and barley are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of barley and alfalfa each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing barley or alfalfa or to produce barley on some of their land and alfalfa on the rest.
Barley Alfalfa
Bushels per acre Bushels per acre
Musashi 40 8
Rina 28 7
Lucia has an absolute advantage in the production of barley, and Lucia has an absolute advantage in the production of alfalfa. Kenji's opportunity cost of producing 1 bushel of alfalfa is ___________ bushels of barley, whereas Lucia's opportunity cost of producing 1 bushel of alfalfa is ____________ bushels of barley. Because Kenji has ahigher opportunity cost of producing alfalfa than ,Lucia has a comparative advantage in the production of alfalfa, andKenji has a comparative advantage in the production of barley.
Answer:
Kenji's alfalfa opportunity cost:
each bushel of Alfalfa cost 4 bushel of barley.
Lucia's alfalfa opportunity cost:
each bushel of Alfalfa cost 5 bushel of barley.
Explanation:
the opportunity cost is based on the output resinged when chosing a particular good.
In this case, the opportunity cost of barley is the Alfalfa and, for th Alfalfa the Barley that the farmer could have made.
Kenji's:
20 Barley / 7 alfalfa = 4 barley
each bushel of Alfalfa cost 4 bushel of barley.
Lucia's:
40 barley / 8 alfalta = 5 barly
each bushel of Alfalfa cost 5 bushel of barley.
DISCLAMER:
The table suggest two different names
I will assume the top value are from Lucia as those gives the absolute advantage stated in the question.
"Lucia has an absolute advantage in the production of barley, and Lucia has an absolute advantage in the production of alfalfa"
and the bottom from Kenji.
Consider two neighboring island countries called Bellissima and Dolorium. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor.
Jeans Rye
(Pairs per hour of labor) (Bushels per hour of labor)
Bellissima 8 16
Dolorium 5 20
Initially, suppose Bellissima uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Dolorium uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Bellissima produces 8 million pairs of jeans and 48 million bushels of rye, and Dolorium produces 15 million pairs of jeans and 20 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces.
Felicidad's opportunity cost of producing 1 pair of jeans is (1/2 bushel, 1/4 bushel, 2 bushel, 4 bushel) of corn, and Bellissima's opportunity cost of producing 1 pair of jeans is (1/2 bushel, 1/4 bushel, 2 bushel, 4 bushel) of corn. Therefore, (Bellissima, Felicidad) has a comparative advantage in the production of jeans, and (Bellissima, Felicidad) has a comparative advantage in the production of corn.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will produce _____ million pairs per month, and the country that produces corn will produce _____ million bushels per month.
Answer:
Bellisima's opportunity cost:
Production of corn per million hours of labor = 8 / 16 = 0.5 pairs of jeans Production of jeans per million hours of labor = 16 / 8 = 2 bushels of ryeDolorium's opportunity cost:
Production of corn per million hours of labor = 5 / 20 = 0.25 pairs of jeans Production of jeans per million hours of labor = 20 / 5 = 4 bushels of ryeDolorium has a comparative advantage int he production of rye while Bellisima has a comparative advantage in the production of jeans.
If both countries specialize:
Dolorium will produce 80 million bushels of rye. Bellisima will produce 32 million pairs of jeans.Total production of rye has increased by 12 million bushels.
Total production of jeans has increased by 9 million pairs.
Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options. Opportunity costs are by definition invisible, making it simple to ignore them
The potential cost of Bellisima is calculated as follows:
8/16 = 0.5 pairs of jeans were produced for every million hours of labor in the production of maize.
16/ 8 = 2 bushels of rye are produced for every million hours of work spent producing jeans.
The opportunity cost of delirium
The amount of maize produced for one million hours of work is 5/20, or 0.25 pairs of jeans.
20/5 = 4 bushels of rye are produced for every million hours of work spent producing jeans.
In the cultivation of rye, Dolorium has a comparative advantage, whereas Bellisima has a comparative advantage in the manufacture of jeans.
If both nations have specialized:
Eighty million bushels of rye will be produced at Dolorium.
32 million pairs of jeans will be produced by Bellisima.
Rye production has gone up by 12 million bushels overall.
Nine million additional pairs of jeans have been produced overall.
Making smarter decisions requires an understanding of the possible possibilities lost when a company or person chooses one investment over another.
Opportunity cost is the advantage that was lost because a particular alternative was not selected. It is necessary to examine the advantages and disadvantages of each choice offered in order to correctly assess opportunity costs. Opportunity costs have a value that may help people and businesses make more lucrative decisions.
Learn more about opportunity costs here:
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If the price of eggs differs by from one month to the next, by how much would you expect the price of milk to differ? Round the answer to two decimal places.
Answer:
The numbers are missing, as well as the first part of the question. I looked for a similar question and found the attached data.
first you need to calculate the regression line equation, which in this case = 0.59343x + 2.01844
the slope coefficient = 0.59343
if the price of milk differs by $0.15, then the price of eggs will change by $0.15 x 0.59343 = $0.089 or $0.09
Suppose that both the number of buyers and the number of sellers increase. Which of the following will occur?
a. The equilibrium quantity will increase and the equilibrium price will increase.
b. The equilibrium quantity will increase and the effect on the equilibrium price is undetermined.
c. The total effect on equilibrium price and quantity is undetermined.
d. The equilibrium price will increase and the effect on the equilibrium quantity is undetermined.
e. The equilibrium quantity will increase and the equilibrium price will decrease.
Answer:
The answer is B.
Explanation:
If both the number of buyers and the number of sellers increase in a market for a specific product, this results in the equilibrium quantity's increase because of the increase in both supply and demand.
The equilibrium price however depends on other variables and factors so it cannot be determined in this example.
So the correct answer is B.
I hope this answer helps.
Considering the following labor markets. A slightly different feature of labor markets is that employees are the suppliers of labor and firms are the demanders of labor. Assuming an identical inward shift of the demand curve, which market will cause a higher level of unemployment due to the demand shift, as measured by the number of jobs lost due to the demand shift (not the absolute number of jobs)? Note: We are assuming we are in an industry with market power. While this is not necessarily the best assumption for a labor market, it is reasonable in the presence of a strong labor union.
Answer:
i added the graph of both markets as an attachment
The answer is market B or 2. This market a higher level of unemployment.
When elasticity of supply increases, we have it that the suppliers would have greater market power.
In market B, we have it that the elasticity of supply is bigger than that if A. This means that the supplier has more market power in this market than in market A.
Since the elasticity us greater in this market, then we would have change in unemployment due to a fall in demand to be more here than in A.