Answer:
Product margin= $9,332
Explanation:
First, we need to allocate the activity cost to product M5:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Processing= 5,945/14,500= $0.41 per machine hour
Supervising= 19,680/800= $24.6 per batch
Product M5:
Processing= 0.41*800= $328
Supervising= 24.6*400= $9,840
Finally, the total cost and the product margin:
Total cost= 32,300 + 42,600 + (328 + 9,840)
Total cost= $85,068
Product margin= 94,400 - 85,068
Product margin= $9,332
A product priced at $5 has annual sales of 1,000 units. When price is reduced to $4, quantity increases to 1,250 units. Other things unchanged, the price elasticity of demand for the product is:
Answer:
Unitary
Explanation:
Price elasticity of demand is demand is defined as a measure of how sensitive quantity of a product demanded is sensitive to changes in price.
Usually an increase in price results in a reduction in quantity demanded, and reduction in price results in an increase in quantity demanded.
Using the midpoint method of calculating price elasticity
Price elasticity = (change in quantity demanded) ÷ (change in price)
Change in quantity demanded = (1000-1250)/(100+1250)/2
Change in quantity demanded = -0.2222
Change in price = (5-4) / (5+4)/2
Change in price = 0.2222
Price elasticity = -0.2222 ÷ 0.2222 = -1
Therefore price elasticity is unitary.
Unitary elasticity means that a a percentage change in price results in equal percentage change in quantity demanded
What is one of the basic principles of economics?
A.
Society’s resources are unlimited.
B.
People never put their own interests as their first priority.
C.
If people demand a product, then businesses are required to supply it.
D.
Society and its individuals have unlimited wants.
Answer:
D. Society and its individuals have unlimited wants.
Explanation:
Economics can be defined as the study of how to use scarce or limited resources to meet the unending needs and wants of the consumers.
One of the basic principles of economics is that society and its individuals have unlimited wants because humans are generally insatiable. Therefore, we are left with the option of choosing (choices) because we cannot have all that we desire or want and the resources used to meet the demands are scarce or limited.
Generally, Economics can be classified into two (2) categories, namely;
1. Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
2. Microeconomics can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets.
Hence, it is focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.
Answer:
d
Explanation:
Sevenbergen Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations:
Budgeted selling price per unit $92
Budgeted unit sales (all on credit)
July 9,000
August 11,300
September 10,400
October 10,800
Raw materials requirement per unit of output 4 pounds
Raw materials cost $1.00 per pound
Direct labor requirement per unit of output 2.8 direct labor hours
Direct labor wage rate $22.00 per direct labor hour
Variable selling and administrative expense $1.50 per unit sold
Fixed selling and administrative expense $70,000 per month
Credit sales are collected:
40% in the month of the sale
60% in the following month
Raw materials purchases are paid:
30% in the month of purchase
70% in the following month
The ending finished goods inventory should equal 20% of the following month's sales. The ending raw materials inventory should equal 30% of the following month's raw materials production needs.
If 41,920 pounds of raw materials are required for production in September, then the budgeted raw material purchases for August is closest to:__________
A. 57,056 pounds
B. 44,480 pounds
C. 43,712 pounds
D. 70,400 pounds
If 41,920 pounds of raw materials are required for production in September, then the budgeted cost of raw material purchases for August is closest to:__________
A. $57,056
B. $43,712
C. $44,480
D. $70,400
The estimated direct labor cost for August is closest to:____________
A. $465,000
B. $684,992
C. $31,136
D. $244,640
Answer and Explanation:
The computation is shown below:
Production Unit For August
= 11300 + (10400 × 20%) - (11300 × 20%)
= 11120 Units
Now Raw material purchase is
= (11120 × 4) + (41920 × 30%) - (11120 × 4*30%)
= 43712 Pounds
Raw material purchase Cost is
= 43712 × 1
= $43,712
The Direct labor cost is
= 11120 × 2.8 × 22
= $684,992
Skysong, Inc. compiled the following financial information as of December 31, 2022:
Service revenue $827000
Common stock 181000
Equipment 232000
Operating expenses 748000
Cash 202000
Dividends 64000
Supplies 38000
Accounts payable 113000
Accounts receivable 95000
Retained earnings, 1/1/22 444000
Skysong's retained earnings on December 31, 2022 are:_________
Answer:
$459,000
Explanation:
The computation of the ending retained earning balance is shown below:
Ending retained earning balance is
= Opening retained earning balance + net income - dividend
where
Net income
= Service revenue - operating expenses
= $827,000 - $748,000
= $79,000
Now the ending retained earnings balance is
= $444,000 + $79,000 - $64,000
= $459,000
When third-party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have:
all statements be warranties
insurable interest in the proposed insured
the agent complete a third-party application
all those involved be family related
Answer:
insurable interest in the proposed insured
Explanation:
In the case when third-party ownership is included so the applicants are treated as the beneficiary and then needed to have an insurable interest.
The information regarding the third-party ownership should involve the following things:
It refers to the situation where the third party should invest in the economic rights for receiving the share of any type of future transfer.And at the time when the third party is treated as the beneficiary so it should have an insurable interest in the upcoming insured.So, the other options are incorrect.
Therefore we can conclude that In the case when third-party ownership is included so the applicants are treated as the beneficiary and then needed to have an insurable interest.
Learn more about the insurance here: brainly.com/question/13293881
In Year 1, the investor acquired 10% ownership of investee and applied fair value method to account for the investment. In Year 2, the investor acquired another 30% ownership and applied equity method to account for the investment (40% ownership). In Year 3, the investor sold 35% ownership of the investee and started using fair value method again to account for the investment (5% ownership). Should the investor apply retrospective adjustment in Year 2 and Year 3
Answer:
b
Explanation:
Conservative Bank offers loans at various interest rates, depending on the nature of the loan. Jake wants to borrow $200,000 for a new home. He promises to pay back the loan in 10 years. Alyssa also wants to borrow $200,000 for a new home. She promises to pay back the loan in 15 years. Assume Jake and Alyssa are equally creditworthy and that the two home mortgages are the same in all other aspects. If all else is constant, the bank would most likely charge a higher interest rate to___.
Answer:
Bank would most likely charge a higher interest rate to Alyssa
Explanation:
Credit worthiness of Jake and Alyssa is same and interestingly amount is also same. But Alyssa is taking it for long period of time say, 15 years while Jake will return in 10 years. Bank decides the interest rate based on the economic conditions. Short term loan are given at lower rate because it is easy to predict the future. But here in both cases, loans are taken for long period. But still Alyssa period is greater than Jake. Thus, bank will charge higher interest rate from Alyssa.
Software Distributors reports net income of $58,000. Included in that number is depreciation expense of $11,500 and a loss on the sale of land of $5,300. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $28,000, a decrease in inventory of $16,500, and an increase in accounts payable of $48,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method.
Answer:
Software Distributors
Statement of cash flows (partial)
Cash flow from operating activities:
Net income $58,000
Adjustments to reconcile net income to
net cash flows from operating activities
Add: Depreciation expense $11,500
Add: Loss on sale of land $5,300
Add: Decrease in accounts receivable $28,000
Add: Decrease in inventory $16,500
Add: Increase in accounts payable $48,000
Net cash flow from operating activities $167,300
Last year Kruse Corp had $410,000 of assets (which is equal to its total invested capital), $403,000 of sales, $28,250 of net income, and a debt-to-total-capital ratio of 39%. The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets and total invested capital to $252,500. The firm finances using only debt and common equity. Sales, costs, and net income would not be affected, and the firm would maintain the same capital structure (but with less total debt). By how much would the reduction in assets improve the ROE? Do not round your intermediate calculations. Question 2 options: 7.05% 6.69% 6.41% 7.26% 7.82%
Answer:
a. 7.05%
Explanation:
ROE before reduction in assets:
Total assets = $410,000
Debt to total capital ratio = 39%
Equity to total capital ratio = 1 - 39% = 61%
Equity = 410000 * 61% = $250,100
Net Income = $28,250
ROE = Net Income / Equity = 28250 / 250100 = 11.2955%
After reduction in assets:
Total assets = $252,500
Net Income is not affected and is same at = $28,250
Capital structure is same.
New Equity = 252500 * 61% = $154,025
New ROE = 28250 / 154025 = 18.3412%
Improvement in ROE = 18.3412% - 11.2955%
Improvement in ROE = 7.05%
You are asked to assess the current service model for a manufacturing line featuring 8 machines. Based on empirical data you have determined that machines have a 23% likelihood of being down and in need of repair. There are currently 2 workers capable of running and repairing machines. Each of the 8 machines can produce 18 units/hour. The overhead for running each of the 8 machines is $713 per day per machine. Each operator is paid at an hourly rate of $15. [You can assume an 8-hour work day]
a. Determine the total amount of lost work time.
b. Should you hire an additional worker to run the 8 machines in this manufacturing line?
Answer:
A) 14.72 hours
B) An additional worker should be hired since the lost work time is 14.72 hours
Explanation:
Number of machines on manufacturing line = 8
percentage of machine been down = 23%
number of workers capable of running and repairing machines = 2
machine productivity ( per machine ) = 18 units/hour
overhead cost / machine = $713
hourly rate paid per worker = $15
Total number of work hours = 8 hour
A) calculate Total amount of lost worktime
= number of machines * Total number of work hours * 23%
= 8 * 8 * 23% = 14.72 hours
B) An additional worker should be hired since the lost work time is 14.72 hours
The bonds in our model have a maturity close to zero; they just pay the current interest rate, i, as a flow over time. We could consider, instead, a discount bond, such as a U.S. Treasury Bill. This type of asset has no explicit interest payments (called coupons) but pays a principal of, say, $1000 at a fixed date in the future. A Bill with one- year maturity pays off one year from the issue date, and similarly for 3-month or 6-month Bills. Let PB be the price of a discount bond with one-year maturity and principal of $1000. a. Is PB greater than or less than $1000.
a. Is P^B greater than or less than $1000?
b. What is the one-year interest rate on these discount bonds?
c. If prises, what happens to the interest rate on these bonds?
d. Suppose that, instead of paying $1000 in one year, the bond pays $1000 in two years. What is the interest rate per year on this two-year discount bond?
Answer:
Answer is explained in the explanation section below.
Explanation:
Part a.
[tex]P^{B}[/tex] will be less than $1000.
Reason: [tex]P^{B}[/tex] + interest = $1000, since interest >0 (Cannot be negative)
Hence,
[tex]P^{B}[/tex] < $1000
Part b.
Assuming the amount of interest to be i, [tex]P^{B}[/tex] would be $1000 - I
Rate of interest would be:
($1000 - ($1000-i)) / ($1000 - i) = i / ($1000 - i)
Rate of interest = i / ($1000 - i)
Part c.
If [tex]P^{B}[/tex] rises, the interest rate on these bonds would come down. Going back to a. [tex]P^{B}[/tex] = $1000 - i, and if [tex]P^{B}[/tex] rises, it implies that i reduces, which means that rate of interest will be reduced.
Part d.
If $1000 is a payment two years later, it implies that i (refer to b.) is the interest for two years. Assuming annual compounding, let's calculate rate of interest as follows:
Interest for two year (i) = $1000 - [tex]P^{B}[/tex] at the rate of i per year
= [tex]P^{B}[/tex] X i / 100 + ([tex]P^{B}[/tex] X (1+i/100))X i/100
We can solve for i to get annual rate of interest.
Factory rent 3140
Company advertising 1070
Wages paid to assembly workers 31000
Depreciation for salespersons' vehicles 2180
Screws 580
Utilities for factory 870
Assembly supervisor's salary 3520
Sandpaper President's salary 135
Plastic tubing 5040
Paint 4170
Sales commissions 225
Factory insurance 1210
Depreciation on cutting machines 1100
Wages paid to painters 2130
Determine the total cost for each of the following:
a. Direct Materials
b. Direct Labor
c. Manufacturing Overhead
d. Prime Cost
e. Conversion Cost
f. Total Product Cost
Answer and Explanation:
The computation is shown below:
a. The direct material cost is
Screws $580
Sandpaper $135
Plastic Tubing $4170
Paint $225
Cost of Direct Material $5,110
b. The direct labor cost is
Wages paid to Assembly workers $31,000
Assembly Supervisors Salary $3,520
Wages paid to painters $8,200
Cost of Direct Labor $42,720
d. The Prime Cost is
= Direct Labor + direct material
= $42,720 + $5,110
= $47,830
c. The Manufacturing Overheads is
Factory Rent $3,140
Utilities for factory $870
Factory Insurance $1,100
Depreciation on cutting Machines $2,130
Manufacturing overhead cost $7,240
e. The conversion cost is
= Prime cost + manufacturing overhead
= $47,830 + $7,240
= $55,070
f. The total product cost is
= Conversion cost + Production cost + selling overhead
= $55,070 + $5,040 $1,070 + $2,180 + $1,210
= $64,570
On January 1, 2016, Piper Co., purchased a machine (its only depreciable asset) for $900,000. The machine has a five-year life, and no salvage value. Sum-of-the-years'-digits depreciation has been used for financial statement reporting and the elective straight-line method for income tax reporting. Effective January 1, 2019, for financial statement reporting, Piper decided to change to the straight-line method for depreciation of the machine. Assume that Piper can justify the change. Piper's income before depreciation, before income taxes, and before the cumulative effect of the accounting change (if any), for the year ended December 31, 2019, is $750,000. The income tax rate for 2019, as well as for the years 2016-2018, is 30%. What amount should Piper report as net income for the year ended December 31, 2019
Answer:
$462,000
Explanation:
Computing the Sum-of-the-years'-digits depreciation
Accumulated Depreciation till 2018 = $900,000*(5+4+3)/15
Accumulated Depreciation till 2018 = $900,000*12/15
Accumulated Depreciation till 2018 = $720,000
Book Value at beginning 2019 = $900,000 - $720,000 = $180,000
Depreciation Expense in 2019 = $180,000/2 = $90,000
Net Income before depreciation & taxes = $750,000
Depreciation = $90,000
EBT = Net Income before depreciation & taxes - Depreciation = $750,000 - $90,000 = $660,000
Tax Expenses = EBT * Tax rate = $660,000*30% = $198,000
Net Income = EBT - Tax Expenses
Net Income = $660,000 - $198,000
Net Income = $462,000
So therefore, Piper should report $462,000 as net income for the year ended December 31, 2019
Ambiguity can arise as to whether receivables have been sold or instead are being used as collateral for a loan whenever certain obligations, duties, or rights regarding the transferred receivables are retained by the transferor. In distinguishing between sales and collateralized borrowings using receivables, the critical issue:________
a. is whether the transferor surrenders control over the receivables.
b. comes down to how clearly the rights, etc. being retained are specified in the transfer agreement.
c. is whether any gain or loss related to the transfer is recognized in earnings.
d. is whether the terms regarding the transfer were initiated by the transferor or transferee.
Answer:
is whether the transferor surrenders control over the receivables
Explanation:
In Sales of Receivables and Collateralized Borrowing,.companies do not want to wait for payments to arrive as they simply quickens cash collection with help of bank or financing company and also factoring and collateralized borrowings are various means to speed up cash collections. In Collateralized borrowing, receivables are simply collateral. Company gets cash from bank and is saddle with the responsibility for repaying loan.
Issues regarding collateralized borrowing are the sales of receivables had the purchaser is called a factor, borrowing using receivables as collateral and accounts receivable is not wipe off from seller's books.
Ultra Fine Furnishings is in the process of selling its peripheral businesses and focusing on its upscale clients. In conjunction with this reorganization, the dividend will be decreased by 10 percent for the next 3 years. After that, the dividend will resume increasing at an annual rate of 5 percent. The required return on this stock is 14 percent and the last dividend paid was $2.40 a share. What is one share of this stock worth today?
Answer:
$18.35
Explanation:
P0 = D1/(1+r)^1 + D2/(1+r)^2 + D3/(1+r)^3 + P3/(1+r)^3
D1 = $2.40 * 0.90 = $2.16
D2 = $2.16 * 0.90 = $1.944
D3 = $1.944 * 0.90 = $1.7496
P3 = D3*(1+g)/(r-g) = $1.7496*(1+0.05)/(0.14-0.05) = $20.412
P0 = D1/(1+r)^1 + D2/(1+r)^2 + D3/(1+r)^3 + P3/(1+r)^3
P0 = [$2.16/(1+0.14) + $1.944(1+0.14)^2 + $1.7496/(1+0.14)^3 + $20.412/(1+0.14)^3]
P0 = $18.35
Therefore, the worth of the stock today is $18.35.
M Corp. has an employee benefit plan for compensated absences that gives each employee 15 paid vacation days. Vacation days can be carried over indefinitely. Employees can elect to receive payment in lieu of vacation days. At December 31, 2021, M's unadjusted balance of liability for compensated absences was $35,400. M estimated that there were 200 total vacation days available at December 31, 2021. M's employees earn an average of $177 per day. After recording any necessary adjustment, in its December 31, 2021, balance sheet, what amount of liability for compensated absences is M required to report
Answer:
$35,400
Explanation:
Calculation for what amount of liability for compensated absences is M required to report
Using this formula
Liability for compensated absences=Total vacation days available at December 31, 2021 *Average wage per day
Let plug in the formula
Liability for compensated absences=200*$177 per day
Liability for compensated absences=$35,400
Therefore the Liability for compensated absences at December 31, 2021 will be $35,400
Description Items A. Occurs when the contract rate is less than the market rate. B. Equals par value minus any unamortized discount or plus any unamortized premium. C. Is unregistered; interest is paid to whoever possesses them. D. Maintains a separate asset account from which bondholders are paid at maturity. E. Pledges specific assets of the issuer as collateral. F. Can be exchanged for shares of the issuer's stock. G. Issuer may retire it at a stated dollar amount before maturity. H. Backed by the issuer's general credit standing.
Answer:
1. Discount on Bonds Payable.
2. Carrying Value of Bonds
3. Bearer bonds
4. Sinking Fund Bonds
5. Secured bond
6. Convertible bond
7. Callable Bonds
8. Unsecured Bonds
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.
Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.
The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest.
In the securities market, the different types of bond includes;
A. Discount on Bonds Payable: occurs when the contract rate is less than the market rate.
B. Carrying Value of Bonds: equals par value minus any unamortized discount or plus any unamortized premium.
C. Bearer bonds: is unregistered; interest is paid to whoever possesses them.
D. Sinking Fund Bonds: maintains a separate asset account from which bondholders are paid at maturity.
E. Secured bonds: pledges specific assets of the issuer as collateral.
F. Convertible bond: can be exchanged for shares of the issuer's stock.
G. Callable Bonds: issuer may retire it at a stated dollar amount before maturity.
H. Unsecured Bonds: Backed by the issuer's general credit standing.
Answer:
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Question 7 of 10
Your company emphasizes the important of conserving (not wasting)
resources. How can you support that value when you print an 8-page report
you were asked to bring to your department's monthly meeting?
A. Use the Print option for two-sided printing.
B. Post the report online before printing it.
C. Use the Print option to create extra copies.
D. Use the Save option to choose a format readers can open.
SUBMIT
Answer:
A. Use the Print option for two-sided printing.
I'd choose A, although I don't really understand what option D means..
The type of system that integrates the information of departments and functions of a company into a single computer system is called a(n) Multiple choice question. Electronic Data Processing system. Enterprise Resource Planning (ERP) system. Accounting Data system.
Answer:
The appropriate alternative is option B (ERP system).
Explanation:
The ERP system has become a corporation software platform that has the core purpose of integrating various processes and employees throughout the financial institution into a standard desktop software application that might boost the growth of the agency. They encourage organizations to implement resource planning by assimilating all of the mechanisms necessary to execute one‘s corporations with such a single platform.The two other possibilities are not connected to the condition in question. Therefore the choice above is the perfect one.
The next three questions are based on the following information: Demand for an item is 1000 units per year. A processing fee of $10 will be charged for each order placed. The purchasing cost of the item is $20. The annual cost to carry an item in inventory is 20% of the item costs. What is the unit inventory holding cost
Answer:
$4.00
Explanation:
The cost of purchasing 1000 units per year is computed thus:
the annual cost of purchase=annual demand*cost per unit
annual demand=1000
cost per unit=$20
the annual cost of purchase=1,000*$20
the annual cost of purchase=$20,000
The cost of carrying or holding the inventory for one year is 20% of cost of purchase
Annual holding cost=20%*$20,000
Annual holding cost=$4,000
the unit inventory holding cost=annual holding cost/annual demand
the unit inventory holding cost=$4,000/1000
the unit inventory holding cost=$4.00
Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended juices are then bottled and packed for shipping in the Bottling Department. The following information pertains to the operations of the Blending Department for June.
Percent Completed
Units Materials Conversion
Work in process, beginning 20,000 100% 75%
Started into production 180,000
Completed and transferred out 160,000
Work in process, ending 40,000 100% 25%
Materials Conversion
Work in process, beginning $25,200 $24,800
Cost added during June $334,800 $238,700
Required:
1. Calculate the Blending Department's equivalent units of production for materials and conversion in June.
2. Calculate the Blending Department's cost per equivalent unit for materials and conversion in June.
3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June.
4. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June.
5. Prepare a cost reconciliation report for the Blending Department for June.
Answer:
Sunspot Beverages, Ltd.
Blending Department
1. Equivalent units of production:
Units Materials Conversion
Completed and transferred out 160,000 160,000 160,000
Work in process, ending 40,000 40,000 10,000
Total equivalent units 200,000 170,000
2. Cost per equivalent unit:
Materials Conversion
Total cost of production $360,000 $263,500
Total equivalent units 200,000 170,000
Cost per equivalent unit $1.80 $1.55
3 & 4. Cost assigned to:
Units Materials Conversion Total
Completed and transferred out 160,000 $288,000 $248,000 $476,000
Work in process, ending 40,000 72,000 15,500 87,500
Total costs assigned $360,000 $263,500 $623,500
5. Cost Reconciliation Report:
Materials Conversion Total
Work in process, beginning $25,200 $24,800 $50,000
Cost added during June $334,800 $238,700 573,500
Total cost of production $360,000 $263,500 $623,500
Completed and transferred out $288,000 $248,000 $476,000
Work in process, ending 72,000 15,500 87,500
Total costs assigned $360,000 $263,500 $623,500
Explanation:
a) Data and Calculations:
Percent Completed
Units Materials Conversion
Work in process, beginning 20,000 100% 75%
Started into production 180,000
Completed and transferred out 160,000
Work in process, ending 40,000 100% 25%
Materials Conversion
Work in process, beginning $25,200 $24,800
Cost added during June $334,800 $238,700
Total cost of production $360,000 $263,500
Presented below is information related to Swifty Corporation.
Oct. 1 Diane Lexington begins business as a real estate agent with a cash investment of $21,688 in exchange for common stock.
2 Hires an administrative assistant.
3 Purchases office furniture for $2,494, on account.
6 Sells a house and lot for N. Fennig; bills N. Fennig $3,904 for realty services performed.
27 Pays $922 on the balance related to the transaction of October 3.
30 Pays the administrative assistant $2,711 in salary for October.
Date Account Titles Ref. Debit Credit
Oct. 1
2
3
6
27
30
Answer:
1) Oct 1
Dr Cash $21,688
Cr Common stock $21,688
2. No entry
3. Oct 3
Dr Cost of real estate service $2,494
Cr Accounts payable $2,494
4. Oct 1
Dr Accounts receivable $3,904
Cr Reality service revenue $3,904
5. Oct 27
Dr Accounts payable $922
Cr Cash $922
6. Oct 30
Dr Cost of real estate service $2,711
Cr Cash $2,711
Explanation:
Preparation of the debit-credit analysis for each transaction.
1) Oct 1
Dr Cash $21,688
Cr Common stock $21,688
[Being to record Issued common stock to properties]
2. No entry
3. Oct 3
Dr Cost of real estate service $2,494
Cr Accounts payable $2,494
[Being to record Purchased on account office furniture]
4. Oct 1
Dr Accounts receivable $3,904
Cr Reality service revenue $3,904
[Being to record Sold reality estate and bill raised]
5. Oct 27
Dr Accounts payable $922
Cr Cash $922
[Being to record paid dues of Oct 3 in part]
6. Oct 30
Dr Cost of real estate service $2,711
Cr Cash $2,711
[Being to record Salary paid to administrative staff]
Efficiency and effectiveness (Connect, Perform)
Read the scenario and then complete the sentence with the correct tom.
Your parents are hosting the huge annual family reunion this year, and they have determined that quite a bit of work needs to be done before all the relatives show up. They ask if you will repair the leaking faucets and replace the rec room carpet. They ask your sister to rid the lawn of weeds and reseed the bare patches, and they ask your brother to rent tents, a huge barbeque grill, and other equipment. They want the family to feel comfortable and have fun.
Thanks to your family's excellent planning, the reunion achieves high efficiency. No one is stressed out or exhausted, spending came in under budget, and everyone had a good time.
Rick is a student at Capstone College. He developed a schedule that he thought would let him spend the minimum amount of time studying while still getting good grades, Rick is following his schedule, but he's not getting the grades he hoped he would get what is the best way to describe Rick's approach to studying?
A. Neither effective nor efficient.
B. Efficient but not effective.
C. Effective but not efficient.
D. Both effective and efficient.
Answer:
Rick's approach to studying is:
B. Efficient but not effective.
Explanation:
Rick achieved efficiency by reducing the amount of time he spends studying so that he could have personal time and still make good grades. But, according to the scenario, he kept to his schedule but could not make his targeted grades. This implies that his efficient schedule is not producing the required results. It is merely efficient but not effective. Effectiveness deals strictly with the production of results or output and not with planning.
The Coyote Watershed has two large reservoirs built and operating on-stream to capture storm runoff in the upper watershed. They are named Coyote and Anderson Reservoirs. The capacities of these two reservoirs are 23,244 ac-ft and 90,373 ac-ft, respectively. Coyote Reservoir is approximately five miles upstream from the high water line of Anderson Reservoir and is regulated by releasing water downstream into Anderson Reservoir.
In January, 2017, storms added considerable volume of water to this set of reservoirs, approximately 20,000 ac-ft of runoff were captured. Assuming the upper watershed is 200 square miles and is saturated (100% runoff), calculate the total inches of rain needed to add this amount of runoff to yield this net increase in the two reservoirs combined. Hint: 1 sq. mi. = 640 acres 1 acre-ft= 12 acre inches
Answer:
The answer is "1.875 in of rain"
Explanation:
The reservoir size is negligible. It's just a problem how often rain is required for 20000 acre-feet across an area of 200 square miles.
Calculating the area in acre:
[tex]= 200 \ mi^{2} \times 640 \frac{acre}{mi^2}\\\\= 128,000 \ acres[/tex]
calculating the value of the rainfall in feet:
[tex]= \frac{20,000 \ acre\-feet}{128,000 \ acres}\\\\= 0.15625 \ ft[/tex]
calculating the value of Rainfall in inches:
[tex]= 0.15625 \ ft \times 12 \frac{in}{ft}\\\\= 1.875 \ \text{in of rain}[/tex]
Bocelli Co. purchased $120,000 of 6%, 20-year Sanz County bonds on May 11, Year 1, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Bocelli Co. sold $30,000 of the Sanz County bonds at 99 plus $150 accrued interest less a $100 brokerage commission. Provide journal entries for the following:
a. The purchase of the bonds on May 11 plus 40 days of accrued interest; assume a 360-day year.
b. Semiannual interest on October 1.
c. Sale of the bonds on October 31.
d. Adjusting entry for accrued interest of $1,365 on December 31, Year 1.
Answer:
S/n General journal Debit Credit
a Investment in Sanz County bonds $120,000
Interest $800
(120,000*6%*40/360)
Cash $120,800
(The purchase of the bonds on May 11 plus 40 days of accrued
interest; assume a 360-day year.)
b. Cash $3,600
Interest receivable $800
Interest revenue $2,800
(Semiannual interest on October 1)
c. Cash(150* (99%*30,000) - $100) $29,750
Loss on sale of investments $400
Investment in Sanz County bonds $30,000
Interest revenue $150
(Sale of the bonds on October 31)
d. Interest receivables $1,365
Interest revenue $1,365
(Adjusting entry for accrued interest of $1,365 on
December 31, Year 1.)
For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product.
1. Property taxes, factory.
2. Boxes used for packaging detergent produced by the company.
3. Salespersons' commissions.
4. Supervisor's salary, factory.
5. Depreciation, executive autos.
6. Wages of workers assembling computers.
7. Insurance, finished goods warehouses.
8. Lubricants for production equipment.
9. Advertising costs.
10. Microchips used in producing calculators.
11. Shipping costs on merchandise sold.
12. Magazine subscriptions, factory lunchroom.
13. Thread in a garment factory.
14. Billing costs.
15. Executive life insurance.
16. Ink used in textbook production.
17. Fringe benefits, assembly-line workers.
18. Yarn used in sweater production.
19. Wages of receptionist, executive offices.
Answer:
Part 1
Variable or Fixed
a. Variable Costs
Boxes used for packaging detergent produced by the company.
Wages of workers assembling computers.
Salespersons' commissions.
Microchips used in producing calculators.
Shipping costs on merchandise sold.
Thread in a garment factory.
Fringe benefits, assembly-line workers
Yarn used in sweater production
b. Fixed Costs
Property taxes, factory.
Supervisor's salary, factory.
Depreciation, executive autos.
Insurance, finished goods warehouses.
Lubricants for production equipment.
Advertising costs.
Magazine subscriptions, factory lunchroom.
Billing costs.
Executive life insurance.
Ink used in textbook production.
Wages of receptionist, executive offices.
Part 2
Selling or Administrative or Manufacturing Cost
a. Selling Cost
Salespersons' commissions.
Advertising costs.
Shipping costs on merchandise sold.
b. Administrative Cost
Depreciation, executive autos.
Billing costs.
Executive life insurance.
Wages of receptionist, executive offices.
c. Manufacturing Cost
Property taxes, factory.
Boxes used for packaging detergent produced by the company.
Supervisor's salary, factory.
Wages of workers assembling computers.
Insurance, finished goods warehouses.
Lubricants for production equipment.
Microchips used in producing calculators.
Magazine subscriptions, factory lunchroom.
Thread in a garment factory.
Ink used in textbook production.
Fringe benefits, assembly-line workers
Yarn used in sweater production
Part 3
Direct or Indirect Cost
a. Direct Cost
Boxes used for packaging detergent produced by the company.
Wages of workers assembling computers.
Microchips used in producing calculators.
Thread in a garment factory.
Yarn used in sweater production
b. Indirect Cost
Property taxes, factory.
Supervisor's salary, factory.
Insurance, finished goods warehouses.
Lubricants for production equipment.
Magazine subscriptions, factory lunchroom.
Ink used in textbook production.
Fringe benefits, assembly-line workers
Explanation:
Variable Costs vary with the number of units sold or produced, whilst fixed cost remain constant.
Manufacturing Costs comprises of all costs related to manufacture of the products.
Direct Cost are those that can be easily traced on the product being manufactured, whilst indirect costs are difficult to trace to the product being manufactured.
The below table shows the (variable/fixed),(selling/administrative/manufacturing), and (direct/indirect) costs for various cost items as follows:
Variable costs: Costs that vary in direct proportion to the number of units produced or sold. Examples include direct materials, direct labor, and sales commissions.Fixed costs: Costs that remain constant regardless of the number of units produced or sold. Examples include rent, salaries of administrative staff, and insurance premiums.Selling costs: Costs incurred in promoting and selling products or services, such as advertising expenses and sales commissions.Administrative costs: Costs associated with the general administration and management of a business, such as salaries of administrative staff, office supplies, and utilities.Manufacturing costs: Costs directly associated with the production of goods, including direct materials, direct labor, and manufacturing overhead.Direct costs: Costs that can be directly traced to a specific product or service, such as the cost of raw materials used in manufacturing a particular product.Indirect costs: Costs that cannot be directly attributed to a specific product or service but are incurred for the overall operation of the business, such as factory rent and utilities.
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At his new job, Carlos notices that everyone places high values on their families and each others' families, birthdays are always celebrated, and flexible schedules are permitted to facilitate family involvement as long as the work is still getting done. Everyone is very relaxed and friendly. Carlos has made several observations about the:________
a. organizational structure.
b. ethical climate.
c. morale and performance programs.
d. codes of conduct.
e. corporate culture.
Answer:
e. corporate culture
Explanation:
Carlos has made several observations about the corporate culture. In other words, his observations were mainly about the believes and decisions that the company has made regarding its employees and outside of work factors. Which in this case are families. Their corporate culture values family a lot and they seem to hire individuals whose traits match these values as well. This is why they allow all of these leeways and benefits when regarding employee families.
Required information Skip to question [The following information applies to the questions displayed below.] Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the first process. During November, the first process transferred 780,000 units of product to the second process. Additional information for the first process follows. At the end of November, work in process inventory consists of 185,000 units that are 50% complete with respect to conversion. Beginning work in process inventory had $188,175 of direct materials and $196,313 of conversion cost. The direct material cost added in November is $1,259,325, and the conversion cost added is $3,729,937. Beginning work in process consisted of 76,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 76,000 were from beginning work in process and 704,000 units were started and completed during the period. Required: For the first process: 1. Determine the equivalent units of production with respect to direct materials and conversion.
Answer:
Direct materials = 965,000 units Conversion = 872,500 units
Explanation:
a. Direct materials
Direct materials are added at the beginning of the process so ending EUP is 100% in respect to EUP.
EUP Direct materials = Finished goods + Closing EUP
= 780,000 + 185,000
= 965,000 units
b. Conversion
= Finished goods + Closing EUP
= 780,000 + (0.50 * 185,000)
= 780,000 + 92,500
= 872,500 units
Jim recently joined the Austin Barter Club, an organization that facilitates the exchange of services between its members. This year Jim provided lawn-mowing services to other club members. Jim received the following from the barter club. Determine the amount, if any, Jim should include in his gross income in each of the following situations: (Leave no answers blank. Enter zero if applicable.)
a. Jim received $275 of car repair services from another member of the club.
b. Jim received a S150 credit that gave him the option of receiving a season pass at a local ski resort from another member of the club. However, he forgot to request the pass by the end of the ski season and his credit expired.
c. Jim received a S450 credit that can only be applied for goods or services from club members next year.
Solution :
a). In the context, Jim received $ 275 for the car repairing services form some member from the club. In this exchange of the services, an income is been received in amount of a value of the services received ( the gross income includes receipt of the services and also the money and goods). Therefore, Jim is being taxed on an amount of $275 for the car repair services.
b). The issue in this case is whether a "credit" represents the valuable right. As the right can be redeemed for the that is property worth of $150, then under the constructive receipt, Jim must recognize an income of $150.
c). Jim received an credit of $450 to be applied for the next year. If the credit can be redeemed or used for any future services, the taxpayer then can argue that the realization has not yet occurred. But, it has be included in Jim's gross income for the next year when his credit amount becomes the valuable right.
In preparation for the winter season, a clothing company is manufacturing parka and goose overcoats, insulated pants, and gloves. All products are manufactured in four different departments: cutting, insulating, sewing, and packing. The company has received firm orders for its products. The contract stipulates a penalty for undelivered items. The following table provides the pertinent data of the situation.
Department Parka Goose Pants Gloves Capacity
Cutting 0.30 0.30 0.25 0.15 1000
Insulating 0.25 0.35 0.30 0.10 1000
Sewing 0.45 0.50 0.45 0.22 1000
Packaging 0.15 0.15 0.10 0.05 1000
Demand 800 750 600 500
Unit profit 30 40 20 10
Unit Penalty 15 20 10 8
Formulate the Problem as a LP Problem.
Answer:
Let A represent no of Parka produced
Let B be number of Goose Produced
Let C be number of Number of Pants
Let D be number of Gloves
A', B', C' and D' are shortages in production if any. The range of these variables will be from 0 to Demand.
Out objective is to plan our production to maximize net profit (Profit-Penalty).
Maximize
P = 30A + 40B + 20C + 10D - 15A' - 20B' - 10C' - 8D'
s.t
0.3A + 0.3B + 0.25C + 0.15D ≤ 1000
0.25A + 0.35B + 0.30C + 0.10D ≤ 1000
0.45A + 0.50B + 0.40C + 0.22D ≤ 1000
0.15A + 0.15B + 0.10C + 0.05D ≤ 1000
0 ≤ A' ≤ 800
0 ≤ B' ≤ 750
0 ≤ C' ≤ 600
0 ≤ D' ≤ 500
The LP problem is:
Maximize [tex]z= 30x_1 + 40x_2 + 20x_3 +10x_4 - 15s_1 -20s_2 - 10s_3 - 8s_4[/tex]Subject to
[tex]0.3x_1 + 0.3x_2 + 0.25x_3+0.15x_4 \le 1000[/tex][tex]0.25x_1 + 0.35x_2 + 0.3x_3+0.1x_4 \le 1000[/tex][tex]0.45x_1 + 0.5x_2 + 0.45x_3+0.22x_4 \le 1000[/tex][tex]0.15x_1 + 0.15x_2 + 0.1x_3+0.05x_4 \le 1000[/tex][tex]x_1 + s_1 = 800[/tex], [tex]x_2 + s_2 = 750[/tex], [tex]x_3 + s_3 = 600[/tex], [tex]x_4 + s_4 = 500[/tex]Where: [tex]x_1,x_2,x_3,x_4 \ge 0[/tex]Represent the products with x1, x2, x3 and x4, and the slack variables with s
From the table entries, we have the unit profit and the unit penalty.
So, the maximized function would be:
Total profit - Total penalty.
This gives
[tex]z= 30x_1 + 40x_2 + 20x_3 +10x_4 - 15s_1 -20s_2 - 10s_3 - 8s_4[/tex]
The constraints for cutting, insulating, sewing and packaging would be:
[tex]0.3x_1 + 0.3x_2 + 0.25x_3+0.15x_4 \le 1000[/tex]
[tex]0.25x_1 + 0.35x_2 + 0.3x_3+0.1x_4 \le 1000[/tex]
[tex]0.45x_1 + 0.5x_2 + 0.45x_3+0.22x_4 \le 1000[/tex]
[tex]0.15x_1 + 0.15x_2 + 0.1x_3+0.05x_4 \le 1000[/tex]
Lastly, the demand entries would be the sum of the product variables, and the slack variables.
So, we have:
[tex]x_1 + s_1 = 800[/tex]
[tex]x_2 + s_2 = 750[/tex]
[tex]x_3 + s_3 = 600[/tex]
[tex]x_4 + s_4 = 500[/tex]
Hence, the LP problem is:
Maximize [tex]z= 30x_1 + 40x_2 + 20x_3 +10x_4 - 15s_1 -20s_2 - 10s_3 - 8s_4[/tex]
Subject to
[tex]0.3x_1 + 0.3x_2 + 0.25x_3+0.15x_4 \le 1000[/tex]
[tex]0.25x_1 + 0.35x_2 + 0.3x_3+0.1x_4 \le 1000[/tex]
[tex]0.45x_1 + 0.5x_2 + 0.45x_3+0.22x_4 \le 1000[/tex]
[tex]0.15x_1 + 0.15x_2 + 0.1x_3+0.05x_4 \le 1000[/tex]
[tex]x_1 + s_1 = 800[/tex], [tex]x_2 + s_2 = 750[/tex], [tex]x_3 + s_3 = 600[/tex], [tex]x_4 + s_4 = 500[/tex]
Where:
[tex]x_1,x_2,x_3,x_4 \ge 0[/tex]
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