On January 1 of this year, Barnett Corporation sold bonds with a face value of $500,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest annually on December 31. Barnett uses the effective-interest amortization method. Ignore any tax effects. Each case is independent of the other cases.

Complete the table below using the factors provided.

Case A (7%) Case B (8%) Case C (6%)
Cash received at issuance
Interest expense recorded in Year 1
Cash paid for interest in Year 1
Cash paid at maturity for bond principal

Answers

Answer 1

Answer:

Barnett Corporation

Table

                                                       Case A (7%)  Case B (8%)   Case C (6%)

Cash received at issuance             $500,000  $466,449.59  $536,800.44

Interest expense recorded in Year 1  35,000        37,315.97       32,208.03

Cash paid for interest in Year 1          35,000       35,000            35,000

Cash paid at maturity for

  bond principal                              $500,000  $500,000       $500,000  

Explanation:

a) Data and Calculations:

Face value of bonds issued = $500,000

Coupon rate = 7% annually

Maturity period = 10 years

                                                       Case A (7%)  Case B (8%)   Case C (6%)

Cash received at issuance             $500,000  $466,449.59  $536,800.44

Interest expense recorded in Year 1  35,000        37,315.97       32,208.03

Cash paid for interest in Year 1          35,000       35,000            35,000

Cash paid at maturity for

  bond principal                              $500,000  $500,000       $500,000  

Bonds Issuance                          At Par value    At Discount   At Premium

Cash received at issuance:

Case A (7%) Issued at par value

PV = Face Value/(1+0.07)^10

= $500,000/(1.07)^10

From an online calculator:

N (# of periods)  10

I/Y (Interest per year)  7

PMT (Periodic Payment)  35000

FV (Future Value)  500000

Results

PV = $500,000.00

Sum of all periodic payments $350,000.00

Total Interest $350,000.00

Interest expense for the first year = $35,000 ($500,000 * 7%)

Case B (8%) Issued at a discount

PV = Face Value/(1+0.08)^10

= $500,000/(1.08)^10

From an online calculator:

N (# of periods)  10

I/Y (Interest per year)  8

PMT (Periodic Payment)  35000

FV (Future Value)  500000

Results

PV = $466,449.59

Sum of all periodic payments $350,000.00

Total Interest $383,550.41

Interest expense for the first year = $37,315.97 ($466,449.59 * 8%)

Case C (6%) Issued at a premium

PV = Face Value/(1+0.06)^10

= $500,000/(1.06)^10

From an online calculator:

N (# of periods)  10

I/Y (Interest per year)  6

PMT (Periodic Payment) = 35000

FV (Future Value)  

500000

Results

PV = $536,800.44

Sum of all periodic payments = $350,000.00

Total Interest $313,199.56

Interest expense for the first year = $32,208.03 ($536,800.44 * 6%)


Related Questions

Education has no effect on income potential.
True
False

Answers

false
i mean i want to be a bball player and me learning about geometry has nothing to do with that

Working with people includes careers such as child care workers, social workers, and doctors.
O True
False

Answers

Answer:

I think false

Explanation:

because basta

False. Working with people does not necessarily include only careers such as child care workers, social workers, and doctors. There are many other careers that involve working with people, such as teachers, counselors, nurses, and customer service representatives.

Classify each of the following as a(n) Operating Activity, Investing Activity, or Financing Activity. 1. Issuance of bonds. select a type of activity 2. Sale of equipment. select a type of activity 3. Amortization expense. select a type of activity 4. Purchase of treasury stock. select a type of activity 5. Receipt of dividends on investment. select a type of activity 6. Purchase of land. select a type of activity

Answers

Answer:

1. Issuance of bonds

Cash-flow classification: Financing activity

2. Sale of equipment

Cash-flow classification: Investing activity

3. Amortization expense

Cash-flow classification: Operating activity

4. Purchase of treasury stock

Cash-flow classification: Financing activity

5. Receipt of dividends on investment

Cash-flow classification: Operating activity

6. Purchase of land

Cash-flow classification: Investing activity

Suppose you have a credit card bill of $1,275 for the month of October. If you pay the full balance before your bill is due, how much will you pay in interest?

Answers

Note that according to the above prompt, no interest will be paid on the credit card bill.

What is the rationale for the above response?

You will not be charged interest if you pay the entire balance before the payment is due.

Because interest is usually imposed on outstanding balances, if the entire debt is paid before the due date, there will be no unpaid balance and hence no interest to pay. Pay the balance before the due date to prevent interest charges and late penalties. If the balance is not paid in full, interest will be levied on the unpaid balance, which may rapidly pile up and make the credit card debt more expensive.

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The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for its four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication. (Do not round your intermediate calculations.) Purchasing Maintenance Fabrication Assembly Operating costs $ 35,000 $ 19,800 $ 99,000 $ 65,000 No. of purchase orders 16 4 Sq. ft. of space 3,450 2,5

Answers

Answer:

$8,319

Explanation:

Computation for the amount of Maintenance department expense to be allocated to Fabrication

First step is to calculate the total sum of square foot space

Using this formula

Total sum of square foot space = Fabrication square foot space + assembly square foot space

Let plug in the formula

Total sum of square foot space= 3,450 + 2,500

Total sum of square foot space= 5,950

Now let calculate the amount of Maintenance department expense to be allocated to Fabrication

Maintenance department expense = $ 19,800 × 2,500 ÷ 5,950

Maintenance department expense = $ 19,800 × 0.42017

Maintenance department expense = $8,319

Therefore the amount of Maintenance department expense to be allocated to Fabrication is $8,319

1. Normally, when buying a business, the seller:

does not sign a restrictive covenant.

notifies creditors 10 days prior to the sale of the business.

cannot assign his credit arrangements with suppliers to the buyer.

has little formal role or obligation in preparing documents and information necessary to the sale.

Answers

Answer:

C). cannot assign his credit arrangements with suppliers to the buyer.

Explanation:

As per the question, the 'seller is not able to allocate his credit adjustments associated with the suppliers to the potential buyer.' The seller must pay off and resolve his credit arrangements completely before selling off his property to the buyer. If he/she fails to do so, the buyer can sue him legally because the contract offers the asset or property to the buyer free of any previous credit adjustments with the seller. Thus, any such allocation would be considered illegal and cause damage to the seller and his image. Hence, option C is the correct answer.

why microeconomics is useful in business decision making? Explain​

Answers

Explanation: The study of microeconomics helps the decision makers to analyze and determine how the productive resources are allocated for various goods and services. It also helps in solving the producers' dilemma of what to produce, how much to produce and for whom to produce. <33

Explanation:

The study of microeconomics helps the decision makers to analyze and determine how the productive resources are allocated for various goods and services. It also helps in solving the producers' dilemma of what to produce, how much to produce and for whom to produce.

The following is TRUE about Inventory: A. Firms increase inventory because more inventory means more movement of materials B. Firms increase inventory because there are price discounts or transportation discounts associated with ordering in larger quantities C. Firms increase inventory because there is an opportunity cost to holding inventory D. Firms increase inventory because more inventory sitting for longer periods of time present more opportunities for damage, errors, rework, theft, and obsolescence E. Firms increase inventory because the more we spend on inventory, the more we need to spend on other inventory-related expenditures

Answers

Answer:

The answer is "Option C".

Explanation:

Firms could already retain excessive stock in a position to take account of lower pricing provided by suppliers and to fill a full truckload, which lowers shipping costs per unit. Anything else, holding a lot of inventory makes no sense; therefore, firms increase inventory as there is an economic benefit to storage.

There are sixteen regional federal reserve banks.
false
true
The Federal Reserve Bank accepts deposits and withdrawals from individuals.
false
true
A bank run is when people rush to deposit money in their accounts thanks to a higher interest rate on
saving.
false
Inflation is the gradual and continued rise in the cost of goods and services over a period of time. In
other words, you get less for your money.
true
false
true
To be solvent is when an institution or individual is unable to honor their monetary obligations.
true
false

Answers

The correct answers for the given questions about Regional banks:

1. False, There aren't sixteen regional federal reserve banks.

2. True, The Federal Reserve Bank accepts deposits and withdrawals from individuals.

3. False, A bank run is not when people rush to deposit money in their accounts thanks to a higher interest rate on saving.

4. True, Inflation is the gradual and continued rise in the cost of goods and services over a period of time.

5. True, To be solvent is when an institution or individual is unable to honor their monetary obligations.

What is a Federal bank?

There are 12 regional banks in the system, each named after the city in which they are headquartered. Banking supervision is the responsibility of the Board of Governors of the Federal Reserve Bank in Washington, D.C.

Each Federal Reserve district has facilities for receiving additional ineligible money deposits and processing foreign exchange orders.

When multiple customers of a bank or another banking institution withdraw their deposits at the same time out of concern for the bank's stability, this is called a bank run.

The rate at which prices rise over a period of time is called inflation. Inflation may be described in general terms such as: B. A general increase in prices or an increase in living standards. A company's ability to meet its long-term financial obligations is known as 'solvency'.

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An acrostic poem describing the word peculiar

Answers

Huh?? What are you taking abouttttt LOL

Justin Company's budget includes the following credit sales for the current year: September, $40,000; October, $51,000; November, $45,000; December, $47,000. Credit sales are collected as follows: 15% in the month of sale, 60% in the first month after sale, 20% in the second month after sale, and 5% is uncollectible. How much cash can Justin expect to collect in November as a result of current and past credit sales

Answers

Answer:

$45,350

Explanation:

Follow the Company`s collection history to determine the November Cash Collection.

November Cash Collection :

Collected in month of sale - 15% x $45,000                       $6,750

Collected for 1st month after sale - 60% x $51,000         $30,600

Collected for 2nd month after sale - 20% x $40,000        $8,000

Total                                                                                     $45,350

Therefore,

The cash Justin can expect to collect in November is $45,350

Question

You are International Business Manager at a UK based company. Your company has identified USA and Europe as potential markets and wish to expand asap and plans a full-scale expansion. You are requested to analyse both projects and advise.

In considering such large project, you must work out the risk of each project, cost of capital and NPV. Allocate discount rate for each project according to current international business climate and justify why you allocated the discount rate for each region. Discuss how you aim to manage international risks.

Projected cash flows in respective currencies:

Year Net Cash Flow – USA USD Net Cash Flow - Europe EUR
0 -20 million -20 million
1 2 million 2 million
2 4 million 3 million
3 5 million 4 million
4 6 million 8 million
5 8 million 8 million

Instructions:
a. Briefly discuss viability of both projects in today’s global business context. Based on your discussion allocate and justify discount rate for both projects. (30 Marks)
b. How much investment (GBP) is needed for each project and what is the NPV of each project? Use spot and forward exchange rates to discuss. (30 Marks)
c. Considering current world economic climate, the future exchange rates are uncertain. How would you analyse/anticipate the change in exchange rates? Write a brief proposal to mitigate impact of possible exchange rate fluctuations (30 Marks)
d. Discuss your calculations and advise which project should be selected. (10 Marks)

(Total up to 1000 words + calculations = 1500 Words)

Answers

Answer:

a. Viability of both projects in today’s global business context:

In order to determine the viability of expanding into the USA and Europe, it is important to consider the current global business context. One factor to consider is the economic climate in each region. If the economy is strong and growing, it may be a good time to expand as there may be more demand for the company's products or services. On the other hand, if the economy is struggling or in a downturn, it may be more risky to expand as there may be less demand for the company's products or services.

Another factor to consider is the competitive landscape in each region. If the market is already saturated with similar products or services, it may be more difficult for the company to break into the market and achieve success. On the other hand, if there is less competition or a gap in the market, the company may have a better chance of success.

Based on the projected cash flows for each region, it appears that both the USA and Europe could be viable markets for the company to expand into. The projected cash flows for both regions show steady growth over the next five years, indicating potential demand for the company's products or services. However, without further information on the economic and competitive landscape in each region, it is difficult to fully assess the viability of each project.

In terms of allocating a discount rate for each project, the discount rate is used to determine the present value of the projected cash flows. A higher discount rate indicates a higher level of risk, and therefore a lower present value of the projected cash flows. A lower discount rate indicates a lower level of risk, and therefore a higher present value of the projected cash flows.

Given the information provided, it is difficult to determine the specific discount rate that should be applied to each project. However, some factors to consider in allocating the discount rate for each region could include the economic climate, the level of competition, and any specific risks associated with expanding into each region. For example, if the economic climate in the USA is stronger than in Europe, or if there is less competition in the USA, the discount rate for the USA expansion project may be lower than the discount rate for the Europe expansion project.

b. Investment and NPV of each project:

To determine the investment needed for each project, we need to first convert the projected cash flows for each region into GBP using the current spot exchange rate. We can then use these converted cash flows to calculate the NPV of each project using the allocated discount rate.

Assuming the current spot exchange rate for USD to GBP is 0.78, and the current spot exchange rate for EUR to GBP is 0.87, the projected cash flows for each region in GBP would be as follows:

Year Net Cash Flow - USA (GBP) Net Cash Flow - Europe (GBP)

0 -15.6 million -17.4 million

1 1.6 million 1.7 million

2 3.2 million 2.6 million

3 4.0 million 3.5 million

4 4.8 million 6.9 million

5 6.4 million 6.9 million

To calculate the NPV of each project, we need to allocate a discount rate for each region. As mentioned previously, the specific discount rate will depend on the economic and competitive landscape in each region, as well as any specific risks associated with expanding into each region.

For the purposes of this analysis, let's assume a discount rate of 8% for the USA expansion project and 10% for the Europe expansion project. Using these discount rates, the NPV of each project would be as follows:

The current global business environment must be taken into account when evaluating whether expanding into the USA and Europe will be profitable.

What is discount rate ?

The state of each region's economy should be taken into account. If the economy is robust and expanding, it might be a good idea to grow because there might be higher demand for the firm's goods or services. On the other hand, if the economy is struggling or going through a downturn, expanding your business could be riskier because there might be less of a market for your company's goods or services.

The level of competition in each region is another thing to take into account. It could be more challenging for the business to succeed if the market is already saturated with comparable goods or services.enter the market and succeed. On the other hand, the company may have a better chance of success if there is less competition or a gap in the market.

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On a business's income statement, inventory affects

Answers

On a business's income statement, inventory affects the balance of retained earnings on the statement of retained earnings.

What is income ?Income refers to the consumption and savings opportunity that a business captures within a specific time duration.Income is difficult to define conceptually and its definition varies from region to region. The term "revenue" generally refers to the transfer of money, property, and other  value received over a  period of time in exchange for services or products. Income is defined according to the context in which the term is used. At the most basic level, income can be categorized as the money a person makes. Income can be received from a variety of areas. Wages, dividends, self-employment, etc. Income can be divided into two main categories: taxable income and non-taxable income.

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Answer: net income

Explanation: just took the quix

How to choose scented candles online?

Answers

I mean don’t really know what your asking but I’m just gonna guess so if your talking about how to find the scent of candle you like online is kinda of think about what kind of scents you like for example like fruit smells so just go off what scents you like and the second guess if your talking about how to go online and look go in the internet type in the store you want click on the link search up candles there you go! Hope this helped.

Process or Sell Product A is produced for $3.32 per pound. Product A can be sold without additional processing for $4.25 per pound or processed further into Product B at an additional cost of $0.4 per pound. Product B can be sold for $4.56 per pound. Prepare a differential analysis dated November 15 on whether to sell A (Alternative 1) or process further into B (Alternative 2). If required, round your answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Answers

Answer and Explanation:

The preparation of the differential analysis is presented below;

Particulars         Sell product A               Product B further     Difference

Revenue

per pound               $4.25                           $4.56                   $0.31

Cost per pound      $3.32                           $3.72                   $0.4

                                                     ($3.32 + $0.4)

Income cost

per pound             $0.93                            $0.84                  -$0.09

So it would be sell off as the firm would be facing a loss of $0.09 per pound

Answer the question below. Use the rubric linked above for help if needed.
Think about the items that you use every day. Do you use inelastic goods? Do you use elastic goods? Give two examples of each type of good. Explain why you use each good and determine whether or not you
could survive without each good. Use details to support your answer.

Answers

Luxury products and particular foods and beverages are elastic goods because demand is influenced by price changes for them. Products like nicotine and prescription medications may be considered inelastic goods since the demand for them frequently remains constant despite price fluctuations.

What are the goods?

The term Goods are products and resources that satisfy people's needs and wants. A good can be a natural science object, a provided service, or some accumulation of the two. Just about anything is good if it supplies some kind of benefit to consumers.

Electronics or clothing are examples of elastic goods, whereas food and prescription medications are examples of inelastic goods. Cross elasticity gauges how demand for one good changes in response to price changes for another, related good.

Therefore, Luxury items and specific foods and beverages are considered elastic goods since the demand for them is affected by price variations.

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One reason why firms might want to pursue a strategic alliance strategy is to exploit
economies of scale. Exploiting economies of scale should reduce firm’s costs. Does this
mean that a firm pursuing an alliance strategy to exploit economies of scale is actually
pursuing a cost leadership strategy? Why or why not? Support your answer

Answers

So, a strategic alliance may benefit the combined group in two ways: one, it will enable them to target larger clients without facing significant rivalry

What is an economy of scale?

Economies of scale, which are commonly assessed by the quantity of product provided per unit of time, seem to be the cost savings that businesses gain as a result of the significant scale of the economy.

In order to lower manufacturing costs, economies of scale is the method of producing any good at a very high volume. Strategic alliances allow two businesses to more effectively merge their operations.

It will enable them to lower costs through economies of scale. Additional benefits of economies of scale include lower prices for goods or cost focus in the marketplace.

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Accounts receivable turnover. (Assume that all sales are on account.) (Round your answer to 2 decimal places.) 2. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 3. Inventory turnover. (Round your answer to 2 decimal places.) 4. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 5. Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.) 6. Total asset turnover.

Answers

Answer:

1. 7.38 times

2.49.46 days

3.5.81 times

4.62.82 days

5.112.78 Days

6. 1.64 times

Explanation:

1. Calculation to determine Accounts receivable turnover

First step is to calculate Account Receivable

Account Receivable = (beginning Account Receivables + ending Account Receivables)/2

Account Receivable = ( $9100+12300)/2

Account Receivable = $ 10700

Now let calculate the Account Receivables Turnover Ratio

Account Receivables Turnover Ratio = Sales / average Account Receivables

Account Receivables Turnover Ratio= $79000/10700

Account Receivables Turnover Ratio=7.38 times

2) Calculation to determine Average collection period

Average Collection Period = 365/ Account Receivables turnover ratio

Average Collection Period= 365 days /7.38

Average Collection Period=49.46 days

3) Calculation to determine Inventory turnover

First step is to calculate the Average Inventory

Average Inventory = (beginning inventory + ending inventory)/2

Average Inventory= ( $9700+8200)/2

Average Inventory= $ 8950

Now let calculate the Inventory Turnover Ratio

Inventory Turnover Ratio = Cost of goods sold / average inventory

Inventory Turnover Ratio= $52000/8950

Inventory Turnover Ratio= 5.81 times

4). Calculation to determine Average sale period.

Average Sales period = 365/ inventory turnover ratio

Average Sales period= 365 days /5.81

Average Sales period= 62.82 days

5). Calculation to determine the Operating cycle

Operating Cycle = Average Sales Period + Average Collection Period

Operating Cycle =49.96+62.82

Operating Cycle = 112.78 Days

6) Calculation to determine Total asset turnover

Fire step is to calculate the Average Assets

Average Assets = (beginning Assets + ending Assets)/2

Average Assets= ( $45960+50280)/2

Average Assets= $ 48120

Now let calculate the Assets Turnover Ratio

Assets Turnover Ratio = Sales / average Assets

Assets Turnover Ratio= $79000/48120

Assets Turnover Ratio= 1.64 times

Wang co manufactures and sells a single product that sells for 640 per unit; variable costs are 352 per unit. Annual fixed costs are 985500. Current sales volume is 4390000. Management targets an annual pretax income of 1315000. Compute the dollar sales to earn the target pretax net income

Answers

Answer:

Break-even point (dollars)= $5,112,222.22

Explanation:

Giving the following information:

Selling price= $640

Unitary variable cost= $352

Fixed costs= 985,500

Desired profit= $1,315,000

To calculate the sales in dollars to be sold, we need to use the following formula:

Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio

contribution margin ratio= (640 - 352) / 640= 0.45

Break-even point (dollars)= (985,500 + 1,315,000) / 0.45

Break-even point (dollars)= $5,112,222.22

A company has budgeted direct materials purchases of $230000 in July and $400000 in August. Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. During August, the following items were budgeted:
Wages Expense $60000
Purchase of office equipment 63000
Selling and Administrative Expenses 39000
Depreciation Expense 27000
The budgeted cash disbursements for August are:__________

Answers

Answer:

$511,000

Explanation:

The budgeted cash disbursements for August are :

Purchases - 70% x $400000                            $280,000

Purchases - 30 % x $230000                             $69,000

Wages Expense                                                   $60,000

Purchase of office equipment                             $63,000

Selling and Administrative Expenses                 $39,000

Total                                                                      $511,000

Lincoln Corporation, a U.S. corporation, owns 50% of the stock of a controlled foreign corporation (CFC). At the beginning of the year, Lincoln's basis in its CFC stock was $100,000. The CFC's current-year income was $1 million, $600,000 of which was subpart F income. The CFC has no global intangible low-taxed income, paid no foreign income tax and distributed no dividends. How much current taxable income must Lincoln report as a result of its ownership of the CFC

Answers

Answer:

$300,000

Explanation:

Calculation to determine How much current taxable income must Lincoln report as a result of its ownership of the CFC

Using this formula

Taxable income=Subpart F income * Ownership percentage

Let plug in the formula

Taxable income=$600,000*50%

Taxable income=$300,000

Therefore The amount of current taxable income that Lincoln must report as a result of its ownership of the CFC is $300,000

A restaurant is for sale for $200,000. It is estimated that the restaurant will earn $20,000 a year for the next 15 years. At the end of 15 years, it is estimated that the restaurant will sell for $350,000. Which of the following would be MOST LIKELY to occur if the investors required rate of return is 15 percent?
a. Investor would pursue the project
b. Investor would not pursue the project
c. Investor would pursue the project if the holding period were longer than 15 years
d. Not enough information provided

Answers

Answer:

B

Explanation:

to determine of the investor would pursue the project, we need to determine the value of the net present value

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.  

When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.

Cash flow in year 0 = $-200,000

Cash flow in year 1 - 14 = 20,000

Cash flow in year 15 = 20,000 + $350,000

I = 15%

NPV = -40,039.53

The npv is negative and the project should not be undertaken

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

-40,039.53

Thomas planned to set up a business that build custom house for high net-worth customers in Upstate NY on January 1st, 2018. He would borrow $1,500,000 from a bank to invest in the business as star-up capital and receive a minimum salary of $5,000/month.

Here is the list of some related items or products that he would need to start the
business:
- Lumber
- Roof
- Concrete
- Insulation
- Ducting
- Paint
- Corporate office building

He needs to hire you as an accountant to help his financial and accounting work, and one supervisor who is in charge of the supervision of building custom houses. His business’ cost drivers are provided in Table 1.

Question 1.1 - Cost Classification (10 points)


Required: Thomas needs your help in classifying the various costs. In order to manage these costs, he wants them identified using the information below. He asked that you use Table 2 (page 3) for your answers.

a) Behavior: fixed or variable cost
b) Traceability: direct or indirect
c) Financial reporting: product or period
d) If product cost, identify which items are direct materials, direct labor or
manufacturing overhead.

Question 1.2 - Costing Systems (10 points)
Thomas discussed the business plan with you. He was told that there are three different types of costing systems that exist in organizations – job order, process costing and activity based costing.

Required: Which type of costing system is his business most likely to use? Discuss?

I have it completed just need to check my work... would appreciate the help as soon as possible.

Answers

Answer 1.1:

a) The behavior of the costs listed in the question can be classified as follows:

Lumber: Variable cost

Roof: Variable cost

Concrete: Variable cost

Insulation: Variable cost

Ducting: Variable cost

Paint: Variable cost

Corporate office building: Fixed cost

b) The traceability of the costs can be classified as follows:

c) The financial reporting of the costs can be classified as follows:

d) Lumber, roof, concrete, insulation, ducting, paint: Direct materials

Which type of costing system is his business most likely to use Discuss?

Based on the information provided, it seems that Thomas' business is most likely to use a Job Order Costing System. This is because the business is building custom houses for high net-worth customers, which means that each house is unique and customized to the customer's specifications. This type of work is best suited for job order costing system, where the costs are accumulated for each specific job, and the cost of each custom house can be calculated separately. In contrast, Process Costing is used when the same products are being produced in large quantities, and Activity Based Costing is used to assign indirect costs to products or services based on the activities that go into producing them.

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g Choose the best response for each of the following statements. a. When the Federal Reserve makes an open market purchase, the Fed: multiple choice 1 sells bonds to the public, which decreases the money supply. buys bonds from the public, which decreases the money supply. buys bonds from the public, which increases the money supply. sells bonds to the public, which increases the money supply. b. If the Fed wants to increase interest rates, it should make an (Click to select) . This would (Click to select) the money supply and achieve the increase in interest rates.

Answers

Answer and Explanation:

a. In the case when the federal reserve would make an open market purchase so this means that the bonds are purchased from the public and due to this it rise the money supply

b. In the case when fed wants to rise the rate of interest it should make the open market sale due to this it decrease the money supply and the rate of interest would be increased

This is the impact when the transaction could taken place

What are two features of a discussion forum?

A.connects people based on location

B.hosts videos about events or activities

C.creates networks of people with common interests

D.provides quick, short messages to the public

E.facilitates posting questions that people can answer

Answers

Answer:

C. creates networks of people with common interests

E. facilitates posting questions that people can answer

Answer:

C & E

Explanation:

plato

explain why and how management is dynamic​

Answers

Answer:

Management has framed certain principles, which are flexible in nature and change with the changes in the environment in which an organization exits.

The Hershey Company uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.
Work in process, beginning:
Units in process 3,750
Percent complete with respect to materials 80%
Percent complete with respect to conversion 20%
Costs in the beginning inventory:
Materials cost $6,711.00
Conversion cost $2,885.00
Units started into production during the month 21,400
Units completed and transferred out
Costs added to production during the month:
Materials cost $61,906
Conversion cost CA I Costs added to production during the month:
Materials cost $61,906
Conversion cost $543,602
Work in process, ending:
Units in process 900
Percent complete with respect to materials 66%
Percent complete with respect to conversion 48%
Required:
a. Determine the equivalent units of production for material and conversion.
b. Determine the costs per equivalent unit for material and conversion.
c. Determine the cost of ending work in process inventory.
d. Determine the cost of the units transferred to the next department.

Answers

Answer:

The Hershey Company

                                                               Materials       Conversion

a. The equivalent units of production     24,844             24,632

b. Costs per equivalent unit                   $2.762           $22.186

c. The cost of ending work in process inventory is:

= $11,224.98

d. The cost of the units transferred to the next department is:

= $604,989

Explanation:

a) Data and Calculations:

                                                      Units     Materials       Conversion

Beginning work in process          3,750          80%                20%

Units started in the month         21,400

Units to be accounted for          25,150

Ending work in process                 900          66%                48%

Units completed/transferred   24,250         100%               100%

Equivalent units of production:

                                                      Units     Materials       Conversion

Units completed/transferred   24,250       24,250          24,250

Ending work in process                900             594                432

Total equivalent units                                  24,844           24,632

Costs of production               Materials         Conversion     Total

Costs of beginning WIP            $6,711              $2,885        $9,586

Costs added during month     61,906           543,602      605,508

Total costs of production      $68,617         $546,487     $615,094

Cost per equivalent unit:

Total costs of production      $68,617         $546,487

Total equivalent units             24,844             24,632

Cost per equivalent unit        $2.762           $22.186

Costs assigned to:

                                                      Materials       Conversion             Total

Units completed/transferred      $66,978.50     $538,010.50      $604,989

                                                (24,250 *$2.762)  (24,250 * $22.186)

Ending work in process                   1,640.63      $9,584.35         $11,224.98

                                                (594 * $2.762)           (432 * $22.186)

Laws passed by legislatures are called
Ordinances
Precedent laws
Statutory laws
Common laws

Answers

Answer:

yes they are called ordinance which is used to govern a group of people

They are called Statutory laws

Jackson Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 50 parts. A part requires 3 minutes in milling and 7 minutes in finishing. The move time between the two operations for a complete batch is 8 minutes. Under the lean philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 5 parts and the move time is eliminated. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and lean manufacturing methods. If required, round percentages to one decimal place.

Answers

Answer and Explanation:

The calculation is given below:-

Particulars               Traditional Philosophy     Manufacturing  

                                         Lean                        Philosophy

Value added                 3 + 7 = 10                              10

Non value added        10 × (50 - 1) = 490                  10 × (5 - 1) = 40

Total lead time                  500                                       50

Value-added ratio

(as a percent)              10 ÷ 500 × 100 = 2%                 10 ÷ 50 × 100 = 20%

Tanya (born 10-31-90) is single, has no dependents and will not itemize deductions. She cannot be claimed as a dependent by anyone else. Tanya can claim adjustments of $800 for her student loan interest and $1,200 for a contribution to her IRA. She had the following income:

Answers

If Tanya (born 10-31-90) is single, has no dependents and will not itemize deductions. She cannot be claimed as a dependent by anyone else. Tanya's adjusted gross income is: e. $23,564.

How to find the Adjusted  gross income?

Tanya Adjusted gross income (AGI)

Wages                       $22,594

Add Bank interest                 $320

Add Unemployment             $250

Add Alimony (Pre 2018)    $2,400

Total gross income $25,564

Claim adjustments:

Less Student loan interest  ($800)

Less IRA                               (1,200)

Taxable income      $23,564

($25,564 - $1800 - $1200)

Therefore we can conclude that her  taxable income is the amount of  $23564.

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The complete question is:

Tanya (born 10-31-90) is single, has no dependents and will not itemize deductions.  She cannot be claimed as a dependent by anyone else.  Tanya can claim adjustments of $800 for her student loan and $1200 for an IRA. She had the following income:

Wages                          $22,594

Bank interest         $320

Unemployment         $250

Alimony (Pre 2018)     $2,400

What is her AGI?

Choose one answer.

a. None of theseb. $24,994c. $25,564d. $22,594e. $23,564

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