Answer:
1.
2021 Gross profit/loss $15
2022 Gross profit/loss $12
2023 Gross profit/loss $23
2.
2021 Revenue recognized $0
2022 Revenue recognized $0
2023 Revenue recognized $220
2021 Gross profit/loss $0
2022 Gross profit/loss $0
2023 Gross profit/loss $50
3.Gross profit /loss ($3)
Explanation:
1. Computation of thr Gross Profit recognize over time assuming percentage of completion method
Using PERCENTAGE OF COMPLETION
Using this formula
Choose numerator ÷ Choose denominator = % complete to date
Actual costs to date÷ Estimated total costs= %
2021 $40 ÷ $160=25.00%
(40+120)
2022 $120(40+80) ÷$180(40+80+60) = 66.67%
2023 170 170 =100.00%
(40+80+50)
2021
To date - Recognized in prior years = Recognized in 2018
Construction revenue $55(220*25%) $0 $55
Less: Construction expense $40 $0 $40
Gross profit (loss) $15 $0 $15
2022
To date - Recognized in prior years = Recognized in 2019
Construction revenue $147(220*66.66%) $55 $92
Less: Construction expense $120(40+80) $40 $80
Gross profit (loss) $27 $15 $12
2023
To date - Recognized in prior years = Recognized in 2020
Construction revenue $220 $147 $73
Less: Construction expense $170(40+80+50) $120 $50
Gross profit (loss) $50 $27 $23
2. Calculation for the Statement showing revenue and gross profit assuming this project does not qualify for revenue recognition over time. ( $ in Million)
Year Revenue recognized Gross Profit (Loss) recognized
2021 $0 $0
2022 $0 $0
2023 $220 $50(220-170)
3 Computation of the Revenue and gross profit or loss to be recognized in 2022 (using the percentage of completion )
Percentages of completion
Choose numerator ÷ Choose denominator = % complete to date
Actual costs to date ÷Estimated total costs=%
2022 $120(40+80) ÷ $200(40+80+80) = 60.00%
2022
To date Recognized in prior years Recognized in 2019
Construction revenue $132(220*60) $55 $77
Less:Construction expense $120(40+80) $40 $80
Gross profit (loss) $12 $15 ($3)
Hicks Health Clubs, Inc., expects to generate an annual EBIT of $750,000 and needs to obtain financing for $1,200,000 of assets. Its tax bracket is 40%. If the firm uses short-term debt, its rate will be 7.5%, and if it uses long-term debt, its rate will be 9%. By how much will their earnings after taxes change if they choose the more aggressive financing plan instead of the more conservative plan
Answer:
Hicks Health Clubs, Inc. earnings after taxes will change by minus $10,800 if they choose the more aggressive financing plan instead of the more conservative plan.
Explanation:
Note: I experienced a difficulty submitting the explanation here. Kindly find attached the full answer and explanation in the attached Microsoft word document.
The following information is taken from the financial statements of Clybourn Company for the current year: Current Assets $ 400,000 Total Assets 895,000 Cost of Goods Sold 655,000 Gross Profit 205,000 Net Income 125,000 The gross profit percentage for the current year rounded to the nearest whole percent is closest to:
Answer: 24%
Explanation:
The following information can be gotten from the question:
Current Assets = $ 400,000
Total Assets = 895,000
Cost of Goods = Sold 655,000
Gross Profit = 205,000
Net Income = 125,000
Gross profit percent will be:
Gross profit/(Gross profit + cost of goods sold) × 100
= 205,000/(205,000 + 655,000) × 100
= 205000/860,000 × 100
= 23.8%
= 24%
On September 3, 20X8, Jackson Corporation purchases goods for a U.S. dollar equivalent of $17,000 from a Swiss company. The transaction is denominated in Swiss francs (SFr). The payment is made on October 10. The exchange rates were
Answer:
A.
DR Foreign Currency Transaction loss 1,000
CR Accounts Payable (SFr) $1,000
Explanation:
When the transaction was agreed on September 3, 20X8, the exchange rate was;
$0.85 : 1 franc
Therefore the $17,000 was valued at;
= 17,000/0.85
= 20,000 francs
When the transaction was paid for however, on October 10, the Franc had gained on the dollar by;
= 0.9 - 0.85
= $0.05
This means that the dollar got weaker by $0.05 so the company made a loss of
= 20,000 francs * 0.05
= 1,000 francs
This will be recorded as;
DR Foreign Currency Transaction loss 1,000
CR Accounts Payable (SFr) $1,000
When using the cost of production report to analyze the change in direct materials cost per equivalent unit compared to conversion cost per equivalent unit, an investigation may reveal that direct materials costs:_____.
a. will never decrease due to the way the cost is calculated.
b. will never increase due to the way the cost is calculated.
c. may increase or decrease between periods, depending on the fluctuation of the cost of the direct materials.
d. will only increase if conversion costs increase as well.
Answer:
The correct answer is the option C: May increase or decrease between periods, depending on the fluctuation of the cost of the direct materials.
Explanation:
To begin with, in the field of business a manager or an account would perfectly know that when using the cost of production report with the purpose to analyze the change in direct materials costs per equivalent unit compared to conversion cost per unit the investigation will reveal that the direct material costs may increase or decrease between periods, depending on the fluctuation of the cost of those materials due to the fact that the fluctuation mentioned will arise if the company starts using more direct material in the production so that means that the volumen will increase as well as the costs of it
If Treasury bills are currently paying 6.5 percent and the inflation rate is 1.3 percent, what is the approximate and the exact real rate of interest
Answer:
the approximate real interest rate = nominal rate - inflation rate = 6.5% - 1.3% = 5.2%
the exact real interest rate is calculated using the following formula:
(1 + nominal interest rate) = (1 + real interest rate) (1 + expected rate of inflation)
(1 + 0.065) = (1 + real interest rate) x (1 + 0.013)
1 + real interest rate = (1 + 0.065) / (1 + 0.013) = 1.065 / 1.013 = 1.05133
real interest rate = 1.05133 - 1 = 0.05133 = 5.13%
Because you can adapt to your audience while you are speaking, don't worry about analyzing the audience for an oral presentation.
A. True
B. False
Answer:
B. False.
Explanation:
This statement is false, due to the fact that a good oral presentation must be prepared before the presentation in accordance with all the procedures to be covered in the presentation. Therefore, the ideal is to know your audience before the presentation, so that there is a preparation aligned with their values and behaviors, in order to retain the attention and interaction of the participants, which makes the presentation more interesting and effective.
Scripting the presentation also avoids possible unforeseen events, in addition to being ideal to also be open to interactions, to provide important and impactful information, to prepare supporting material such as slides, and to always practice before the presentation, to be prepared and interacted on the subject addressed.
yle Co. has $1.1 million of debt, $3 million of preferred stock, and $1.2 million of common equity. What would be its weight on common equity
Answer:
0.22
Explanation:
Calculation for the weight on common equity
Using this formula
Weight of Common equity = Common Equity/(Debt + Preferred Equity+Common Equity)
Where,
Common Equity=1.2
Debt =1.1
Preferred Equity=3
Let plug in the formula
Weight of common equity = 1.2/(1.1+ 3+ 1.2)
Weight of common equity=1.2/5.3
Weight of Common Equity=0.22
Therefore the weight on common equity will be 0.22
A 30 year $1,000 par 4 3/4% Treasury Bond is quoted at 95-11 - 95-15. The note pays interest on Jan 1st and Jul 1st. A customer buys 1 bond at the ask price. What is the current yield, disregarding commissions
Answer:
4.98%
Explanation:
Calculation for the current yield
First step
Since the the bond was purchased at 95 +15/32nds this means that we have to find the bond percentage.
Calculated as
Bond Percentage = 95 + 15/32nds
Bond percentage =95.46875%
Second step is to multiply the bond percentage by $1,000
95.46875% *$1,000
= $954.6875
The last step is to find the current yield
Current yield=$47.50 /$954.6875
Current yield = 4.98%
Therefore the current yield will be 4.98%
The manufacturer Mike and Ike, the fruit-flavored chewy candies, has changed its packaging and developed contests all geared to 12- to 17-year-olds. What type of market segmentation identifies its market
Answer:
Demographic
Explanation:
A market is segmented so as to narrow down a large market into a narrow base, or a target market. This helps the organization to be better focused on providing its services to these target groups of people. A market can be segmented on the basis of demography, psychography, behavior, and geography. Demography deals more with statistical data of the population being studied and would typically include; age, gender, race, income levels, etc.
So, when the manufacturer Mike and Ike changes its packaging and developed contests all geared to 12-17-years-old, he has segmented the market according to demography and age.
Answer:
im sorry
Explanation:
Assume Strands, a local hair salon, provides cuts, perms, and hairstyling services. Annual fixed costs are $150,000, and variable costs are 40 percent of sales revenue. Last year's revenues totaled $300,000.
(a) Determine its break-even point in sales dollar
(b) Determine last year's margin of safety in sales dollars.
(c) Determine the sales volume required for an annual profit of $80,000.
Round your answer to the nearest dollar.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Annual fixed costs are $150,000, and variable costs are 40 percent of sales revenue. Last year's revenues totaled $300,000.
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 150,000 / [(300,000*0.6)/300,000]
Break-even point (dollars)= $250,000
Now, we can determine the margin of safety:
Margin of safety= (current sales level - break-even point)
Margin of safety= 300,000 - 250,000= $50,000
Finally, the sales dollar required to reach $80,000 profit:
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= (150,000 + 80,000) / 0.6
Break-even point (dollars)= $383,333.33
Marigold Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,600, direct labor $12,360, and manufacturing overhead $16,480. As of January 1, Job 49 had been completed at a cost of $92,700 and was part of finished goods inventory. There was a $15,450 balance in the Raw Materials Inventory account.
During the month of January, Marigold Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $125,660 and $162,740, respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $92,700 on account.
2. Incurred factory labor costs of $72,100. Of this amount $16,480 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $17,510; indirect labor $20,600; depreciation expense on equipment $12,360; and various other manufacturing overhead costs on account $16,480.
4. Assigned direct materials and direct labor to jobs as follows.
Job No. Direct Materials Direct Labor
50 $10,300 $5,150
51 40,170 25,750
52 30,900 20,600
(a) Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $840,000, direct labor costs of $700,000, and direct labor hours of 20.000 for the year.
(b) Open job cost sheets for Jobs 50. 51. and 52. Enter the January 1 balances on the job cost sheet for Job 50.
(c) Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January.
(d) Prepare the journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). Post all costs to the job cost sheets as necessary.
(e) Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month.
(f) Prepare the journal entry (or entries) to record the sale of any job(s) during the month.
(g) What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of?
(h) What is the amount of over- or underapplied overhead?
Answer:
Marigold Company
a) Calculation of the predetermined overhead rate for 2020, assuming (Lott) Marigold Company estimates total manufacturing overhead costs of $840,000, direct labor costs of $700,000, and direct labor hours of 20,000 for the year.
Predetermined overhead rate, based on the direct labor costs:
= Total manufacturing overhead costs/direct labor costs
= $840,000/$700,000 = $1.20 per direct labor cost
Predetermined overhead rate, based on the direct labor hours:
= Total manufacturing overhead costs/direct labor hours
= $840,000/20,000 = $4.20 per direct labor hour
b) Job Cost Sheets
Job 50 Job 51 Job 52
Beginning inventory $49,440
Direct materials 10,300 $40,170 $30,900
Direct labor 5,150 25,750 20,600
Manufacturing overhead 6,180 30,900 24,720
Finished goods inventory $71,070 $96,820 $76,220
c) Journal Entries:
i) Purchase of raw materials:
Debit Inventory $92,700
Credit Accounts Payable $92,700
To record the purchase of raw materials.
ii) Factory labor costs incurred:
Debit Factory labor costs $72,100
Credit Employer Payroll Taxes Expense $16,480
Credit Factory Salary and Wages $55,620
To record factory labor costs.
iii) Manufacturing overhead costs incurred:
Debit Manufacturing overhead $66,950
Credit Inventory for indirect materials $17,510
Credit Salaries & Wages $20,600
Credit Equipment Depreciation $12,360
Credit Accounts Payable $16,480
To record manufacturing overhead
d) Journal Entries:
Debit Job 50 $21,630
Credit Direct materials $10,300
Credit Direct labor $5,150
Credit Manufacturing overhead $6,180
To allocate manufacturing costs to job 50.
Debit Job 51 $96,820
Credit Direct materials $40,170
Credit Direct labor $25,750
Credit Manufacturing overhead $30,900
To allocate manufacturing costs to job 51.
Debit Job 52 $76,220
Credit Direct materials $30,900
Credit Direct labor $20,600
Credit Manufacturing overhead $24,720
To allocate manufacturing costs to job 52.
e) Journal Entries:
Debit Finished Goods Inventory $167,890
Credit Job 50 $71,070
Credit Job 51 $96,820
To record finished goods from Jobs 50 and 51
f) Journal Entries for Sale of Jobs:
Debit Accounts Receivable $288,400
Credit Sales Revenue $288,400
To record the sale of Jobs 49 and 50 on account.
Debit Cost of goods sold $163,770
Credit Finished goods inventory $163,770
To record the cost of Jobs 49 and 50 sold.
g) Balance in Finished Goods Inventory account:
Beginning balance: Job 49 $92,700
Debit Job 50 $71,070
Debit Job 51 $96,820
less: cost of jobs sold $163,770
Ending balance: Job 51 $96,820
The balance consists of Job 51 which had been completed but not sold.
h) Amount of over-or underapplied overhead:
Actual total overhead $66,950
Total overhead applied 61,800
Underapplied overhead $5,150
Explanation:
a) Data:
1. Job 50 in process:
Beginning Job 50 in process:
Direct materials $20,600
Direct labor $12,360
Manufacturing overhead $16,480
Total $49,440
2. Jan. 1 Job 49 completed at $92,700 (part of finished goods inventory)
3. Beginning raw materials inventory = $15,450
4. Production, Completion, and Sales of Jobs:
Production started on Jobs 51 and 52
Completed Jobs 50 and 51
Sold on account:
Job 49 $125,660
Job 50 $162,740
5. Additional events:
Purchase of raw materials on account = $92,700
Factory labor costs of $72,100 ($16,480 of it, employer payroll taxes)
Manufacturing overhead costs:
Indirect materials $17,510
Indirect labor $20,600
Equipment Depreciation $12,360
Other manufacturing overheads $16,480 (on account)
Total manufacturing overhead $66,950
6. Allocation of direct materials and labor to jobs:
Job No. Direct Materials Direct Labor
50 $10,300 $5,150
51 40,170 25,750
52 30,900 20,600
$81,370 $51,500
6. Job costing system accumulates and allocates Marigold Company's direct material, labor, manufacturing overhead costs to jobs based on their usage of the various resources in the production of goods and services.
Dalrymple Bay Coal Terminal, a coal-handling facility and export terminal in Queensland, Australia, has issued triple-A rated bonds for $680 million in Australian dollars. The bonds will be used to refinance existing bank debt caused by the acquisition of eases from the Queensland government in 2002. The Commonwealth Bank of Australia acted as investment bankers to the transaction. This means the Commonwealth Bank of Australia:
Answer: B. Bought the bonds from Dalrymple and sold them to the public
Explanation:
Investment Banks help companies issuing new securities in diverse ways to ensure that they raise the capital they are looking for. Some of the ways they help include; underwriting securities and market research. The main way they help companies issuing new securities however, is underwriting.
With Underwriting, the Investment Bank usually buys all the securities on offer from the Issuing company, then sells them at higher price to make a profit. This helps the issuing company because they get to sell all or most of their securities so it reduces uncertainty.
The Commonwealth Bank of Australia therefore bought the bonds from Dalrymple and sold them to the public.
Activity-Based Costing: Factory Overhead Costs
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,039,600, divided into four activity pools: fabrication,, $448,000; assembly, $180,000; setup, $222,600; and inspection, $189,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows:
Fabrication Assembly Setup Inspection
Speedboat 7,000 dlh 22,500 dlh 50 setups 88 inspections
Bass boat 21,000 7,500 370 612
28,000 dlh 30,000 dlh 420 setups 700 inspections
Each product is budgeted for 5,000 units of production for the year.
a. Determine the activity rates for each activity.
Fabrication $ per direct labor hour
Assembly $ per direct labor hour
Setup $ per setup
Inspection $ per inspection
b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.
Speedboat $ per unit
Bass boat $ per unit
Answer:
Instructions are below.
Explanation:
Giving the following information:
Estimated factory overhead:
fabrication, $448,000
assembly, $180,000
setup, $222,600
inspection, $189,000
Fabrication Assembly Setup Inspection
Speedboat 7,000 dlh 22,500 dlh 50 setups 88 inspections
Bass boat 21,000 7,500 370 612
28,000 dlh 30,000 dlh 420 setups 700 inspections
Each product is budgeted for 5,000 units of production for the year.
First, we need to calculate the predetermined overhead rate for each activity using the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
fabrication= 448,000/28,000= $16 per direct labor hour
assembly= 180,000/30,000= $6 per direct labor hour
setup= 222,600/420= $530 per setup
inspection= 189,000/700= $270 per inspection
Now, we can allocate overhead to each product line:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Speed boat:
Allocated MOH= 7,000*16 + 22,500*6 + 50*530 + 88*270= $297,260
Bass boat:
Allocated MOH= 21,000*16 + 7,500*6 + 370*530 + 612*270= $742,340
Finally, the unitary overhead cost:
Speed boat= 297,260/5,000= $59.45
Bass boat= 742,340/5,000= $148.47
Proposal preparation is completed by Select one: a. a large team for a simple project. b. a single person when proposing a multimillion-dollar project. c. a proposal manager regardless of the project size. d. one or more people depending upon the requirements of the proposal.
Answer:
d. one or more people depending upon the requirements of the proposal.
Explanation:
A proposal can be defined as a plan or suggestion which are formally written to present an idea to an individual or organization for consideration.
Proposal preparation is completed by one or more people depending upon the requirements of the proposal.
In order to prepare a good proposal, it is very important to make it as formal as possible. The content of the proposal is strictly based on what the initiators wants to do or achieve, as well as how they wish to achieve.
Hence, a proposal is only prepared with regard to the requirements of the proposal and the number of people involved. Proposals are usually used by project managers or contractors seeking for a contract.
Which of the following are functions of the Federal Reserve? Check all that apply. Maintaining federal government checking accounts and gold Maintaining and circulating currency Ensuring all banks make a profit Making a profit for the federal government Being the lender of last resort for banks
Answer:
1. Maintaining federal government checking accounts and gold.
2. Maintaining and circulating currency.
3. Being the lender of last resort for banks
Explanation:
The Federal Reserve System (the 'Fed) was created by the Federal Reserve Act, passed by Congress in 1913. The Fed began operations in 1914. It was founded by President Woodrow Wilson under the Federal Reserve Act, which was aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.
The following are functions of the Federal Reserve;
1. Maintaining federal government checking accounts and gold.
2. Maintaining and circulating currency.
3. Being the lender of last resort for banks.
Additionally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America and seven (7) board of governors.
In the United States, the standard methodology for consumers with respect to privacy is to _______________, whereas in the EU it is to ______________.
Answer:
In the United States, the standard methodology for consumers with respect to privacy is opt-out with respect to the United States and her Privacy Law, whereas in the EU it is opt-in.
Explanation:
Privacy laws are laws that provide protection and regulation against storing, using data that might be considered private to an individual or any organisation. such laws act as a guard against any usage of information by governments, public or private organisations, or even other individuals in any part of the world without the owner of such data giving their consent.
Privacy laws, rules, and policies are different from one country to another which all depends on their legal framework and cultural sensitivities in such a nation.
In the United States, the standard methodology for consumers with respect to privacy is opt-out with respect to the United States and her Privacy Law, whereas in the EU it is opt-in.
Opting-out laws cover a spectrum that consists of methods used by an individual to avoid receiving unsolicited service information. When receiving unsolicited service information as a result of data collection a consumer might seek an out way to stop it and to opt-out require affirmative steps to prevent unsolicited service and products. Under opt-out a user can be signed up much more easily.
Opt-In is when an individual chooses to join or participate in something and acknowledging interest in a product or service. Opt-in is used under European data protection rules which grant individuals more control of their data when the person agrees to receive the specified services.
T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000 units, selling them for $2.00 each. At this level of output, the average total cost is 2.50 and the average variable cost is $2.20. Based on these data, the firm should
Answer:
shutdown in the short run
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
A firm should shut down in the short run if price is less than average variable cost.
for T-Shirt Enterprises, price is $2 which is less than average variable cost
Land Services, Inc. owns 35% of voting stock of World Investments, Inc. During the year 2018, World Investments, Inc. earned profits of $300,000. Under the equity method, which of the following journal entries will Land Services record?
A) Long-term Investments—Grey Investments Inc.: 250,000
Cash: 250,000
B) Cash: 75,000
Dividend Revenue: 75,000
C) Cash: 75,000
Long-term Investments—Grey Investments Inc.: 75,000
D) Long-term Investments—Grey Investments Inc.: 75,000
Revenue from Investments: 75,000
The correct question is:
Glitter Services Inc. owns 30% of voting stock of Grey Investments Inc. During the year 2015, Grey Investments Inc. earned profits of $250,000. Under the equity method, which of the following journal entries will Glitter Services record?
Answer:
D) Debit Long-term Investments—Grey Investments Inc.: 75,000
Credit Revenue from Investments: 75,000
Explanation:
Equity method is used in accounting to treat a companie's investment in associate companies. Usually equity accounting is used when a company owns 20 to 50% of shares in an associate company.
In this case Glitter Services, Inc. owns 30% of voting stock of World Investments, Inc.
Grey Investments, Inc. earned profits of $250,000.
So the value of investment is 0.3 * 250,000 = $75,000
So this amount is Debited from Long Term Investment account and credited to Revenue from Investments
Smathers Corp. stock has a beta of .89. The market risk premium is 7.20 percent and the risk-free rate is 2.93 percent annually. What is the company's cost of equity
Answer: 9.31%
Explanation:
Given: Smathers Corp. stock has a beta of 0.89.
⇒ Beta = 0.89
Risk-free rate = 2.93 percent
Market risk premium = 7.20 percent
Formula: Cost of Equity = [ Risk free rate + (Beta) × ( Market risk premium) ]
Substitute all values, we get
Cost of Equity = [ 2.9 + (0.89) × ( 7.20) ]%
= [2.9+6.41]%
= 9.31%
Hence, the company's cost of equity is 9.31%.
Wren Pork Company uses the relative market value method/Value basis method of allocating joint costs in its production of pork products. Relevant information for the current period follows:
Product Pounds Price/lb.
Loin chops 3,080 $5.40
Ground 10,200 2.20
Ribs 4,120 5.05
Bacon 6,160 3.70
The total joint cost for the current period was $45,400. How much of this cost should Wren Pork allocate to Loin chops?
A. $0.
B. $6,443.
C. $9,134.
D. $11,350.
E. $45,400.
Answer:
C. $9,134
Explanation:
Product Pounds Price/Ib Total Value
Loin chops 3,080 $5.40 $16,632
Ground 10,200 $2.20 $22,440
Ribs 4,120 $5.05 $20,806
Bacon 6,160 $3.70 $22,792
$82,670
The Total Joint cost = $45,400
Hence Joint cost to Lopin chops = $45,400 * $16,632 / $82,670
Joint cost to Lopin chops = $9,134
During 2025, Saul Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts: 2023 $60,000 understated 2024 $75,000 understated Prior to any adjustments for these errors and ignoring income taxes, 2024 Net Income would be:
Answer:
$15,000 overstated
Explanation:
Item Amount
Inventories over stated in 2024 $75,000
Less: Under stated in 2023 ($60,000)
Inventories over stated in 2025 $15,000
Overstated inventory means, cost of goods will be understated in income statement. so net income will show as overstated. it means retained earnings also overstated by $15,000
Because orders in organizational buying are typically much larger than in consumer buying, buyers must often __________ when the order is above a specific amount, such as $5,000.
Answer:
get competitive bids from at least three prospective suppliers
Explanation:
In these specific situations, organizational buyers must often get competitive bids from at least three prospective suppliers. This is because due to the fact that the purchasing amounts are very large there can also be large amounts of money saved by saving a couple of percentages on a purchase. Also since the seller can make large profits from a large order like this one, most suppliers place competitive bids in order to win the transaction.
The following are typical disclosures that would appear in the notes accompanying financial statements. For each of the items listed, indicate where the disclosure would likely appear—either in (A) the significant accounting policies note or (B) a separate note.
1. Inventory costing method A
2. Information on related party transactions _____
3. Composition of property, plant, and equipment _____
4. Depreciation method _____
5. Subsequent event information _____
6. Measurement basis for certain financial instruments _____
7. Important merger occurring after year-end _____
8. Composition of receivables _____
Answer:
The answer is:.
1. A
2. B
3. B
4. A
5. B
6. A
7. B
8. B
Explanation:
The significant accounting policy note is a section of the footnotes found in the financial statements. It states and explains the key policies the firm has adopted in preparing its financial statement.
Separate note is also found in the footnotes. It details the additional information about a firm's operations and financial position.
1. A
2. B
3. B
4. A
5. B
6. A
7. B
8. B
Blackwelder Factory produces two similar products-small lamps and desk lamps. The total plant overhead budget is $667,000 with 465,000 estimated direct labor hours. It is further estimated that small lamp production will require 299,000 direct labor hours and desk lamp production will need 166,000 direct labor hours. Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Blackwelder Factory allocate to desk lamp production if actual direct hours for the period is 249,000. a.$356,070 b.$800,936 c.$1,000,500 d.$310,930
Answer:
Allocated MOH= $356,070
Explanation:
Giving the following information:
Estimated overhead= $667,000
Estimated direct labor hours= 465,000
Actual direct labor hours for lamp desk= 249,000
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 667,000/465,000
Predetermined manufacturing overhead rate= $1.43 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 1.43*249,000
Allocated MOH= $356,070
The difference between Karson's behavior at the end of the 12 weeks versus the promise to cure Karson of ADHD can be described as the measure of the:________.
A. expectation interest.
B. reliance interest.
C. restitution interest.
D. All of these are correct.
Answer:
A. Expectation interest.
Explanation:
Expectation interest is explained as the party of interest being in a good position in the point or financial angles during a business dealing. Here he/she is said to have a good stance of a deal or a contract been contacted for. Sometimes, it is seen to be triggered by net profits and losses less any costs or losses, which are sometimes tool in weighing the reasonable measure of damages. Therefore, when no contracts are be agreed on, determination must be made as to whether or not one party benefited from contact with the other party.
Nicolas Enterprises sells a product for $67 per unit. The variable cost is $33 per unit, while fixed costs are $231,200. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $73 per unit.
Answer:
a)Break-even point = 6,800 units
b) Break-even point =5780 units
Explanation:
Break-even point is the level of activity that achieves no profit or loss. At this level profit is zero because the the total revenue is equal to total cost.
The break-even point is calculated as
Units to achieve target profit = (Total general fixed cost for the period)/ contribution per unit
Contribution per unit = Selling Price - Variable cost
Contribution per unit = 67 - 33 = 34
Fixed cost =231,200
So the units requited to achieve break-even point:
Break-even point = 231,200/34 = 6,800 units
Break-even point = 6,800 units
b) If the selling price wete increased to 73
The break-even point = 231,200/ (73- 33) = 5,780 units
Break-even point =5780 units
Vibrant Company had $970,000 of sales in each of three consecutive years 2016–2018, and it purchased merchandise costing $535,000 in each of those years. It also maintained a $270,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2016 that caused its year-end 2016 inventory to appear on its statements as $250,000 rather than the correct $270,000.
1. Determine the correct amount of the company’s gross profit in each of the years 2016–2018.
2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 2016−2018.
Answer:
Explanation:
From the give information; we are to:
1. Determine the correct amount of the company’s gross profit in each of the years 2016–2018.
The correct amount of the company's gross profit in each of the years 2016 - 2018 can be seen as computed in the table below.
VIbrant Company Income statement
2016 2017 2018
Sales 970,000 970,000 970,000
-
Cost of good
sold:
Beginning 270,000 270,000 270,000
Inventory
+
Purchase 535,000 535,000 535,000
The cost of good
available for sale 805000 805000 805000
is:
-
Ending Inventory 270,000 270,000 270,000
Cost of good sold 535,000 535,000 535,000
Gross Profit 435 000 435000 435000
N:B ;
Gross Profit = Sales - Cost of good sold
Gross Profit = 970000- 535000
Gross Profit = 435000
2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 2016−2018.
For 2016; the comparative income statement is computed as follows:
Debit Credit
Sales 970000
Less:(-)
Cost of good sold
Beginning Inventory 270000
Add Purchase 535000
Cost of goods available 805000
for sale
Less (-)
Ending Inventory 250000
Cost of good sold 555000
Gross profit 415000
For 2017; the comparative income statement is computed as follows:
Debit Credit
Sales 970000
Less:(-)
Cost of good sold
Beginning Inventory 250000
Add Purchase 535000
Cost of goods available 785000
for sale
Less (-)
Ending Inventory 270000
Cost of good sold 515000
Gross profit 455000
For 2018; the comparative income statement is computed as follows:
Debit Credit
Sales 970000
Less:(-)
Cost of good sold
Beginning Inventory 270000
Add Purchase 535000
Cost of goods available 805000
for sale
Less (-)
Ending Inventory 270000
Cost of good sold 535000
Gross profit 435000
Playtown Corporation purchased 75 percent of Sandbox Corporation common stock and 40 percent of its preferred stock on January 1, 20X6, for $270,000 and $80,000, respectively. At the time of purchase, the fair value of the common shares of Sandbox held by the noncontrolling interest was $90,000. Sandbox's balance sheet contained the following balances:
Preferred Stock ($10 par value) $200,000
Common Stock ($5 par value) 150,000
Retained Earnings 210,000
Total Stockholders' Equity $560,000
Required
Give the eliminating entries needed to prepare a consolidated balance sheet immediately after Clayton purchased the Topple shares.
Answer:
Elimination Journal.
Retained Earnings $210,000 (debit)
Common Stock $ 150,000 (debit)
Investment in Sandbox Corporation $270,000 (credit)
Non-Controlling Interest $90,000 (credit)
Explanation:
When dealing with consolidation of Financial Statements, the Equity and Retained Earning in the Subsidiary has to be eliminated from the records whilst the Investment in Subsidiary and the Non-Controlling Interest in Subsidiary are recognized.
Elimination of the common items in consolidation is done by the use of Pro-forma Journals.
Goodwill or Gain on Bargain Purchase are also recognized on the date of acquisition of subsidiary.
Goodwill is the excess of Purchase Price and Non-Controlling interest over the Net Assets Acquired.While Gain on Bargain Purchase is the excess of Net Assets Acquired over Purchase Price and Non-Controlling interest.
Elimination Journal.
Retained Earnings $210,000 (debit)
Common Stock $ 150,000 (debit)
Investment in Sandbox Corporation $270,000 (credit)
Non-Controlling Interest $90,000 (credit)
The following events occur for Morris Engineering during 2018 and 2019, its first two years of operations.
February 2, 2018 Provide services to customers on account for $32,600.
July 23, 2018 Receive $22,500 from customers on account.
December 31, 2018 Estimate that 25% of uncollected accounts will not be received.
April 12, 2019 Provide services to customers on account for $45,600.
June 28, 2019 Receive $6,000 from customers for services provided in 2018.
September 13, 2019 Write off the remaining amounts owed from services provided in 2018.
October 5, 2019 Receive $40,500 from customers for services provided in 2019.
December 31, 2019 Estimate that 25% of uncollected accounts will not be received.
1. Record transactions for each date. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts.
3. Calculate the net realizable value of accounts receivable at the end of 2018 and 2019.
Answer:
1)
February 2, 2018 Provide services to customers on account for $32,600.
Dr Accounts receivable 32,600
Cr Service revenue 32,600
July 23, 2018 Receive $22,500 from customers on account.
Dr Cash 22,500
Cr Accounts receivable 22,500
December 31, 2018 Estimate that 25% of uncollected accounts will not be received.
Dr Dad debt expense 2,525
Cr Allowance for doubtful accounts 2,525
April 12, 2019 Provide services to customers on account for $45,600.
Dr Accounts receivable 45,600
Cr Service revenue 45,600
June 28, 2019 Receive $6,000 from customers for services provided in 2018.
Dr Cash 6,000
Cr Accounts receivable 6,000
September 13, 2019 Write off the remaining amounts owed from services provided in 2018.
Dr Allowance for doubtful accounts 4,100
Cr Accounts receivable 4,100
October 5, 2019 Receive $40,500 from customers for services provided in 2019.
Dr Cash 40,500
Cr Accounts receivable 40,500
December 31, 2019 Estimate that 25% of uncollected accounts will not be received.
Dr Dad debt expense 2,850
Cr Allowance for doubtful accounts 2,850
Allowance for doubtful accounts = $1,575 (to cancel debit balance) + [($45,600 - $40,500) x 25%] = $1,575 + $1,275 = $2,850
2)
Cash Accounts receivable
Debit Credit Debit Credit
22,500 32,600
6,000 22,500
40,500 45,600
69,000 6,000
4,100
40,500
5,100
Allowance for doubtful accounts
Debit Credit
2,525
4,100
2,850
1,275
3) net realizable value of accounts receivable = $5,100 - $1,275 = $3,825
________ refers to the idea that policy-makers have formulated and implemented policy that addresses problems in an optimal or efficient manner.
Answer:
Rationality.
Explanation:
Rationality refers to the idea that policy-makers have formulated and implemented policy that addresses problems in an optimal or efficient manner.
This ultimately implies that, policy-makers act rationally in order to achieve best goals, objectives and interests of the people effectively and efficiently.
For instance, in a bid to mitigate or eliminate global warming, policy-makers developed and enacted the pollution prevention act. This would limit or regulate the amount of pollutants that is being emitted by an organization in a particular geographical location as well as improving environmental sanitation and reducing environmental degradation.