Answer:
Budget balance, National savings, Budget deficit
Explanation:
The difference between the amount the government collects and how much it spends is known as the Budget balance.
When the preceding term is combined with all of the privately held savings from across the country, it is known as the National savings.
If the government spends more money than it takes in through taxes, it will experience a Budget deficit.
Q#1. How would you describe the word “CAREER” Explain in 5-7 sentences.
PLZ HELP IĹL GIVE BRAINLIEST !
Answer:
A carreer si a job youĺl havefor the res of you time on earth, tbh it seems boring dont do it .
Explanation:
At the end of the current year, Accounts Receivable has a balance of $2,150,000; Allowance for Doubtful Accounts has a debit balance of $10,500; and sales for the year total $51,850,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $110,000.
a. Determine the amount of the adjusting entry for uncollectible accounts.
b. Determine the adjusted balances of (i) Accounts Receivable (ii) Allowance for Doubtful Accounts (iii) Bad Debt Expense.
c. Determine the net realizable value of accounts receivable.
Answer:
a. Allowance for doubtful accounts = Unadjusted balance + Adjusted balance
= $10,500 + $110,000
= $120,500
b. i)The adjusted balance of accounts receivable shall be $2,150,000(adjusted debit balance)
ii) Adjusted balance = Bad debt expense - Unadjusted balance
= $120,500 - $10,500
= $110,000 (Adjusted credit balance)
iii) Adjusted bad debt expense = Unadjusted balance of allowance for doubtful accounts + Adjusted balance allowance for doubtful accounts
= $10,500 + $110,000
= $120,500 (Adjusted debit balance)
c. Net realizable value = Gross accounts receivable - Allowance for doubtful accounts
= $2,150,000 - $110,000
= $2,040,000
WESTON ENTERPRISES 2014 and 2015 Partial Balance Sheets Assets Liabilities and Owners’ Equity 2014 2015 2014 2015 Current assets $ 950 $ 1,016 Current liabilities $ 385 $ 416 Net fixed assets 3,967 4,608 Long-term debt 2,035 2,207 WESTON ENTERPRISES 2015 Income Statement Sales $ 12,530 Costs 5,990 Depreciation 1,080 Interest paid 200 a. What is owners' equity for 2014 and 2015?
Answer:
Missing word "b. What was the change in net working capital for 2014"
a. 2013 2014
Total assets 950+3967 = $4917 1016+4608 = $5624
Total liability 385+2035 = $2420 416+2207 = $2623
Equity $2497 $3001
b.Working capital = Current asset - Current liability
2014 Working capital = 1016 - 416
2014 Working capital = $600
2013 Working capital = 950-385
2013 Working capital = $565
Change in NWC = $600 - $565
Change in NWC = $35
Puppy Co. reports the contribution margin income statement for 2020.
Puppy CO. Contribution Income Statement For Year Ended December 31, 2020
Sales (9,600 units at $225 each) $2,160,000
Variable costs (9,600 units at $180 each) 1, 728,000
Contribution margin 432,000
Fixed costs 324,000
Net operating income $108,000
Required:
a. Compute the company's degree of operating leverage for 2019.
b. If sales decrease by 5% in 2020, what will be the company's pretax income?
c. Assume sales for 2020 decrease by 5%. Prepare a contribution margin income statement for 2020.
Answer: See explanation
Explanation:
a. Compute the company's degree of operating leverage for 2019.
This will be:
= Contribution / Pre tax income
= 432000 / 108000
= 4
b. If sales decrease by 5% in 2020, what will be the company's pretax income?
We should note that the degree of operating leverage is:
= % change in pre tax income / % change in sales
4 = % change in ore tax Income / 5%
% change in ore tax income = 5% × 4 = 20%
Company's pre-tax income will be:
= 108000 - (20% × 108000)
= 108000 - (0.2 × 108000)
= 108000 - 21600
= $86400
c. Assume sales for 2020 decrease by 5%. Prepare a contribution margin income statement for 2020.
Sales = 2160000 × 95% = 2160000 × 0.95 = 2052000
Less: Variable cost = 1728000 × 95% = 1728000 × 0.95 = 1641600
Contribution margin = 410,000
Less: Fixed cost = 324000
Pre tax net income= 86400
If you buy a ticket to an outdoor concert but come down with a bad cold on the night of the show, the principle of ____ suggests you should not consider the money you already spent on the ticket when deciding whether or not to go.
Answer:
sunk cost
Explanation:
Sunk cost is cost that has already been incurred and it cannot be recovered. When making future decisions, sunk cost should not be considered.
The money i paid for the ticket is the sunk cost. I should not consider this cost when making the decision of whether to for the concert or not to
(b) The citizens of this country are in general very clever people, but they are not good at multiplying by 2. This made shopping for potatoes excruciatingly difficult for many citizens. Therefore it was decided to introduce a new unit of currency, such that potatoes would be the numeraire. A sack of potatoes costs one unit of the new currency while the same relative prices apply as in the past. In terms of the new currency, what is the price of meatballs
Answer: 2 sacks of potatoes
Explanation:
In the past, meatballs cost 4 crowns per crock which was twice the price of Potatoes at 2 crowns per sack.
Now that potatoes were are the new currency but relative prices apply, the same notion above applies too.
If meatballs are twice the price of potatoes and potatoes are now the currency, then meatballs which are still twice the price of potatoes must be:
= 2 * 1 sack of potatoes
= 2 sacks of potatoes
Ethical Concerns in Human Resources
Ethics refers to fundamental principles of right and wrong; ethical behavior is behavior that is consistent with those principles. HRM decisions should be ethical, but the evidence suggests that is not always the case. Many ethical issues in the workplace involve HRM. In the context of ethical human resource management, HR managers must view employees as having basic rights. This activity is important because it will give you an opportunity to examine the four principles for ethical behavior and the basic rights employees should expect in the work environment.
HR managers must view employees as having basic rights, for such a view reflects ethical principles embodied in the U.S. Constitution and Bill of Rights. Organizations often face situations in which the rights of employees are affected. Ethical, successful companies act according to four principles: emphasizing mutual benefits, employees assuming responsibility for the actions of the company, companies having a sense of purpose or vision that employees value, and emphasizing fairness. The goal of this activity is to discuss ethical issues in human resource management.
Read each work situation, then correctly match it to the ethical concern it represents.
1. Right of freedom of speech
2. Right of privacy
3. Right of freedom of conscience
4. Right to due process
5. Right of free consent
Match each of the options above to the items below.
A. Mike, a new employee, was distressed to learn that he was expected to help with the illegal dumping of medical waste.
B. One of the important messages of HIPPA (the Health Insurance Portability and Accountability Act) is the need to keep employee health records confidential.
C. Sharon complains because the employer hired her for the day shift, but now she is expected to work the midnight shift.
D. Many companies establish Employee Assistance Programs (EAPs), which offer employees many important benefits, including a complaint process so that employees will feel free to share their concerns.
E. Ed felt he was being demoted because of his age, not of his performance, so he asked for a meeting with the director of HR.
Answer:
Ethical Concerns in Human Resources
Matching Ethical Issues with Ethical Concerns:
A. Mike, a new employee, was distressed to learn that he was expected to help with the illegal dumping of medical waste.
3. Right of freedom of conscience
B. One of the important messages of HIPPA (the Health Insurance Portability and Accountability Act) is the need to keep employee health records confidential.
2. Right of privacy
C. Sharon complains because the employer hired her for the day shift, but now she is expected to work the midnight shift.
5. Right of free consent
D. Many companies establish Employee Assistance Programs (EAPs), which offer employees many important benefits, including a complaint process so that employees will feel free to share their concerns.
1. Right of freedom of speech
E. Ed felt he was being demoted because of his age, not of his performance, so he asked for a meeting with the director of HR.
4. Right to due process
Explanation:
Data:
Ethical Concerns:
1. Right of freedom of speech
2. Right of privacy
3. Right of freedom of conscience
4. Right to due process
5. Right of free consent
b) Ethical principles:
Mutual benefits: This principle refers to equity in sharing benefits and costs.
Assumption of responsibility: This principle demands accountability with responsibility.
Having a sense of purpose or vision: This principle refers to the fulfilment of purpose that is considered reasonable by others.
Fairness: The principle requires the absence of favoritism and discrimination.
Alpha Wood Interiors announced that it is going out of business. As of today, no more regular dividends will be paid. The firm will, however, pay two liquidating dividends. The first will be paid one year from now in the amount of $17 a share. The second and final payment will be paid two years from now at an estimated $32 a share. What is the value of this stock today at a discount rate of 6 percent
Answer:
$44.52
Explanation:
The value of the stock today can be determined by finding the present value of the liquidating dividends
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = 17
Cash flow in year 1 = 32
I = 6%
PV = $44.52
To find the PV 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
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:
Fixed Component Variable Component Actual Total
per Month per Job for February
Revenue $276 $35,890
Technician wages $8,600 $8,450
Mobile lab operating expenses $4,600 $34 $9,200
Office expenses $2,800 $3 $3,070
Advertising expenses $1,580 $1,650
Insurance $2,890 $2,890
Miscellaneous expenses $930 $1 $375
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $34 per job, and the actual mobile lab operating expenses for February were $9,200. The company expected to work 140 jobs in February, but actually worked 150 jobs.
Required:
Complete the flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February.
Answer:
AirQual Test Corporation
Flexible Budget:
Fixed Variable Actual Flexible Variance
Revenue $276 $35,890 $41,400 ($5,510) U
Technician wages $8,600 $8,450 8,600 150 F
Mobile lab operating exp. $4,600 $34 $9,200 9,700 500 F
Office expenses $2,800 $3 $3,070 3,250 180 F
Advertising expenses $1,580 $1,650 1,580 (70) U
Insurance $2,890 $2,890 2,890 0 N/A
Miscellaneous expenses $930 $1 $375 1,080 705 F
Total $10,255 $14,300 $4,045 U
Explanation:
a) Data and Calculations:
Fixed Variable Actual
Revenue $276 $35,890
Technician wages $8,600 $8,450
Mobile lab operating exp. $4,600 $34 $9,200
Office expenses $2,800 $3 $3,070
Advertising expenses $1,580 $1,650
Insurance $2,890 $2,890
Miscellaneous expenses $930 $1 $375
Expected number of jobs to be worked = 140
Actual number of jobs worked = 150
Flexible costs:
Revenue = $276 * 150 = $41,400
Mobile lab operating expense:
Fixed element = $4,600
Variable element = $34 * 150 = $5,100
Total flexible budget = $9,700
Office Expenses:
Fixed element = $2,800
Variable element = $3 * 150 = $450
Total flexible budget = $3,250
Miscellaneous expenses:
Fixed element = $930
Variable element = $1 * 150 = $150
Total flexible budget = $1,080
Spending Variances:
Technician wages $8,600 $8,450 8,600 150 F
Advertising expenses $1,580 $1,650 1,580 (70) U
Insurance $2,890 $2,890 2,890 0 N/A
Spending variances = $80 F
Activity Variances:
Mobile lab operating exp. $4,600 $34 $9,200 9,700 500 F
Office expenses $2,800 $3 $3,070 3,250 180 F
Miscellaneous expenses $930 $1 $375 1,080 705 F
Total activity variances = $1,385 F
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed below is cost driver information used in the product-costing system:
Overhead Cost Pool Budgeted Overhead Cost Driver Estimated Cost Driver Level
Machine setups $120,000 # of setups 120 setups
Materials handling 104,400 # of barrels 8,700 barrels
Quality control 264,000 # of inspections 1,100 inspections
Other overhead cost 144,000 # of machine hours 12,000 machine hours
Total overhead $632,400
A current product order has the following requirements:
Machine setups 8 setups
Materials handling 606 barrels
Quality inspections 80 inspections
Machine hours 830 machine hours
Direct labor hour 336 hours
Using ABC, how much other overhead is assigned to the order?
a. $9,960.
b. $8,000.
c. $11,108.
d. $45,992.
e. $19,200.
Answer:
See below
Explanation:
Given the above information
Payroll = $432,000 ÷ 4,800 = $90 per hour
Setup = $120,000 / 120 = $1,000 per setup
Material handling barrel = $104,400 / 8,700 = $11.95 per barrel
Quality control inspection = $264,000 / 1,100 = $240 per inspection
Overhead = $144,000 / 12,000 = $12 per machine hour
Details of the current product requirement
8 setup = 8 × $1,000 = $8,000
606 barrels = 606 × $11.95 = $7,242
80 inspections = 80 × $240 = $19,200
830 machine hours = 830 × $12 = $9,960
336 labor hours = 336 × $90 = $30,240
Total overhead assigned to order = $74,642
Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. $6,000 cash deposit in checking account. $26,000 bond investment due in 20 years. $6,500 U.S. Treasury bill due in 1 month. $350, 3-year loan to an employee. $1,600 of currency and coins. $650 of accounts receivable.
Answer:
Total Cash and Cash Equivalents = $14,100
Explanation:
Particulars Amount Reason
Checking Account $6,000 Readily realizable
Bond Investment Nil The bond is due in 20 yrs, hence not readily realizable
U.S. Treasury Bill $6,500 Due in 1 month
Loan to an Employee Nil The loan is for a period of more than 3 months
Currency and Coins $1,600 They are cash itself
Accounts Receivable Nil Accounts receivable is not considered as readily realizable
Total Cash and Cash Equivalents = $14,100
The first step in the decision-making process is to a. define your wants and needs b. identify your choices c. make a decision d. gather information Please select the best answer from the choices provided СА OB C Save and Exit Mark this and return
the first step is identify your choices
Al is a medical doctor who conducts his practice as a sole proprietor. During 2017, he received cash of $280,000 for medical services. Of the amount collected, $40,000 was for services provided in 2016. At the end of 2017, Al had accounts receivable of $60,000, all for services rendered in 2017. In addition, at the end of the year, Al received $12,000 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2018. Compute Al’s gross income for 2017:
a. Using the cash basis of accounting.
b. Using the accrual basis of accounting.
c. Advise Al on which method of accounting he should use.
Answer:
a. Using the cash basis of accounting:
Cash received from customer $280,000
Cash received for future service $12,000
Total gross income $292,000
b. Using the accrual basis of accounting:
Service revenue = ($280,000 - $40,000 + 60,000) = $300,000
Gross income $300,000
c) AI should use cash accural basis of accounting so that he will not have to pay income taxes on uncollected accounts receivable.
Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $90.
Limit Buy Orders Limit Sell Orders
Price Shares Price Shares
$89.75 700 $89.80 125
89.70 1,000 89.85 125
89.65 700 89.90 350
89.60 200 89.95 125
88.65 800
Required:
a. If a market buy order for 125 shares comes in, at what price will it be filled?
b. At what price would the next market buy order be filled?
Answer:
(A) $89.80; (B) $89.85
Explanation:
A) A market buy order would be filled instantly at the best offer price i.e. the sell order with the lowest price which will also be the sell order that is topmost on the order book.
As such, a market buy order for 125 shares will be filled at a price of $89.80.
B) The next market buy order would be filled at the next best offer price after the order in (A) above has been filled. Accordingly, the next market buy order will be filled instantly at $89.85.
A small fast-food restaurant is automating its burger production. The owner needs to decide whether to rent a machine that can produce up to 2,000 hamburgers per week at a marginal cost of $1 per burger (excluding the cost of ingredients) or another machine that can also make up to 2,000 burgers per week but at a marginal cost of $0.50 per burger (again, excluding the cost of ingredients). The weekly lease for the machine with the higher marginal cost is $1,800. The weekly lease for the machine with the lower marginal cost is $2,170. The restaurant can sell burgers for $10 per burger, and the cost of ingredients for each burger is $2.
Suppose the restaurant leases the machine with the higher marginal cost for the first week and sells 2,000 burgers that week. The restaurant owner earned profits of $_____in the first week.
Suppose now the restaurant leases the machine with the lower marginal cost for the second week and again sells 2,000 burgers that week. The restaurant owner earned profits of $_____in the second week.
Answer:
$11,700 and $12,240
Explanation:
The computation is shown below:
As we know that
Total Revenue = No. of Sale Units × Selling Price Per Unit
= 2,000 × $10
= $20,000
Profit = Total Revenue - Total Cost
Here
Total cost = Fixed cost + variable cost
Variable Cost = No. of Sale Units × (Marginal Cost + Ingredients cost for Each Burger)
= 2,000 × ($1 + $2)
= $6,000
So,
Total Cost = Fixed Cost + Total Variable Cost
= $2,300 + $6,000
= $8,300
And, the total revenue is $20,000
Thus, the profit earned is
= $20,000 - $8,300
= $11,700
For the other case
Profit = Total Revenue - Total Cost
Here,
Total cost = Fixed cost + variable cost
Variable Cost = No. of Sale Units × (Marginal Cost + Ingredients cost for Each Burger)
= 2,000 × ($0.50 + $2)
= $5,000
So,
Total Cost = Fixed Cost + Total Variable Cost
= $2,760 + $5,000
= $7,760
And, the total revenue is $20,000
Therefore, the earned profit is
= $20,000 - $7,760
= $12,240
Brittany started a law practice as a sole proprietor. She owned a computer, printer, desk, and file cabinet she purchased during law school (several years ago) that she is planning to use in her business. What is the depreciable basis that Brittany should use in her business for each asset, given the following information?
Asset Purchase Price FMV at Time Converted to Business use
Computer $2,500 $800
Printer $300 $150
Desk $1,200 $1,000
File cabinet $200 $225
Answer:
For tax purposes, assets that are converted to business use from personal, should use the lesser of the Fair Market Value (FMV) at the time of conversion or the cost of the asset.
Computer.
The FMV is less than the purchase price so the depreciable basis is:
= $800
Printer
The FMV is less than the purchase price so the depreciable basis is:
= $150
Desk
The FMV is less than the purchase price so the depreciable basis is:
= $1,000
File Cabinet
The purchase price is less than the FMV so the depreciable basis is:
= $200
Given the products below and the events that affect them, indicate what happens to demand, supply, equilibrium quantity, and equilibrium price. Identify the determinant of demand and supply that causes the shifts.
a. Calculators. More schools require students to buy and use calculators; improved productivity shortens the time it takes to make calculators.
b. Gasoline. Oil production declines due to a crisis in the Middle East; people take more car vacations and drive more.
c. New homes. The average incomes fall as the economy moves into recession; the productivity of home construction workers and builders increases.
d. Tobacco. The government cut its subsidy to tobacco farmers; more people quit smoking.
Answer:
a. Increase in demand, Increase in supply & increases equilibrium quantity.
b. Decrease in supply, Increase in demand & increases the equilibrium price.
c. Decrease in demand, Increase in supply & decreases the equilibrium price.
d. Decrease in supply, decrease in demand & decreases the equilibrium price
Explanation:
a. More students imply increase in demand of calculators. Improved productivity implies increase in supply of calculators. Rightwards shift in demand & leftwards shifted supply increases equilibrium quantity.
b. Oil production decline implies decrease in supply. People's taste & preferences for vacations implies increase in demand. Rightwards shift in demand & leftwards shift in supply increases the equilibrium price.
c. Fall in income implies decrease in demand. Increase in construction workers' productivity implies increase in supply. Rightwards shift in demand & leftwards shift in supply increases the equilibrium price.
d. Decrease in subsidy imply decrease in supply. It also implies decrease in demand. Leftwards shift in demand & supply decreases the equilibrium price.
The financial planning process begins with ________ financial plans that in turn guide the formation of ________ plans and budgets.
Answer:
Long-term; short-term.
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.
The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.
The final step by the management of an organization in the financial decision making process is making necessary adjustments to the budget.
The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.
Hence, the financial planning process begins with long-term financial plans that in turn guide the formation of short-term plans and budgets.
1. A manager uses the following equation to predict monthly receipts: Y=450+10t time in weeks and y = receipts.) What is the forecast for July 14th if t=4 is the fourth week in January and t = 6 is February 14th of the same year (assume there are 4 weeks in each month)?
a. 690
b. 710
c. 730
d. 750
2. A major reason that decision making is often not such a rational process is that there are: Suppose we have H0:µ1= µ2 versus HA: µ1 ≠ µ2, with level of significance of α =.05 and critical values of zα/2 = ± 1.96, and the computed Test Statistics value of Z = -1.07. What is our decision?
Answer:
1. 690
2. Do not reject the null hypothesis.
Explanation:
1. Month t
At the end of Feb 6
March 4
April 4
May 4
June 2
14th of July 2
Total 24
Therefore on 14th July, t = 24
Forecast: Y = 450+10t = 450 + 10*24 = 450+240 = 690
2. Options are "a. Reject the null hypothesis. b. Do not reject the null hypothesis. c. Take a larger sample. d. Reserve judgment"
In general, if test statistic is more extreme than the critical values at given level of significance then we reject the null hypothesis otherwise we do not reject the null hypothesis.
Here, test statistic for the given two tailed test is Z = -1.07 and critical value at level of significance α = 0.5 is ± 1.96 . Since -1.96<Z<1.96, we can say that we do not reject Null Hypothesis as the test statistic is not extreme than the critical value at given level of significance.
The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat and bass boat each require 12 direct labor hours (dlh) for manufacture. Each product is budgeted for 250 units of production for the year. When required, round all per-unit answers to the nearest cent.
A. Determine the total number of budgeted direct labor hours for the year.
direct labor hours
Points:
0 / 1
B. Determine the single plantwide factory overhead rate. When required, round all per-unit answers to the nearest cent.
per dlh
Points:
0 / 1
C. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate. When required, round all per-unit answers to the nearest cent.
Speedboat per unit
Bass boat per unit
Answer:
Bardot Marine Company
a) Total number of budgeted direct labor hours for the year is:
= 6,000 DLH.
b) The single plantwide factory overhead rate is:
= $100
c) The factory overhead allocated per unit for each product is:
= $1,200
Explanation:
a) Data and Calculations:
Budgeted factory overhead = $600,000
Types of boats: Speedboat and Bass boat Total
Direct labor hours 12 DLH 12 DLH
Budgeted units 250 250 500
Total DLH 3,000 3,000 6,000
Single plantwide factory overhead rate = $600,000/6,000
= $100
The factory overhead allocated per unit for each product = overhead rate * number of hours for each unit
= 12 * $100
= $1,200
Hoffman Company manufactures car seats in its Miami plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The process- costing system at Hoffman Company has a single direct- cost category (direct materials) and a single indirect- cost category (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the assembly department finishes work on each car seat, it is immediately transferred to testing. Hoffman Company uses the weighted- average method of process costing. Data for the assembly department for October 2013 are as follows:
Physical Units car costs Direct Conversion
Materials Costs
Work in process, Oct 1 *a 4,000 $1,248,000 $241,650
Started during Oct 2017 22,500
Complete during Oct 2017 26,000
Work in process, Oct 31 *b 500
Total costs added during Oct 2017 $4,635,000 $2,575,125
a - Degree of completion: direct materials,?%; conversion costs, 45%.
b - Degree of completion: direct materials,?%; conversion costs, 65%.
1. For each cost category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule.
2. What issues should the manager focus on when reviewing the equivalent-unit calculations?
3. For each cost category, summarize total assembly department costs for October 2017 and calculate the cost per equivalent unit.
4. Assign costs to units completed and transferred out and to units in ending work in process.
Answer:
Hoffman Company
1. Equivalent units, using the weighted-average method:
Physical Direct Conversion
Units Materials
Complete during Oct 2017 26,000 26,000 (100%) 26,000 (100%)
Work in process, Oct 31 *b 500 500 (100%) 325 (65%)
Total equivalent units 26,500 26,325
2. The manager should focus on the tendency of departmental head reporting higher degree of completion to demonstrate improved performance of their departments. This will result in understated cost per equivalent unit and overstated operating income.
Again, when performance is too good, the departmental supervisor might be tempted to report lower degree of completion, which reduces the current period's income. The issue is that unchecked estimates of degree of completion can help smooth earnings from one period to the next for the departments. But this is not in the best interest of the company.
3. Cost per equivalent unit:
Direct Conversion
Materials Costs
Total production cost $5,883,000 $2,816,775
Total equivalent units 26,500 26,325
Cost per equivalent $222 $107
4. Assignment of cost to units completed and transferred out and ending WIP:
Direct Conversion Total Costs
Materials Costs
Units transferred out $5,772,000 $2,782,000 $8,554,000
(26,000*$222) (26,000*$107)
Ending WIP $111,000 $34,775 $145,775
(500*$222) (325*$107)
Total costs $5,994,000 $2,870,275 $8,699,775
Explanation:
Data for the assembly department for October 2013 are as follows:
Physical Direct Conversion
Units Materials Costs
Work in process, Oct 1 *a 4,000 $1,248,000 $241,650
Started during Oct 2017 22,500
Complete during Oct 2017 26,000
Work in process, Oct 31 *b 500
Total costs added during Oct 2017 $4,635,000 $2,575,125
a - Degree of completion: direct materials,?%; conversion costs, 45%.
b - Degree of completion: direct materials,?%; conversion costs, 65%.
Equivalent units, using the weighted-average method:
Physical Direct Conversion
Units Materials
Complete during Oct 2017 26,000 26,000 (100%) 26,000 (100%)
Work in process, Oct 31 *b 500 500 (100%) 325 (65%)
Total equivalent units 26,500 26,325
Cost of production:
Direct Conversion Total Costs
Materials Costs
Beginning WIP $1,248,000 $241,650 $1,489,650
Current period $4,635,000 $2,575,125 7,210,125
Total production cost $5,883,000 $2,816,775 $8,699,775
Cost per equivalent unit:
Direct Conversion
Materials Costs
Total production cost $5,883,000 $2,816,775
Total equivalent units 26,500 26,325
Cost per equivalent $222 $107
Assignment of cost to units completed and transferred out and ending WIP:
Direct Conversion Total Costs
Materials Costs
Units transferred out $5,772,000 $2,782,000 $8,554,000
(26,000*$222) (26,000*$107)
Ending WIP $111,000 $34,775 $145,775
(500*$222) (325*$107)
Total costs $5,994,000 $2,870,275 $8,699,775
If producing 200 buttons and 200 safety pins
daily is a 50% split of resources, where do we
see the opportunity cost if you decide to
produce 300 buttons and 100 safety pins?
A. The opportunity cost is still at 50%.
B. The opportunity cost is in producing fewer safety pins.
C. The opportunity cost is in the inefficiency of producing to
products.
D. The opportunity cost is in the market share for buttons.
Answer:
The correct option is - B. The opportunity cost is in producing fewer safety pins.
Explanation:
The correct option is - B. The opportunity cost is in producing fewer safety pins.
Reason -
Initially we produce 200 buttons and 200 safety pins and there are 50% split of resources.
Now, If we produce 300 buttons and 100 safety pins and there is no change in the split of resources, then
The opportunity cost of extra 100 buttons is sale amount we would have been getting if we make that 100 safety pins.
The shareholder-debtholder conflict refers to:________
a) When shareholders recognize that being socially responsible is not inconsistent with structuring the rights incentives for managers
b) When the primary goal of the financial manager is to maximize shareholder wealth and minimize bondholder wealth
c) When shareholders prefer risk and bondholders prefer to limit risk
d) When manager incentives are not properly aligned with those of the firm's shareholders and bondholders
e) When bondholders recognize that being socially responsible is not inconsistent with shareholder maximizing wealth
Answer:
C
Explanation:
The shareholder-debtholder conflict usually arises because shareholders would prefer the firm to engage in more risky business activities. This is because this has the potential to increase the income of the firm and as a result, the wealth of shareholders.
On the other hand debtholders would not want the firm to engage in risky activities because it might negatively affect the firm's ability to make its schedules payments to debtholders.
In order to protect themselves, debtholders usually draft a deb covenant which contains allowable activities of the firm
As you drive to school in the morning, you will probably flip through several radio stations before deciding to settle on one for the duration of the drive. For instance: you can listen to a "fair and balanced" talk show; an "intelligent talk" program; an interactive "call-in" talk show; a "self-improvement" talk show; and, even an "all sports" talk show. With so much monopolistic competition in radio programming, radio stations focus on offering you something just a little different.
t or f
Answer:
true
Explanation:
As you drive to school in the morning, you will probably flip through several radio stations before deciding to settle on one for the duration of the drive. For instance: you can listen to a "fair and balanced" talk show; an "intelligent talk" program; an interactive "call-in" talk show; a "self-improvement" talk show; and, even an "all sports" talk show. With so much monopolistic competition in radio programming, radio stations focus on offering you something just a little different. is true.
Grimm Manufacturing is trying to determine the equivalent units for conversion costs with 15,000 units of ending work in process at 40% completion when there is a total 45,000 physical units. There are no beginning units in the department. Conversion costs occur evenly throughout the entire production period. What are the equivalent units for conversion costs for the current period
Answer: 36000 units
Explanation:
Ending work in process = 15,000 units
Completion rate = 40%
Total physical units = 45,000
The units completed will be:
= Total Units - Ending working in process
= 45,000 - 15,000
= 30,000
Since only 40% of the ending work in process inventory units has been completed, the completed units will then be:
= 15,000 × 40%
= 15000 × 0.4
= 6,000 units.
Then, the equivalent units for conversion costs for the current period will be:
= 30,000 + 6,000
= 36,000 units.
Lincoln, Inc., which uses a volume-based cost system, produces cat condos that sell for $140 each. Direct materials cost $22 per unit, and direct labor costs $15 per unit. Manufacturing overhead is applied at a rate of 280% of direct labor cost. Nonmanufacturing costs are $34 per unit. What is the gross profit margin for the cat condos
Answer:
43.57 %
Explanation:
The computation of the gross margin for the cat condos is given below:
Total Manufacturing Cost per unit is
= Direct materials + Direct labor + Manufacturing overhead
= $22 + $15 + ( 280% of $15)
= $79
Now
Gross Profit is
= Selling price per unit - Total Manufacturing Cost per unit
= $140 - $79
= $61
And finally
Gross Profit Margin is
= (Gross Profit ÷ Selling Price ) × 100
= ($61 ÷ $140) × 100
= 43.57 %
Camptown Togs, Inc., a children’s clothing manufacturer, has always found payroll processing to be costly because it must be done by a clerk so that the number of piece-goods coupons received by each employee can be collected and the types of tasks performed by each employee can be calculated. Not long ago, an industrial engineer designed a system that partially automates the process by means of a scanner that reads the piece-goods coupons. Management is enthusiastic about this system because it utilizes some personal computer systems that were purchased recently. It is expected that this new automated system will save $45,000 per year in labor. The new system will cost about $30,000 to build and test prior to operation. It is expected that operating costs, including income taxes, will be about $5,000 per year. The system will have a five-year useful life. The expected net salvage value of the system is estimated to be $3,000.
(a) Identify the cash inflows over the life of the project.
(b) Identify the cash outflows over the life of the project.
(c) Determine the net cash flows over the life of the project.
Answer:
a. Time period Cash Inflow
Year 1 $45,000
Year 2 $45,000
Year 3 $45,000
Year 4 $45,000
Year 5 $48,000 ($45,000+$3,000)
b. Time period Cash Outflow
Year 0 $30,000
Year 1 $5,000
Year 2 $5,000
Year 3 $5,000
Year 4 $5,000
Year 5 $5,000
c. Time period Cash Inflow Cash Outflow Net Cash Flow
Year 0 $0 $30,000 -$30,000
Year 1 $45,000 $5,000 $40,000
Year 2 $45,000 $5,000 $40,000
Year 3 $45,000 $5,000 $40,000
Year 4 $45,000 $5,000 $40,000
Year 4 $48,000 $5,000 $43,000
Explain what would happen if there was safety issue of renting the apartments
resulting in the decrease to 7 units? (Show computations) What would be new
equilibrium price and quantity.
Answer:
When quantity supplied decreases by 7 apartments at each rent, the new supply and demand schedule is given below:
Monthly rent QD QS
400 30 9
450 25 11
500 20 13
550 15 15
600 10 17
So, the new equilibrium price is $550 and quantity is 15.
1. Issued 30,000 shares of common stock in exchange for $300,000 in cash.
2. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a notes payable to the seller was signed for the balance owed.
3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000.
5. Paid $5,000 in rent on the warehouse building for the month of March.
6. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021.
7. Paid $70,000 on account for the merchandise purchased in 3.
8. Collected $55,000 from customers on account.
9. Recorded depreciation expense of $1,000 for the month on the equipment.
Required:
Analyze each transaction and show the effect of each on the accounting equation for a corporation.
Solution :
Assets = Liabilities + Paid in capital + retained earnings
1. $ 300,000 $ 300,000
2. $ 30,000 $ 30,000
3. $ 90,000 $ 90,000
4. $ 50,000 $ 50,000
5. $ 5,000 $ 5,000
6. $ 6,000 $ 6,000
7. $ 70,000 $ 70,000
8. --
9. $ 1,000 $ 1,000
Point 4 -- the accounts receivable will increase by $ 120,000 due to the credit sales and the cost of goods sold.
Point 6 -- Adjustments entry at the year end for 3 months from January to March 2022 should be reduced from both assets and retained earnings and the adjusted amount would be $ 4500.
Point 8 -- No impact as the cash is collected against the account receivable and both are assets.
Zeitler's Department Stores sells its products online and through traditional brick-and-mortar stores. The following parallel coordinates plot displays data from a sample of 20 customers who purchased clothing from Zeitler's either online or in-store. The data include variables for the customer's age, annual income, and the distance from the customer's home to the nearest Zeitler's store. According to the parallel coordinates plot, how are online customers differentiated from in-store customers?
Question Completion:
Choose the correct answer below
(1) in-store customers appear to be middle aged, have higher annual income and live further distance away from a store
(2) in-store customers appear to be generally younger, have lower annual income and live near a store
(3) Online customers appear to be generally younger, have higher annual income and live further distance away from a store
(4) Online customers appear to be middle aged, have lower annual income and live near a store
Answer:
Zeitler's Department Stores
Online and In-store Customers:
According to the parallel coordinates plot, online customers are differentiated from in-store customers in the following ways:
(3) Online customers appear to be generally younger, have higher annual income and live further distance away from a store
Explanation:
Younger persons tend to embrace technology more than their older counterparts. Based on this, they also engage on online purchasing of goods and services instead of visiting the traditional brick-and-mortar stores. With online purchase, a customer is in better control because she can search for the best deals from any location.