If Prontas Inc. has bought back 2,000 of its stock from its shareholders at par value of $5. This transaction will be recorded in the journal of Prontas Inc. as: D. Treasury Stock Account (Debit) $10,000 Cash Account (Credit) $10,000.
What is journal entry?Journal entry is used by companies to post their business transaction. The appropriate journal entry to record this transaction is Treasury Stock Account (Debit) $10,000 Cash Account (Credit) $10,000 which is calculated as :
Prontas Inc. entry
Debit: Treasury Stock $10,000
(2,000 x $5)
Credit: Cash $10,000
(2,000 x $5)
Therefore the correct option is D.
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On April 6, Home Furnishings purchased $37,000 of merchandise from Una's Imports, terms 2/10, n/45. On April 8, Home Furnishings returned $7,800 of the merchandise to Una's Imports for credit. Home Furnishings paid cash for the merchandise on April 15. Required What is the amount that Home Furnishings must pay Una's Imports on April 15
Answer:
the amount that have to be paid is $28,616
Explanation:
The computation of the amount that have to be paid is shown below:
= (Merchandise value - returned goods) × (1 - discount percentage)
= ($37,000 - $7,800) × (1 - 0.02)
= $29,200 × 0.98
= $28,616
Hence, the amount that have to be paid is $28,616
Question 6 of 10
A distribution manager at a company that has customers in all 50 states
considers that storing goods in every state will make them quickly available
to all customers. What other major factor should affect the decision on the
number of warehouses?
A. Operating 50 or more warehouses will be expensive.
B. Some transportation modes serve limited locations.
C. Operating 50 or more warehouses will increase safety risks.
D. The number of warehouses will affect the length of the
distribution channel.
Answer:
a.) was right for me
Explanation:
The other major factor should affect the decision on the number of warehouses that Operating 50 or more warehouses will be expensive.
Option A is an appropriate response.
What is a warehouse?While a warehouse is technically any building that stores physical products for any reason, a distribution center is a type of warehouse that is specifically designed for fulfilling orders for the purpose of distribution to other businesses or consumers.
A warehouse is a structure used to store goods. Manufacturers, importers, exporters, wholesalers, transportation companies, customs, and others use warehouses. They are typically large plain buildings located on the outskirts of cities, towns, or villages.
Some of the Factors to considers on deciding the number of warehouses are-
Customer baseSupplier network Foreign Trade Zones (FTZs)Proximity to transportationBuilding Availability and ExpandabilityLease RatesHence, Option A is an appropriate response.
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Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year:
Direct materials...................................$6,000
Direct labor.........................................$20,000
Rent on factory building......................$15,000
Sales salaries.....................................$25,000
Depreciation on factory equipment......$8,000
Indirect labor.......................................$12,000
Production supervisor's salary.............$15,000
Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be:
A) $2.50 per direct labor-hour
B) $2.79 per direct labor-hour
C) $3.00 per direct labor-hour
D) $4.00 per direct labor-hour
Answer:
Predetermined manufacturing overhead rate= $2.5 per direct labor hour
Explanation:
Giving the following information:
Jameson estimates that 20,000 direct labor-hours will be worked during the year.
Rent on factory building......................$15,000
Depreciation on factory equipment......$8,000
Indirect labor.......................................$12,000
Production supervisor's salary.............$15,000
First, we need to calculate the estimated overhead costs:
estimated overhead costs= Rent on factory building + Depreciation on factory equipment + Indirect labor + Production supervisor's salary
estimated overhead costs= 15,000 + 8,000 + 12,000 + 15,000
estimated overhead costs= $50,000
Now, we can determine the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 50,000 / 20,000
Predetermined manufacturing overhead rate= $2.5 per direct labor hour
Brown Fashions Inc.'s December 31, 2018 balance sheet showed total common equity of $4,050,000 and 165,000 shares of stock outstanding. During 2019, the firm had $450,000 of net income, and it paid out $100,000 as dividends. What was the book value per share at 12/31/19, assuming no common stock was either issued or retired during 2019
Answer:
$26.67
Explanation:
Total Common Equity New = Total Common Equity Old + Net Income -Dividends Paid
Total Common Equity New = $4,050,000 + $450,000 - $100,000
Total Common Equity New = $4,400,000
Book value per share = Total Common Equity / Shares Outstanding
Book value per share = $4,400,000 / 165,000 shares
Book value per share = 26.66666666666667
Book value per share = $26.67
The Answer is: $26.67
When the Total Common Equity New = Total Common Equity Old + Net Income -Dividends Paid
Then Total Common Equity New is = $4,050,000 + $450,000 - $100,000Also that Total Common Equity New is = $4,400,000When the Book value per share is = Total Common Equity / Shares OutstandingAlso that Book value per share is = $4,400,000 / 165,000 sharesAfter that Book value per share is = 26.66666666666667So that Book value per share is = $26.67Learn more about:
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The specification for the pull strength of a wire that connects an integrated circuit to its frame is 10 g or more. Units made with aluminum wire have a defect rate of 10%. A redesigned manufacturing process involving the use of gold wire is being investigated. The goal is to reduce the rate of defects to 5% or less. Out of the first 100 units manufactured with gold wire, only 4 are defective. True or false: Since only 4% of the 100 units were defective, we can conclude that the goal has been reached.
Answer: False
Explanation:
For the goal to be concluded as reached, the research must follow rules that will enable the proper testing of the data.
One of those is that the sample chosen must be random and the other is that the sample size must be sufficient.
The sample here is not random as it is the first 100 units and it also has an insufficient size because a sample of more than 100 will be needed to adequately test this method.
We are therefore unable to conclude that the goal has been reached, yet.
Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles $ 26,000 Accounts payable 2,400 Accrued liabilities payable 4,100 Notes payable (current) 26,000 Notes payable (noncurrent) 1,800 Common stock 53,000 Additional paid-in capital 94,000 Retained earnings 3,700 $ 16,000 2,700 6,200 44,000 9,900 89,100 43, 100
During the current year, the company had the following summarized activities:
a. Purchased short-term investments for $8,300 cash.
b. Lent $5,300 to a supplier who signed a two-year note.
c. Purchased equipment that cost $28,000; paid $5,000 cash and signed a one-year note for the balance.
d. Hired a new president at the end of the year. The contract was for $81,000 per year plus options to purchase company stock at a set price based on company performance. The new president begins her position on January 1 of next year.
e. Issued an additional 2,100 shares of $0.50 par value common stock for $14,000 cash.
f. Borrowed $17,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $2,800 cash.
h. Built an addition to the factory for $25,000; paid $7,300 in cash and signed a three-year note for the balance.
i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,200.
1. & 2. Post the current year transactions to T-accounts for each of the accounts on the balance sheet. (Two items have been given in the cash T-account as examples).
Cash 26,000 Investments (short-term) 2,400 Beg. Bal. Beg. Bal. 8,300 (a) 5,300 (6) 5,000 (c) (d) End. Bal. 2,400 End. Bal. 7,400 Accounts Receivable 4,100 Inventory 26,000 Beg. Bal. Beg. Bal. End. Bal. 4,100 End. Bal. 26,000 Notes Receivable (long-term) 1,800 Equipment 53,000 Beg. Bal. Beg. Bal. End. Bal. L 1,800 End. Bal. 53,000
Answer:
Jaguar Plastics Company
T- Accounts:
Cash
Account Titles Debit Credit
Beginning balance $16,000
a. Short-term Investments $8,300
b. Note receivable (long-term) 5,300
c. Equipment 5,000
e. Common stock 1,050
e. Additional Paid-in Capital 12,950
f. Note payable (current) 17,000
g. Intangible 2,800
h. Factory Building 7,300
i. Equipment (refund) 1,200
Investments (short-term)
Account Titles Debit Credit
Beginning balance $2,700
a. Cash 8,300
Accounts receivable
Account Titles Debit Credit
Beginning balance $6,200
Inventory
Account Titles Debit Credit
Beginning balance $44,000
Notes receivable (long-term)
Account Titles Debit Credit
Beginning balance $ 9,900
b. Cash 5,300
Equipment
Account Titles Debit Credit
Beginning balance $89,100
c. Cash 5,000
c. Note Payable (short) 23,000
i. Cash (refund) $1,200
Factory building
Account Titles Debit Credit
Beginning balance $43,100
h. Cash 7,300
h. Note payable
(non-current) 15,700
Intangibles
Account Titles Debit Credit
Beginning balance $26,000
g. Cash $2,800
Accounts payable
Account Titles Debit Credit
Beginning balance $2,400
Accrued liabilities payable
Account Titles Debit Credit
Beginning balance 4,100
Notes payable (current)
Account Titles Debit Credit
Beginning balance 26,000
c. Equipment 23,000
f. Cash 17,000
Notes payable (noncurrent)
Account Titles Debit Credit
Beginning balance 1,800
h. Factory Building 15,700
Common stock
Account Titles Debit Credit
Beginning balance 53,000
e. Cash 1,050
Additional paid-in capital
Account Titles Debit Credit
Beginning balance 94,000
e. Cash 12,950
Retained earnings
Account Titles Debit Credit
Beginning balance 3,700
Explanation:
a) Data and Calculations:
Trial Balance as at December 31:
Debit Credit
Cash $16,000
Investments (short-term) 2,700
Accounts receivable 6,200
Inventory 44,000
Notes receivable (long-term) 9,900
Equipment 89,100
Factory building 43,100
Intangibles $26,000
Accounts payable 2,400
Accrued liabilities payable 4,100
Notes payable (current) 26,000
Notes payable (noncurrent) 1,800
Common stock 53,000
Additional paid-in capital 94,000
Retained earnings 3,700
Totals $211,000 $211,000
Suppose that the standard deviation of quarterly changes in the prices of a commodity is $0.65, the standard deviation of quarterly changes in a futures price on the commodity is $0.81, and the coefficient of correlation between the two changes is 0.8. A three-month contract is used for hedging. Which of the following is true?
A. The size of the futures position should be 64.2% of the size of the company’s exposure in a three-month hedge.
B. The size of the company’s exposure should be 64.2% of the size of the futures position in a three-month hedge.
C. The size of the futures position should be 35.8% of the size of the company’s exposure in a three-month hedge.
D. The size of the futures position should be 99.7% of the size of the company’s exposure in a three-month hedge.
Answer:
The size of the futures position should be 64.2% of the size of the company’s exposure in a three-month hedge.
Explanation:
As given,
The standard deviation of quarterly changes in the prices of a commodity = $0.65
The standard deviation of quarterly changes in a futures price on the commodity = $0.81
The coefficient of correlation between the two changes = 0.8
Now,
Optimal hedge ratio = 0.8×[tex]\frac{0.645}{0.81}[/tex] = 0.8×0.80 = 0.6419
⇒Optimal hedge = 0.6419 ≈ 0.642 = 64.2 %
⇒The size of the futures position should be 64.2% of the size of the company’s exposure in a three-month hedge.
This is to inform you that I will be leaving work early today.
This is to inform you that I will be leaving work early today. The grammar in this sentence is correct.
What is grammar?The grammar of a natural language is its set of structural constraints on speakers' or writers' composition of clauses, phrases, and words. The term can also refer to the study of such constraints, a field that includes domains such as phonology, morphology, and syntax, often complemented by phonetics, semantics, and pragmatics. There are currently two different approaches to the study of grammar: traditional grammar and theoretical grammar.
Fluent speakers of a language variety or lect have effectively internalized these constraints, the vast majority of which at least in the case of one's native languages are acquired not by conscious study or instruction but by hearing other speakers. Much of this internalization occurs during early childhood; learning a language later in life usually involves more explicit instruction.
The term grammar can also describe the linguistic behaviour of groups of speakers and writers rather than individuals.
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Your question is incomplete, but most probably the full question is:
Check the grammar of the sentence given below is correct or incorrect:
This is to inform you that I will be leaving work early today.
A colleague from the plant in Germany has arrived at the Chicago plant to share insights on a recent product line changeover implemented in Germany. This changeover has saved thousands of euros at the German facility, but Jim does not think it will work in the United States. Jim feels that there is a completely different attitude towards work and innovation in the U.S., and in fact, thinks the German facility is technologically behind his plant. Additionally, the colleague often mispronounces words when he speaks English, and doesn't dress appropriately for the U.S. office. He showed up to work on the plant floor in a formal suit and tie, with dress shoes that had a slippery sole. However, the colleague is a guest, and it is important that Jim pretends to be interested.
Identify the listening barriers. Check all that apply.
Psychological barriers
Thought speed
Grandstanding
Nonverbal distractions
Faking attention
Identify tips that would help Jim listen more effectively to what his international colleague has to say about the production process. Check all that apply.
Control his surroundings
Provide feedback
Focus on nonverbal signals
keep an open mind Judge ideas, not appearances
Answer:
1. Psychological barriers, Nonverbal distraction, Faking attention
As Jim is not much interested in listening to German colleague where he is paying attention upon the nonverbal distraction such as dressing sense, words pronunciation etc.
2. Provide feedback, Keep an open mind, Judge ideas, not appearances
Listening barriers can be overcome if Jim, keep an open mind towards the conversation, to remain engaged, provide feedback and judge the ideas put forward by the colleague.
The Oxford Company uses a job order cost system and applies factory overhead to jobs on the basis of direct labor cost. During the month of July, the following activities took place in the work-in-process account:
Beginning $15,000
Direct materials 10,000
Direct labor 30,000
Overhead applied 15,000
 Â
At the end of July, only one job (Job #15), was still in process. This job has been charged with $2,000 of direct materials cost.
Required:
Determine the amount of direct labor cost incurred and overhead applied in the ending inventory of work-in-process on July 31.
Answer:
See below
Explanation:
The amount of direct labor cost incurred is computed as;
= $30,000/$70,000 × $2,000
= $857
Overhead applied in ending working in the ending inventory of work in process on July 31
= $15,000/$70,000 × $2,000
= $429
Emily recently quit her job at a major corporation because she saw little chance for advancement. Although she is still searching for a new position, Emily believes the economy is healthy and she hears that several firms are hiring people with her qualifications. Which of the following statements about Emily's current situation is most accurate?
a. not considered unemployed because she voluntarily quit her job.
b. an example of cyclical unemployment.
c.an example of frictional unemployment.
d. likely to find employment quickly if she seeks training in a different field
Answer:
C)an example of frictional unemployment
Explanation:
Frictional unemployment can be regarded as " search unemployment" and it's a type of unemployment which can be as a result of the individual circumstances, this is the period of time used between jobs by workers trying to search for jobs or moving from initial job to another.
The following selected transactions relate to liabilities of United Insulation Corporation. Unitedâs fiscal year ends on December 31.
Jan. 13 Negotiated a revolving credit agreement with Parish Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $25.0 million at the bankâs prime rate.
Feb. 1 Arranged a three-month bank loan of $2.0 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 13% was payable at maturity.
May 1 Paid the 13% note at maturity.
Dec. 1 Supported by the credit line, issued $17.6 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 12% discount rate.
31 Recorded any necessary adjusting entry(s).
2022 Sept. 1 Paid the commercial paper at maturity.
Required:
Prepare the appropriate journal entries through the maturity of each liability 2016 and 2017.
Answer:
13-Jan
No Entry
1-Feb
Dr Cash $25,000,000
Cr Notes Payable $25,000,000
1-May
Dr Notes Payable $25,000,000
Cr Interest Expense 812,500
Cr Cash 25,812,500
1-Dec
Dr Cash (bal) $16,016,000
Dr Discount On Notes Payable $1,584,000(17,600,000*12%*9/12)
CrNotes Payable $17,600,000
31-Dec
Dr Interest Expense $176,000
Discount in Notes Payable $176,000
1-Sep
Dr Interest Expense ($1,408,000
Cr Discount On Notes Payable $1,408,000
1-Sep Dr Notes Payable $17,600,000
Cr Cash $17,600,000
Explanation:
Preparation of the appropriate journal entries through the maturity of each liability 2016 and 2017
13-Jan No Entry
1-Feb
Dr Cash $25,000,000
Cr Notes Payable $25,000,000
1-May
Dr Notes Payable $25,000,000
Cr Interest Expense 812,500
(25000000*13%*3/12)
Cr Cash 25,812,500
1-Dec
Dr Cash (bal) $16,016,000
($17,600,000-$1,584,000)
Dr Discount On Notes Payable $1,584,000
(17,600,000*12%*9/12)
CrNotes Payable $17,600,000
31-Dec
Dr Interest Expense $176,000
Discount in Notes Payable $176,000
(1,584,0000*1/9)
1-Sep
Dr Interest Expense (1,584,000*8/9) $1,408,000
Cr Discount On Notes Payable $1,408,000
1-Sep Dr Notes Payable $17,600,000
Cr Cash $17,600,000
"Last October, due to an early frost, the price of a pumpkin increased by 10 percent compared to the price in the previous Halloween season. As a result, the quantity demanded county-wide decreased from 2 million to 1.5 million." Based on this statement, it is certain that the Group of answer choices total revenue from the sale of pumpkins decreased. demand curve for Halloween costumes shifted leftward. demand curve for pumpkins shifted leftward. price elasticity of demand for pumpkins decreased from its value in previous years.
Answer:
total revenue from the sale of pumpkins decreased.
Explanation:
From the question we are informed Last October, whereby due to an early frost, the price of a pumpkin increased by 10 percent compared to the price in the previous Halloween season. As a result, the quantity demanded county-wide decreased from 2 million to 1.5 million." Based on this statement, it is certain that total revenue from the sale of pumpkins decreased.
Total revenue can be regarded as total amount of sales of goods/ services. It can be expressed as ( quantity of the sold goods × price of the goods ). It is the overall receipt obtainable by a seller after selling goods/ service to buyers. From the question, we can see that total revenue from the sale of pumpkins decreased.
Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for $12 million. The machinery can be sold to the Romulans today for $10.8 million. Klingon's current balance sheet shows net fixed assets of $10 million, current liabilities of $830,000, long-term debt of $5 million and net working capital of $248,000. If all the current accounts were liquidated today, the company would receive $1.15 million cash. What is the book value of Klingon's equity?
a. $5,248,000.00.
b. $11,078,000.00.
c. $5,000,000.00.
d. $22,800,000.00.
e. $12,000,000.00.
Answer:
a. $5,248,000.00.
Explanation:
Calculation for the book value of Klingon's equity
Book value = $248,000 + $5,000,000
Book value = $5,248,0000
Therefore the book value of Klingon's equity will be $5,248,0000
Problem 01-2A Classifying costs LO C2, C3 The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company.
Advertising expense $28,750
Depreciation expense—Office equipment 7,250
Depreciation expense—Selling equipment 8,600
Depreciation expense—Factory equipment 33,550
Factory supervision 102,600
Factory supplies used (indirect materials) 7,350
Factory utilities 33,000
Direct labor 675,480
Indirect labor 56,875
Miscellaneous production costs 8,425
Office salaries expense 63,000
Raw materials purchases (direct) 925,000
Rent expense—Office space 22,000
Rent expense—Selling space 26,100
Rent expense—Factory building 76,800
Maintenance expense—Factory equipment 35,400
Sales 4,462,500
Sales salaries expense 392,560
Required:
Classify each of the costs as either a product or period cost. Then, classify each of the product costs as either direct materials, direct labor, or factory overhead and each of the period costs as either selling or general and administrative expenses.
Answer:
Part 1
a. Period Cost
Advertising expense $28,750
Depreciation expense—Office equipment $7,250
Depreciation expense—Selling equipment $8,600
Office salaries expense $63,000
Rent expense—Office space $22,000
Rent expense—Selling space 26,100
Sales salaries expense $392,560
b. Product Cost
Depreciation expense—Factory equipment $33,550
Factory supervision $102,600
Factory supplies used (indirect materials) $7,350
Factory utilities $33,000
Direct labor $675,480
Indirect labor $56,875
Miscellaneous production costs $8,425
Raw materials purchases (direct) $925,000
Rent expense—Factory building $76,800
Maintenance expense—Factory equipment $35,400
Part 2
a. Direct material
Raw materials purchases (direct) $925,000
b. Direct Labor
Direct labor $675,480
c. Factory overhead
Depreciation expense—Factory equipment $33,550
Factory supervision $102,600
Factory supplies used (indirect materials) $7,350
Factory utilities $33,000
Indirect labor $56,875
Miscellaneous production costs $8,425
Rent expense—Factory building $76,800
Maintenance expense—Factory equipment $35,400
Part 3
a. selling expense
Advertising expense $28,750
Depreciation expense—Selling equipment $8,600
Rent expense—Selling space $26,100
Sales salaries expense $392,560
b. general and administrative
Depreciation expense—Office equipment $7,250
Office salaries expense $63,000
Rent expense—Office space $22,000
Explanation:
Period Costs comprises all manufacturing costs and are used for inventory valuation. Period costs comprises of all non-manufacturing costs and are expensed in the income statement.
Overhead Costs are Manufacturing costs that can not be traced directly to the product being manufactured. They need to be apportioned using cost drivers to the products or cost centers.
KCCO, Inc., has current assets of $4,200, net fixed assets of $23,400, current liabilities of $3,750, and long-term debt of $8,400.
1. What is the value of the shareholders’ equity account for this firm? (Do not round intermediate calculations.)
2. How much is net working capital? (Do not round intermediate calculations.)
Answer:
See below
Explanation:
1. Value of shareholder's equity is computed as
= Total assets - Current liabilities - long term debt
= [($4,200 + $24,400) - $3,750 - $8,400]
= $28,600 - $3,750 - $8,400
= $16,450
2. How much is net working capital
This is computed as;
= Total current asset - Total current liabilities
= $4,200 - $3,750
= $450
Money management includes effective tax planning. Your financial plan should include ways to lower your tax liability so you have more money to spend, invest, or donate. The key to effective tax planning is to reduce your taxable income, rather than your gross income, through all appropriate and legally available opportunities.
The act of reducing taxes in ways that are legal and compatible with the intent of Congress is called:______
Answer:
Tax Avoidance
Explanation:
A Tax is simply a compulsory payment to a local, state, or national government. It is a source of Revenue to government.
Tax Avoidance is defined as an action that an individual embark on to lreduce tax and maximize after tax income. That is to lessen one's tax liability within the limit set up by law.
In case of tax reduction or minimisation for an individual, one must;
1. Know that the arrangement is usually in the beginning of the business rather than in the course of it.
2. There must be sound commercial reasons for the arrangement.
3. Limit tax by exercising choices provided for in the Act and do not use these choices out of the manner listed by parliament. e.t.c
0
Of these common educational requirements for Law, Public Safety, and Security careers, which are you most
interested in achieving? Check all that apply.
high school diploma
traditional two- or four-year college degree
advanced degree after a traditional four-year college degree
specialized technical certificate or degree, such as a certificate for expertise in a software program
on their training eynerience
Answer:
There is no right or wrong answer, it is based off of your own opinion
Explanation:
:) Hope I cleared the confusion (:
Answers
traditional two- or four-year college degree
advanced degree after a traditional four-year college degree
specialized technical certificate or degree, such as a certificate for expertise in a software program
Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended juices are then bottled and packed for shipping in the Bottling Department. The following information pertains to the operations of the Blending Department for June. Percent Completed Units Materials Conversion Work in process, beginning 20,000 100% 75% Started into production 180,000 Completed and transferred out 160,000 Work in process, ending 40,000 100% 25% Materials Conversion Work in process, beginning $ 25,200 $ 24,800 Cost added during June $ 334,800 $ 238,700 Required: 1. Calculate the Blending Department's equivalent units of production for materials and conversion in June. 2. Calculate the Blending Department's cost per equivalent unit for materials and conversion in June. 3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June. 4. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June. 5. Prepare a cost reconciliation report for the Blending Department for June.
Answer:
A. Material 200,000
Conversion 170,000
B. Materials $ 1.80
Conversion $ 1.55
C. Cost of units completed and transferred out $288,000 $ 248,000 $ 536,000
D. Cost of beginning work in process inventory $50,000
Costs added to production during the period $573,500
Explanation:
A. Calculation for the Blending Department's equivalent units of production for materials and conversion in June.
Equivalent units of production:
Materials
Transferred to next department
160,000
Equivalent units in ending work in process inventory:
Materials: 40,000
(40,000 units × 100% complete )
Equivalent units of production 200,000
Conversion
Transferred to next department
160,000
Add Conversion10,000
40,000 units × 25% complete
Equivalent units of production 170,000
B. Calculation for the Blending Department's cost per equivalent unit for materials and conversion in June.
Cost per equivalent unit:
Materials Conversion
Cost of beginning work in process $25,200 $24,800
Cost added during the period 334,800 238,700
Total cost $360,000 $263,500 (a)
Equivalent units of production
200,000 170,000 (b)
Cost per equivalent unit (a) ÷ (b) $ 1.80 $ 1.55
Materials =($360,000÷200,000=$ 1.80)
Conversion=($263,500÷170,000=$ 1.55)
C. Calculation for the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June.
Materials Conversion Total
Ending work in process inventory:
Equivalent units 40,000 10,000
Cost per equivalent unit $1.80 $1.55
Cost of ending work in process inventory $72,000 $15,500 $ 87,500
Units completed and transferred out:
Units transferred to the next department 160,00 160,000
Cost per equivalent unit $1.80 $1.55
Cost of units completed and transferred out $288,000 $ 248,000 $ 536,000
D. Preparation of a cost reconciliation report for the Blending Department for June
Cost of beginning work in process inventory $50,000
($25,200 + $24,800)
Costs added to production during the period $573,500
($334,800 + $238,700)
The FDA does all of the following EXCEPT
Provides standards and guidelines for poisonous substances
Provides food assistance programs such as food stamps and school lunch programs
Establishes labeling guidelines for products
Requires testing and approval of all new drugs
how does peer pressure influence the spread of stis
people will use peer pressure to make others have sex/sexual interactions which leads to still being caused from unclean or unsafe interactions. hope this is what you meant!
Leasing companies purchase capital equipment, like airplanes or trucks, and then lease the equipment to the firms that actually use them. On its face, it is hard to see why this is a wealth-creating transaction since the end users could borrow money and purchase their own equipment. The answer is that banks, due to the way they are regulated, are more willing to lend to companies with less debt. By leasing equipment, a company moves debt off its balance sheet, which makes it easier to borrow more heavily. The enhanced borrowing ability of low-debt companies makes leasing more valuable than borrowing and buying. In the fall of 2015, one such truck leasing company was having trouble making money. The company purchased over-the-road trucks for $92,000 and then leased them to various transport companies, ranging from small owner-operators to large publicly owned firms with fleets of over hundred trucks. Salespeople who negotiated the leases were paid a commission of $2,000 for every truck they leased.
1. Why is the leasing company losing money? Explain.
2. How do we fix this situation and turn the company to a profitable one?
Explanation:
the reason the leasing company is losing money is because the people in sales are paid their commission for every equipment not regarding the amount of profit that was made. This brought about leasing of so many equipments as they could without thinking if it would have a positive or negative impact on the company. they could lease as many equipments as they could because they were charging low rates to leasing companies.
2. How do we fix this situation and turn the company to a profitable one
The company can fix this by figuring out a much better way to pay incentives to the people in sales. Incentives should be paid out of the profits of the business in such a way that if the lease rate is reduced the performance of those in sales is reduced also.
A marketing researcher wants to estimate the mean amount spent (S) on Amazon.com by Amazon Prime member shoppers. Suppose a random sample of 100 Amazon Prime member shoppers who recently made a purchase on Amazon.com yielded a mean of $1,500.
a. Suppose the standard deviation of the amount spent ($) on Amazon.com is $200. Construct a 95% confidence interval estimate for the mean spending for all Amazon Prime member shoppers.
b. Suppose the standard deviation of the sample of 100 Amazon Prime member shoppers is $200. Construct a 95% confidence interval estimate for the mean spending for all Amazon Prime member shoppers.
Answer:
The answer is below
Explanation:
a)
Given that mean (μ) = $1500, standard deviation (σ) = $200, sample size (n) = 100
confidence (C) = 95% = 0.95
α = 1 - C = 1 - 0.95 = 0.05
α/2 = 0.05 / 2 = 0.025
The z score that corresponds with 0.475 (0.5 - 0.025) is 1.96. Therefore the margin of error (E) is:
[tex]E = z_\frac{\alpha}{2} *\frac{\sigma}{\sqrt{n} } \\\\E=1.96*\frac{200}{\sqrt{100} } =39.2\\[/tex]
The confidence interval = (μ ± E) = (1500 ± 39.2) = (1500 - 39.2, 1500 + 39.2) = (1460.8, 1539.2)
The confidence interval is between $1460.8 and $1539.2.
b) Given that mean (μ) = $1500, standard deviation for 100 samples = σ /√n = $200,
confidence (C) = 95% = 0.95
[tex]E = z_\frac{\alpha}{2} *\frac{\sigma}{\sqrt{n} } \\\\E=1.96*200=392\\[/tex]
The confidence interval = (μ ± E) = (1500 ± 392) = (1500 - 392, 1500 + 392) = (1108, 1892)
The confidence interval is between $1108 and $1892.
The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during July:
Jul. 3 Charged 175 hours of professional (lawyer) time to the Obsidian Co. breech of contract suit to prepare for the trial, at a rate of $150 per hour.
10 Reimbursed travel costs to employees for depositions related to the Obsidian case, $12,500.
14 Charged 260 hours of professional time for the Obsidian trial at a rate of $185 per hour.
18 Received invoice from consultants Wadsley and Harden for $30,000 for expert testimony related to the Obsidian trial.
27 Applied office overhead at a rate of $62 per professional hour charged to the Obsidian case.
31 Paid administrative and support salaries of $28,500 for the month.
31 Used office supplies for the month, $4,000.
31 Paid professional salaries of $74,350 for the month.
31 Billed Obsidian $172,500 for successful defense of the case.
Required:
A. Provide the journal entries for each of these transactions.
B. How much office overhead is over- or underapplied?
C. Determine the gross profit on the Obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services.
Answer:
3-July
Dr Work in process 25,500
Cr Salaries payable 25,500
10-Jul
Dr Work in process 12,500
Cr Cash 12,500
14-Jul
Dr Work in process 48,100
Cr Salaries payable 48,100
18-Jul
Dr Work in process 30,000
Cr Consultant fees payable 30,000
27-Jul
Dr Work in process 26,660
Cr Office overhead 26,660
31-Jul
Dr Office overhead 28,500
Cr Cash 28,500
31-Jul
Dr office overhead 4,000
Cr Supplies 4,000
31-Jul
Dr Salaries payable 74,350
Cr Cash 74,350
31-Jul
Dr Accounts receivable 172,500
Cr Fees earned 172,500
31-Jul
Dr Cost of services 142,760
Cr Work in process 142,760
b. $5,840 Over applied
c. $35,580
Explanation:
Preparation of the journal entries for each of these transactions.
3-Jul
Dr Work in process 25,500
Cr Salaries payable 25,500
(170 hours ×150 per hour)
10-Jul
Dr Work in process 12,500
Cr Cash 12,500
14-Jul
Dr Work in process 48,100
Cr Salaries payable 48,100
(260 hours ×185 per hour)
18-Jul
Dr Work in process 30,000
Cr Consultant fees payable 30,000
27-Jul
Dr Work in process 26,660
Cr Office overhead 26,660
(170 hours +260 hours)*62
31-Jul
Dr Office overhead 28,500
Cr Cash 28,500
31-Jul
Dr office overhead 4,000
Cr Supplies 4,000
31-Jul
Dr Salaries payable 74,350
Cr Cash 74,350
31-Jul
Dr Accounts receivable 172,500
Cr Fees earned 172,500
31-Jul
Dr Cost of services 142,760
(25,500+12,500+48,100+30,000+26,660)
Cr Work in process 142,760
b. Calculation for the office overhead
Office overhead =(28,500+4,000)-26,660
Office overhead=32,500-26,660
Office overhead=$5,840 Over applied
Therefore the office overhead is $5,840 over applied w
C. Calculation to Determine the gross profit
Fees earned 172,500
Less Cost of services (136,920)
(142,760-5,840)
Gross profit $35,580
Therefore the gross profit will be $35,580
Sorter Company purchased equipment for $330,000 on January 2, 2019. The equipment has an estimated service life of 8 years and an estimated residual value of $33,000 . Required: Compute the depreciation expense for 2019 under each of the following methods: Straight-line: $ fill in the blank 1 Sum-of-the-years'-digits: $ fill in the blank 2 Double-declining-balance: $
Answer:
1. Depreciation expense for 2019(Straight-line)= (Cost of the assets - Salvage value) / life of the assets
= ($330000 - $33000)/8
= $37,125
2. Sum-of-the-years'-digits = 1+2+3+4+5+6+7+8 = 36
Depreciation Expense for 2019(Sum-of-the-years'-digits method)
= ($330000 - $33000)*8/36
= $66,000
3. Double-declining-balance depreciation rate = (100/8 years)*2 = 25%
Depreciation Expense for 2019 = 330000*25% = $82,500
On January 1, year 8, Crimson Corp., a closely held corporation, issued 5% bonds with a maturity value of $90,000, together with 1,500 shares of its $3 par value common stock, for a combined cash amount of $121,800. The market value of Crimson’s stock is uncertain. If the bonds had been issued separately they would have sold at 102. What amount should Crimson report for additional paid-in capital (or paid-in capital—excess of par) upon issuing the stock?
Answer:
The amount Crimson should report for additional paid-in capital (or paid-in capital—excess of par) upon issuing the stock is $25,500.
Explanation:
Additional paid-in capital is the excess of market value of common stock over the face value of common stock. Therefore, the amount Crimson should report for additional paid-in capital can be calculated as follows:
Face value of common stock = Number of shares issued * Price per share = $1,500 * $3 = $4,500
Since if the bonds had been issued separately they would have sold at 102, this implies that the market value of the bonds is 102% of the face value of the bond. Therefore, we have:
Bonds market value = Bonds face value * 102% = $90,000 * 102% = $91,800
Market value of common stock = Combined cash amount - Bonds market value = $121,800 - $91,800 = $30,000
Therefore, we have:
Additional paid-in capital = Market value of common stock - Face value of common stock = $30,000 - $4,500 = $25,500
Therefore, the amount Crimson should report for additional paid-in capital (or paid-in capital—excess of par) upon issuing the stock is $25,500.
Mutual funds that invest in mortgage-backed pass-through securities are exposed to which of the following risks and costs?
a. Credit risk
b. Liquidity risk
c. Interest rate risk
d. Capital adequacy requirements
e. Prepayment risk
Answer:
e. Prepayment risk
Explanation:
Prepayment risk is the likelihood of the firm where Special Purpose Vehicle that manages the mortgage-backed pass-through securities to repay the principal sum invested or part of it earlier than expected which then denies the investor of interest payments throughout the investment period.
When principals are repaid much earlier, the interest that could be earned on the principal is lost since the principal upon which the interest is to be computed has been repaid, hence, no more basis for the interest thereafter
Trek Company has the following production data for April: units transferred out 41,400, and ending work in process 5,620 units that are 100% complete for materials and 40% complete for conversion costs. If unit materials cost is $6 and unit conversion cost is $10. Determine the costs to be assigned to the units transferred out and the units in ending work in process.
Answer and Explanation:
The computation of the cost assigned is given below:
For units transferred out
= 41,400 units × ($6 + $10)
= $662,400
For ending work in units
= 5,620 units × $6 + 5,620 units × 40% × $10
= $33,720 + $22,480
= $56,200
Hence, the costs to be assigned to the units transferred out and the units in ending work in process is $662,400 and $56,200 respectively
Direct materials $ 37 per unit Fixed manufacturing overhead costs $ 225,000 Sales price $ 195 per unit Variable manufacturing overhead $ 22 per unit Direct labor $ 26 per unit Fixed marketing and administrative costs $ 190,000 Units produced and sold $ 5,500 Variable marketing and administrative costs $ 8 per unit Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement.
Answer:
A.Gross Margin $385,550
B. Contribution margin $566,500
Explanation:
a. Preparation of a gross margin income statement
Gross margin income statement
Sales 1,072,500
(5500*$ 195 per unit)
Less Variable expenses:
Direct Material 198,000
(5500*36)
Direct Labour 143,000
(5500*26)
Variable manufacturing overhead 121,000
(5500*22)
Fixed Manufacturing overhead 224,950
(5500*40.90)
(225,000/5500=40.90)
Gross Margin $385,550
Therefore Gross Margin will be $385,550
b. Preparation of a contribution margin income statement.
Contribution margin income statement
Sales 1,072,500
(5500*$ 195 per unit)
Less cost of goods sold:
Direct Material 198,000
(5500*36)
Direct Labour 143,000
(5500*26)
Variable manufacturing overhead 121,000
(5500*22)
Variable Marketing and administrative cost 44,000
(5500*8)
Contribution margin $566,500
Therefore Contribution margin will be $566,500
What initial costs are associated with renting an apartment?
Answer:
security deposit, first month's rent and utility hook ups
Explanation: