Answer:
a. Variable cost
Explanation:
Direct Materials are traceable to cost object (product) and they usually vary with the quantities produced. Thus cost of direct materials would most likely be Variable cost.
Cycles started with 5 bicycles that cost $8 each. On August 16, California bought 30 bicycles at $55 each. On August 30, California sold 20 bicycles for $105 each.
Requirements
1. Prepare Cycle's perpetual inventory record assuming the company uses the LIFO inventory costing method.
2. Journalize the purchase of merchandise inventory on account and the sale of merchandise inventory on account.
Answer:
California Cycles
1. Perpetual Inventory Records:
Date Description Units Unit Cost Total
Aug. 1 Beginning Inventory 5 $8 $40
Aug. 16 Purchases 30 $55 1,650
Aug. 30 Sales 20 $105 2,100
Aug. 30 Cost of goods sold 20 $55 1,100
Aug. 30 Ending Inventory 15 $590
2. Journal Entries:
Aug. 16:
Debit Inventory $1,650
Credit Accounts Payable $1,650
To record the purchase of goods on account.
Aug. 30:
Debit Accounts Receivable $2,100
Credit Sales Revenue $2,100
To record the sale of goods on account.
Explanation:
The LIFO inventory costing method determines the cost of goods sold by using the latest units in inventory. This is because the LIFO method assumes that the newest units of goods are sold first. This means that the ending inventory will include the costs of goods purchased earlier than the sales date.
The following cost data relate to the manufacturing activities of Chang Company during the just completed year Manufacturing overhead costs incurred Indirect materials Indirect labor Property taxes, factory Utilities, factory Depreciation, factory Insurance, factory Total actual manufacturing overhead costs incurred $ 15,000 130,000 8,000 70,000 240,000 10,000 $473,000 Other costs incurred Purchases of raw materials (both direct and indirect) Direct labor cost $400,000 $60,000 Inventories: Raw materials, beginning. Raw materials, ending Work in process, beginning Work in process, ending $20,000 $30,000 $40,000 $70,000 The company uses a predetermined overhead rate of $25 per machine-hour to apply overhead cost to jobs. A total of 19,400 machine-hours were used during the year. Required: 1. Compute the amount of underapplied or overapplied overhead cost for the year 2. Prepare a schedule of cost of goods manufactured for the year
Answer and Explanation:
The computation of the amount of underapplied or overapplied overhead cost is shown below:-
Overapplied overhead cost = Actual Manufacturing overhead costs - Manufacturing overhead applied
= $473,000 - (19,400 × $25)
= $473,000 - $485,000
= $12,000
2. The Preparation of cost of goods manufactured for the year is shown below:-
Chang Company
Cost of goods manufactured
Direct materials:
Raw materials inventory, beginning $20,000
Add: Purchases of raw materials $400,000
Raw materials available for use $420,000
Less: Raw materials inventory, ending $30,000
Raw materials used in production $390,000
Less: Indirect materials $15,000 $375,000
Direct labor $60,000
Manufacturing overhead cost
applied to work in process $485,000
Total manufacturing costs $920,000
Add: Work in process inventory, beginning $40,000
Less: Work in process inventory, ending $70,000
Cost of goods manufactured $890,000
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows:
Raw materials $ 40,000
Work in process $ 18,000
Finished goods $ 35,000
The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company’s predetermined overhead rate of $16.25 per direct labor-hour was based on a cost formula that estimated $650,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year:
a. Raw materials were purchased on account, $510,000
b. Raw materials use in production, $480000. All of of the raw materials were used as direct materials.
c. The following costs were accrued for employee services: direct labor, $600,000; indirect labor, $150,000; selling and administrative salaries, $240,000.
d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $367,000
e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $500,000.
f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.
g. Jobs costing $1,680,000 to manufacture according to their job cost sheets were completed during the year.
h. Jobs were sold on account to customers during the year for a total of $2,800,000. The jobs cost $1,690,000 to manufacture according to their job cost sheets.
Required:
1. What is the journal entry to record the labor costs incurred during the year?
2. What is the total amount of manufacturing overhead applied to production during the year?
3. What is the total manufacturing cost added to Work in Process during the year?
4. What is the journal entry to record the transfer of completed jobs that is referred to in item g above?
5. What is the ending balance in Work in Process?
6. Is manufacturing overhead underapplied or overapplied for the year? By how much?
7. What is the ending balance in Finished Goods?
8. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year?
9. What is the gross margin for the year?
10. What is the net operating income for the year?
Answer:
1. Dr Salaries and Administrative salaries 240,000
Dr Manufacturing Overhead 150,000
Dr Work in process 600,000
Cr Wages Payable 990,000
2. $666,250
3. $1,746,250
4. Dr Finished goods 1,680,000
Cr Work in Process 1,680,000
5. $84,250
6. $16,250
7. $25,000
8. $1,673,750
9. $1,126,250
10. $519,250
Explanation:
1. Preparation of the journal entry to record the labor costs incurred
Dr Salaries and Administrative salaries 240,000
Dr Manufacturing Overhead 150,000
Dr Work in process 600,000
Cr Wages Payable 990,000
(To record labor cost incurred)
2. Preparation of the total amount of manufacturing overhead applied to production
Manufacturing overhead applied= 41,000 hours * $16.25
Manufacturing overhead applied= $666,250
3. Preparation of the total manufacturing cost added to Work in Process
Raw Materials $480,000
Direct Labor 600,000
Manufacturing Overhead 666,250
Cost added to WIP $1,746,250
4. Preparation of the journal entry to record the transfer of completed jobs
Dr Finished goods 1,680,000
Cr Work in Process 1,680,000
(To record the transfer of completed jobs)
5. Calculation for the ending balance in Work in Process:
Ending balance in Work in Process
Beginning Balance $18,000
b $480,000
f $666,250
c $600,000 $1,680,000 g
Ending Balance $84,250
6. Calculation for Overapplied manufacturing overhead
Overapplied manufacturing overhead= ($666,250-$650,000)
Overapplied manufacturing overhead= $16,250
Based on the above calculation the manufacturing overhead is overapplied for the year By the amount of $16,250
7. Calculation for the ending balance in Finished Goods
Ending balance in Finished goods
Dr Beginning balance $35,000
Dr (g) 1,680,000
Cr $1,690,000 (h)
Dr Ending balance $25,000
8. Calculation for the adjusted cost of goods sold for the year
Cost of goods sold $1,690,000
Less:Manufacturing overhead $16,250
The cost of goods sold for the year $1,673,750
9. Calculation for the gross margin for the year
Sales $2,800,000
Less:Cost Of Goods Sold ($1,673,750)
Gross Profit $1,126,250
10. Calculation for the net operating income for the year
Gross Profit $1,126,250
Less:Selling and Administrative Salaries $240,000
Less: Selling and Administrative Expenses $367,000
Net Operating Income $519,250
The answers for the various sub-parts of the question are:
1. The journal entry has been attached below.
2. The total amount of manufacturing overhead applied to production during the year is $666,250
3. The total manufacturing cost added to Work in Process during the year is $1,746,250
4. The journal entry has been attached below.
5. The ending balance in Work in Process is $84,250
6. The manufacturing overhead for the year is $16,250
7. The ending balance in Finished Goods is $25,000
8. The adjusted cost of goods sold for the year is $1,673,750
9. The gross margin of the year is $1,126,250
10. The net operating for the year is $519,250
2. The total amount of manufacturing overhead applied to production:
Manufacturing overhead applied= [tex]41,000\: hours \times \$16.25[/tex]
Manufacturing overhead applied= $666,250
3 The total manufacturing cost added to Work in Process:
Raw Materials= $480,000
Direct Labor =600,000
Manufacturing Overhead =666,250
Cost added to WIP =$1,746,250
5. The ending balance in Work in Process:
Ending balance in Work in Process
Beginning Balance =$18,000
b. $480,000
f. $666,250
c. $600,000 $1,680,000 g
Ending Balance =$84,250
6. Overapplied manufacturing overhead:
Overapplied manufacturing overhead= ($666,250-$650,000)
Overapplied manufacturing overhead= $16,250
The manufacturing overhead is overapplied for the year By the amount of $16,250
7. The ending balance in Finished Goods:
Ending balance in Finished goods
Dr. Beginning balance $35,000
Dr (g) 1,680,000
Cr $1,690,000 (h)
Dr Ending balance $25,000
8. The adjusted cost of goods sold for the year:
Cost of goods sold $1,690,000
Less: Manufacturing overhead $16,250
The cost of goods sold for the year was $1,673,750
9. The gross margin for the year:
Sales $2,800,000
Less: Cost Of Goods Sold ($1,673,750)
Gross Profit $1,126,250
10. The net operating income for the year:
Gross Profit $1,126,250
Less: Selling and Administrative Salaries $240,000
Less: Selling and Administrative Expenses $367,000
Net Operating Income $519,250
To know more about the answers to the various sub-parts of the questions, refer to the link below:
https://brainly.com/question/14825752
Peartree Inc. provides the following data:
2015 2014
Cash $47,000 $25,000
Accounts Receivable, Net 99,000 62,000
Merchandise Inventory 79,000 50,000
Property, Plant, and
Equipment, Net 181,000 120,000
Total assets $406,000 $257,000
Additional information:
Net sales $530,000
Cost of Goods Sold 150,000
Interest expense 24,000
Net income 181,000
Calculate the return on total assets for the year 2015.
A. 62.03%.B. 45.79%.C. 50.74%.D. 71.98%.
Answer: 61.84%
Explanation:
The Return on Assets is a ratio that measures how effectively assets are being utilized to earn revenue.
The formula is;
Return on total Asset = Operating Income /Average Total assets
Operating Income = Net Income + Interest expense = 181,000 + 24,000 = $205,000
Average Total Assets = (Beginning Assets + Ending Assets) / 2 = (406,000 + 257,000) / 2 = $331,500
Return on Assets = 205,000/331,500 = 61.84%
The options listed are most probably for a variant of this question.
An increase in the market price of men's haircuts, from $ per haircut to $ per haircut, initially causes a local barbershop to have its employees work overtime to increase the number of daily haircuts provided from to . When the $ market price remains unchanged for several weeks and all other things remain equal as well, the barbershop hires additional employees and provides haircuts per day.
Required:
What is the short-run price elasticity of supply?
Answer :
Meaning & formula of short run price elasticity of supply, its numerical example as per given case
Explanation:
Short Run Price Elasticity of Supply denotes the proportionate change in quantity supplied due change in price. Price & quantity supplied change in same directions, as per law of supply.
In given case, increase in price of haircut increases the quantity supplied of the service of haircut, by more per labour service rate or more labour.
Short Run price elasticity of supply = percentage change in quantity supply/ percentage change in price =
Eg : If price increases from 5 to 10, & 5 workers' haircut increase from 4 to 6 haircuts for each worker, then total haircuts increase from 4 x 5 = 20 to 6 x 5 = 30
Short Run Price Elasticity of supply = 100/50 = 2
As energy costs continue to rise, power efficiency is increasingly important. Acme Chemical is evaluating 2 different electric motors to drive a mixing motor and needs to perform a present economy study. The motor will produce 75 hp and will be operated 8 hours per day, 365 days for one year (maintenance will be performed on second shift—assume no down time during operation), after which time the motor will have no value. Select the most economical motor. Assume Acme’ s electric power costs $0.16 per kWh. (1 hp = 0.746 kW).
Motor A Motor B
Purchase price $3,200 $5,900
Annual maintenance cost $250 $450
Efficiency 75% 85%
Answer:
The answer is below
Explanation:
For motor A, efficiency = 75%= 0.75 hence:
[tex]Operating\ cost\ of\ motor\ A=\frac{75\ hp}{0.75} *\frac{0.746\ kW}{hp}*\frac{\$0.16}{kWh} *\frac{8\ hr}{day}*\frac{365\ days}{year} \\\\Operating\ cost\ of\ motor\ A=\$34853[/tex]
Total cost for motor A = operating cost + purchase cost = $34853 + $3200
Total cost for motor A = $38053
For motor B, efficiency = 85% = 0.85
[tex]Operating\ cost\ of\ motor\ B=\frac{75\ hp}{0.85} *\frac{0.746\ kW}{hp}*\frac{\$0.16}{kWh} *\frac{8\ hr}{day}*\frac{365\ days}{year} \\\\Operating\ cost\ of\ motor\ B=\$30753[/tex]
Total cost for motor B = operating cost + purchase cost = $30753 + $5900
Total cost for motor B = $36653
Therefore motor B is more economical since it has a lesser total cost
As the manager of a company, you are concerned that not all customer orders are being shipped. To test whether all orders for the year have been shipped, you would:__________.
A. Review all customer order and make sure that each has a related bill of lading
B. Review all customer order and make sure that each has a related sales invoice
C. Review all bills of lading and make sure that each has a related sales invoice
D. Review all sales invoice to make sure that they have been posted in the related journal
E. Review all customer orders to make sure that each has been posted in the related journal
Answer:
A. Review all customer order and make sure that each has a related bill of lading
Explanation:
A manager of a company through the managerial role in an organization uses interpersonal skills, decision making and others to ensure that the goal and objectives of the organization are met. A manager plan, organize and control. And he is usually oversee section or department in an organization.it should be noted that the manager must make sure customers orders are been delivered by reviewing of customer orders.
In the case whereby the manager is informed that not all customer orders are being shipped. For him/her to test whether all orders for the year have been shipped, he would review all customer order and make sure that each has a related bill of lading.
The gain on the disposal of equipment is recognized when: Multiple Choice The book value of the equipment is greater than the value received. The book value of the equipment is less than the value received. A salvage value exists. A gain should not be recognized on the disposal of an asset.
Answer:
The correct option:The book value of the equipment is less than the value received
Explanation:
The gain on the disposal of an equipment will be recognized when the book value of the equipment which is the amount in which the equipment was bought is LESS or lower than the value received. Example if the book value of an equipment before disposal is $150,000 in which the equipment was later dispose off at the value of $200,000 which means that the amount of $200,000 will be the value or the amount that will be recognized because the book value amount of $150,000 is less than the value received which is $200,000 making us to have a gain of $50,000 on the Equipment which is calculated as:
Gain on disposal= Book value -Value received
Gain on disposal =$150,000-$200,000
Gain on disposal =$50,000 will be recognized
Larned Corporation recorded the following transactions for the just completed month.
a. $80,000 in raw materials were purchased on account.
b. $71,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials.
c. Total labor wages of $112,000 were paid in cash. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor.
d. Depreciation of $175,000 was incurred on factory equipment.
Required:
Record the above transactions in journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. $80,000 in raw materials were purchased on account.
2. $71,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $112,000 were paid in cash. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor.
4. Depreciation of $175,000 was incurred on factory equipment $80,000 in raw materials were purchaased on account.
Answer:
1. Dr Raw materials $80,000
Cr Account payable $80,000
2. Dr Work-in-Process $62,000
Dr Manufacturing overhead $9,000
Cr Raw materials $71,000
3. Dr Work-in-Process $101,000
Dr Manufacturing overhead $11,000
Cr Cash $112,000
4. Dr Manufacturing overhead $175,000
Cr Accumulated depreciation $175,000
Explanation:
Preparation of Journal entries
1. Based on the information given we were told that the amount of$80,000 in raw materials were been purchased on account which means that the Journal entry will be :
Dr Raw materials $80,000
Cr Account payable $80,000
(Raw materials purchased on account)
2. Based on the information given we were told that the amount of $71,000 in raw materials were been used in production in which the amount of $62,000 was for used for direct materials while the remaining was for indirect materials which means that the Journal entry will be:
Dr Work-in-Process $62,000
Dr Manufacturing overhead $9,000
(71,000-62,000)
Cr Raw materials $71,000
(raw material charged to production)
3. Based on the information given we were told that the Total labor wages amount of $112,000 were been paid in cash in which the amount of $101,000 was for direct labor while the remaining was for indirect labor which means that the Journal entry will be :
Dr Work-in-Process $101,000
Dr Manufacturing overhead $11,000
(112,000-101,000)
Cr Cash $112,000
(Wages charged to production)
4. Based on the information given we were told that the Depreciation of the amount of $175,000 was incurred on factory equipment which means that the Journal entry will be :
Dr Manufacturing overhead $175,000
Cr Accumulated depreciation $175,000
(Depreciation charged)
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.15 million. The fixed asset qualifies for 100 percent bonus depreciation. The project is estimated to generate $2.23 million in annual sales, with costs of $1.25 million. The project requires an initial investment in net working capital of $150,000, and the fixed asset will have a market value of $185,000 at the end of the project. Assume that the tax rate is 23 percent and the required return on the project is 14 percent.
What is the project’s NPV?
Answer:
The net present value (NPV) of the project is $2,266,552.
Explanation:
Note: See the attached excel file for the calculation of the NPV of this project.
The following explanation and the formula are employed in the attached excel file.
Net present value (NPV) is calculated by deducting the present value of cash outflows from the present value of inflows of cash over a certain time period.
Also, present value (PV) can be described as the current value of a future sum of money or stream of cash flows given a specific return rate.
The following is the formula for calculating the PV:
PV = FV / (1 + r)^n
Where,
FV = Future value = Total future cash flow for each year ascalculated in the excel file
r = required return rate = 14%
n = Each relevant year
Five hundred small almond growers operate in areas with plentiful rainfall. The marginal cost of producing almonds in these locations is given by MC = .02Q, where Q is the number of crates produced in a growing season. Three hundred almond growers operate in drier areas where costly irrigation is required. The marginal cost of growing almonds in these locations is given by MC = .04Q.
A. What is the individual supply curve for each type of almond grower?
B. "Add up" the individual supply curves to derive the market supply curve.
C. If the market demand for almonds is Qa = 105,000 – 2,500P, what will the equilibrium price of almonds be?
D. How many almonds will each type of almond grower produce at that price?
E. Find producer surplus by each type of grower.
F. Find producer surplus by the entire market.
Answer:
Explanation:
Where Price equals marginal cost ( MC ) , supply will be made .
A ) Supply curve for rainfed area almond growers
P = .02 Q
Q = 50 P
Supply curve for drier area growers
P = .04 Q
Q = 25 P
B ) No of growers of rainfed area = 500
no of growers of dry area = 300
Total supply = Qs = 50 P x 500 + 25 P x 300
= 25000 P + 7500 P = 32500 P
C )
Market demand Qa = 105000 - 2500 P
For equilibrium Qa = Qs
32500 P = 105000 - 2500 P
35000 P = 105000
P = 3
D ) Qs = 32500 x 3 = 97500 .
E ) amount by rainfed growers
= 500 x 50 x 3 = 75000
amount by dry area growers = 300 x 25 x 3 = 22500
Two alternatives are under consideration. The first alternative will cost $100,000, require $20,000 in maintenance and operation costs each year, and a life cycle of 4 years. The second alternative will cost $300,000, require $5,000 in maintenance and operation costs each year and a life of 6 years. Neither option will have a salvage value. In order to compute the present worth or future worth, how many years of each alternative should I use to accurately compare the two alternatives.
Answer:
12 years
Explanation:
Since the life of two alternatives are unequal, for comparison using present or future worth method, we have to take Least Common Multiple(LCM) of the life of the alternatives. Here, the LCM of 4 and 6 = 12 years. Thus, in order to compute the present worth or future worth, 12 years of each alternative I should use to accurately compare the two alternatives.
In 1990, Ivanhoe Company completed the construction of a building at a cost of $800,000 and first occupied it in January 1991. It was estimated that the building would have a useful life of 40 years and a salvage value of $24,000 at the end of that time. Early in 2001, an addition to the building was constructed at a cost of $200,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $8,000.
In 2019, it is determined that the probable life of the building and addition will extend to the end of 2050, or 20 years beyond the original estimate.
Required:
a. Using the straight-line method, compute the annual depreciation that would have been charged from 1991 through 2000:
b. Compute the annual depreciation that would have been charged from 2001 through 2018.
c. Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2019.
Answer:
(a) 19,400 dep expense for building 1991-2000 period
(b) 25,800 dep expense for building 2001-2018 period
(c) no entry required as this additional information arises during this year and wasn't available in the previous year. It wasn't a lack of sufficient information or accoutning mistake that produced.
Explanation:
(a)
cost - salvage value / useful life = depreication per year
(800,000 - 24,000) / 40 = depreciation expense per year
dep expense 19,400
(b)
building book value:
cost - accumulated depreciation
800,000 - 19,400 x 10 years = 606,000
addtional construction 200,000
total value 806,000
salvage value: 24,000 + 8,000= 38,000
useful life 30 years
deprecation expense betwene 2001 and 2018 related to building
(806,000 - 32,000 ) / 30 years = 25,800
Your company is estimated to make dividends payments of $2.2 next year, $3.8 the year after, and $4.8 in the year after that. The dividends will then grow at a constant rate of 6% per year. If the discount rate is 13% then what is the current stock price
Answer: $58.62
Explanation:
Current stock price = Present value of dividends + Present value of stock with constant dividend
Present value of stock with constant dividend = (Dividend in year 3 * (1 + Growth rate)) / (Discount rate - Growth rate)
= (4.8 * (1 + 6%)) / (13% - 6%)
= $72.6857142857
Current Stock Price = (2.2 / (1 + 13%)) +(3.8 / (1 + 13%)^2) + (4.8 / (1 + 13%)^3) + (72.6857142857/(1 + 13%) ^ 3)
= $58.62
Assume that Atlas Sporting Goods Inc. has $1,040,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn a return of 14 percent, but with a high-liquidity plan the return will be 11 percent. If the firm goes with a short-term financing plan, the financing costs on the $1,040,000 will be 8 percent, and with a long-term financing plan the financing costs on the $1,040,000 will be 9 percent.
a. Compute the anticipated return after financing costs with the most aggressive asset-financing mix.
Anticipated return $
b. Compute the anticipated return after financing costs with the most conservative asset-financing mix.
Anticipated return $
c. Compute the anticipated return after financing costs with the two moderate approaches to the asset-financing mix.
Anticipated Return
Low liquidity $
High liquidity $
Answer:
A. Anticipated return= $62,400
B. Anticipated return= $20,800
C. Low liquidity Anticipated return=$52,000
High liquidity Anticipated return=$31,200
Explanation:
a. Computation for the anticipated return after financing costs with the most aggressive asset-financing mix.
Anticipated return=($1,040,000*14%)-($1,040,000*8%)
Anticipated return= $145,600-$83,200
Anticipated return= $62,400
b. Computation for the anticipated return after financing costs with the most conservative asset-financing mix.
Anticipated return=($1,040,000*11%)-($1,040,000*9%)
Anticipated return= $114,400-$93,600
Anticipated return= $20,800
c. Computation for the anticipated return after financing costs with the two moderate approaches to the asset-financing mix.
Anticipated Return
Low liquidity =($1,040,000*14%)-($1,040,000*9%)
Low liquidity =$145,600-$93,600
Low liquidity =$52,000
High liquidity =($1,040,000*11%)-($1,040,000*8%)
High liquidity =$114,400-$83,200
High liquidity =$31,200
Trade Theories, a Historical Approach
Read the overview below and complete the activities that follow.
Free trade refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country, or what they can produce and sell to another country. The economic arguments surrounding the benefits and costs of free trade in goods and services are not abstract academic ones. International trade theory has shaped the economic policy of many nations for the past 50 years.
The textbook reviews six main trade theories: Adam Smith's theory of absolute advantage; David Ricardo's theory of comparative advantage; the Heckscher-Ohlin theory and the product life-cycle theory, which extend various aspects of Ricardo's theory; the new trade theory explaining the benefits from trade without national differences in resource endowments or technology; and Michael Porter's theory of national competitive advantage that draws attention to an international success in a particular industry. All these theories identify the specific benefits of international trade, help to explain the patterns of international trade, and government trade.
Match the correct theory with its corresponding description and time period in the evolution of international trade theory.1. Established in 1776, Adam Smith stated in this theory that countries should specialize in the production of goods and services for which they can produce most efficiently and then trade these for goods produced by other countries.A. Absolute advantage theory.B. New trade theory.C. Heckscher-Ohlin theory.D. National competitive advantage theory.E. Comparative advantage theory.F. Product life-cycle theory2. In 1817, David Ricardo stated that it makes sense for a country to specialize in the production of those goods that it produces most efficiently and to buy the goods that it produces less efficiently from other countries.A. Absolute advantage theory.B. New trade theory.C. Heckscher-Ohlin theory.D. National competitive advantage theory.E. Comparative advantage theory.F. Product life-cycle theory3. In the early 1900s, this theory predicts that countries will export those goods that make intensive use of factors that are locally abundant and import goods that make intensive use of factors that are locally scarce.A. Absolute advantage theory.
B. New trade theory.
C. Heckscher-Ohlin theory.
D. National competitive advantage theory.
E. Comparative advantage theory.
F. Product life-cycle theory4. In the mid-1960s, a theory initially proposed by Raymond Vernon, points out that where a new product is introduced is important. Over time, cost considerations start playing a greater role in the competitive process.A. Absolute advantage theory.B. New trade theory.C. Heckscher-Ohlin theory.D. National competitive advantage theory.E. Comparative advantage theory.F. Product life-cycle theory5. Emerging in the 1970s, this theory states that through its impact on economies of scale, trade can increase the variety of goods available to consumers while decreasing the average cost of those goods.A. Absolute advantage theory.B. New trade theory.C. Heckscher-Ohlin theory.D. National competitive advantage theory.E. Comparative advantage theory.F. Product life-cycle theory6. The most current theory was developed by Michael Porter and states that four broad attributes of a nation shape the environment in which local firms compete, and these attributes promote or impede the creation of competitive advantage.A. Absolute advantage theory.B. New trade theory.C. Heckscher-Ohlin theory.D. National competitive advantage theory.E. Comparative advantage theory.F. Product life-cycle theory
Answer:
Trade Theories, a Historical Approach
Matching correct theory with its corresponding description and time period in the evolution of international trade theory.
1. Established in 1776, Adam Smith stated in this theory that countries should specialize in the production of goods and services for which they can produce most efficiently and then trade these for goods produced by other countries.
A. Absolute advantage theory.
2. In 1817, David Ricardo stated that it makes sense for a country to specialize in the production of those goods that it produces most efficiently and to buy the goods that it produces less efficiently from other countries.
E. Comparative advantage theory.
3. 3. In the early 1900s, this theory predicts that countries will export those goods that make intensive use of factors that are locally abundant and import goods that make intensive use of factors that are locally scarce.
C. Heckscher-Ohlin theory.
4. In the mid-1960s, a theory initially proposed by Raymond Vernon, points out that where a new product is introduced is important. Over time, cost considerations start playing a greater role in the competitive process.
F. Product life-cycle theory.
5. Emerging in the 1970s, this theory states that through its impact on economies of scale, trade can increase the variety of goods available to consumers while decreasing the average cost of those goods.
B. New trade theory.
6. The most current theory was developed by Michael Porter and states that four broad attributes of a nation shape the environment in which local firms compete, and these attributes promote or impede the creation of competitive advantage.
D. National competitive advantage theory.
Explanation:
These various trade theories show where the world trade is coming from and where it is now. Indeed, it has come from a long place. Adam Smith commenced discussions on economic theories by first discussing the wealth of the nation. Currently, international trade is deviled by many national intrigues hindering free trade, including the threats posed by growing Chinese hegemony and national fears triggered by that country's unconventional trade practices.
Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools:
Activity Cost Pool Estimated Overhead Cost Expected Activity
Labor-related $31,200 5,000 direct labor-hours
Machine-related $1,250 5,000 machine-hours
Machine setups $36,000 1,200 setups
Production orders $18,000 500 orders
Product testing $22,000 1,100 tests
Packaging $42,900 3,900 packages
General factory $56,000 5,000 direct labor-hours
Required:
a. Compute the activity rate for each activity cost pool.
b. Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours.
Answer and Explanation:
a. The computation of activity rate for each activity cost pool is shown below:-
Activity cost Estimated Expected Activity
pool overhead Activity Rate
cost
a b a ÷ b
Labor-related $31,200 5,000 $6.24
Machine-related $1,250 5,000 $0.25
Machine setups $36,000 1,200 $30
Production orders $18,000 500 $36
Product testing $22,000 1,100 $20
Packaging $42,900 3,900 $11
General factory $56,000 5,000 $11.2
Total $207,350
b. The computation of company's predetermined overhead rate is shown below:-
Company's predetermined overhead rate = Total estimated overhead cost ÷ Total expected direct labor hours
= $207,350 ÷ 5,000
= $41.47
The company's adjusted trial balance includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Accumulated Depreciation, $25,000; Accounts Payable, $10,000; Retained earnings, $59,000; Dividends, $2,000; Fees Earned, $56,000; Depreciation Expense, $25,000; and Salaries Expense, $23,000. All accounts have normal balances.
Required:
Prepare the first closing entry.
No Date General Journal Debit Credit
1 Dec 31 No Transaction recorded
Answer:
Dr Fees Earned $56,000
Cr Income summary $56,000
Explanation:
Preparation of the first closing entry.
Based on the information given we were told that Fees Earned has the amount of $56,000 which means that Fees earned of the amount of $56,000 will be the first closing entry to close revenue account , and we are going to record the first Closing entry by Debiting Fees Earned with the amount of $56,000 and to Crediting Income summary with the same amount of $56,000
31 Dec
Dr Fees Earned $56,000
Cr Income summary $56,000
(To close revenue account)
What is Your Fav song and Singer??
Aka:My Song is 10,000 hours and singer is Taylor swift but she dont sing that song!
Im a county person and a Farm girl im in 6th grade but me and my mom and dad moved into the city its not fun because i dont get to have horses and stuff.
Answer:
I ve none for now
Explanation:
TNX for the points!
And wow i can imagine leaving horses and stuff
i wish i had a horse so bad
maybe int the future lol
The reason that we want to develop a confidence interval for the population mean is because:_____.
1. the sample mean is an efficient estimate of the population mean.
2. the chance that the sample mean is equal to the population mean is zero.
3. the sampling distribution of the sample mean is normally distributed.
4. the standard error of the sample mean is an efficient estimate of the population error.
5. the value of the sample mean varies from sample to sample.
Answer:
3. the sampling distribution of the sample mean is normally distributed.
5. the value of the sample mean varies from sample to sample.
Explanation:
We develop confidence interval for population mean because
a. the sampling distribution of the sampling mean is normally distributed. For us to do this we must first ensure that the sample mean is large enough
B. The value of the sample mean is not the same for all samples it varies from sample to sample. Therefore it it is better that an internal is given with the probability that the parameter falls into it.
Suppose 60 students are candidates for four scholarships – one for $500, one for $750, one for $1000 and the fourth for $1200:
a)How many way can four students get selected from the 60 candidates?
b)If you, your brother, and two sisters are four of the 60 candidates, what is the probability all four of you will get the four scholarships?
Answer:
yes
Explanation:
During 2019, John was the chief executive officer and a shareholder of Maze, Inc. He owned 60% of the outstanding stock of Maze. In 2016, John and Maze, as co-borrowers, obtained a $100,000 loan from United National Bank. This loan was secured by John’s personal residence. Although Maze was listed as a co-borrower, John repaid the loan in full in 2019. On Maze’s Form 1120 tax returns, no loans from shareholders were reported. Discuss whether John is entitled to a bad debt deduction for the amount of the payment on the loan.
Answer:
Throughout the clarification segment elsewhere here, the definition of the concern is outlined.
Explanation:
Yes, Mr. John becomes qualified to something like a bad debt benefit for the balance including its interest made on either the loan.Although Maze is obligated to declare the same here in his tax filing throughout respect including its loan lent over him from the United National Bank mostly as professional and non-borrower.Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $17,000 bill from her accountant for consulting services related to her small business. Reese can pay the $17,000 bill anytime before January 30 of next year without penalty. Assume Reese’s marginal tax rate is 32% this year and will be 37% next year, and that she can earn an after-tax rate of return of 11% on her investments.
A. What is the after-tax cost if she pays the $31,000 bill in December?
B. What is the after-tax cost if she pays the $31,000 bill in January?
Answer:
$11,560
$5666.661
Explanation:
Given the following :
Bill received from accountant = $17,000
This year's marginal tax rate = 32%
Next year's marginal tax rate = 37%
After tax return on investment = 11%
After tax cost of bill is paid in December :
Billed amount * this year's tax rate
$17,000 * ( 1 - 0.32)
= $17,000 * 0.68
= $11,560
B) After tax cost of bill was paid in January:
Billed amount * next year's tax rate * PV factor
From the present value factor table;
PV factor (1 years, 11%) = 0.9009
Hence,
$17,000 * 0.37 * 0.9009 = $5666.661
Bill was severely injured when he was hit by a car while jogging. He spent one month in the hospital and missed three months of work because of the injuries. Total medical costs were $54,000. Bill received the following payments as a result of the accident:
His employer-provided accident insurance reimbursed him for $43,200 of the medical costs and provided him with $3,800 in sick pay while he was out of work.
A private medical insurance policy purchased by Bill paid him $10,800 for medical costs.
His employer gave Bill $7,200 to help him get through his re-habilitation period.
A separate disability policy that Bill had purchased paid him $3,800.
How much gross income does Bill have as a result of the payments received for the accident?
Answer:
$11,000
Explanation:
In order to calculate gross income for the payments received as a result of the accident, we will consider the amount provided by Bill's employer as a result of being out of work and add it with money provided for rehabilitation process.
In this case, the sick during out of work is $3,800 and amount for rehabilitation period help is $7,200. Hence, the gross income is $11,000.
Note: The medical reimbursement are not taxable and are therefore not calculated as an individuals gross income.
Five years ago, Diane secured a bank loan of $310,000 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 30 years, and the interest rate was 8%/year compounded monthly on the unpaid balance. Because the interest rate for a conventional 30-year home mortgage has now dropped to 6.5%/year compounded monthly, Diane is thinking of refinancing her property.
Required:
a. What is Diane's current monthly mortgage payment?
b. What is Diane's current outstanding principal?
c. If Diane decides to refinance her property by securing a 30-year home mortgage loan in the amount of the current outstanding principal at the prevailing interest rate of 6.5%/year compounded monthly, what will be her monthly mortgage payment?
d. How much less will Diane's monthly mortgage payment be if she refinances?
Answer:
a. Mortgage amount = Present value of annuity of monthly payment
Present Value of annuity = P*PVAF(rate,time)
where P = monthly payment=?
t = time in months=30*12=360 months
r = interest rate = r= 0.08/12=0.006667
Calculation of PVAF(0.6667%,360)
PVAF(rate,time) = 1-(1+r)^-n]/r
PVAF(0.6667%,360) = [1-(1+0.006667)^-360]/0.006667
= [1-(1.006667)^-360]/0.006667
= [1-0.0.908568]/0.006667
= 0.908568/0.006667
= 136.2784
$310,000 = P*136.2784
$310000/136.2784 = P
$2,274.76 = P(monthly payment)
Monthly payment on existing loan = $2,274.76
b. Outstanding principle = Present value annuity of monthly payment for 25 years(300 months)
= $2274.76*PVAF(0.6667%,300months)
= $2274.76*129.5601
= $ 294,718.13
PVAF (0.6667%,300) can be calculated as above has been calculated
c) If Diane refinances, New monthly mortgage for new 30 year(360 month) loan on outstanding balance at 6.5% per year or 6.5%/12 =0.5417%
$294,718.13 = P*PVAF(0.5147%,360)
$294,718.13 = P*163.6826
$294718.13/163.6826 = P
$1,800.55 = P(monthly payment)
The new monthly payment will be $1800.55
d) Difference in monthly payment = Old monthly payment-new monthly payment
= $2274.76 - $1800.55
= $474.21
However the new mortgage is for 30 years from today.
George runs a small retail business. He sells brands that another business manufactures. George’s retail store uses the logos and trademarks of that business to attract customers. George thus acts as a dealer on behalf of the manufacturing business. Which type of franchise model does George’s retail business follow? A. trademark franchise B. product distribution franchise C. manufacturing franchise D. management franchise E. business format franchise
Answer:
trademark franchise
Answer:
business format franchise
Explanation:
Champion Company purchased and installed carpet in its new general offices on March 31 for a total cost of $18,000. The carpet is estimated to have a 15-year useful life and no residual value.
Required:
a. Prepare the journal entries necessary for recording the purchase of the new carpet.
b. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet assuming that Champion Company uses the straight-line method.
Answer and Explanation:
The journal entries are shown below:
a. Carpet $18,000
To Cash $18,000
(Being the cash paid is recorded)
b. Deprecation $900
To Accumulated Depreciation $900
(Being Depreciation expense recorded)
The computation is shown below:
= $18,000 ÷ 5 years × 9 months ÷ 12 months
= $900
Prepare financial statements from an adjusted trial balance (LO3-5) [The following information applies to the questions displayed below.]
The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.
Accounts Debit Credit
Cash $ 11,200
Accounts Receivable 142,000
Prepaid Rent 5,200
Supplies 26,000
Equipment 320,000
Accumulated Depreciation $ 127,000
Accounts Payable 11,200
Salaries Payable 10,200
Interest Payable 4,200
Notes Payable (due in two years) 32,000
Common Stock 220,000
Retained Earnings 52,000
Service Revenue 420,000
Salaries Expense 320,000
Rent Expense 16,000
Depreciation Expense 32,000
Interest Expense 4,200
Totals 847,800 876,600
Required:
Prepare an income statement for the year ended December 31, 2021.
FIGHTIN' BLUE HENS CORPORATION
Income Statement
For the Year Ended December 31, 2021
Expenses:
Total expenses
Answer:
Fightin' Blue Hens Corporation
Income Statement
For the year ended December 31, 2021
Service Revenue $420,000
Operating expenses:
Salaries Expense $320,000 Rent Expense $16,000 Depreciation Expense $32,000 ($368,000)Operating income $52,000
Other revenues and expenses:
Interest Expense $4,200 ($4,200)Net income before taxes $47,800
*The totals of the trial balance sheet were added incorrectly, they both debit and credit total $876,600.
Alan works as a salesperson for an insurance company. Recently, he sold an insurance policy to a new customer. During their conversation, Alan made a list of all the benefits that the policy would offer the customer. He politely asked the customer to list the various drawbacks of buying the policy. In the end, Alan was able to close the sale because the benefits greatly outnumbered the drawbacks. Which closing technique did Alan use in this scenario?
A.
assumptive close
B.
Ben Franklin close
C.
porcupine close
D.
Sharp Angle close
Answer:B) Ben Franklin close
Explanation:
Answer:
Correct is B.)
Explanation:
correct on edmentum
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:_______. Total machine-hours 30,300 Total fixed manufacturing overhead cost $575,700 Variable manufacturing overhead per machine-hour $ 4.00 Recently, Job T687 was completed with the following characteristics:_______. Number of units in the job 10 Total machine-hours 30 Direct materials $ 730 Direct labor cost $1,460 If the company marks up its unit product costs by 40% then the selling price for a unit in Job T687 is closest to:_______.
Answer: $316.80
Explanation:
First the total cost for the product = Direct material + Direct labor + Total overhead
Total Overhead;
Estimated Variable Overhead = 4 * 30,300 = $121,200
Total Overhead = Estimated Variable Overhead + Total fixed manufacturing overhead cost
= 121,200 + 575,700
= $696,900
Predetermined Overhead rate = Total Overhead/ Machine hours = 696,900/30,300
= $23 per hour
Overhead for Job T687 = 23 * 30 = $690
Total cost = 730 + 1,460 + 690
= $2,880
Sales price with 40% markup = 2,880 * (1 + 40%)
= $3,168
Selling price per unit in Job T687;
= 3,168/10
= $316.80