Explanation:
What happens first when the demand for a fad peaks and falls? he quantity supplied goes down, and the price goes up.If the demand for a fad peaks falls, the quantity will likely go down as the demand of the product What happens first when the demand for a fad peaks and falls? he quantity supplied goes down, and the price goes up.got less making the quantity to be also less, though because of it, the price are likely to go up as their products are only few in quantity. The correct answer is the sec
Answer:
the quantity supplied goes down, and the price goes up
Explanation:
Which of the following is NOT an example of economic GOODS?
Capital Goods
Traditional Goods
Consumer Goods
Durable Goods
Answer:
I nk first one d,.............
Who collects income tax that is payable to the federal government?
Income tax that is payable to the federal government is collected by the
.
The income tax that is payable to the federal government is collected by the Internal Revenue Service.
What is Tax?When the government of a nation collects money from its residents as a tax, it is used to fund various aspects of the nation's growth, such as the construction of hospitals, roads, temples and transit systems,
Taxes on individual income, payroll, and corporate income are the three main ways that the federal government receives its revenue. Individuals' wages and salaries as well as investment and other income are subject to income taxes.
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Do you think ethics is become more or less important in business? Explain it. What is the difference between Ethical Relativism and Ethical absolutism. Explain it by your own words with example
hics has always been an important aspect of business, but in recent years, its significance has been further highlighted by a growing number of high-profile corporate scandals and increased public scrutiny of corporate behavior. As such, many businesses and organizations are placing a greater emphasis on ethical practices and decision-making.
One of the key reasons for this increased emphasis on ethics is the recognition that ethical behavior is not only the right thing to do, but it also has a positive impact on a company's bottom line. Ethical practices can lead to improved employee morale and productivity, increased customer loyalty, and a better reputation in the community. Additionally, businesses that prioritize ethics are less likely to face legal or financial penalties for unethical behavior.
On the other hand, ethical absolutism and ethical relativism are two theories that help to explain the perspective of ethics.
Ethical absolutism is the belief that there are certain moral rules that are universally and always right or wrong, regardless of the situation or the person's culture. For example, an ethical absolutist would say that it is always wrong to lie, cheat, or steal. This theory holds that there is an objective, universal standard of morality that applies to everyone.
On the other hand, Ethical relativism holds that morality is relative to the individual or the culture, and what is considered right or wrong can vary from person to person or culture to culture. The ethical relativist would argue that lying, cheating, or stealing could be morally acceptable in certain situations or cultures. For example, a relativist would say that something that is considered right in one culture may not be right in another culture.
In conclusion, businesses and organizations are increasingly recognizing the importance of ethics, both from a moral and a business perspective. Ethical absolutism and ethical relativism are theories that help to explain different perspectives on ethics, with the former holding that there are objective moral standards that apply to everyone and the latter believing that morality is relative to individual or culture.
Variable manufacturing cost $ 15 Fixed manufacturing cost 12 Total manufacturing cost $ 27 The part can be purchased from an outside supplier at $20 per unit. If the part is purchased from the outside supplier, two thirds of the total fixed costs incurred in producing the part can be avoided. The annual financial advantage (disadvantage) for the company as a result of buying the part from the outside supplier would be:
Answer:
there is a financial advantage of $3,000 increase
Explanation:
The computation of the annual financial advantage (disadvantage) for the company is shown below;
Particulars Making Purchasing
Variable cost $15 $0
Add; fixed cost $12 $4
($12 × 2 ÷ 3)
Add: purchasing cost $0 $20
Total cost per unit $27 $24
Total cost for 1000 units $27,000 $24,0000
SO here we can see that there is a financial advantage of $3,000 increase
= $27,000 - $24,00
= $3,000
You are International Business Manager at a UK based company. Your company has identified USA and Europe as potential markets and wish to expand asap and plans a full-scale expansion. You are requested to analyse both projects and advise.
In considering such large project, you must work out the risk of each project, cost of capital and NPV. Allocate discount rate for each project according to current international business climate and justify why you allocated the discount rate for each region. Discuss how you aim to manage international risks.
Projected cash flows in respective currencies:
Year Net Cash Flow – USA USD Net Cash Flow - Europe EUR
0 -20 million -20 million
1 2 million 2 million
2 4 million 3 million
3 5 million 4 million
4 6 million 8 million
5 8 million 8 million
Instructions:
a. Briefly discuss viability of both projects in today’s global business context. Based on your discussion allocate and justify discount rate for both projects. (30 Marks)
b. How much investment (GBP) is needed for each project and what is the NPV of each project? Use spot and forward exchange rates to discuss. (30 Marks)
c. Considering current world economic climate, the future exchange rates are uncertain. How would you analyse/anticipate the change in exchange rates? Write a brief proposal to mitigate impact of possible exchange rate fluctuations (30 Marks)
d. Discuss your calculations and advise which project should be selected. (10 Marks)
Answer:
a. In order to determine the viability of these projects and allocate the appropriate discount rate, it is necessary to consider the current global business context. This includes factors such as economic conditions, political stability, competition, and other risks specific to each region.
Based on this analysis, the USA project may be considered more viable due to its larger market size and generally more stable economic and political environment compared to Europe. However, the European project may offer potential for growth in certain sectors, such as technology or green energy.
In terms of discount rates, it would be appropriate to allocate a higher rate for the European project due to the greater inherent risks associated with expanding into this region. The discount rate for the USA project could be lower, reflecting the lower perceived risk.
b. In order to calculate the amount of investment needed for each project and the corresponding NPV, we will need to convert the projected cash flows into GBP using the current spot exchange rate. For example, if the spot exchange rate for USD is 1.30 GBP and the spot exchange rate for EUR is 1.20 GBP, the investment needed for the USA project would be £20 million and the investment needed for the European project would be £20 million.
Using a discount rate of, say, 10% for the USA project and 15% for the European project, we can then calculate the NPV of each project as follows:
USA project:
NPV = -£20 million + (£2 million / 1.1) + (£4 million / (1.1^2)) + (£5 million / (1.1^3)) + (£6 million / (1.1^4)) + (£8 million / (1.1^5))
= £2.8 million
European project:
NPV = -£20 million + (£2 million / 1.15) + (£3 million / (1.15^2)) + (£4 million / (1.15^3)) + (£8 million / (1.15^4)) + (£8 million / (1.15^5))
= £2.2 million
c. In order to anticipate and mitigate the impact of exchange rate fluctuations on these projects, it may be advisable to use forward exchange contracts to lock in a specific exchange rate for a future date. This can help to reduce uncertainty and protect against potential losses due to unfavorable movement in the exchange rate.
Additionally, it may be helpful to diversify the currency exposure of the projects by investing in a range of currencies or using currency hedging strategies. This can help to reduce the overall risk associated with exchange rate fluctuations.
d. Based on the calculations above, it appears that the USA project may offer a higher NPV and therefore may be the more attractive option. However, it is important to consider all factors when making this decision, including the specific risks and opportunities associated with each region, as well as the company's overall goals and resources.
why do we have to consider the risks before we invest?
answer:
your investment value might rise or fall because of market conditions, therefore it is always a smart to consider the risks in investing before you invest. if the risk is huge, then you might not want to invest due to the fear of losing your money.
explanation:
in finance, risk refers to the degree of uncertainty and/or potential financial loss inherent in an investment decisionin general, as investment risks rise, investors seek higher returns to compensate themselves for taking such risksevery saving and investment product has different risks and returnsWarshaw Company is preparing the June Budget. The June budget includes the following data: Sales $100,000 Purchases of Merchandise $95,000 Depreciation of office equipment in Accounting Department $2,615 Insurance $11,544 Payroll expenses $5,722 a month plus 2% of sales (for sales and administrative personnel) Administrative office expenses incurred to order purchases are budgeted at 4% of purchases of merchandise only Purchase of equipment $3,537 Research and Development 8% of sales What is total operating expense for June? (hint: not everything listed is an operating expense)
Answer:
$33,681
Explanation:
According to the scenario, computation of the given data are as follows,
Operating Expense for June = Depreciation+ Insurance+Payroll expense+ Admin Expenses +Research and Development expense
Where, Depreciation = $2,615
Insurance expense = $11,544
Payroll expense = $5,722 + ( 2% × $100,000) = $7,722
Admin expense = 4% × $95,000 = $3,800
Research and Development expense = 8% × $100,000 = $8,000
So, Operating Expense for June = $2,615 + $11,544 + $7,722 + $3,800 + $8,000
= $33,681
Which of the following is not a marketing activity?
Designing web advertisements
Analyzing guest satisfaction measurements
Coordinate public relations and publicity
Coordinating market research
Answer:
Designing web advertisements
Explanation:
Designing webs are not for marketers, so there's nothing to design
5. You are the manager of Telecall Inc., a small telemarketing company. Your company pays $10,000 per month for office space. A real estate agent has noticed that you are only using 75 percent of your available space and tells you that Telecall could add $800 per month to its bottom line by renting out the space it does not use. Telecall has been asked to do a new telemarketing campaign for a large credit card company, but this would require it to use the remaining office space. What is the opportunity cost of using the extra office space to handle the credit card company's promotion?
Answer: $800
Explanation:
Even though your company is using only 75% of the space which means that the company is in effect only using 75% of the rental cost of $10,000, the remaining 25% will not count as opportunity cost because the rent of $10,000 is a fixed cost that is paid on ALL the space and so cannot be separated into costs per space.
The relevant opportunity cost is therefore the amount that the company can get if it decides to sub-let this excess space for $800 because this amount is an extra benefit to be lost if the opportunity is not taken.
If Joey joins the military, he can learn different skills that could be useful in his later career.
A.
True
B.
False
Answer:
The answer is A. This statement is true.
QS 22-18C Joint cost allocation LO C3 A company purchases a 10,080-square-foot commercial building for $420,000 and spends an additional $72,000 to divide the space into two separate rental units and prepare it for rent. Unit A, which has the desirable location on the corner and contains 2,880 square feet, will be rented for $1.50 per square foot. Unit B contains 7,200 square feet and will be rented for $0.90 per square foot. How much of the joint cost should be assigned to Unit B using the value basis of allocation
Answer:
$295,200
Explanation:
The computation of the joint cost that should be assigned to unit B is given below
But before that we have to determine the total and weightage
So, the total is
= 2,880 × $1.50 + 7,200 × $0.90
= $4,320 + $6,480
= $10,800
Now the weightage is
= $6,480 ÷ $10,800
= 60%
And, the joint cost is
= $420,000 + $72,000
= $492,000
So, the joint cost assigned to unit B is
= $492,000 × 60%
= $295,200
Jeannine is studying cultures and their respective attitude toward proxemics. What is she most likely to discover?
Question 5 options:
which cultures prefer having people stand close to one another
which cultures prefer to keep business interactions more formal
which cultures prefer to make eye contact when conversing
which cultures prefer all scheduled events to begin and end on time
Which cultures prefer having people stand close to one another attitude toward proxemics she is most likely to discover. Thus option A is correct.
What is culture?The term "culture" is a general one that refers to individual interaction, structures, and norms present in modern populations in addition to people that make up these communities as well as their skills, beliefs, including abilities.
Proxemics is the study of how people use space and how population size affects how they behave, communicate, and interact with others. the field of study that examines the distance that people feel they must maintain within themselves and others. Therefore, option A is the correct option.
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Horton Corporation is a 100 percent owned Canadian subsidiary of Cruller Corporation, a U.S. corporation. During the current year, Horton paid a dividend of C$600,000 to Cruller. The dividend qualifies for the 100 percent dividends received deduction. The dividend was subject to a withholding tax of C$30,000. Assume an exchange rate of C$1 = $1. Cruller reported U.S. source taxable income of $2,000,000 before considering the dividend received from Horton Corporation. Compute the tax consequences to Cruller as a result of this dividend.
A) Taxable income of $2,600,000, net U.S. tax of $516,000, and FTC carryover of $0.
B) Taxable income of $2,600,000, net U.S. tax of $546,000, and FTC carryover of $30,000.
C) Taxable income of $2,000,000, net U.S. tax of $390,000, and FTC carryover of $0.
D) Taxable income of $2,000,000, net U.S. tax of $420,000, and FTC carryover of $0
Answer:
D) Taxable income of $2,000,000, net U.S. tax of $420,000, and FTC carryover of $0
Explanation:
Computation for the tax consequences to Cruller as a result of this dividend
The tax consequences will be Taxable income of the amount of $2,000,000, net U.S. tax of the amount of $420,000 Calculated as ($2,000,000 × 21%) and FTC carryover of $0 reason been that withholding tax won't be creditable based on the fact that the withholding tax was been imposed on a dividend that is eligible for the 100% dividends deduction that was received.
Communication which occurs via small
group discussion would fall under which
category?
A. synchronous
C. horizontal
B. a synchronous
D. vertical
Answer: A. synchronous
Explanation: Communication that occurs via small group discussion would fall under the category of synchronous communication. Synchronous communication refers to a type of communication that occurs in real-time, such as a conversation or a meeting. It involves people interacting with each other at the same time, rather than asynchronously, where people communicate at different times.
Suski Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: Budgeted level of activity 7,400 MHs Actual level of activity 7,500 MHs Standard variable manufacturing overhead rate $5.90 per MH Actual total variable manufacturing overhead $42,750 What was the variable overhead rate variance for the month? Group of answer choices $1,500 Favorable $590 Unfavorable $910 Favorable $1,000 Unfavorable
Answer:
$1,500 Favorable
Explanation:
The computation of the variable overhead rate variance is given below;
We know that
Variable Overhead rate variance = (Standard Rate - Actual rate) ×Actual Quantity
= ($5.90 - ($42,750 ÷ 7,500) × 7500
= ($5.90 - $5.70) × 7500
= $1,500 Favourable
Hence, the variable overhead rate variance is $1,500 favorable
Limitations of direction
Answer:
Explanation: Managament techniques should be adjusted according to specific circumstances.
one techniques maybe good in one situation but maybe not good in other situation.
principles of management are not static in nature.
management is concerned with the human element in an organization.
Many times, margin, instead of retailing price, becomes the firm's decision variable. Suppose we notice Kroger is selling Dove at $0.99 per bar. We also know the manufacturing cost of Dove by its producer, Unilever, is $0.6 per bar, and the manufacturer's margin is 40%. Based on the cost plus pricing formula we discussed in class [ P=C+m%*C], we could figure out Kroger's margin on
Dove is about _______.
a. 18%
b. 25%
c. 38%
d. 65%
Beehive Corporation incurred actual overhead of $201,600 and applied overhead of $210,000. Beehive has supplied the following data relating to its inventories: Jan. 1 Dec. 31 Direct materials $42,000 $56,000 Work-in-process 21,000 28,000 Finished goods 91,000 70,000 If cost of goods manufactured was $721,000, what would cost of goods sold be, assuming under- or overapplied overhead is allocated to inventories and cost of goods sold
Answer:
$713,605
Explanation:
If Actual Overheads > Applied Overhead we say, Overheads have been underapplied and the amount of underapplied overheads is added to the balance in stock and cost of sales.
and
If Applied Overheads > Actual Overhead we say, Overheads have been overapplied and the amount of overapplied overheads is deducted from the balance in stock and cost of sales.
Where :
Actual overhead is $201,600 and Applied overhead is $210,000, the amount of overapplied overhead is $8,400 ($210,000 - $201,600).
The overapplied overheads is allocated to ending balances of Finished Goods, Work In Process and Cost of Sales only and except Direct Materials
Total % Allocation
Work-in-process $28,000 3.41 $286
Finished goods $70,000 8.55 $718
Cost of goods $721,000 88.03 $7,395
Total $819,000 100.00 $8,400
Therefore,
Cost of goods sold = $721,000 - $7,395 = $713,605
Which of the following activities might you consider adding a time buffer to? Activities with scarce resources Activities with severe risks Merge activities that are prone to delays Noncritical activities with very little slack You might consider adding a time buffer to any of these activities.
Answer:
You might consider adding a time buffer to any of these activities.
Explanation:
Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service.
Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.
Furthermore, the main purpose of project management is working toward a common goal.
This ultimately implies that, project managers should ensure adequate attention and time is taken to identify, analyze and manage capital, raw materials, people, system of tasks and other resources, so as to effectively and efficiently achieve a common goal with all project stakeholders.
A time buffer also referred to as slacks or lag can be defined as the additional amount of time added to a project in order to keep it on track and/or flexible.
Generally, in the execution of a project, when a task is delayed it normally affects the start or finishing time of the other tasks (successors) in a project. The amount of time that is permitted for an activity to be delayed without delaying the early start date of any immediately following (succeeding) activities refers to free slack, which is capable of having an adverse effect on entire project.
A project manager might consider adding a time buffer to any of the following activities;
I. Activities with scarce resources.
II. Activities with severe risks.
III. Merge activities that are prone to delays.
IV. Noncritical activities with very little slack.
On April 1, Quality Corporation, a U.S. company, expects to sell merchandise to a French customer in three months, denominating the transaction in euros. On April 1, the spot rate is $1.41 per euro, and Quality enters into a three-month forward contract cash flow hedge to sell 400,000 euros at a rate of $1.36. At the end of three months, the spot rate is $1.37 per euro, and Quality delivers the merchandise, collecting 400,000 euros. What amount will Quality recognize in Sales from these transactions
Answer:
D) $16,000 Discount Expense plus a $20,000 positive Adjustment to Net Income when the merchandise is delivered
Explanation:
Options include "A) $20,000 Discount Expense plus a $12,000 positive Adjustment to Net Income when the merchandise is delivered. B) $20,000 Discount Expense plus a $12,000 negative Adjustment to Net Income when the merchandise is delivered. C) $20,000 Discount Expense plus a $20,000 negative Adjustment to Net Income when the merchandise is delivered. D) $16,000 Discount Expense plus a $20,000 positive Adjustment to Net Income when the merchandise is delivered E) $20,000 Discount Expense plus a $20,000 positive Adjustment to Net Income when the merchandise is delivered."
Discount expense
= ($1.41 - $1.37) * 400,000 euro
= $0.04 * 400,000 euro
= $16,000
Adjustment at Delivery
= ($1.41 - $1.36) * 400,000 euro
= $0.05 * 400,000 euro
= $20,000 (positive)
Norio Manufacturing uses powdered plastics (PPS) to manufacture a high-pressure board used in a digital equipment product, Flex 10. Information concerning its operation in June is as follows: Budgeted units of Flex 10 for June 5,900 Budgeted usage of PPS 53,100pounds Actual number of units of Flex 10 manufactured 4,900 PPS purchased 57,720pounds PPS used 48,000pounds Total actual cost of PPS used$266,880 Direct materials usage variance$28,860unfavorable Assume that Norio recognizes the material purchase-price variance at the point of purchase. The direct materials purchase-price variance (rounded to the nearest dollar) is:
Answer: $106,205
Explanation:
Direct materials purchase-price variance = PPS pounds purchased * (Standard cost per pound - Actual cost per pound)
Standard cost per pound = Direct materials usage variance / [PPS used - (Actual number of units of Flex produced * (Budgeted usage of PPS / Budgeted units for Flex 10))]
= 28,860/ [48,000 - (4,900 * (53,100 / 5,900))]
= $7.40
Actual cost per pound:
= Total actual cost of PPS used / PPS Used
= 266,880 / 48,000
= $5.56
Direct materials purchase-price variance = 57,720 * (7.40 - 5.56)
= $106,205
3. Lily is an accountant at Strawn and Simpson. She has done an excellent job and has received a number of promotions and raises over the years. Lily is diagnosed with cancer and tells Strawn and Simpson that she will need to arrive at work an hour late twice a week for a period of three months when she undergoes medical treatments. She offers to make up the work either by staying later, coming in over the weekend or working at home. Lily is immediately fired. What rights does Lily have against Strawn and Simpson
Answer: Protected by the Family and Medical Leave Act (FM-LA).
Explanation:
The FM-LA protects her from this action by Strawn and Simpson as it states that Lily should be allowed to take leaves for a serious medical condition.
The FM-LA considers cancer a serious medical condition and has a provision for instances where the employee can miss periods of work to take treatments provided that they disclose this to their employers.
The employees are allowed to break the maximum period of 12 periods leave per year into blocks such as daily and hourly. Lily is therefore allowed by law to seek what she was seeking from the company and so she can file a complaint with the Department of Labor under this Act to seek redress.
If a firm is operating at a point on its long-run average total cost curve where the slope is negative, it
is
O experiencing increasing returns to scale
O experiencing constant returns to scale
O experiencing decreasing returns to scale
O achieving efficient scale
O
making progressively less as it increases its inputs
A company is enjoying growing returns to scale if it is performing at a position on its long-run total cost average curve at which slope is negative.
What in business is the firm?A partnership is a for-profit enterprise that often takes the form of a partnership and offers professional services like accountancy or legal counsel. According to the philosophy of the firm, places operate to maximize profits.
Why does "firm" signify "company"?The phrase "business house" first appeared there in English language in 1744, according to an International Etymology Dictionary. It is said to have originated from the German term Firma, which meant "a firm, name of either a firm" and was derived as from Italian words Firma, which meant "signature," and Firmare, which meant "to sign."
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Federal Rent-a-Car is putting together a new fleet. It is considering package offers from three car manufacturers. Fred Motors is offering 5 small cars, 5 medium cars, and 10 large cars for $500,000. Admiral Motors is offering 5 small, 10 medium, and 5 large cars for $400,000. Chrysalis is offering 10 small, 5 medium, and 5 large cars for $300,000. Federal would like to buy at least 550 small cars, at least 500 medium cars, and at least 550 large cars. How many packages should it buy from each car maker to keep the total cost as small as possible
Answer:
a) X ( number of package bought from Fred motors ) = 30
Y ( number of package bought from Admiral ) = 20
Z ( number of package bought from Chrysalis ) = 30
b) The smallest total cost = $32,000,000
Explanation:
Given data :
cars types x y z quantity needed
small 5 5 10 550
medium 5 10 5 500
large 10 5 5 550
cost $500,000 $400,000 $300,000
Note : x = number of package bought from Fred motors , y = Admiral motors , z = Chrysalis motors
The number of packages to be bought from each car manufacturer to keep total cost as small as possible
X ( number of package bought from Fred motors ) = 30
Y ( number of package bought from Admiral ) = 20
Z ( number of package bought from Chrysalis ) = 30
The smallest total cost = ( 30 * 500,000 ) + ( 20*400,000) + (30*300,000 )
= $32,000,000
Attached below is the detailed solution
Gonzales Company declared and distributed a 10% stock dividend when it had 800,000 shares of $1 par value common stock outstanding. The market price per share of common stock was $60 per share when the dividend was declared. The journal entry to record the stock dividend would include a credit to:__________.
a. Common Stock $800,000.
b. Stock Dividends $1,200,000.
c. Additional Paid-in Capital -Common $4.720,000.
d. Retained Earnings $800,000.
Answer: C. Additional Paid-in Capital -Common $4.720,000.
Explanation:
Based on the information given in the question, the journal entry to record the stock dividend would go thus:
Debit: Retained earnings = 80000 × $60 = $4,800,000
Credit: Common stock = 80000 × $1 = $80000
Credit: Additional paid in capital- Common stock = 80,000 × $59 = $4,720,000
(To record share dividend)
Therefore, the journal entry to record the stock dividend would include a credit to Additional Paid-in Capital -Common $4.720,000
Use the information below to answer the following questions. Currency per U.S. $ Australia dollar 1.2377 6-months forward 1.2356 Japan Yen 100.3300 6-months forward 100.0500 U.K. Pound .6792 6-months forward .6781 Suppose interest rate parity holds, and the current six month risk-free rate in the United States is 5 percent. Use the approximate interest rate parity equation to answer the following questions. a. What must the six-month risk-free rate be in Australia
Answer:
Missing word "a. What must the six-month risk-free rate be in Japan"
a. Spot rate = 1 US $ = 1.2377 Aus.dollar
Forward rate = 1 US $ = 1.2356 Aus.dollar
1.2356 = (1 + i Ad)
1.2377 (1 + 0.05)
0.9983 * (1.05) = 1 + i.Ad
1.048215 = 1 + i.Ad
i.Ad = 1.048215 - 1
i.Ad = 0.048215
i.Ad = 4.82%
b. Spot rate = 1 US $ = 100.3300 Japan Yen
Forward rate = 1 US $ = 100.0500 Japan Yen
100.0500 = (1 + i Ad)
100.3300 (1 + 0.05)
0.9972 * (1.05) = 1 + i.Ad
1.04706 = 1 + i.Ad
i.Ad = 1.04706 - 1
i.Ad = 0.04706
i.Ad = 4.71%
Kirby subscribed to purchase 100 shares of stock to be issued by Globule, Inc., an already existing corporation. Globule accepted the subscription. The price set forth in the subscription agreement was $10 per share. The par value of the stock was $8 per share. When the time came for Kirby to pay the amount of his subscription, Kirby paid only $6 per share, claiming that such amount represented the fair value of the shares. Globule delivered the stock certificates to Kirby, but demanded the other $4 per share. Is Kirby liable for the other $4 per share
Answer: C. No, but he is liable for another $2 per share.
Explanation:
A stock is not to be issued below its par value as this is the lowest price that it is to be issued at. If a par value is $4 for instance, the stock cannot be issued for anything less than this $4.
In this scenario, the par value is $8 per share which means that Globule Inc. cannot issue this share for less than $8. Kirby in paying only $6, is still liable for $2 so that he can at least pay for the stock at its par value.
Parker, Inc. has provided the following data for 2019: Materials Work-in-Process Finished Goods Beginning Inventory $24,000 $72,000 $108,000 Ending Inventory $18,000 $97,000 $82,000 Raw materials purchased for the year $310,000 Direct labor $480,000 Manufacturing Overhead: Estimated total manufacturing overhead for the year $1,000,000 Estimated total direct labor hours 10,000 Actual manufacturing overhead $975,000 Actual total direct labor hours 9,300 Calculate the raw materials used in production Calculate the predetermined overhead rate Calculate the total manufacturing costs for the year, assuming that all raw materials used are direct materials Calculate cost of goods manufactured for the year
Answer and Explanation:
The computation is shown below:
1) Raw material used is
= $24,000 + $310,000 - $18,000
= $316,000
2) Predetermined Overhead rate is
= $1,000,000 ÷ 10,000 direct labor hours
= $100 per DLH
3) Total manufacturing cost is
= $316,000 + $480,000 + $930,000 (9,300 ×$100)
= $1,726,000
4) Cost of goods manufactured is
= $72,000 + $1,726,000 - $97,000
= $1,701,000
In this way it is calculated
Identify the cultural differences between Greece and Switzerland as per the GLOBE project
your answer is here
Keyser Corporation, which has only one product, has provided the following data concerning its most recent month of operations:Selling price $ 157Units in beginning inventory 1,250Units produced 9,150Units sold 9,250Units in ending inventory 1,150Variable costs per unit:Direct materials $ 35Direct labor $ 52Variable manufacturing overhead $ 16Variable selling and administrative expense $ 26Fixed costs:Fixed manufacturing overhead $ 73,200Fixed selling and administrative expense $ 166,000The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.What is the net operating income for the month under absorption costing
Answer:
Calculation of Cost of goods sold
Opening Inventory = 1250 units*$111 = $138,750
Production cost = 9150 units*$111 = $1,015,650
Less : Closing Inventory = 1150 units*$111 = $127,650
Cost of Goods sold $1,026,750
Calculation of Unit cost
Direct Materials 35
Direct Labor 52
Variable manufacturing overheads 16
Fixed manufacturing overheads 8
Total Unit Cost 11
Particulars Amount
Sales $1,452,250
Less: Cost of goods sold $1,026,750
Gross Profit $425,500
Less: Selling & admin. exp
Variable -$240,500
Fixed -$166,000 $406,500
Net Operating Income $19,000