Answer:
1. Executing
2. Directing
3. Continuous process improvement
Explanation:
According to Managerial Accounting Concepts and Principles
1. All of the following are considered phases of the management process except EXECUTING
2. The process by which managers run day-to-day operations is called DIRECTING
3. CONTINUOUS PROCESS IMPROVEMENT is the philosophy of continually improving employees, business processes, and products.
A company uses the weighted average method for inventory costing. During a period, Department B finished and transferred 62,000 units to Department C. Also in Department B during the period, 16,000 units were started but brought only to a stage of being 60% completed. The number of equivalent units produced by Department B during the period was:_____.a. 60,000 units.
b. 55,000 units.
c. 62,500 units.
d. 67,500 units.
e. 47,500 units.
Answer:
Total Equivalent units of production= 71,600 units
Explanation:
The weighted average method blends the costs and units of the previous period with the costs and units of the current period.
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production:
Units completed in the period= 62,000
Equivalent units in ending inventory WIP= (16,000*0.6)= 9,600
Total Equivalent units of production= 71,600 units
Your income is $10,000 over the cutoff for the next lowest tax bracket. Your average tax rate is 10%. Your marginal tax rate is 25%. You contribute $3,000 to a traditional IRA and your contribution is fully deductible, should you decide to go that way. You decide, in fact, to make this a traditional IRA. How much did your contribution actually cost you, in after-tax dollars
Answer:
"$2,250" is the appropriate answer.
Explanation:
Given values are:
Before tax cost,
= $3000
Marginal tax rate,
= 25%
or,
= 0.25
The after tax cost of contribution will be:
= [tex]Before \ tax \ cost\times (1-Marginal \ tax \ rate)[/tex]
By putting the values, we get
= [tex]3000(1-25 \ percent)[/tex]
= [tex]3000(1-0.25)[/tex]
= [tex]3000\times 0.75[/tex]
= [tex]2250[/tex] ($)
Consider a Cournot duopoly with the following inverse demand function: P = 96 - 2Q1 - 2Q2, where Q1 and Q2 are quantities produced by firms 1 and 2, respectively. The firms' marginal cost are identical and given by MCi(Qi) = 2Qi, where i is either firm 1 or firm 2. Based on this information firm 1 and 2's reaction functions are:_____.
a. MR1(Q1, Q2) = 100-2Q1-Q2 and MR2(Q1, Q2) 100-Q1-2Q2.
b. MR1(Q1, Q2) = 100-4Q1-2Q2 and MR2(Q1, Q2) = 100 - 2Q1 - 402.
c. MR1(Q1, Q2) = 100 - 2Q1 - 4Q2 and MR2(Q1, Q2) = 100 - 4Q1 - 2Q2.
d. MR1(Q1, Q2) = 24.5 - 0.5Q2 and MR2(Q1, Q2) = 24.5 - 0.5Q1.
Two identical firms compete as a Cournot duopoly. The demand they face is P = 90-Q. The cost function for each firm is C(Q_i) = 6Qi. Each firm earns equilibrium profits of:_____.
Answer: See explanation
Explanation:
The revenue - firm 1 will be:
= P x Q1
= 100Q1 - 2Q1² -2Q1Q2
Then, marginal revenue MR1 will be:
= dR1/dQ1
= 100 - 4Q1 -2Q2
Similarly, the revenue for firm 2 will be:
= P x Q2
= 100Q2 - 2Q2² -2Q1Q2
Then, MR2 will be:
= 100 - 4Q2 - 2Q1
Therefore, MR1(Q1, Q2) = 100-4Q1-2Q2 and MR2(Q1, Q2) = 100 - 2Q1 - 402.
Option B is the correct answer.
P = 90 - Q
Q = Q1 + Q2
The revenue for firm 1 (R1) will be:
= PQ1
= 90Q1 - Q1² - Q2Q1
The marginal revenue MR1 will be:
= 90 - 2Q1 - Q2
The marginal cost MC is:
= dC/dQ
= 6
Since profit is maximized when MR = MC, this will be:
90 - 2Q1 - Q2 = 6
- 2Q1 - Q2 = 6 - 90
- 2Q1 - Q2 = - 84
2Q1 + Q2 = 84
3Q = 84
Q1 = Q2 = 28
Therefore,
P = 90-Q.
P = 90 - (Q1 + Q2)
P = 90 - (28 + 28)
P = 90 - 56
P = 34
Then, the equilibrium profit will be:
= Total revenue - Total cost
= (34 × 28) - (6 × 28)
= 952 - 168
= 784
Suppose a stock had an initial price of $56 per share, paid a dividend of $1.60 per share during the year, and had an ending share price of $66. Compute the percentage total return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer: 20.71%
Explanation:
The percentage total return will be calculated as follows:
= (Ending price + Dividend - Initial price) / Initial price
= ($66 + $1.60 - $56) / $56
= $11.60 / $56
= 0.2071
= 20.71%
Therefore, the percentage total return is 20.71%
The price elasticity of demand for a popular sporting event is 1.5. If the price of a ticket to this event increases by 10%, the quantity of tickets demanded will decrease by
Answer: Quantity demanded will decrease by 15%
Explanation:
The price elasticity of demand shows how much the quantity demanded of a good or service will change in response to a change in the price of the good.
Price elasticity of demand = Percentage change in quantity / Percentage change in price
1.5 = % change in quantity demanded / 10%
% change in quantity demanded = 1.5 * 10%
% change in quantity demanded = 15%
Quantity demanded will decrease by 15%
what is Overconfident in econimics?
Answer:
< Bestiary of Behavioral Economics. Overconfidence is a common tendency to overestimate one's ability to predict and control future outcomes. It is recognized in psychology as well as economics and has been blamed for countless counterintuitive economic outcomes.
Check all answers that apply. Based on the model output, we can say that both the size of the move (CuFt) and number of large furniture moved are important considerations when estimating the total number of labor hours required. We can make this claim because __________.'
Answer:
P-value for slope coefficient of the size of the mode CuFt is0.00
Explanation:
The slope coefficient is change in probability when all other independent variables are held constant. The output is 93.3 which is due to the variation in labor hours. These variations are due to large number of furniture moved in cubic feet.
MC Qu. 111 Brush Industries reports the following... Brush Industries reports the following information for May: Sales$955,000 Fixed cost of goods sold 111,000 Variable cost of goods sold 261,000 Fixed selling and administrative costs 111,000 Variable selling and administrative costs 136,000 Calculate the operating income for May under absorption costing.
Answer:
Particulars Amount
Sales $955,000
Less: Fixed cost of goods sold $111,000
Less: Variable cost of goods sold $261,000
Gross Profit $583,000
Less: Fixed selling & admin. costs $111,000
Less: Var. selling & admin. costs $136,000
Operating Income $336,000
Company X has a P/E ratio of 10 and a stock price of $50 per share. Calculate earnings per share of the company.A) $5 per share.B) $ per share.C) $0. per share.D) $6 per share.
Answer:
A) $5 per share
Explanation:
Calculation to determine the earnings per share of the company.
Using this formula
EPS=Stock price/P/E ratio
Let plug in the formula
EPS = 50/10
EPS= $5 per share
Therefore the earnings per share of the company will be $5 per share
Suppose that the airline industry is in long-run equilibrium when the price of gasoline increases, raising the cost of operating airplanes. In the long run, the number of airlines in business should:________a. remain constant with lower profits.b. increase.c. decrease.d. remain constant with constant profits.
Answer: c. decrease.
Explanation:
If the cost of operating airplanes increases on account of gasoline prices rising, it means that running an airline service would be more expensive.
In the long-run, there is zero economic profit as companies keep entering and exiting the market. If costs increase as they have done here, there will be an economic loss. Several firms will therefore exit in order to avoid these costs which would lead to the number of airlines decreasing.
When they decrease, prices will then go up till the economic profit is zero once more.
The current account balance equals _______. A. net exports plus net foreign investment in the United States B. exports minus imports plus net interest and net transfers C. the capital and financial account balance minus the official settlements account balance D. net exports plus the official settlements balance
Answer:
a
Explanation:
the current account of a country measures the value of the trade balance, transfers and the net income
the component of the current account includes
trade balance - it measures the value of the import and export of goods and services of a country.
net income - measures the value of the income received by a country's residents less the income paid to foreigners
transfers - it includes income sent home by a country's citizens working outside the country
Current account = net export + net income + net transfers
Which of the following is a consumer right per the consumer bill of rights?
1. Right to know
2. Right to return
3. Right to profit
4. Right to sanity
Answer:
1. Right to know.
Explanation:
The Consumer Bill of Rights refers to certain rights that are given to customers in a business transaction. These set of rights are given to customers or consumers and are made so that consumers will have equal rights to be protected against any unfair or false claims.
Among the given set of rights, the right to know is a consumer right according to the bill of rights. This right is one of the four sets of original rights as set in the consumer bill of rights. The other three are the right to safety, to be heard, and to choose.
Thus, the correct answer is option 1.
The Paw Patrol Smartphone lets kids learn about colors, numbers, and music. It has four Paw Patrol characters for the game plus numbers and colors. Before developing the Smartphone, Paw Patrol researched the market to see if this Smartphone would face stiff competition. Which step of segmenting the market does this example represent
Answer:
Profiling and analysing segments
Explanation:
Segmentation is the division of people into certain groups based on shared characteristics.
For example, In demographic segmentation, people are placed into groups based on age, gender, ethnicity and other demographic factors
Stages of segmenting a market
Selecting a product category to study - the product whose market would be segmented is chosen Choosing a basis for segmentation Selecting segmentation descriptors Profiling and analyzing segmentsCumberland Co. sells $1,114 of merchandise to Hancock Co. for cash. Cumberland paid $779 for the merchandise. Under a perpetual inventory system, which of the following is the correct journal entry(is)?
a. debit Cash, $1.084 credit Merchandise Inventory: $722
b. debit Cash. $1,084. credit Sales. $1.084 and debit Cost of Merchandise Sold. 722credit Merchandise Inventory: 5722
c. debit Accounts Receivable. $1,084, credit Sales. $1,084, and debit Cost of Merchandise Sold, 5722 credit Merchandise Inventory, 5722
d. debit Cash 5722: credit Sales. $722
Answer:
Debit Cash $1,114
Credit Sales $1,114
Debit Cost of merchandise sold $779
Credit Merchandise inventory $779
Explanation:
Based on the information given the correct journal entry(is):
Debit Cash $1,114
Credit Sales $1,114
Debit Cost of merchandise sold $779
Credit Merchandise inventory $779
Margas Framing's cost formula for its supplies cost is $2,240 per month plus $6 per frame. For the month of May, the company planned for activity of 808 frames, but the actual level of activity was 810 frames. The actual supplies cost for the month was $7,090. The supplies cost in the flexible budget for May would be closest to:_____.a. $7,106.
b. $7,088.
c. $7,100.
d. $7,090.
Answer: c. $7,100
Explanation:
Supplies cost according to the flexible budget is to be calculated based on the actual level of activity.
The cost is:
= Fixed cost + (Variable cost * actual level of activity)
= 2,240 + (6 * 810)
= 2,240 + 4,860
= $7,100
Klingon Widgets, Inc., purchased new cloaking machinery four years ago for $8 million. The machinery can be sold to the Romulans today for $7.3 million. Klingonâs current balance sheet shows net fixed assets of $6 million, current liabilities of $760,000, and net working capital of $219,000. If all the current assets were liquidated today, the company would receive $1.01 million cash.
1. What is the book value of Klingonâs total assets today? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
2. What is the sum of net working capital and the market value of fixed assets? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
Answer:
Net working capital = Current assets - Current liabilities
$219,000 = Current assets - $760,000
Current assets = $219,000 + $760,000
Current assets = $979,000
1. Total assets = Current assets + Net fixed assets
Total assets = $979,000 + $6,000,000
Total assets = $6,979,000
So, the book value of Klingonâs total assets today is $6,979,000.
2. Sum of net working capital and the market value of fixed assets:
= Market value of current assets + Market value of fixed assets
= $1,010,000 + $7,300,000
= $8,310,000
Beta Company reported the following operating data for its baking division for the year: Sales $560,000 Contribution margin 308,000 Direct fixed costs 47,000 Average operating assets 230,000 How much is controllable margin for the year
Answer: $261000
Explanation:
Based on the information given in the question, the controllable margin for the year will be calculated thus:
Contribution margin = $308000
Less: Direct fixed cost = $47000
Controllable margin = $261000
Therefore, the controllable margin is $261000.
To balance the trade-off between speed and distance in ADSL, most ADSL service providers have chosen a T1 level of ADSL, and offer it under the trademarked name of _________ ADSL
Incomplete question. The missing option read;
a. CA*net 3
b. DOCSIS
c. G.Lite
d. OE
e. UCAID
Answer:
c. G.Lite
Explanation:
Remember, the term ADSL stands for, Asymmetric Digital Subscriber Line (ADSL), a telco-enabled service for digital communication.
Indeed, because of the shortcomings of a normal ADSL connection, ADSL service providers often chose to use G.Lite since it does not require a voice-data splitter to split the voice and data signals coming from a communication line, by so doing they are able to balance the trade-off between speed and distance in ADSL.
In the Hausser Food Products case, which type of organizational structure might have prevented the Florida sales team from withholding information from other sales teams?
Answer: Functional structure.
Explanation:
In the Hausser Food Products case, the type of organizational structure that might have prevented the Florida sales team from withholding information from other sales teams is the Functional structure.
The functional structure refers to the structure whereby employees in an organization are grouped based on their specialized skills, knowledge or roles that they perform.
In this type of structure, there are different departments such as the sales department, finance department, customers services department etc. The specialized unit typically report to higher management as it's hierarchical.
g A foreign factory has offered to supply with ready-made baskets for a price of $12 per basket. Assume that fixed costs are unavoidable, but that could use the vacated production facilities to earn an additional $8500 of profit per month. If Fruit Basket Company decides to outsource, monthly operating income will increase by ________.
Answer:
The answer is "$5500".
Explanation:
Analysis Differential:
Make Buy
Cost of variable [tex]800\times 7 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ = 5600[/tex]
Fixed- cost [tex]16000\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 16000[/tex]
Purchasing cost [tex]800\times 12\ = 9600[/tex]
Cost of opportunity [tex]\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 9500[/tex]
Total relevant cost [tex]31100 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 25600[/tex]
Increasing operating income [tex]= 31100-25600 = 5500[/tex]
The Ace Battery Company has forecast its sales in units as follows: January February March April 1,200 May 1,050 June 1,000 July 1,500 1,750 1,900 1,600 Ace always keeps an ending inventory equal to 140 percent of the next month's expected sales. The ending inventory for December (January's beginning inventory) is 1,680 units, which is consistent with this policy. Materials cost $13 per unit and are paid for in the month after production. Labour cost is $6 per unit and is paid in the month the cost is incurred. Overhead costs are $8,000 per month. Interest of $8,400 is scheduled to be paid in March, and employee bonuses of $13,600 will be paid in June. a. Prepare a monthly production schedule for January through June (Enter all values as positive value.) Saved ework Help Save & Exit Submit Check my work January 1200 February 1050 March 1000 April 1500 May 1750 June 1900 July 1600 Forecasted unit sales Desired ending inventory Beginning inventory Units to be produced b. Prepare a monthly summary of cash payments for January through June. Ace produced 1.000 units in December Ace Battery Company Summary of Cash payments February March December January April May June Units produced Material cost Labour cost Overhead cost Interest Employee bonuses Total cash payments
Answer:
The Ace Battery Company
a) Monthly Production Schedule
January February March April May June
Sales Forecast: 1,200 1,050 1,000 1,500 1,750 1,900
Ending inventory 1,470 1,400 2,100 2,450 2,660 2,240
Sales units available 2,670 2,450 3,100 3,950 4,410 4,140
Beginning inventory 1,680 1,470 1,400 2,100 2,450 2,660
Units for production 990 980 1,700 1,850 1,950 1,480
b) Monthly Cash Payments:
January February March April May June
Payments:
Production materials 0 $12,870 $12,740 $22,100 $24,050 $25,350
Labor costs $5,940 5,880 10,200 11,100 11,700 8,880
Overhead costs 8,000 8,000 8,000 8,000 8,000 8,000
Interest expense 8,400
Employee bonuses 13,600
Total payments $13,940 $26,750 $39,340 $41,200 $43,750 $55,830
Explanation:
a) Data and Calculations:
January February March April May June July
Sales Forecast: 1,200 1,050 1,000 1,500 1,750 1,900 1,600
Ending inventory 1,470 1,400 2,100 2,450 2,660 2,240
Sales units available 2,670 2,450 3,100 3,950 4,410 4,140
Beginning inventory 1,680 1,470 1,400 2,100 2,450 2,660 2,240
Units for production 990 980 1,700 1,850 1,950 1,480
Costs of materials $12,870 $12,740 $22,100 $24,050 $25,350 $19,240
Payments:
Production materials 0 $12,870 $12,740 $22,100 $24,050 $25,350
Labor costs $5,940 5,880 10,200 11,100 11,700 8,880
Overhead costs 8,000 8,000 8,000 8,000 8,000 8,000
Interest expense 8,400
Employee bonuses 13,600
Cash payments $13,940 $26,750 $39,340 $41,200 $43,750 $55,830
Consider the following information: Total current assets $78,632 Deferred income taxes $3,210 Inventories $9,823 Prepaid expenses $1,050 Other assets $3,890 Total current liabilities $32,043 What is the quick ratio? 2.15 2.45 2.32 2.24
Answer:
2.15
Explanation:
As a general rule, C corporations must use the cash method of accounting. However, under several exceptions to this rule (e.g., average annual gross receipts of $26,000,000 or less for the most recent 3-year period), a C corporation can use the accrual method.
a. True
b. False
Tuscany Company estimated the following costs at the beginning of a particular year: Overhead $5,340,000 Direct labor cost $890,000 Tuscany uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost equals total direct labor hours worked multiplied by the wage rate.) The direct labor cost was $50,000 for the month of January. Determine the overhead applied for the month of January.
Answer: $300,000
Explanation:
As overhead is applied on the basis of direct labor cost, the overhead rate for the period is:
= Overhead / Direct labor cost * 100%
= 5,340,000 / 890,000 * 100%
= 600%
If direct labor cost is $50,000 then overhead applied will be:
= Direct labor cost * Overhead rate
= 50,000 * 600%
= $300,000
Two towns, each with three members, are deciding whether to put on a fireworks display to celebrate the New Year. Fireworks cost $360. In each town, some people enjoy fireworks more than others. In the town of Bayport, each of the residents values the public good as follows:
Resident Value (Dollars)
Musashi 50
Rina 100
Sean 300
he total benefit of the fireworks display to the town of Bayport is $: ___________
Answer:
$450
Explanation:
The benefit an individual derives from an activity can be described as the total satisfaction or utility that individual derives from carrying out a particular activity. It is the value an individual derives from a particular activity
Benefit can be measured in dollars or in utils
the higher the value of the dollar or util, the higher the benefit the consumer derives from an activity
A rational person would weigh the cost of an activity to the benefit that would be derived from the activity. The individual would carry out the activity only if benefit outweigh the cost.
For example, in this question, the total benefit of fireworks display is 450. this is greater than the cost. So, the town would carry out the firework display
Total benefit is the sum of individual value individuals would derive from an activity.
total benefit = $50 + $100 + $300 = $450
Frank decides that a social media campaign is the best way for him to attract new business to Slice of Life Pizza. After Frank identifies his strategies and goals, the next step in the campaign is
Answer: identify your target audience
Explanation:
Since Frank has identified his strategies and goals, then the next step in the campaign will be to identify the target audience.
The target audience refers to the consumers that are likely to attract new business to Slice of Life Pizza. This is vital for Frank to be able to reach out to more customers and make profit.
Along any downward sloping straight-line demand curve: Group of answer choices both the price elasticity and slope are constant. both the price elasticity and slope vary. the price elasticity varies, but the slope is constant. the slope varies, but the price elasticity is constant.
Answer:
the price elasticity varies, but the slope is constant
Explanation:
The demand curve is a curve that shows the relationship between price and quantity demanded. The demand curve is negatively sloped because the higher the price, the lower the quantity demanded. This is in line with the law of demand.
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
At the midpoint of the demand curve, demand is usually unit elastic. Above the midpoint of the demand curve, demand is elastic and blow the midpoint, demand is inelastic
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
Phillips Corporation's fiscal year ends on November 30. The following accounts are found in its job order cost accounting system for the first month of the new fiscal year.
Other data:
1. On December 1, two jobs were in process: Job No. 154 and Job No. 155. These jobs had combined direct materials costs of $9,950 and direct labor costs of $15,200. Overhead was applied at a rate that was 75% of direct labor cost.
2. During December, Job Nos. 156, 157, and 158 were started. On December 31, Job No. 158 was unfinished. This job had charges for direct materials $4,400 and direct labor $5,200, plus manufacturing overhead. All jobs, except for Job No. 158, were completed in December.
3. On December 1, Job No. 153 was in the finished goods warehouse. It had a total cost of $5,500. On December 31, Job No. 157 was the only job finished that was not sold. It had a cost of $4,300.
4. Manufacturing overhead was $1,145 underapplied in December.
List the letters (a) through (m) and indicate the amount pertaining to each letter. Raw Materials Inventory Dec. 1 Beginning balance
a. Dec. 31 Requisitions 18,950 31 Purchases 18,025 Dec. 31 Ending balance 8,125 Work in Process Inventory Dec. 1 Beginning balance (Entry field with correct answer)
b. Dec. 31 Jobs completed (Entry field with incorrect answer) (f) 31 Direct materials (Entry field with correct answer)
c. 31 Direct labor 9,100 31 Overhead (Entry field with correct answer)
d. Dec. 31 Ending balance (Entry field with correct answer)
e. Finished Goods Inventory Dec. 1 Beginning balance (Entry field with correct answer)
f. Dec. 31 Cost of goods sold (Entry field with incorrect answer) (i) 31 Completed jobs (Entry field with incorrect answer)
g. Dec. 31 Ending balance (Entry field with correct answer)
h. Factory Labor Dec. 31 Factory wages 12,225 Dec. 31 Wages assigned (Entry field with correct answer)
i. Manufacturing Overhead Dec. 31 Indirect materials 3,300 Dec. 31 Overhead applied (Entry field with correct answer)
j. 31 Indirect labor (Entry field with correct answer)
k. 31 Other overhead 1,545
Answer:
Phillips Corporation
a = 9,050 beginning balance Raw Materials
b = 36,660 beginning balance WIP
c = 15,650 direct materials
d = 6,825 Overhead applied
e = 13,500 Ending balance WIP
f = 5,500 beginning balance Finished Goods
g = 54,625 Completed jobs
h = 4,300 ending balance Finished Goods
i = 9,100 wages assigned
j = d
k = 3,125 indirect labor
l = 1,145 Underapplied overhead
m = 55,825 cost of goods sold
Explanation:
a) Data and Analysis:
1. Jobs in process:
Job No. 154 and Job No. 155
Combined direct materials costs $9,950
Combined direct labor costs 15,200
Overhead applied (75%) 11,400
Total work in process, beginning $36,550
2. Jobs started in December:
Job Nos. 156, 157, and 158
Direct materials $4,400
Direct labor 5,200
Overhead applied (75%) 3,900
Total work in process $13,500
Beginning work in process = $36,550
Ending work in process = $13,500
Beginning Finished Goods Inventory: Job 153 $5,500
Ending Finished Goods Inventory: Job 157 $4,300
Raw Materials Inventory
Dec. 1 Beginning balance 9,050 (a)
Dec. 31 Requisitions 18,950
Dec. 31 Purchases 18,025
Dec. 31 Ending balance 8,125
Total 27,075 27,075
a = $9,050 (27,075 - $18,025)
Work in Process Inventory
Dec. 1 Beginning balance $36,550 b.
Dec. 31 Jobs completed 54,625 (g)
Dec. 31 Direct materials 15,650 c.
Dec. 31 Direct labor 9,100
Dec. 31 Overhead 6,825 d.
Dec. 31 Ending balance 13,500 e.
Finished Goods Inventory
Dec. 1 Beginning balance 5,500 f
Dec. 31 Cost of goods sold 55,825 (m)
Dec. 31 Completed jobs 54,625 g.
g. Dec. 31 Ending balance 4,300 h
Factory Labor
Dec. 31 Factory wages 12,225
Dec. 31 Wages assigned 9,100
Dec. 31 Overhead 3,125
Manufacturing Overhead
Dec. 31 Indirect materials 3,300
Dec. 31 Overhead applied 6,825 d.
Dec. 31 Indirect labor 3,125 k.
Dec. 31 Other overhead 1,545
Dec. 31 Underapplied overhead 1,145
The ABC Corporation makes collections on sales according to the following schedule: 45% in month of sale 50% in month following sale 5% in second month following sale The following sales have been budgeted: Sales April $ 160,000 May $ 180,000 June $ 170,000 Budgeted cash collections in June would be:
Answer: $170500
Explanation:
Based on the information given in the question, the budgeted cash collections in June would be calculated thus:
= (45% × $160000) + (50% × $180000) + (5% × $170000)
= $72000 + $90000 + $8500
= $170500
Therefore, the budgeted cash collections in June would be $170500
Ames Trading Co. has the following products in its ending inventory.Product Quantity Cost per Unit Market per UnitMountain bikes 11 $600 $550Skateboards 13 $350 $425Gliders 26 $800 $700Compute lower of cost or market for inventory applied separately to each product.
Answer:
Mountain Bikes
Market value is $550 and cost is $600.
Lower is market.
Inventory value is therefore:
= Quantity * Market
= 11 * 550
= $6,050
Skateboards
Market value is $425 and cost is $350.
Cost is lower.
Inventory value is:
= 13 * 350 cost
= $4,550
Gliders
Market value is $700 and cost is $800.
Inventory value is:
= 26 * 700 market value
= $18,200
