Answer:
Hello some parts of the question is missing here is the missing part
Age probability of female death
20 0.00060
30 0.00070
40 0.00095
50 0.00300
Answer : $110
Explanation:
Given that the woman is 20 years of age and wants to buy one-year life insurance policy the insurance company would have to charge her considering the probability of female death within 20 years of age
expected profit for insurance company = $50
cost of insurance = $100000
For the company to make a profit of $50 we make use of this relation
x * ( 1 - probability of female death at 20 ) - ( cost of insurance - x ) * probability of female death at 20 = 50
= x *( 1 - 0.00060 ) - ( 100000 - x ) * 0.00060 = 50
= x* ( 0.9994 ) - (60 - 0.00060 x ) = 50
= 0.9994 x - 60 + 0.00060 x = 50
hence x = 50 + 60 = $110
The failure to record a purchase of mer chandise on account even though the goods are properly included in the physical inven tory results in
Answer: D. an understatement of expenses and an overstatement of owners' equity
Explanation:
If a purchase of merchandise was not recorded, it would mean that Purchases being an expense that contributes to the Cost of Goods sold would be understated.
This understatement would mean that the the Net income is overstated because the purchase expenses were never deducted from it. Net Income is part of owners' equity so if it is overstated, so is owners' equity .
The operating margin measures tells you that for every dollar of sales XXXX dollars makes it to the net income line on the income statement.
A. True
B. False
Answer:
A. True
Explanation:
The Operating Margin is the profit obtained for every dollar of sale and this is the sames as saying a certain amount of sales makes it to the net income line on the income statement.
TB MC Qu. 5-49 Walbin Corporation uses the weighted-average method... Walbin Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 20,500 units, 100% complete with respect to materials cost and 30% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $26,200. A total of 58,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $2.10 for materials and $3.80 for conversion costs. The total cost of the units completed and transferred out of the department was:
Answer:
The total cost of the units completed and transferred out of the department was: $342,200.
Explanation:
First calculate the Total Cost per Equivalent unit.
Total Cost per Equivalent unit :
Materials $2.10
Conversion $3.80
Total $5.90
Total cost of the units completed and transferred out = Units completed and transferred out × Total Cost per Equivalent unit
= 58,000 units × $5.90
= $342,200
The company currently markets McDog T-bone, Lapdog Lunchtreats, Rover's Potroast, and Puppy Porterhouse in the dog food market. Prime Cuts will be an addition to the
Answer:
company's product line in the dog food market
Explanation:
In the description provided, it can be said that Prime Cuts will be an addition to the company's product line in the dog food market. A product line is a group of related products all marketed under a single brand name and are sold by the same company to the same targeted group of consumers. Such as in this scenario, all of the products listed are dog treats/food with different ingredients and are all sold by the same company to people looking for dog food.
Why must corporate managers use multiple techniques of project evaluation? Which technique is most commonly used and why? Describe several ways you may be able to use the techniques above as you progress in your professional career.
Answer:
The most important technique for project evaluation is the net present value (NPV) which compares the present value of discounted cash flows against the initial costs associated with the project. The other two most important techniques used are the payback period (either regular or discounted) and the internal rate of return (IRR).
Depending on the company's needs, sometimes one technique might be used instead of others. E.g. technological firms generally use the payback period because most of their projects have a very short life, 1 or 2 years. Other times, you might have to compare different projects and even if they are not mutually exclusive, no company can dispose of money freely. It only invests in certain projects that have a minimum required rate of return.
But the basic technique, the NPV, is the most relevant in a sense that no project with a negative NPV should be accepted.
Consider a $1,000-par-value 20-year zero-coupon bond issued at a yield to maturity of 10%. If you buy that bond when it is issued and continue to hold the bond as yields decline to 9%, the imputed interest income for the first year of that bond is
Answer:
$14.87
Explanation:
Computation the imputed interest income for the first year of the bond
First step
Using this formula
Imputed interest income= Par value/(1+yield to maturity)^Numbers of years
Let plug in the formula
Imputed interest income$1,000/(1.10)^20
Imputed interest income= $1,000/6.72749
Imputed interest income=$148.64
Second step
Imputed interest income=$1,000/(1.10)^19= Imputed interest income=$1,000/6.11590
Imputed interest income=$163.51
Hence,
Imputed interest income=$163.51 - $148.64
Imputed interest income= $14.87
Therefore the imputed interest income for the first year of the bond will be $14.87
The price of a stock at the end of each of the past three years has been $14, $12, and $11 with $11 being the latest price. The stock pays an annual dividend of $1 per share. What is the average annual capital gain for the past two years
Answer: 11.31%
Explanation:
From the question, we are informed that the price of a stock at the end of each of the past three years has been $14, $12, and $11 with $11 being the latest price and that the stock pays an annual dividend of $1 per share.
The average annual capital gain for the past two years will be:
= (-$2/$14) + ($-1/$12)/2
= 11.31%
Concord Corporation has 8,800 shares of common stock outstanding. It declares a $3 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31. Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend
Answer:
Declaration date:
Dr retained earnings $26400
Cr dividends payable $26400
Payment date:
Dr dividends payable $26400
Cr Cash $26400
Explanation:
Total dividend declared is the number of shares multiplied by cash dividend per share
total dividend=$3*8,800=$26400
On the record date no entries are required since record date, is just about verifying the bonafide shareholders.
On declaration date,dividends payable would be credited with $26,400 while retained earnings is debited.
On payment date,dividends payable is debited and cash credited
Which of the following statements accurately brings out the difference between technology enthusiasts and early adopters?
A. While the customer segment in the introduction stage consists of early adopters, the customers entering the market in the growth stage are technology enthusiasts.
B. Unlike technology enthusiasts, early adopters' demand is fueled more by intuition and vision rather than technology concerns.
C. While early adopters make up the smallest market segment, technology enthusiasts make up the mass market.
D. Firms need to communicate products' potential applications in a more direct way when attracting technology enthusiasts rather than early adopters.
Answer:
B. Unlike technology enthusiasts, early adopters' demand is fueled more by intuition and vision rather than technology concerns.
Explanation:
When a company is growing it attracts various types of customers that patronise their products.
The technology enthusiasts are those ones that will test a beta version of a product and make technological recommendations. They have passion for testing latest gadgets and have more knowledge of the product than the average customer.
Early adopters are those that adopt a product before most other people. They are less concerned with technology concerns, but rather are visionary.
They focus on the potential of a product and therefore promote it to other users. A trait of early adopter is that they want to stay ahead of the trend so they seek out new products.
According to empirical studies, greater consumption is likely to lead to unhappiness. This condition is called _____.
Answer:
Affluenza.
Explanation:
It is a term that described to be psychological and socio-metaphorical illness seen amongst children or also in teens who grow up in a privileged lifestyle, largely isolated emotionally and developmentally from their working parents etc. In most cases according to research, it is seen to make such children feel more isolated than their friends, while at the same time feeling an increase in pressure to perform.
The effect of this affluenza is also seen to make such people to have a feeling of giving themselves excessive pressure to achieving things, these includes in both academic and extracurricular activities.
Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $11.13 per unit, and the variable labor cost is $7.29 per unit.Required:a. What is the variable cost per unit?b. Suppose the company incurs fixed costs of $875,000 during a year in which total your answer to 2 decimal places, e.g., 32.16.) production is 190,000 units. What are the total costs for the year?c. If the selling price is $44.99 per unit, does the company break even on a cash basis? I depreciation is $435,000 per year, what is the accounting break-even point?
Answer:
Explanation:
Giving the following information:
Unitary direct material cost= $11.13
Unitary direct labor cost= $7.29
A.
Total variable cost per unit= 11.13 + 7.29= $18.42
B. Fixed costs= $875,000
Production= 190,000
Total costs= 875,000 + 18.42*190,000= $4,374,800
C.
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 875,000 / (44.99 - 18.42)
Break-even point in units= 32,932 units
D. Depreciation= $435,000
Accounting break-even point= (875,000 - 435,000) / 26.75
Accounting break-even point= 16,449 units
In a production bottleneck situation, the product with the highest contribution margin per unit should be given priority over a product that has the highest contribution margin per bottleneck hour.
a. True
b. False
Answer:
b. false
Explanation:
A bottleneck is a point at which there is the stoppage in the system of production. The inefficiencies that are generated through the bottleneck developed the delays and leads to the high cost of production
Here in the given situation, since there is the highest contribution margin per unit that gives more priority as compared with the contribution margin per bottleneck hour i.e. totally wrong as it should give the priority to the contribution margin per bottleneck hour
Therefore the given statement is false
You consider undertaking the research project. It will increase sales by $100K per year starting next year and its life is 10 years. The maintenance cost is $50K and the depreciation of the equipment is 20K per year. The tax rate is 40% and there are no changes in net operating working capital. What is the annual operating cash flow from the project? A. $10,000 B. $18,000 C. $38,000 D. $30.000
Answer: C. $38,000
Explanation:
The Operating cashflow for a project will be the net income earned from it less any taxes but including depreciation.
In formula form;
Operating cash flow = EBIT - tax paid + depreciation
Earnings Before Interest and Tax
= Sales - Expenses
= 100,000 - 50,000 - 20,000
= $30,000
Tax paid
= EBT * 40%
= 30,000 * 40%
= $12,000
Operating cash flow = EBIT - tax paid + depreciation
= 30,000 - 12,000 + 20,000
= $38,000
Note; Depreciation is added back because it is a non-cash expense.
what is the price of a 5 year bond that has a coupon rate of 7% with each coupon paid semi annually. The current market rate is 6%. Assume a par value of 1000
Answer:
The answer is $1,042.65
Explanation:
Coupon payment being done semiannually means it is paid twice in a year
N(Number of periods) = 10 periods ( 5 years x 2)
I/Y(Yield to maturity) = 3 percent( 6 percent ÷ 2)
PV(present value or market price) = ?
PMT( coupon payment) = $35 ( [7 percent÷ 2] x $1,000)
FV( Future value or par value) = $1,000.
We are using a Financial calculator for this.
N= 10; I/Y = 3; PMT = 35; FV= $1,000; CPT PV= -1,042.65
Therefore, the market price of the bond is $1,042.65
McConnel corporation has bonds on the market with 16.5 years to maturity, a YTM of 7.7 percent, a par value of 1000 and current price of 1065. The bonds make semiannual payment and have a par value of $1,000.Required:What must the coupon rate be on these bonds?
Answer:
Coupon rate = 0.08402 or 8.402%
Explanation:
To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = x
Total periods (n)= 16.5 * 2 = 33
r or YTM = 7.7% * 1/2 = 3.85% or 0.0385
The formula to calculate the price of the bonds today is attached.
Using the bond price formula and the available values, we calculate the coupon rate to be,
1065 = x * [( 1 - (1+0.0385)^-33) / 0.0385] + 1000 / (1+0.0385)^33
1065 = x * (18.50739407) + 287.4653284
1065 - 287.4653284 = x * 18.50739407
777.5346716 / 18.50739407 = x
x = 42.012 rounded off to $42.01
If the semi annual coupon payment is $42.01, the annual coupon payment will be 42.01 * 2 = $84.02
The coupon rate on bonds is = 84.02 / 1000
Coupon rate = 0.08402 or 8.402%
The required investment cost of a new, large shopping center is $49 million. The salvage value of the project is estimated to be $20 million (the value of the land). The project's life is 15 years and the annual operating expenses are estimated to be $14 million. The MARR for such projects is 15% per year. What must the minimum annual revenue be to make the shopping center a worthwhile venture?
Answer:
The minimum annual revenue is 22.38 million.
Explanation:
Let the minimum annual revenue = X
Therefore,
The present value of cash inflows = Present value of cash outflows
X (P/A,15%,15) + 20 (P/F,15%,15)= 49*1 + 14(P/A,15%,15)
Now look into the annuity table or compound interest factor table and use that values to solve the equation.
X(5.847) + 20 (0.1229) = 49 + 14 (5.847)
X(5.847) = 130.858
X = 130.858 / 5.847
X = 22.38 millions
The minimum annual revenue = 22.38 million.
A customer owns a long-term negotiable CD. If the customer wishes to tender the CD prior to maturity, the registered representative should inform the customer that:
Complete Question:
A customer owns a long-term negotiable CD. If the customer wishes to tender the CD prior to maturity, the registered representative should inform the customer that:
A. a prepayment penalty will be charged
B. he or she will receive par value of the principal plus accrued interest
C. the CD may not be redeemed prior to maturity
D. the customer will receive the market value plus accrued interest
Answer:
D. the customer will receive the market value plus accrued interest.
Explanation:
In this scenario, a customer owns a long-term negotiable certificate of deposit (CD). If the customer wishes to tender the CD prior to maturity, the registered representative should inform the customer that the customer will receive the market value plus accrued interest.
Generally, in the stock markets when a customer wishes to withdraw his or her funds on any brokered CD, there are no penalties for such actions or choice. The registered representative should pro-rate the amount of interest earned by the customer over the period of time for the deposit.
A customer redeems 1,000 shares of ABC Fund on Wednesday, June 14th. Under the provisions of the Investment Company Act of 1940, the customer must be paid the money no later than:
Answer:
Wednesday, June 21st
Explanation:
In this scenario, since the customer redeemed the shares on Wednesday, June 14th then he must be paid before Wednesday, June 21st. This is 7 days after the redemption. According to section 22 article (e) of the Investment Company Act of 1940, all companies are prevented from postponing the date of payment for more than seven days as stated below.
(e) No registered investment company shall suspend the right
of redemption, or postpone the date of payment or satisfaction upon
redemption of any redeemable security in accordance with its terms
for more than seven days after the tender of such security to the
company or its agent designated for that purpose for redemption
On January 1, Year 1, St. Clair Corporation issues 7%, 11-year bonds with a face amount of $90,000 for $83,497. The market interest rate is 8%. Interest is paid semiannually on June 30 and December 31. Complete the necessary journal entry for the issuance of the bonds by selecting the account names from the drop-down menus and entering the associated dollar amounts.
Answer:
Cash $83,497 (debit)
Investment in Bonds $83,497 (credit)
Explanation:
On Issuance of Bond, the Bond Issuer must recognize the Assets of Cash at the amount of consideration paid by the Bond Holder (Investor).
Also, the Financial Liability : Investment in Bonds must also be recognized by the Issuer at the same amount that the cash has been recognized at.
Blue Cab Company had 69,000 shares of common stock outstanding on January 1, 2021. On April 1, 2021, the company issued 39,000 shares of common stock. The company had outstanding fully vested incentive stock options for 14,500 shares exercisable at $11 that had not been exercised by its executives. The end-of-year market price of common stock was $32 while the average price for the year was $31. The company reported net income in the amount of $364,915 for 2021. What is the diluted earnings per share (rounded)
Answer:
$3.38
Explanation:
The diluted earnings per share is calculated as;
First, we need to calculate the weighted average outstanding shares.
Weighted average outstanding share is
= Common shares + (Issued shares × 9/12[April - December] + [(Issued shares - Shares exercisable)
= 69,000 shares + (39,000 shares × 9/12) + ( 14,750* - 5,145*)
= 69,000 + 29,250 + 9,605
= 107,855
Therefore, the diluted earnings per share is;
= Net income / Weighted average outstanding shares
= $364,915 / 107,855
= $3.38
Note : (14,500 shares × 11) / 31
= 5,145
A coworker of Connor's recommends that she maximize the shelf space devoted to those drinks with the highest contribution margin per case. Do you agree with this recommendation? Explain briefly.
Answer:
Yes
Explanation:
Ultimately I agree with the recommendation that has been given by Connor's coworker. By maximizing the shelf space specifically devoted to these drinks it will cause two things to happen. First, customers will mostly notice those drinks which will entice them to buy those drinks instead of the ones they cannot see. The second is that since customers are buying more of these drinks, the increase in sales will also increase profits, but since these items contribution margins are significantly higher than the others, it will cause profits to drastically increase.
Lance contributed investment property worth $507,500, purchased Five years ago for $312,500 cash, to Cloud Peak LLC in exchange for an 70 percent profits and capital interest in the LLC. Cloud Peak owes $380,000 to its suppliers but has no other debts.
Required information
A. What is Lance’s tax basis in his LLC interest?
B. What is Lance’s holding period in his interest?
C. What is Cloud Peak’s basis in the contributed property?
D. What is Cloud Peak’s holding period in the contributed property?
Answer:
a. Lance's Tax basis in his LLC interest
= Basis of investment property + Shares in LLC debt
= $312,500 + ($380,000 * 70%)
= $312,500 + $266,000
= $578,500
Therefore, LLC common debt obligation treated as non-recourse debt, lance income allocation ratio is used to allocate a share of LLC debt to him
b. Lance holding period in his interest is 5 years. The holding period of the contributed assets "tacks onto" his partnership interest because Lance contributed a capital asset
c. Cloud Peak's basis in the contributed property is $312,500. Also, the carryover basis would be taken by the LLC in the contributed property
d. Cloud's Peak holding period in the contributed property is 3 years
Phoenix Agency leases office space for $7,000 per month. On January 3, Phoenix incurs $65,000 to improve the leased office space. These improvements are expected to yield benefits for 8 years. Phoenix has 5 years remaining on its lease. Compute the amount of expense that should be recorded the first year related to the improvements.
Answer:
$13,000
Explanation:
The computation of the expense recorded in the first year is shown below:
Here the leasehold improvement should be depreciation by considering the lease term left or the estimated useful life whichever is lesser
Now the depreciation expense is
= Improvement cost ÷ lease term left
= $65,000 ÷ 5 years
= $13,000
hence, the amount of expense for the first year is $13,000
Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows:
A. Estimated sales for July by sales territory:
Maine:
Backyard Chef 310 units at $700 per unit
Master Chef 150 units at $1,200 per unit
Vermont:
Backyard Chef 240 units at $750 per unit
Master Chef 110 units at $1,300 per unit
New Hampshire:
Backyard Chef 360 units at $750 per unit
Master Chef 180 units at $1,400 per unit
B. Estimated inventories at July 1:
Direct materials:
Grates 290 units
Stainless steel 1,500 lbs.
Burner subassemblies 170 units
Shelves 340 units
Finished products:
Backyard Chef 30 units
Master Chef 32 units
C. Desired inventories at July 31:
Direct materials:
Grates 340 units
Stainless steel 1,800 lbs.
Burner subassemblies 155 units
Shelves 315 units
Finished products:
Backyard Chef 40 units
Master Chef 22 units
D. Direct materials used in production:
In manufacture of Backyard Chef:
Grates 3 units per unit of product
Stainless steel 24 lbs. per unit of product
Burner subassemblies 2 units per unit of product
Shelves 4 units per unit of product
In manufacture of Master Chef:
Grates 6 units per unit of product
Stainless steel 42 lbs. per unit of product
Burner subassemblies 4 units per unit of product
Shelves 5 units per unit of product
E. Anticipated purchase price for direct materials:
Grates $15 per unit
Stainless steel $6 per lb.
Burner subassemblies $110 per unit
Shelves $10 per unit
F. Direct labor requirements:
Backyard Chef:
Stamping Department 0.50 hr. at $17 per hr.
Forming Department 0.60 hr. at $15 per hr.
Assembly Department 1.00 hr. at $14 per hr.
Master Chef:
Stamping Department 0.60 hr. at $17 per hr.
Forming Department 0.80 hr. at $15 per hr.
Assembly Department 1.50 hrs. at $14 per hr.
Required:
1. Prepare a sales budget for July. Gourmet Grill Company Sales Budget For the Month Ending July 31 Product and Area Unit Sales Volume Unit Selling Price Total Sales Backyard Chef: Maine 310 700 217,000 Vermont 240 750 180,000 New Hampshire 360 750 270,000 Total 910 667,000 Master Chef: Maine 150 1,200 180,000 Vermont 110 1,300 143,000 New Hampshire 180 1,400 252,000 Total 440 575,000 Total revenue from sales 1,242,000
2. Prepare a production budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Gourmet Grill Company Production Budget For the Month Ending July 31 Units Backyard Chef Master Chef Expected units to be sold 910 440 Desired inventory, July 31 40 22 Total units available 950 462 Estimated inventory, July 1 -30 -32 Total units to be produced 920 430
3. Prepare a direct materials purchases budget for July.
Gourmet Grill Company
Direct Labor Cost Budget
For the Month Ending July 31
Stamping Department
Forming Department
Assembly Department
Total Hours required for production:
Backyard Chef
Master Chef
Total Hourly rate
Total direct labor cost
Answer:
Gourmet Grill Company
1. Sales Budget For the Month Ending July 31
Product Area Unit Sales Unit Selling Total
Volume Price Sales
Backyard Chef: Maine 310 $700 $217,000
Vermont 240 750 180,000
New Hampshire 360 750 270,000
Total 910 667,000
Master Chef: Maine 150 1,200 180,000
Vermont 110 1,300 143,000
New Hampshire 180 1,400 252,000
Total 440 575,000
Total revenue from sales $1,242,000
2. Gourmet Grill Company Production Budget For the Month Ending July 31 Units
Units Backyard Chef Master Chef Total
Expected units to be sold 910 440 1,350
Desired inventory, July 31 40 22 62
Total units available 950 462 1,412
Estimated inventory, July 1 -30 -32 62
Total units to be produced 920 430 1,350
3. Gourmet Grill Company
Direct Labor Cost Budget
For the Month Ending July 31
Stamping Forming Assembly
Units Department Department Department
Backyard Chef 920 460 hrs 552 hrs 920 hrs Master Chef 430 258 hrs 344 hrs 645 hrs
Total Hours required
for production: 718 hrs 896 hrs 1,565 hrs
Total Hourly rate $17 $15 $14
Total direct labor cost $12,206 $13,440 $21,910
Explanation:
1) Data:
A. Estimated sales for July by sales territory:
Maine:
Backyard Chef 310 units at $700 per unit
Master Chef 150 units at $1,200 per unit
Vermont:
Backyard Chef 240 units at $750 per unit
Master Chef 110 units at $1,300 per unit
New Hampshire:
Backyard Chef 360 units at $750 per unit
Master Chef 180 units at $1,400 per unit
B. Estimated inventories at July 1:
Direct materials:
Grates 290 units
Stainless steel 1,500 lbs.
Burner subassemblies 170 units
Shelves 340 units
Finished products:
Backyard Chef 30 units
Master Chef 32 units
C. Desired inventories at July 31:
Direct materials:
Grates 340 units
Stainless steel 1,800 lbs.
Burner subassemblies 155 units
Shelves 315 units
Finished products:
Backyard Chef 40 units
Master Chef 22 units
D. Direct materials used in production:
In manufacture of Backyard Chef:
Grates 3 units per unit of product
Stainless steel 24 lbs. per unit of product
Burner subassemblies 2 units per unit of product
Shelves 4 units per unit of product
In manufacture of Master Chef:
Grates 6 units per unit of product
Stainless steel 42 lbs. per unit of product
Burner subassemblies 4 units per unit of product
Shelves 5 units per unit of product
E. Anticipated purchase price for direct materials:
Grates $15 per unit
Stainless steel $6 per lb.
Burner subassemblies $110 per unit
Shelves $10 per unit
F. Direct labor requirements:
Backyard Chef:
Stamping Department 0.50 hr. at $17 per hr.
Forming Department 0.60 hr. at $15 per hr.
Assembly Department 1.00 hr. at $14 per hr.
Master Chef:
Stamping Department 0.60 hr. at $17 per hr.
Forming Department 0.80 hr. at $15 per hr.
Assembly Department 1.50 hrs. at $14 per hr.
b) Calculations:
Stamping Forming Assembly
Units Department Department Department
Backyard Chef 1 0.50 hr 0.60 hr 1.00 hr
Total hours required 920 460 hrs 552 hrs 920 hrs
Master Chef 1 0.60 hr 0.80 hr 1.50 hrs
Total hours required 430 258 hrs 344 hrs 645 hrs
Total Hours required
for production: 718 hrs 896 hrs 1,565 hrs
c) Gourmet Grill Company's Sales, Production, and Direct Labor Budgets for July detail the sales units under different product categories and areas. They will guide the management of Gourmet Grill company to make relevant decisions with regard to inventories, production, and sales volume that must be achieved in order to realize the budgets and attin company's objectives. They are very essential in planning, decision making, and control. Based on these budgets, performances will be reviewed, analyzed, and accordingly rewarded.
Rahman stock just paid a dividend of $3.00 per share. Future dividends are expected to grow at a constant rate of 6% per year. What is the value of the stock if the required return is 12%
Answer:value of stock for the required return of 12 % = $53
Explanation:
Given
current dividend just paid = $3.00
dividend to grow at constant rate of 6%
required rate of return =12%
to calculate the value of stock for the requitred return of 12 % , we use the dividend growth model which is
Current price = dividend ( 1 + growth rate )/ (required rate -growth rate )
= 3 x (1+6%) / 12-6 = 3 x 1.06 /6% =3.18/0.06= $53
Therefore value of stock for the requitred return of 12 % ,= $53
A company purchased a tract of land for its natural resources at a cost of $1,500,000. It expects to mine 2,000,000 tons of ore from this land. The salvage value of the land is expected to be $250,000. If 150,000 tons of ore are mined during the first year, the journal entry to record the depletion is:_______.
a. Debit Depletion Expense $93,750; credit Natural Resources $93,750.
b. Debit Cash $112,500; credit Natural Resources $112,500.
c. Debit Depletion Expense $93,750; credit Accumulated Depletion $93,750.
d. Debit Cash $93,750; credit Accumulated Depletion $93,750.
e. Debit Depletion Expense $112,500; credit Accumulated Depletion $112,500.
Answer:
Option c is the correct answer.
Explanation:
The depletion expense or charge for the period can be calculated using the following formula,
Depletion expense = [(Cost - Salvage Value) / Total units expected to be mined] * Units mined during the period
Depletion expense = [(1500000 - 250000) / 2000000] * 150000
Depletion expense = $93750
The entry to record the expense is,
Depletion expense 93750 Dr
Accumulated depletion 93750 Cr
So, option c is the correct answer.
Prepare journal entries to record each of the following four separate issuances of stock. A corporation issued 10,000 shares of $20 par value common stock for $240,000 cash. A corporation issued 5,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $45,500. The stock has a $1 per share stated value. A corporation issued 5,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $45,500. The stock has no stated value. A corporation issued 2,500 shares of $50 par value preferred stock for $170,500 cash.
Answer:
1.
DR Cash.................................................$240,000
CR Common Stock................................................... $200,000
Paid in Excess of Par- Common Stock.....................$40,000
Working
Common Stock = $20 * 10,000 = $200,000
Paid in Excess of Par- Common Stock = 240,000 - 200,000 = $40,000
2.
DR Promotion Expenses................................$45,500
CR Common Stock.........................................................$5,000
Paid in Excess of Par- Common Stock ........................$40,500
Working
Common stock = 5,000 * 1 = $5,000
Paid in Excess of Par- Common Stock = 45,500 - 5,000 = $40,500
3
DR Promotion Expenses..........................$45,500
CR Common Stock....................................................$45,500
4
DR Cash ...................................................$170,500
CR Preferred Stock .....................................................$125,000
CR Paid in Excess of Par - Preferred Stock ..............$45,500
Working
Preferred Stock = 50 * 2,500 = $125,000
Paid in Excess of Par - Preferred Stock = 170,500 - 125,000 = $45,500
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Budgeted direct labor-hours 11,000 9,700 10,000 10,800
The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $5.75 per direct labor-hour and its total fixed manufacturing overhead is $78,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $19,500 per quarter.
Required:
a. Prepare the company’s manufacturing overhead budget for the upcoming fiscal year.
b. Compute the company’s predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.
Answer:
Manufacturing Overhead Budget
Quarter 1st 2nd 3rd 4th
Variable Overheads $63,250 $55,775 $57,500 $62,100
Fixed Overheads $78,000 $78,000 $78,000 $78,000
Total Overheads $141,250 $133,775 $135,500 $140,100
Explanation:
When Preparing the Manufacturing Overhead Budget Note the following :
The Manufacturing Overheads Include Both Fixed and Variable Overheads.Be careful to absorb the Variable overheads cost at the direct labor-hour.Fixed Overheads can Include both cash and non-cash items.Interviews are designed to determine if the employer feels a candidate is a good fit for the job. What benefit does an interview offer the job candidate
Explanation:
The job interview is a form of selection used by companies to select candidates for a job more effectively, because through it, the recruiter will meet the candidate in person, ask questions about issues related to his resume and his professional experiences , as well as the opportunity to analyze the way you communicate, your interests and your personality.
The advantage of the interview for the job candidate is to demonstrate your good intentions when occupying the job through an ethical, cordial posture and to have the opportunity to talk about some professional experiences that may be of interest to the employer and the company. It is also an opportunity for the candidate to clarify doubts about the responsibilities of the position and any other doubts related to the company or job function.
. Which of these statements is true about the field of organizational behavior? 1 point A. It examines how individuals and teams in organizations relate to one another and to their counterparts in other organizations. B OB researchers systematically study various topics at a common level rather than at multiple levels. C. Information technology has almost no effect on organizational behavior. D. The field of organizational behavior relies exclusively on ideas generated within the field by organizational behavior scholars. E. The origins of organizational behavior are traced mainly to the field of economics.
Answer:
A. It examines how individuals and teams in organizations relate to one another and to their counterparts in other organizations.
Explanation:
Organizational behavior examines how individuals and teams in organizations relate to one another and to their counterparts in other organizations.
An organizational behavior can be defined as the study of people's opinions, feelings, actions and how people perceive an organization.
This ultimately implies that, an organizational behavior is the study of people's opinions, feelings, actions and how people perceive an organization.
Basically, it measures how an organization relates with its external environments. This is very key to formulating policies, mission and achieving a successful long-term organizational goals and objectives.
