Answer:
Aaron Company
a. Weighted-average
Equivalent units of production Units Materials Conversion
Units transferred to Finishing 630,000 630,000 (100%) 630,000 (100%)
Work in process, March 31 120,000 0 (0%) 48,000 (40%)
Equivalent units 630,000 678,000
b. FIFO:
Equivalent units of production Units Materials Conversion
Work in process, March 1 150,000 0 60,000 (40%)
Units started and completed 480,000 480,000 (100%) 480,000 (100%)
Work in process, March 31 120,000 0 (0%) 48,000 (40%)
Equivalent units 480,000 588,000
c. The change will reduce the unit costs of units transferred to finished goods in March.
Explanation:
a) Data and Calculations:
Work in process, March 1 (60% complete as to conversion costs) 150,000
Units started in March 600,000
Units transferred to Finishing Department in March 630,000
Work in process, March 31 (40% complete as to conversion costs) 120,000
a. Weighted-average
Equivalent units of production Units Materials Conversion
Units transferred to Finishing 630,000 630,000 (100%) 630,000 (100%)
Work in process, March 31 120,000 0 (0%) 48,000 (40%)
Equivalent units 630,000 678,000
b. FIFO:
Equivalent units of production Units Materials Conversion
Work in process, March 1 150,000 0 60,000 (40%)
Units started and completed 480,000 480,000 (100%) 480,000 (100%)
Work in process, March 31 120,000 0 (0%) 48,000 (40%)
Equivalent units 480,000 588,000
c. If the estimated completion for ending work in process is changed to 60% from 40%, the equivalent units of production for materials will increase by 120,000. This increase will also increase the cost of ending work in process and reduce the unit costs transferred to finished goods in March.
Choose the correct objective statement for this task.
Suppose that you have been given the task of organizing a graduation open house party for your younger brother who is graduating from high school.
a. To throw a graduation party Saturday afternoon after graduation for 50 guests, that provides ample entertainment and food, and allows my younger brother time to socialize with all the guests, at a cost of $400 or less, and all guests will be pleased with the party.
b. To throw a graduation party.
c. To throw a graduation party Saturday afternoon after graduation for 50 guests, that provides ample entertainment and food, and allows my younger brother time to socialize with all the guests.
d. To throw a graduation party Saturday afternoon after graduation for 50 guests, that provides ample entertainment and food, and allows my younger brother time to socialize with all the guests, at a cost of $400 or less.
Answer:
The correct objective statement for this task is:
b. To throw a graduation party.
Explanation:
Option b is the correct answer because it is concise and straight to the point. It does not start enumerating unnecessary details about the graduation party. Like a good objective statement, option b focuses the reader's attention to the main purpose of the task at hand. This is not so with options a, c, and d, which added details that were not covered by the task description.
the cost of quality has two components: the cost of good quality. the costs for good quality are the cost of monitoring and preventing defects. the cost of poor quality are often hidden, hitting customers and departments not immediately related to production. some experts argue that:
Answer: Quality is never costless because monitoring and prevention have costs
Explanation:
The cost of quality has two parts which are the cost of prevention and the cost of failure. The cost of quality simply refers to the sum of the prevention cost and the cost of failure.
It should be noted that spending more on prevention helps in reducing the cost of failure. According to experts, quality is is never costless because monitoring and prevention have costs.
Suppose a basketball player has made 294 out of 359 free throws. If the player makes the next 3 free throws, I will pay you $20. Otherwise you pay me $26. Step 1 of 2 : Find the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values.
Answer: -$0.74
Explanation:
Expected value of the proposition is:
= (Probability that player makes next 3 free throws * 20) - (Probability that player does not make the next 3 free throws * 26)
Probability that player does not make the next 3 free throws = 294/359 * 294/359 * 294/359
= 0.549235557
Expected value of proposition:
= (0.549235557 * 20) - ( (1 - 0.549235557) * 26)
= 10.98471114 - 11.719875518
= -$0.74
The following information applies to the questions displayed below] A local Chevrolet dealership carries the following types of vehicles
Inventory Items Quantity Cost per unit NRV per Unit
Vans 4 27000 25000
Trucks 7 18000 17000
2-door sedans 3 13000 15000
4-door sedans 5 17000 20000
Sports cars 1 37000 40000
SUVs 6 30000 28000
Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks
A) Compute the total cost of the entire inventory.
B) Determine whether each inventory item would be reported at cost or net realizable value (NRV).
C) Prepare necessary journal entry to write down inventory from from close to net realize value.
D) The write-down of inventory from cost to net realizable value reduces total assets and increases total expenses, leading to lower net income and lower retained earnings. True OR False
Answer:
Chevrolet Dealership
A) The total cost of the entire inventory is:
= $575,000
B) Each inventory would be reported at the LCNRV:
Inventory Items Quantity Reporting Cost/Value
Vans 4 NRV
Trucks 7 NRV
2-door sedans 3 Cost
4-door sedans 5 Cost
Sports cars 1 Cost
SUVs 6 NRV
C) Journal Entry:
Debit Cost of goods sold $27,000
Credit Inventory $27,000
To write-down costs to net realizable values.
D) TRUE.
Explanation:
a) Data and Calculations:
Inventory Items Quantity Cost per unit NRV per Unit LCNRV
Vans 4 27000 $108,000 25000 $100,000
Trucks 7 18000 126,000 17000 119,000
2-door sedans 3 13000 39,000 15000 39,000
4-door sedans 5 17000 85,000 20000 85,000
Sports cars 1 37000 37,000 40000 37,000
SUVs 6 30000 180,000 28000 168,000
Total Cost $575,000 $548,000
Question 3 4 Marks Mi Tierra Driving School charges $680 per student to prepare and administer written and driving tests. Variable costs of $408 per student include trainers’ wages, study materials, and gasoline. Annual fixed costs of $63,920 include the training facility and fleet of cars. Requirements 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided: a. Breakeven point with no change in information. b. Decrease sales price to $544 per student. c. Decrease variable costs to $340 per student. d. Decrease fixed costs to $53,040.
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price= $680
Unitary variable cost= $408
Fixed cost= $63,920
To calculate the contribution margin and break-even point in units, we need to use the following formula:
Unitary contribution margin= selling price - unitary variable cost
Break-even point in units= fixed costs/ contribution margin per unit
a:
Unitary contribution margin= 680 - 408= $272
Break-even point in units= 63,920 / 272
Break-even point in units= 235
b:
Unitary contribution margin= 544 - 408= $136
Break-even point in units= 63,920 / 136
Break-even point in units= 470
c:
Unitary contribution margin= 680 - 340= $340
Break-even point in units= 63,920 / 340
Break-even point in units= 188
d:
Unitary contribution margin= 680 - 408= $272
Break-even point in units= 53,040 / 272
Break-even point in units= 195
The following Information is avallable for the year ended December 31: Beginning raw materials inventory Raw materials purchases Ending raw materials Inventory Office supplies expense $ 4100 5,600 4,600 2,600 The amount of raw materials used in production for the year is: __________ a) $5.100 b) $8,300 c) $5,700 d) $5,600. e) $9,700
Answer:
a. $5,100
Explanation:
Raw materials used in production = Beginning raw materials inventory + Raw materials purchases - Ending raw materials inventory
Raw materials used in production = $4100 + $5,600 - $4,600
Raw materials used in production = $5,100
So, the amount of raw materials used in production for the year is $5,100.
The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units to be produced 10,400 9,400 11,400 12,400
Each unit requires 0.25 direct labor-hours and direct laborers are paid $12.00 per hour. In addition, the variable manufacturing overhead rate is $1.70 per direct labor-hour. The fixed manufacturing overhead is $84,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $24,000 per quarter.
Required:
1. Prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
2. Prepare the company’s manufacturing overhead budget.
Answer and Explanation:
The preparation is presented below:
1. For Direct labor budget
Particulars 1st quarter 2nd quarter 3rd quarter 4th quarter Year
Production Units 10400 9400 11400 12400 43600
direct labor time
per unit (hr) 0.25 0.25 0.25 0.25 0.25
Total direct labor
hour needed 2600 2350 2850 3100 10900
direct labor cost
per hour 12 12 12 12 12
Total direct
labor cost 31200 28200 34200 37200 130800
2. For Manufacturing overhead budget
Particulars 1st quarter 2nd quarter 3rd quarter 4th quarter Year
Variable
manufacturing overhead 4420 3995 4845 5270 18530
Fixed manufacturing
overhead 84000 84000 84000 84000 336000
Total manufacturing
overhead 88420 87995 88845 89270 354530
Less: depreciation -24000 -24000 -24000 -24000 -96000
cash disbursement
for manufacturing overhead 64420 63995 64845 65270 258530
Consider the markets for three products below. Indicate which characteristics of a competitive market are met by these markets.
Market : Gasoline
a. Large number of buyers
b. Standardized good
c. Full information
d. No transaction cost
e. Participants are price takers
Market: barbershop haircuts
a. Large number of buyers
b. Standardized good
c. Full information
d. No transaction cost
e. Participants are price takers
Market: bicycles
a. Large number of buyers
b. Standardized good
c. Full information
d. No transaction cost
e. Participants are price takers
Answer:
Market : Gasoline
b. Standardized good
c. Full information
e. Participants are price takers.
Market : Barbershop haircuts
a. Large number of buyers
c. Full information
Market : Bicycles
a. Large number of buyers
b. Standardized good
c. Full information
d. No transaction cost
Explanation:
The three markets will have different characteristics which will cause the competition. The Gasoline market has standardized product and the customers are price takers. Usually the prices are fixed for the products and there is no bargaining.
A US Treasury is quoted at $137.111 based on $100 par. Today is 12/31/2020. Assume that transaction date and settlement date is the same. The coupon rate is 8%. The bond has 30-year maturity. What is the yield-to-maturity
Answer: 5.46%
Explanation:
You can use excel to solve for this.
Number of periods = 30
Coupon = Payment = 8% * 100 = $8
PV = $137.11
FV = $100 par value
Do this and the YTM would be: 5.46%
This makes sense because the bond is trading at a premium which means that the YTM is less than the coupon rate.
In a sales contract, the passage of risk of loss from a seller to a buyer gives the buyer the right to insure the goods and the right to recover from third parties who damage them.
a. True
b. False
The statement - "In a sales contract, the passage of risk of loss from a seller to a buyer gives the buyer the right to insure the goods and the right to recover from third parties who damage them". Thus, option (a) is correct.
What is sales contract?A sales contract, customer orders, or contract for sale is a legal transaction in which a buyer purchases assets from a seller for an agreed-upon monetary value. It is an evident old practice of exchange that is currently controlled by statute law in many common law countries.
"In a sales contract, the passing of risk of loss from a seller to a buyer allows the buyer the opportunity to insure the products and the right to collect from third parties who destroy them,".
Therefore, it can be concluded that the statement mentioned above is true. Hence, option (A) is correct.
Learn more about sales contract here:
https://brainly.com/question/29350867
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According to a survey done by the Anti-Fraud Collaboration, the majority of participants believe it is the job of senior executives within an organization to set the tone to deter fraud.
a) true
b) false
The marginal product of labor in the production of computer chips is chips per hour. The marginal rate of technical substitution (MRTS) of hours of labor for hours of machine capital is . What is the marginal product of capital? The marginal product of capital is nothing chips per hour. (Enter your response as an integer.)
Answer: 500 chips per hour
Explanation:
Marginal rate of technical substitution is calculated by the formula:
= Marginal product of labor / Marginal product of capital
0.20 = 100 / marginal product of capital
Marginal product of capital * 0.20 = 100
Marginal product of capital = 100 / 0.20
= 500
1. Drawing on discussions of informational justice, how should Andrea approach the morning briefing? Should she be honest and informative in explaining corporate actions in the downsizing, or should she be more guarded?
Answer:
Andrea should be honest and informative in explaining her corporation's actions in downsizing.
Explanation:
By being honest and forthright by providing adequate informational justice to the employees affected by downsizing, she would gain the confidence of those that will not be affected. This will ensure that the workers remain motivated and productive. Doing informational justice requires the management to provide adequate explanations and rationale for the decision made to downsize the entity's workforce.
Cape Corp. will pay a dividend of $3.00 next year. The company has stated that it will maintain a constant growth rate of 4.5 percent a year forever.
a. If you want a return of 15 percent, how much will you pay for the stock?
b. If you want a return of 8 percent, how much will you pay for the stock?
Answer:
a.
$27.27
b.
$75
Explanation:
Use the following formula to calculate the value of the stock
Value of Stock = Expected Dividend / ( Rate of return - Growth rate )
a.
Where
Expected Dividend = $3.00
Rate of return = 15%
Growth rate = 4.5%
Placing values in the formula
Value of Stock = $3.00 / ( 15% - 4% )
Value of Stock = $3 / 11%
Value of Stock = $27.27
b.
Where
Expected Dividend = $3.00
Rate of return = 8%
Growth rate = 4.5%
Placing values in the formula
Value of Stock = $3.00 / ( 8% - 4% )
Value of Stock = $3 / 4%
Value of Stock = $75
Stan’s Sporting Goods is a competitor that can manufacture seven soccer balls out of a possible ten, if it makes one soccer net. Which statement correctly compares the two businesses?
Sabrina’s Soccer has a comparative advantage over Stan’s Sporting Goods because Sabrina’s Soccer has a lower opportunity cost.
Stan’s Sporting Goods has a comparative advantage over Sabrina’s Soccer because Stan’s Sporting Goods has a lower opportunity cost.
Sabrina’s Soccer has an absolute advantage over Stan’s Sporting Goods because Sabrina’s Soccer has a lower production cost.
Stan’s Sporting Goods has an absolute advantage over Sabrina’s Soccer because Stan’s Sporting Goods has a lower production cost.
Answer:
Sabrina’s Soccer has a comparative advantage over Stan’s Sporting Goods because Sabrina’s Soccer has a lower opportunity cost.
Answer: A
Explanation: PogChamp
Implement a table and re-organize your page contents so that it is displayed within the table (you can organize the table's content as you like).
2) Add one external CSS file and apply it to your 2 pages (the style sheet should have at least Fonts, Color, sizing and background). The CSS should provide a uniform look/feel between the 2 pages.
Answer:
just here for points
Explanation:
iskksns
today, many long-term care policies are treated as tax-qualified contracts. Which of the following is not correct regarding tax-qualified long-term care contracts?
A. Tax-qualified long-term care policies must provide benefits that are limited to long-term care services.
B. These policies can be provided under an employer sponsored cafeteria plan.
C. These policies allow employers to provide this benefit, take a curent income tax deduction and allow the employee to avoid income inclusion.
D. The premiums for these policies may be deductible either above the line or below line.
Answer:
C. These policies allow employers to provide this benefit, take a current income tax deduction and allow the employee to avoid income inclusion.
Explanation:
Tax qualified long term care contracts usually insurance policies which provide benefit to the company and policy amounts can be deducted from the tax. These benefits are limited to the long term care services. The premium amount of these policies is deductible which provide tax benefit.
Suppose that a Country Club is considering what price to charge for adults. They know that if they charge a price of $100 then 70 adults will join and if they charge a price of $120 then 50 adults will join. What is the absolute value of the price elasticity of demand for adults at this Country Club
Answer:
1.43
Explanation:
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 =120 /100 - 1 = 0.2
Quantity = 50/ 70 - 1 = 0.2857
0.2857 / 0.2 = 1.43
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
p = 0,2
=0.2857
Which of the following has the greatest impact on how long an employee stays with an organization and how productive the employee is while there?
a. The employee's coworkers
b. The employee's relationship with their immediate manager
c. How much the employee is paid
d. Promotion opportunities
Answer: The employee's relationship with their immediate manager.
Explanation:
Despite the fact that the options given have an effect on how long an employee will stay in an organization, the greatest impact will be the employee's relationship with their immediate manager.
When a worker has a bad relationship with their immediate manager, this beings about disruption in communication and there won't be a cordial relationship with the manager. This affects the worker and can lead to the worker finding another job.
Wagner Assets Management Group holds 3 stocks in their investment portfolio. The amount of the investment and beta of each stock is listed below.
Stock Investment Beta
A $ 200,000 1.50
B 300,000 ??
C 500,000 1.20
If the beta of the portfolio is 0.75, what is the beta of stock B?
Answer:
-0.5
Explanation:
Stock Investment (W) Beta (B) W*B
A 200,000 1.50 300,000
B 300,000 X 300,000X
C 500,000 1.20 600,00
1,000,000 900,000+300,000X
Using the formula of Beta of Portfolio to find out X
0.75 = 900,000 + 300,000X / 1,000,000
0.75 * 1,000,000 = 900,000 + 300,000X
750,000 = 900,000 + 300,000X
750,000 - 900,000 = 300,000X
-150,000 = 300,000X
X = -150,000 / 300,000
X = -0.5
So, the beta of stock B is -0.5.
1. A certain family has a car loan of $24,623 with a local bank. Because of this loan balance the family would classified as a: demander of loanable funds deficit savings unit deficit budget unit all of the above none of the above
Answer: None of the above
Explanation:
The deficit spending unit is used in describing a scenario when an economy, the household or firm, has spent more than it earned for a particular period of time.
Since the family has a car loan of $24,623 with a local bank, thus means that they spent more than they earned and therefore took loans and are a deficit spending unit.
Since the option isn't given, the correct option is None of the above.
Find the intrinsic value of XYZ Inc. The DPS at the end of year 1 is $2.00; at the end of year 2 is $2.40; at the end of year 3 is $2.70. After the third year, the DPS grows at a constant rate of 5%. The required rate of return is 12%.
Answer: 34.33
Explanation:
Firstly, we'll calculate the terminal value
which willl be:
= 2.70 × (1+5%)/(12% - 5%)
= 2.70 x 1.05/(0.12 - 0.05)
= 40.5
Then, the intrinsic value will be:
= 2/1.12 + 2.4/1.12² + (2.7 + 40.5)/1.12³
= 34.33
Therefore, the the intrinsic value of XYZ Inc is 34.33
Thirsty Cactus Corp. just paid a dividend of $1.50 per share. The dividends are expected to grow at 25 percent for the next 9 years and then level off to a 5 percent growth rate indefinitely. If the required return is 13 percent, what is the price of the stock today?
Answer:
$143.40
Explanation:
The dividend for the next year = [tex]\text{ current year dividend} \times (1 + \text{growth})[/tex]
= $ 1.50 x (1 + 0.13)
= 1.50 x 1.30
= $ 1.95
The dividend in the second year = 1.95 x 1.30
= $ 2.54
Similarly, the dividend for the year 9 is = [tex]$1.50 \times (1.30)^9$[/tex]
= $ 15.91
The value of the stock at the end of year 9,
[tex]$=\frac{\text{Dividend of year 10}}{\text{(Required rate of return - Growth rate)}}$[/tex]
[tex]$=\frac{15.91\times1.05}{0.13-0.05}$[/tex]
= $ 208.81
The present value factor [tex]$=\frac{1}{(1+r)^n}$[/tex]
where, r = rate of interest = 13% = 0.13
n = years (1 to 9)
So, the present value factor for the 2nd year is [tex]$=\frac{1}{(1+0.13)^2}$[/tex]
[tex]$=\frac{1}{(1.13)^2}$[/tex]
[tex]$=\frac{1}{1.2769}$[/tex]
= 0.783147
Therefore, the price of the stock today is calculated as to be $ 143.40
Allen Green is a single taxpayer with an AGI (and modified AGI) of $214,000, which includes $172,000 of salary, $26,200 of interest income, $10,400 of dividends, and $5,400 of long-term capital gains. What is Allen's net investment income tax liability this year, rounded to the nearest whole dollar amount
Answer:
$532
Explanation:
The income that is considered for NIIT is the (a) lesser of the net investment income or (b) the amount by which MAGI exceeds the applicable threshold.
a. $42,000 ($26,200 interest income + $10,400 dividends + $5,400 Long-term capital gains)
b. $14,000 ($214,000 - $200,000)
Note: MAGI threshold of $200,000 for single taxpayer is applicable before they fall under the NIIT bracket of 3.8% of tax.
Net Investment Income = $14,000
Net investment income tax liability = Net Investment Income * 3.8%
Net investment income tax liability = $14,000 * 3.8%
Net investment income tax liability = $532
So, Allen's net investment income tax liability this year is $532.
Suppose velocity is constant, but real GDP is not independent of the money supply. If this is the case, a 10 percent increase in the money supply will:
Answer: d. have an unpredictable effect on inflation.
Explanation:
Changes in money supply affect inflation with an increase in money supply causing inflation to rise and a decrease calling inflation to fall. Real GDP is supposed to be independent of the money supply as it is not meant to be affected by inflation.
If a situation arises where real GDP is not actually independent of the money supply then that means that it is not independent of inflation either. Should the money supply therefore rise, the effect on the prices of goods and services (real GDP) in the economy will be unpredictable as it might go either way.
Davis Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Material costs 7,500 75% Conversion costs 4,999 45% A total of 5,400 units were started and 4,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs $112,900 Conversion costs $93,900 The ending inventory was 85% complete with respect to materials and 30% complete with respect to conversion costs. The cost per equivalent unit for materials for the month in the first processing department is closest to:__________.
a. $21.37
b. $19.47
c. $20.04
d. $20.76
Answer:
The answer is "21.37'
Explanation:
Please find the solution in the attached file.
If there is a shortage in the market, the market price is too _______________. The quantity demanded will be ________________ the quantity supplied. Thus, the market price must ____________ , which will _____________ the quantity supplied and ____________ the quantity demanded.
Answer:
low
greater
increase
increase
decrease
Explanation:
Equilibrium price is the price at which quantity demand equal quantity supplied. Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded.
Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied
When there is a shortage in the market, the market price is too low. As a result, quantity demanded exceeds quantity supplied. Shortage would lead to an increase in price towards equilibrium. This would lead to an increase in the quantity supplied and a decrease in quantity demanded
Which of the following would be relevant in the make or buy decision? Direct materials Depreciation on equipment with no resale value A) Yes Yes B) Yes No C) No Yes D) No No
Answer:
B) Yes No
Explanation:
Materials cost are incremental and relevant whereas Depreciation on equipment with no resale value are irrelevant.
MC Qu. 98 At the beginning of the recent... At the beginning of the recent period, there were 1,470 units of product in a department, 35% completed. These units were finished and an additional 6,900 units were started and completed during the period. 1,560 units were still in process at the end of the period, 25% completed. Using the weighted average method, the equivalent units produced by the department were:
Answer:
Using the weighted average method, the equivalent units produced by the department were:
= 8,760 units.
Explanation:
a) Data and Calculations:
Units Conversion
Ending inventory 1,560
Units completed 8,370
Units available 9,930
Beginning inventory 1,470 35%
Additional units started 8,460
Equivalent units of production:
Units completed 8,370 8,370 (100%)
Ending inventory 1,560 390 (25%)
Equivalent units of production 8,760
You want to invest $37,000 today to accumulate $41,650 to buy a car. If you can invest at an interest rate of 3% compounded annually, how many years will it take to accumulate the required amount
Answer:
4 years
Explanation:
It takes 4 years to accumulate the required amount.
