Answer:
S/N Journal Entries Debit Credit
1 Accumulated depreciation-Building $210,000
Cash $210,000
2 Building $790,000
Cash $790,000
3 Maintenance expense $16,500
Cash $16,500
4 Equipment $44,000
Cash $44,000
MC Qu. 91 Raven Company has a target of earning... Raven Company has a target of earning $70,100 pre-tax income. The contribution margin ratio is 32%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $36,200
Answer:
The amount of dollar sales must be achieved to reach the goal is $331,875.
Explanation:
This can be calculated using the following formula:
Amount of dollar sales required = (Targeted pre-tax income + Fixed costs) / Contribution margin ratio ……..(1)
Where:
Amount of dollar sales required = ?
Targeted pre-tax income = $70,000
Fixed costs = $36,200
Contribution margin ratio = 32%, or 0.32
Substituting all the values into equation (1), we have:
Amount of dollar sales required = ($70,000 + $36,200) / 0.32 = $106,200 / 0.32 = $331,875
Thereforee, the amount of dollar sales must be achieved to reach the goal is $331,875.
Fortune Drilling Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. What journal entry would be needed to record the expense for the first year assuming 418,000 tons were mined
Answer and Explanation:
the journal entry is given below:
Depletion Expense $1,358,500
To Accumulated Depletion $1,358,500.
(Being depletion expense is recorded)
Here the depletion expense is debited as it increased the expense and credited the accumulated depreciation as it decreased the assets
Working note
Depletion expense is
= ($5,900,000 + $600,000) ÷ $2,000,000 × 418,000
= $1,358,500
The most common measure of __________ is the spread between the number of shares which advance in price and the number of shares which decline in price.
A. market breadth
B. market volume
C. odd-lot trading
D. short interest
Answer:
A)market breadth
Explanation:
Breadth of market can be regarded as indicator that is been utilized in security analysis. It can be computed on a stock market through finding the ratio of advancing stocks numbers to that of number of declining stocks.
It should be noted that the The most common measure of market breadth is the spread between the number of shares which advance in price and the number of shares which decline in price.
Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $7.70. You believe that dividends will grow at a rate of 25.0% per year for two years, and then at a rate of 5.0% per year thereafter. You expect the stock will sell for $35.09 in two years. You expect an annual rate of return of 23.0% on this investment. If you plan to hold the stock indefinitely, what is the most you would pay for the stock now
Answer:
$38.98
Explanation:
The maximum amount a rational investor would pay for the stock is the present value of its future dividends and the present value of the terminal value of dividends beyond year 2(the price at the end of year 2) discounted at the investor's rate of return which is 23.0%
Year 1 dividend=$7.70*(1+25.0%)=$9.63
Year 2 dividend=$9.63*(1+25.0%)=$12.04
Share price at the end of year 2=$35.09(the 5.0% is of no use since terminal value beyond has been given)
price of the stock=$9.63/(1+23.0%)^1+$12.04/(1+23.0%)^2+$35.09/(1+23.0%)^2
price of the stock=$38.98
Nakatomi Corporation produces 10,000 units of Product A at a cost of $20 per unit. A detailed breakdown of the cost is below. Per Unit Variable costs $ 12 Allocated manufacturing overhead costs 3 Allocated general administrative costs 5 $ 20 Outside supplier's offer $ 17 What are the total relevant cost of producing the units internally
Answer: $120,000
Explanation:
Fixed costs are not considered to be relevant costs because they will be incurred by the business regardless. Variable costs are therefore the only relevant costs and in this case the variable costs are:
= Number of units * variable costs per unit
= 10,000 units * 12
= $120,000
Costs: Costs in beginning Work in Process - Direct Materials: $58,000. Costs in beginning Work in Process - Conversion: $63,850. Costs incurred in February - Direct Materials: $388,250. Costs incurred in February - Conversion: $614,150. Calculate the cost per equivalent unit of materials.
Answer: $2.05 per unit
Explanation:
First find out the Equivalent units for materials:
= Units started and completed + Ending work in process
= 180,000 + 37,500
= 217,500 units
Find out total cost of materials:
= Costs in beginning Work in Process for materials + Cost incurred in February
= 58,000 + 388,250
= $446,250
Cost per equivalent unit:
= Total costs / Equivalent units
= 446,250 / 217,500
= $2.05 per unit
Martha works as a window dresser in her hometown of Victoria BC. She charges $16.72/h and it takes her 5 hours to finish the window display at a local department store. How much will her gross pay be for the job
Answer:
Her gross pay for the job will be $ 83.6.
Explanation:
Given that Martha works as a window dresser in her hometown of Victoria BC, and she charges $ 16.72 / h and it takes her 5 hours to finish the window display at a local department store, to determine how much will her gross pay be for the job the following calculation must be performed:
16.72 x 5 = X
83.6 = X
Therefore, her gross pay for the job will be $ 83.6.
Given direct material cost of $10, direct labor cost of $15, direct-labor based overhead of $12 and Activity-Based Costing overhead of $16, the total cost of the product using Activity-Based costing is $___________ . (Enter your answer as a whole number.)
Answer:
Total cost of product using the Activity-Based costing
Particulars Amount
Material cost $10
Labor cost $15
Overheads cost under ABC $16
Total cost of product $41
Employees earn vacation pay at a rate of one day per month. The company estimated and must expense $1,500 of accrued vacation benefits for the year. Which of the following is the necessary year-end adjusting entry to record accrued vacation benefits?
a) Debit Vacation Benefits Expense $1,500; credit Prepaid Vacation $1,500.
b) Debit Vacation Benefits Expense $1,500; credit Vacation Benefits Payable $1,500.
c) Debit Payroll Tax Expense $1,500: credit Payroll Taxes Payable $1.500.
d) Debit Prepaid Vacation Benefits $1,500; credit Vacation Benefits Payable $1,500
Answer:
b) Debit Vacation Benefits Expense $1,500; credit Vacation Benefits Payable $1,500.
Explanation:
The journal entry to record the accrued vacation benefit is given below:
Vacation Benefits Expense $1,500
To Vacation Benefits Payable $1,500
(being the accrued vacation benefit is recorded)
Here vacation benefit expense is debited as it increased the assets and credited the vacation benefit payable as it also increased the liabilities
how many years will be required for a given sum of money to triple, if it is deposited in a bank account that pays 6% per year compound annualy
Answer:
19 years
Explanation:
the 19th year your money will triple and be worth 3.0256 times the original sum.
Michael’s basement recently flooded. He has a homeowner’s policy covering flood damage that has a $500 deductible. The total damages to the basement totaled $2500. How much will the insurance company pay in this scenario? A. $500 B. $2500 C. nothing D. $2000
Answer:
D. $2000
Explanation:
Calculation to determine How much will the insurance company pay in this scenario
Using this formula
Amount to pay=Total damages -Deductible homeowner’s policy covering flood damage
Let plug in the formula
Amount to pay=$2,500-$500
Amount to pay=$2,000
Therefore How much will the insurance company pay in this scenario will be $2,000
The Correct Answer: $2000
Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machines' first year depreciation under the double-declining-balance method. Multiple Choice $66,000. $25,800. $24,000. $54,000. $48,000.
Answer:
$24,000
Explanation:
Calculation to determine the machines' first year depreciation under the double-declining-balance method.
Using this formula
Depreciation Expense = (Cost - Salvage Value)/Estimated Useful Life
Let plug in the formula
Depreciation Expense = ($135,000 - $15,000)/5
Depreciation Expense=$120,000/5
Depreciation Expense= $24,000
Therefore the machines' first year depreciation under the double-declining-balance method is $24,000
Revising for clarity is an important revision task. Clear messages are immediately understood and appreciated. To improve the clarity of your message, keep your sentences short and simple, and dump trite business phrases.
Which of the following sentences employ the KISS formula? Check all that apply.
We are processing your request to the best of our abilities.
Our company is pleased to have processed your request.
Your request is noteworthy and has been processed through the correct channels.
Your request has been processed.
The trite business phrase as per your request can be revised as .
Determine which revision of each the following sentences provides the most clarity.
I would like to take this opportunity to inform you that the changes to your account will post soon.
As per your verbal instruction, changes to your account will post on Tuesday.
I am taking this opportunity to inform you that changes to your account will post on Tuesday.
The changes to your account will post on Tuesday.
Pursuant to your request, the sales managers will be a ubiquitous presence in case they are needed.
Every effort will be made for sales managers to be available if needed.
Sales managers are available if needed.
Per your request, the sales managers should be an omnipresent presence if needed.
Which sentence provides the most clarity?
Mary, from human resources, would like to explain the changes with reference to your employee benefits.
Mary, from human resources, will explain the changes to your employee benefits.
In accordance with company policy, the human resources associate would like to codify the new employee benefits information.
Answer:
ANSWERS TO PART A: Sentence 2 and Sentence 4
ANSWER TO PART B: Sentence 3
ANSWER TO PART C: Sentence 3
ANSWER TO PART D: Sentence 2
Explanation:
In Part A, which of the sentences employs the Keep It Short & Simple formula?
We start by labelling the sentences and then selecting the right answers.
Remember the rules are that the sentences must not be long and complex and also must not contain trite business phrases.
1. We are processing your request to the best of our abilities.
2. Our company is pleased to have processed your request.
3. Your request is noteworthy and has been processed through the correct channels.
4. Your request has been processed.
PART B: Which sentence provides the most clarity?
1. I would like to take this opportunity to inform you that the changes to your account will post soon.
2. As per your verbal instruction, changes to your account will post on Tuesday.
3. I am taking this opportunity to inform you that changes to your account will post on Tuesday.
4. The changes to your account will post on Tuesday.
PART C: Which sentence provides the most clarity?
1. Pursuant to your request, the sales managers will be a ubiquitous presence in case they are needed.
2. Every effort will be made for sales managers to be available if needed.
3. Sales managers are available if needed.
4. Per your request, the sales managers should be an omnipresent presence if needed.
PART D: Which sentence provides the most clarity?
1. Mary, from human resources, would like to explain the changes with reference to your employee benefits.
2. Mary, from human resources, will explain the changes to your employee benefits.
3. In accordance with company policy, the human resources associate would like to codify the new employee benefits information.
A firm sells two products, Regular and Ultra. For every unit of Regular the firm sells, two units of Ultra are sold. The firm's total fixed costs are $1,536,000. Selling prices and cost information for both products follow. What is the firm's break-even point in units of Regular and Ultra?
Answer:
regular - 32,000
ultra - 64,000
Explanation:
Please find the remaining part of this question in the attached image
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
Contribution margin :
Regular = 22 - 8 = 14
Ultra = 25 - 8 = 17
weighted contribution margin = (1/3 x 14) + (2/3 x 17) = 16
Firms breakeven = $1,536,000 / $16 = 96,000
Regular's breakeven = 1/3 x 96,000 = 32,000
Ultra's breakeven = 2/3 x 96,000 = 64,000
Swifty Corporation is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Swifty would sell it for $56. The cost to assemble the product is estimated at $20 per unit and the company believes the market would support a price of $69 on the assembled unit. What decision should Swifty make
Answer:
See below
Explanation:
Assembled product
Cost = $24 + $20 = $44
Selling price = $69
Profit = $69 - $44 = $25
Unassembled product
Cost = $24
Selling price = $56
Profit = $56 - $24 = $32
Therefore, Swifty corporation should sell before assembly, the company will be better off by $7
In 2020, Wild Corporation reported a net loss of $70,000. Wild's only net income adjustments were depreciation expense $81,000, and increase in accounts receivable $8,100. Compute Wild's net cash provided (used) by operating activities.
Answer:
$2,900
Explanation:
Computation for Wild's net cash provided (used) by operating activities.
Net income adjustments $81,000
Less increase in accounts receivable ($8,100)
$72,900
Less reported net loss $70,000
Net cash provided (used) by operating activities $2,900
($72,900-$70,000)
Therefore net cash provided (used) by operating activities will be $2,900
Consider the P/E ratios of the following companies: Company A: 7.4 Company B: 11.3 Company C: 14.8 Company D: 9.1 Among these four companies, Company C has the __________. highest relative value highest dollar price lowest relative value lowest net income
Answer:
highest relative value highest dollar
Explanation:
The price to earning ratio is a financial metric used to value a company. it compares the price of a stock to the earnings of the stock. the higher the metric is, the higher the valuation of the firm
price to earning ratio (P / E) = market value per share / earnings
The higher the P/E, the higher the relative value of the firm relative to other firms. This is because investors are confident about the prospects of growth of the firm and are willing to pay a higher price for the stock of the company
Types of P/E ratio
1. trailing p/e - it is calculated by dividing current share price by the earnings per share for the past 12 months
2. forward p/e - it is calculated by dividing current share price by the estimated per share earnings for the next 12 months
One of the sales consultants at Ebhayi furniture store is performing very poorly. She arrives late for work and phones in sick at least once a month. She is also rude to customers and doesn't mix well with the other staff. The owner has asked you to deal with it. Discuss how you will handle this staff member.
Explanation:
i will give many works like carpenter and also I give her my position just for one day to maintain the shop . I think if she do shop owner's work she will definitely understand it and she becomes change
(or)
I will bring the same worker like she and the staff will behave rude to her and she becomes change if she understand the rude staff disturbance that how all staffs and customers feel like her. one day her behaviour will change
Starfish Enterprises produces men’s sports coats that are sold by popular department stores. Each retail order is treated as a job that accumulates materials, labor, and overhead costs for a batch of sports coats. Material costs for a selected job is $900 for a batch of 30 suit coats (units). The material cost per unit is ________. $27.00 $30.00 $27.70 $26.00
Answer:
Unitary cost= $30
Explanation:
Giving the following information:
Material costs for a selected job are $900 for a batch of 30 suit coats (units).
To calculate the unitary cost, we need to use the following formula:
unitary cost= total batch cost / number of units
unitary cost= 900 / 30
unitary cost= $30
Warby Parker, an online retailer for prescription eyewear, offers a free, try-on at home program for its customers. Customers browse frames on Warby Parker’s website and select five pairs they would like to try on before buying—or not. Warby Parker handles all the shipping costs and provides all the return packaging. This relates to the________ of its products. Multiple Choice
a. relative advantage
b. complexity
c. observability
d. compatibility
e. trialability
Answer:
e. trialability
Explanation:
Trialability is the ability to give an idea, process, product, or system a trial before making a final decision.
It indicates the degree to which a product or innovation can be experimented by the customer before they finally buy.
Warby Parker has leveraged on this strategy by allowing customers browse frames on Warby Parker’s website and select five pairs they would like to try on before buying—or not. Warby Parker handles all the shipping costs and provides all the return packaging
Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 9% with semiannual payments of $45, and a par value of $1,000. The price of each bond in the issue is $1,180.00. The bond issue is callable in 5 years at a call price of $1,090.
Required:
a. What is the bond's nominal annual yield to maturity (YTM)?
b. What is the bond's nominal annual yield to call (YTC)?
c. Assuming interest rates remain at current levels, will the bond issue be called?
Answer:
a. Nper = 30
PMT = 45
FV = `1000
Price Pv = -1180
Rate (YTM) = ?
Using the MsExcel Rate function to derive YTM
Nominal annual yield to maturity = Rate(Nper, Pmt, -Pv, Fv) * 2
Nominal annual yield to maturity = Rate(30, 45, -1180, 1000) * 2
Nominal annual yield to maturity = 7.04%
b. Nper = 10
PMT = 45
Call Price = 1090
Price Pv = -1180
Rate (YTC) = ?
Using the MsExcel Rate function to derive YTM
Nominal annual yield to call = Rate(Nper, Pmt, -Pv, Fv) * 2
Nominal annual yield to call = Rate(10, 45, -1180, 1090) * 2
Nominal annual yield to call = 6.31%
C. Yes, the bond issue should call because the YTC is less than the YTM.
Beta Inc. can produce a unit of Zed for the following costs: Direct material $ 10 Direct labor 20 Overhead 50 Total costs per unit $ 80 An outside supplier offers to provide Beta with all the Zed units it needs at $58 per unit. If Beta buys from the supplier, it will still incur 40% of its overhead. Beta should:
Answer: Beta should buy from the outside supplier
Explanation:
If Beta produces the product itself, only avoidable costs would be accounted for:
= Direct labor + Direct material + Unavoidable overhead
= 10 + 20 + ( (1 - 40%) * 50)
= 10 + 20 + 30
= $60
If however, Beta buys the product, they will buy at $58 per unit which is less than the $60 they would make it for.
Beta should buy the product because they will be able to save $2 per unit.
Job candidates are leaving an office every 50 minutes. Each candidate goes through three activities during the office visit: verification, written test, and interview. Verification takes 1 minute, the written test takes 40 minutes, and the interview takes 10 minutes. Assume there is only one resource dedicated to each activity. What is the utilization of the bottleneck resource?
Answer:
80%
Explanation:
Calculation to determine the utilization of the bottleneck resource
First step is to calculate the Flow rate
Flow rate = 1/50
Flow rate = 0.02 customer per minute.
Second step is to calculate the Bottleneck capacity
Bottleneck capacity = Min(1, 1/40, 1/10)
Bottleneck capacity= 0.025 customer per minute.
Now let determine the Utilization of the bottleneck resource using this formula
Utilization of the bottleneck resource = Flow rate/Capacity
Let plug in the formula
Utilization of the bottleneck resource= 0.02/0.025
Utilization of the bottleneck resource= 80%.
Therefore the utilization of the bottleneck resource is 80%
The ACogs-153 company has provided the following data for the month of May: Inventories: Beginning Ending Work in process $ 24,000 $ 19,000 Finished goods $ 53,000 $ 57,000 Additional information: Direct materials $ 64,000 Direct labor cost $ 94,000 Manufacturing overhead cost incurred $ 70,000 Manufacturing overhead cost applied to Work in Process $ 68,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The company's adjusted cost of goods sold (that is, cost of goods sold adjusted for underapplied or overapplied overhead) for May is:
Answer:
$209,000
Explanation:
Schedule of Cost of goods manufactured
Particulars Amount
Direct materials $64,000
Direct labor cost $94,000
Manuf. overhead cost applied to WIP $68,000
Total manufacturing costs $226,000
Add: WIP Inventory, Beginning $24,000
Less: WIP Inventory, Ending $19,000
Cost of goods manufactured $231,000
Add: Beginning Finished goods $53,000
Less: Ending Finished goods $57,000
Unadjusted cost of goods sold $207,000
Add: Underapplied manuf. overhead $2,000 ($70,000-$68,000)
Adjusted cost of goods sold $209,000
Gabriele Enterprises has bonds on the market making annual payments, with nine years to maturity, a par value of $1,000, and selling for $978. At this price, the bonds yield 7.4 percent. What must the coupon rate be on the bonds
Answer:
7.06%
Explanation:
The computation of the coupon rate is given below:
Given that
FV is $1,000
PV is $978
NPER is 9
RATE is 7.4%
The formula is given below:
=PMT(RATE,NPER,-PV,FV,TYPE)
After applying the above formula, the PMT is $70.57
Now the coupon rate is
= $70.57 ÷ $1,000
= 7.06%
Currently, the unit selling price of a product is $350, the unit variable cost is $290, and the total fixed costs are $780,000. A proposal is being evaluated to increase the unit selling price to $390.
Required:
a. Compute the current break-even sales (units).
b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $390, and all costs remain constant.
Solution :
a). [tex]\text{The contribution margin per unit = }[/tex][tex]\text{selling price per unit - variable cost per unit}[/tex]
= $ 350 - $ 290
= $60
The current break even sales = [tex]$\frac{\text{fixed cost}}{\text{contribution margin per unit}}$[/tex]
[tex]$=\frac{780,000}{60}$[/tex]
= 13,000 units
Therefore, the current break-even sales (units) = 13,000 units
b). The Contribution Margin Ratio = Selling Price Per Unit - Variable Cost Per Unit
= $390 - $290
= $ 100
[tex]$\text{Break even sales}=\frac{\text{fixed cost}}{\text{contribution margin per unit}}$[/tex]
[tex]$=\frac{780,000}{100}$[/tex]
= 7,800 units.
So, the answer is 7800 units.
Given the following information, determine the amount of cash on the balance sheet, assuming that the company has only three assets.
Liabilities equal $3,350
Owner's equity equals $28,000
Supplies equal $2,000
Land equals $23,500
Answer:
Cash balance = $5850
Explanation:
Below is the given values and calculations:
Liabilities = $3350
Equity = $28000
Supplies = 2000
Land = $23500
Cash on the balance sheet can be determined by subtracting the sum of supplies and land from the sum of liability and equity.
Cash balance = (28000 + 3350) - (2000 + 23500)
Cash balance = $5850
Sheridan Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $28 per year. During November 2022, Sheridan sells 10,500 subscriptions for cash, beginning with the December issue. Sheridan prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. The company has a December 31 year-end.
Required:
Prepare the entry in November for the receipt of the subscriptions.
Answer and Explanation:
The journal entry to record the receipt of the subscription is as follows:
Cash ($28 × 10,500) $294,000
To Unearned Subscription Revenue $294,000
(being the receipt of the subscription is recorded)
Here the cash is debited as it increased the assets and credited the unearned subscription revenue as it also increased the revenue
Bluebean Inc. produces two lines of coffee cups: espresso coffee cups and travel coffee mugs. The unit cost information is shown here. The company uses a traditional volume-based costing system and believes that the number of labor hours is the appropriate cost driver
Activity Cost Pool Espresso Coffee Cups Travel Coffee Mugs
Selling price $20 $25
Direct materials $6 $8
Direct labor $2 $5
Units produced 10,000 units 4,000 units
Direct labor hours 10,000 hours 6,000 hours
Estimated total overhead costs $80,000
Item Espresso coffee cups Travel coffee mugs
Pre-determined overhead rate
Total manufacturing overhead allocated
Manufacturing cost per unit
Gross profit unit
Answer:
Results are below.
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 80,000 / (10,000 + 6,000)
Predetermined manufacturing overhead rate= $5 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Espresso coffee cups= 5*10,000= 50,000
Travel coffee mugs= 5*6,000= 30,000
In unitary bases:
Espresso coffee cups= 50,000/10,000= 5
Travel coffee mugs= 30,000/4,000= 7.5
Finally, the total unitary cost and the gross profit per unit:
Espresso coffee cups:
Total unitary cost= 6 + 2 + 5= $13
Gross profit= 20 - 13= $7
Travel coffee mugs:
Total unitary cost= 8 + 5 + 7.5= $20.5
Gross profit= 25 - 20.5= $4.5
If a candidate is denied a license due to information obtained in the mandatory criminal background check, how
long do they have to request a hearing with NCREC?
Answer:
60 days
Rationale: The criminal background check is obtained by the candidate at NCREC.Check.com. The background check will be reviewed by NCREC after the candidate passes the examination and before a license is issued.
