Answer:
Wholesale Guitars
WHOLESALE GUITARS
Departmental Contribution Income Statements
For Year Ended December 31, 2013
Acoustic Electric
Sales $ 111,500 $ 105,500
Cost of goods sold 55,675 66,750
Variable operating expenses 29,480 24,200
Total variable costs $85,155 $90,950
Contribution margin $26,345 $14,550
Total fixed (indirect) costs $17,225 $14,750
Net operating income (loss) $9,120 $(200)
Explanation:
a) Data and Calculations:
WHOLESALE GUITARS
Departmental Income Statements
For Year Ended December 31, 2013
Acoustic Electric
Sales $ 111,500 $ 105,500
Cost of goods sold 55,675 66,750
Gross profit 55,825 38,750
Operating expenses
Advertising expense 8,075 6,250
Depreciation expense-equipment 10,150 9,000
Salaries expense 17,300 13,500
Supplies expense 2,030 1,700
Rent expense 6,105 5,950
Utilities expense 3,045 2,550
Total operating expenses 46,705 38,950
Net income (loss) $ 9,120 $ (200 )
Total operating expenses 46,705 38,950
Less fixed costs:
Advertising expense 8,075 6,250
Rent expense 6,105 5,950
Utilities expense 3,045 2,550
Total fixed (indirect) costs $17,225 $14,750
Variable operating expenses $29,480 $24,200
Now- a quick question. Assume at the beginning of Year2, Becker Company has a credit (positive) balance in the AOCI account of $10800. Becker Company reports $653000 of net income for Year2. Becker has an unrealized gain of $12000 during Year2. The gain qualifies as OCI (Other comprehensive income). 1. What will Becker report as Accumulated Other Comprehensive Income on the Year2 balance sheet
Answer:
Becker Company
The amount that Becker will report as Accumulated Other Comprehensive Income on the Year 2 balance sheet is:
= $22,800.
Explanation:
a) Data and Calculations:
Year 2 Beginning balance:
Accumulated other comprehensive income (AOCI) = $10,800 credit
Year 2 reported net income = $653,000
Unrealized gain during Year 2 = $12,000
The Accumulated Other Comprehensive Income on the Year 2 balance sheet is:
Beginning balance $10,800
Unrealized gain 12,000
AOCI for Year 2 = $22,800
b) Becker's Accumulated Other Comprehensive Income includes unrealized gains and losses arising from some investments, pension plans, and hedging transactions. These are usually reported in the equity section of the balance sheet and then netted off from the retained earnings.
One key characteristic that is distinctive of an oligopoly market is that Group of answer choices the demand curve facing each firm is downward sloping, with a marginal revenue curve that lies below the firm's demand curve. the decisions of one seller often influence the price of products, the output, and the profits of rival firms. there is only one firm that produces a product for which there are no good substitutes. there are many sellers in the market and each is small relative to the total market.
Answer:
The decisions of one seller often influence the price of products, the output, and the profits of rival firms.
Explanation:
An oligopoly is a market structure where there are only a few sellers. Therefore, around two or more firms have control over the market. Collectively, they can influence the prices and supply.
This ultimately results in high-level competition between these sellers. Since there are a few sellers in the oligopoly structure, each of these company's profit levels not only depends on the decisions made by them but also on the decisions made by their rival firms.
Hence, option no. 3 "the decisions of one seller often influence the price of products, the output, and the profits of rival firms" is correct.
A company paid $0.85 in cash dividends per share. Its earnings per share is $3.50, and its market price per share is $35.50. Its dividend yield equals:
Answer: 2.4%
Explanation:
Cash dividend = $0.85
Earnings per share = $3.50
Market price per share = $35.50
The dividend yield will be calculated as:
= Cash dividends / Market price per share
= $0.85 / $35.50
= 0.024
= 2.4%
The dividend yield is 2.4%.
Firm A has a 21 percent marginal tax rate, and Firm Z has a 28 percent marginal tax rate. Firm A owns a controlling interest in Firm Z. The owners of Firm A decide to incur a $9,500 deductible expense that will benefit both firms.
Required:
Compute the after-tax cost of the expense assuming that:
a. Firm A incurs the expense
b. Firm Z incurs the expense
Answer:
a. $7,505
b.$6,840
Explanation:
a. Computation for the after-tax cost of the expense assuming that Firm A incurs the expense
Using this formula
After-tax cost = Deductible Expense - (Firm A Marginal tax rate* Deductible Expense)
Let plug in the formula
After-tax cost = ($9,500 - ($21%*9500)
After-tax cost = ($9,500 - $1,995)
After-tax cost=$7,505
Therefore the after-tax cost of the expense assuming that Firm A incurs the expense is $7,505
B. Computation for the after-tax cost of the expense assuming that Firm Z incurs the expense
Using this formula
After-tax cost = Deductible Expense - (Firm Z Marginal tax rate*Deductible Expense)
Let plug in the formula
After-tax cost =$9,500 -(28%*$9500)
After-tax cost =($9,500 - $2,660 )
After-tax cost=$6,840
Therefore the after-tax cost of the expense assuming that Firm Z incurs the expense is $6,840
Select the market segment that looks the most promising?
1. Luxury trenfollowers
Segment size 5,000(5%)
Growth rate 7%
2. School children
Segment size 35,000 (35%)
Growth rate 1%
3. University students
Segment size 24,099(24%)
Growth rate 5%
4. Outdoor enthusiasts
Segment size 14,000 (14%)
Growth rate 5%
5. Urban commuters
Segment size 20,000 (20%)
Growth rate 3%
Answer:
Luxury Trend followers
Explanation:
The consider which market segment shows the most or higest level of promise, we may have to the growth rate of each segment, which is the percentage change in earnings or revenue over a specific period of time. From the data given, the market segment with the greatest growth rate is the trend followers segment with a growth rate of 7%
Luxury trend followers : 7%
School children : 1%
University students : 5%
Outdoor enthusiasts : 5%
Urban Commuters : 3%
Activity A is worth $100, is complete, and actually cost $150. Activity B is worth $500, is 75% complete, and has actually cost $400 so far. Activity C is worth $500, is 25% complete, and has actually cost $200 so far. What is the estimated cost at completion for this project, assuming current variances are typical of future variances?
Answer:
$1,375
Explanation:
Budget at completion = Worth of activity A + Worth of activity B + Worth of activity C
Budget at completion = $100 + $500 + $500
Budget at completion = $1,100
Earned value = Worth of activity A*% completed + Worth of activity B*% completed + Worth of activity C*% completed
Earned value = $100*100% + $500*75% + $500*25%
Earned value = $100 + $375 + $125
Earned value = $600
Actual cost = Actual cost of Activity A + Actual cost of Activity B + Actual cost of Activity C
Actual cost = $150 + $400 + $200
Actual cost = $750
Cost performance Index = Earned value / Actual cost
Cost performance Index = $600 / $750
Cost performance Index = 0.80
Cost performance Index = 80%
Estimate at completion = Budget at completion / Cost performance Index
Estimate at completion = $1,100 / 0.80
Estimate at completion = $1,375
Which of the following is a major difference between a budget constraint and production possibilities frontier?
a. A production possibilities frontier conveys the relative prices of the two goods, whereas a budget constraint accounts for diminishing returns.
b. A production possibilities frontier is usually straight, whereas a budget constraint is typically curved.
c. A budget constraint typically has a constant slope, whereas the slope of a production possibilities frontier is usually different at various points.
d. There is no difference. They convey the same information.
Answer:
c
Explanation:
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
The PPF is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
So, the PPF exhibits diminishing return. The slope of the PPF is different at different points. this makes the PPF a curve
the budget constraint is a straight line that shows the various combinations of goods a consumer can consume given her income. the budget constraint is a straight line because the slope is constant at each point on the curve
Also, the slope of the budget constraint is the relative prices of the two goods
Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product Z1 Product Z8 Total
Labor-related DLHs $112,190 600 2,000 2,600
Machine setups setups 40,440 500 700 1,200
Order size MHs 609,770 3,000 3,200 6,200
$762,400
The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:
$203.26 per setup
$190.55 per setup
$122.97 per setup
$33.70 per setup
Answer:
Machine setups= $33.7 per setup
Explanation:
Giving the following information:
Activity Cost Pools Activity Measures Overhead Cost Product Z1 Product Z8 Total
Machine setups setups 40,440 500 700 1,200
To calculate the activity rate for Machine setup, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine setups= 40,440 / 1,200
Machine setups= $33.7 per setup
A company's interest expense is $20,000. Its income before interest expense and income taxes is $140,000. Its net income is $58,800. The company's times interest earned ratio equals:
Answer:
7 times
Explanation:
Interest expense = $20,000
Income before interest and tax = $140,000
Time interest earned ratio = Income before interest and tax / Interest expense
Time interest earned ratio = $140,000 / $20,000
Time interest earned ratio = 7 times
Iron Company collects cash in full from a customer who purchased merchandise last month on credit. To record the receipt of cash, Iron Company should make the following entries in the general journal. (Check all that apply.) Multiple select question. Credit to Accounts Receivable Debit to Accounts Receivable Debit to Sales Credit to Cash Debit to Cash
Answer:
Credit to Accounts Receivable Debit to CashExplanation:
Accounts Receivable is an asset account that represents the cash owed to the company by customers who bought goods or services on credit.
When the credit is paid, the accounts receivable account will reduce and so will be credited because assets are credited when they reduce.
Cash on the other hand will be debited to show that it has increased as assets are debited when they increase.
Chicotti Company has 6,000 units in beginning work in process, 30% complete as to conversion costs, 75,000 units transferred out to finished goods, and 2,000 units in ending work in process 20% complete as to conversion costs. The beginning and ending inventory is fully complete as to materials costs. How much are equivalent units for materials if the FIFO method is used
Answer:
71,000
Explanation:
Calculation to determine How much are equivalent units for materials if the FIFO method is used
Using this formula
Equivalent units for materials=(Units transferred out to Finished goods + Units in ending work in process – Units in beginning work in process)
Let plug in the formula
Equivalent units for materials=75,000 + 2,000 – 6,000
Equivalent units for materials= 71,000
Therefore the equivalent units for materials if the FIFO method is used will be 71,000
Short-term investments are intended to be converted into cash within the longer of one year or the operating cycle of the business, and are readily convertible to cash. True or False
Answer:
True
Explanation:
The reasons why many companies invest in other companies includes
1. Due to excess cash not needed immediately, so invested to earn additional income to use for operations
2. Long- term strategic reasons etc
The criteria for a current asset is that the investment must be liquid and be able to convert to cash within one year (or become a long-term investment).
Short-term investments
This is a current assets. It is also called marketable securities. This is a form of an investments made in marketable securities that can be converted easily to cash which a company plans to hold for 1 year or less than one year.
The 3 categories of short-term investments. They includes:
1. Trading securities
2. available-for-sale securities
3. Held to maturity investment.
If the price elasticity of supply is 0.5 and the quantity supplied decreases by 6%, then the price must have decreased by 3%. a. True b. False
Answer: False
Explanation:
The price elasticity of supply measures the change in quantity supplied when the price changes.
The basic trend is that when price increases, quantity supplied increases as well. The reverse is true.
Price elasticity of supply = %Change in quantity supplied / % change in price
0.5 = -6% / Change in price
0.5 * Change in price = -6%
Change in price = -6% / 0.5
= -12%
The statement above is therefore false because price should have reduced by 12% for quantity supplied to reduce by 6%
Project A requires a $ 385,000 initial investment for new machinery with a five year life and a salvage value of . The company uses straight - line depreciation . Project A is expected to yield annual net income of $ 23,100 per year for the next five years.
Required:
Compute Project A's payback period.
Answer:
4.2 years
Explanation:
Here is the complete question
Project A requires a $ 385,000 initial investment for new machinery with a five year life and a salvage value of $44,000. The company uses straight - line depreciation . Project A is expected to yield annual net income of $ 23,100 per year for the next five years.
Required:
Compute Project A's payback period.
Payback = amount invested / cash flow
cash flow = net income + depreciation
depreciation = (cost of asset - salvage value) / useful life
(385,000 - 44,000) / 5 = 68,200
Cash flow = 68,200 + $ 23,100 = 91300
$ 385,000 / 91300 =4.2
Wasilko Corporation produces and sells one product The budgeted selling price per unit is $114. Budgeted unit sales for February is 9,900 units. Each unit of finished goods requires 6 pounds of raw materials. The raw materials cost $4.00 per pound. The direct labor wage rate is $24.00 per hour. Each unit of finished goods requires 2.4 direct labor-hours. Manufacturing overhead is entirely variable and is $9.00 per direct labor-hour. The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $70,000. The estimated net operating income (loss) for February is closest to:
Answer: $21,080
Explanation:
First calculate the contribution margin per unit
= Sales - Variable costs
= Selling price - Raw materials - Direct labor cost - Manufacturing overhead - Variable selling and administrative expense
= 114 - (6 * 4) - (2.4 * 24) - (9 * 2.4) - 1.60
= $9.20
The Contribution margin is:
= 9.20 * 9,900 units
= $91,080
Net operating income = Contribution margin - fixed cost
= 91,080 - 70,000
= $21,080
Troy and Devon discuss adding an automobile detailing service at their convenience store based on their customers' point of view. Which of the following is a statement that a customer might consider regarding "promotion" in the marketing mix model?
a. Customers want a high-quality automobile detail service to have their cars cleaned.
b. Customers prefer to pay a fair amount of money to receive excellent service.
c. Customers want to know the benefits of using Troy's automobile detail service.
d. Customers prefer to use services that are near their work and home.
Answer:
c. Customers want to know the benefits of using Troy's automobile detail service.
Explanation:
since in the question it is mentioned that the troy and devon wants to discuss for adding up the detaling service of the automobile so here the promotion means that the customer wants to know about the benefits for using the automobile detailing service as this service is also at their convenience store
So, the option c is correct
Which of the following is not an example of what creates a hostile work environment?
1. Displaying sexually suggestive pictures or posters
2. Making sexual comments to other employees
3. All of these
4.Dispensing Assignments based on merit.
Answer:
4.Dispensing Assignments based on merit.
Explanation:
Dispensing Assignments based on merit is not an example of what creates a hostile work environment.
There are examples of what could cause a hostile work environment which include sexual harassment, use of foul language, etc.
However, giving assignments based on merit is not one of those.
g A construction company builds roads with machinery (capital, K) and labor (L). If we plot the isoquants for the production function so that labor is on the horizontal axis, then a point on the isoquant with a small MRTS (in absolute value) is associated with high __________ use and low __________ use. A. labor; capital B. concrete; gravel C. capital; labor D. None of the above.
Answer:
A. labor; capital
Explanation:
In the production function theory, here we presume that the isoquants should be convex shaped and the MRTS should be isoquant slop that should be downward as it is shifted from left to right. Now if it is along on the horizontal axis that goes towards right so here MRTS falls and the labor rises. Due to increased in labor, the capital should falls because of the negative slope
Therefore the option a is correct
The point on the isoquant with a small MRTS (in absolute value) is associated with high labor use and low capital use.
In a production function theory, we will presume that the isoquants should be convex shaped and the MRTS should be isoquant slop hence, should be downward as it is shifted from left to right.
if the MRTS is along on the horizontal axis that goes towards right, hence, the MRTS falls and the labor rises.
Hence, due to the increase in labor, the capital should falls because of the negative slope.
Therefore, the Option A is correct since the point on the isoquant with a small MRTS (in absolute value) is associated with high labor use and low capital use.
Read more about production function theory
brainly.com/question/17247385
If the return on stock A in year 1 was 6 %, in year 2 was 3 %, in year 3 was 18 % and in year 4 was 3 %, what was the standard deviation of returns for stock A over this four year period? (Round your answer to 1 decimal place and record without a percent sign. If your final answer is negative, place a minus sign before the number with no space between the sign and the number).
Answer:
12.4
Explanation:
We need to,first of all, determine the arithmetic average return of all the returns, which is the sum of the returns divided by the number of returns
average return=(6%+3%+18%+3%)/4
average return=7.50%
Years return (return-average return) (return-average return)^2
1 6.00% -1.50% 0.022500%
2 3.00% -4.50% 0.202500%
3 18.00% 10.50% 1.102500%
4 3.00% -4.50% 0.202500%
average return 7.50% variance 1.530000%
standard deviation=variance^(1/2) 12.4%
Question
In 2 hours, China can produce 6 bottles of milk. In 5 hours, it can produce 15 batches of pumpkins. What is the country's
opportunity cost of producing 1 bottle of milk (in terms of batches of pumpkins)?
your answer below:
Answer:
China's opportunity cost of producing 1 bottle of milk is equal to one batch of pumpkins.
Explanation:
Given that in 2 hours, China can produce 6 bottles of milk, and in 5 hours, it can produce 15 batches of pumpkins, to determine what is the country's opportunity cost of producing 1 bottle of milk (in terms of batches of pumpkins), the following calculation must be performed:
Milk = 6/2 = 3 per hour
Batches of pumpkins = 15/5 = 3 per hour
3/3 = 1
Therefore, China's opportunity cost of producing 1 bottle of milk is equal to 1 batch of pumpkins.
g Find the monthly payment and estimate the remaining balance (to the nearest dollar). Assume interest is on the unpaid balance. 5-year car loan for $9700 at 5%; remaining balance after 4 years.
Answer:
Monthly payment $102.88
Outstanding balance after year 4 $1,201.76
Explanation:
First and foremost, the car loan amount of $9,700 is the present value of all monthly payments for 5 years as shown below:
PV=monthly payment*(1-(1+r)^-n/r
PV=car loan amount=$9,700
monthly payment=unknown
r=monthly interest rate=5%/12=0.004166667
n=number of monthly payments in 5 years=5*12=60
$9700=monthly payment*(1-(1+0.004166667)^-120/0.004166667
$9700=monthly payment*(1-(1.004166667)^-120/0.004166667
$9700=monthly payment*(1-0.607161016 )/0.004166667
$9700=monthly payment*0.392838984 /0.004166667
$9700=monthly payment*94.28134862
monthly payment=$9700/94.28134862
monthly payment=$102.88
The outstanding balance after year 4 is the present value of monthly payments for the remaining 1 year(12 months)
PV=$102.88*(1-(1+0.004166667)^-12/0.004166667
PV=$102.88*(1-(1.004166667)^-12/0.004166667
PV=$102.88*(1-0.951328238 )/0.004166667
PV=$102.88*0.048671762 /0.004166667
PV=$1,201.76
Question 12
0.5 pts
The goal of any monopolist is to maximize:
economic profits.
normal profits.
price.
consumer welfare.
output.
Answer:
economic profits.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.
Also, a monopolist refers to any individual that deals with the sales of unique products in a monopolistic market.
Generally, the goal of any monopolist is to maximize economic profits.
Basically, a monopolist earns an economic profit when the average total cost (AVC) of his goods and services is less than price.
Unlike a business firm operating in a perfectly competitive market, a monopolist can continue to earn economic profits in the long-run because there exist an extremely high level of barriers to entry for new business firms.
Good afternoon. Kindly assist on the following please. Assignment due by 4:30pm Mike bookshop had the following structure. Share capital 500000 ordinary shares of $1 each. 300000 10% preference of $1 each. Reserves Share premium 200 000 General reserves 100 000 Retained earnings 400 000 8% debenture 100 000 During the year the following transaction took place. 01 January issue of 200 000 $1 ordinary shares at$1,20 and 100 000 preference shares at $2 each. 01 June a 1 for 4 right issue at a premium of $0,10c each per share. 01 December 1 for 5 bonus shares fully paid. All shares issued during the year qualified for bonus and the company wishes to leave the reserves in their flexible form. Required. Balance sheet extract.
Answer:
Mike Bookshop
Balance Sheet Extract as at December 31
Share capital:
1,050,000 ordinary shares of $1 each $1,050,000
400,000 10% preference of $1 each 400,000
Total share capital $1,450,000
Reserves:
Share premium 357,500
General reserves 100,000
Retained earnings 225,000
Total reserves $682,500
8% debenture $100,000
Explanation:
a) Data and Analysis:
Share capital:
500000 ordinary shares of $1 each.
300000 10% preference of $1 each.
Reserves:
Share premium 200 000
General reserves 100 000
Retained earnings 400 000
8% debenture 100 000
During the year the following transaction took place.
01 January Cash $240,000 Ordinary share capital $200 000 Share Premium $40,000
$1 ordinary shares at$1.20 and
01 January Cash $200,000 Preferred share capital $100 000 Share Premium $100,000
01 June Cash $192,500 Ordinary share capital $175,000 Share Premium $17,500
a 1 for 4 right issue at a premium of $0.10c each per share.
01 December Retained Earnings $175,000 Ordinary share capital $175,000
1 for 5 bonus shares fully paid.
Ordinary share capital:
Beginning balance $500,000
January 1 issue 200,000
June 1 rights issue 175,000
Dec. 1 bonus issue 175,000
Ending balance $1,050,000
Preferred share capital:
Beginning balance $300,000
January 1 issue 100,000
Ending balance $400,000
Share Premium:
Beginning balance $200,000
January 1 issues 140,000
June 1 rights issue 17,500
Ending balance $357,500
General reserves $100,000
Retained Earnings:
Beginning balance $400,000
Dec. 1 Bonus issue (175,000)
Ending balance $225,000
Local marketing is an effective tool used by marketers to reach intended market segments. Groupon has capitalized on this concept by tailoring brands and marketing to the needs and wants of local customer segments—cities, neighborhoods, and even specific stores. According to its website, Groupon “offers a vast mobile and online marketplace where people discover and save on amazing things to do, see, eat, and buy. By enabling real time commerce across local businesses, travel destinations, consumer products, and live events, shoppers can find the best a city has to offer. Groupon is redefining how small businesses attract and retain customers by providing them with customizable and scalable marketing tools and services to profitably grow their businesses.” This concept lies at the heart of Groupon’s mission: “to connect local commerce, increasing consumer buying power while driving more business to local merchants through price and discovery.” To help consumers make those connections, Groupon offers a mobile app, online marketplace, and social media touchpoints where customers can readily access information on its daily deals. Questions: Q1. How does Groupon use target marketing? Provide examples. Q2. Discuss the ways in which small businesses can utilize local social media marketing in your community. Q3. Have you heard about Groupon? Explain their business Q4. Do you use Groupon? Q5. Is it effective in helping local businesses to meet the challenges of local marketing? Why or why not?
Answer:
hdhwhhdndnjsjndbxhhdhshhshxhx
Concord Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 18900 and ending work in process equaled 1000 units. Concord had no beginning work in process inventory. Conversion costs are applied uniformly throughout production, and all materials are applied at the beginning of the process. How much is the materials cost per unit if ending work in process was 30% complete and total materials costs equaled $86940
Answer:
the material cost per unit is $4.60 per unit
Explanation:
The computation of the material cost per unit is shown below:
= Total material cost ÷ equivalent units of material
= $86,940 ÷ (18,900 - 1,000) × 100% + 1,000 × 100%
= $86,940 ÷ (17,900 + 1,000)
= $86,940 ÷ 18,900
= $4.60 per unit
Hence, the material cost per unit is $4.60 per unit
The same should be considered and relevant
If a company spends $80 million to build facility space sufficient to hold 5 million pairs of footwear-making equipment at a site in Latin America, then the company's annual depreciation costs for this facility space will be
Answer: $8,000,000
Explanation:
From the question given, the cost of the building facility is $80 million. Also, it should be noted that the default rate for depreciation is given as 10%, therefore, the company's annual depreciation costs for this facility space will be:
= Depreciation rate × Cost of building
= 10% × $80,000,000
= 0.1 × $80,000,000
= $8,000,000
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 40 per unit Direct labor $ 60 per unit Overhead costs Variable $ 30 per unit Fixed $ 7,000,000 (per year) Selling and administrative costs for the year Variable $ 770,000 Fixed $ 4,250,000 Production and sales for the year Units produced 100,000 units Units sold 70,000 units Sales price per unit $ 350 per unit 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing.
Answer:
Sims Company
Income Statements Variable Costing Absorption Costing
Sales revenue $24,500,000 $24,500,000
Cost of goods sold:
Variable cost of manufacturing 9,100,000 9,100,000
Variable cost of selling and admin. 770,000 0
Fixed manufacturing cost 0 4,900,000
Total cost of goods sold $9,870,000 $14,000,000
Contribution margin $14,630,000 0
Gross profit 0 $10,500,000
Fixed /Period costs:
Fixed manufacturing cost $7,000,000 0
Selling and administrative expenses:
Variable $ 770,000
Fixed 4,250,000 4,250,000
Total period/fixed costs $11,250,000 $5,027,000
Net operating income $3,380,000 $5,473,000
Explanation:
a) Data and Calculations:
Manufacturing costs
Direct materials $ 40 per unit
Direct labor $ 60 per unit
Overhead costs
Variable $ 30 per unit
Total variable manufacturing cost per unit = $130
Fixed $ 7,000,000 (per year)
Selling and administrative costs for the year
Variable $ 770,000
Fixed $ 4,250,000
Production and sales for the year
Units produced 100,000 units
Units sold 70,000 units
Ending inventory = 30,000 units
Sales price per unit $ 350 per unit
Medical profession is a very sensitive profession.Do U agree?Give 5 reason
Answer:
Medical profession is very sensitive and intellectual where human life is at risk. A successful effort of a doctor can save a life. Due to that, a doctor is known as 2nd God. When he attempts a major and long surgery, his endurance, hard work and mental ability spotlight his character.
You have just made your first $5,600 contribution to your retirement account. Assume you earn a return of 11 percent per year and make no additional contributions. a. What will your account be worth when you retire in 39 years
Answer:
the account be worth when you retire in 39 years is $327.932.30
Explanation:
The calculation of the account be worth when you retire in 39 years is shown below:
As we know that
Future value = Present value × (1 + rate of interest)^number of years
= $5,600 × (1 + 0.11)^39
= $327,932.30
Hence, the account be worth when you retire in 39 years is $327.932.30
Halsted Corp. has identified three cost pools in its manufacturing process: equipment maintenance, setups, and quality control. Total cost assigned to the three pools is $214,500, $101,400, and $153,000, respectively. Cost driver estimates for the pools are 10,000 machine hours, 150 setups, and 450 quality inspections, respectively.
Required:
Calculate the activity rate for each of Halsted's cost pools.
Answer:
Maintenance $21.45 per Machine Hour
Setup $676 per Setup
Quality Control $340 per Inspection
Explanation:
Calculation to determine the activity rate for each of Halsted's cost pools.
Activity rate for MAINTENANCE COST
Using this formula
Activity rate= Total maintenance cost / Total machine hours
Let plug in the morning
Activity rate=$214,500/ 10,000
Activity rate= $21.45 per Machine Hour
Activity rate for SETUPS
Using this formula
Activity rate= Total Setups /Setups
Let plug in the formula
Activity rate= $101,400/150
Activity rate=$676 per Setup
Activity rate for QUALITY CONTROL
Using this formula
Activity rate= Total Quality control /Quality inspections
Let plug in the formula
Activity rate= $153,000/450
Activity rate= $340 per Inspection
Therefore the activity rate for each of Halsted's cost pools will be:
Maintenance $21.45 per Machine Hour
Setup $676 per Setup
Quality Control $340 per Inspection
