Answer:
Total Sales budget $14,923,300.00
Explanation:
The sales budget shows the total estimated amount of sales income for a future accounting period
Sales budget
Product Units Price Sales revenue($)
Product JB 50 403,900 $23 9,289,700
Product JB 60 201,200 $28 5,633,600
Total Sales budget 14,923,300.
On September 1, Year 1, Gomez Company collected $9,000 in advance from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1? How much would the company report as net cash flows from operating activities for Year 1?
Answer:
$3,000 and $9,000
Explanation:
In the income statement only four months revenue is recorded i.e from September 1 to December 31
= $9,000 × 4 months ÷ 12 months
= $3,000
And, under the operating activities the whole amount i.e $9,000 is to be recorded and added to the net income as it is inflow of cash and the same is added using the direct method of the cash flow statements
Goodmark Company produces two types of birthday cards: scented and regular. Expected product data for the coming year are given below. Overhead costs are identified by activity.
Scented Cards Regular Cards Total
Units produced 20,000 200,000 -
Prime costs $160,000 $1,500,000 $1,660,000
Direct labor hours 20,000 160,000 180,000
Number of setups 60 40 100
Machine hours 10,000 80,000 90,000
Inspection hours 2,000 16,000 18,000
Number of moves 180 120 300
Overhead costs:
Setting up equipment $240,000
Moving materials 120,000
Machine 200,000
Inspecting products 160,000
Calculate the activity consumption ratios for Scented cards (round to two decimal places).
Setups:
Moving materials:
Machining:
Inspection:
Answer:
Setups: $ 144,000
Moving materials: $72000
Machining: $22,200
Inspection: $17,777.78
Explanation:
Goodmark Company
Scented Cards Regular Cards Total
Units produced 20,000 200,000 -
Prime costs $160,000 $1,500,000 $1,660,000
Direct labor hours 20,000 160,000 180,000
Number of setups 60 40 100
Machine hours 10,000 80,000 90,000
Inspection hours 2,000 16,000 18,000
Number of moves 180 120 300
First we find the rate by dividing the overhead costs with the corresponding cost driver as follows.
Overhead costs: Rate
Setting up equipment $240,000 = Setting up equipment / Number of setups=$240,000/100=2400
Moving materials 120,000 = Moving materials/Number of moves
120,000/300=400
Machine 200,000 = Machining/Machine hours
= 200,000/ 90,000=2.222
Inspecting 160,000 = Inspection/Inspection hours
= 160,000/18000= 8.89
Now we find the overhead applied to the scented cards by multiplying the rate to the corresponding overhead activity of the scented cards.
Activity Rate Scented Cards
Setups: 2400 2400*60=$ 144,000
Moving materials: 400 400*180= $72000
Machining: 2.22 2.22*10,000=$22,200
Inspection: 8.89 8.89*2000= $17,777.78
One of the key functions of human resource management is
Answer: recruiting.
Explanation:
Recruiting is one of the most important aspects of human resource management. Hence, Option B is correct.
What is the meaning of Recruiting?Finding, vetting, recruiting, and eventually onboarding qualified job prospects is the process of recruitment. The process of finding, vetting, shortlisting, and employing potential resources to fill open jobs in a company is known as recruitment.
It serves as a fundamental part of human resource management. The act of selecting the best candidate for a position at the ideal time is known as recruitment.
Simply announcing that you are hiring is all that hiring entails. The deliberate technique of locating and attracting the best individuals for the position is known as recruiting.
Therefore, Option B is correct.
Learn more about Recruiting from here:
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The complete question has been attached in text form:
One of the key functions of human resource management is:
a. departmentalizing.
b. recruiting.
c. budgeting.
d. auditing.
Four employees received feedback from their managers. Jose was told what he did wrong and was given a warning. Jolette was told that she has been too shy in team meetings and is not speaking enough. Richard was told that his unique skill of analysis has been very valuable to the team. Gloria was told about some errors she made on the reports the team produced. Who will most likely feel highly engaged and be more productive?
Answer:
Richard
Explanation:
In simple words, Among all the employees in the organisation only Richard got the appreciation for the work he is performing. Such appreciation would work as an incentive for Richard to perform his duty with more effectiveness in the future.
Positive comments from the employer always works as a motivation to the employees and results in positive reinforcement of such employee which further results in better results.
If a firm has retained earnings of $2.7 million, a common shares account of $4.7 million, and additional paid-in capital of $9.4 million, how would these accounts change in response to a 10 percent stock dividend? Assume market value of equity is equal to book value of equity.
Answer:
Change in retained earnings = $1.02 million (Decrease)
Change in common shares account = $5.17 million (Increase)
Change in additional paid-in capital = $10.61 million (Increase)
Explanation:
Given:
Retained earnings = $2.7 million
Common shares account = $4.7 million
Additional paid-in capital = $9.4 million
Stock dividend = 10%
Find:
Changes in account.
Computation:
1. Change in retained earnings
Change in retained earnings = Retained earnings - (Retained earnings - Common shares account - Additional paid-in capital)Stock dividend
Change in retained earnings = $2.7 million - ($2.7 million - $4.7 million - $9.4 million)10%
Change in retained earnings = $2.7 million - 1.68 million
Change in retained earnings = $1.02 million (Decrease)
2. Change in common shares account
Change in common shares account = Common shares account (1+Stock dividend)
Change in common shares account = $4.7 million (1+10%)
Change in common shares account = $5.17 million (Increase)
3. Change in additional paid-in capital
Change in additional paid-in capital = Additional paid-in capital + (Additional paid-in capital + Retained earnings)Stock dividend
Change in additional paid-in capital = $9.4 million + ($9.4 million + $2.7 million)10%
Change in additional paid-in capital = $9.4 million + 1.21 million
Change in additional paid-in capital = $10.61 million (Increase)
Evaluate the statement “Accounting is all about numbers.". Using the definition of accounting to justify your answer.
Explanation:
Accounting is not all about numbers. For accounting is characterized as the entire process of recording financial transactions of an organization.
Some of the accounting activities are the summary and analysis of accounting information to economic entities, as well as communicating non-financial information such as those that can impact people and the environment.
Selected comparative financial statements of Korbin Company follow.
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2017, 2016, and 2015
2017 2016 2015
Sales $ 555,000 $ 340,000 $ 278,000
Cost of goods sold 283,500 212,500 153,900
Gross profit 271,500 127,500 124,100
Selling expenses 102,900 46,920 50,800
Administrative expenses 50,668 29,920 22,800
Total expenses 153,568 76,840 73,600
Income before taxes 117,932 50,660 50,500
Income taxes 40,800 10,370 15,670
Net income $ 77,132 $ 40,290 $ 34,830
Required:
a. Calculate the income statement data in common-size percents.
Answer and Explanation:
The computation is shown below:
Particulars 2015 % 2014 % 2013 %
Sales $555,000 100 $340,000 100 $278,000 100 Less
COGS $283,500 51.08 $212,500 62.5 $153,900 55.36 Gross profit $271,500 $48.92 $127,500 37.5 $124,100 44.64 Less:
Selling expenses $102,900 18.54 $46,920 13.8 $50,800 18.27 Administrative expenses $50,668 9.13 $29,920 8.8 $228,00 8.20
total expenses $153,568 27.67 $76,480 22.49 $736,00 26.47 Income before tax $117,932 21.25 $50,660 14.9 $50,500 18.16 Income taxes $40,800 7.35 $10,370 3.05 $15,670 5.64
Net income $77,132 13.90 $40,290 11.85 $34,830 12.53
For cost of goods sold percentage we simply divide the cost of goods sold by the sales and the same is applied for other items
Jordon and Heidi share income equally. For the current year, the partnership net income is $40,000. Jordon made withdrawals of $14,000, and Heidi made withdrawals of $15,000. At the beginning of the year, the capital account balances were: Jordon, Capital, $40,000; Heidi, Capital, $58,000. Jordon's capital account balance at the end of the year is a.$46,000 b.$68,000 c.$74,000 d.$54,000
Answer:
a.$46,000
Explanation:
A partner ship account records the transactions related to partnership. All transaction of withdrawal, Profit allocation etc. are recorded to determine the closing balance of each partner.
Ending Capital Balance = Beginning Capital balance + Income allocation for the year - withdrawals
Jordon's Ending Capital Balance = $40,000 + ( $40,000 x 0.5 ) - $14,000
Jordon's Ending Capital Balance = $40,000 + $20,000 - $14,000
Jordon's Ending Capital Balance = $46,000
Dermody Snow Removal's cost formula for its vehicle operating cost is $2,990 per month plus $329 per snow-day. For the month of December, the company planned for activity of 23 snow-days, but the actual level of activity was 21 snow-days. The actual vehicle operating cost for the month was $10,860. The spending variance for vehicle operating cost in December would be closest to:
Answer:
-$303 Unfavorable
Explanation:
The computation of spending variance is shown below:-
Spending variance = Flexible budget - Actual cost
= (23 × $329 + $2,990) - $10,860
= $7,567 + $2,990 - $10,860
= $10,557 - $10,860
= -$303 Unfavorable
Therefore for computing the spending variance we simply subtracted the actual cost from flexible budget.
A bank offers the following certificates of deposit: Nominal annual interest rate Term in years (convertible quarterly) 1 4% 3 5% 5 5.65% The bank does not permit early withdrawal. The certificates mature at the end of the term. During the next six years the bank will continue to offer these certificates of deposit with the same terms and interest rates. An investor initially deposits $10,000 in the bank and withdraws both principal and interest at the end of six years. Calculate the maximum annual effective rate of interest the investor can earn over the 6-year period.
Answer:
i = 5.48%
Explanation:
We can use the following method to solve the given problem in the question.
Two consecutive 3 year CDs:
=10000 * (1+(0.05/4))^12 * (1+.(0.05/4))^12 = 13, 473.51
One 5 year CD and a 1 year CD:
=10000 * (1+(0.0565/4))^20 * (1+.(0.04/4))^4 = 13,775.75
13,775.75 is the greater.
The annual effective rate is
=10000 * (1+I)^6 = 13,775.75
i = 5.48%
Answer:
5.48%
Explanation:
Effective interest rate is the actual interest rate that a investor receives on investment or a borrower pays on loan including the compounding effect.
Here we have two possibilities
Two consecutive 3 year CDs:
Future value = 10,000 x ( 1 + ( 5%/4 ) )^12 x ( 1 + ( 5%/4 ) )^12 = $13, 473.51
One 5 year CD and a 1 year CD:
Future value = 10,000 x ( 1 + ( 5.65%/4 ) )^20 x ( 1 + ( 4%/4 ) )^4 = $13,775.75
As $13,775.75 is the greater the investor will prefer this combination.
Now calculate the Effective interest rate
$10,000 x ( 1 + i )^6 = 13,775.75
i = 5.48%
Jayhawk Foods Inc. is a snack manufacturer that wants to expand globally. Few people abroad are familiar with Jayhawk Foods snacks. The countries into which the company wants to expand require a high degree of local responsiveness when it comes to food, and the citizens of those countries already spend plenty of money on snacks. Which action should the leaders of Jayhawk Foods take? A. Achieve economies of scale by using the global-standardization approach B. Pursue a multidomestic strategy that includes new "local" brands C. Keep costs low with undifferentiated product in the international strategy D. Appease pressures for cost reductions by following the transnational approach
Answer:
the answer is option B) the leaders of Jayhawk Foods should pursue a multidomestic strategy that includes new "local" brands.
Explanation:
Understanding how best to meet your customers needs is a sure way to maximize profits and generate more sales.
Having identified the need for a high degree of local responsiveness when it comes to food, Jayhawk Foods Inc., a snack manufacturer that wants to expand globally should pursue a multi domestic strategy for their branches globally.
Multi Domestic strategy is an international marketing strategy that is responsive to the local market by driving advertising and sales efforts towards the needs that the local consumers are most responsive to.
Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $14,500 and will produce cash flows as follows: End of Year Investment A B 1 $ 9,500 $ 0 2 9,500 0 3 9,500 28,500 The present value factors of $1 each year at 15% are: 1 0.8696 2 0.7561 3 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment B is:
Answer:
The net present value of Investment B is $4238.75
Explanation:
Solution
The Net present value = present value of cash inflows - present value of cash outflow
Now,
The Present value of cash outflows= initial investment= $14500
Thus,
The Present value of cash inflows: is defined as follows:
Since in project B there is only one inflow at the end of year 3, it is discounted to present using present value discount factor applicable for 3 years, 15% which is= 0.6575
so,
The Present value of cash flow at the end of year 3= 28500* 0.6575= 18738.75
NPV= 18738.75 - 14500= $4238.75
The Clifford Corporation has announced a rights offer to raise $10 million for a new journal, the Journal of Financial Excess. This journal will review potential articles after the author pays a nonrefundable reviewing fee of $6,000 per page. The stock currently sells for $60 per share, and there are 1 million shares outstanding. a. What is the maximum possible subscription price? What is the minimum? (Leave no cells blank - be certain to enter "0" wherever required.) b. If the subscription price is set at $50 per share, how many shares must be sold? How many rights will it take to buy one share? (Do not round intermediate calculations. Round your rights needed answer to 2 decimal places, e.g., 32.16.) c. What is the ex-rights price? What is the value of a right? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) d. A shareholder with 2,000 shares before the offering has no desire (or money) to buy additional shares offered as rights. What is his portfolio value before and after the rights offer? (Do not round intermediate calculations and round your answers to nearest whole number, e.g., 32.)
Answer and Explanation:
1. The maximum possible subscription price is $60
The maximum price is anything greater than $0
2.Number of new shares
$10,000,000/$50
=$200,000
Number of right shares
$1,000,000/$200,000
=$5
3. Excess right 58.33
(5*60+50)/(5+1)
Value of excess 1.67
($60-58.33)
4.Portfolio value before right offering
2,000×60
= 120,000
Portfolio value after right offering 120,000
(2000×58.33 +2000×1.67 )
Grape Inc. uses the percentage of credit sales method of estimating doubtful accounts. The Allowance for Doubtful Accounts has an unadjusted credit balance of $3,500 and the company had $180,000 of net credit sales during the period. Grape has experienced bad debt losses of 4% of credit sales in prior periods. After making the adjusting entry for estimated bad debts, what is the ending balance in the Allowance for Doubtful Accounts accou
Answer:
$9,700
Explanation:
The calculation of ending balance in the Allowance for Doubtful Accounts account is shown below:-
Ending balance in the Allowance for Doubtful Accounts account = Net credit sales × Credit sales percentage + Credit balance
= $180,000 × 4% + $2,500
= $7,200 + $2,500
= $9,700
So, for computing the ending balance in the Allowance for Doubtful Accounts account we simply applied the above formula.
Why do more than half of enterprise application projects exceed budgets, deliver less than expected benefits, or experience overruns?
Answer: The answer is provided below
Explanation:
1. Underfinancing: One main reason that cause budget overrun and less than expected benefits is underfinancing. Allocation of an adequate amount of budget to project at the beginning will lead to a budget overrun or failure.
2. Unfeasible Cost Estimates: Estimation of cost is a vital process in a project and another common reason for budget overrun. When the cost is calculated by inexperienced or unqualified personnel, the project is going to face budget overruns.
3. Underestimating the Project Complexity: Big projects are usually at the risk of overrunning its budget as a result of bigger complications that may arise during its execution.
4. Lack of Resource Planning: When one fails to plan the resources that are available effectively, then this would lead to a budget overrun and less benefits. A common mistakes that cause overrun is failure to estimate the resources which would be utilized during the project.
Which law is referred to as the credit cardholders Bill Of Rights ?
Answer: credit CARD act
Hope this helps!!!
A) Fair and Accurate Credit Transaction Act
Jason and Paula are married. They file a joint return for 2019 on which they report taxable income before the QBI deduction of $200,000. Jason operates a sole proprietorship, and Paula is a partner in the PQRS Partnership. Both are a qualified trade or business and neither is a specified services business. Jason's sole proprietorship reports $150,000 of net income, W-2 wages of $45,000, and has qualified property of $50,000. Paula's partnership reports a loss for the year, and her allocable share of the loss is $40,000. The partnership reports no W-2 wages and Paula's share of the partnership's qualified property is $20,000. What is their qualified business income deduction for the year
Answer:
Their QBI deduction is $22,000
Explanation:
According to the given data Jason and Paula’s taxable income before the QBI deduction=$200,000.
Therefore,W2 wages/capital investment limitation is not applicable to them.
Jason’s QBI amt=$30,000 ($150,000 x 20%).
Paula’s QBI amount= $(8,000) [$(40,000) x 20%].
Therefore, Their combined qualified business income amount= [$30,000+$(8,000)]=$22,000
As this amount is less than the overall limitation based on modified taxable income ($200,000 x 20% = $40,000), their QBI deduction is $22,000
Answer:
Check the explanation
Explanation:
A)
Jason and Paula’s taxable income before the QBI deduction=$200,000. Therefore,W2 wages/capital investment limitation is not applicable to them.
Jason’s QBI amt=$30,000 ($150,000 x 20%).
Paula’s QBI amount= $(8,000) [$(40,000) x 20%]. Their combined qualified business income amount is $22,000 [$30,000+$(8,000)]. As this amount is less than the overall limitation based on modified taxable income ($200,000 x 20% = $40,000), their QBI deduction is $22,000.
-------------------------------------
For the year ended December 31, 2016, Norstar Industries reported net income of $655,000. At January 1, 2016, the company had 900,000 common shares outstanding. The following changes in the number of shares occurred during 2016: Apr. 30 Sold 60,000 shares in a public offering. May 24 Declared and distributed a 5% stock dividend. June 1 Issued 72,000 shares as part of the consideration for the purchase of assets from a subsidiary. Required: Compute Norstar's earnings per share for the year ended December 31, 2016.
Answer:
1.272 per share
Explanation:
The computation of earnings per share is shown below:-
Weighted Average number of Common shares outstanding = outstanding common shares ÷ Net income
= 900,000 ÷ $707,810
= 1.272 per share
Where,
Net Income = Preferred Dividends ÷ Weighted Average number of Common shares outstanding
= $655,000 ÷ (1 + 0.05) + ( 60,000 × 8 months ÷ 12 months) × 1.05 + (72,000 × 7 months ÷ 12 months)
= $623,810 + 40,000 × 1.05 + 42,000
= $623,810 + 42,000 + 42,000
= 707,810
Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $68,000 and $3,450, respectively. During Year 2, Allegheny wrote off $6,300 of Uncollectible Accounts. Using the percent of receivables method, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $5,400. What amount will Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement
Answer:
$8,250
Explanation:
Relevant data provided for compute the Uncollectible Accounts Expense is here below:-
Amount written off = $6,300
Closing balance = $5,400
Opening balance = $3,450
The computation of Uncollectible Accounts Expense is shown below:-
Uncollectible Accounts Expense = Amount written off + Closing balance - Opening balance
= $6,300 + $5,400 - $3,450
= $11,700 - $3,450
= $8,250
Therefore for computing the Uncollectible Accounts Expense we simply applied the above formula.
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 72,000 Direct labor $ 36,500 Variable manufacturing overhead $ 16,200 Fixed manufacturing overhead 28,900 Total manufacturing overhead $ 45,100 Variable selling expense $ 12,600 Fixed selling expense 19,200 Total selling expense $ 31,800 Variable administrative expense $ 4,300 Fixed administrative expense 25,600 Total administrative expense $ 29,900 Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost
Answer:
Product cost= $153,600
Explanation:
Giving the following information:
Direct materials $ 72,000
Direct labor $ 36,500
Variable manufacturing overhead $16,200
Fixed manufacturing overhead 28,900
Total manufacturing overhead $ 45,100
The product cost is the sum of direct material, direct labor, and total manufacturing overhead.
Product cost= 72,000 + 36,500 + 45,100
Product cost= $153,600
Income statement _______ Click on an event in any transaction report b. Balance sheet _______ Click an account on any report c. Statement of cash flows _______ Click to add a new column in a report d. AR aging report _______ Reflects unpaid bills for the current period e. AP aging report _______ Reports revenues and expenses f. Inventory valuation report _______ Includes operating, investing, and financing activities g. Profit and Loss report _______ Reports inventory quantities on hand h. To view a transaction report _______ Reports assets, liabilities, and equities i. To view a source document _______ Another name for the income statement j. % of income check box _______ Reflects unpaid invoices for the current period
Answer and Explanation:
a Income statement = Reports revenues and expenses
The income statement only records the revenues earned and expenses incurred
b Balance sheet = Reports Assets, liabilities and Equities
The balance sheet records the 3 items i.e assets, liabilities and stockholder equity
With the help of the accounting equation, the balance sheet should be matched
c Statement of Cash flows = Includes operating, Investing & Financing
The cash flow statement consist of operating activities, investing activities, and financing activities. It records only cash payments and cash receipts transactions
d AR Aging Report= Reflects unpaid invoices for current period
It shows the invoices which are not paid
e AP Aging Report = Reflect unpaid bills for current period
It shows the bills which are not paid
f Inventory valuation report = Reports Inventory Quantities on hand
It shows the quantities of inventory remains on till date
g Profit and loss report = Another name for Income statement
The other name of income statement is profit and loss account or report
h To view a transaction report = Click an account on any report
For seeing the transaction report we have to just click on any report
i To view a source document = Click on an event in any transaction report
For seeing the source document we have to just click on the event of any transaction report
j % of income check box = Click to add a new column in a report
For percentage of income check box we need to add a new column in a report
Crane Company required production for June is 112000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 290000 and 310000 pounds, respectively. How many pounds of direct material Z must be purchased
Answer:
Purchases= 356,000 pounds
Explanation:
Giving the following information:
Production= 112,000 units.
Standard quantity= 3 pounds of direct material Z
Beginning inventory= 290,000 pounds
Desired ending inventory= 310,000 pounds
To calculate the purchase required for direct material, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 112,000*3 + 310,000 - 290,000
Purchases= 356,000 pounds
Hardware is adding a new product line that will require an investment of $ 1 comma 476 comma 000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $ 300 comma 000 the first year, $ 290 comma 000 the second year, and $ 240 comma 000 each year thereafter for eight years. Assume the project has no residual value. Compute the ARR for the investment. Round to two places
Answer:
42,51%
Explanation:
Accounting Rate of Return (ARR) = Average Profits / Average Investment
Calculation of Average Profits
Average Profit = Sum of Profits / Number of Years
= (300,000+290,000+240,000×8)/10
= $2,510,000 / 8
= $313,750
Calculation of Average Investment
Average Investment = Initial Investment + Scrape Value / 2
= $1,476,000/2
= $738,000
Accounting Rate of Return (ARR) = $313,750/$738,000×100
= 42,51%
Your company is considering purchasing a machine for $270,000. This machine will bring revenues of $100,000 in the second year, of $150,000 in the third year, and of $75,000 in the fourth year. The machine will be worthless after the fourth year, so you will not be able to get any resale value out of it. If the interest rate is 6% per year, should you go ahead with this project?
Answer:
Yes we should go with this project because it has a positive NPV of $4,350
Explanation:
We need to calculate the net present value of the machine to decide whether to invest in the machine or not.
As per Given Data
Costs $270,000
Cash Inflows
Year 2 $100,000
Year 3 $150,000
Year 4 $75,000
Interest Rate = 6%
Net Present Value
As we know Net Present value is calculated by discounting each years cash flows using using the Weighted Average cost of Capital.
Year Cash Inflows Discount factor 13% Present values
Year 0 $(270,000) (1+6%)^-0 $(270,000)
Year 2 $100,000 (1+6%)^-2 $89,000
Year 3 $150,000 (1+6%)^-3 $125,943
Year 4 $75,000 (1+6%)^-4 $59,407
Net present value $4,350
Whit Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $380 per month plus $94 per job plus $11 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in October to be 20 jobs and 216 meals, but the actual activity was 19 jobs and 221 meals. The actual cost for catering supplies in October was $4,790. The catering supplies in the flexible budget for October would be closest to:
Answer:
$4,636
Explanation:
The calculation of catering supplies in the flexible budget for October is shown below:-
Catering supplies in the flexible budget for October = Catering supplies + Per Job × October jobs + Per meal × October Meals
= $380 + $94 × 20 + $11 × 216
= $380 + $1,880 + $2,376
= $4,636
Therefore for computing the catering supplies in the flexible budget for October we simply applied the above formula.
Fultz Company has accumulated the following budget data for the year 2020.
1. Sales: 31,410 units, unit selling price $85.
2. Cost of one unit of finished goods: direct materials 1 pound at $6 per pound, direct labor 3 hours at $12 per hour, and manufacturing overhead $7 per direct labor hour.
3. Inventories (raw materials only): beginning, 10,120 pounds; ending, 15,480 pounds.
4. Selling and administrative expenses: $170,000; interest expense: $30,000.
5. Income taxes: 30% of income before income taxes.
Prepare a schedule showing the computation of cost of goods sold for 2020.
Answer:
COST OF Goods SOLD $ 1,1539,110
Explanation:
Fultz Company
Schedule of Cost of Goods Sold for 2020
As there are no beginning and ending finished goods inventories the total units produced are sold. (Finished Goods required 31410 Units)
Inventories raw materials : beginning, 10,120 pounds
Add Direct Materials Purchases 36770 pounds
Less Inventories ending raw materials , 15,480 pounds
Direct Materials Used 31410 pounds
Materials 1 pound at $6 per pound= $ 6* 31410 Units= $ 188460
Direct labor 3 hours at $12 per hour= $ 36* 31410 Units= $ 1130780
Manufacturing Overhead $7 per direct labor hour= $ 7* 31410 Units=
$ 219870
Total Manufacturing Costs $ 1,1539,110
There are no beginning and ending work in process inventories so the total manufacturing cost gives us the COST OF Goods SOLD.
On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $600,000. Additionally, Blackstone paid a real estate brokerâs commission of $36,000, legal fees of $6,000, and title insurance of $18,000. The closing statement indicated that the land value was $500,000 and the building value was $100,000. Shortly after acquisition, the building was razed at a cost of $75,000.
Blackstone entered into a $3,000,000 fixed-price contract with Barnett Builders, Inc., on March 1, 2021, for the construction of an office building on land site 11. The building was completed and occupied on September 30, 2022. Additional construction costs were incurred as follows:
Plans, specifications, and blueprints .....................$ 12,000
Architectsâ fees for design and supervision ............95,000
To finance the construction cost, Blackstone borrowed $3,000,000 on March 1, 2021. The loan is payable in 10 annual installments of $300,000 plus interest at the rate of 14%. Blackstoneâs average amounts of accumulated building construction expenditures were as follows:
For the period March 1 to December 31, 2021 ...........$ 900,000
For the period January 1 to September 30, 2022 .......2,300,000
Required:
1. Prepare a schedule that discloses the individual costs making up the balance in the land account in respect of land site 11 as of September 30, 2022.
2. Prepare a schedule that discloses the individual costs that should be capitalized in the office building account as of September 30, 2022.
Answer:
Blackstone Corporation
1. A schedule that discloses the individual costs making up the balance in the land account in respect of land site 11 as of September 30, 2022:
Cost of Land = $600,000
Broker's Commission = $36,000
Legal Fees = $6,000
Title Insurance = $18,000
Razing of old building = $75,000
Total = $735,000
2. A schedule that discloses the individual costs that should be capitalized in the office building account as of September 30, 2022:
Payment to contractor for building = $3,000,000
Plans, specifications, and blueprints = $12,000
Architect's fees (design & supervision = $95,000
Capitalized Interest ($3m x14%/10 x 2) = $84,000
Total = $3,191,000
Explanation:
a) The cost of land to recognize includes the actual cost for the parcel of land, including the building which was razed. All other expenses incurred ordinarily and necessarily in order to put the land to its intended use are also capitalized. The costs for the broker's commission, legal fees, title insurance, and razing of old building were incurred ordinarily and necessarily for the land and are therefore capitalized in determining the value of the land.
b) The capitalized interest portion for the building is the interests paid to date. The contractor's fee, payments for plans, architect's fee, and interests are included as costs of the building.
On March 1, 2018, Everson Services issued a 5% long−term notes payable for $25,000. It is payable over a 5−year term in $5,000 annual principal payments on March 1 of each year plus interest, beginning March 1, 2019. Each yearly installment will include both principal repayment of $5,000 and interest payment for the preceding one−year period. On March 1, 2019, ________. The accounting period ends on December 31.
Answer:
The description including its given problem is outlined in the following section on the explanation.
Explanation:
Everson resources or services released a 5% hard-term notes convertible for $25,000 on Mar 1, 2018. This is paid on March 1 of every year, starting on March 1, 2019, throughout a five-year term in $5,000 amount installments. This payment seems to have the consequence of:
Assets are through during the form of money, as extra money is earned whenever a note is given.Long-term assets are rising by $25,000 at either the time of requirement throughout the form of a large-term note paid. It is indeed a longer-term burden. $5,000 notice is shown as current assets throughout the income statement on Dec 31, 2018, while the resulting $20,000 notice would be shown as significant longer-term liabilities.Therefore, the Journal will be:
Title of accounts and explanation Debit Credit
Cash 25,000 -
Long-term payable of notes - 25,000
Swim Suits Unlimited is in a highly seasonal business, and the following summary balance sheet data show its assets and liabilities at peak and off-peak seasons (in thousands of dollars): Peak Off-Peak Cash $50 $30 Marketable securities 0 20 Accounts receivable 40 20 Inventories 100 50 Net fixed assets 500 500 Total assets $690 $620 Payables and accruals $30 $10 Short-term bank debt 50 0 Long-term debt 300 300 Common equity 310 310 Total claims $690 $620 From this data we may conclude that a. Swim Suits' current asset financing policy is relatively aggressive; that is, the company finances some of its permanent assets with short-term discretionary debt. b. Without cash flow data, we cannot determine the aggressiveness or conservatism of the company's current asset financing policy. c. Swim Suits follows a relatively conservative approach to current asset financing; that is, some of its short-term needs are met by permanent capital. d. Swim Suits' current asset financing policy calls for exactly matching asset and liability maturities. e. Without income statement data, we cannot determine the aggressiveness or conservatism of the company's current asset financing policy.
Answer:
See explaination
Explanation:
It can be deduced that Swim follows a relatively conservative approach to current asset financing; this implies or entails that some of its short-term needs are met by permanent capita
Refer to the following selected financial information from McCormick, LLC. Compute the company's days' sales in inventory for Year 2. (Use 365 days a year.) Year 2 Year 1 Cash $ 38,900 $ 33,650 Short-term investments 104,000 67,000 Accounts receivable, net 92,500 86,500 Merchandise inventory 128,000 132,000 Prepaid expenses 13,500 11,100 Plant assets 395,000 345,000 Accounts payable 106,400 114,800 Net sales 718,000 683,000 Cost of goods sold 397,000 382,000
Answer:
47.0 days
Explanation:
As per the given question the solution of company's days' sales in inventory is provided below:-
Company's days sales uncollected for year 2 = Total number of days in a year × Accounts receivables ÷ Net sales
= 365 × $92,500 ÷ $718,000
= 365 × 0.1289
= 47.0 days
So, we have calculated the Company's days sales uncollected for year 2 by putting the values into the formula.
