Answer:
the cost of goods sold under LIFO method is $6,935
Explanation:
The computation of the cost of goods sold under LIFO method is shown below:
= Sales during the month × cost per unit
= 365 units × $19
= $6,935
Hence, the cost of goods sold under LIFO method is $6,935
We simply applied the above formula
Wesson Company uses the allowance method to record its expected credit losses. It estimates its losses at one percent of credit sales, which were $750,000 during the year. The Accounts Receivable balance was $220,000 and the Allowance for Doubtful Accounts has a credit balance of $1,000 at year-end. What amount is the debit to the Bad Debts Expense
Answer: $7,500
Explanation:
The Bad Debt expense is the amount that might not be paid by the account receivables of a company.
It is calculated by the formula:
= Credit sales * Estimated losses
= 750,000 * 1%
= $7,500
Ingersoll Company has a bond currently outstanding. The bond has a face value of $1,000 and matures in 10 years. The bond makes no coupon payments for the first three years, then pays $45 every six months over the subsequent four years, and finally pays $100 every six months over the last three years. If the required return on these bonds is 5.8% percent compounded semiannually, what is the current price of the bond
Answer:
$1,196.01
Explanation:
What is the current price of the bond
Face value of Bond = $1000
Term (maturity time) = 10 years
periods = 10 *2 = 20 ( semiannual compound of interest )
Yield = 5.8%. semiannual yield = 5.8% / 2 = 2.9% = 0.029
Next : calculate the value of bond using the relationship below
Discounting factor = 1/(1 + r)^n
n = number of payments
note : payments are made semiannually
attached below is a Table showing the discounting factor and present value starting from the 4th year ( Biannually )i.e. when payment commenced
payments discounting factor present value
45 0.818638898 36.83875
45 0.795567442 35.800535
45 0.773146203 34.791579
45 0.751356854 33.811058
45 0.730181588 32.858171
45 0.709603098 31.932139
45 0.689604566 31.032205
45 0.670169646 30.157634
100 0.651282455 65.128245
100 0.632927556 63.292756
100 0.615089947 61.508995
100 0.597755051 59.775505
100 0.580908698 58.09087
100 0.564537122 56.453712
1000 0.564537122 564.53712
Total of present value = 1196.0093
Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $15, the cost of mowing the second lawn is $25, and the cost of mowing the third lawn is $40. His producer surplus on the first three lawns of the day is $100. If Ronnie charges all customers the same price for lawn mowing, that price is a. $20. b. $60. c. $80. d. $180.
Answer:
b. $60
Explanation:
Produced surplus = Price producer is able to sell - Price producer would be willing to sell
Price the producer is able to sell = Producer surplus + Price producer would be willing to sell
= $100 + ($15 + $25 + $40)
= $180 for 3 lawn
Therefore, if Ronnie charges are customers the same price for lawn mowing, that price is
= $180 / 3
= $60
An investor thought that market interest rates were going to decline. He paid $19,000 for a corporate bond with a face value of $20,000. The bond has an interest rate of 10% per year payable annually. If the investor plans to sell the bond immediately after receiving the 4th interest payment, how much will he have to receive in order to make a return of 14% per year? Solve using:
a. tabulated factors
b. the GOAL SEEK tool on a spreadsheet.
Answer:
Answer is explained in the explanation section below.
Explanation:
a. In this part, we need to calculate the present worth using the formula to calculate the sale price of the bond.
As the coupon rate = 10% per year
So,
The Annual dividend will = 2000 = 10% x 20,000
19000 = 2000 (P/A, 14%,4) + B(P/F,14%,4)
19000 = 2000 (2.9137) + B (0.592)
Solving for B = Desired sales price of the bond
B = [tex]\frac{19000 - 5827.4}{0.592}[/tex]
B = 22251
b. Part b of this question is to solve using GOAL SEEK feature of a spreadsheet so, I have attached it in the attachment. Please refer to the attachment for the solution of part b.
What is double-entry accounting?
Answer:
Image result for What is double-entry accounting?
Image result for What is double-entry accounting?
View all
Double-entry bookkeeping, in, is a system of where every entry to an account requires a corresponding and opposite entry to a different account. The double-entry system has two equal and corresponding sides known as. The left-hand side is debit and the right-hand side is credit. Wikipedia
Inventor
You just won the $114 million ultimate lotto jackpot. Your winnings will be paid as $3,800,000 per year for the next 30 years. If the appropriate interest rate is 7.1% what is the value of your windfall?
Answer:
$46,684,511.77
Explanation:
To determine the value of the windfall, we would first determine the future value of the windfall and then determine the present value
Future value = annuity x annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
FV = P (1 + r) n
FV = Future value
P = Present value
R = interest rate
N = number of years
Annuity factor = [(1.071)^30 - 1] / 0.071 = 96.177470
FV = $3,800,000 x 96.177470 = 365,474,386
Present value = FV x ( 1 +r)^-n
365,474,386 x (1.071)^-30 = $46,684,511.77
eating small amounts of sweet desserts can satisfy one's urge or craving for healthier food. true or false?
Answer:
I think eating healthier food would be better. Eating sweet desserts would be healthier than eating a lot, but you should still cut down and eat healthier foods. False
Explanation:
Anthony Thomas Candies (ATC) reported the following financial data for 2021 and 2020:
2021 2020
Sales $ 314,000 $ 290,000
Sales returns and allowances 8,000 4,700
Net sales $ 306,000 $ 285,300
Cost of goods sold:
Inventory, January 1 62,000 18,000
Net purchases 139,000 142,000
Goods available for sale 201,000 160,000
Inventory, December 31 61,000 62,000
Cost of goods sold 140,000 98,000
Gross profit $ 166,000 $ 187,300
The average days inventory for ATC (rounded) for 2021 is: (Round your intermediate calculations to two decimal places. Round your final answer to the nearest whole number.)
A. 171 days.
B. 222 days.
C. 231 days
D. Less than 100 days.
Answer:
D. Less than 100 days
Explanation:
Average days inventory = 365 / Inventory turnover rate
But
Inventory turnover rate = Cost of goods sold / Average inventory
Also,
Average inventory = (Beginning inventory + Ending inventory) / 2
= ($62,000 + $18,000) / 2
= $40,000
Inventory turnover rate = $201,000 / $40,000 = 5.025
Average days inventory = 365 / 5.025 = 72.64 days
Harrelson Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials and conversion costs are incurred evenly throughout the process. For the month of April, the work in process accounts show the following debits.
Cooking Canning
Beginning work in process $0 $4,710
Materials 22,030 10,200
Labor 8,740 8,020
Overhead 32,760 28,340
Costs transferred in 55,850
ournalize the April transactions.
Answer and Explanation:
The journal entries are shown below:
On April 30
WIP-cooking Dr $22,030
WIP- Canning $10,200
To Raw material inventory $32,230
(Being material used is recorded)
WIP-cooking Dr $8,740
WIP- Canning $8,020
To Factory labor $16,760
(Being assigned of factory labor to production is recorded)
WIP-cooking Dr $32,760
WIP- Canning $28,340
To Manufacturing overhead $61,100
(Being assigned of overhead to production is recorded)
WIP Canning $55,850
To WIP cooking $55,850
(being cost transferred in recorded)
Point Company uses the standard costing method. The company's product normally takes 0.25 hour to produce. Normal annual capacity is 3,000 direct labor hours, and budgeted fixed overhead costs for the year were $6,750. During the year, the company produced and sold 8,000 units. Actual fixed overhead costs were $4,800. Compute the fixed overhead variance.
Answer:
the fixed overhead variance is $1,660 (favorable)
Explanation:
The fixed overhead variance results from Fixed Overhead Expenditure (Spending) variance and Fixed Overhead Volume variance.
Expenditure Variance = Actual Fixed Overheads - Budgeted Fixed Overheads
= $4,800 - $6,750
= $1,950 (favorable)
Volume Variance = Budgeted overhead at actual activity - Budgeted fixed overhead
= ($6,750 ÷ 3,000/0.25) x 8,000 units - $4,800
= $300 (unfavorable)
Total Variance = Expenditure Variance + Volume Variance
= $1,950 (favorable) + $300 (unfavorable)
= $1,660 (favorable)
Conclusion :
the fixed overhead variance is $1,660 (favorable)
The total fixed overhead variance is $1,660 Favorable.
Here, we will calculate the expenditure and volume variance to enable us derive the total fixed overhead variance.
Expenditure Variance = Actual Fixed Overheads - Budgeted Fixed
Expenditure Variance = $4,800 - $6,750
Expenditure Variance = $1,950 Favorable
Volume Variance = Budgeted overhead at actual activity - Budgeted fixed overhead
Volume Variance = ($6,750 / (3,000/0.25)) * 8,000 units - $4,800
Volume Variance = $4500 Favorable - $4,800 Unfavorable
Volume Variance = $300 Unfavorable
Total Variance = Expenditure Variance + Volume Variance
Total Variance = $1,950 Favorable + $300 Unfavorable
Total Variance = $1,660 Favorable
Therefore, the total fixed overhead variance is $1,660 Favorable.
See similar solution here
brainly.com/question/14015592
Castle Corporation conducts business in States 1, 2, and 3. Castle’s $630,000 taxable income consists of $555,000 apportionable income and $75,000 allocable income generated from transactions conducted in State 3. Castle’s sales, property, and payroll are evenly divided among the three states, and the states all employ a three-equal-factors apportionment formula.
Determine how much of Castle’s income is taxable in each of the following states.
a. State 1: $ _________
b. State 2: $ _________
c. State 3: $ _________
Answer and Explanation:
The computation of the taxable income in each states is shown below:
a. For state 1
= Apportionable income ÷ number of states
= $555,000 ÷ 3
= $185,000
b. For state 2
= Apportionable income ÷ number of states
= $555,000 ÷ 3
= $185,000
c. For state 3
= $185,000 + $75,000
= $260,000
You won the lottery and may choose between Prize 1, which would pay you $50,000 today and $200,000 at the end of 10 years OR receive $50,000 today plus some annuity at the end of each year for 10 years. Using an interest rate of 5%, which of the following comes closest to the annuity that will make the present value of both prizes the same?
a. $172,782.65.
b. $38,431.68.
c. $122,782.65.
d. $15,900.91.
Answer:
Annual payment= $15,900.91
Explanation:
First, we need to calculate the present value of Prize 1:
PV= FV / (1 + i)^n
PV= 50,000 + [200,000 / (1.05^10)]
PV= $172,782.65
Now, we need to determine the annuity that would make equal both prizes:
Difference= 172,782.65 - 50,000= $122,782.65
To calculate the annuity that would have a PV of $122,782.65; we need to use the following formula:
Annual payment= (PV*i) / [1 - (1+i)^(-n)]
Annual payment= (122,782.65*0.05) / [1 - (1.05^-10)]
Annual payment= $15,900.91
describe how posts on social media can portray poor ethics to an employer. (answer in a complete sentence)
Answer:
Posts on social media can portray poor ethics to an employer, because if you post something that goes against what they work for or towards it can get in the way of what they believe!
Explanation:
Hope this helps! :)
Help soon!
A four-year college-level degree is called____.
(1). A bachelor's degree
(2). An associate's degree
(3). A career degree
A two-year college-level degree is called____.
(1). A bachelor's degree
(2). An associate's degree
(3). A career degree
_____ is a program that is usually no longer than one or two years, ending with a certificate, degree, or diploma in a specialized technical field.
(1). A career college
(2). A traditional collage
(3). An apprenticeship
______ is an on-the-job training experience in which the learner works at a job under the direction of an expert.
(1). A career college
(2). A traditional collage
(3). An apprenticeship
Answer:
A four-year college-level degree is called
A.) ✔ a bachelor’s degree.
A two-year college-level degree is called
B.) ✔ an associate degree.
_______is a program that is usually no longer than one or two years, ending with a certificate, degree, or diploma in a specialized technical field.
B.) ✔ A career college.
_______is an on-the-job training experience in which the learner works at a job under the direction of an expert.
C.) ✔ An apprenticeship
Explanation:
I hope this helps!!! :))
There are different kinds of program. The answers are below;
A four-year college-level degree is called a bachelor’s degree.
A two-year college-level degree is called an associate degree.
A career college is a program that is usually no longer than one or two years.
An apprenticeship is an on-the-job training experience in which the learner works at a job under the direction of an expert.
What is an apprenticeship?An apprenticeship is known to be a set up of
job training and classroom learning together that tends to help one to a trade credential.
Learn more about apprenticeship from
https://brainly.com/question/25689052
You want to have $3 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 10 percent and the inflation rate is 4.8 percent. What real amount must you deposit each year to achieve your goal
Answer:
Annual deposit= $23,647.9
Explanation:
Giving the following information:
Future value (FV)= 3,000,000
Numer of periods (n)= 40 years
Nominal rate= 10%
Inflation rate= 4.8%
To simplify calculations, we will calculate the real interest rate by deducting from the nominal interest rate the inflation rate:
Real interest rate= 0.1 - 0.048
Real interest rate= 0.052
Now, to calculate the annual deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (3,000,000*0.052) / [(1.052^40) - 1]
A= $23,647.9
Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $46,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 2 percent of your annual salary in an account that will earn 12 percent per year. Your salary will increase at 7 percent per year throughout your career.How much money will you have on the date of your retirement 39 years from today
Answer:
$1,360,173
Explanation:
I prepared an excel spreadsheet
A company pays its employees $3,850 each Friday, which amounts to $770 per day for the five-day workweek that begins on Monday. If the monthly accounting period ends on Thursday and the employees worked through Thursday, the amount of salaries earned but unpaid at the end of the accounting period is:
Answer:
$3080
Explanation:
Calculation to determine what the amount of salaries earned but unpaid at the end of the accounting period is:
Salaries earned but unpaid at the end of the accounting period =3850-$770
Salaries earned but unpaid at the end of the accounting period =$3080
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
(a) The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,400, 10,000, 12,000, and 13,000 units, respectively. All sales are on credit.
(b) Forty-percent of credit sales are collected in the month of the sale and 60% in the following month.
(c) The ending finished goods inventory equals 20% of the following month
d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound.
Required:
1. Discuss some of the major benefits to be gained from budgeting. Support your answer with suitable example?
2. What are the budgeted sales for July?
3. What are the expected cash collections for July?
4. What are the accounts receivable balance at the end of July?
5. According to the production budget, how many units should be produced in July?
Answer:
Morganton Company
1. Budgeting increases effective financial management while ensuring proper allocation of scarce resources. It encourages planning for the future as well as improved business decisions. It helps management to identify problems before they occur and to develop strategies for solving any problems that may arise. With budgeting, the organization is in a better position to monitor its overall performance and ensure the achievement of its goals and objectives. Finally, budgeting increases the motivation to achieve goals for both the management and individual employees.
2. The budgeted sales for July are $10,000.
3. The expected cash collections for July are $9,040.
4. The accounts receivable balance at the end of July are $6,000.
5. According to the production budget, the units produced in July are 1,040 units.
Explanation:
a) Data and Calculations:
Budgeted selling price per unit = $70
June July August September
Budgeted unit sales 8,400 10,000 12,000 13,000
Cash Collections:
40% month of sale 3,360 4,000 4,800 5,200
60% month following 5,040 6,000 7,200
Total cash collections 3,360 9,040 10,800 12,400
Production costs:
June July August September
Ending Inventory 2,000 2,400 2,600
Cost of goods sold 8,400 10,000 12,000 13,000
Goods available 10,400 12,400 14,600
Beginning Inventory 1,680 2,000 2,400 2,600
Production costs 8,720 10,400 12,200
Unit cost of materials $10 $10 $10 ($2 * 5)
Units produced 872 1,040 1,220
Accounts receivable balance at July end:
June credit sales $8,400
June cash collection 3,360
July 1 Beginning bal. 5,040
July credit sales 10,000
Cash collections 9,040
Ending balance 6,000
Barbara, a product manager at an organic soap manufacturing company, is supposed to interview a candidate for a new job opening in her department. The candidate arrives late to the interview, and therefore Barbara assumes that he will be tardy and uninterested in his job as well. Despite the fact that the candidate meets all the job requirements, Barbara rejects the candidate. Which of the following interview errors has Barbara most likely made?
A. The first-impression error.
B. The similarity error.
C. The contrast error.
D. The non-relevancy error.
Answer:
A. The first-impression error.
Explanation:
It is correct to say that Barbara probably made the first-impression error in the interview, because this error occurs when there are initial judgments about a candidate in the interview, it was what happened when Barbara thought that the candidate would be disinterested at work due to his late to the interview even the candidate meeting all the requirements of the position.
This error can be based on positive and negative judgments and can directly influence a job hiring.
Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year.Beginning Inventory Ending InventoryRaw material* 41,000 51,000Finished goods 81,000 51,000* Three pounds of raw material are needed to produce each unit of finished product.If Paradise Corporation plans to sell 485,000 units during next year, the number of units it would have to manufacture during the year would be:
Answer:
Production= 455,000 units
Explanation:
Giving the following information:
Beginning Inventory= 81,000
Ending Inventory= 51,000
Sales= 485,000
To calculate the production required for the period, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 485,000 + 51,000 - 81,000
Production= 455,000 units
Several financial or economic factors are relevant to the rent-or-buy decision. From the following list, identify the financial or economic factors that should be considered when performing this analysis. Check all that apply.
a. The pride that comes from owning your own home
b. Current and expected future housing prices
c. Current and expected future housing-related tax deductions
Answer:
The financial and economic factors that should be considered when performing this analysis are:
b. Current and expected future housing prices
c. Current and expected future housing-related tax deductions
Explanation:
a) A rent-or-buy decision should be based on financial and economic factors. There is the financial implication of making a down payment, closing costs, and maintenance expenses when one decides to own a home instead of renting an apartment. However, for the occupant, renting provides the advantage of known monthly costs. Some advantages of owning a house are building equity and tax benefits. The pride that comes that comes from owning a home is not a financial and economic benefit.
At the beginning of Year 2, the Redd Company had the following balances in its accounts:
Cash $ 16,800
Inventory 9,000
Land 3,900
Common stock 17,000
Retained earnings 12,700
During Year 2, the company experienced the following events:
Purchased inventory that cost $13,100 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $990 were paid in cash.
Returned $900 of the inventory it had purchased from Ross Company because the inventory was damaged in transit. The seller agreed to pay the return freight cost.
Paid the amount due on its account payable to Ross Company within the cash discount period.
Sold inventory that had cost $12,500 for $21,500 on account, under terms 2/10, n/45.
Received merchandise returned from a customer. The merchandise originally cost $2,150 and was sold to the customer for $3,000 cash. The customer was paid $3,000 cash for the returned merchandise.
Delivered goods FOB destination in Event 4. Freight costs of $880 were paid in cash.
Collected the amount due on the account receivable within the discount period.
Sold the land for $7,300.
Recognized accrued interest income of $650.
Took a physical count indicating that $5,100 of inventory was on hand at the end of the accounting period. (Hint: Determine the current balance in the inventory account before calculating the amount of the inventory write down.)
Record the events in general journal format. Assume that the perpetual inventory method and gross method is used.
Answer:
Redd Company
Journal Entries:
1. Debit Inventory $13,100
Credit Accounts payable (Ross Company) $13,100
To record the purchase of inventory on account, terms 2/10, n/30.
2. Debit Freight-in Expense $990
Credit Cash $990
To record the payment for freight.
3. Debit Accounts payable (Ross Company) $900
Credit Inventory $900
To record the return of goods to supplier.
4. Debit Accounts payable (Ross Company) $12,200
Credit Cash $11,956
Credit Cash Discounts $244
To record the payment on account.
5. Debit Accounts receivable $21,500
Credit Sales Revenue $21,500
To record the sale of goods on account, terms 2/10, n/45
Debit Cost of goods sold $12,500
Credit Inventory $12,500
To record the cost of goods sold.
6. Debit Sales Returns $3,000
Credit Cash $3,000
To record the payment of cash for returned goods.
Debit Inventory $2,150
Credit Cost of goods sold $2,150
To record the cost of goods returned.
7. Debit Freight-out Expense $880
Credit Cash $880
To record the payment of freight.
8. Debit Cash $18,130
Debit Cash Discounts $370
Credit Accounts Receivable $18,500
To record the receipt of cash on account.
9. Debit Cash $7,300
Credit Land $7,300
To record the sale of land for cash.
10. Debit Interest Receivable $650
Credit Interest Revenue $650
To accrue interest income.
11. Debit Cost of goods sold $5,750
Credit Inventory $5,750
To record the cost of inventory write down.
Explanation:
a) Data and Analysis:
1. Inventory $13,100 Accounts payable (Ross Company) $13,100, terms 2/10, n/30.
2. Freight-in Expense $990 Cash $990
3. Accounts payable (Ross Company) $900 Inventory $900
4. Accounts payable (Ross Company) $12,200 Cash $11,956 Cash Discounts $244
5. Accounts receivable $21,500 Sales Revenue $21,500, terms 2/10, n/45
Cost of goods sold $12,500 Inventory $12,500
6. Sales Returns $3,000 Cash $3,000
Inventory $2,150 Cost of goods sold $2,150
7. Freight-out Expense $880 Cash $880
8. Cash $18,130 Cash Discounts $370 Accounts Receivable $18,500
9. Cash $7,300 Land $7,300
10. Interest Receivable $650 Interest Revenue $650
11. Cost of goods sold $5,750 Inventory $5,750
Inventory write down:
Beginning $9,000
Purchase 13,100
Return (900)
Sold (12,500)
Return 2,150
Net $10,850
Ending 5,100
Write down $5,750
Mt Kinley is a strategy consulting firm that divides its consultants into three classes, associates, managers, and partners. The firm has been stable in size for the last 20 years, ignoring growth opportunities in the 90s, but also not suffering from a need to down-size in the recession. Specifically, there have been – and are expected to be – 200 associates, 60 managers, and 20 partners. The work environment at Mt Kinley is rather competitive. After 4 years of working as an associate, a consultant goes "either up or out", i.e. becomes a manager or is dismissed from the company. Similarly, after 6 years a manager either becomes a partner or is dismissed. The company recruits MBAs as associate consultants, no hires are made at the manager or partner level. A partner stays with the company for another 10 years (total of 20 years with the company). How many new MBA graduates does Mt Kinley have to hire every year? What is the probability that an incoming MBA graduate would make partner at Mt Kinley?
Answer:
1. 50 consultants per year
2. 4%
Explanation:
1. Calculation to determine How many new MBA graduates does Mt Kinley have to hire every year
Using this formula
Flow Rate of associates= Inventory / Flow Time
Let plug in the formula
Flow Rate of associates = 200 consultants / 4 years
Flow Rate of associates= 50 consultants per year
Therefore the numbers of MBA graduates that Mt Kinley have to hire every year is 50 consultants per year
2. Calculation to determine the probability that an incoming MBA graduate would make partner at Mt Kinley
First step is to calculate the Flow Rate of managers using this formula
Flow Rate of manager= Inventory / Flow Time
Let plug in the formula
Flow Rate of manager = 60 consultants / 6 years
Flow Rate of manager =10 consultants per year
Second step is to calculate the flow rate of partner using this formula
Flow rate of partner = Inventory/ Flow time
Let plug in the formula
Flow rate of partner = 20/10
Flow rate of partner = 2 partners per year
Third step is to calculate the probability of becoming a manager
Probability (Manager) = 10/50
Probability (Manager) = 20%
Fourth step is to calculate Probability of becoming a partner
Probability (Partner) = 2/10
Probability (Partner) = 20%
Now let calculate the probability that an incoming MBA graduate would make partner at Mt Kinley
Probability of MBA graduate becoming a partner = 20% x 20%
Probability of MBA graduate becoming a partner = 4%
Therefore the probability that an incoming MBA graduate would make partner at Mt Kinley is 4%
Cream 424,000 at $130 per gallon Liquid skim 344,500 at $115 per gallon The cost of purchasing 820,000 gallons of direct materials and processing it up to the split-off point to yield a total of 797,500 gallons of good product was $2,350,000. When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated to cream and liquid skim
Question Completion:
Production:
Cream = 443,000 gallons
Liquid skim = 354,500 gallons
Total production = 797,500 gallons
Answer:
The approximate amount of joint costs that will be allocated to cream and liquid skim =
Cream = $1,305,392
Liquid skim = $1,044,608
Explanation:
a) Data and Calculations:
Direct materials purchased = 820,000 gallons
Total yield at split-off = 797,500
Joint costs = $2,350,000
Cream Liquid Skim
Sales units at split-off 424,000 344,500 gallons
Selling price per unit $130 $115
Production Cream 443,000 354,500 gallons
Allocation of joint costs, using a physical volume measure:
Cream = $2,350,000 * 443,000/797,500 = $1,305,392
Liquid Skim = $2,350,000 * 354,500/797,500 = $1,044,608
The following information is available for Keyser Corporation for the current year: Beginning Work in Process Cost of Beginning Work in Process: (75% complete) 14,500 units Material $25,100 Started 75,000 units Conversion 50,000 Ending Work in Process Current Costs: (60% complete) 16,000 units Material $120,000 Abnormal spoilage 2,500 units Conversion 300,000 Normal spoilage (continuous) 5,000 units Transferred out 66,000 units All materials are added at the start of production. Refer to Keyser Corporation. Assume that the cost per EUP for material and conversion are $1.75 and $4.55, respectively. What is the cost assigned to ending Work in Process
Answer:
$71,680
Explanation:
Calculation to determine the cost assigned to ending Work in Process
Equivalent Units * Cost per Equivalent Unit =Total
Work in Process Current Costs 16,000* $1.75 =$28,000
Work in Process Current Costs: (60% complete 9,600*$4.55=$43,680
(16,000*60%=9,600)
Total Cost assigned to ending Work in Process=$28,000+$43,680
Total Cost assigned to ending Work in Process=$71,680
Therefore cost assigned to ending Work in Process is $71,680
Prior to May 1, Fortune Company has never had any treasury stock transactions. A company repurchased 140 shares of its common stock on May 1 for $7,000. On July 1, it reissued 70 of these shares at $52 per share. On August 1, it reissued the remaining treasury shares at $49 per share. What is the balance in the Paid-in Capital, Treasury Stock account on August 2
Answer: $70
Explanation:
First, we need to calculate the purchase price per share and this will be:
= Purchase amount / Number of shares bought
= $7000 / 140
= $50 per share
Therefore, the balance in the Paid-in Capital, Treasury Stock account on August 2 will be:
= [70 × ($52 - $50)] + [70 × ($49 - $50)]
= (70 × $2) + ($70 × $-1)
= $140 - $70
= $70
On January 1, 2019, Tonika Company issued a four-year, $10,700, 7% bond. The interest is payable annually each December 31. The issue price was $10,018 based on an 8% effective interest rate. Tonika uses the effective-interest amortization method. Rounding calculations to the nearest whole dollar, which of the following journal entries correctly records the 2019 interest expense?
A. Interest expense 1,052
Bond discount 205
Cash 847
B. Interest expense 847
Cash 847
C. Interest expense 805
Bond discount 42
Cash 847
Answer:
C. Interest Expense 805
Bond discount 42
Cash 847
Explanation:
The interest expense is calculated based on effective interest rate. The issue price is 10,018 which is the actual price and with effective interest rate interest amount is determined. The interest expense has cash value and bond discount.
10,018 * 8% = 804.45 approximately 805.
Bruin Company received a $100,000 insurance payment on the death of its company president. The company annually paid $1,000 of non-deductible insurance premiums on the policy. Bruin reported the insurance receipt as income and deducted the premium payments on its books. For ASC 740 purposes, the income and deduction are characterized as:
Answer:
The description as per the given scenario is explained in the segment below.
Explanation:
The receipt of benefits would be a mandatory beneficial improvement as well as the premium charge seems to be a permanently undesirable distinction to be made.Besides ASC 740 considerations, the profits earned as initial deposit mostly on the dissolution of the organization's president as well as higher price loss on either the policy shall be defined as a permanent insurance gain as well as a constant unfavorable premium gap.Chen Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Chen then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis.
Fixed cost per unit $5.20
Variable cost per unit $10.81
Selling price per unit $34.55
Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division. (Round answer to 2 decimal places.)
Minimum transfer price $ per unit
Assuming that the Small Motor Division does not have excess capacity, compute the minimum acceptable price for the transfer of the small motor to the Household Division. (Round answer to 2 decimal places.)
Answer:
See below
Explanation:
1. If the small motor division has excess capacity,
Minimum transfer price = Variable cost + Opportunity cost
Variable cost per unit = $10.81
Add:
Opportunity cost per unit = $0.00 (Because the company has sufficient excess capacity)
Minimum transfer price = $10.81
2. If the small motor division has excess capacity,
Minimum transfer price = Variable cost + Opportunity cost
Variable cost per unit = $10.81
Add:
Opportunity cost per unit = $23.74 (As the company has no excess capacity, contribution lost is the opportunity cost)
Minimum transfer price = $34.55
N.B
Contribution lost = Selling price per unit - Variable cost per unit
= $34,55 - $10.8 = $23.74
Quirch Inc. manufactures machine parts for aircraft engines. The CEO, Chucky Valters, was considering an offer from a subcontractor that would provide 2,400 units of product PQ107 for Valters for a price of $150,000. If Quirch does not purchase these parts from the subcontractor it must produce them in-house with the following unit costs: Cost per Unit Direct materials $31 Direct labor 19 Variable overhead 8 In addition to the above costs, if Quirch produces part PQ107, it would have a retooling and design cost of $9,800. The relevant costs of producing 2,400 units of product PQ107 internally are:______.
a. $149,000.
b. $129.800.
c. $150,000.
d. $164,200.
e. $148.300.
Answer:
a. $149,000
Explanation:
Calculation to determine what The relevant costs of producing 2,400 units of product PQ107 internally are
Relevant Costs = (2,400 x $31) + (2,400 x $19) + (2,400 x $8) + $9,800
Relevant Costs=$74,400+$45,600+$19,200+$9,800
Relevant Costs= $149,000
ThereforeThe relevant costs of producing 2,400 units of product PQ107 internally are $149,000
