Answer:
1. Dr Supplies expense $5,820
Cr Supplies $5,820
Dr Accounts receivable $3,900
Cr Earned fees $3,900
Dr Depreciation expense $3,000
Cr Accumulated depreciation $3,000
Dr Wages expense $2,475
Cr Wages payable $2,475
Dr Unearned fees $14,140
Cr Fees earned $14,140
2. Revenues $305,800
Expenses $261,800
Net income $44,000
3. Revenue $323,840
Expense $261,800
Net income $50,745
4. $6,745 Increase
Explanation:
1. Preparation of the journal entries necessary on April 30. 2019
Dr Supplies expense $5,820
Cr Supplies $5,820
($7,200-$1,380)
(To record supplies used)
Dr Accounts receivable $3,900
Cr Earned fees $3,900
(To record accrued fees Earned)
Dr Depreciation expense $3,000
Cr Accumulated depreciation $3,000
(To record equipment Depreciation)
Dr Wages expense $2,475
Cr Wages payable $2,475
(To record accrued wages)
Dr Unearned fees $14,140
Cr Fees earned $14,140
(To record fees earned)
2. Calculation to Determine the revenues, expenses, and net income of Crazy Mountain Outfitters before the adjusting entries.
REVENUE
Fees earned $305,800
EXPENSE:
Wages Expense $157,800
Rent Expense $55,000
Utilities Expense $42,000
Miscellaneous Expense $7,000
Expense $261,800
NET INCOME $44,000
($305,800-$261,800)
Therefore the revenues, expenses, and net income of Crazy Mountain Outfitters before the adjusting entries will be:
Revenues $305,800
Expenses $261,800
Net income $44,000
3. Calculation to Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. after the adjusting entries.
REVENUE
Fees Earned $305,800
Fees earned but unbilled $3,900
Unearned fees $14,140
Revenue $323,840
EXPENSE
Wages Expense $157,800
Rent Expense $55,000
Utilities Expense $42,000
Miscellaneous Expense $7,000
Supplies expense $5,820
Depreciation of equipment $3,000
Unpaid wages accrued $2,475
Expense $273,095
NET INCOME $50,745
($323,840-$273,095)
Therefore the revenues, expenses, and net income of Crazy Mountain Outfitters Co. after the adjusting entries will be:
Revenue $323,840
Expense $261,800
Net income $50,,745
4. Calculation to Determine the effect of the adjusting entries on Retained Earnings.
Effect of the adjusting entries=$50,745-$44,000
Effect of the adjusting entries=$6,745
Therefore the effect of the adjusting entries on Retained Earnings is Retained Earnings increases by $6,745
On December 31, 2020, Lipton, Inc. sold $3,000,000 (face value) of bonds. The bonds are dated December 31, 2020, pay interest annually on December 31, and will mature on December 31, 2020 The following schedule was prepared by the accountant for 2020 Annual Interest Period Interest to Interest be paid Expense Amortization Unamortized Amount $75,000 51.750 Bond Carrying Value $2,925,000 2,948,250 1 $240,000 $263,250 $23,250 On the basis of the above information, answer the following questions What is the stated interest rate for this bond issue? Stated interest rate SHOW LIST OF ACCOUNTS What is the market interest rate for this bond issun? Market interest rate 5 What is the market interest rate for this bond issue? Market interest rate % SHOW LIST OF ACCOUNTS What was the selling price of the bonds as a percentage of the face value? (Round answer to 1 decimal place, e.g. 52.7.) Selling price SHOW LIST OF ACCOUNTS tudy Prepare the journal entry to record the sale of the bond issue on December 31, 2020. (Credit account titles are autofnatically indented wh manually.) Debit Date Account Titles and Explanation Dec 31, 2020 Credit SHOW LIST OF ACCOUNTS Prepare the journal entry to record the payment of interest and amortization of discount on December 31, 2021. (Credit account titles an entered. Do not indent manually.) Account Titles and Explanation Debit Dec 31, 2021 Date Credit ly SHOW LIST OF ACCOUNTS
Answer:
Lipton, Inc.
1. Stated interest = Annual interest/Face value of bonds * 100
= $240,000/$3,000,000 * 100
= 8%
2. The market interest rate for this bond issue = Interest Expense/Price of issued bonds * 100
= $263,250/$2,925,000 * 100
= 9%
3. The selling price of the bonds as a percentage of the face value
= $2,925,000/$3,000,000 * 100
= 97,5%
4. Journal Entries:
Date Account Titles and Explanation Debit Credit
Dec 31, 2020 Cash $2,925,000
Bonds Discounts 75,000
Bonds Payable $3,000,000
To record the issuance of the bonds at a discount.
5. Journal Entries:
Date Account Titles and Explanation Debit Credit
Dec 31, 2021 Interest Expense $263,250
Amortization of bond discounts $23,250
Cash $240,000
To record the payment of interest and amortization of discount.
Explanation:
a) Data and Calculations:
December 31, 2020
Face value of issued bonds = $3,000,000
Interest payment = December 31 annually
Unamortized Amount = $75,000
Price of issued bonds = $2,925,000 ($3,000,000 - $75,000)
Discount on bonds = $75,000 ($3,000,000 - $2,925,000)
Schedule:
2020 Annual Interest Interest Expense Amortization Bond Carrying Value
$2,925,000
1 $240,000 $263,250 $23,250 2,948,250
1. Stated interest = Annual interest/Face value of bonds * 100
= $240,000/$3,000,000 * 100
= 8%
2. The market interest rate for this bond issue = Interest Expense/Price of issued bonds * 100
= $263,250/$2,925,000 * 100
= 9%
3. The selling price of the bonds as a percentage of the face value
= $2,925,000/$3,000,000 * 100
= 97,5%
Analysis:
December 31, 2020:
Cash $2,925,000 Bonds Discounts $75,000 Bonds Payable $3,000,000
December 31, 2021:
Interest Expense $263,250 Amortization of bond discounts $23,250 Cash $240,000
You are calculating the volume quantity needed for material that will compact to 95% of its original undisturbed volume. You know that you will need to fill a void with a volume of 1,487 cubic yards. What is the volume of material needed from the borrow pit to equal this amount when fully compacted
Answer:
Volume = 1565.56 cubic yards
Explanation:
The computation of the volume of material required is shown below:
95% × volume = 1,487 cubic yards
Volume = 1565.56 cubic yards
Basically 95% of volume is equivalent to the 1487 cubic yards
So according to this we determined the volume
Hence, the same should be considered
The demand for aloe vera hand lotion, one of numerous products manufactured by Smooth Skin Care Products Inc., has dropped sharply because of recent competition from a similar product. The company's chemists are currently completing tests of various new formulas, and it is anticipated that the manufacture of a superior product can be started on December 1, one month in the future. No changes will be needed in the present production facilities to manufacture the new product because only the mixture of the various materials will be changed.
The controller has been asked by the president of the company for advice on whether to continue production during November or to suspend the manufacture of aloe vera hand lotion until December 1. The controller has assembled the following pertinent data:
Sales (400,000 units) $32,000,000
Cost of goods sold 28,330,000
Gross profit $3,670,000
Selling and administrative expenses 4,270,000
Loss from operations ($600,000)
The production costs and selling and administrative expenses, based on production of 400,000 units in October, are as follows:
Direct materials $15per unit
Direct labor 17per unit
Variable manufacturing cost 35per unit
Variable selling and administrative expenses 10 per unit
Fixed manufacturing cost $1,530,000 for October
Fixed selling and administrative expenses 270,000 for October
Sales for November are expected to drop about 20% below those of the preceding month. No significant changes are anticipated in the fixed costs or variable costs per unit. No extra costs will be incurred in discontinuing operations in the portion of the plant associated with aloe vera hand lotion. The inventory of aloe vera hand lotion at the beginning and end of November is expected to be inconsequential.
Required:
Prepare an estimated income statement in absorption costing form for November for aloe vera hand lotion, assuming that production continues during the month.
Answer:
Estimated loss from operations for aloe vera hand lotion in November = -$534,000.
Explanation:
The following calculations are done first:
Direct materials per unit = $15
Direct labor per unit = $17
Variable manufacturing cost per unit = $35
Fixed manufacturing cost per unit = Fixed manufacturing cost for October / Number of units in October = $1,530,000 / 400,000 = $3.825
Cost of goods sold per unit = Product cost per unit = Direct materials per unit + Direct labor per unit + Variable manufacturing cost per unit + Fixed manufacturing cost per unit = $15 + $17 + $35 + $3.825 = $70.825
Also, we have:
Expected sales in unit for November = Sales in unit for October * (100% - Expected percentage drop in sales) = 400,000 * (100% - 20%) = 320,00 units
Selling price per unit = Sales in October / Units sold in October = $32,000,000 / 400,000 = $80
Variable selling and administrative expenses per unit = $10
Fixed selling and administrative expenses for October = $270,000
Based on the above calculations, an estimated income statement in absorption costing form for November for aloe vera hand lotion can be prepared as follows:
Smooth Skin Care Products Inc.
Estimated Income Statement for Aloe Vera Hand Lotion
(Absorption Costing)
For November
Particulars $
Sales Revenue ($80 * 320,000) 25,600,000
Cost of good sold ($70.825 * 320,000) (22,664,000)
Gross profit 2,936,000
Selling and administrative expenses:
Variable ($10 * 320,000) (3,200,000)
Fixed (270,000)
Loss from operations (534,000)
Therefore, we have:
Estimated loss from operations for aloe vera hand lotion in November = -$534,000
Exercise 4-7 Recording sales, purchases, shipping, and returns—buyer and seller LO P1, P2 Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $30,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $20,100. Sydney pays $400 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,300 of the $30,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $871. 20 Sydney pays Troy for the amount owed. Troy receives the cash immediately. (Both Sydney and Troy use a perpetual inventory system and the gross method.) 1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. 2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.
Answer:
Sydney Retailing (buyer) and Troy Wholesalers (seller)
Journal Entries:
For the Buyer (Sydney):
May 11 Debit Inventory $30,000
Credit Accounts Payable $30,000
To record the purchase of goods on account with invoice dated May 11, terms 3/10, n/90, FOB shipping point.
Debit Freight-in $400
Credit Cash $400
To record the freight-in expense.
May 12 Debit Accounts Payable $1,300
Credit Inventory $1,300
To record the return of goods to Troy.
May 20 Debit Accounts Payable $28,700
Credit Cash $27,839
Credit Cash Discounts $861
To record the payment on account, including discounts.
For the seller (Troy Wholesalers):
May 11 Debit Accounts Receivable $30,000
Credit Sales Revenue $30,000
To record the sale of goods on credit with invoice dated May 11, terms 3/10, n/90, FOB shipping point.
Debit Cost of goods sold $20,100
Credit Inventory $20,100
To record the cost of goods sold.
May 12 Debit Sales Returns $1,300
Credit Accounts Receivable $1,300
To record the sales returns on account.
Debit Inventory $871
Credit Cost of goods sold $871
To record the cost of goods returned.
May 20 Debit Cash $27,839
Debit Cash Discounts $861
Credit Accounts Receivable $28,700
To record the receipt of cash on account, including discounts.
Explanation:
a) Data and Analysis:
For the Buyer (Sydney):
May 11 Inventory $30,000 Accounts Payable $30,000
with invoice dated May 11, terms 3/10, n/90, FOB shipping point.
Freight-in $400 Cash $400
May 12 Accounts Payable $1,300 Inventory $1,300
May 20 Accounts Payable $28,700 Cash $27,839 Cash Discounts $861
For the seller (Troy Wholesalers):
May 11 Accounts Receivable $30,000 Sales Revenue $30,000
with invoice dated May 11, terms 3/10, n/90, FOB shipping point.
Cost of goods sold $20,100 Inventory $20,100
May 12 Sales Returns $1,300 Accounts Receivable $1,300
Inventory $871 Cost of goods sold $871
May 20 Cash $27,839 Cash Discounts $861 Accounts Receivable $28,700
Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 25,000 units in inventory, 60% complete as to materials and 40% complete as to conversion costs. The beginning inventory cost of $60,100 consisted of $44,800 of direct materials costs and $15,300 of conversion costs. During the month, the forming department started 300,000 units. At the end of the month, the forming department had 30,000 units in ending inventory, 80% complete as to materials and 30% complete as to conversion. Units completed in the forming department are transferred to the painting department. Cost information for the forming department follows. Beginning work in process inventory$60,100 Direct materials added during the month 1,231,200 Conversion added during the month 896,700 Exercise 03-7A FIFO: Costs per EUP LO C4 Assume that Fields uses the FIFO method of process costing. 1. Calculate the equivalent units of production for the forming department. 2. Calculate the costs per equivalent unit of production for the forming departmen
Answer:
Fields Company
Forming Department
Materials Conversion
1. The equivalent units of production 304,000 294,000
2. The costs per equivalent unit $4.05 $3.05
Explanation:
a) Data and Calculations:
Units Materials Conversion
Work in Process 25,000 60% 40%
Units started 300,000
Ending WIP 30,000 80% 30%
Units completed 295,000 100% 100%
Equivalent Units:
Units Materials Conversion
Work in Process 25,000 10,000 (40%) 15,000 (60%)
Units started 300,000
Ending WIP 30,000 24,000 (80%) 9,000 (30%)
Units completed 295,000 100% 100%
Units started and
completed 270,000 270,000 270,000
Total equivalent units 304,000 294,000
Units Materials Conversion Total
Costs added during the month $1,231,200 $896,700 $2,127,900
Total equivalent units 304,000 294,000
Cost per equivalent unit $4.05 $3.05
Which of the following statements correctly describe properties of an economic model? Check all that apply.
A) An economic model requires a complex set of assumptions.
B) An economic theory can be expressed in the form “If X, then Y, all other things held constant.”
C) An economic model requires simplified assumptions.
D) The purpose of an economic model is to depict the real world as accurately as possible.
Answer:
A) An economic model requires a complex set of assumptions.
D) The purpose of an economic model is to depict the real world as accurately as possible.
Explanation:
The following statements that correctly describes properties of an economic model are:
A) An economic model requires a complex set of assumptions.
D) The purpose of an economic model is to depict the real world as accurately as possible.
An economic model requires a complex set of assumptions.The purpose of an economic model is to depict the real world as accurately as possible.
Are the properties of economic model.
What is Economics?Economics is a social science which base on how human needs are met or satisfied through the allocation of scarce resources .
What is an Economic Model?Economic model is a theoretical processes which consist of variables and how this set of logical variables relate within them.
Therefore,
An economic model requires a complex set of assumptions.The purpose of an economic model is to depict the real world as accurately as possible.Are the properties of economic model.
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The Dow Theory describes stock prices as moving in trends analogous to the movement of water. Which of the following statements is nottrue?
A. Major trends resemble tides.
B. Intermediate trends resemble waves.
C. Short-run movements are like ripples.
D. Waves are the most important.
E. None of the above (that is, all are true statements)
Answer:
D.Waves are the most important I think sorry if I'm wrong
Explanation:
Hope this helped! :)
Slaughter Industries just signed a sales contract with a new customer. What is this contract worth as of the end of year 4 if the following payments will be received and the firm earns 6 percent on its savings
Answer:
$489,512.15
Explanation:
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
We are supposed to determine the present value
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = 84,000
Cash flow in year 2 = 113,000
Cash flow in year 3 = 125,000
Cash flow in year 4 = 130,000
I = 6%
PV = 387,739.47
387,739.47(1.06)^4 = $489,512.15
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Suppose there is a simple one good economy that only produces spinning rims. In 2015, the economy was able to produce 1 million sets of spinning rims at an amazing price of $500 per set. In 2016, the economy was able to produce 1 million sets of spinning rims at a price of $1,000 per set. By what amount did real GDP increase between 2015 and 2016 in the simple one good economy
Answer: 0
Explanation:
Firstly, we will calculate the nominal value in 2015 which will be:
= $500 x 1 million
= $500 million
The nominal value in 2016 will be:
= $1000 x 1 million
= $1 billion
Real GDP will be the price of the base year multiplied by the quantity of the current year which will be:
= $500 million x 1 million sets
= $500 million
Therefore, the increase in real GDP is zero.
Dixon Sales has four sales employees that receive weekly paychecks. Each earns $13 per hour and each has worked 40 hours in the pay period. Each employee pays 12% of gross in federal income tax, 3% in state income tax, 6.0% of gross in social security tax, 1.5% of gross in Medicare tax, and 0.5% in state disability insurance.
Required:
Journalize the recognition of the pay period ending January 19 that will be paid to the employees January 26.
Answer:
Jan. 19
Dr Sales Wages Expense $ 3,640.00
Cr Federal Income Tax Payable $ 436.80
Cr State Income Tax Payable $ 109.20
Cr Social Security Tax Payable $ 218.40
Cr Medicare Tax Payable $ 54.60
Cr State Disability Insurance $ 18.20
Cr Sales Wages Payable $ 2,802.80
Explanation:
Preparation of the journal for recognition of the pay period ending January 19 that will be paid to the employees January 26.
Jan. 19
Dr Sales Wages Expense $ 3,640.00 (7 *40 *13)
Cr Federal Income Tax Payable $ 436.80 (3,640 * 12%)
Cr State Income Tax Payable $ 109.20 (3,640 * 3%)
Cr Social Security Tax Payable $ 218.40 (3,640 * 6%)
Cr Medicare Tax Payable $ 54.60 (3,640* 1.5%)
Cr State Disability Insurance $ 18.20 (3,640 *0.5%)
Cr Sales Wages Payable $ 2,802.80
($3,640.00-$436.80-$109.20-$218.40-$54.60-$18.20)
Why is it so crucial to ascertain correct/accurateWhy is it so crucial to ascertain correct/accurate market information in your market research market information in your market research prior to carrying out a feasibility study?
Answer:
It is important because it can help identify potential obstacles that may impede its operations and recognize the amount of funding it will need to get the business up and running.
Explanation:
It is very crucial to ascertain accurate market information in your market research before carrying out a feasibility study so as to help identify possible obstacles that would impeded the business and also to know the amount needed for funding.
Which one is not a main question when you evaluate earnings' quality?
a. Source of revenue and persistent of revenues
b. Gross profit relationship between earnings and the market price of the common stock
c. Debt to equity ratio and total amounts of liabilities.
Answer:
Debt to equity ratio and total amounts of liabilities
Explanation:
Permanent and Temporary components of Earnings
The Permanent components of earnings may continue into future. Example is the sales revenue from regular product lines may continue in the future.
Temporary components of earnings may not continue in the future. Example is the gains or losses from the sale of equipment
Quality of Earnings
This is simply defined as any substance of earnings and their sustainability into future accounting periods.
The Quality of Earnings is influence largely by:
1. Accounting Methods: this entails all methods/means are set up/designed to match revenue and expenses.
2. Accounting estimates: this is when users of financial statement need to be aware of the impact that accounting estimates have on income.
3. One time items: this covers if and when earnings increase/decrease because of a one time items,then that portion of earnings will be sustained in the future.
Components of Earnings quality
1. Proper revenue and expense recognition
2. Declining or stable operating expenses compared to sales
3. High and persistently improving gross margin/ sales ratio etc.
The debt to equity ratio and the total amount of liabilities of a company is not important in evaluating the earnings' quality.
W, Inc. plans to have the same inventories at year end as was in the beginning of the year. The expected total fixed costs for the year are $288000, and the estimated variable costs per unit are $14. The planned number of units to be sold during the year is 60000, and the average unit selling price is $20. The maximum sales level within the relevant range are 70000. Requirements: NOTE: (SHOW ALL WORK) 1. What is the contribution margin ratio
Answer:
i needd points
Explanation:
lol
Actual indirect materials costs$11,800 $6,700 Actual indirect labor costs 55,600 45,900 Other overhead costs 16,000 49,900 Overhead applied 91,400 96,700 Storm Concert Promotions Determine whether overhead is overapplied or underapplied. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold. Valle Home Builders Determine whether overhead is overapplied or underapplied. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.
Answer:
See below
Explanation:
1. Actual costs = $11,800(indirect material + $55,600(indirect labor) + $16,000(other overhead costs) = $83,400(actual cost)
$91,400(overhead applied) - $83,400(actual cost) = Overhead applied is greater than the actual cost which means that overhead was over applied by $8,000
2. Debit: Manufacturing overhead $8,000
______ Credit: Cost of goods sold $8,000
3. Actual costs = $6,700(indirect material) + $45,900(indirect labor) + $49,900(other overhead costs) = $102,500
$96,700(overhead applied) - $102,000(actual costs) = Overhead applied is less than the actual costs which means that overhead was under applied by $5,800
4. Debit : Cost of goods sold $5,800
_______ Credit: Manufacturing overhead $5,800
What is the present discounted value of $10,000 that is to be received in 2 years if the market rate of interest is 4 percent?
a. 0 percent. b. 8 percent.c. 12 percent.
Answer:
PV = $9,245.56
Explanation:
Giving the following information:
Future value (FV)= $10,000
Number of periods (n)= 2 years
Discount rate (i)= 4% = 0.04
To calculate the present value (PV), we need to use the following formula:
PV = FV / (1 + i)^n
PV = 10,000 / (1.04^2)
PV = $9,245.56
Accounts receivable $ 18,000 Long-term notes payable $ 21,000 Accounts payable 11,000 Office supplies 2,800 Buildings 45,000 Prepaid insurance 3,560 Cash 7,000 Unearned services revenue 3,000 Compute Chavez Company's current ratio using the above information.
Answer: 2.24
Explanation:
Current ratio = Current Assets / Current liabilities
Current assets = Accounts receivable + Office supplies + Prepaid insurance + Cash
= 18,000 + 2,800 + 3,560 + 7,000
= $31,360
Current liabilities:
= Accounts payable + Unearned service revenue
= 11,000 + 3,000
= $14,000
Current ratio = 31,360 / 14,000
= 2.24
When the pressure for local responsiveness is strong and the pressure for coordination is weak for multinational corporations in an industry, the industry will tend to become:___________
A) global
B) consolidated
C) multidomestic
D) risky
E) indigenous
Reliability is how long an item or system will perform its function before it breaks. Good reliability will ______________________. Decrease logistics support requirements Increase life cycle sustainment costs Decrease system readiness Increase manpower waste
Answer:
Decrease logistics support requirements.
Explanation:
Decrease logistics support requirements is the correct answer because the increase in reliability decreases the requirement to correct the commodity or equipment. Therefore, the logistic support decreases which further decreases the manpower waste. Additionally, the good reliability shows that the product's quality is good and it will work efficiently for a longer time period. Thus, a good quality product requires less logistic support.
Reliability is a quality of being trustworthy and in performing constantly well. It result in measurement and calculations and tends to be more accurate.
Thus there is a decrease in logistics support requirements. When the system function before it breaks. Good reliability will always support the system.Hence the option A is correct.
Learn more about the or system will perform its function before.
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Consider the market for purple potatoes below and assume that a price ceiling of $30 is imposed by the government. Calculate the deadweight loss:
Answer:
$5000
Explanation:
Use the following information to answer questions Skip to question [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 43,000 $ 52,000 Work in process 10,200 21,300 Finished goods 63,000 35,600 Activities and information for May Raw materials purchases (paid with cash) 210,000 Factory payroll (paid with cash) 345,000 Factory overhead Indirect materials 15,000 Indirect labor 80,000 Other overhead costs 120,000 Sales (received in cash) 1,400,000 Predetermined overhead rate based on direct labor cost 70 %
Answer:
Missing word "a. Direct labor usage. b. Indirect labor usage. c. Total payroll paid in cash. Prepare journal entries for the above transactions for the month of May"
S/n General Journal Debit Credit
a Work in Process inventory $265,000
($345,000 - $80,000)
Factory wages payable $265,000
(To record for Direct labor usage)
b Factory overhead $80,000
Factory wages payable $80,000
(To record for Indirect labor usage)
c Factory wages payable $345,000
Cash $345,000
(To record for Total payroll paid in cash)
MC Qu. 98 Peterson Company estimates that overhead... Peterson Company estimates that overhead costs for the next year will be $6,920,000 for indirect labor and $840,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 80,000 machine hours are planned for this next year, what is the company's plantwide overhead rate
Answer:
Predetermined manufacturing overhead rate= $97 per machine hour
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (6,920,000 + 840,000) / 80,000
Predetermined manufacturing overhead rate= $97 per machine hour
The firm's fixed costs are $60 000, variable cost per unit is $15 and selling price per unit is $20. The contribution margin per unit is: Group of answer choices $5 $15 $20 $35 g
Answer:
See below
Explanation:
With regards to the above, the contribution margin is computed as;
Contribution margin per unit = Selling price per unit - Variable cost per unit
Selling price per unit = $20
Variable cost per unit = $15
Then,
Contribution margin per unit = $20 - $15
Contribution margin per unit = $5
The SRT partnership agreement specifies that partnership net income be allocated as follows in the following order: Partner S Partner R Partner TSalary allowance $20,000 $25,000 $15,000Interest on avg. capital balance 10% 10% 10%Remainder 30% 30% 40%Average capital balances for the current year were $60,000 for S, $50,000 for R, and $40,000 for T.Refer to the information given. Assuming no restrictions and current year net income of $45,000, what amount should be allocated to each partner? Partner S Partner R Partner TA) $17,000 $21,000 $7,000B) ($9,000) ($9,000) ($12,000)C) $13,500 $13,500 $18,000D) $22,500 $22,500 $0
Solution :
Note 1
calculation of remaining income after distribution of salary and interest on capital.
Total Net Income $ 45,000
Less : Salary allowance $ 60,000
($20,000 + $25,000 + $15,00)
Less : Interest on capital $ 15,000
($ 6,000 + $ 5,000 + $ 4,000)
Remaining income / (loss) to be allocated $ 30,000
Since the remaining income is negative, i.e. it loss to the SR partnership, so such Loss will also be allocated to the partners. Since in a partnership, Partners are required to share profits as well as losses. Hence, such loss will be deducted from the other shares.
Scheduled of amount allocated to each partner
Partners S Partner R Partner T
a). Salary allowance allocated $ 20,000 $ 25,000 $ 15,000
b). Interest on average capital $ 6000 $ 5000 $ 4000
balance allocated.
c). Remaining income allocated $ 9000 $ 9000 $ 12,000
Total allocation (a + b - c) : $ 17,000 $ 21,000 $ 7,000
If budgeted beginning inventory is $8,300, budgeted ending inventory is $9,400, and budgeted cost of goods sold is $10,260, budgeted purchases should be: Group of answer choices $9,160 $11,360 $1,960 $860 $1,100
Answer: $11,360
Explanation:
Budgeted cost of goods sold = Budgeted beginning inventory + Budgeted purchases - Budgeted ending inventory
10,260 = 8,300 + Budgeted purchases - 9,400
Budgeted purchases = 10,260 - 8,300 + 9,400
= $11,360
The government of Egalitariania wants to favor firms and is considering implementing a maximum wage. Assume the maximum wage is both binding and less than the equilibrium wage. What happens to the employment of workers
Answer: It will increase
Explanation:
A maximum wage means that companies do not have to pay more than a certain wage limit. If this wage limit is less than the equilibrium wage, companies would be able to spend less on wages than they are normally supposed to.
Their cost will therefore reduce and they will be able to hire more workers with the money they would have spent to pay the workers the equilibrium wage thereby increasing the number of people employed in the country.
The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next six years: Annual Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $250,000$37,500$180,000$300,000$750,000$725,000 The CFO of the company believes that an appropriate annual interest rate on this investment is 6.5%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar
Answer: $1,694,292
Explanation:
The present value is simply the sum of the discounted value of the various cash flows.
[tex]= \frac{250000}{1 + 0.065} + \frac{37500}{1.065^{2} } + \frac{180000}{1.065^{3}} + \frac{300000}{1.065^{4}} + \frac{750000}{1.065^{5}} + \frac{725000}{1.065^{6}}[/tex]
= $1,694,291.63
= $1,694,292
What is the effective annual cost of skipping the discount and paying at the end of the net period for the following credit terms: 6/10, net 70
Answer:
APR = 38.829%
APY = 45.70%
Explanation:
Missing word "Calculate the APR and the APY."
Discount % = 6%
Total period = 70
Discount period = 10
i. APR = (Discount% / [100% - Discount%]) * (365 / [Total period - Discount period])
APR = [6% / 100%-6%] * [365 / 70 - 10]
APR = 6%/94% * 365/60
APR = 0.06382979 * 6.083333
APR = 0.38829787
APR = 38.83%
ii. APY = (1 + [Discount% / {100% - Discount%}])^(365/[Total period - Discount period]) - 1
APY = [1 + [6%/ / 100%-6%]^(365/70-10) - 1
APY = {1 + 0.06382979]^6.083333 - 1
APY = 1.06382979^6.083333 - 1
APY = 1.45704250704 - 1
APY = 0.45704250704
APY = 45.70%
The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state’s newest millionaire. By choosing the six winning numbers on last week’s state lottery, Mr. Ormsby won the week’s grand prize totaling $1.38 million. The State Lottery Commission indicated that Mr. Ormsby will receive his prize in 20 annual installments of $69,000 each. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: 1. If Mr. Ormsby can invest money at a 11% rate of return, what is the present value of his winnings?
Answer:
the present value of his winning is $549,447
Explanation:
The computation of the present value of his winning is shown below:
= Annual installment × PVIFA factor at 20 years for 11%
= $69,000 × 7.963
= $549,447
Hence, the present value of his winning is $549,447
The same should be considered and relevant
The resource-based view of competitive advantage states that for something to yield competitive advantage it must be ______.
Answer:
"Rare, hard to duplicate, as well as non-substitutable" is the correct response.
Explanation:
Assesses as well as interprets companies' financial capabilities as well as stresses capacities and knowledge throughout the formulation of strategy to provides provision tangible benefits, is considered as RBV.Inputs that always encourage employees to exercise their business might be viewed as significant commodities.Spanolia LLC is estimating its WACC. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for 1,000 USD. The firm's marginal tax rate is 40 percent. What is the after-tax cost of debt? Answer in % terms to 2 decimal places w/o the % sign.
Answer:
Spanolia LLC
The after-tax cost of debt is:
= 7.20%.
Explanation:
a) Data and Calculations:
Coupon interest rate of bonds = 12%
Maturity period = 20 years
Selling price = $1,000
Firm's marginal tax rate = 40%
After-tax cost of debt = Coupon interest rate * (1 - tax rate)
= 12% * (1 - 0.4)
= 12% * 0.6
= 7.20%
b) Spanolia's after-tax cost of debt is derived by multiplying the cost of debt by the after-tax rate. The after-tax cost of debt represents the interest that Spanolia LLC pays on the bonds less the income tax savings that it gains because interest expenses are tax-deductible.
