Journal entries on January 1, 2021:
Investment in Bonds (Dr) $219,000,000
Cash (Cr) $219,000,000
This entry records the purchase of the bonds for $219 million.
Journal entries on June 30, 2021:
Investment in Bonds (Dr) $7,200,000 ($240,000,000 × 6% × 6/12)
Interest Revenue (Cr) $7,200,000
This entry records the receipt of interest revenue on June 30, 2021.
Journal entries on December 31, 2021:
Investment in Bonds (Dr) $7,200,000 ($240,000,000 × 6% × 6/12)
Interest Revenue (Cr) $7,200,000
This entry records the receipt of interest revenue on December 31, 2021.
The investment in the December 31, 2021 balance sheet:
Fuzzy Monkey will report the investment in bonds at its fair value, which is $230 million. Therefore, the investment in the December 31, 2021 balance sheet will be $230 million.
Fuzzy Monkey's 2021 statement of cash flows:
The statement of cash flows will include the cash inflows from the interest received semiannually on June 30 and December 31, which total $14.4 million ($7.2 million + $7.2 million). The purchase of the bonds on January 1, 2021, for $219 million will be reflected as a cash outflow in the investing activities section.
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Javon Company set standards of 3 hours of direct labor per unit at a rate of $15.40 per hour. During October, the company actually uses 17,500 hours of direct labor at a $273,000 total cost to produce 6,000 units. In November, the company uses 21,500 hours of direct labor at a $336,475 total cost to produce 6,400 units of product.
AH = Actual Hours
SH = Standard Hours
AR = Actual Rate
SR = Standard Rate
(1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of these two months.
(2) Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further?
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November
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Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period.
Flexible Budget at 80% Capacity Actual Results
Production (in units) 53,000 48,800
Overhead Variable overhead $ 291,500 Fixed overhead 53,000 Total overhead $ 344,500 $ 344,600
1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 26,500 DLH, computed as 53,000 units × 0.5 DLH per unit.
2. Compute the standard overhead applied.
3. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)
1) In, October Direct Labor Rate Variance is; $3,500 (unfavorable), DLRV is; $15,420 (unfavorable), and Total DLRV is; $18,920 (unfavorable). In, November DLRV is; $5,375 (unfavorable), DLRV is; $12,760 (unfavorable), and Total DLRV is; $18,135 (unfavorable). 2) Javon Company will investigate further the direct labor variances that exceed 5% of the actual direct labor cost.
Direct Labor Variances;
October:
Standard Hours (SH): 3 hours per unit
Actual Hours (AH): 17,500 hours
Standard Rate (SR): $15.40 per hour
Actual Rate (AR): $273,000 / 17,500 hours = $15.60 per hour
Direct Labor Rate Variance;
DLRV = (AR - SR) × AH
= ($15.60 - $15.40) × 17,500
= $3,500 (unfavorable)
Direct Labor Efficiency Variance:
DLEV = (AH - SH) × SR
= (17,500 - (3 × 6,000) × $15.40
= $15,420 (unfavorable)
Total Direct Labor Variance:
DLV = DLRV + DLEV
= $3,500 (unfavorable) + $15,420 (unfavorable)
= $18,920 (unfavorable)
November:
Standard Hours (SH): 3 hours per unit
Actual Hours (AH): 21,500 hours
Standard Rate (SR): $15.40 per hour
Actual Rate (AR): $336,475 / 21,500 hours = $15.65 per hour
Direct Labor Rate Variance:
DLRV = (AR - SR) × AH
= ($15.65 - $15.40) × 21,500
= $5,375 (unfavorable)
Direct Labor Efficiency Variance:
DLEV = (AH - SH) × SR
= (21,500 - (3 × 6,400) × $15.40
= $12,760 (unfavorable)
Total Direct Labor Variance:
DLV = DLRV + DLEV
= $5,375 (unfavorable) + $12,760 (unfavorable)
= $18,135 (unfavorable)
Javon Company will investigate further the direct labor variances that exceed 5% of the actual direct labor cost. In this case, both the direct labor rate variance and the direct labor efficiency variance for October and November will be investigated further since their absolute values are greater than 5% of the respective actual direct labor costs.
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Milltown Company sells used cars. During the month, the dealership sold 38 cars at an average price of $15,000 each. The budget for the month was to sell 34 cars at an average price of $16,300. Compute the dealership’s total sales variance for the month.
The dealership's total sales variance for the month is $14,800. To compute the dealership's total sales variance for the month, we need to calculate the difference between the actual sales revenue and the budgeted sales revenue.
Actual sales revenue = Number of cars sold * Average price per car
Budgeted sales revenue = Budgeted number of cars to be sold * Budgeted average price per car
Given:
Number of cars sold = 38
Average price per car = $15,000
Budgeted number of cars to be sold = 34
Budgeted average price per car = $16,300
Actual sales revenue = 38 * $15,000 = $570,000
Budgeted sales revenue = 34 * $16,300 = $555,200
Total sales variance = Actual sales revenue - Budgeted sales revenue
Total sales variance = $570,000 - $555,200
Total sales variance = $14,800
Therefore, the dealership's total sales variance for the month is $14,800.
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How would you describe e-commerce?
E-commerce, short for electronic commerce, refers to the buying and selling of goods, services, and information over the internet. It involves the online transaction of products and services between businesses, individuals, or a combination of both
. E-commerce has revolutionized the way businesses operate and consumers engage in commercial activities.
At its core, e-commerce enables businesses to establish an online presence and conduct various commercial activities such as online shopping, electronic payments, online banking, supply chain management, and online marketing. It eliminates the need for physical stores or face-to-face interactions, allowing customers to browse and purchase products from the comfort of their own homes or anywhere with internet access.
E-commerce platforms provide a digital marketplace where buyers and sellers can connect, exchange information, and complete transactions. These platforms often offer features such as secure payment gateways, product catalogs, customer reviews, personalized recommendations, and order tracking systems to enhance the shopping experience.
E-commerce offers several advantages, including convenience, accessibility, a wide range of product choices, competitive pricing, and global reach. It has transformed the retail industry, enabling businesses to reach a broader customer base and operate 24/7 without the limitations of traditional brick-and-mortar stores.
Overall, e-commerce has reshaped the way businesses operate and consumers engage in commerce, providing a seamless and efficient online environment for buying and selling products and services.
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Assume that an economy is in long-run equilibrium. Assume that consumers wish to hold less money because they use credit cards more frequently to purchase goods and services than cash. (a) Draw a correctly labeled graph of the money market and show the effect of the reduced holdings of money on the equilibrium nominal interest rate in the short run. (b) Based on the change in the interest rate in part (a), what will happen to each of the following in the short run? (i) Prices of previously issued bonds (ii) The price level and real income. Explain. (c) With a constant money supply, based on your answer to part b(ii), will the velocity of money increase, decrease, or remain the same, or is the change indeterminate? (d) If the central bank wishes to reverse the change in the interest rate identified in part (a), what open market operation would it use?
In the short run, a decrease in the demand for money due to increased credit card usage will lower the equilibrium nominal interest rate. This decrease in interest rates will lead to an increase in bond prices and the price level, while real income remains unchanged.
(a) In the money market graph, the vertical axis represents the nominal interest rate, and the horizontal axis represents the quantity of money. A decrease in the demand for money shifts the money demand curve leftward. Initially, the equilibrium nominal interest rate is determined at the intersection of the money supply and money demand curves. With reduced money demand, the equilibrium interest rate decreases in the short run.
(b) (i) The decrease in interest rates leads to an increase in bond prices. When interest rates fall, the fixed interest payments of previously issued bonds become more attractive, causing the demand for existing bonds to increase, thereby raising their prices.
(ii) The decrease in interest rates, and subsequently lower borrowing costs, leads to increased investment and consumption. This increased demand for goods and services raises the price level. Real income, however, remains unchanged in the short run as the increase in the price level offsets any potential gains from increased consumption.
(c) With a constant money supply, a decrease in the price level resulting from increased credit card usage and reduced money demand will reduce the velocity of money. Velocity of money is the number of times a unit of currency is used to purchase goods and services in a given time period. As the price level falls, people need to hold fewer money balances to transact the same level of goods and services, leading to a decrease in the velocity of money.
(d) To reverse the decrease in interest rates, the central bank can conduct an open market operation by selling government bonds. By selling bonds, the central bank reduces the money supply, shifting the money supply curve to the left. This decrease in the money supply increases the equilibrium interest rate, bringing it back to the original level.
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This application assignment is designed to test your understanding of setting staffing outcome goals and integrating strategic staffing with other functional areas of human resource management. Caribou Coffee's senior leaders logically assumed that customer service was the reason customers returned to their stores. This made sense, particularly given the company's emphasis on the customer service skills of all its employees, including district managers who were responsible for 814 locations. But they found that store success varied more across district managers than within a single district manager's stores. So, if there was an across-the-board focus on customer service, why was the performance of each district manager's stores so similar, but the performance of each district manager so different? What exactly accounted for the difference? Caribou discovered that its district managers' skills did vary, It discovered that the most important district manager competency was his or her ability to effectively staff the store manager position. When a district manager took the time to find the best replacement for a store manager instead of automatically promoting the shift supervisor with the most tenure, the results had a strong impact on revenue. Caribou's ability to show its district managers concrete evidence that hiring the right store managers positively impacts sales has been critical in focusing district managers on the careful staffing of its store manager positions. Not only have sales increased in the previously underperforming stores, the district managers appreciated the information and assistance as well in improving their own performance. Submit your answers to the following: 1. Develop three staffing goals (must include both process and outcome goals for full credit) that would reinforce Caribou's desire to hire the best store managers. 2. How else can Caribou Coffee ensure that its staffing function for store managers is integrated with other HR functional areas (e.g. performance management, succession management, training and development, compensation.) Provide three specific examples.
Caribou Coffee discovered that the key to improving store performance lies in the careful staffing of store manager positions. To reinforce their commitment to hiring the best store managers, Caribou Coffee should establish staffing goals that include a rigorous selection process, an increase in high-performing store managers, and a reduction in turnover rates.
1) Staffing Goals for Caribou Coffee:
a) Process Goal: Implement a comprehensive selection process to identify and hire the best store managers. This includes conducting thorough interviews, assessing candidates' skills and competencies, and conducting reference checks.
b) Outcome Goal: Increase the percentage of high-performing store managers. This goal focuses on the end result of hiring the best store managers who consistently drive sales and customer satisfaction.
c) Outcome Goal: Reduce turnover among store managers. This goal emphasizes the importance of retaining top talent in store management positions.
2) Integration of Staffing Function with Other HR Functional Areas:
a) Performance Management: Caribou Coffee can integrate the staffing function with performance management by establishing clear performance expectations for store managers and linking those expectations to the selection criteria used during the hiring process.
b) Succession Management: To ensure a smooth transition in store management positions, Caribou Coffee can identify high-potential employees within the organization who can be groomed for future store manager roles.
c) Training and Development: Caribou Coffee can integrate the staffing function with training and development initiatives by providing comprehensive onboarding programs for newly hired store managers. This includes training in areas such as customer service, operations management, and leadership skills.
d) Compensation: Caribou Coffee can align its compensation strategy with the staffing function by implementing performance-based incentives for store managers.
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In a periodic inventory system, a customer returning merchandise on account is recorded by crediting: Select one: O a. Cost of Goods Sold O b. Sales Returns O c. Purchases O d. Inventory Oe. Accounts Receivable
Sales Returns
When a customer returns merchandise on account in a periodic inventory system, it is recorded by crediting the "Sales Returns" account. This account is used to track the value of returned merchandise and to reduce the sales revenue previously recorded.
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Waterway Manufacturing Inc's accounting records reflect the following inventories: Dec.31. 2019 Raw materials inventory $99400 Work in process inventory 130700 Finished goods inventory 125100 Dec. 31. 2020 $79800 145100 neemann 115200 During 2020, Waterway purchased $949500 of raw materials, incurred direct labour costs of $124700, and incurred manufacturing overhead totalling $160500. Waterway Manufacturing's cost of goods manufactured for 2020 amounted to $1239900. How much would it report as cost of goods sold for the year?
The cost of goods sold for the year is $1,210,400.
To calculate the cost of goods sold for the year, we need to determine the change in finished goods inventory.
The cost of goods manufactured can be calculated as follows:
Cost of Goods Manufactured = Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process Inventory
Beginning Work in Process Inventory (Dec. 31, 2019) = $130,700
Total Manufacturing Costs = Raw materials purchased + Direct labor costs + Manufacturing overhead
Ending Work in Process Inventory (Dec. 31, 2020) = $145,100
Total Manufacturing Costs = $949,500 (raw materials purchased) + $124,700 (direct labor costs) + $160,500 (manufacturing overhead)
Total Manufacturing Costs = $1,234,700
Cost of Goods Manufactured = $130,700 + $1,234,700 - $145,100
Cost of Goods Manufactured = $1,220,300
Now, to calculate the cost of goods sold, we need to consider the change in finished goods inventory:
Change in Finished Goods Inventory = Beginning Finished Goods Inventory - Ending Finished Goods Inventory
Beginning Finished Goods Inventory (Dec. 31, 2019) = $125,100
Ending Finished Goods Inventory (Dec. 31, 2020) = $115,200
Change in Finished Goods Inventory = $125,100 - $115,200
Change in Finished Goods Inventory = $9,900
Cost of Goods Sold = Cost of Goods Manufactured - Change in Finished Goods Inventory
Cost of Goods Sold = $1,220,300 - $9,900
Cost of Goods Sold = $1,210,400
Therefore, Waterway Manufacturing Inc. would report $1,210,400 as the cost of goods sold for the year.
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The units of an item available for sale during the year were as follows: 11 units at $45 10 units at $46 Jan. 1 Inventory Purchase Feb. 17 Jul. 21 Purchase Nov. 23 Purchase There are 11 units of the item in the physical inventory at December 31. The periodic inventory system is used. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if required. a. Determine the inventory cost by the first-in, first-out method. 18 units at $49 12 units at $50 b. Determine the inventory cost by the last-in, first-out method. c. Determine the inventory cost by the weighted average cost method.
a. Inventory cost under FIFO method = $1,298 b. Inventory cost under LIFO method = $1,409 c. Inventory cost under weighted average cost method = $2,438
To determine the inventory cost using different costing methods, let's calculate it using the first-in, first-out (FIFO), last-in, first-out (LIFO), and weighted average cost methods.
a. FIFO Method:
The cost of the inventory is determined based on the assumption that the units purchased first are the first ones sold.
We have the following information:
Jan. 1 Inventory: 11 units at $45 = $495
Purchase on Feb. 17: 10 units at $46 = $460
Purchase on Jul. 21: 18 units at $49 = $882
Purchase on Nov. 23: 12 units at $50 = $600
To calculate the inventory cost under FIFO, we will use the units purchased earliest in the year first. The cost of the remaining 11 units will be determined by the most recent purchases.
Inventory cost under FIFO:
11 units at $45 = $495 (Jan. 1 Inventory)
10 units at $46 = $460 (Feb. 17 Purchase)
Remaining 7 units at $49 = $343 (Jul. 21 Purchase)
Total inventory cost under FIFO = $495 + $460 + $343 = $1,298
b. LIFO Method:
The cost of the inventory is determined based on the assumption that the units purchased last are the first ones sold.
Using the same information, we will calculate the inventory cost under LIFO.
Inventory cost under LIFO:
Most recent purchase: 12 units at $50 = $600 (Nov. 23 Purchase)
Remaining 9 units at $49 = $441 (Jul. 21 Purchase)
Remaining 8 units at $46 = $368 (Feb. 17 Purchase)
Total inventory cost under LIFO = $600 + $441 + $368 = $1,409
c. Weighted Average Cost Method:
The cost of the inventory is determined by taking the weighted average of the unit costs.
To calculate the weighted average cost, we will add up the total costs and divide by the total number of units.
Total cost = (11 units * $45) + (10 units * $46) + (18 units * $49) + (12 units * $50)
= $495 + $460 + $882 + $600
= $2,437
Total units = 11 + 10 + 18 + 12 = 51
Weighted Average Cost per unit = Total cost / Total units = $2,437 / 51 ≈ $47.80 (rounded to the nearest cent)
Inventory cost under the weighted average cost method:
11 units at $47.80 = $525.80
Remaining 40 units at $47.80 = $1,912
Total inventory cost under the weighted average cost method = $525.80 + $1,912 = $2,437.80 (rounded to the nearest whole dollar)
To determine the inventory cost using different costing methods, let's calculate it using the first-in, first-out (FIFO), last-in, first-out (LIFO), and weighted average cost methods.
a. FIFO Method:
The cost of the inventory is determined based on the assumption that the units purchased first are the first ones sold.
We have the following information:
Jan. 1 Inventory: 11 units at $45 = $495
Purchase on Feb. 17: 10 units at $46 = $460
Purchase on Jul. 21: 18 units at $49 = $882
Purchase on Nov. 23: 12 units at $50 = $600
To calculate the inventory cost under FIFO, we will use the units purchased earliest in the year first. The cost of the remaining 11 units will be determined by the most recent purchases.
Inventory cost under FIFO:
11 units at $45 = $495 (Jan. 1 Inventory)
10 units at $46 = $460 (Feb. 17 Purchase)
Remaining 7 units at $49 = $343 (Jul. 21 Purchase)
Total inventory cost under FIFO = $495 + $460 + $343 = $1,298
b. LIFO Method:
The cost of the inventory is determined based on the assumption that the units purchased last are the first ones sold.
Using the same information, we will calculate the inventory cost under LIFO.
Inventory cost under LIFO:
Most recent purchase: 12 units at $50 = $600 (Nov. 23 Purchase)
Remaining 9 units at $49 = $441 (Jul. 21 Purchase)
Remaining 8 units at $46 = $368 (Feb. 17 Purchase)
Total inventory cost under LIFO = $600 + $441 + $368 = $1,409
c. Weighted Average Cost Method:
The cost of the inventory is determined by taking the weighted average of the unit costs.
To calculate the weighted average cost, we will add up the total costs and divide by the total number of units.
Total cost = (11 units * $45) + (10 units * $46) + (18 units * $49) + (12 units * $50)
= $495 + $460 + $882 + $600
= $2,437
Total units = 11 + 10 + 18 + 12 = 51
Weighted Average Cost per unit = Total cost / Total units = $2,437 / 51 ≈ $47.80 (rounded to the nearest cent)
Inventory cost under the weighted average cost method:
11 units at $47.80 = $525.80
Remaining 40 units at $47.80 = $1,912
Total inventory cost under the weighted average cost method = $525.80 + $1,912 = $2,437.80 (rounded to the nearest whole dollar)
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The current spot price for one ounce of gold is 900. The continu- ously compounded risk-free interest rate is 8% for all maturities. (a) Find the delivery price on a forward contract for one ounce of gold with delivery date (i) in 1 year, and (ii) in 2 years. (b) At time t = 0 Smith enters a 2-year forward contract to buy an ounce of gold (long) and at the same time enters a 3-year forward contract to sell an ounce of gold (short). Find the combined value of Smith's forward contracts at time t=1 as a function of S, (the spot price of an ounce of gold at time t =1). (c) Suppose that at time t=1 the continuously compounded risk- free rate of interest for all maturities is 10%. Repeat part (b).
a. The delivery in 1 year is $975.96 and The delivery in 1 year is $1056.91
b. the combined value of Smith's forward contracts at time t = 1 is 2S - 2 * Delivery Price
c. Repeat the calculations for the updated Delivery Price and substitute it into the combined value formula to find the updated combined value at time t = 1.
(a) To find the delivery price on a forward contract for one ounce of gold, we can use the formula:
Delivery Price = Spot Price * e^(r * T)
where:
Spot Price is the current spot price of one ounce of gold ($900 in this case).
r is the continuously compounded risk-free interest rate (8% or 0.08 in decimal form).
T is the time to delivery in years.
(i) For delivery in 1 year:
Delivery Price = $900 * e^(0.08 * 1)
Delivery Price = $900 * e^0.08
Delivery Price ≈ $900 * 1.0832870677
Delivery Price ≈ $975.96
(ii) For delivery in 2 years:
Delivery Price = $900 * e^(0.08 * 2)
Delivery Price = $900 * e^0.16
Delivery Price ≈ $900 * 1.174344028
Delivery Price ≈ $1056.91
(b) At time t = 0, Smith enters a 2-year forward contract to buy an ounce of gold (long) and a 3-year forward contract to sell an ounce of gold (short).
The value of a long forward contract is given by:
Long Forward Value = Spot Price - Delivery Price
The value of a short forward contract is given by:
Short Forward Value = Delivery Price - Spot Price
At time t = 1, the combined value of Smith's forward contracts can be calculated as:
Combined Value = Long Forward Value - Short Forward Value
The Long Forward Value at time t = 1 is:
Long Forward Value = S - Delivery Price (where S is the spot price at time t = 1)
The Short Forward Value at time t = 1 is:
Short Forward Value = Delivery Price - S
Therefore, the combined value of Smith's forward contracts at time t = 1 is:
Combined Value = (S - Delivery Price) - (Delivery Price - S)
Combined Value = 2S - 2 * Delivery Price
(c) At time t = 1, the continuously compounded risk-free interest rate for all maturities is now 10% or 0.1 in decimal form.
Using the same calculations as in part (b), the combined value of Smith's forward contracts at time t = 1 is:
Combined Value = 2S - 2 * Delivery Price
To find the new Delivery Price at time t = 1, we use the formula from part (a) with the updated interest rate (0.1) and the time to delivery (2 years or 1 year, depending on which contract we are considering).
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What is the default setting for the way QuickBooks Online applies credits to customers? A. Credits result in a cash refund. B. Credits void the original transaction. C. Credits are applied to new invoices. D. Credits result in a refund applied to the customer's original form of payment. 48. What is a benefit that is unique to the Project function in QBO Plus? A. You can evaluate a project's profitability. B. You can track expenses by jobs via the sub-customer. C. You can convert an expense into a billable item with a markup. D. You can create estimates and progress invoices. 49. Carlos has many customers in his company file. To improve navigation, he wants to clean up his Customers list by removing those he's pretty sure won't be coming in again. What's the most efficient way for Carlos to do this? A. Delete the unwanted customers. B. Put an asterisk (∗) before the unwanted customer names. C. Edit the unwanted customer names to the names of new customers. D. Mark the unwanted customers as inactive. 50. Why is it important to process a return/credit using the same product or service the customer was originally charged for? A. The credit memo will not apply the credit to the open invoice. B. The cash refunded will not be recorded against the bank account. C. The Customers list will be inaccurate. D. The ledger accounts will be inaccurate.
48 D. Credits result in a refund applied to the customer's original form of payment.
49 D. Mark the unwanted customers as inactive.
50 D. The ledger accounts will be inaccurate.
48 The default setting for the way QuickBooks Online applies credits to customers is that credits result in a refund applied to the customer's original form of payment. This means that when a credit is issued to a customer, it will be refunded to the customer using the same method of payment they used for the original transaction.
49 To clean up the Customers list and remove customers that are not expected to return, the most efficient way is to mark the unwanted customers as inactive. This keeps their information in the system for reference purposes but removes them from active customer lists and transactions.
50 It is important to process a return/credit using the same product or service the customer was originally charged for because the ledger accounts will be inaccurate if a different product or service is used. By using the same product or service, the corresponding revenue and expense accounts will be properly adjusted, ensuring accurate financial reporting.
In QuickBooks Online, the default setting for applying credits to customers is to issue a refund applied to the customer's original form of payment. To clean up the Customers list efficiently, unwanted customers should be marked as inactive. Processing returns/credits using the same product or service ensures accuracy in the ledger accounts. It is essential to follow these practices to maintain accurate financial records and provide efficient customer management.
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Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation a. The Marketing Department has estimated sales as follows for the remainder of the year (in units) The selling price of the beach umbrellas is $11 per unit 27,000 July 37,000 October 84,000 November 13,500 August 14,000 September 53.000 December b. All sales are on account. Based on past experience, sales are collected in the following pattern 30% in the month of sale 65% in the month following sale 5% uncollectible Sales for June totaled $363.000 c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the end of June d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore the company requires that the ending inventory of Gilden be equal to 50% of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be 88,100 feet June 30 September 30 feet e. Gilden costs $0.80 per foot. One-half of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $62.120
The third-quarter budget for Milo Company, a manufacturer of beach umbrellas, should include estimated sales of 27,000 units in July, 13,500 units in August, 14,000 units in September, 37,000 units in October, 84,000 units in November, and 53,000 units in December. The selling price per unit is $11.
To prepare the budget for the third quarter, Milo Company needs to consider various factors. Firstly, the Marketing Department has estimated the sales volume for each month remaining in the year. The projected sales figures are 27,000 units for July, 13,500 units for August, 14,000 units for September, 37,000 units for October, 84,000 units for November, and 53,000 units for December. Considering the selling price of $11 per unit, these estimates can be used to determine the expected revenue for each month.
Additionally, the company should take into account the collection pattern of sales. Based on past experience, 30% of the sales are collected in the month of sale, 65% are collected in the following month, and 5% are uncollectible. This information helps in calculating the expected cash inflows for each month.
Moreover, Milo Company maintains finished goods inventories equal to 15% of the following month's sales. This means that at the end of June, the company should have finished goods inventories amounting to 15% of the estimated sales for July.
Furthermore, the company needs to manage its inventory of Gilden, the material used to manufacture the beach umbrellas. The ending inventory of Gilden should be equal to 50% of the following month's production needs. Given that 88,100 feet of Gilden is available on June 30 and September 30, the company can plan its production and purchases accordingly.
Lastly, the cost of Gilden is $0.80 per foot, and the company follows a payment pattern where half of a month's purchases are paid for in the month of purchase, while the remaining amount is paid in the following month. The accounts payable on July 1 for purchases made in June will be $62,120.
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The estimated sales of the company in units for the rest of the year are given as follows:
27,000 units in July13,500 units in August14,000 units in September37,000 units in October53,000 units in December84,000 units in NovemberThe selling price of the beach umbrellas is $11 per unit. All sales are made on the account. The sales collection pattern based on past experience is:
30% is collected in the month of sale65% is collected in the month after the sale5% is uncollectibleThe company's sales for June were $363,000. The company maintains a finished goods inventory equal to 15% of the sales of the next month. This condition will be met at the end of June.
Every beach umbrella requires 4 feet of Gilden, a material that is difficult to obtain. As a result, the company needs to maintain an inventory of Gilden equal to 50% of the next month's production requirements. From June 30 to September 30, the inventory of Gilden on hand will be 88,100 feet.
The cost of Gilden is $0.80 per foot. Half of the purchases of Gilden for one month are paid for during the month of purchase, and the remaining half is paid for the next month. The accounts payable for Gilden purchases during June on July 1 will be $62,120.
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Case Study: Samra Belkovich is a medical assistant who works for Pearson Physician Group. She has been asked to develop some continuing education materials for a community service project that the office will conduct at the local shopping mall. She is assigned to locate the most current information, design and develop the materials for distribution, and include marketing materials for the event CRITICAL THINKING: Refer to the case study at the beginning of the chapter and use what you have leamed to answer the following questions. 1. Where should Samra begin? 2. Which software should she use to design and develop the educational materials and the marketing materials? 3. What is the difference between Active file, inactive File, and closed file? 4. Describe where you would find a patient "Emma Hoffman" file who has not been seen by Dr. William for two years, and there has been no communication with her. Is this Active, Inactive, or closed file?
Samra should begin her project by conducting thorough research to locate the most current and relevant information for the continuing education materials. For designing and developing the educational and marketing materials, she should choose appropriate software that suits the project requirements.
To start her project, Samra should conduct research by referring to credible sources, medical journals, professional associations, and relevant online platforms to gather the most up-to-date and accurate information related to the topic of the community service project. This research will ensure that the educational materials she develops are based on current knowledge and best practices. For designing and developing the educational and marketing materials, Samra can consider using software applications. These tools offer a wide range of design options, templates, and features to create visually appealing materials that effectively convey the intended message.
In the context of patient files, the terms "active file," "inactive file," and "closed file" refer to different stages of the record's lifecycle. An active file typically represents a current or ongoing patient record that is actively being used and updated. An inactive file indicates that the patient has not had recent interactions or visits with the healthcare provider, but the file remains accessible for future reference. A closed file typically signifies that the patient has ended their relationship with the healthcare provider or practice, and the file is no longer actively maintained or accessible for regular use. In the case of patient "Emma Hoffman" who has not seen Dr. William for two years and had no communication, her file would likely be categorized as an inactive file. It means that the file is still retained and available for reference, but it is not actively updated or used unless there is a need for historical information or potential future interactions.
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Why is independence important to the auditing profession? Who decides whether an auditor is independent? Does an audit ensure a fair presentation of a company's financial statements or that internal control systems are
free of material deficiencies? Explain.
Independence is crucial to the auditing profession for several reasons. Firstly, it enhances the credibility and objectivity of the audit process.
An independent auditor is seen as unbiased and impartial, which increases confidence in the reliability of the financial statements and the overall audit opinion.
Secondly, independence helps to maintain the integrity of the auditing profession by minimizing conflicts of interest and potential undue influence from the audited entity.
The responsibility for determining whether an auditor is independent lies with various regulatory bodies and professional organizations. In many countries, audit firms are subject to external oversight by government agencies or professional bodies that set ethical and independence standards. These standards outline the requirements and guidelines that auditors must adhere to in order to maintain their independence.
An audit does not guarantee a fair presentation of a company's financial statements or the absence of material deficiencies in internal control systems. An audit is conducted based on a sampling method and is designed to provide reasonable assurance, not absolute assurance. It involves assessing the risks, gathering evidence, and forming an opinion on whether the financial statements are free from material misstatements. However, an audit is not a guarantee of accuracy or completeness. It provides reasonable assurance that the financial statements are fairly presented in all material respects, but it cannot catch all errors or frauds. Similarly, an audit assesses internal controls to identify material weaknesses, but it does not provide absolute assurance that all deficiencies are detected.
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Restate the following one-, three-, and six-month outright forward European term bid-ask quotes in forward points. Spot One-Month Three-Month Six-Month One-Month Three-Month Six-Month 1.35291.3548 1.3544-1.3568 1.3560 1.3590 1.3600 1.3640
Restated one-, three-, and six-month outright forward European term bid-ask quotes in forward points is One-Month: -0.0015, Three-Month: -0.0020, Six-Month: -0.0001
To restate the bid-ask quotes in forward points, we need to calculate the difference between the forward rate and the spot rate.
Spot rate: 1.3529
One-Month Forward rate: 1.3544-1.3568
Three-Month Forward rate: 1.3560-1.3590
Six-Month Forward rate: 1.3600-1.3640
To calculate the forward points, we subtract the spot rate from the forward rate:
One-Month Forward points: (1.3544 - 1.3529) - (1.3568 - 1.3529) = -0.0015
Three-Month Forward points: (1.3560 - 1.3529) - (1.3590 - 1.3529) = -0.0020
Six-Month Forward points: (1.3600 - 1.3529) - (1.3640 - 1.3529) = -0.0001
Now we can restate the bid-ask quotes in forward points:
One-Month: -0.0015
Three-Month: -0.0020
Six-Month: -0.0001
Please note that the forward points represent the difference in pips (decimal places) between the spot rate and the forward rate. Negative forward points indicate a discount for the base currency (it's trading at a lower value in the forward market compared to the spot market).
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THE POWER OF ADVERTISING
Advertising allows brands to communicate with consumers. Often, it is said, that after a few years without any type of advertising, the brand is often forgotten by consumers. Your head of Marketing has always been creative in its communication and fixed an advertising budget based on the price of the previous year's operating expenses.
They received some earned media due to their amazing entrepreneurship story.
Advertising allows brands to communicate with consumers and helps in creating brand awareness. The head of marketing has fixed an advertising budget based on the price of the previous year's operating expenses.
Advertising has a strong power in creating brand awareness and boosting the sales of a product or service. It allows brands to communicate with consumers and deliver their message to the right target audience. Without any type of advertising, a brand can be forgotten by consumers after a few years.
In the given scenario, the head of marketing has always been creative in its communication and has fixed an advertising budget based on the previous year's operating expenses. This strategy helps in maintaining a consistent advertising presence and reaching out to the target audience regularly.
Moreover, the brand has received some earned media due to their amazing entrepreneurship story, which can be beneficial in enhancing the brand's reputation and credibility. Earned media refers to the publicity generated by a brand without paying for it. It includes media coverage, social media mentions, reviews, and word-of-mouth recommendations.
Therefore, advertising plays a crucial role in creating brand awareness, while earned media can act as an additional boost in enhancing a brand's reputation and credibility.
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What is the purpose of the inventory accounts in a manufacturing company and what types of activities cause the accounts to increase and decrease? How would you describe the flow of costs through the inventory accounts? How does the manufacturing overhead application process work?
The purpose of inventory accounts in a manufacturing company is to track the costs associated with the production and storage of goods. These accounts reflect the value of raw materials, work in progress, and finished goods.
In a manufacturing company, the flow of costs through the inventory accounts follows the production process. Initially, raw materials are acquired and recorded as an increase in the raw materials inventory account. As production progresses, raw materials are consumed and transferred to the work in progress (WIP) inventory account, while labor and other manufacturing costs are added to the WIP account. Once the production is complete, the finished goods are transferred to the finished goods inventory account.
The manufacturing overhead application process involves allocating indirect production costs to the products manufactured. These costs, such as factory rent, utilities, and depreciation, cannot be directly traced to specific products. To allocate these costs, a predetermined overhead rate is established based on an estimated level of activity, such as direct labor hours or machine hours. The predetermined rate is then applied to the actual level of activity incurred during production to determine the manufacturing overhead cost to be allocated to each unit of output. This allocated cost is added to the direct materials and direct labor costs to determine the total cost of each unit and update the inventory accounts accordingly.
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teach not just solve
Consider a macroeconomic model with one consumption good and one asset where the consumer problem is stated as \[ \max E_{t}\left[\sum_{j=0}^{\infty} \beta^{j} \frac{1}{\gamma} C_{t+j}^{\gamma}\right]
The given macroeconomic model involves maximizing the expected discounted sum of future consumption raised to a constant elasticity of substitution.
In the macroeconomic model, the consumer problem aims to determine the optimal consumption choice over an infinite time horizon. The objective function is to maximize the expected discounted sum of future consumption, denoted by the term E_t, where the consumer discounts future consumption by a factor of β^j. The parameter β represents the discount factor, which reflects the consumer's time preference.
The term γ represents the constant elasticity of substitution (CES) parameter, which determines the consumer's preference for intertemporal substitution between consumption periods. A higher value of γ implies a higher elasticity of substitution, indicating that the consumer is more willing to substitute consumption across time.
The objective of the consumer is to choose the consumption level C_t in each period that maximizes the given objective function. By solving this maximization problem, the consumer can determine the optimal consumption pattern over time, considering the trade-off between present and future consumption and their preferences for intertemporal substitution.
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The graph represents the market for artichokes (in pounds per week) at a Midwest farmers' market. If the equilibrium price is $3 per pound and the equilibrium quantity is 100 pounds per week, what is the economic surplus in the market for artichokes each week?
According to the graph, the economic surplus in the market for artichokes each week is $100.
The difference between the amount the producer is willing to supply items for and the actual amount obtained by him when he does the deal is known as producer surplus.
Total marginal expenses are subtracted from total income to calculate producer surplus. It may also be calculated based on each item sold by deducting the item's marginal cost from its income. Each item's marginal cost is the lowest acceptable price for that item.
Here,
Equilibrium price = $3 per pound
Equilibrium quantity = 100 pounds
Y-intercept of supply curve = $1 per pound
Calculate the Producer Surplus as follows:
PS = 1/2 x [Equilibrium price - Y-intercept of supply curve] x Equilibrium quantity
PS = 1/2 x [$3 - $1] x 100
PS = $100
Therefore,
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The graph is attached below:
Pick one of the early national unions, tell us about it,
and why it is important?
Also, tell us what drew you to pick that
union?
One of the early national unions is the National Labor Union (NLU), founded in 1866. It was the first attempt to establish a national labor federation in the United States and played a significant role in advocating for workers' rights.
I chose to discuss the National Labor Union (NLU) because of its historical significance and pioneering efforts in the labor movement. The NLU emerged during a time of rapid industrialization and the rise of large-scale industrial capitalism in the United States. It aimed to unite workers from different industries and trades into a cohesive organization to address common concerns and fight for better working conditions.
The NLU was important because it paved the way for future labor movements and laid the foundation for organized labor in the United States. It advocated for significant labor reforms such as the eight-hour workday, which later became a widely recognized labor standard. The NLU also played a crucial role in raising awareness about worker exploitation, promoting the idea of collective bargaining, and influencing subsequent labor organizations.
Furthermore, the NLU's commitment to equality and social justice appealed to me. Its efforts to fight for equal pay for equal work, regardless of gender or race, were ahead of their time and reflected a progressive vision for labor rights. The NLU's commitment to addressing broader social issues beyond traditional labor concerns demonstrated its understanding of the interconnectedness of workers' rights with larger societal challenges.
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If a company is considering optimizing the physical location for every activity in the value chain, which of the following is not a possible strategic advantage for that decision? Multiple Choice
performance enhancement
political risk enhancement
cost reduction
political risk reduction
"Political risk enhancement" is not a strategic advantage. Enhancing political risk implies intentionally increasing the exposure or vulnerability of a company to political risks, which is not a desirable outcome for most organizations. The objective is typically to reduce or manage political risks effectively.
Out of the given options, "political risk enhancement" is not a possible strategic advantage for optimizing the physical location of every activity in the value chain.
Optimizing the physical location for every activity in the value chain typically aims to achieve benefits such as performance enhancement, cost reduction, and political risk reduction.
1. Performance enhancement: By strategically locating activities in an optimized manner, companies can improve their operational efficiency, coordination, and overall performance. For example, locating manufacturing closer to suppliers or markets can reduce lead times and improve responsiveness.
2. Cost reduction: Optimizing the physical location can help companies minimize transportation costs, reduce inventory holding costs, and take advantage of economies of scale. By strategically placing facilities and activities, companies can optimize their cost structure.
3. Political risk reduction: Choosing locations with stable political environments and favorable regulations can help mitigate political risks such as policy changes, nationalization, or regulatory uncertainties. By carefully assessing political risk factors, companies can minimize potential disruptions to their operations.
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Assume that the Palestinian Government uses balanced budget. It decreases taxes by NIS 100 million and increases spending by NIS 100 million and the marginal propensity to consume (MPC)=0.75. As a result, the GDP will: (a) Stay the same. (b) Increase by NIS 800 million.
(c) Increase by NIS 75 million. (d) Increase by NIS 100 million.
The increase in government spending and decrease in taxes by the Palestinian Government, combined with a marginal propensity to consume of 0.75, would result in an increase in GDP by NIS 100 mn.
When the Palestinian Government decreases taxes by NIS 100 million, households have more disposable income available. Assuming a marginal propensity to consume (MPC) of 0.75, it implies that households will spend 75% of the additional income, which amounts to NIS 75 million.
This increase in consumer spending stimulates economic activity and leads to a subsequent increase in aggregate demand.
Moreover, the government's decision to increase spending by NIS 100 million injects additional funds into the economy. This increase in government expenditure further boosts aggregate demand and stimulates economic growth.
Considering both the increased consumer spending and government expenditure, the total increase in aggregate demand would be NIS 100 million (NIS 75 million from consumer spending + NIS 100 million from government spending).
This increase in aggregate demand leads to an increase in production and output, resulting in an increase in GDP by NIS 100 million.
Therefore, the correct answer is (d) Increase by NIS 100 million.
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As the head of production, you need to communicate a recent change in your unit's manufacturing processes. You understand that how you present the problem to your employees can affect how they feel about the change and their willingness to comply with the new directives. Accordingly, you make sure to describe the new change as a challenge to overcome rather than a burden they need to endure. With this approach, which cognitive bias are you being most mindful of? Escalation of commitment Selection bias Self-serving bias Hindsight bias Framing bias
With the approach of describing the new change as a challenge to overcome rather than a burden, the cognitive bias that the head of production is being most mindful of is **framing bias**.
Framing bias refers to the tendency of individuals to react differently to the same information depending on how it is presented or framed. By presenting the change as a challenge to overcome, the head of production is framing the situation in a positive and motivating light. This framing is intended to influence the employees' perception of the change, emphasizing the potential for growth, development, and achievement rather than focusing on the negative aspects or burdensome nature of the change.
By being mindful of framing bias, the head of production recognizes the importance of shaping the employees' mindset and emotions towards the change. By framing it as a challenge, they are appealing to the employees' sense of motivation, perseverance, and achievement, which can increase their willingness to embrace the change and actively engage in the new manufacturing processes.
By avoiding framing the change as a burden or something negative, the head of production aims to mitigate potential resistance, negative attitudes, and demotivation among employees. This approach can help maintain employee morale, foster a positive work environment, and enhance the chances of successful implementation and adoption of the new manufacturing processes.
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A project with an initial cost of $24.450 is expected to generate cash flows of $5,800.57.900: 58.700, 57,600, and $6,500 over each of the next five years, respectively. What is the project's payback period? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16)
The project's payback period is approximately 4.21 years.
The payback period is the length of time required to recover the initial investment. To calculate the payback period, we need to determine in which year the cumulative cash flows equal or exceed the initial cost. We start by subtracting each year's cash flow from the initial cost and track the cumulative amount recovered. Here's the calculation:
Year 1: $24,450 - $5,800 = $18,650
Year 2: $18,650 - $5,700 = $12,950
Year 3: $12,950 - $5,760 = $7,190
Year 4: $7,190 - $6,500 = $690
Year 5: $690 - $6,500 = -$5,810 (negative value)Since the cumulative amount becomes negative in Year 5, we know that the initial cost is not fully recovered by then. Therefore, the payback period lies between Year 4 and Year 5.
To calculate the payback period more precisely, we can use linear interpolation: Payback period = Year 4 + (Cumulative amount at Year 4 / Cash flow in Year 5)
Payback period = 4 + ($690 / $6,500)
Payback period ≈ 4.106
Rounded to two decimal places, the project's payback period is approximately 4.21 years.
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Why do start-up companies typically not pay dividends to their shareholders, while mature companles usually do? When financial analysts try to estimate a company's intrinsic stock price, why do they prefer to use expected future free cash flows (FCF) and not expected future net profits as the numbers laid out on their timeline?
Start-up companies typically do not pay dividends to their shareholders because they prioritize reinvesting their earnings back into the business to fuel growth and expansion. On the other hand, mature companies usually pay dividends because they have established stable operations and generate sufficient profits to distribute to shareholders.
Financial analysts prefer to use expected future free cash flows (FCF) rather than expected future net profits when estimating a company's intrinsic stock price because FCF represents the cash available to all stakeholders, including shareholders and debt holders, after accounting for necessary capital expenditures. FCF provides a more accurate measure of a company's ability to generate value and meet its financial obligations.
Start-up Companies and Dividends:
Start-up companies typically operate in industries with high growth potential and have significant capital requirements. They need to reinvest their earnings into research and development, marketing, expanding their customer base, and scaling operations. By retaining earnings, start-ups can fund these growth initiatives and increase the value of the company over time. Paying dividends would limit the availability of funds for reinvestment and hinder their growth prospects.
Mature Companies and Dividends:
Mature companies, on the other hand, have reached a stage where they have established operations, a stable customer base, and consistent cash flows. These companies may have limited opportunities for substantial growth or reinvestment. Instead, they focus on maintaining profitability and returning excess cash to shareholders in the form of dividends. Paying dividends is a way for mature companies to reward shareholders for their investment and attract new investors looking for income-generating assets.
Expected Future Free Cash Flows (FCF) vs. Expected Future Net Profits:
Financial analysts prefer to use expected future free cash flows (FCF) rather than expected future net profits when estimating a company's intrinsic stock price because FCF represents the cash generated by the company that is available to all stakeholders, including both equity and debt holders.
FCF takes into account the cash flow from operations and deducts capital expenditures necessary to maintain and grow the business. By focusing on FCF, analysts can assess the company's ability to generate cash that can be distributed to shareholders, used to pay down debt, or reinvested in the business.
Net profits, on the other hand, are the accounting measure of profitability that does not account for cash flows related to non-cash expenses, changes in working capital, or capital expenditures. It may not accurately reflect the actual cash available to stakeholders.
Start-up companies typically prioritize reinvesting their earnings for growth and expansion, while mature companies often pay dividends as they have stable operations and generate excess cash. Financial analysts prefer to use expected future free cash flows (FCF) rather than expected future net profits because FCF represents the cash available to all stakeholders and provides a more accurate measure of a company's value and financial health. FCF considers necessary capital expenditures and provides insights into the company's ability to generate cash that can be distributed or reinvested.
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You survey a client and you conclude that she can tolerate a
standard deviation
σT of
at most 14%. You can allocate your client’s wealth into a
corporate bond fund, a common stock fund, and a U.S.
You can allocate your client's wealth into a corporate bond fund, a common stock fund, and a U.S. Treasury bill fund. The allocation will depend on the client's risk tolerance and the expected returns and standard deviations of each investment option.
When determining the allocation of a client's wealth among different investment options, it is essential to consider their risk tolerance and desired level of return. In this case, the client's risk tolerance is indicated by a maximum standard deviation of 14%. Corporate bond funds generally offer lower risk compared to common stock funds. They invest in bonds issued by corporations and provide fixed income with lower potential returns and volatility. Common stock funds, on the other hand, invest in stocks of publicly traded companies and offer higher potential returns but also higher volatility.
U.S. Treasury bills are considered low-risk investments as they are backed by the U.S. government. They provide relatively stable returns with low volatility. To determine the allocation, you would need to analyze the expected returns and standard deviations of each investment option. It is crucial to create a diversified portfolio that balances risk and return based on the client's risk tolerance.
The specific allocation will depend on factors such as the client's investment goals, time horizon, and personal preferences. It is recommended to consult with a financial advisor or investment professional who can analyze the client's circumstances and help determine the appropriate allocation strategy.
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why must a company use predetermined overhead rates when using job order costing?
A company must use predetermined overhead rates when using job order costing because it allows for the allocation of overhead costs to specific jobs or products based on estimated or predetermined rates, rather than waiting until the end of the accounting period to calculate the actual overhead costs.
In job order costing, different jobs or products have different characteristics and require varying levels of overhead resources. Predetermined overhead rates are established before the actual production process begins, based on estimates of the total overhead costs and an allocation base, such as direct labor hours or machine hours.
Using predetermined overhead rates provides several benefits. First, it allows for more timely cost allocation. As overhead costs are estimated in advance, they can be allocated to jobs as the production process progresses, allowing for more accurate and timely job cost calculations.
Second, predetermined rates enable better planning and budgeting. By estimating overhead costs in advance, companies can plan and budget for their expected expenses and adjust their pricing strategies accordingly.
Lastly, using predetermined rates helps in achieving consistency and comparability in cost calculations. By applying the same predetermined rate to similar jobs or products, companies can ensure consistency in cost allocation, making it easier to compare costs across different jobs or periods.
Overall, predetermined overhead rates facilitate efficient cost allocation, better planning, and consistency in job order costing, enabling companies to make informed decisions and effectively manage their costs.
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Tom biscuits company has employed you as a manager and you have found out that workers are not satisfied with their work
a) While carrying out job design how will you introduce job enlargement at work?
b) Discuss the human relations school regarding motivating workers. How will you introduce its aspects in this company?
c) Identify and describe two motivational theories that will be most helpful in refocusing the efforts of the entire team of workers at TOM biscuits CO. Itd? Explain
d) When employees enjoy the space, they work in, it helps to foster a positive organizational culture" identify characteristics of successful organizational culture and briefly describe how you as a manager can use these characteristics to foster a positive culture within the department
a) Job enlargement is a job design technique in which employees are given a wider variety of tasks and responsibilities. The following are the steps for introducing job enlargement at work: Identify the tasks that the employees are currently doing and decide if these are sufficient. Determine the employee's interests and abilities, as well as whether they require new responsibilities.
Create a list of new tasks that employees will be able to perform. Assign the new tasks to employees. Create a training plan for new tasks. Job enlargement is a method of providing more job satisfaction to employees. The method works by increasing the number of tasks that the employee must perform by giving them more duties, such as different tasks or additional responsibilities. This may assist in increasing employee satisfaction and commitment by making the work more diverse and less monotonous
.b) The human relations school focuses on establishing trust and promoting good communication between workers and managers. The following are the steps for introducing its aspects in this company: Create an open-door policy and encourage communication between employees and managers. Establish communication channels such as meetings and newsletters. Allow employees to have a say in decision-making. Encourage social interaction among workers.
The human relations school believes that the primary motivation for workers is their social needs, such as the need for a sense of belonging, respect, and recognition. The school believes that the manager should create an environment that enables workers to meet their social needs while also satisfying their job requirements.
c) The two motivational theories that will be most helpful in refocusing the efforts of the entire team of workers are: Herzberg's Motivation-Hygiene Theory and McClelland's Theory of Needs.
Herzberg's Motivation-Hygiene Theory suggests that employees are motivated by factors that satisfy their needs, such as achievement, recognition, and the work itself. In contrast, hygiene factors such as pay, working conditions, and job security do not motivate employees but must be present to prevent dissatisfaction. On the other hand, McClelland's Theory of Needs suggests that three primary needs, namely achievement, affiliation, and power, motivate people. The manager can use these theories to refocus the efforts of the entire team of workers by implementing methods that motivate them, such as recognition and job enrichment, to satisfy their achievement needs and introducing team-building activities to meet their affiliation needs.
d) The characteristics of successful organizational culture are as follows: A clear and strong mission statement that inspires employees. Open and transparent communication. Strong leadership and direction. A sense of belonging and teamwork. A positive and supportive work environment.
As a manager, one can use these characteristics to foster a positive culture within the department. For example, having an open-door policy and a transparent communication system can increase employee morale and trust, encouraging employees to work together to achieve common goals. Additionally, having a positive and supportive work environment, such as creating an environment that is not overly competitive, can help build a positive organizational culture.
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Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information follows. For Year Ended December 31 Clothes Shoes Sales $ 832,000 $ 448,000 Cost of goods sold 445,000 291,200 Direct expenses: Wages 123,000 84,000 Supplies used 14,000 10,100 Depreciation 18,000 14,000 The company reports the following indirect expenses for the year. Indirect Expense Amount Allocation Base Utilities $ 6,200 Square feet of space occupied Supervisor salaries 30,000 Number of employees in department Additional information about the two departments follows. Department Square Footage Number of Employees Clothes 32,200 84 Shoes 13,800 36 Required: 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements.
Allocation of indirect expenses to the two operating departments:
a. Utilities: The allocation base for utilities is square feet of space occupied. Since Clothes occupies 32,200 square feet and Shoes occupies 13,800 square feet, we can calculate the allocation as follows:
Clothes: (32,200 / (32,200 + 13,800)) * $6,200 = $3,949.38
Shoes: (13,800 / (32,200 + 13,800)) * $6,200 = $2,250.62
b. Supervisor salaries: The allocation base for supervisor salaries is the number of employees in each department. Given that Clothes has 84 employees and Shoes has 36 employees, we can calculate the allocation as follows:
Clothes: (84 / (84 + 36)) * $30,000 = $21,000
Shoes: (36 / (84 + 36)) * $30,000 = $9,000
Departmental income statements:
a. Clothes Department:
Sales: $832,000
Cost of goods sold: $445,000
Direct expenses:
Wages: $123,000
Supplies used: $14,000
Depreciation: $18,000
Indirect expenses:
Utilities: $3,949.38
Supervisor salaries: $21,000
Total expenses: $624,949.38
Net income: Sales - Cost of goods sold - Direct expenses - Indirect expenses
Net income: $832,000 - $445,000 - $123,000 - $14,000 - $18,000 - $3,949.38 - $21,000 = $207,050.62
b. Shoes Department:
Sales: $448,000
Cost of goods sold: $291,200
Direct expenses:
Wages: $84,000
Supplies used: $10,100
Depreciation: $14,000
Indirect expenses:
Utilities: $2,250.62
Supervisor salaries: $9,000
Total expenses: $410,550.62
Net income: Sales - Cost of goods sold - Direct expenses - Indirect expenses
Net income: $448,000 - $291,200 - $84,000 - $10,100 - $14,000 - $2,250.62 - $9,000 = $37,449.38
Please note that the above calculations are based on the information provided and assume that there are no other expenses or revenues. The presentation format of the departmental income statements may vary depending on the reporting requirements and accounting practices of the company.
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What would be the effect on February's statement of earnings of a $600 utility bill received on February 27, 2021 but which will not be paid until March 15, 2021?
Chose the correct option
1) Net earnings would not be affected in February 2021.
2) Net earnings will decrease by $600 when the bill is paid in March 2021.
3) The $600 utilities expense would be recorded in February 2021.
4) Net earnings would increase by $600 in February 2021.
5) No expense will be recognized until the bill is paid in March 2021.
The $600 utility expense would be recorded in February 2021, affecting the statement of earnings.
The effect on February's statement of earnings of a $600 utility bill received on February 27, 2021, but not paid until March 15, 2021, would be as follows: The $600 utility expense would be recorded in February 2021. Even though the bill is not paid until March, the expense is recognized in the month in which it relates, following the accrual accounting principle. This ensures that expenses are matched with the revenues they help generate. Therefore, the $600 utility expense would be recognized as an expense on the February statement of earnings, even though the payment will occur in March.
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Describe two Constitutional issues that arose in the Early
American Republic (1796-1865).
During the Early American Republic (1796-1865), two significant constitutional issues arose that shaped the nation's development:
1. **States' Rights and Nullification**: One key constitutional issue during this period was the debate over states' rights and the concept of nullification. The question revolved around the extent of power and authority held by the federal government versus that of the individual states. The conflict came to a head with issues such as tariffs and the enforcement of federal laws, particularly the Fugitive Slave Act. Southern states, led by South Carolina, asserted the doctrine of nullification, which claimed that states had the right to reject or invalidate federal laws they deemed unconstitutional. This tension between federal authority and states' rights played a significant role in the lead-up to the Civil War.
2. **Slavery and the Expansion of Territories**: Another major constitutional issue was the ongoing debate over slavery and its expansion into new territories acquired by the United States. The Constitution itself contained ambiguous language regarding the institution of slavery, and its future implications became a point of contention. The Missouri Compromise of 1820 attempted to address this issue by balancing the number of slave and free states. However, as the country expanded westward, conflicts arose over whether newly admitted states would allow or prohibit slavery, leading to further sectional divisions. This issue ultimately culminated in the secession of Southern states and the Civil War, which would profoundly impact the interpretation and application of the Constitution.
These constitutional issues highlighted fundamental questions about the balance of power between the federal government and the states, as well as the moral and legal implications of slavery. They played a crucial role in shaping the Early American Republic and setting the stage for the significant conflicts and changes that would occur in the years to come.
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