Answer:
Menu Costs
Explanation:
From the question we are informed about Gilberto who manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new prices. His employees regularly deal with customer annoyance over the frequent price changes. This case is an example of the of Menu Costs inflation.
In domain of economics, menu cost can be regarded as the cost to a firm that results due to changing its prices. When there is high inflation, firms needs to often make a change to their prices ,so they can keep up with economy-wide changes. The name arised out of the cost of a printing new menus of a restaurants , but it is used by economists when they are generally referring to the costs of changing nominal prices
.
Please identify what type of error the following sentence includes: While searching for employment, I travelled to Shanghai, China; Los Angeles, California, and London, England.
A. Dangling modifier.
B. Capitalization.
C. Semicolon.
D. Redundancy.
E. Parallel structure.
Answer: C. Semicolon
Explanation:
The semicolon is used to link two independent clauses in a sentence. It can also be used for the introduction of a new sentence with words like therefore, however, etc.
In this question, the semicolon after China isn't appropriate, a comma will have been better in this regard. Therefore, the correct option is C.
What does the president consider to be the most important criterion when making political appointments to the bureaucracy?
Answer:
loyalty to the President
Explanation:
The President of the United States makes all the important political appointment of the bureaucracy to the Government offices. He does that appointing his favorite officials to the offices of the United States different federal agencies. One of the most important criteria that the President considers while appointing the bureaucracy officials is "loyalty to the President."
The President seeks those people who are loyal to him and follows every orders and advices of the President. The President keeps in mind that no one disobeys him and follows his order without any hesitations.
Thus the answer is "loyalty to the President."
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
E-Eyes Bank just issued some new preferred stock. The issue will pay a $9 annual dividend in perpetuity, beginning 6 years from now. If the market requires a 6 percent return on this investment, how much does a share of preferred stock cost today
Answer:
Explanation:
Calculation to determine future sales discounts
Using this formula
Value of Preferred Stock in year 5 =Annual Dividend/Required Rate
Let Plug in the formula
Value of Preferred Stock today =(6/6%)/(1+6%)^5
Value of Preferred Stock today =100/(1+6%)^5
=124.58
The expenditure and income approaches to calculating GDP arrive at the same final number, but they calculate that number in different ways. To illustrate, consider the possible effects of the following transactions on GDP:
1. Daesun pays Awesome Foods Market $1,100 to cater his daughter's engagement party. He's attracted by Awesome Foods Market's guarantee that he'll be happy with the catering, or he'll get his money back.
2. Awesome Foods Market pays JoAnn's Catering $950 to cater the party.
3. JoAnn's Catering buys plasticware worth $200 from Kostko.
Required:
Compute contributions to GDP, using the expenditure approach.
Answer:
Only the amount spent by Manuel would be in included in the calculation of GDP
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Consumption spending includes spending by households on goods and services. Consumption spending includes :
spending on durables - e.g. laptop
spending on nondurables - e.g. clothes, food
spending on services - e.g. payment of hospital bill
the purchase of a textbook by a student is an example of consumption spending on durable goods
Investment - It includes purchases of goods and services made by businesses in the production of goods and services
the airplane purchased by the airline would be used to provide services for airline customers. Also, the packing boxes bought by Amazon would be used in delivering goods to customers
Government spending - It includes government consumption expenditure and gross investment. The purchase of a new limousine for the president is an example of consumption expenditure
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
During the year, John (a self-employed management consultant) went from Columbus,OH to Seattle, WA on business. Preceding a five-day business meeting, he spent four days vacationing at the beach. Excluding the vacation costs, his expenses for the trip are:
Airfare $3,200
Lodging 1,100
Meals 1,000
Entertainment 600
Presuming no re-imbursement, deductible expenses are:_____.
a. $3,200.
b. $3,900.
c. $4,500.
d. $5,500.
e. none of these.
Answer:
the deductible expense is $4,800
Explanation:
The computation of the deductible expense is given below:
= Airfare + lodging + 50% of meals
= $3,200 + $1,100 + 50% of $1,000
= $3,200 + $1,100 + $500
= $4,800
Hence, the deductible expense is $4,800
This is an answer but the same is not provided in the given options
so the same is relevant and considered too
Loco Pony Adventures rents clowns and ponies for children’s birthday parties. If the annual total cost of furnishing entertainment is given by TC = 0.5 Q 2 + 25 Q + 1,000, the average variable cost of catering to 30 birthday parties is:
Answer and Explanation:
The computation is shown below:
As we know that the variable cost is the cost that changed with the production
So the variable cost arise from TC should be
VC=0.5Q^2+25Q
= 0.5 × (30)^2+25 × 30
= 1200
And,
AVC is
= VC ÷ Q
= 1200 ÷ 30
= 40
At February 1, 2022, the balance in Wildhorse Co. supplies account was $3780. During February Wildhorse purchased supplies of $3240 and used supplies of $4320. At the end of February, the balance in the Supplies account should be
Answer: $2,700
Explanation:
The balance in Supplies account at the end of February can be calculated using the formula:
= Beginning balance + Supplies purchased in the month - Supplies used in the month
= 3,780 + 3,240 - 4,320
= $2,700
Your client is employed by a large multinational corporation headquarteredin your city. She worked for the company in her native country for five years before being assigned to a U.S.-based position last year. she knows that her employer arranged for a visa for her, but he is unsure about what type of visa and doesn't have any of her paperwork. Your client is likely:__________A) an undocumented immigrantB) a foreign nationalC) a naturalized citizenD) a lawful permanent resident
Answer:
The correct options A) an undocumented immigrant.
Explanation:
Undocumented immigrants are foreign nationals who are in the United States without legal documentation.
These immigrants either entered the US without being screened as required by immigration processes, or they entered the country on a temporary visa and stayed over the visa's expiration date, rendering the visa invalid.
This implies that your client is likely an undocumented immigrant. Therefore, the correct options A) an undocumented immigrant.
Please write out, step-by-step, how you obtained the correct answer for this math problem.
Jose and Zola want to purchase their first home. Jose makes $23.50 an hour and works 40 hours per week. Zola makes $21.50 an hour and works 40 hours of regular time and 5 hours of overtime a week. They have two car payments totaling $500 a month and one credit card with a minimum payment of $50 a month. What is their combined gross monthly income?
(HINT: Remember to assume that overtime is always time and a half unless otherwise specified!!)
Answer:
The correct answer is "$7,630".
Explanation:
Assuming there are four weeks in a month, then
Joe's income will be:
= [tex]23.50\times 40\times 4[/tex]
= [tex]3,760[/tex] ($)
Zola's income will be:
= [tex]21.50\times (40+5)\times 4[/tex]
= [tex]21.50\times 45\times 4[/tex]
= [tex]3,870[/tex] ($)
hence,
The combined gross monthly income will be:
= [tex]Jose's \ income+Zola's \ income[/tex]
= [tex]3,760+3,870[/tex]
= [tex]7,630[/tex] ($)
Answer:
$8,498.75
Explanation:
Jose = ($23.5x40x52)/12=$4073.33
Zola = ($21.5x40x52/12)+($21.5x1.5(overtime pay)x5x52)/12= $3726.67+$698.75=$4425.41
Combined = $4073.33+ $4425.42= $8498.75
g if you deposit $2,000 into an account and it earns 6% interest, how much will you have in 11 years
Answer:
Amount earned = $3320
Explanation:
Given the following data;
Principal, P = $2,000
Interest rate, R = 6%
Time, T = 11 years
To find the simple interest;
S.I = PRT/100
S.I = (2000*6*11)/100
S.I = 20*6*11
S.I = $1320
Amount earned = Principal + S.I
Amount earned = 2000 + 1320
Amount earned = $3320
On the basis of this information, what were total maintenance costs when the company experienced 23,000 machine hours of activity, total maintenance costs averaged $34.30 per hour. When activity jumped to 27,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $27.30.
a. On the basis of this information, the variable cost per machine hour was:___________
b. On the basis of this information, the fixed cost was:___________-
c. On the basis of this information, what were total maintenance costs when the company experienced 25,000 machine hours?
Answer:
Results are below.
Explanation:
First, we need to calculate the total cost for each activity level:
High activity level= 27,000*27.3= $737,100
Low activity level= 23,000*34.3= $788,900
Now, using the high-low method, we can determine the variable and fixed costs:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (788,900 - 737,100) / (27,000 - 23,000)
Variable cost per unit= $12.95 per machine-hour
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 788,900 - (12.95*27,000)
Fixed costs= $439,250
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 737,100 - (12.95*23,000)
Fixed costs= $439,250
Finally, for 25,000 hours:
Total cost= 439,250 + 12.95*2,5000
Total cost= $763,000
Following the law is:______. a. unimportant as a standard of business behavior b. the maximum standard of behavior we expect from business c. an unrealistic expectation for business behavior d. the minimum standard of behavior we expect from business
Answer:
b. the maximum standard of behavior we expect from business
Explanation:
In the laws of business, it is expected according to the law that as much possible, we accept the maximum standard of behavior from any businesses. While doing a business, we all have to follow the business ethics and always follows the laws of the businesses. The behavior of business should be of maximum standard and should comply with the rules and ethics with the related businesses.
Thus the correct option is (b).
Explain the nature of the exchange-rate risk for each of the following, from the perspective of the U.S. firm or person. In your answer, include whether each is a long or short position in foreign currency.
a. A small U.S. firm sold experimental computer components to a Japanese firm, and it will receive payment of 1 million yen in 60 days.
b. An American college student receives a birthday gift of Japanese government bonds worth 10 million yen, and the bonds mature in 60 days.
c. A U.S. firm must repay a yen loan, principal plus interest totaling 100 million yen, coming due in 60 days.
Answer:
a. U.S. firm has long position in yen since it has asset in yen.
b. An American student has long position in yen since it has asset of bonds in yen.
c. U.S. firm has liability position in yen, therefore it is short position.
Explanation:
a. The payment is to be received in next 60 days which means there is a risk of yen depreciation and then company will receive lower dollars. The company should hedge its exchange rate risk by selling yen now and buying dollars later.
b. The gift received in the form of bonds will mature in 60 days. There is uncertainty in dollar rate, if dollar appreciates against yen then student will receive less yen.
c. The dollar rate is unpredictable for yen in next 60 days. If yen appreciate then dollar will depreciate against yen and therefore amount of loan repayment will increase.
The risk that cannot be diversified away is Group of answer choices unique risk and non-systematic risk. market and non-systematic risk. unique and idiosyncratic risk. systematic risk. firm-specific risk. g
Answer:
firm-specific risk.
Explanation:
Firm-specific risk can be regarded as unsystematic risk tht is associated with a specific investment in a particular firm, and as regards to theory of finance this is completely diversifiable.
Under this risk, It is possible for an investor to lower their risk through increament of the number of investments that they are having in their portfolio. As regards investor,
specific risk can be regarded as hazard which applies to a specific company.
It should be noted that The risk that cannot be diversified away is firm-specific risk.
The price elasticity of demand for a good is likely to be elastic __________.
A. the budget share spent on the good.
B. the number of close substitutes for the good.
C. the available time during which consumers can adjust.
D. all of the above.
Answer:
The price elasticity of demand for a good is likely to be elastic :
A. the greater the proportion of budget share spent on the good.
B. the greater the number of close substitutes for the good.
C. the longer the available time during which consumers can adjust.
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
Price is more elastic in the long run than in the short run because consumers have more time to search for suitable alternatives
The more close substitutes a good has, the more elastic its demand. This is because if price is increased, consumers can easily shift to the consumption of an alternative product
the greater the proportion of budget share spent on the good, the more elastic the demand for the good
Worldwide Manufacturing produces a unique valve and has the capacity to produce 50,000 valves annually. Currently Worldwide produces 40,000 valves and is thinking about increasing production to 45,000 valves next year. What is the most likely behavior of total manufacturing costs and unit manufacturing costs, given this change
Answer:
c) Total manufacturing costs will increase and unit manufacturing costs will also decrease.
Explanation:
Based on the information given the most likely behavior of total manufacturing costs and unit manufacturing costs, given this change is that TOTAL MANUFACTURING COSTS WILL INCREASE AND UNIT MANUFACTURING COSTS WILL DECREASE since Manufacturing cost consists of DIRECT MATERIALS, DIRECT LABOR, VARIABLE MANUFACTURING OVERHEAD and FIXED MANUFACTURING OVERHEAD in which direct materials, direct labor and variable manufacturing overhead are Variable expense which means that if the production increases from $40,000 to $45,000 the total manufacturing cost will as well INCREASE but due to the FIXED MANUFACTURING COST involved , the unit manufacturing cost will have to decrease.
Sunland Clothing Store had a balance in the Accounts Receivable account of $112000 at the beginning of the year and a balance of $88000 at the end of the year. Net credit sales during the year amounted to $3650000. The average collection period of the receivables in terms of days was
Answer:
10 days
Explanation:
Day's sales in receivables = (365 days × Average receivables) / Net sales
Day's sales in receivables = (365 days × $100,000) / $3,650,000
Day's sales in receivables = 10 days
• Note
Average receivables = (Beginning receivables + Ending receivables) / 2
= ($112,000 + $88,000) / 2
= $100,000
Therefore, the average collection period of the receivables in terms of days was 10days
Which of the following databases provides end-of-day daily prices and historical prices for U.S. Corporate, Treasury and Agency bonds and non-U.S. Corporate and Government bonds and covers over 80,000 issues daily?
A. FactSet Prices & Derived Analytics
B. SIX Telekurs Prices & Derived Analytics
C. TRACE Prices & Derived Analytics
Answer:
a. FactSet Prices & Derived Analytics
Explanation:
the answer to this question is option A. Factset prices and analytics gives financial data as well as analytic data to the global investment world. this company gets data directly from suppliers, these suppliers are usually third party data suppliers, other sources are form news channels, fro exchangers. it also provides analytic services to companies that want to track their portfolios.
The income expenditure model predicts that if the marginal propensity to consume is 0.75 and the federal government increases spending by $100 billion, real GDP will increase by:_______
a) $100 billion.
b) $750 billion.
c) $400 billion.
d) $300 billion.
Answer:
Option c ($400 billion) is the correct answer.
Explanation:
According to the question,
Government expenditure,
G = 100
Marginal propensity to consume,
c = 0.75
Now,
The autonomous spending multiplier will be:
⇒ [tex]\Delta Y = \frac{1}{1-c}\times \Delta G[/tex]
By substituting the values, we get
[tex]=\frac{1}{1-0.75}\times 100[/tex]
[tex]=4\times 100[/tex]
[tex]=400[/tex]
The Cherrywood Fine Furniture Company finds itself with excess capacity in its plant and equipment for furniture manufacturing. This excess capacity will be useful in Group of answer choices
Answer: related diversification project
Explanation:
Related diversification simply means the scenario whereby a firm moves into a new industry which possesses vital similarities with the existing industry of the firm.
In this case, since Cherrywood Fine Furniture Company has excess capacity in its plant and equipment for furniture manufacturing, then this can be used for related diversification project.
Over the last year, Calzone Corporation paid a quarterly dividend of $0.10 in each of the four quarters. The current stock price of Calzone Corporation is $39.78. What is the dividend yield for Calzone stock
Answer: 1.0%
Explanation:
Dividend yield = Annual dividend / Current stock price
Annual dividend = (0.10 * 4 quarters)
= $0.40
Dividend yield = 0.40 / 39.78
= 1.0%
Darla posts notices in her neighborhood promising to pay $1,000 for the return of her missing Snowshoe Siamese cat. Two days later, Noelle finds the missing cat and returns it to Darla. What type of contract is this? a) A bilateral contract b) A subrogation contract c) An executory contract d) A unilateral contract e) This is not a valid contract
Answer: d) A unilateral contract
Explanation:
In a unilateral contract there is only one party to the contract that has to abide by the obligations specified and that is the offeror. The offeror offers to pay a certain amount of money if a certain thing is done. They will then pay the person that fulfills this service.
In this case, Darla is the offeror and she offers to pay anyone who can find her cat. When Noelle fulfills this service, Darla will then pay her what was promised. This is therefore a unilateral contract.
Dylan invested $4200 into a continuously compounded account with an interest rate of 2.4%. How much will she have in the account after 11 years
Answer:
$47,322.21
Explanation:
the formula for calculating future value when there is continuous compounding is : A x e^r x N
A= amount
e = 2.7182818
N = number of years
r = interest rate
42,000xe^0.024 x 11 = $47,322.21
Answer:
A≈5469
Explanation:
Use the formula for calculating compound interest A=P0ert where P0=4200, r=0.024, and t=11. Substitute the values into the formula and simplify.
A=4200e0.024⋅11
A=4200e0.264
A=4200(1.302)
A=5468.94
After 11 years, the balance in the account is A≈5469, rounded to the nearest dollar.
Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $106 and of each door is $256. The variable cost of a window is $65.50 and of a door is $178.00. Fixed costs are $624,000.
Required:
a. Determine the selling price per composite unit.
b. Determine the variable costs per composite unit.
c. Determine the break-even point in composite units.
d. Determine the number of units of each product that will be sold at the break-even point.
Answer:
Results are below.
Explanation:
First, we need to calculate the sales proportion:
Windows= 8/10= 0.8
Doors= 2/10= 0.2
Now, the selling and unitary variable cost per composite unit:
Selling price= 106*0.8 + 256*0.2= $136
Unitary varaible price= 65.5*0.8 + 178*0.2= $88
The break-even point:
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 624,000 / (136 - 88)
Break-even point (units)= 13,000
Finally, the number of units for each product:
Windows= 13,000*0.8= 10,400
Doors= 13,000*0.2= 2,600
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
On January 1, Year 1, Jing Company purchased office equipment that cost $15,200 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $1,300. The equipment had a five-year useful life and a $5,700 expected salvage value. Assume that Jing Company earned $17,400 cash revenue and incurred $11,000 in cash expenses in Year 3. The company uses the straight-line method. The office equipment was sold on December 31, Year 3 for $8,900. What is the company's net income (loss) for Year 3?
a. $4,752 and $12,672
b. $2,200 and $12,760
c. $2,851 and $16,151
d. $0 and $13,300
Answer:
$3,120
Explanation:
First and foremost, annual depreciation expense is determined using the below straight-line method formula:
annual depreciation=total cost of equipment-salvage value/useful life
total cost of equipment=purchase price+ transportation cost
total cost of equipment=$15,200+$1,300
total cost of equipment=$16,500
salvage value=$5,700
useful life =5 years
annual depreciation=($16,500-$5,700)/5
annual depreciation=$2,160
net income=cash revenue-cash expenses-annual depreciation+profit/(loss) on disposal
profit or(loss)=sales proceeds-book value
book value=cost-accumulated depreciation for 3 years
book value=$16,500-($2160*3)=$10,020
profit/(loss) on disposal=$8,900-$10,020=-$1,120
net income= $17,400-$11,000-$2,160-$1,120
net income=$3,120
How do you feel when you buy a product that is overpriced?
Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 85,000 Total fixed manufacturing overhead cost $ 306,000 Variable manufacturing overhead per direct labor-hour $ 6.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 25 Total direct labor-hours 100 Direct materials $ 700 Direct labor cost $ 8,500 The total job cost for Job P951 is closest to:
Answer:
Total job cost $10,160
Explanation:
The computation of the total job cost is shown below:
Predetermined fixed overhead rate
= total fixed manufacturing overhead expense ÷ total direct labor hours
= $306,000 ÷ $85000
= $3.60 Per hour
Now
Particulars Cost
direct materials $700
Direct labor cost $8500
Fixed manufacturing overhead cost (100 × 3.60) $360
Variable manufacturing overhead cost (100 × 6.00) $600
Total job cost $10,160
The June 1 work in process inventory consisted of 4,100 units with $14,700 in materials cost and $12,300 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect to conversion. During June, 36,600 units were started into production. The June 30 work in process inventory consisted of 9,400 units that were 100% complete with respect to materials and 50% complete with respect to conversion. 3. How many units were completed and transferred to finished goods during the period
Answer:
Units completed and transferred to finished goods during the period are:
= 31,300 units.
Explanation:
a) Data and Calculations:
Units Materials Conversion
Work in process inventory, June 1 4,100 $14,700 $12,300
Degree of completion of WIP 100% 60%
Units started into production, June 36,600
Total units available in production 40,700
Work in process inventory, June 30 9,400 100% 50%
Units completed and transferred 31,300 (40,700 - 9,400)
