Answer:
Cost Of Goods Sold $80.8 per unit.
Explanation:
This Cost of Goods sold is calculated assuming there were no opening and ending work in process or finished goods.
Units sold in August 8,300
Raw materials used = 4* 8300= 33200 pounds
Cost of Raw materials used = $2 * 33200= $ 66400
Direct Labor Hours Required = 2.6 * 8,300= 21580 hours
Direct Labor = $ 21 * 21580 hours= $ 453180
Manufacturing Overhead= $ 7 *21580 hours =$ 151060
Cost of Goods Sold =$ 66400+ $ 453180+$ 151060= $ 670640
Cost Of Goods Sold per unit = $ 670640/ 8300= $80.8
Abel, a Certified Fraud Examiner (CFE), conducted an interview of Baker, the controller of the ABC Company. Abel asked the following question: "Since you were here when the controls were developed, can you tell me how they came about?" This kind of question is called a ____________________.
Answer: informational question
Explanation:
The kind of question Abel asked baker is known as an informational question.
Informational questions are usually used by interviewers during an interview to get first hand informations from the individual being interviewed. This kind of information can be classified as a primary source as they are gotten directly from the person who has had the experience or involvement. Just like in the case of Baker he was asked the question because it’s believed he witnessed the development of the controls.
Davis Hardware Company uses a perpetual inventory system. How should Davis record the sale of inventory costing $620 for $960 on account?A. Inventory 620Cost of Goods Sold 620Sales Revenue 960Accounts Receivable 960B. Accounts Receivable 960Sales Revenue 960Cost of Goods Sold 620Inventory 620C. Inventory 620Gain 340Sales Revenue 960D. Accounts Receivable 960Sales Revenues 620Gain 340
Answer:
B. Accounts Receivable 960
Sales Revenue 960
Cost of Goods Sold 620
Inventory 620
Explanation:
Under perpetual inventory system the sale is recorded separately by sale value and the cost of the sold inventory is deducted from the inventory and added in the cost of goods sold.
Ne benefit of $340 (960-620) is automatically recorded and it will be measure at end of the period by formatting the income statement. It does not need to be recorded separately.
The average starting salary for this year's graduates at a large university (LU) is $20,000 with
a standard deviation of $8,000. Furthermore, it is known that the starting salaries are normally
distributed.
a. What is the probability that a randomly selected LU graduate will have a starting salary
of at least $30,400? (3 marks)
b. What is the probability that a randomly selected LU graduate will have a salary of
exactly $30,400? (2 marks)
c. Individuals with starting salaries of less than $15600 receive a low income tax break.
What percentage of the graduates will receive the tax break? (2 marks)
d. If 189 of the recent graduates have salaries of at least $32240, how many students
graduated this year from this university? (3 marks)
Answer:
a) The probability that a randomly selected LU graduate will have a starting salary of at least $30,400 = P(x ≥ 30400) = 0.0968
b) The probability that a randomly selected LU graduate will have a salary of exactly $30,400 = 0.000021421
c) Percentage of students that will receive a tax break = 29.12%
d) Total Number of graduates this year = 3,000
Explanation:
This is a normal distribution problem with
Mean = μ = $20,000
Standard deviation = σ = $8,000
a) The probability that a randomly selected LU graduate will have a starting salary of at least $30,400 = P(x ≥ 30400)
We first normalize or standardize $30,400
The standardized score for any value is the value minus the mean then divided by the standard deviation.
z = (x - μ)/σ = (30400 - 20000)/8000 = 1.30
The required probability
P(x ≥ 30400) = P(z ≥ 1.30)
We'll use data from the normal probability table for these probabilities
P(x ≥ 30400) = P(z ≥ 1.30) = 1 - P(z < 1.30)
= 1 - 0.90320
= 0.0968
b) The probability that a randomly selected LU graduate will have a salary of exactly $30,400
Here, we will use the normal distribution formula. The normal distribution formula is presented in the attached image
P(X = x) = f(x) = [1 ÷ σ√(2π)] × e^(-0.5z²)
x = $30,400
σ = $8,000
z = 1.30
P(X = 30400) = f(30400) = 0.000021421
c) Individuals with starting salaries of less than $15600 receive a low income tax break.
What percentage of the graduates will receive the tax break?
Required probability = P(x < 15600)
We first normalize or standardize $15,600
z = (x - μ)/σ = (15600 - 20000)/8000 = -0.55
The required probability
P(x < 15600) = P(z < -0.55)
We'll use data from the normal probability table for these probabilities
P(x < 15600) = P(z < -0.55)
= 0.29116 = 29.116% = 29.12%
d) If 189 of the recent graduates have salaries of at least $32240, how many students
graduated this year from this university?
We first find the percentage of LU graduates with salaries more than $32240
Required probability = P(x ≥ 32240)
We first normalize or standardize $32,240
z = (x - μ)/σ = (32240 - 20000)/8000 = 1.53
The required probability
P(x ≥ 32240) = P(z ≥ 1.53)
We'll use data from the normal probability table for these probabilities
P(x ≥ 32240) = P(z ≥ 1.53) = 1 - P(z < 1.53)
= 1 - 0.93699
= 0.06301 = 6.301%
So, 6.301% of the graduates this year = 189
Total Number of graduates this year = (189/0.06301) = 2999.5 = 3000 graduates this year.
Hope this Helps!!!
The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $ 59,000 $ 5,000 2 $ 9,000 $ 10,000 3 $ 20,000 4 $ 21,000 5 $ 24,000 6 $ 22,000 7 $ 20,000 8 $ 18,000 9 $ 17,000 10 $ 17,000 Required: 1. Determine the payback period of the investment. 2. Would the payback period be affected if the cash inflow in the last year were several times as large
Answer:
4.5 years
No
Explanation:
The Payback period calculates the amount of time it takes to recover the amounts invested in a project from its cumulative cash flows.
Total investments = $-59,000 - $9,000 = $-68,000
In the first year: $-68,000 + $5,000 = $-63,000 is recovered
In the 2nd year: $-63,000 + $ 10,000 = $-53,000 is recovered
In the 3rd year: $-53,000 + $ 20,000 = $-33,000 is recovered
In the 4th year $-33,000 + 21,000 = $-12,000
In the 5th year $-12000 + $24,000 = $12,000
The amount invested is recovered between the 4th and 5th year
4 years + $-12000 / $24,000 = 4.5years
The Payback period would not be affected if the cash inflow in the last year were several times as large because the cash flow would have been recovered by the 5tj year.
I hope my answer helps you
Answer:
Explanation:
Year Investment Cash Inflow Accumulate Cash Inflow
1 $59,000 $5,000 $5000
2 $9,000 $10,000 $15000
3 $20,000 $35000
4 $21,000 $56000
5 $24,000 $12000
6 $22,000 $34000
7 $20,000 $54000
8 $18,000 $72000
9 $17,000 $89000
10 $17,000 $106000
Pay back period ⇒ 4.5year ⇒ 68000/68000 + 12000/24000
⇒ 4.5years
2. Dexrease payback period
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $25, computed as follows: Direct materials $ 8 Direct labor 8 Variable manufacturing overhead 3 Fixed manufacturing overhead 6 Unit product cost $ 25 An outside supplier has offered to provide the annual requirement of 3,800 of the parts for only $14 each. The company estimates that 50% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:
Answer:
financial advantage : $30,400
Explanation:
Analysis of the Make or Buy Decision
Purchase Cost (3,800×$14) (53,200)
Savings :
Fixed manufacturing overhead($6×50%×3,800) 11,400
Direct Labor ($8×3,800) 30,400
Direct materials ($8×3,800) 30,400
Variable manufacturing overhead (3×3,800) 11,400
Financial Advantage 30,400
Therefore, the financial advantage of purchasing the parts from the outside supplier would be $30,400.
According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $25,000 was subject to state and federal unemployment taxes. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%. $ b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.
Answer:
a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.
$9,800b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.
Dr FICA Social Security expense 6,600Dr FICA Medicare expense 1,650Dr Federal unemployment tax expense 200Dr State unemployment tax expense 1,350 Cr FICA Social Security payable 6,600 Cr FICA Medicare payable 1,650 Cr Federal unemployment tax payable 200 Cr State unemployment tax payable 1,350Explanation:
payroll taxes should be:
social security $110,000 x 6% = $6,600
Medicare $110,000 x 1.5% = $1,650
federal unemployment $25,000 x 0.8% = $200
state unemployment $25,000 x 5.4% = $1,350
total = $9,800
Both employees and employers must pay equal amounts of FICA taxes (social security and medicare), but only employees pay unemployment taxes.
ABC Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. It uses weighted-average costing. "What is the direct materials cost per equivalent unit during June?"
Answer:
The completed question is
ABC Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Timekeeper Inc. uses weighted−average costing.
Data for the Assembly Department for June 2017 are:
Work in process, beginning inventory
380 units
Direct materials (100% complete)
Conversion costs (50% complete)
Units started during June
950 units
Work in process, ending inventory:
160 units
Direct materials (100% complete)
Conversion costs (75% complete)
Costs for June 2017:
Work in process, beginning inventory:
Direct materials
$91,500
Conversion costs
$136,000
Direct materials costs added during June
$601,000
Conversion costs added during June
Explanation:
Ending work in process= $87,380
Working
Reconciliation of Units
A Beginning WIP 380
B Introduced 970
C=A+B TOTAL 1,350
D Transferred out 1,180
E=C-D Ending WIP 170
.
Statement of Equivalent Units(Weighted average)
Material Conversion cost
Units Complete % Equivalent units Complete % Equivalent units
Transferred out 1,180 100% 1,180 100% 1,180
Ending WIP 170 100% 170 70% 119
Total 1,350 Total 1,350 Total 1,299
.
Cost per Equivalent Units (Weighted average)
COST Material Conversion cost TOTAL
Beginning WIP Inventory Cost $ 93,000 $ 137,000 $ 230,000
Cost incurred during period $ 600,500 $ 400,500 $ 1,001,000
Total Cost to be accounted for $ 693,500 $ 537,500 $ 1,231,000
Total Equivalent Units 1,350 1,299
Cost per Equivalent Units $ 513.70 $ 413.78 $ 927.48
.
Statement of cost (Weighted average)
Cost Equivalent Cost/unit Ending WIP Transferred
Units Cost Allocated Units Cost Allocated
Material $ 513.70 170 $ 87,329.63 1,180 $ 606,170.37
Conversion cost $ 413.78 119 $ 49,239.80 1,180 $ 488,260.20
TOTAL $ 1,231,000 TOTAL $ 136,569 TOTAL $ 1,094,431
Beerbo purchased a patent from Mitter Lite Co. for $1,000,000 on January 1, 2018. At that time, the patent's useful life was 10 years, expiring on December 31, 2027. In early 2020, Beerbo determined that the economic benefits of the patent would not last longer than 4 more years (6 years from the date of acquisition). Given the revised useful life, Beerbo expects the useful life of the patent to expire on December 31, [a1]. (Input year; e.g. "2020") At the end of 2019 / beginning of 2020, what was the value / net book value of the patent in Beerbo's books
Answer:
$800,000
Explanation:
As per the data given in the question,
Beerbo expects patent's useful life to expire on Dec-31 2023.
At the beginning of 2020 / end of 2019, the value of the patent in Beerbo's book = $1,000,000 - ($1,000,000 ÷ 10×2))
= $800,000
Amortix patent year = 4
Patent amortization expense at the end of 2020 = $800,000 ÷ 4
=$200,000
Brainliest for anyone if they get this CORRECT.
Answer:
20% is your best answer choice.
Explanation:
We are looking at the people who will be willing to buy sandwiches from $4.01 to $5, or the purple color.
The purple color takes up just a little less than a quarter of the circle (25%). The closest answer to 25% that is still less than 25% is 20%, so B. is your best answer.
~
Answer:
It would be 20%
Explanation:
1+2+7+4+6 = 20
20%
In its most recent financial statements, Del-Castillo Inc. reported $70 million of net income and $960 million of retained earnings. The previous retained earnings were $943 million. How much in dividends did the firm pay to shareholders during the year? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.
Answer:
$53,000,000
Explanation:
The amount of dividends paid by Del-Castillo Inc. can be ascertained using the retained earnings formula as follows:
retained earnings=net income+previous year retained earnings-dividends paid
retained earnings for current year is $960 million
net income is $70 million
previous year retained earnings were $943 million
dividends paid is unknown
dividends=net income+previous year retained earnings-current year retained earnings
dividends=$70 million+$943 million-$960 million
dividends=$53 million
Axelia Corporation has two divisions, Refining and Extraction. The company's primary product is Luboil Oil. Each division's costs are provided below: Extraction: Variable costs per barrel of oil $ 12 Fixed costs per barrel of oil $ 4 Refining: Variable costs per barrel of oil $ 27 Fixed costs per barrel of oil $ 30 The Refining Division has been operating at a capacity of 40 comma 200 barrels a day and usually purchases 26 comma 000 barrels of oil from the Extraction Division and 15 comma 900 barrels from other suppliers at $ 57 per barrel. What is the transfer price per barrel from the Extraction Division to the Refining Division, assuming the method used to place a value on each barrel of oil is 120% of full costs? A. $ 82.80 B. $ 19.20 C. $ 46.00 D. $ 16.00
Answer:
Transfer price = $19.2
Explanation:
The transfer price is the price at which goods are exchanged between the divisions of the same group.
The transfer price is stated to be 120% of the full cost
Full cost of extraction = Variable cost + fixed cost
= $ 12 + $ 4 = $16 per barrel
Transfer price = 120%× $16 = $19.2
Cully Furniture buys two products for resale: king beds (K) and queen beds (Q). Each king bed costs $500 and requires 100 cubic feet of storage space, and each queen bed costs $250 and requires 80 cubic feet of storage space. The company has $80,000 to invest in shelves this week, and the warehouse has 30,000 cubic feet available for storage. Profit for each king bed is $400 and for each queen bed is $200. 1). (10’) Please set up the LP model for the above situation.2). (20’) How many king beds (K) and how many queen bed (Q) should be purchased at optimal? 3). (10’) Whether we have slack or surplus variable applicable in this question? If we do, what is the value of slack (or/and surplus) variable? What is the meaning behind it?4). (10’) If the furniture company purchases no king beds and 300 queen beds, which resources will be completely used (at capacity)?
Answer:
1) 500K + 250Q ≤ 80,000
100K+80Q≤ 30,000
K≥0
Q≥0
P= 400K + 200Q
2) zero king beds and 320 queen beds
or zero queen beds and 160 king beds
3) surplus variable
surplus variable is storage space
values of surplus variable is 14,000 cubic feet if zero queen beds and 160 king beds
value of surplus variable is 4,400 cubic feet if zero king beds and 320 queen beds.
surplus is the extra amount available after all resources have been utilized to theri maximum.
4) none of the resources will be completely used. There will be surplus of both
Explanation:
1) Implicit variables: K≥0 ; Q ≥ 0
Explicit variables:
500K + 250Q ≤ 80,000-------------------------- from investment constraint
100K+80Q≤ 30,000 ---------------------- from storage space constraint
LP: P= 400K + 200Q
2) See the attachment for profit maximization graph
3) From graph in the attachment, it can be inferred that storage space is the surplus variable since graph of that equation lies completely outside of optimal area.
Also,
if K=160 and Q=0, the inequality of investment gives
500(160) + 250(0)= 80,000
if K=0 and Q=320, the inequality of investment gives
500(0)+ 250(320) =80,000
if K=0 and Q = 320, the inequality of space gives
100(0) + 80(320)= 25,600
surplus= 30,000- 25,600= 4,400
if K=160 and Q=0, the inequality of space gives
100(160) +250(0)= 16000
surplus= 30000-16000= 14000
4) K=0 and Q=300
investment inequality gives
500(0) + 250(300) ≤ 80,000
75,000≤ 80,000
space inequality gives
100(0) + 80(300) ≤ 30,000
24,000≤ 30,000
Both space and investment are in surplus
In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was $ 57,000 Accounts payable increased by 23,000 Accounts receivable decreased by 35,000 Inventories decreased by 10,000 Cash dividends paid were 19,000 Depreciation expense was 30,000 Net cash provided by operating activities was:
Answer:
Net Cash Flow from Operating Activities = $155,000
Explanation:
Cash flow from Operating activities:
Particular Amount
Income During the year $57,000
Adjustments :
Depreciation $30,000
Changes in Current assets and liabilities:
decreased in Accounts receivable $35,000
decreased in Inventory $10,000
increased in Accounts payable $23,000
Net Cash Flow from Operating Activities $155,000
Note: Dividend paid compute under financing activities.
Blue Sky Company’s 12/31/15 balance sheet reports assets of $6,000,000 and liabilities of $2,400,000. All of Blue Sky’s assets’ book values approximate their fair value, except for land, which has a fair value that is $360,000 greater than its book value. On 12/31/15, Horace Wimp Corporation paid $6,120,000 to acquire Blue Sky. What amount of goodwill should Horace Wimp record as a result of this purchase?
Answer:
$2,160,000
Explanation:
Goodwill is the amount of excess consideration payment over net asset value of acquiring company. It is the net value of consideration payment and Fair value of net assets.
To calculate goodwill first we need to determine fair value of assets and Liabilities.
Total Fair value of Assets = $6,000,000 + $360,000 = $6,360,000
Liabilities = $2,400,000
Net Asset value = Assets - Liability = $6,360,000 - $2,400,000 = $3,960,000
Goodwill = Consideration - Net Asset Value = $6,120,000 - $3,960,000 = $2,160,000
Indicate the effect—Understate, Overstate, No Effect—that each of the following errors has on 2020 net income and 2021 net income. 2020 2021 (a) Equipment (with a useful life of 5 years) was purchased and expensed in 2018. Select an option Select an option (b) Wages payable were not recorded at 12/31/20. Select an option Select an option (c) Equipment purchased in 2020 was expensed. Select an option Select an option (d) 2020 ending inventory was overstated. Select an option Select an option (e) Patent amortization was not recorded in 2021. Select an option Select an option
Answer: The answer is provided below
Explanation:
The net income is excess of revenues over expenses after the adjustment for depreciation expense and the income tax expense. Net income is also called the net profit.
(a) Equipment (with a useful life of 5 years) was purchased and expensed in 2018.
2020 : It will be overstated in the net income.
2021: It will be overstated in the net income.
b. Wages payable were not recorded at 12/31/20.
2020: It will be overstated in the net income.
2021: It will be understated in the net income.
c. Equipment purchased in 2020 was expensed.
2020: It will be understated in the net income.
2021: It will be overstated in the net income
d. 2020 ending inventory was overstated.
2020: It will be overstated in the net income.
2021: It will be understated in the net income.
e. Patent amortization was not recorded in 2021.
2020: It will be no effect in the net income.
2021: It will be overstated in the net income
Assume that you are a retail customer. Use the information below to answer the following question. Bid Ask Borrowing Lending S0($/€) $1.42 = €1.00 $1.45 = €1.00 i$ 4.25% APR 4% APR F360($/€) $1.48 = €1.00 $1.50 = €1.00 i€ 3.10% APR 3% APR If you borrowed $1,000,000 for one year, how much money would you owe at maturity? A. $1,450,352 B. $1,042,500 C. € 1,024,500 D. $1,525,400
Answer:
$1,042,500.
Explanation:
From the question above, we are given the following parameters; under the bid, we have $1.42 = €1.00 and $1.48 = €1.00; the borrowing and lending are $ 4.25% and 4% APR respectively for S0($/€).
Also, for F360($/€), the bid and ask values are: $1.48 = €1.00 and $1.50 = €1.00 respectively; the borrowing and lending values are 3.10% APR and 3% APR.
Therefore, the Borrowing rate is ($) 4.25% in $ . Thus, $1,000,000 for one year, one we owe
$1,000,000 × (1 + 0.0425) = $1,042,500 at maturity.
Vandy Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $ 31 $ 29 Accounts receivable 61 73 Inventory 59 61 Property, plant, and equipment 684 550 Less accumulated depreciation 349 319 Total assets $ 486 $ 394 Liabilities and stockholders' equity: Accounts payable $ 53 $ 54 Accrued liabilities 20 21 Income taxes payable 52 48 Bonds payable 203 190 Common stock 61 60 Retained earnings 97 21 Total liabilities and stockholders' equity $ 486 $ 394 Income Statement Sales $ 807 Cost of goods sold 492 Gross margin 315 Selling and administrative expense 182 Net operating income 133 Gain on sale of equipment 16 Income before taxes 149 Income taxes 45 Net income $ 104 The company sold equipment for $18 that was originally purchased for $14 and that had accumulated depreciation of $12. It paid a cash dividend of $28 during the year and did not retire any bonds payable or repurchase any of its own common stock. Required: Prepare a statement of cash flows for the year using the indirect method.
Answer:
See below the statement of Cash flow from Vandy Corporation.
Explanation:
Vandy Corporation
Statement of Cash Flow
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income $104
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation on Fixed Assets ($349-$319+$12) $42
Gain on Sale of Equipment ($16)
(Increase) Decrease in Current Assets:
Accounts Receivables $12
Inventory $2
Increase (Decrease) in Current Liabilities:
Accounts Payable ($1)
Accrued Liabilities ($1)
Income taxes payable $4
Net Cash provided by Operating Activities $146
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of Equipment $18
Purchase of Property, plant and equipment ($684-$550+$14) ($148)
Net Cash Flow from Investing Activities ($130)
CASH FLOWS FROM FINANCING ACTIVITIES:
Bonds Payable $13
Issuance of Common Stock $1
Payment of Dividends ($28)
Net Cash from Financing Activities ($14)
Net Increase (Decrease) in Cash $2
Opening Cash Balance $29
Ending Cash Balance $31
oel purchased 100 shares of stock for $31 per share. During the year, he received dividend checks amounting to $202. Joel recently sold the stock for $58 per share. Joel is in a 35% tax bracket. He would pay $945 in taxes if he held the stock for less than a year. How much would Joel save in taxes if he held the stock for more than a year, assuming he sold it for the same amount?
Answer:
Joel would save tax of $540 if the stock was held for more than a year
Explanation:
If the stock is held for more than one year and then sold then the gain on sale would be long term capital gain
The long term capital gain would be charged at preferential rate of 15%
Calculate long term capital gain tax on sale
Long term capital gain (Sale price - Purchase price)*No of shares
Long term capital gain (58-31)*100
Long term capital gain $2700
Tax on long term capital gain 2700*15%
Tax on long term capital gain $405
Savings in tax 945 - 405
Savings in tax $540
Thus, Joel would save tax of $540 if the stock was held for more than a year
what are some of googles resources
Answer:
lol just reminding yall
my teacher : Wikipedia is not a reliable resource
Explanation:
Scenario 28-1 Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment. Refer to Scenario 28-1. How many people are unemployed
Answer: 3 million.
Explanation:
Unemployment is defined as when a member of a Country's labor force is jobless but actively looking for work.
In the Scenario 28-1, the discouraged people are not counted as they are discouraged and not looking for work and 1 million other people being students and retirees amongst others are not looking for work either.
The unemployed section of Mankiwland is therefore the 3 million unemployed people.
Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all three of the other departments in proportion to the number of employees in each. The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space used by each. Listed below are the operating data for the current period: Service Depts. Production Depts. Payroll Maintenance Cutting Assembly Direct costs $ 20,400 $ 25,500 $ 76,500 $ 105,400 No. of personnel 15 15 45 Sq. ft. of space 10,000 15,000 The total cost of operating the Maintenance Department for the current period is:
Answer:
The total cost of operating the Maintenance Department for the current period is $29,580
Explanation:
In order to calculate The total cost of operating the Maintenance Department for the current period we would have to calculate first the Overhead allocated to Maintenance from Payroll department as follows:
Overhead allocated=Payroll overhead×(Maintenance payroll personnel/Total personnel)
Overhead allocated=$ 20,400×(15/15+15+45)
Overhead allocated=$4,080
Therefore, to calculate the The total cost of operating the Maintenance Department for the current period we would have to use the following formula:
Total cost of operating Maintenance Department=Overhead allocated+Direct overhead incurred
Total cost of operating Maintenance Department=$4,080+$25,500
Total cost of operating Maintenance Department=$29,580
The total cost of operating the Maintenance Department for the current period is $29,580
A company purchased a 3-acre tract of land for a building site for $480,000. The company demolished the old building at a cost of $25,000, but was able to sell scrap from the building for $2,800. The cost of title transfer was $1,550 and attorney fees for reviewing the contract was $760. Property taxes paid were $9,500, of which $900 covered the period after the purchase date. The capitalized cost of the land is: Multiple Choice $514,860. $514,610. $513,110. $379,610.
Answer:
$513,110
Explanation:
The computation of the cost of the land is shown below:
= Purchase tract of land + demolished cost of old building - scrap of the building + title transfer cost + attorney fees + property taxes - amount covered the period
= $480,000 + $25,000 - $2,800 + $1,550 + $760 + $9,500 - $900
= $513,110
We simply applied the above formula
An acquisition premium is the amount by which the price offered for an existing business exceeds the Select one: a. amount paid as a down payment to be held in escrow until closing. b. difference between the amount that was offered and the amount that is escrowed c. comparable value of similar companies within the same market. d. preacquisition market value of the target company e. fair market value of similar companies in the same geographic locale.
Answer:
d. pre-acquisition market value of the target company.
Explanation:
An acquisition premium is the amount by which the price offered for an existing business exceeds the pre-acquisition market value of the target company.
An acquisition premium gives the difference between the actual amount of money paid in acquiring a target firm and the estimated real value of obtaining the firm before the acquisition.
Acquisition premium are usually recorded on the balance sheet as "goodwill."
The standard direct labor cost per unit for a company was $24 (= $15 per hour × 1.6 hours per unit). During the period, actual direct labor costs amounted to $145,600, 9,500 labor-hours were worked, and 6,600 units were produced. Required: Compute the direct labor price and efficiency variances for the period. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)
Answer:
$3,135 unfavorable
$9,937.50 unfavorable
Explanation:
The formula and the computation of the direct labor price and efficiency variance is shown below:
Direct labor price variance
= (Standard rate - Actual rate) × Actual hours of production
= ($15- $145,600 ÷ 9,500 hours ) × 9,500 labor hour worked
= ($15 - $15.33) × 9,500 labor hour worked
= $3,135 unfavorable
Labor efficiency variance is
= (Actual production - standard production) × standard rate per unit
= (6,600 units - 9,500 hours ÷ 1.6 hours) × $15
= (6,600 units - 5,937.0) × $15
= $9,937.50 unfavorable
Since the actual hours is more than the standard one so it would lead to unfavorable variance
Selected data from the Florida Fruit Company are presented below: Total assets $1,500,000 Average total assets 1,850,000 Net income 175,000 Net sales 1,300,000 Average common stockholders' equity 1,000,000 Net cash provided by operating activities 275,000 Assume that no dividends were declared or paid during the period. Collapse question part (a) Calculate the profit margin. (Round answer to 1 decimal place, e.g. 15.2%.) Profit margin Enter percentages rounded to 1 decimal place %
Answer:
13.5%
Explanation:
Relevant data provided for computing the profit margin which is here below:-
Net Income = $175,000
Net Sales = $1,300,000
The computation of profit margin is shown below:-
Profit Margin = (Net Income ÷ Net Sales) × 100
= ($175,000 ÷ $1,300,000) × 100
= 13.5%
Therefore for computing the profit margin we simply applied the above formula.
Warren Buffet opposes stock splits to lower the share price because he believes:________.
a. lower share price will encourage other companies to try to take over the company from existing shareholders.
b. lower stock price encourages short term investing, whereas he is looking for long-term investors.
c. stock splits encourage long-term investing, which is detrimental to his firm's investment policy.
d. lower share price indicates poor growth prospects..
Answer:. b. lower stock price encourages short term investing, whereas he is looking for long-term investors.
Explanation:
Warren Buffet has stated that he does not want to split Berkshire Hathaway's stock because he believes that it would attract short term investors whereas he is looking for long term investors. He believes that a stock being split makes it susceptible to investors who just want to buy it for the meantime, wait for it to appreciate a bit and then sell. He however prefers Companies with a long term potential so he prefers people investing for the long run.
Blue Space Corporation launches exploratory space flights to the moon and Mars. The purpose is to discover and retrieve minerals and other resources. Under U.S. Law, Blue Space a. must share with all interested parties what it retrieves in space. b. cannot profit from resources retrieved in space. c. cannot legally retrieve resources in space. d. owns what it retrieves in space.
Answer:
D. Owns what it retrieves in space.
Explanation:
This explains the right of an american that entails that anybody that retrieves minerals or other useful resources own or has control over what it retrieves in space.
Americans however should have the right to engage in commercial exploration, recovery, and use of resources in outer space, consistent with applicable law. Outer space is a legally and physically unique domain of human activity, and the United States does not view it as a global commons. Accordingly, it shall be the policy of the United States to encourage international support for the public and private recovery and use of resources in outer space, consistent with applicable law.
Question 2--/20 View Policies Current Attempt in Progress Stellar Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested benefit obligation $1,610 $1,910 Accumulated benefit obligation 1,910 2,590 Projected benefit obligation 2,400 3,120 Plan assets (fair value) 1,680 2,430 Settlement rate and expected rate of return 10 % Pension asset/liability 720 ? Service cost for the year 2020 400 Contributions (funding in 2020) 660 Benefits paid in 202- 180 (a) Compute the actual return on the plan assets in 2020.
Answer:
$270
Explanation:
The computation of the actual return on plant asset is shown below:
Fair value of the Plan assets at Ending of the year $2,430
Less: Fair value of the Plan assets at beginning of the year $1,680
Change in Plan Assets $750
Less Contribution made -$660
Add: Benefits Paid $180
Actual Return $270
We simply applied the above equation to determine the actual return on the plant assets
Valley Designs issued a 120-day, 6% note for $80,000 dated April 20 to Bork Furniture Company on account. Required: A. Determine the due date of the note. B. Determine the maturity value of the note. Assume a 360-day year. C. Journalize the entries to record the following: (1) receipt of the note by Bork Furniture and (2) receipt of payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.
Answer and Explanation:
a. The due date of the note is
Take 120 days from April 20 i.e
10 days of April + 31 days in May + 30 days in June + 31 days in July + 18 days in August
So, the due date is August 18
b. Now the maturity value of the note is
= Principal value of the note + interest
= $80,000 + $80,000 × 6% × 120 days ÷ 360 days
= $80,000 + $1,600
= $81,600
c-1 Now the journal entry is
Note receivable $80,000
To Account receivable $80,000
(Being the receipt of the note is recorded)
For recording this we debited the note receivable as it increase the assets and credited the account receivable as it decreased the assets
c-2 Cash Dr $81,600
To Note receivable $80,000
To Interest revenue $1,600
(Being the receipt of the payment of the note is recorded)\
For recording this we debited the cash as it increased the assets and credited the note receivable as it decreased the assets and increased the revenue so the interest revenue is credited
Exercise 24-5 Payback period computation; even cash flows LO P1 Compute the payback period for each of these two separate investments: A new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 per year after straight-line depreciation.
Answer and Explanation:
The computation of the payback period is shown below:
1. Payback period = Initial investment ÷ Net cash flow
where,
Initial investment is $520,000
Net cash flow is = incremental after-tax income + depreciation expense
= $150,000 + $85,000
= $235,000
The depreciation expense is
= ($520,000 - $10,000) ÷ (6 years)
= $85,000
Now the payback period is
= $520,000 ÷ $235,000
= 2.21 years
2. Payback period = Initial investment ÷ Net cash flow
where,
Initial investment is $380,000
Net cash flow is = incremental after-tax income + depreciation expense
= $60,000 + $45,000
= $105,000
The depreciation expense is
= ($380,000 - $20,000) ÷ (8 years)
= $45,000
Now the payback period is
= $380,000 ÷ $105,000
= 3.62 years
