Answer:
China
Explanation:
Calculation to determine which location would be most economical to produce the item
Using this formula
LaborCost per Unit=Labor Cost per Day/Production(units per day)
Let plug in the formula
Myanmar = 6 Laborers x $3/day = $18/day
Myanmar=$18/day/ 40 units
Myanmar= $0.45/unit
China = 10 Laborers x $2/day = $20/day
China= $20/day/ 45 units
China= $0.444/unit
Montana = 2 Laborers x $60/day = $120/day
Montana= $120/day/100 units
Montana = $1.20/unit
Therefore the location that would be most economical to produce the item is CHINA
The following information is available for the Johnson Corporation:
Beginning inventory $27,000
Inventory purchases (on account) 157,000
Merchandise purchases (on account) 157,000
Freight charges on purchases (paid in cash) 12,000
Merchandise returned to supplier (for credit) 14,000
Ending inventory 32,000
Sales (on account) 252,000
Cost of merchandise sold 150,000
Required:
Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.
Answer:
Perpetual Inventory System:
1) Dr Inventory 157,000
Cr Accounts Payable 157,000
2) Dr Inventory 12,000
Cr Cash 12,000
3)Dr Accounts Payable 14,000
Cr Inventory 14,000
4) Dr Accounts Receivable 252,000
Cr Sales Revenue 252,000
5) Dr Cost of Goods Sold 150,000
Cr Inventory 150,000
6) No entry
Periodic Inventory System:
1)Dr Purchases 157,000
Cr Accounts Payable 157,000
2) Dr Freight - in 12,000
Cr Cash 12,000
3) Dr Accounts Payable 14,000
Cr Purchase Returns 14,000
4) Dr Accounts Receivable 252,000
Cr Sales Revenue 252,000
5) No entry
6) Dr Cost of Goods Sold 150,000
Dr Ending Inventory 32,000
Dr Purchase Returns 14,000
Cr Beginning Inventory $27,000
Cr Purchases 157,000
Cr Freight - in $12,000
Explanation:
Preparation of the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.
PERPETUAL INVENTORY SYSTEM:
1) Dr Inventory 157,000
Cr Accounts Payable 157,000
(To record the purchase of inventory on account)
2) Dr Inventory 12,000
Cr Cash 12,000
(To record the payment of freight charges by cash)
3)Dr Accounts Payable 14,000
Cr Inventory 14,000
(To record the return of inventory purchased on account)
4) Dr Accounts Receivable 252,000
Cr Sales Revenue 252,000
(To record the sales made on account)
5) Dr Cost of Goods Sold 150,000
Cr Inventory 150,000
(To record the cost of goods sold)
6) No entry
PERIODIC INVENTORY SYSTEM:
1)Dr Purchases 157,000
Cr Accounts Payable 157,000
(To record the purchase of inventory on account)
2) Dr Freight - in 12,000
Cr Cash 12,000
(To record the payment of freight charges by cash)
3) Dr Accounts Payable 14,000
Cr Purchase Returns 14,000
(To record the return of inventory purchased on account)
4) Dr Accounts Receivable 252,000
Cr Sales Revenue 252,000
(To record the sales made on account)
5) No entry
6) Dr Cost of Goods Sold 150,000
Dr Ending Inventory 32,000
Dr Purchase Returns 14,000
Cr Beginning Inventory $27,000
Cr Purchases 157,000
Cr Freight - in $12,000
(To record the adjusting entry for inventory)
When the Jones were shopping for their present home, the asking price from the previous owner was $375,000.00. The Jones had decided they would pay no more than $365,000.00 for the house. After negotiations, the Jones actually purchased the house for $350,000.00. They, therefore, enjoyed a consumer surplus of
Answer:
$15,000
Explanation:
Calculation to determine the consumer surplus
Consumer surplus=$365,000.00-$350,000.00
Consumer surplus=$15,000
They, therefore, enjoyed a consumer surplus of $15,000
a reward or benefit meant to encourage specific economic behavior is a
Answer:
incentive
Explanation:
A truck acquired at a cost of $120,000 has an estimated residual value of $5,300, has an estimated useful life of 37,000 miles, and was driven 3,300 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places.
a. The depreciable cost $
b. The depreciation rate $ per mile
c. The units-of-activity depreciation for the year $
Answer:
Cost of Truck = $120,000
Residual Value = $5,300
Useful Life = 37,000 miles
a. Depreciable Cost = Cost of Truck - Residual Value
Depreciable Cost = $120,000 - $5,300
Depreciable Cost = $114,700
b. Depreciation Rate = Depreciable Cost / Useful Life
Depreciation Rate = $114,700/37,000 miles
Depreciation Rate = $3.1 per mile
c. Number of miles driven during the year = 3,300
Depreciation for the Year = Depreciation Rate * Number of miles driven during the year
Depreciation for the Year = $3.1 per mile * 3,300
Depreciation for the Year = $10,230
• A bond’s is generally $1,000 and represents the amount borrowed from the bond’s first purchaser. • A bond issuer is said to be in if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue’s restrictive covenants. • The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds is called . • A bond’s allows a bondholder or preferred stockholder to convert their bond or preferred share, respectively, into a specified number or value of common shares.
Answer: 1. Face value
2. Default
3. Indenture
4. convertibility provision
Explanation:
• A bond’s (face value) is generally $1,000 and represents the amount borrowed from the bond’s first purchaser.
• A bond issuer is said to be in (default) if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue’s restrictive covenants.
• The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds is called (indenture)
• A bond’s (convertibility provision) allows a bondholder or preferred stockholder to convert their bond or preferred share, respectively, into a specified number or value of common shares.
Fones Inc. and Speed Dial Corp. are two competitors in the mobile phone market. The cost incurred by each company to manufacture smartphones is $200 per unit. Although both the companies sell their smartphones at the same price, Speed Dial Corp. has a larger market share in the smartphone industry. What does this imply
Answer: C. Speed Dial Corp has been able to offer more perceived value than Fones Inc.
Explanation:
Both companies incur the same costs to produce the phone and also sell at the same price. This means that they should be selling the same number of phones in theory. This is not the case however as Speed Dial Corp is selling more.
The reason Speed Dial must be selling more phones is that they sell a better phone for the same price. In offering more value to the customer for the same price, the customers are buying more from Speed Dial than from Fones because they are getting a better deal for the same price which means that Speed Dial's phone is undervalued.
A flexible expense and a periodic expense are basically the same thing. True or false
the answer of the question is true
Current interest rates are 8%. You want to buy a long-term bond with a face value of $1000 that pays a coupon rate of 10%. Which of the following prices is feasible?
a. $888.88
b. $1,000.00
c. $1,111.11
d. Not enough information to answer.
e. None of the above is feasible.
Answer: c. $1,111.11
Explanation:
When a bond's coupon rate is higher than the prevailing interest rate, the bond will be more sought after because it is paying more than the market is paying. As a result, the price of the bond will be higher than its par value to reflect the increased demand for it.
In other words, when a bond coupon rate is higher than the interest rate, the price will be higher than par. This is the case here so the bond will be selling at a higher price than $1,000 and the only option higher than $1,000 is option c at $1,111.11.
Which strategy to minimize political vulnerability and risk has the advantage of engaging the power of several investors and banks in the host country whenever any kind of government takeover or harassment is threatened?
Answer:
expanding the investment base
Explanation:
In the case of expanding the Investment base it includes the different investors and the bank for the financing purpose with respect to the investment made in the host country. This would create an advantage for engaging the bank power at the time of takeover done by the government or harassment should be threatened
Assume BarnesandNoble.com has 289 business math texts in inventory. During one month, the online bookstore ordered and received 1,855 texts; it also sold 1,222 on the web. What is the bookstore’s inventory at the end of the month? If each text costs $59, what is the end-of-month inventory cost?
Answer:
I don't wanna assume I'm just answering for them points
Gamble Corporation had beginning inventory $100,000, cost of goods purchased $700,000, and ending inventory $140,000. What was Gamble's inventory turnover? Group of answer choices 5 times. 5.5 times. 5.83 times. 6.6 times.
Answer:
5.83 times
Explanation:
The computation of the Gamble's inventory turnover is given below:
As we know that
Inventory turnover = Cost of goods sold ÷ (ending inventory + opening inventory) ÷ 2
= $700,000 ÷ ($140,000 + $100,000) ÷ 2
= $700,000 ÷ $120,000
= 5.83 times
The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing the corporation includes a credit to:________. a. Goodwill b. Organizational Expenses c. Cash d. Common Stock
Answer: D. Common stock
Explanation:
Common stock refers to the security which represents ownership in a corporation.
The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing a corporation includes a credit to the common stock.
The following units of an item were available for sale during the year:
Beginning inventory 30 units at $40
Sale 26 units at $58
First purchase 15 units at $41
Sale 11 units at $58
Second purchase 10 units at $42
Sale 9 units at $58
The firm uses the perpetual inventory system, and there are 9 units of the item on hand at the end of the year.
a. What is the total cost of the ending inventory according to FIFO?
b. What is the total cost of the ending inventory according to LIFO?
Xlon Co budgets a seling price of $ 86 per unit , varlable costs of $ 34 per unit , and total fixed costs of $ 286,000 . During June , the company produced and sold 12,400 units and incurred actual variable costs of $ 367,000 and actual fixed costs of $ 301,000 . Actual sales for June were $ 1,100,000 . Prepare a flexible budget report showing variances between budgeted and actual results . List variable and fixed expenses separately . ( Indicate the effect of each variance by selecting for favorable , unfavorable , and no variance )
Answer and Explanation:
The preparation of the flexible budget report is presented below;
Particulars Flexible budget Actual sales Variance fav or unfav
Sales $1,066,400 $1,100,000 $33,600 favorable
Less:
Variable expense $421,600 $367,000 $54,600 favorable
Contribution margin $644,800 $733,000 $88,200 favorable
Less:
Fixed expense $286,000 $301,000 $15,000 unfavorable
Net operating income $358,800 $432,000 $73,200 favorable
The following labor standards have been established for a particular product:
Standard labor hours per unit of output 4.4 hours
Standard labor rate $16.70 per hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked 5,200 hours
Actual total labor cost $87,360
Actual output 1,100 units
Required:
a. What is the labor rate variance for the month?
b. What is the labor efficiency variance for the month?
Answer:
See below
Explanation:
a. Labor rate variance for the month
= (SR - AR) × AH
= ($16.70 - ($87,360/5,200 hours)) × 5,200
= ($16.70 - $16.8) × 5,200
= $520 Unfavourable
b. Labor efficiency variance
= (SH - AH) × AR
(4.4 × 1,100) - 5,200) × $16.70
= (4,840 - 5,200) × $16.70
= $6,012 Unfavourable
XYZ segmented last year's income statement into its ten product lines. The CEO is curious as to what effect dropping one product line at the beginning of last year would have had on overall company profit. What is the best number to look at to determine the effect of this elimination on the net operating income of the company as a whole?
A) the product line's sales dollars.
B) the product line's contribution margin.
C) the product line's segment margin.
D) the product line's segment margin minus an allocated portion of common fixed expenses.
Answer:
Option c: The product line's segment margin
Explanation:
Net Operating Income
This is often regarded as the
adjusted Effective Gross Income (EGI) adjusted for annual operating expense and capital expenditures of a firm/organization
Net Operating Income Equation
(sales - variable expenses) - fixed expenses
Segment margin
The product line segment margin is usually said to be obtainable through the act of deduction of the traceable fixed costs of a segment from the segment's contribution margin. It shows or entails the margin at hand after a segment has covered all of its own costs. Itis the best gauge of the long-run profitability of a segment as it includes only those costs that are caused by the segment.
Segment margin formula
Contribution Margin - Traceable fixed costs
Acme Fastener and Tool is having major problems with demand management. The VP of Sales is very focused on increasing productivity according to forecasts, but the operations manager routinely presents obstacles to increasing production above current levels. Of the following, which problem is the firm experiencing?
a. Functional silos.
b. Lack of attention on operational planning.
c. Overemphasis on forecasting.
d. Focus on tactics.
Answer:
Functional silos
Explanation:
Functional silo occurs when different teams with their responsibilities and functions have different views about a process.
The managers who have accumulated resources and influence are conflicted over the functional aspects of a process rather than looking out for the wider benefit of the business.
In the given scenario VP of Sales is very focused on increasing productivity according to forecasts, but the operations manager routinely presents obstacles to increasing production above current levels.
They are both pursuing conflicting agendas instead of working together.
This is called functional silo.
Due to a turnover, a company hires 400 employees each year, on average. Assume that an average stay of an employee in the company is 5 years. On average, how many employees does the company have?
Answer:
On average, the company has 2000 employees.
Explanation:
Since, due to a turnover, a company hires 400 employees each year, on average; assuming that an average stay of an employee in the company is 5 years, to determine, on average, how many employees does the company have, the following calculation must be performed:
Year 0 = 0
Year 1 = 400 (+400)
Year 2 = 800 (+400)
Year 3 = 1200 (+400)
Year 4 = 1600 (+400)
Year 5 = 2000 (+400)
Year 6 = 2000 (+400 -400)
Year 7 = 2000 (+400 - 400)
Therefore, on average, the company has 2000 employees.
Information related to Kerber Co. is presented below.
1. On April 5, purchased merchandise from Wilkes Company for $23,000, terms 2/10, net/30, FOB shipping point.
2. On April 6, paid freight costs of $900 on merchandise purchased from Wilkes.
3. On April 7, purchased equipment on account for $26,000.
4. On April 8, returned damaged merchandise to Wilkes Company and was granted a $3,000 credit for returned merchandise.
5. On April 15, paid the amount due to Wilkes Company in full.
Collapse question
Prepare the journal entries to record these transactions on the books of Kerber Co. under a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
No. Date Account Titles and Explanation Debit Credit
1. April 5April 6April 7April 8April 15
2. April 5April 6April 7April 8April 15
3. April 5April 6April 7April 8April 15
4. April 5April 6April 7April 8April 15
5. April 5April 6April 7April 8April 15
Answer:
Date Account titles & Explanation Debit Credit
Apr-05 Merchandise Inventory $23,000
Accounts Payable $23,000
Apr-06 Merchandise Inventory $900
Cash $900
Apr-07 Equipment $26,000
Accounts Payable $26,000
Apr-08 Accounts Payable $3,000
Merchandise Inventory $3,000
Apr-15 Accounts Payable $20,000
($23,000-$20,000)
Merchandise Inventory $400
($20,000*2%)
Cash $19.600
A bank has $132,000 in excess reserves and the required reserve ratio is 11 percent. This means the bank could have __________ in checkable deposit liabilities and __________ in (total) reserves. Group of answer choices $5,000,000; $5,869,000 $1,000,000; $110,000 $4,000,000; $590,000 $4,700,000; $869,000
Answer:
$14,520 in check-able deposit liabilities and $117,480 in total reserves.
Explanation:
The bank has $132,000 in excess reserves and excess reserves ratio is 11%. The bank will have total reserves of $132,000 * 89% = $117,480. The total liabilities will be equivalent to the excess reserves which is $14,520 [$132,000 - $117,480].
The cost method of accounting for stock: __________
a. recognizes dividends as income
b. is only appropriate as part of a consolidation
c. requires the investment be increased by the reported net income of the investee
d. requires the investment be decreased by the reported net income of the investee
Answer:
Option a (recognizes.................income) is the correct answer.
Explanation:
The proportion of even more inventories is below 20 percent, therefore the firm sends dividends on the inventories which are incorporated into the personal income tax rate.Dividends paid mostly by the investor, not adjusting as necessary for the investor's total earnings, should be declared as compensation or earnings.The provided situation is not connected with other possibilities. So the above option is the correct answer.
What is the objective of finacial reporting
THIS IS YOUR ANSWER
MARKS ME AS BRAINLIST
Discuss the principles of professionalism.
Answer:
Maintain confidentiality in professional relationships. ... Fulfill commitments in a reliable, responsive and efficient manner. Be fully accountable for actions, use of resources and financial dealings.
Identify whether the following transactions are primary market or secondary market transactions. a. You buy 855 shares of ABC Co. through your brokerage account. b. You buy $5,801 of XYZ Co. bonds from another investor. c. M
Answer:
The answer is:
A - Secondary market
B - Secondary market
Explanation:
Primary market is when a share is brought directly from a company through its Initial Public Offering. It is from the company directly to the investors WHILE secondary market is when an investor buys already issued shares from another investor or from a dealer.
A - Secondary market
B - Secondary market
Start Inc. has 5,000 shares of 6%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2012. What is the annual dividend on the preferred stock? Group of answer choices $60 per share $30,000 in total $50,000 in total $0.60 per share
Answer:
$30,000 in total
Explanation:
The annual dividend on preferred stock can be determined based on the dividend rate, in other words, the annual dividend is the dividend rate multiplied by the face value of the preferred stock as shown thus:
annual dividend on preferred stock=number of preferred shares outstanding*par value per share*dividend rate
number of preferred shares outstanding=5,000
par value per share=$100
dividend rate=6%
50,000 shares refer to the number of common stocks outstanding
annual dividend on preferred stock=5000*$100*6%
annual dividend on preferred stock=$30,000
dividend per share=$30000/5000=$6
Hillside issues $2,700,000 of 7%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,304,790.
Required:
Prepare the January 1, 2019, journal entry to record the bonds’ issuance.
Answer: Dr Cash $3,304,790
Cr Bonds payable $2,700,000
Cr Premium on bond issued $604,790
Explanation:
The journal entry to record the bonds’ issuance will be illustrated below:
January 1, 2019
Debit Cash $3,304,790
Credit Bonds payable $2,700,000
Credit Premium on bond issued $604,790
The calculation for annual depreciation using the straight-line depreciation method is:____.A. Initial cost × Estimated useful life.B. Initial cost / Estimated useful life.C. Depreciable cost × Estimated useful life. D. Depreciable cost / Estimated useful life.
Answer:
D.
Explanation:
D. Depreciable cost/estimated useful life
you don’t use initial cost because you subtract the salvage value from initial value to get the depreciable costs. And you divide not multiply by the estimated useful life.
Nexis Corp. issues 1,000 shares of $15 par value common stock at $22 per share. When the transaction is recorded, credits are made to:______.
a. Common Stock, $22,000, and Retained Earnings, $15,000
b. Common Stock, $22,000
c. Common Stock, $15,000, and Paid-In Capital in Excess of Par, $7,000
d. Common Stock, $7,000, and Paid-In Capital in Excess of Stated Value, $15,000
Answer: C. Common Stock, $15,000, and Paid-In Capital in Excess of Par $7,000
Explanation:
The journal entry that will be made for this transaction include:
Debit Cash $22,000
Credit Common Stock $15,000
Credit Paid-In Capital in Excess of Par $7,000
Therefore, the correct option is C
The units of Manganese Plus available for sale during the year were as follows:
Mar. 1 Inventory 22 units $29
June 16 Purchase 31units $20
Nov. 28 Purchase 46 units $39
There are 14 units of the product in the physical inventory at November 30. The periodic inventory system is used. Determine the inventory cost in (a) FIFO, (b) LIFO, and (c) average cost methods.
Answer and Explanation:
The computation of the ending inventory by following methods are
a. Under FiFO
= 14 units at $39
= $546
b. Under LIFO
= 14 units at $29
= $406
c, Under average cost method
But before that the average cost per unit should be determined
= (22 units at $29 + 31 units at $20 + 46 units at $39) ÷ (22 units + 31 units + 46 units)
= ($638 + $620 + $1,794) ÷ (99 units)
= $30.83
Now the ending inventory is
= $30.83 × 14 units
= $431.62
= $432
Which of the following is an indirect manufacturing cost in a manufacturing company?
a. Indirect Materials
b. Real estate taxes on the factory
c. Salary of production floor manager
d. All of the above would be considered indirect manufacturing costs
Answer:
d
Explanation:
Indirect costs are costs of production that cannot be directly linked to a unit, activity or product.
Indirect manufacturing costs are cost of production that cannot be directly linked to a good that is produced.
Examples of indirect manufacturing cost include :
Indirect Materialsutility machine maintenance Real estate taxes on the factoryDepreciation Salary of production floor manager