Information for Pidris Metalworks as of December 31 follows. Prepare (a) the company's schedule of cost of goods manufactured for the year ended December 31; (12 Points).(b) prepare the company's income statement that reports separate categories for selling and general and administrative expenses. (12 Points).
Answers
Answer: hello your question is incomplete attached below is the missing data. ( first image )
answer:
Attached below
Explanation:
A) company's schedule of cost of goods manufactured for year ended
attached below is the required schedule ( second Image )
B) Company's income statement
attached below is the company's income statement ( Image 3 and 4 )
Related Questions
On a recent shopping trip to a Target store, Kim went from aisle to aisle selecting the products he needed. Interestingly, the only person Kim encountered in the store was the employee at the checkout counter. The employee is an example of a(n):______.
a. Inside salesperson
b. Sales support staff
c. Order getter
d. Key account manager
e. Missionary salesperson
Answers
Answer:
A
Explanation:
An Inside salesperson is a salesperson that works inside an office or a store and does not go out to get customer. Kim encountered an employee inside the store. thus the person is an inside sales person
Missionary salesperson influences others to buy a product
Leona, whose marginal tax rate on ordinary income is 37 percent, owns 100 percent of the stock of Henley Corporation. This year, Henley generates $1 million of taxable income.
If Henley wants to pay all of its after-tax earnings to Leona as a dividend, calculate the amount of the dividend payment.
Calculate Leona’s tax due on the dividend computed in part a, and her after-tax cash flow from the dividend receipt.
Compute the combined corporate and individual tax burden on Henley’s $1 million of current year income, and the effective combined tax rate on this income.
Answers
Answer: See explanation
Explanation:
First and foremost, it should be noted that there's a flat tax rate of 21% on the taxable income, therefore the after tax income will be:
= (1 - 21%) × $1 million
= 79% × $1 million
= $790,000
Therefore, the amount of the dividend payment is $790,000 which is given to Leona.
The after tax cash flow from the dividend receipt will be:
= $790,000 - (20% × $790,000)
= $790,000 - (0.2 × $790,000)
= $790,000 - $158,000
= $632,000
Therefore, the total tax by Henly and Leona will then be:
= $210,000 + $158,000
= $368,000.
This is 36.8% (368000/1 million) of the tax rate.
Rowan Co. purchases 500 common shares (40%) of JBI Corp. as a long-term investment for $630,000 cash on July 1. JBI Corp. paid $14,750 in total cash dividends on November 1 and reported net income of $295,000 for the year. (1) - (3) Prepare Rowan's entries to record the purchase of JBI shares, the receipt of its share of JBI dividends and the December 31 year-end adjustment for its share of JBI net income.
Answers
Answer and Explanation:
The journal entries are shown below;
On Jul 01
Equity method investments $630,000
To Cash $630,000
(Being cash paid is recorded)
On Nov 01
Cash $5,900 (40% of $14,750)
Equity method investments $5,900
(Being cash receipt is recorded)
On Dec 31
Equity method investments $118,000 (40% of $295,000)
To Earnings from equity method investments $118,000
(Being sharing of the net income is recorded)
New lithographic equipment, acquired at a cost of $800,000 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $90,000. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, the equipment was sold for $135,000. Required: 1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double declining- balance method. 2. On January 1, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. 3. On January 1, journalize the entry to record the sale, assuming that the equipment was sold for $88,750 instead of $135,000. Refer to the Chart of Accounts for exact wording of account titles.
Answers
Answer:
Alternative Depreciation Methods
(a) the straight-line method calculations:
Annual depreciation expense for each of the five years of use = $142,000 ($710,000/5)
(b) the double declining- balance method calculations:
Depreciation rate = 100%/5 * 2 = 40%
1st year Depreciation = $320,000 ($800,000 * 40%)
2nd year Depreciation = $192,000 ($480,000 * 40%)
3rd year Depreciation = $115,200 ($288,000 * 40%)
4th year Depreciation = $69,120 ($172,800 * 40%)
5th year Depreciation = $13,680 ($103,680 - $90,000)
2. Journal Entries (double-declining-balance method):
Debit Sale of Equipment $800,000
Credit Equipment $800,000
To transfer the equipment to Sale of Equipment account.
Debit Accumulated Depreciation $696,320
Credit Sale of Equipment $696,320
To transfer the accumulated depreciation to Sale of Equipment account.
Debit Cash $135,000
Credit Sale of Equipment $135,000
To record the proceeds from the sale of the equipment.
3. Journal Entries (double-declining-balance method):
Debit Sale of Equipment $800,000
Credit Equipment $800,000
To transfer the equipment to Sale of Equipment account.
Debit Accumulated Depreciation $696,320
Credit Sale of Equipment $696,320
To transfer the accumulated depreciation to Sale of Equipment account.
Debit Cash $88,750
Credit Sale of Equipment $88,750
To record the proceeds from the sale of the equipment.
Explanation:
a) Data and Calculations:
Cost of the new lithographic equipment = $800,000
Estimated useful life = 5 years
Estimated residual value = $90,000
Depreciable amount = $710,000 ($800,000 - $90,000)
Sales proceeds in the first week of the fifth year = $135,000
The Pizza Company is considering a new three-year expansion project. The key data are shown below:
The company hired a consulting firm to help evaluate the project and paid the consulting fee of $60,000. The company owns the space. If company did not invest in the project, it can receive after-tax rental fee for $300,000 per year for 3 years. However, if the
company invested in the project, it will use the space for the project.
The fixed cost to produce pizza is required at $150,000 per year.
It is estimated that 50,000 units will be sold in the first year and that 40,000 units and 30,000 units will be sold in the second and third years respectively.
Each pizza is expected to sell for $25 and the production cost will be $15 per unit.
The sales price and variable cost should increase with inflation. Expected inflation rate per year is 5%.
The project requires an initial investment in working capital of $500,000, which will be required in each year at 10% of revenue in the following year.
The purchase of the machinery at the start of the project is $1,000,000. The shipping and installation cost are $200,000. The machinery will be depreciated straight-line to zero. It is estimated that the machinery can be sold at the end of the project for $250,000.
To finance the project, the company would need to take a one-million dollar loan at 8% interest rate p.a. from HSBC over the life of the project. Annual interest expense is $80,000.
The corporate tax rate is 34%.
The Pizza Company is evaluating its cost of capital under alternative financing arrangements. In consultation with the consulting firm, the Pizza Company expects to be able to issue new Debt at Par with a coupon rate of 8% (coupons paid annually) and to issue new preferred stock with a $4 per share dividend at $32 a share. The common stock of the Pizza Company is currently selling for $22 a share while its book value is $6. The Pizza Company expects to pay a total
dividend of $525,000 for its 200,000 common shares outstanding next year. Market analysts foresee a growth in dividends of the company at the rate of 4% per year. The Pizza Company raises capital using 30% bond, 20% preferred stock, and 50% common stock
a. What is the cost of capital (WACC) of the Pizza Company?
b. Calculate the NPV of the project using the cost of capital calculated in part (a).
Should the project be accepted?
Answers
Answer:
dividend of $525,000 for its 200,000 common shares outstanding next year. Market analysts foresee a growth in dividends of the company at the rate of 4% per year. The Pizza Company raises capital using 30% bond, 20% preferred stock, and 50% common stock
a. What is the cost of capital (WACC) of the Pizza Company?
b. Calculate
Complete accounting cycle and financial statements
The city council of E. Staatsboro approved the following budget for the General Fund for fiscal year 2019.
Estimated Revenues
Property taxes $335,000
License fees 40,000
Fines and penalties 15,000
Total revenues $390,000
Appropriations
Salaries $350,000
Supplies and utilities 30,000
Debt service 3,000
Total appropriations 383,000
Budgeted Increase in Fund Balance $7,000
The postclosing trial balance for the fund, as of December 31, 2018, was as follows:
Debits Credits
Cash $15,000
Vouchers payable $8,000
Fund balance (unassigned) 7,000
$15,000 $15,000
The following transactions and events occurred during FY 2019.
1. Levied property taxes of $335,000 and mailed tax bills to property owners.
2. Borrowed $300,000 on tax anticipation notes at an interest rate of 1 percent per annum.
3. Ordered supplies expected to cost $18,000.
4. The supplies arrived, along with an invoice for $19,000; the city paid the invoice immediately.
5. Received cash ($383,000) from the following sources: property taxes ($330,000), licenses and fees ($38,000), fines and penalties ($15,000).
6. Paid cash for the following purposes: unpaid vouchers at the start of year ($8,000); salaries ($340,000); utility bills ($11,000).
7. Repaid the tax anticipation notes 6 months after date of borrowing, with interest.
8. Processed a budgetary interchange, increasing the appropriation for supplies and utilities by $2,000 and reducing the appropriation for salaries by the same amount.
9. Will pay salaries for the last few days in December, amounting to $2,000, at the end of the first pay period in January 2020; also, received in early January 2020 a utilities invoice for $1,000 applicable to December 2019.
Use the preceding information to do the following:
a. Prepare journal entries to record the budget and the listed transactions and events.
b. Prepare a preclosing trial balance.
c. Prepare a balance sheet; a statement of revenues, expenditures, and changes in fund balance; and a budgetary comparison schedule.
Answers
London Company hired some students to help count inventory during their semester break. Unfortunately, the students added incorrectly and the 2019 ending inventory was overstated by $5,000. What would be the effect of this error in ending inventory
Answers
The effect of this error in ending inventory would be decrease in cost of goods sold and increase in increasing ending inventory.
Overstating inventory decreases COGS or cost of goods sold because the surplus stock in accounting records results in a higher closing stock and lower COGS. Current assets, total assets, and retained earnings are all exaggerated as a result of overstated ending inventories.
What is inventory?All the goods, merchandise, and supplies that a company keeps on hand in anticipation of selling them for a profit are referred to as inventory. A crucial corporate asset is inventory. Businesses conduct inventories to determine how much stock they have at a given time. Work-in-process (items in various stages of completion), finished goods, and supplies needed to create new sales items are all included in inventory.
What is COGS or cost of good sold?Cost of goods sold is a value or cost involved in selling goods during a particular period.
Cost of sales or the cost of goods sold (COGS) quantify the costs incurred by a company when producing a good or service. it includes the costs of labor, raw materials, and administrative expenses related to running a production plant.
Formula for cost of goods sold is :
Starting inventory + purchases − ending inventory = cost of goods sold
Supportive answer
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Assume that Division Blue has achieved a yearly income from operations of $166,000 using $976,000 of invested assets. If management has set a minimum acceptable return of 8%, the residual income is a.$166,000 b.$105,504 c.$70,336 d.$87,920
Answers
Answer:
d.$87,920
Explanation:
Residual Income = Net Income - Cost of Investment
therefore
Residual Income = $166,000 - ($976,000 x 8%)
= $87,920
In some very small countries, ConveyerPape recognizes that the cost of navigating the legal system and establishing a distribution channel is more than the potential profit. Still, ConveyerPape would like to provide conveyer belts to some established customers operating in the country. ConveyerPape should consider utilizing a:________
Answers
Answer:
Distribution intermediary
Explanation:
In simple words, Producers can contact different sorts of clients through intermediaries in a distribution chain. Intermediaries function as go-betweens for distinct parts of the supply chain, purchasing from one and delivering to another.
In other words, A delivery route is a series of firms or middlemen throughout which an item or service is purchased by the end buyer.
Doug Datner had an eclectic background. He completed his law degree from the University of Virginia, then went to work for a technology start-up in Dubai. After the start-up was purchased by a larger corporation, affording Doug a hefty sum of money, Doug and his spouse returned to the United States. While working with an architect and a designer to build their dream home, they realized that there was not a provider of high-quality custom-made door and window hardware at a reasonable price point in the United States. Even though Doug had no experience in the field, he decided to start a business manufacturing high-quality custom-made door and window hardware. He named the company Hardware House Doug and his wife cleared space in their newly constructed garage, designed several basic prototypes, and hired a metalwork expert to replicate their prototypes. They decided to have a few designs in catalog as one component of their business, but have the capability to alter those designs to provide designers with custom hardware. The first few years were tough. Business was steady enough to hire a second metalwork expert, but cash flow challenges often made Doug worry whether he would be able to pay his metalwork experts on time. Still, the Hardware House had gained a number of consistent clients, and was able to move into an old warehouse space and expand operations. Ten years later, Hardware House has nearly 100 employees. While the majority of the employees work in manufacturing, there are also employees in marketing, design, accounting, and human resources. Doug structured the business to limit his liability in case of lawsuit, but still managed to maintain the business without sharing ownership.
Which of the following is an advantage Doug should expect by sharing ownership with others?
a. Gaining access to all of the distribution of profits.
b. Access to additional knowledge and expertise.
c. Additional freedom from government regulation.
d. Enhanced control to make decisions immediately
e. Greater degree of secrecy
Answers
Answer: b. Access to additional knowledge and expertise.
Explanation:
One of the advantages of opening a limited company be it private or public, is the additional knowledge that the other shareholders would bring on board.
In the case of a private company, the new shareholders would be from various backgrounds and would have knowledge on how to grow the business and in the case of a public company, the Board of Directors are usually drawn from various industries and so will put their experience from those industries into the company thereby giving it an edge.
Consider the case of Cranked Coffee Company:
Cranked Coffee Company is a mature firm that has a stable flow of business. The following data was taken from its financial statements last year:
Annual sales $10,200,000
Cost of goods sold $6,630,000
Inventory $3,200,000
Accounts receivable $2,200,000
Accounts payable $2,400,000
Cranked Coffee’s CFO is interested in determining the length of time funds are tied up in working capital. Use the information in the preceding table to complete the following table. (Note: Use 365 days as the length of a year in all calculations, and round all values to two decimal places.)
Value
Inventory conversion period 46.93; 41.71; 176.71; or 39.11
Average collection period 27.25; 78.73; 24.38; or 22.94
Payables deferral period 32.50; 41.07; 33.24; or 132.13
Cash conversion cycle 39.62; 122.77; 37.54; 45.88
B: Both the inventory conversion period and payables deferral period use the average daily COGS in their denominators, whereas the average collection period uses average daily sales in its denominator. Why do these measures use different inputs?
Inventory and accounts payable are carried at cost on the balance sheet, whereas accounts receivable are recorded at the price at which goods are sold.
Current assets should be divided by sales, but current liabilities should be divided by the COGS.
C. Is there generally a positive or negative relationship between net working capital and the cash conversion cycle?(In other words, if a firm has a high level of net working capital, is it likely to have a high or low cash conversion cycle?)
There is a positive relationship between net working capital and the cash conversion cycle.
There is a negative relationship between net working capital and the cash conversion cycle.
D. What are the four key factors in a firm’s credit policy?
Credit terms, discounts, credit standards, and collection policy
Credit period, discounts, credit standards, and collection policy
E. If the credit terms as published by a firm were 2/15, net 60, this means the firm will:
allow a 2% discount if payment is received within 15 days of the purchase, and if the discount is not taken the full amount is due in 60 days.
allow a 15% discount if payment is received within 2 days of the purchase, and if the discount is not taken the full amount is due in 60 days.
F. The management at Cranked Coffee Company wants to continue its internal discussions related to its cash management. One of the finance team members presents the following case to his cohorts:
Case in Discussion
Cranked Coffee Company’s management plans to finance its operations with bank loans that will be repaid as soon as cash is available. The company’s management expects that it will take 40 days to manufacture and sell its products and 35 days to receive payment from its customers. Cranked Coffee’s CFO has told the rest of the management team that they should expect the length of the bank loans to be approximately 75 days.
Which of the following responses to the CFO’s statement is most accurate?
The CFO is not taking into account the amount of time the company has to pay its suppliers. Generally, there is a certain length of time between the purchase of materials and labor and the payment of cash for them. The CFO can reduce the estimated length of the bank loan by this amount of time.
The CFO’s approximation of the length of the bank loans should be accurate, because it will take 75 days for the company to manufacture, sell, and collect cash for its goods. All these things must occur for the company to be able to repay its loans from the bank.
Setting and implementing a credit policy is important for three main reasons:
It has a minor effect on sales, it influences the amount of funds tied up in receivables, and it affects bad debt losses.
It has a major effect on sales, it influences the amount of funds tied up in receivables, and it affects bad debt losses.
Answers
Answer:
Cranked Coffee Company
A. Cash conversion cycle = 122.77 days.
B. The measures use different inputs because:
Inventory and accounts payable are carried at cost on the balance sheet, whereas accounts receivable are recorded at the price at which goods are sold.
C. There is a negative relationship between net working capital and the cash conversion cycle.
D. Credit period, discounts, credit standards, and collection policy
E. If the credit terms as published by a firm were 2/15, net 60, this means the firm will:
allow a 2% discount if payment is received within 15 days of the purchase, and if the discount is not taken the full amount is due in 60 days.
F. The most accurate response to the CFO's statement is:
The CFO’s approximation of the length of the bank loans should be accurate, because it will take 75 days for the company to manufacture, sell, and collect cash for its goods. All these things must occur for the company to be able to repay its loans from the bank.
G. Setting and implementing a credit policy is important for three main reasons:
It has a major effect on sales, it influences the amount of funds tied up in receivables, and it affects bad debt losses.
Explanation:
a) Data and Calculations:
Annual sales $10,200,000
Cost of goods sold $6,630,000
Inventory $3,200,000
Accounts receivable $2,200,000
Accounts payable $2,400,000
Inventory conversion period = Inventory ÷ (Cost of sales ÷ 365)
= $3,200,000/$6,630,000 * 365
= 176.17 days
Average collection period = Accounts receivable/Sales * 365
= $2,200,000/$10,200,000 * 365
= 78.73 days
Payables deferral period = Accounts payable/Cost of goods sold * 365
= $2,400,000/$6,630,000 * 365
= 132.13 days
Cash conversion cycle = Inventory conversion period + Average collection - Payables deferral period
= 176.17 + 78.73 - 132.13
= 122.77
Why do you think demand analysis is essential for businesses?
Answers
✦ ✦ ✦ Beep Boop - Blu Bot! At Your Service! Scanning Question . . .
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--------------------------------------------------------------------------------------------------------------Question: Why do you think demand analysis is essential for businesses?
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Answer: Demand analysis is the process of understanding the customer demand for a product or service in a target market. Companies use demand analysis techniques to determine if they can successfully enter a market and generate expected profits to expand their business operations. It also gives a better understanding of the high-demand markets for the company’s offerings, using which businesses can determine the viability of investing in each of these markets. The importance of demand analysis in the business decision is that it helps firms design their pricing policy. The Firm can choose either to lower or raise a product’s price by observing the trend of consumer demand for that product. Producers can’t fix the price for their products without first understanding the market demand for them. These are reasons why I think demand analysis is essential for businesses
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Your grandparents put $10,200 into an account so that you would have spending money in college. You put the money into an account that will earn an APR of 4.19 percent compounded monthly. If you expect that you will be in college for 4 years, how much can you withdraw each month?
Answers
Answer:
Monthly withdrawal = $ 231.17 per month
Explanation:
Below is the calculation:
Deposit amount in the bank = $10200
Interest rate earned by the deposit = 4.19%
Monthly interest rate = 4.19% / 12 = 0.34917%
Number of periods = 4 years x 12 = 48
Amount in the account = Monthly withdrawal x (P/A, 0.34917%, 48)
10200 = Monthly withdrawal x 44.12246
Monthly withdrawal = 10200/44.12246
Monthly withdrawal = $ 231.17 per month
London New York Zurich Hong Kong Bid/Ask Quotes for CHF $0.7464-71 $0.7469-76 $0.7471-74 $0.7460-70 In order to take advantage of locational arbitrage, a currency speculator should buy CHF from the______ dealer and sell CHF to the ______ dealer. Group of answer choices Hong Kong; Zurich London; New York Zurich; Hong Kong New York; Hong Kong
Answers
Answer:
The correct option is Hong Kong; Zurich.
Explanation:
Giveen:
Currency dealer in London New York Zurich Hong Kong
Bid/Ask Quotes for CHF $0.7464-71 $0.7469-76 $0.7471-74 $0.7460-70
Locational arbitrage can be described as the act of a currency speculator attempting to profit from tiny exchange rate discrepancies across several banks in different locations for a specific currency pair.
Since it is possible for the currency speculator to buy at Ask price from a bank in one location and sell it to another bank at bid price in another location, he will try to identify where he can buy at the lowest price to go and sell in another location with the highest price.
From the table above, Hong Kong has the lowest Bid/Ask Quotes for CHF of $0.7460-70 while Zurich has the highest Zurich of $0.7471-74. Therefore a currency speculator should buy CHF from the Hong Kong dealer and sell CHF to the Zurich dealer.
Therefore, the correct option is Hong Kong; Zurich.
A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 7.3%, and sells for $1,170. Interest is paid annually.a. If the bond has a yield to maturity of 10.7% 1 year from now, what will its price be at that time? (Do not round intermediate calculations. Round your anser to nearest whole number.)b. What will be the annual rate of return on the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)c. Now assume that interest is paid semiannually. What will be the annual rate of return on the bond?Slightly greater than your part b answerSlightly less than your part b answerd. If the inflation rate during the year is 3%, what is the annual real rate of return on the bond? (Assume annual interest payments.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)
Answers
Answer:
a. Price 1 year later = $810
b. Annual rate of return on the bond = -24.53%
c. Since -24.79% is lower than -24.53% obtained part b, this implies that annual rate of return is slightly less than our part b answer.
d. Annual real rate of return on the bond = -26.73%
Explanation:
a. If the bond has a yield to maturity of 10.7% 1 year from now, what will its price be at that time? (Do not round intermediate calculations. Round your answer to nearest whole number.)
This can be calculated as follows:
Price 1 year later = Coupon rate * Par value / Yield to maturity * (1 - 1 / (100% + Yield to maturity)^Years to maturity) + Par value / (100% + Yield to maturity)^Years to maturity = 7.3% * 1000 / 10.7% * (1 - 1 / (100% + 10.7%)^9) + 1000 / (100% + 10.7%)^9 = $810
b. What will be the annual rate of return on the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)
This can be calculated as follows:
Annual rate of return on the bond = (Price 1 year later + Coupon rate * Par value) / Price now - 1 = (810 + 7.3% * 1000) / 1170 - 1 = -24.53%
c. Now assume that interest is paid semiannually. What will be the annual rate of return on the bond?Slightly greater than your part b answer Slightly less than your part b answer
This can be determined as follows:
Price 1 year later = (Coupon rate / 2) * Par value / (Yield to maturity / 2) * (1 - 1 / (100% + (Yield to maturity / 2))^(Years to maturity * 2)) + Par value / (100% + (Yield to maturity / 2))^(Years to maturity * 2) = (7.3% / 2) * 1000 / (10.7% / 2) * (1 - 1 / (100% + (10.7% / 2))^(9 * 2)) + 1000 / (100% + (10.7% / 2))^(9 * 2) = $807
Annual rate of return on the bond = (Price 1 year later + Coupon rate * Par value) / Price now - 1 = (807 + (7.3% / 2) * 1000) / 1170 - 1 = -24.79%
Since -24.79% is lower than -24.53% obtained part b, this implies that annual rate of return is slightly less than our part b answer.
d. If the inflation rate during the year is 3%, what is the annual real rate of return on the bond? (Assume annual interest payments.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)
This can be calculated as follows:
Annual real rate of return on the bond = (1 + nominal return) / (1 + inflation)-1 = (1 - 24.53%) / (1 +3 %) - 1 = -26.73%
Brinkley Corporation needs to estimate the profit for a new product. Profit is selling price minus cost. The selling price for the product will be $45/unit. The cost of the new product will comprise procurement, labor, and transportation costs. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows:
Procurement Cost ($) Probability Labor Cost ($) Probability Transportation Cost ($) Probability
10 0.25 20 0.10 3 0.75
11 0.45 22 0.25 5 0.25
12 0.30 24 0.35
25 0.30
Required:
Compute profit per unit for the worst case.
Answers
Answer:
Brinkley Corporation
Profit per unit for the worst case is:
= $7.05.
Explanation:
a) Data and Calculations:
Selling price for the product = $45 per unit
Cost of the new product =
Procurement Probability Labor Probability Transportation Probability
Cost ($) Cost ($) Cost ($)
10 0.25 20 0.10 3 0.75
11 0.45 22 0.25 5 0.25
12 0.30 24 0.35
25 0.30
Procurement Probability Labor Probability Transportation Probability
Cost ($) Cost ($) Cost ($)
2.50 (10 * 0.25) 2.00 (20 * 0.10) 2.25 (3 * 0.75)
4.95 (11 * 0.45) 5.50 (22 * 0.25) 1.25 (5 * 0.25)
3.60 (12 * 0.30 ) 8.40 (24 * 0.35)
7.50 (25 * 0.30)
11.05 23.40 3.50
Procurement cost = $11.05
Labor cost = 23.40
Transportation cost 3.50
Total cost = $37.95
Selling price per unit = $45.00
Total cost per unit 37.95
Profit per unit = $7.05
Suppose a commercial banking system has $40,000 of outstanding checkable deposits and actual reserves of $4,500. If the reserve ratio is 10 percent, the banking system can expand the supply of money by the maximum amount of
Answers
Answer: $50000
Explanation:
Based on the information that's been given in the question, firstly we need to calculate the excess reserves which will be:
= $4500 - (10% × $40000)
= $4500 - $4000
= $500
Then, the money supply that's expanded will be:
= Excess reserve / Reserve ratio
= $5000 / 10%
= $5000 / 0.1
= $50000
Therefore, the answer is $50,000.
Maxwell Washington's weekly gross earnings for the week ending March 9 were $2,620, and her federal income tax withholding was $550.20. Assuming the social security tax rate is 6% and Medicare tax is 1.5% of all earnings, what is Washington's net pay?
Answers
Answer:
1 million
Explanation:
Mickley Company’s plantwide predetermined overhead rate is $20.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour. The following information pertains to Job A-500: Direct materials $ 280 Direct labor $ 150 Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 70 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)
Answers
Answer and Explanation:
The computation is shown below;
1.
Total hours for job A - 500
= Direct labor ÷direct labor wage rate
= $150 ÷ $15
= 10
Total over head cost = overhead cost per labor hours × no. of labor hours
= $20 × 10
= $200
total manufacturing cost = Direct materials cost + Direct labor cost + Total over head cost
= $280 + $150 + $200
= $630
2.
Cost assigned to each unit
= total manufacturing cost ÷ number of units
= $630 ÷ 70
= $9
Scampini Technologies is expected to generate $175 million in free cash flow next year, and FCF is expected to grow at a constant rate of 4% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 10%. If Scampini has 55 million shares of stock outstanding, what is the stock's value per share
Answers
Answer:
the stock value per share is $53
Explanation:
The computation of the stock value per share is shown below:
Value of operations = Free cash flows ÷ ( Capitalization Rate - growth rate )
= $175 Million ÷ ( (10% - 4%)
= $2,917
Now stock value per share is
= $2,917 ÷ 55 million shares
= $53 per share
Hence, the stock value per share is $53
Rocky Mountain Corporation makes two types of hiking boots—Xactive and Pathbreaker. Data concerning these two product lines appear below: Xactive Pathbreaker Direct materials per unit $ 64.00 $ 50.20 Direct labor cost per unit $ 17.40 $ 12.20 Direct labor-hours per unit 1.4 DLHs 1 DLHs Estimated annual production and sales 17,000 units 67,000 units The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead $1,743,360 Estimated total direct labor-hours 90,800 DLHs
Requried:
a. Compute the predetermined overhead rate based on direct labor-hours.
b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product.
Answers
Answer:
1a. Predetermined overhead rate = Estimated total manufacturing overhead / Estimated total direct labor-hours
Predetermined overhead rate = $1,743,360 / 90,800 DLHs
Predetermined overhead rate = $19.20 per DLH
1b. Computation of Unit Product Cost
Xactive Pathbreaker
Direct material $64.00 $50.20
Direct Labor $17.40 $12.20
Manufacturing overhead ((1.4, 1)*$19.20) $26.88 $19.20
Unit product cost $108.28 $81.60
Before month-end adjustments are made, the February 28 trial balance of Neutral Milk Hotel contains revenue of $7,000 and expenses of $4,400. Adjustments are necessary for the following items: Depreciation for February is $1,800. Revenue recognized but not yet billed is $2,700. Accrued interest expense is $700. Revenue collected in advance that is now recognized is $2,500. Portion of prepaid insurance expired during February is $400.InstructionsCalculate the correct net income for Neutral Milk Hotel’s Income Statement for February.
Answers
Answer: $4,900
Explanation:
Net income will be:
= (Revenue + Revenue recognized but not yet billed + Revenue collected in advance that is now recognized) - Expenses - Depreciation - Accrued interest expense - Portion of prepaid insurance for the month
= (7,000 + 2,700 + 2,500) - 4,400 - 1,800 - 700 - 400
= $4,900
Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $5 per unit. Minor currently produces and sells 7,500 units at $6.00 each. This level represents 75% of its capacity. Production costs for these units are $4.50 per unit, which includes $3.00 variable cost and $1.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,000 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. Should the company accept the special order?
A. No, because additional production would exceed capacity.
B. No, because incremental costs exceed incremental revenue.
C. No because incrementa conse o Yes, because incremental revenue exceeds incremental costs.
D. Yes, because incremental costs exceed incremental revenues.
E. No, because the incremental revenue is too low.
Answers
Answer:
D. Yes, because incremental costs exceed incremental revenues.
Explanation:
Given that
The Selling price of the order is $5
The Variable cost of manufacturing is $3
The Contribution per unit is $2
The Number of units is 1500
now
Total contribution
= 1500 × $2
= $3,000
Less: Machine costs ($1000)
Tota incremental revenue $2,000
As the incremental revenue is positive and exceeds the incremental cost so the special order can be accepted
Bella, Inc. manufactures two kinds of bagstotes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are$25,750. Additional estimated information is given below. Totes Satchels Direct materials cost per unit $33 $44Direct labor cost per unit $52 $60Number of units 520 370Calculate the pre-determined overhead allocation rate.
Answers
Answer:
See below
Explanation:
Given that estimated overhead costs for the year = $25,750
Bagstotes:
Direct materials cost per unit = $33
Direct labor cost per unit = $52
Number of units = 520
Satchels
Direct materials cost per unit = $44
Direct labor cost per unit = $60
Number of units = 370
Estimated direct labor =
(Direct labor cost per unit × No of units) of totes + (Direct labor cost per unit × No of units) of Satchels
= ($52 × 520) + ($60 × 370)
= $27,040 + $22,200
= $29,240
Predetermine overhead allocation rate:
= Estimated overhead / Estimated direct labor × 100
= $25,750 / $29,240 × 100
= 88.06%
Gray, Stone, and Lawson open an accounting practice on January 1, 2016, in San Diego, California, to be operated as a partnership. Gray and Stone will serve as the senior partners because of their years of experience. To establish the business, Gray, Stone, and Lawson contribute cash and other properties valued at $410,000, $340,000, and $170,000, respectively. An articles of partnership agreement is drawn up. It has the following stipulations:
Personal drawings are allowed annually up to an amount equal to 10 percent of the beginning capital balance for the year.
Profits and losses are allocated according to the following plan:
1. A salary allowance is credited to each partner in an amount equal to $8 per billable hour worked by that individual during the year.
2. Interest is credited to the partners’ capital accounts at the rate of 12 percent of the average monthly balance for the year (computed without regard for current income or drawings).
3. An annual bonus is to be credited to Gray and Stone. Each bonus is to be 10 percent of net income after subtracting the bonus, the salary allowance, and the interest. Also included in the agreement is the provision that there will be no bonus if there is a net loss or if salary and interest result in a negative remainder of net income to be distributed.
4. Any remaining partnership profit or loss is to be divided evenly among all partners.
Because of financial shortfalls encountered in getting the business started, Gray invests an additional $9,200 on May 1, 2016. On January 1, 2017, the partners allow Monet to buy into the partnership. Monet contributes cash directly to the business in an amount equal to a 20 percent interest in the book value of the partnership property subsequent to this contribution. The partnership agreement as to splitting profits and losses is not altered upon Monet’s entrance into the firm; the general provisions continue to be applicable. The billable hours for the partners during the first three years of operation follow:
2016 2017 2018
Gray 2,020 4,200 2,130
Stone 1,680 2,300 1,860
Lawson 3,700 1,620 1,550
Monet 0 1,430 1,820
The partnership reports net income for 2016 through 2018 as follows:
2016 $98,000
2017 (44,400)
2018 236,000
Each partner withdraws the maximum allowable amount each year.
A. Determine the allocation of income for each of these three years.
B. Prepare in appropriate form a statement of partners’ capital for the year ending December 31, 2018.
Answers
Answer:
thast way too long for just 10 points
Explanation:
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trên cơ sở lý thuyết nhóm hãy chọn một công ty hiện kinh doanh tại thị trường việt nam, dòng sản phẩm tiêu dùng, phân tích thực trạng:
- chiến lược điều chỉnh giá của công ty
- chiên lược chủ động thay đổi giá
Answers
Answer:
es la coma estate should be your answer
Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2,000 uncollectible account of its customer, A Hopkins. The entry or entries Gideon makes to record the write off of the account on May 3 is:________.
a. Accounts Receivable. A-Hopkins 2000
Allowance for Doubtful Accounts 2000
b. Allowance for Doubtful Accounts 2000
Bad debts expense 2000
c. Accounts Receivable A-hopkins 2000
Bad debts expense 2000
d. Accounts Receivable A Hopkins 2000
Allowance for Doubtful Accounts 2000
e. Allowance for Doubtful Accounts 2000
Accounts receivables A-Hopkins 2000
Answers
Answer:
e. Debit Allowance for Doubtful Accounts $2,000
Credit Accounts receivables A-Hopkins $2,000
Explanation:
When a company use the allowance method of accounting for uncollectible accounts, the company would actively review and book bad debt expenses for any debt in doubt of collection. The entry would be; Debit Bad debt expenses, Credit Allowance for doubtful debt
However, where there is sufficient evidence that these debts goes into default, no more expenses would be recorded , instead
Dr. Allowance for doubtful debt $2,000
Cr. Account receivable $2,000
(To record written off receivables)
A company enters a futures contract to sell 50,000 units of a commodity for 70 cents per unit. The initial margin is $4,000 and the maintenance margin is $3,000. What change in the futures price (per unit) would lead to a margin call?
Answers
Answer:
72 cents
Explanation:
There is going to be a margin call when greater than 1000 dollars has been lost from the margin. Then the balance in the account is going to be smaller than that of the maintenance margin. so 1 cent increase in the price would bring about a lossof
0.01 * 50000
= $500
if the increase in the future price is about 2 cents then there would be a margin call.
70+2 = 72cents, this is when there would be a margin call
Define and explain SMART?
Answers
Categorize each scenario as describing a movement along a demand curve or a shift of the demand curve.
a. College students rush and buy discount furniture to take advantage of a one-day sale
b. Students eat out more often as the federal government increase how much grant money it provides
c. College students reduce how detergent they for each of laundry response to higher detergent prices.
d. College students purchase many more energy drinks during finals week than during the rest of the semester.
Answers
Answer:
a, a movement along a demand curve
b. shift of the demand curve.
c. a movement along a demand curve
d. shift of the demand curve.
Explanation:
Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.
Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :
1. a change in consumers' expectation
2. a change in the taste of consumers
3. a change in income
a. A discount would reduce the price of furniture, as a result the quantity demanded would increase. There would be a movement down along the demand curve.
b. As a result of the increase in grant, the income of students increase. this would lead to an increase in demand. the demand curve would shift outward
c. As a result of higher prices, the quantity demanded of detergents would reduce. This would lead to a movement up along the demand curve for detergents
d. An increase in demand for energy drinks is as a result of a change in taste. this would lead to an outward shift of the demand curve
