Answer:
b. All collections for sales are received immediately upon making the sales.
Explanation:
Internal control, regarded as a process used in assuring objective of an organization in operational effectiveness as well as efficiency and reliable financial reporting, it is also used in assuring of compliance with laws as well as regulations and policies. Generally, internal control can be described as everything which is able to controls risks to an organization. It is a way the
resources of an organization are been
measured as well as been directed and monitored.
It should be noted that Internal control procedures for cash receipts require that:.
✓Custody over cash is kept separate from its recordkeeping.
✓Clerks having access to cash in a cash register should not have access to the register tape or file.
✓An employee with no access to cash receipts should compare the total cash recorded by the register with the record of cash receipts reported by the cashier.
✓Cash sales should be recorded on a cash register at the time of each sale
Project 1 requires an original investment of $125,000. The project will yield cash flows of $50,000 per year for 10 years. Project 2 has a computed net present value of $135,000 over an eight-year life. Project 1 could be sold at the end of eight years for a price of $8,000. (a) Using the present value tables in Exhibits 2 and 5, determine the net present value of Project 1 over an eight-year life, with residual value, assuming
Answer: $126,613
Explanation:
Net Present value of Project A is:
= Present value of $50,000 annuity + Present value of residual value - Initial investment
Present value of $50,000 annuity:
= 50,000 * ( 1 - ( 1 + rate)^-number of periods) / rate
= 50,000 * ( 1 - ( 1 + 12%) ⁻⁸) / 12%
= $248,382
Present value of residual value:
= 8,000 / ( 1 + 12%)⁸
= $3,231
Net present value
= 248,382 + 3,231 - 125,000
= $126,613
A firm has taxes of $2,000, interest expense of $1,000, EBIT of $7,500, common stock dividends of $1,500, and preferred dividends of $1,200. What is the profit margin if sales are $22,000
Answer:
the profit margin is 15%
Explanation:
The computation of the profit margin is shown below:
= (EBIT - interest - taxes - preferred dividend) ÷ Sales
= ($7,500 - $1,000 - $2,000 - $1,200) ÷ $22,000
= $3,300 ÷ $22,000
= 15%
Hence, the profit margin is 15%
Basically the above formula should be applied for the same
You are selling an asset. you can earn an interest rate of 7% per yer on your savings. You receive the following two (risk less) offers:
Offer 1: receive $400,000 today
Offer 2: Receive $500,000 in 4 years
a. Which offer should you choose?
b. At what interest rate would you be indifferent between the two offers?
Answer:
Option 1
5.737126344%
Explanation:
to determine which option i would prefer today, i would need to determine the present value of offer 2
Present value is the sum of discounted cash flows
[tex]\frac{500,000}{1.07^{4} }[/tex] = $381,447.61
I would prefer the first option because its present value is greater than that of option 2
The interest rate that would make me indifferent between either options would be the interest at which the present value of $500,000 in 4 years is $400,000
$400,000 = [tex]\frac{500,000}{(1 + x)^{4} }[/tex]
$400,000[tex](1 + x)^{4}[/tex] = $500,000
500,000 / 400,000= (1 + x)^{4}
1.25 = (1 + x)^{4}
[tex]1.25^{0.25}[/tex] = 1 + x
x = 5.737126344%
An analysis of the income statement revealed that interest expense was $100000. Waterway Company's times interest earned was
Answer: 8.3
Explanation:
The times interest earned is used to estimate the ability of a company to pay its debt payments using income from operations.
It is calculated by the formula:
= Earnings before interest and tax / Interest expense
Earnings before interest and tax:
= Earnings before tax + Interest expense
= 730,000 + 100,000
= $830,000
Times interest earned:
= 830,000 / 100,000
= 8.3
Before reconciling its bank statement, Lauren Cosmetics Corporation's general ledger had a month-end balance in the cash account of $8,250. The bank reconciliation for the month contained the following items:Deposits in transit $870Outstanding checks 645Interest earned 20NSF check returned to bank 220Bank service charge 70Given the above information, what up-to-date ending cash balance should Lauren report at month-end?A. $7,380.B. $8,530.C. $7,980.D. $7,700.
Answer:
a. $7,380
Explanation:
Ending cash balance = Cash balance + Interest earned - NSF check returned to bank - Bank service charge
Ending cash balance = $8,250 + $20 - $220 - $70
Ending cash balance = $7,980
So, $7,380 is the up-to-date ending cash balance should Lauren report at month-end.
How does the current organizational and operational structure, including the system of corporate governance, benefit the firm
Answer:
The organizational and operational structure of a company must be aligned with the core values and objectives of the business, as it impacts and determines the relationships and culture in the organizational environment.
Therefore, when there is an organizational structure where the hierarchical positions and the decision-making system match the way the company operates in the market, it is correct to say that such organization has a culture that enables its development and the correct progress of the business. Combined with corporate governance, which is a system of inspection, control and incentive to interested parties, the company will benefit from being well structured, positioned and oriented to achieve quality and continuous process improvement.
Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $910. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 310 Units sold 280 Units in ending inventory 30 Variable costs per unit: Direct materials $ 130 Direct labor $ 350 Variable manufacturing overhead 50 Variable selling and administrative 40 Fixed costs: Fixed manufacturing overhead $ 62,000 Fixed selling and administrative $ 26,000 The absorption costing income statement prepared by the company’s accountant for last year appears below: Sales $ 254,800 Cost of goods sold 204,400 Gross margin 50,400 Selling and administrative expense 37,200 Net operating income 13,200Required:1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.Total fixed manufacturing overhead in ending inventory: ?2. Prepare an income statement for the year using variable costing.
Answer:
1. 6,000
2. 7,200
Explanation:
1. Calculation to determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.
Using this formula
Ending inventory=Fixed manufacturing overhead/Units produced*Ending units
Let plug in the formula
Ending inventory=62,000/310*30
Ending inventory=6,000
Therefore how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period is 6,000
2. Preparation of an income statement for the year using variable costing.
IDA SIDHA KARYA Company Variable Costing Income Statement
Units produced cost (130+350+50=530)
Sales $254,800
(280*910)
VARIABLE EXPENSES:
Variable cost of goods sold $148,400
(280*530)
Variable selling and administrative expense $11,200
(280*40)
Contribution margin $95,200
($254,800-$148,400-$11,200)
FIXED EXPENSES:
Fixed manufacturing overhead $62,000
Fixed selling and administrative expense $26,000
Net operating income $7,200
($95,200-$62,000-$26,000)
Therefore the income statement for the year using variable costing is $7,200
Journalize the following sales transactions for Antique Mall. Explanations are not required. The company estimates sales returns at the end of each month.
Jan. 4 Sold $14,000 of antiques on account, credit terms are n/30. Cost of goods is $7,000.
8 Received a $400 sales return on damaged goods from the customer. Cost of goods damaged is $150.
13 Antique Mall received payment from the customer on the amount due from Jan. 4, less the return.
20 Sold $4,900 of antiques on account, credit terms are 1/10, n/45, FOB destination. Cost of goods is $2,450.
20 Antique Mall paid $70 on freight out.
29 Received payment from the customer on the amount due from Jan. 20, less the discount.
Answer:
Antique Mall
Journal Entries:
Jan. 4 Debit Accounts Receivable $14,000
Credit Sales Revenue $14,000
credit terms are n/30.
Debit Cost of goods sold $7,000
Credit Inventory $7,000
Jan. 8 Debit Sales Returns $400
Credit Accounts Receivable $400
Debit Damaged Goods $150
Credit Cost of goods sold $150
Jan. 13 Debit Cash $13,600
Credit Accounts Receivable $13,600
Jan. 20 Debit Accounts Receivable $4,900
Credit Sales Revenue $4,900
credit terms are 1/10, n/45, FOB destination.
Debit Cost of goods sold $2,450
Credit Inventory $2,450
Jan. 20 Debit Freight-out Expense $70
Credit Cash $70
Jan. 29 Debit Cash $4,851
Debit Cash Discounts $49
Credit Accounts Receivable $4,900
Explanation:
a) Data and Analysis:
Jan. 4 Accounts Receivable $14,000 Sales Revenue $14,000
credit terms are n/30.
Cost of goods sold $7,000 Inventory $7,000
Jan. 8 Sales Returns $400 Accounts Receivable $400
Damaged Goods $150 Cost of goods sold $150
Jan. 13 Cash $13,600 Accounts Receivable $13,600
Jan. 20 Accounts Receivable $4,900 Sales Revenue $4,900
credit terms are 1/10, n/45, FOB destination.
Cost of goods sold $2,450 Inventory $2,450
Jan. 20 Freight-out Expense $70 Cash $70
Jan. 29 Cash $4,851 Cash Discounts $49 Accounts Receivable $4,900
Moonbeam Company manufactures toasters. For the first 8-months of 2017, the company reported the following operating results while operating at 75% of plant capacity:
Sales (350,000 units) $4,375,000
Cost of goods sold 2,600,000
Gross profit 1,775,000
Operating expenses 840,000
Net income $935,000
Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam receives a special order for 21,600 toasters at $8.12 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,100 of shipping costs but no increase in fixed costs.
Required:
a. Prepare an incremental analysis for the special order.
b. Should Moonbeam accept the special order? Why or why not?
Answer:
Moonbeam Company
a. Incremental Analysis:
Sales revenue:
Units of toasters (21,600 at $8.12) $175,392
Variable costs (21,600 * $7.12) 153,792
Shipping costs 3,100
Total incremental costs $156,892
Incremental net income $18,500
b. Moonbeam should accept the special order. It has the required capacity to deliver the additional toasters. It will generate an incremental income of $18,500, which is better than nothing.
Explanation:
a) Data and Calculations:
Sales (350,000 units) $4,375,000
Cost of goods sold 2,600,000
Gross profit 1,775,000
Operating expenses 840,000
Net income $935,000
Operating capacity = 75%
Current sales = 350,000
Plant capacity = 466,667 units (350,000/75%)
Total Per Unit
Sales (350,000 units) $4,375,000 $12.50
Variable cost of goods sold = 1,820,000 ($2,600,000 * 70%)
Variable operating expense = 672,000 ($840,000 * 80%)
Total variable costs = $2,492,000 $7.12
Net income = $1,883,000
Special Order:
Incremental Sales revenue
Units of toasters (21,600 at $8.12) $175,392
Variable costs (21,600 * $7.12) 153,792
Shipping costs 3,100
Total incremental costs $156,892
Incremental net income $18,500
Viviano Corporation issued a new bond, and hired your bank as its underwriter. In an upcoming talk with its CFO, you are expected to explain the effect of market interest rate. An increase in the market rate of interest will have which one of the following effects on this bond?
a. increase the coupon rate
b. decrease the coupon rate
c. increase the market price
d. decrease the market price
e. increase the time period
Answer: d. decrease the market price
Explanation:
Interest rates and the prices of bonds are negatively correlated as one increasing means that the other is decreasing.
The reason is this: when market interest rates rise, investors will move away from bonds to other investments because bonds offer a fixed payment and so will be less attractive than other investments which would be offering higher returns based on the higher market rates.
The drop in demand for bonds will lead to their prices falling as per the rules of demand and supply.
The DEF partnership reported net income of $130,000 for the year ended December 31, 20X8. According to the partnership agreement, partnership profits and losses are to be distributed as follows in the following order:
D Â Â Â Â Â Â Â Â Â Â Â Â EÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â F
Salaries               $25,000            $20,000        $15,000
Bonus on net income        10%                       -----                -----
Remainder            60%            30%         10%
Required:
How should partnership net income for 2008 be allocated to D, E, and F?
Answer:
The DEF Partnership
Allocation of Partnership Net Income for 2008:
D E F Total
Net income $130,000
Salaries $25,000 $20,000 $15,000 (60,000)
Bonus on net income 13,000 ----- ----- (13,000)
Remainder 34,200 17,100 5,700 (57,000)
Total allocation $72,200 $37,100 $20,700 $130,000
Explanation:
a) Data and Calculations:
Net income for the year ended December 31, 2008 = $130,000
Order of distribution of partnership profits and losses:
D E F
Salaries $25,000 $20,000 $15,000
Bonus on net income 10% ----- -----
Remainder 60% 30% 10%
Bonus on net income = $13,000 ($130,000 * 10%)
Remainder after salaries and bonus = $57,000 ($130,000 - $73,000)
D = $34,200 ($57,000 * 60%)
E = $17,100 ($57,000 * 30%)
F = $5,700 ($57,000 * 10%)
An accounting system that provides information that management can use to evaluate the performance of a department's activities is a:______.
A. Service accounting system.
B. Standard accounting system.
C. Revenue accounting system.
D. Departmental accounting system.
E. Cost accounting system.
Answer: D. Departmental accounting system.
Explanation:
As the term implies, Departmental accounting system engages in accounting for individual departments. The financial information of the department of interest will be recorded as well as other activities.
Management will then use this information to analyze and understand how well the department is doing. The information will also tell them if the department is being cost efficient and profitable.
Gary is walking through his organization's buying process and has identified some additional steps that are needed in a B2B transaction. What would be included in those additional steps
Answer: order-routine specification
problem recognition
Explanation:
Business-to-business transactions occur when a business makes a transaction with another business. It should be noted that this takes place when the business is sourcing materials which will be used for their production process.
Since Gary is walking through his organization's buying process and has identified some additional steps that are needed in a B2B transaction, the additional steps should include the order-routine specification and the problem recognition.
New educational study has proven that the practice of writing, erasing, and rewriting improves students' ability to process information, leading parents to steer away from pen use in favor of pencils.
a. True
b. False
A company purchased office supplies costing $5,000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $900 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be: debit Supplies Expense, $4,100; credit Supplies, $4,100. debit Supplies, $4,100; credit Supplies Expense, $4,100. debit Supplies Expense, $5,900; credit Supplies, $5,900. debit Supplies, $900; credit Supplies Expense, $900.
Answer:
Debit Supplies Expense, $4,100; Credit Supplies, $4,100
Explanation:
Based on the information given The appropriate adjusting journal entry to be made at the end of the period would be:Debit Supplies Expense, $4,100; Credit Supplies, $4,100
Debit Supplies Expense $4,100
Credit Supplies $4,100
($5,000-$900)
Consider the following project network and activity times (in weeks): Activity A B C D E F G H Time 5 3 7 6 7 3 10 8 How much time will be needed to complete this project
Answer:
Please find the attached file of the complete question:
Explanation:
Please find the attached file of the solution:
Critical Path: ACH
Duration: 21
Because C is on the Critical Path, it cannot be postponed without causing the project to be delayed.
E is not on the critical path, thus it may also be delayed by two weeks without causing the project to be delayed.
[tex]D : ES : 6, EF : 10, LS : 7, LF : 11[/tex]
A sole proprietorship is: Select one: A. the easiest type of business to set up B. the least profitable type of business to set up C. the most expensive type of business to set up D. the most difficult type of business to set up.
Answer:
it is an easiest type of business to set up because it requires small capital to start but has many disadvantages such as bearing all the risks alone.etc
implications of game theory
Answer:
Game Theory is a general mathematical analysis to investigate the strategic interactions among players. Game theorists attempt to provide precise descriptions of situations of conflicting interests in order to study the behavior that such a conflict would (or, in some cases, should) elicit from rational agents. Players are assumed to consider the position and perceptions of other players while forming their strategies. In our examples, we will assume that there are two players, and that each has two choices and the fact that the players are selfish (operate in their own best interests) and rational .
Limitations of Game Theory :
The biggest issue with game theory is that, like most other economic models, it relies on the assumption that people are rational actors that are self-interested and utility-maximizing. Of course, we are social beings who do cooperate and do care about the welfare of others, often at our own expense. Game theory cannot account for the fact that in some situations we may fall into a Nash equilibrium, and other times not, depending on the social context and who the players are.
As the number of people holding college degrees increases, assuming the demand for college educated labor stays constant, the wages of college educated people would
Answer:
decrease
Explanation:
An increase in the supply of people with college degrees would lead to a rightward shift of the supply curve. This leads to a decrease in equilibrium wages and an increase in labour
Assuming that all entries have been posted, prepare correcting entries for each of the following errors.
a. The following entry was made to record the purchase of $774 in supplies on account:
Supplies 142 774
Cash 101 774
b. The following entry was made to record the payment of $475 in wages:
Rent Expense 521 475
Cash 101 475
c. The following entry was made to record a $396 payment to a supplier on account:
Supplies 142 196
Cash 101 196
Answer and Explanation:
The correcting journal entries are shown below:
a. Cash Dr $774
To account payable $774
(Being purchase of supplies on account is recorded)
b. Wages expense Dr $475
To rent expense $475
(Being wages expense is recorded)
c. Account payable $396
To Supplies $196
To cash $200
(being cash paid is recorded)
These 3 correcting entries should be recorded
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $217,500 of total manufacturing overhead for an estimated activity level of 87,000 machine-hours. Required: 1. Assume that during the year the company works only 82,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T-accounts. 2A. Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account.
Question Completion:
Manufacturing Overhead Account
Maintenance $24,000
Indirect materials 8,300
Indirect labor 82,000
Utilities 36,000
Insurance 7,300
Depreciation 65,000
Total costs $222,600
Work in Process
Direct materials $740,000
Direct labor 83,000
Answer:
Harwood Company
1. The amount of overhead cost that would be applied to Work in Process for the year is:
= $205,000.
2. T- Accounts:
Work in Process
Direct materials $740,000
Direct labor 83,000
Applied overhead 205,000
Manufacturing overhead
Maintenance $24,000
Indirect materials 8,300
Indirect labor 82,000
Utilities 36,000
Insurance 7,300
Depreciation 65,000
Applied overhead: WIP $205,000
Underapplied overhead 17,600
Total costs $222,600 $222,600
2A. The amount of underapplied overhead for the year is:
= $17,600
2B. Manufacturing overhead
Maintenance $24,000
Indirect materials 8,300
Indirect labor 82,000
Utilities 36,000
Insurance 7,300
Depreciation 65,000
Applied overhead: WIP $205,000
Underapplied overhead 17,600
Total costs $222,600 $222,600
Explanation:
a) Data and Calculations:
Predetermined overhead rate per machine-hour = $2.50
Estimated total manufacturing overhead = $217,500
Estimated activity level = 87,000
Actual results from production during the year:
Machine-hours worked = 82,000
Applied overhead costs = $205,000 (82,000 * $2.50)
Total manufacturing costs incurred = $222,600
Underapplied overhead = $17,600
A company reported the following asset and liability balances at the end of 2015 and 2016:
2015 2016
Assets $150,000 $180,000
Liabilities $70,000 $80,000
If the company paid dividends totaling $5,000, what is the amount of net income for 2016?
A. $20,000.B. $105,000.C. $80,000.D. $25,000.
Answer:
D. $25,000
Explanation:
The equity is the difference between assets and liabilities
Opening equity=$150,000-$70,000
opening equity=$80,000
Ending equity=$180,000-$80,000
ending equity=$100,000
The ending equity formula below can be used to derive the net income for 2016:
ending equity=beginning equity+ net income-dividends
The net income increases the amount of ending equity while dividends decrease it.
net income=unknown
dividends=$5000
$100,000=$80,000+net income-$5000
net income=$100,000-$80,000+$5,000
net income=$25,000
9. Suppose Betty saves $200 each month in her 401(k) account. How much less will her monthly take-home pay be than if she saved nothing? (Assume a combined 20% state and federal income tax rate.)
Answer:
$160
Explanation:
The way 401(k) savings work is that employees can save from their earnings before tax is deducted, which means that on the $200 saved no tax is deducted, hence, the take of the employee reduces by $200
When there are savings, a tax of 20% would have been deducted from the $200, as a result, the employee would be left with $160($200-($200*20%)), which means that take-home would reduce by $40, the amount tax deducted.
The reduction in take-home=$200-$40
The reduction in take-home=$160
Gantner Company had the following department information about physical units and percentage of completion: Physical Units Work in process, May 1 (60%) 60000 Completed and transferred out 180000 Work in process, May 31 (40%) 50000 If all materials are added at the beginning of the production process, what is the total number of equivalent units for materials during May
Answer:
200,000 units by Weighted Average Cost Method
164,000 units by FIFO Method
Explanation:
1. Where Weighted Average Cost Method is used.
Assuming that Gantner Company uses the Weighted Average Cost Method, the total number of equivalent units for materials during May can be determined as follows :
Completed and transferred out (180000 x 100) 180,000
Ending Work In Process (50000 x 40%) 20,000
Total equivalent units for materials 200,000
1. FIFO Method is used.
Assuming that Gantner Company uses the FIFO Cost Method, the total number of equivalent units for materials during May can be determined as follows :
To Complete Opening Work in Process (60000 x 40%) 24,000
Completed and transferred out (180000 - 60,000) x 100% 120,000
Ending Work In Process (50000 x 40%) 20,000
Total equivalent units for materials 164,000
On January 1, a machine with a useful life of 5 years and a salvage value of $15000 was purchased for $115000. What is the depreciation expense for year 2 under straight-line depreciation
Answer:
Annual depreciation (year 2)= $20,000
Explanation:
Giving the following information:
Purchase price= $115,000
Salvage value= $15,000
Useful life= 5 years
To calculate the annual depreciation under the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (115,000 - 15,000) / 5
Annual depreciation= $20,000
From 1990 to 2000, calculate the percentage change in Instructions: Enter your responses rounded to one decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Real GDP. % b. Real consumption. % c. Real government spending
Answer:
Note The full question is attached as picture below
1. Real consumption % change = ((Consumption in 2009 / Consumption in 2007) - 1) * 100
Real consumption % change = ((9847 / 10042) - 1) * 100
Real consumption change % = (0.981 - 1) * 100
Real consumption change% = -1.9%
2. Real investment % = ((Investment in 2009 / 2007) - 1) * 100
Real investment % = ((1898 / 2644) - 1) * 100
Real investment % = (0.718 - 1) * 100
Real investment % = -28.2%
3. Government spending % = ((Government spending 2009 / 2007) - 1)*100
Government spending % = ((3089 / 2914) - 1)*100
Government spending % = (1.06 - 1) * 100
Government spending % = 6%
Russell Retail Group begins the year with inventory of $62,000 and ends the year with inventory of $52,000. During the year, the company has four purchases for the following amounts.
Purchase on February 17 $217,000
Purchase on May 6 137,000
Purchase on September 8 167,000
Purchase on December 4 417,000
Required:
Calculate cost of goods sold for the year.
Answer:
Cost of goods sold = 948000
Explanation:
Inventory at the beginning of the year = $62000
Inventory at the end of the year = $52000
Cost of goods sold = Beginning inventory + purchases during the year - ending inventory
Cost of goods sold = $62000 + 217000 + 137000 + 167000 + 417000 - $52000
Cost of goods sold = 948000
[The following information applies to the questions displayed below.] Pacific Ink had beginning work-in-process inventory of $744,960 on October 1. Of this amount, $304,920 was the cost of direct materials and $440,040 was the cost of conversion. The 48,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs. During October, 102,000 units were transferred out and 30,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $2,343,600 for direct materials and $3,027,840 for conversion.
Required:
a. Compute the equivalent units for the materials and conversion cost calculations.
b. Compute the cost per equivalent unit for direct materials and for conversion costs using the weighted-average method.
Answer:
Pacific Ink
a. The equivalent units for materials and conversion costs are:
Materials Conversion
Equivalents units 126,000 114,000
b. The cost per equivalent unit for direct materials and for conversion costs using the weighted-average method are:
Cost per equivalent unit $21.02 $30.42
Explanation:
a) Data and Calculations:
Materials Conversion Total
Work in process, Oct. 1 $304,920 $440,040 $744,960
Costs incurred in October 2,343,600 3,027,840 5,371,440
Total costs of production $2,648,520 $3,467,880 $6,116,400
Units:
Work in process, Oct. 1 48,000 (30%) 48,000 (30%)
Units transferred out 102,000 (100%) 102,000 (100%)
Work in process, Oct. 31 30,000 (80%) 30,000 (40%)
Equivalent units of production:
Units transferred out 102,000 (100%) 102,000 (100%)
Work in process, Oct. 31 24,000 (80%) 12,000 (40%)
Total equivalent units 126,000 114,000
Cost per equivalent units:
Total costs of production $2,648,520 $3,467,880 $6,116,400
Total equivalent units 126,000 114,000
Cost per equivalent unit $21.02 $30.42
Which per unit cost does the slope of the total cost line represent? Group of answer choices Fixed Variable. Semivariable Step-variable
Answer: Variable cost
Explanation:
The slope of a regression line is meant to represent the change in the total variable or y, as a result of a change in the number of independent observations or x.
The cost that changes during production as a result of an increase in x which is the volume of products, is the variable cost so it is the slope of the total cost line,
Slope of total cost line:
y = mx + c
y = total cost
m = variable cost. m is also slope.
x = production volume
c = fixed cost
g dividends paid 13500. what was the net income for the past year of the firm faces a tax rate of 30%
Answer:
A.) £27,214.29
B.) £19,250
Step-by-step explanation:
Given the following :
Andy £13500
Bevan £27500
Cheryl £13250
Deva £75000
Elliott £18750
Frankie £27500
Grace £15000
Mean income = (total sum of salaries / number of workers)
Mean income = £(13500 + 27500 + 13250 + 75000 + 18750 + 27500 + 15000) / 7
Mean income = (£190,500 / 7) = £27,214.286
B.) mean income excluding Deva's salary:
Mean income = Mean income = £(13500 + 27500 + 13250 + 18750 + 27500 + 15000) / 7
Mean income = £115,500 / 6
Mean income = £19,250
