JG Asset Services is recommending that you invest $1,275 in a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures

Answers

Answer 1

Answer:

The amount that will be received when CD matures is $1514.30

Explanation:

To calculate the amount that will be received at the maturity of the CD, we simply need to calculate the future value of the invested amount using annual compounding. The formula for the future value that we will use is,

Future value = Present value * (1+r)^t

Where,

r is the rate of interestt is the time in years

Future value = 1275 * (1+0.035)^5

Future value = $1514.30


Related Questions

the gross sales for store B were 876500. the custmer returns and allowances were 10%. what was the dollar amount of returns and allowances

Answers

Answer:

$87,650

Explanation:

The computation of the dollar amount of returns and allowances  is shown below:

= Gross sales for store B × customer returns and allowances percentage

= $876,500 × 10%

= $87,650

By multiplying the gross sales with the customer returns and allowances percentage we can get the dollar amount with respect to the returns and allowances and the same is to be considered

"The flexible budget formula is fixed costs $50,000 plus variable costs of $4 per direct labor hour. What is the total budgeted cost at (a) 9,000 hours and (b) 12,345 hours

Answers

Answer:

$86,000 and $99,380

Explanation:

The flexible budget formular is fixed at $50,000 plus variable costs

The direct labor hour is $4 per hour

The total budgeted cost at 9,000 hours can be calculated as follows

= $50,000 + ($4×9,000 hours)

= $50,000 + $36,000

= $86,000

The total budgeted cost at 12,345 hours can be calculated as follows

= $50,000 + ( $4×12,345 hours)

= $50,000 + $49,380

= $99,380

Hence the total budgeted cost at 9,000 hours and 12,345 hours is $86,000 and $99,380 respectively

A producer can produce a product at a variable cost per unit of $7. The producer can sell the product for $10 each. If the fixed cost is $60,000.

Required:
a. How many units must the producer sell to break-even?
b. What is revenue at 35,000 units?
c. What is total cost at 35,000 units?
d. How many units must the producer sell in order to earn a profit of $60,000?

Answers

Answer:

a.

Break even in units = 20000 units

b.

Revenue at 35000 units = $350000

c.

Total cost (35000 units) = $305000

d.

Units required for target profit = 40000 units

Explanation:

a.

The break even in units is the number of units that must be sold in order to earn enough total revenue as to cover total costs. The break even in units can be calculated as follows,

Break even in units = Fixed cost / Contribution margin per unit

Where,

Contribution margin per unit = Selling price per unit - Variable cost per unit

Contribution margin per unit = 10 - 7 =$3

Break even in units = 60000 / 3

Break even in units = 20000 units

b.

Revenue = Price * Quantity

Revenue at 35000 units = 10 * 35000

Revenue at 35000 units = $350000

c.

Total cost = Variable cost + Fixed cost

Total cost (35000 units) = 7 * 35000 + 60000

Total cost (35000 units) = $305000

d.

To calculate the units required to earn a target profit, we simply add the target profit amount to the fixed costs in the break even in units equation.

Thus, the number of units required to earn a target profit of $60000 is,

Units required for target profit = (60000 + 60000) / 3

Units required for target profit = 40000 units

During 2021, Deluxe Leather Goods issued 797,000 coupons which entitles the customer to a $4.50 cash refund when the coupon is submitted at the time of any future purchase. Deluxe estimates that 75% of the coupons will be redeemed. 420,000 coupons had been processed during 2021. Deluxe recognizes coupon expense in the period coupons are issued. At December 31, 2021, Deluxe should report a liability for unredeemed coupons of:

Answers

Answer:

Deluxe should report a liability for un-redeemed coupons of 799,875

Explanation:

Estimated coupons to be redeemed     597,750

(797,000 * 75%)

Less: Coupons redeemed                     420,000

Coupons un-redeemed                          177,750

X Cost per Coupon                                   4.50    

Liability for un-redeemed Coupons  799,875  

Based on the following information, what is the expected return? State of Probability of State Rate of Return if Economy of Economy State Occurs Recession .29 − 9.70% Normal .40 11.20% Boom .31 21.40% Multiple

Answers

Answer:

g

Explanation:

g

Bramble Corp. receives $360,000 when it issues a $360,000, 8%, mortgage note payable to finance the construction of a building at December 31, 2020. The terms provide for annual installment payments of $60,000 on December 31. Prepare the journal entries to record the mortgage loan and the first two payments.

Answers

Answer:

The First Payment occurs on 31 December 2021 as :

Mortgage Payable $31,200 (debit)

Interest Expense $28,800 (debit)

Cash $60,000 (credit)

The Second Payment occurs on 31 December 2022 as :

Mortgage Payable $33,696 (debit)

Interest Expense $26,304 (debit)

Cash $60,000 (credit)

Explanation:

First prepare an amortization schedule using the following data concerning the mortgage note :

Hint : Determine the number of years, N of this bond.

PV = $360,000

PMT = - $60,000

P/Yr = 1

r = 8 %

FV = 0

N = ?

The length of the bond, N is 8.4969 or 9 years

The First Payment occurs on 31 December 2021 as :

Mortgage Payable $31,200 (debit)

Interest Expense $28,800 (debit)

Cash $60,000 (credit)

The Second Payment occurs on 31 December 2022 as :

Mortgage Payable $33,696 (debit)

Interest Expense $26,304 (debit)

Cash $60,000 (credit)

Luther Corporation
Consolidated Income Statement
Year ended December 31​ (in $millions)
2006 2005
Total sales 610.1 578.8
Cost of sales ​ (500.2) ​(355.3)
Gross profit 109.9 223.5
​Selling, general, and
administrative expenses ​ (40.5) ​(38.7​)
Research and development ​(24.6) (21.8​)
Depreciation and amortization ​(3.6) (3.9​)
Operating income 41.2 159.1
Other income −− −−
Earnings before interest and taxes​ (EBIT) 41.2 159.1
Interest income​ (expense) ​(25.1) ​(15.3​)
Pretax income 16.1 143.8
Taxes ​(5.5) (50.33​)
Net income 10.6 93.47
Price per share $16 $15
Sharing outstanding​ (millions) 10.2 8.0
Stock options outstanding​ (millions) 0.3 0.2
​Stockholders' Equity 126.6 63.6
Total Liabilities and​ Stockholders' Equity 533.1 386.7
Refer to the income statement above. ​ Luther's operating margin for the year ending December​ 31, 2005 is closest​ to:_________.
A. 13.7413.74​%
B. 21.9921.99​%
C. 27.4927.49​%
D. 32.9932.99​%

Answers

Answer:

27.48%

Explanation:

Calculation for Luther's operating margin for the year ending December​ 31, 2005

Using this formula

Operating margin = Operating income / Sales

Let plug in the formula

Operating margin= 159.1/578.8

Operating margin=0.2748*100

Operating margin=27.48%

Therefore Luther's operating margin for the year ending December​ 31, 2005 is 27.48%

Which of the following enables employees to deliver valuable results more quickly, improve their productivity, and get products and new ideas to market faster?a. Adhering to time-tested methods and conceptsb. Preventing the dissemination of explicit knowledgec. Avoiding collaboration among contractors, suppliers, and other business partnersd. Sharing experience and expertise of employees across an organization

Answers

Answer:

d. Sharing experience and expertise of employees across an organization

Explanation:

It is important for an organization to allow its employees to share and build experience and expertise. Workers reap the moment more quickly when there is no office and what it does and when new employees or employees moving to new positions are able to share ideas and experiences. It allows employees to deliver more valuable results faster, improve productivity and deliver market products and new ideas faster.

Bonita Industries is planning to sell 1000 boxes of ceramic tile, with production estimated at 470 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.50 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $11 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Bonita has 3900 pounds of clay mix in beginning inventory and wants to have 3700 pounds in ending inventory. What is the total amount to be budgeted for direct labor for the month

Answers

Answer: $2,585‬

Explanation:

Total budgeted amount for direct labor;

Production is estimated at 470 boxes.

Each box requires 0.5 hours of direct labor

Employees are paid $11 per hour.

= 470 * 0.5 * 11

= $2,585‬

The Doha Round of negotiations focuses on industrial and nontariff barriers, agriculture, services, and easing trade rules.
a. True
b. False

Answers

Answer:

True.

Explanation:

The Doha Round of negotiations focuses on industrial and non-tariff barriers, agriculture, services, and easing trade rules. It is a trade negotiation which is common among the world trade organizations (WTO) member countries. The main purpose of the Doha Round of negotiations is to enhance the international trading process through the application of revised trade rules and lower trade barriers.

This trade-negotiation round of the World Trade Organization was officially launched in November, 2001 in Doha, Qatar.

A product with an MSRP of CNY 15.00 has a promotion allowance of 15%. How much will the distributor receive in promotion allowance for each unit

Answers

Answer: CNY 2.25

Explanation:

Promotional Allowances are discounts in price that the producers/ supplies of a product will offer to trade partners like distributors to get them to promote their products so that they sell faster.

The promotion allowance here is 15% of the Manufacturer's Suggested Retail Price of CNY 15.00 which is;

= 15% * 15

= CNY 2.25

A corporation uses the indirect method for preparing the statement of cash flows. A fixed asset has been sold for $24,241 representing a gain of $3,478. The value in the operating activities section regarding this event would be

Answers

Answer:

($3,478)

Explanation:

The above means that the amount of gain on sale of fixed asset should be deducted from net income so as to get the cash flow from the operating activities because it is an increase in net income for the period under review.

It is to be noted that where non cash expense such as depreciation is given, such will be added back while non cash revenue is deducted to arrive at the net cash flow from operating activities.

We are evaluating a project that costs $874,800, has a nine-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 85,000 units per year. Price per unit is $55, variable cost per unit is $39, and fixed costs are $765,000 per year. The tax rate is 24 percent, and we require a return of 11 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent.

Calculate the best-case and worst-case NPV figures

Answers

Answer:

best case scenario:

project outlay = $874,800

yearly cash flows:

projected sales = 85,000 x 110% = 93,500sales price = $55 x 110% = $60.50variable costs = $39 x 90% = $35.10fixed costs = $765,000 x 90% = $688,500depreciation costs = $874,800 / 9 = $97,200tax rate = 24%

yearly cash flows = {[(93,500 x $60.50) - (93,500 x $35.10) - $688,500 - $97,200] x (1 - 24%)} + $97,200 = $1,304,992

using a financial calculator, NPV = $6,351,002.73

worst case scenario:

project outlay = $874,800

yearly cash flows:

projected sales = 85,000 x 90% = 76,500sales price = $55 x 90% = $49.50variable costs = $39 x 110% = $42.90fixed costs = $765,000 x 110% = $841,500depreciation costs = $874,800 / 9 = $97,200tax rate = 24%

yearly cash flows = {[(76,500 x $49.50) - (76,500 x $42.90) - $841,500 - $97,200] x (1 - 24%)} + $97,200 = -$232,488

using a financial calculator, NPV = -$2,071,211.79

On January 1, 2017, Shay issues $390,000 of 8%, 20-year bonds at a price of 97.00. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount.Required:Prepare the journal entry to record the bond retirement at January 1, 2023.

Answers

Answer:

Journal entry to record the bond retirement at Jan 1, 2023

Bond payable Dr $78,000

Loss on redemption Dr $5,265

Discount on bonds payable Cr $1,755

Cash. Cr 81,510

Explanation:

Bonds issued at 97%

$390,000 × 97%

= $378,300

Discount difference between cash proceeds and face value

= $390,000 -$378,300

= $11,700

If bonds are discounted using straight line,

$11,700 ÷ 20 year

= $585

At 2022, there is 5 amortization

= $585 × 5

= $2,925

Discount value

= $11,700 - $2,925

= $8,775

Carrying value

= $390,000 - $8,775

= $381,225

Therefore, $390,000 bonds payable × 20% × 104.5%

= $81,510

Carrying book value of 20%

$381,225 × 20%

= $76,245

Loss on redemption

= $81,510 - $76,245

= $5,265

Therefore,

20% of the face value

= $390,000 × 20%

= $78,000

20% of the discount

= $8,775 × 20%

= $1,755

Loss on redemption = $5,265

Cash disbursement = $81,510

What is the annual real estate tax on a property valued at $135,000 and assessed for tax purposes at $47,250, with an equalization factor of 125%, when the tax rate is 25 mills

Answers

Answer:

$1,477

Explanation:

The annual real estate tax = assessed tax × equalization factor × tax rate

= $47,250 × 125% × 25 mills

= $47,250 × 125% × 2.5%(25 mills)

= $47,250 × 1.25 × 0.025

= $1,477

A self-employed client has an annual income of $200,000 and is in a high tax bracket. He is not covered by a retirement plan and would like to make the maximum contribution to one to reduce his taxable income. He believes that he will be in a lower tax bracket once he retires. The BEST recommendation is to contribute to a:

Answers

Answer:

Simplified Employee Pension IRA (SEP)

Explanation:

Simplified employee pension IRA is most suitable for this client because it is easy to set up and operate. Most importantly it requires a maximum of 20% of the contributor's income. The amount required is capped at $54,000.

In this case 20% of the employee's income is 0.20 * 200,000 = $40,000

So this is a right fit.

Roth IRA will not work because maximum contribution is $5,500

Traditional IRA will also not work because it requires a maximum contribution of $5,500 or when it is a 401(k) plan a maximum of $18,000. It is also expensive to set up and operate as it is designed for big companies.

light sweet petroleum, inc., is trying to evaluate a generation project with cash flows:________.
year Cash Flow
0 -38,600,000
1 62,600,000
2 - 11,600,000
a-1 What is the NPV for the project if the company requires a return of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
NPV _______
a-2 Should the company accept this project?
A. Yes
B. Nο
b. This project has two IRR's, namely _______ percent and ______ percent, in order from smallest to largest. (Note: If you can only compute one IRR value, you should input that amount into both answer boxes in order to obtain some credit.) (A negative answer should be indicated by a minus sign.

Answers

Answer:

a-1. NPV for the project is $8,381,576.17

a-2. A. Yes. Accept the Project.

b.  40.84 % and  40.84 %

Explanation:

The Net Present Value can be determined using a Financial Calculator as follows :

-38,600,000    CFj

62,600,000    CFj

- 11,600,000     CFj

11 %                   I/YR      

Shift NPV        $8,381,576.17        

A Company should accept projects that have a positive Net Present Value.Therefore, Accept this project.

Calculation of the Internal Rate of Return using a Financial Calculator :

-38,600,000    CFj

62,600,000    CFj

- 11,600,000     CFj

Shift IRR           40.84 %

Suppose that on August 14, 2019, an antique woven rug handmade in Canada is priced at CAD 1,100. The approximate U.S. dollar price of the rug would be

Answers

Answer:

USD 825.95

Explanation:

Step one:

To tackle this problem we need data from historical chart.

From historical chart, on August 14, 2019, 1 USD  is equivalent to CAD 1.3318

Step two:

From the historical data we need to perform conversion on the data to get the USD equivalent of the CAD given in the problem

Hence

if 1 USD = CAD 1.3318  then

x USD   =  CAD 1,100

by cross multiplying we have

x USD=  1,100/ 1.3318

x USD= 825.95

Hence as at  August 14, 2019  CAD 1,100 is USD 825.95

Assume that a purely competitive firm has the following schedule of average and marginal costs:
Output AFC AVC ATC MC
1 $300 $100 $400 $100
2 150 75 225 50
3 100 70 170 60
4 75 73 148 80
5 60 80 140 110
6 50 90 140 140
7 43 103 146 180
8 38 119 156 230
9 33 138 171 290
10 30 160 190 360
Instructions: Enter all values as whole numbers. If any values are negative, please enter them with a (-) sign.
a) At a price $55, the firm would produce ____ units of output. At a price of $120, the firm would produce ____ units of output. At a price of $200, the firm would produce ____ units of output.
b) The per-unit economic profit (or loss) is calculated by subtracting at a particular level of output from the product price. This per-unit economic profit is then multiplied by the number of units of ___ to determine the economic profit for the competitive firm.
i) At the product price of $200, the average total costs are $____, so per-unit economic profit is
$____. Multiplying this amount by the number of units of output results in an economic
profit of $____.
ii) At the product price of $120, the average total costs are $____, so per-unit economic losses are $____. Multiplying this amount by the number of units of output results in an economic loss of $____.

Answers

Answer:

a) At a price $55, the firm would produce 3 units of output.

At a price of $120, the firm would produce 6 units of output.

At a price of $200, the firm would produce 7 units of output.

The rule is Price = Marginal Cost for a competitive firm

b) The per-unit economic profit (or loss) is calculated by subtracting ATC at a particular level of output from the product price. This per-unit economic profit is then multiplied by the number of units of output to determine the economic profit for the competitive firm.

i) At the product price of $200, the average total costs are $146 , so per-unit economic profit is $54 . Multiplying this amount by the number of units of output results in an economic profit of $378 .

Explanation:

At P = 200, output produced is 7 units

ATC is $146

Per-unit economic profit = 200 - 146 = $54

Hence, Total economic profit = $54 x 7 = $378

ii) At the product price of $120, the average total costs are $140 , so per-unit economic losses are $ -20. Multiplying this amount by the number of units of output results in an economic loss of $-100.

Explanation: At P = 20, output produced will be 5 units. 6th unit will not be produced as it will result in even greater loss.

Total loss = ($140 - $120) x 5 = $100

XARA is a newly emerging wine company. After extensive market research, XARA divides its market into wine enthusiasts, casual drinkers and restaurants. Each category has its own needs, traits and marketing goals. In this scenario, XARA has engaged in market _________.

Answers

Answer: segmentation

Explanation:

Market segmentation is when a business market that is made up of different customers is being divided, into smaller groups or segments based on some characteristics.

From the question, we are informed that XARA is a newly emerging wine company. After extensive market research, XARA divides its market into wine enthusiasts, casual drinkers and restaurants. Each category has its own needs, traits and marketing goals. In this scenario, XARA is using market segmentation.

Market research is a systematic attempt to acquire data about target markets and customers: learn everything you can about them, starting with their names. It is considered as the crucial part of business strategy.

XARA is a newly emerging wine company. After extensive market research, XARA divides its market into wine enthusiasts, casual drinkers and restaurants. Each category has its own needs, traits and marketing goals. In this scenario, XARA is using market segmentation.

Market segmentation is when a business market that is made up of different customers is being divided, into smaller groups or segments based on some characteristics.

To know more about Market, refer to the link:

https://brainly.com/question/13959285

If sales are $803,000, variable costs are 66% of sales, and operating income is $262,000, what is the contribution margin ratio

Answers

Answer:

34%

Explanation:

The formula to calculate the contribution margin ratio is:

Contribution margin ratio= (Sales – variable expenses)/sales

Sales=$803,000

Variable expenses=$803,000*66%=$529,980

Now, you can replace the values:

Contribution margin ratio=($803,000-$529,980)/$803,000

Contribution margin ratio=0.34

According to this, the answer is that the contribution margin ratio is 34%.

Burpee Company sells seeds to garden stores. Sales are expected to be $2,038,635 in January, $2,581,891 in February and $2,913,307 in March. Burpee sets their prices so that they earn an average 32% gross profit on sales revenue. What is budgeted cost of goods sold for the first quarter (January, February and March)?

Answers

Answer:

Total COGS= $5,123,006.44

Explanation:

Giving the following information:

Sales:

January= $2,038,635

February= $2,581,891

March= $2,913,307

Burpee sets their prices so that they earn an average 32% gross profit on sales revenue.

We need to calculate the cost of goods sold:

January= 2,038,635*0.68= 1,386,271.8

February= 2,581,891*0.68= 1,755,685.88

March= 2,913,307*0.68= 1,981,048.76

Total COGS= $5,123,006.44

Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attempt to sell the merchandise, and in return, Mogul will pay to Ski Outfit a commission of 25% of the selling price on any merchandise sold. During the year, Mogul ships inventory with a cost of $81,000 to Ski Outfit and pays shipping costs of $8,700. By the end of the year, $61,000 of the merchandise has been sold to customers for a total of $86,000. Mogul allocates $6,500 of the shipping costs to inventory sold and the other $2,200 to inventory not sold. Mogul also paid advertising costs during the year of $10,500. What amount of inventory will Mogul report at year end

Answers

Answer:

$22,200

Explanation:

With regards to the above information Mogul company,

Cost of goods

= $81,000 + $8,700

= $89,700

= $61,000 + $6,500

= $67,500

Inventory = Cost of goods - Cost of goods sold

= $89,700 - $67,500

= $22,200

It therefore means that the amount of inventory Magu company will report at the year end is $22,200

Deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well, is referred to as

Answers

Answer:

loss leader pricing strategy

Explanation:

The type of strategy that is being described is known as a loss leader pricing strategy. This is a pricing strategy in which a product is sold at a price below its market cost in order to be able to stimulate other sales of more profitable goods or services. In such a scenario, the "leader" product is any popular item that the company is selling, and this item is the one that receives the price cut in order to attract customers that were already interested in it to the other products.

Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows:
A. Estimated sales for July by sales territory:
Maine:
Backyard Chef 310 units at $700 per unit
Master Chef 150 units at $1,200 per unit
Vermont:
Backyard Chef 240 units at $750 per unit
Master Chef 110 units at $1,300 per unit
New Hampshire:
Backyard Chef 360 units at $750 per unit
Master Chef 180 units at $1,400 per unit
B. Estimated inventories at July 1:
Direct materials:
Grates 290 units
Stainless steel 1,500 lbs.
Burner subassemblies 170 units
Shelves 340 units
Finished products:
Backyard Chef 30 units
Master Chef 32 units
C. Desired inventories at July 31:
Direct materials:
Grates 340 units
Stainless steel 1,800 lbs.
Burner subassemblies 155 units
Shelves 315 units
Finished products:
Backyard Chef 40 units
Master Chef 22 units
D. Direct materials used in production:
In manufacture of Backyard Chef:
Grates 3 units per unit of product
Stainless steel 24 lbs. per unit of product
Burner subassemblies 2 units per unit of product
Shelves 4 units per unit of product
In manufacture of Master Chef:
Grates 6 units per unit of product
Stainless steel 42 lbs. per unit of product
Burner subassemblies 4 units per unit of product
Shelves 5 units per unit of product
E. Anticipated purchase price for direct materials:
Grates $15 per unit
Stainless steel $6 per lb.
Burner subassemblies $110 per unit
Shelves $10 per unit
F. Direct labor requirements:
Backyard Chef:
Stamping Department 0.50 hr. at $17 per hr.
Forming Department 0.60 hr. at $15 per hr.
Assembly Department 1.00 hr. at $14 per hr.
Master Chef:
Stamping Department 0.60 hr. at $17 per hr.
Forming Department 0.80 hr. at $15 per hr.
Assembly Department 1.50 hrs. at $14 per hr.
Required:
1. Prepare a sales budget for July. Gourmet Grill Company Sales Budget For the Month Ending July 31 Product and Area Unit Sales Volume Unit Selling Price Total Sales Backyard Chef: Maine 310 700 217,000 Vermont 240 750 180,000 New Hampshire 360 750 270,000 Total 910 667,000 Master Chef: Maine 150 1,200 180,000 Vermont 110 1,300 143,000 New Hampshire 180 1,400 252,000 Total 440 575,000 Total revenue from sales 1,242,000
2. Prepare a production budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Gourmet Grill Company Production Budget For the Month Ending July 31 Units Backyard Chef Master Chef Expected units to be sold 910 440 Desired inventory, July 31 40 22 Total units available 950 462 Estimated inventory, July 1 -30 -32 Total units to be produced 920 430
3. Prepare a direct materials purchases budget for July.
Gourmet Grill Company
Direct Labor Cost Budget
For the Month Ending July 31
Stamping Department
Forming Department
Assembly Department
Total Hours required for production:
Backyard Chef
Master Chef
Total Hourly rate
Total direct labor cost

Answers

Answer:

Gourmet Grill Company

1. Sales Budget For the Month Ending July 31

Product             Area Unit               Sales       Unit Selling                 Total

                                                      Volume         Price           Sales

Backyard Chef: Maine                     310              $700      $217,000

                         Vermont                240                750        180,000

                         New Hampshire   360                750        270,000

                         Total                            910                                     667,000

Master Chef:    Maine                    150              1,200         180,000

                         Vermont                110              1,300         143,000

                         New Hampshire   180              1,400       252,000

                         Total                           440                                    575,000

Total revenue from sales                                                         $1,242,000

2. Gourmet Grill Company Production Budget For the Month Ending July 31 Units

Units                                Backyard Chef           Master Chef       Total

Expected units to be sold        910                          440               1,350

Desired inventory, July 31         40                            22                   62

Total units available                950                          462                1,412

Estimated inventory, July 1      -30                           -32                   62

Total units to be produced    920                          430               1,350

3. Gourmet Grill Company

Direct Labor Cost Budget

For the Month Ending July 31

                                                  Stamping        Forming       Assembly

                                Units        Department   Department  Department

Backyard Chef        920            460 hrs           552 hrs         920 hrs            Master Chef            430            258 hrs           344 hrs          645 hrs

Total Hours required

 for production:                          718 hrs           896 hrs      1,565 hrs

Total Hourly rate                        $17                  $15                $14                    

Total direct labor cost           $12,206         $13,440          $21,910

Explanation:

1) Data:

A. Estimated sales for July by sales territory:

Maine:

Backyard Chef 310 units at $700 per unit

Master Chef 150 units at $1,200 per unit

Vermont:

Backyard Chef 240 units at $750 per unit

Master Chef 110 units at $1,300 per unit

New Hampshire:

Backyard Chef 360 units at $750 per unit

Master Chef 180 units at $1,400 per unit

B. Estimated inventories at July 1:

Direct materials:

Grates 290 units

Stainless steel 1,500 lbs.

Burner subassemblies 170 units

Shelves 340 units

Finished products:

Backyard Chef 30 units

Master Chef 32 units

C. Desired inventories at July 31:

Direct materials:

Grates 340 units

Stainless steel 1,800 lbs.

Burner subassemblies 155 units

Shelves 315 units

Finished products:

Backyard Chef 40 units

Master Chef 22 units

D. Direct materials used in production:

In manufacture of Backyard Chef:

Grates 3 units per unit of product

Stainless steel 24 lbs. per unit of product

Burner subassemblies 2 units per unit of product

Shelves 4 units per unit of product

In manufacture of Master Chef:

Grates 6 units per unit of product

Stainless steel 42 lbs. per unit of product

Burner subassemblies 4 units per unit of product

Shelves 5 units per unit of product

E. Anticipated purchase price for direct materials:

Grates $15 per unit

Stainless steel $6 per lb.

Burner subassemblies $110 per unit

Shelves $10 per unit

F. Direct labor requirements:

Backyard Chef:

Stamping Department 0.50 hr. at $17 per hr.

Forming Department 0.60 hr. at $15 per hr.

Assembly Department 1.00 hr. at $14 per hr.

Master Chef:

Stamping Department 0.60 hr. at $17 per hr.

Forming Department 0.80 hr. at $15 per hr.

Assembly Department 1.50 hrs. at $14 per hr.

b) Calculations:

                                                  Stamping        Forming       Assembly

                                Units        Department   Department  Department

Backyard Chef           1                  0.50 hr             0.60 hr       1.00 hr

Total hours required  920            460 hrs            552 hrs      920 hrs                               

Master Chef                1                0.60 hr             0.80 hr         1.50 hrs

Total hours required  430            258 hrs            344 hrs        645 hrs

Total Hours required

 for production:                             718 hrs            896 hrs     1,565 hrs

c) Gourmet Grill Company's Sales, Production, and Direct Labor Budgets for July detail the sales units under different product categories and areas.  They will guide the management of Gourmet Grill company to make relevant decisions with regard to inventories, production, and sales volume that must be achieved in order to realize the budgets and attin company's objectives.  They are very essential in planning, decision making, and control.  Based on these budgets, performances will be reviewed, analyzed, and accordingly rewarded.

Rally Quadcopters plans to sell a standard quadcopter (toy drone) for $45 and a deluxe quadcopter for $65. Rally purchases the standard quadcopter for $35 and the deluxe quadcopter for $45. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $14,700. How many of each type of quadcopter must Rally sell monthly to breakeven?
To earn $10,500?
First identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach.

Answers

Answer:

Rally must sell 1,080 units of Standard and 720 units of Deluxe

Explanation:

                                                  Standard       Deluxe        Total

Sales price per unit                      $45                $65

Less: Variable cost                      ($35)              ($45)

Contribution Margin per  unit       $10                $20

Sales Mix units  (A)                        $3                  $2                $5

Contribution margin                      $30                $40             $70

Weighted average Contribution                                              $14    

per unit C= B/A

Appointment of fixed cost between standard and deluxe

Total Fixed cost = 14,700

Break even point = Fixed cost / Weighted average Contribution  per unit

= 14,700 / 14

= 1,050

Apportionment of Break even point sales between Standard and deluxe in sales mix ratio (3:2)

Standard = 1,050 * 3/5 = 630

Deluxe = 1,050 * 2/3 = 420

Unit to be sold to get desired profit = Fixed cost + Desired profit / Weighted average Contribution per unit

= (14,700 + 10,500) / 14

= 1,800

Apportionment of Units to be sold to get desired profit between Standard and Deluxe in sales mix ratio (3:2)

Standard = 1,800 * 3/5 = 1,080

Deluxe = 1,800 * 2/5 = 720

To reach target operating income, Rally must sell 1,080 units of Standard and 720 units of Deluxe

Consider the WACC formula, if the required rate of return on preferred stock increases, holding all else equal, the WACC increases.
a) true
b) false

Answers

Answer: True

Explanation:

The Weighted Average Cost of Capital (WACC) calculates the cost of capital to a company for the means of capital it uses to finance operations. It is based on the cost and the weight of the various capital types.

Formula is;

= Cost of Equity * %Equity + Cost of debt * %Debt * ( 1 - Tax rate) + Cost of Preferred Stock * %Preferred stock

The required rate of return on preferred stock is the same as the Cost of Preferred Stock. From the formula it is shown that if this rate increases, holding all else equal, total WACC will increase.

There is a 3 percent defect rate at a specific point in a production process. If an inspector is placed at this point, all the defects can be detected and eliminated. The inspector would cost $8 per hour and could inspect units in the process at the current production rate of 30 per hour. If no inspector is hired and defects are allowed to pass this point, there is a cost of $10 per defective unit to correct the defects later on. Assume that the line will operate at the same rate (i.e., the current production rate) regardless of whether the inspector is hired or not. a. If an inspector is hired, what will be the inspection cost per unit? (Round your answer to 3 decimal places.) Cost per unit $ b. If an inspector is not hired, what will be the defective cost per unit? (Round your answer to 3 decimal places.) Cost per unit $ c. Should an inspector be hired based on costs alone? Yes No

Answers

Answer:

1a. $2.67 cost per unit

1b. $0.3 cost per unit

1c. Yes

Explanation:

1a. Calculation for what will be the inspection cost per unit If an inspector is hired

The following details were given in the question.

Defective average =3/100= 0.03

inspection rate = 30 per hour

Cost of inspector = 8 per hour

Correction cost = $10 each

Using this formula

Hired inspector =Cost per hour/Current production rate per hour

Let plug in the formula

Hired inspector=8 per hour/30 rate per hour

Hired inspector =0.267×100

Hired inspector=$2.67 cost per unit

1b. Calculation for what will be the defective cost per unit If an inspector is not hired

Using this Formula

No inspector=Defect rate %/Cost per defective

Let plug in the formula

No inspector= 3/100×$10

No inspector= $0.3 cost per unit

1c. Based on the above calculation the inspector should be hired.

A company's Office Supplies account shows a beginning balance of $720 and an ending balance of $640. If office supplies expense for the year is $3,700, what amount of office supplies was purchased during the period

Answers

Answer:

Purchases= $3,620

Explanation:

Giving the following information:

Beginning inventory= $720

Ending inventory= $640

Purchase= ?

Used in the period= $3,700

To calculate the purchases, we need to use the following formula:

Purchases= used in the period + desired ending inventory - beginning inventory

Purchases= 3,700 + 640 - 720

Purchases= $3,620

Wilson Tech’s production cost data for the current period is: Beginning work in process inventory: 19,000 units Units transferred out: 9,800 units Ending work in process inventory: 6,200 units All materials are entered at the beginning of the process and conversion costs are incurred uniformly throughout the process. The ending work in process units are 40% complete as to conversion costs. What are the equivalent units of production for conversion costs?

Answers

Answer:

the equivalent units of production for conversion costs is 12,280.

Explanation:

Calculation of the equivalent units of production for conversion costs.

Units transferred out (9,800 × 100 %)                           = 9,800

Units of ending work in process (6,200 × 40%)           = 2,480

Equivalent units of production for conversion costs    =12,280

Other Questions
What is the slope and the y-intercept of the line on the graph below? On a coordinate plane, a line goes through points (0, 1) and (4, 0). I need Helpppp quick!!!! According to Quantifiers, if we say I dont have any sugar left How much suggar do I have Which equation represents the line that is perpendicular to y=1/4 and passes through (-6,-9)? IyWhat is the domain of the function f(x) = 3|x + 4[ + 1?ca4+3-2-1+O all real numbersO all real numbers less than or equal to -4O all real numbers greater than or equal to 1O all real numbers greater than or equal to -4-7-5-53-2-115.6X2.2Y16 A librarian needs to package up all of the children's books and move them to a different location in the library. There are 625 books, and she can fit 25 books in one box. How many boxes does she need in order to move all of the books? 5 B. 25 C. 125 D. 600 E. 650 Estimate the solution to the system of equations. Mandy and Pat are discussing a movie that showed someone being injured by radio waves. Mandy says that's not likely becauseradio waves are low frequency and low energy, and Pat says that it is likely because otherwise they would not put it in a movie.What is the best way to help them decide if the information is true?They can write a letter to the director.Movies are reliable sources, so they can assume Pat is correct.They can use reliable web sites or books to get more information.They can watch another movie in the series to see what happens next. -18 = -3x + 6 can anybody help me solve this problem Help us plazz this is mathematics IGCSE fast as you can how might US society be different if the makeup of its population changes solve 15x+8x+1 2x-y B is the midpoint of AC. What is the value of x if AC = 52 and AB = 3x - 4 A __________ infrastructure is made available to the general public or a large industrygroup and is owned by an organization selling cloud services.a. community cloudb. hybrid cloudc. public cloudd. private cloud Hellllppp!!!! Please!Match the numbers with the correct label. Johnny and Steven ate a 12-piece pizza. If Johnny ate 3/4 of the pizza, how many pieces did Steven eat? * In a pluralistic society, special interest groups have a right to which of the following? Select all that apply. 1. ignore legislation on behalf of small business 2. lobby the White House for a higher tax on the wealthiest 1% 3. testify in court on behalf of immigrants 4. get a Senator to introduce legislation to ensure healthcare for Hispanic children 5. meet with Congressional leaders to ask for the protection of religious minorities What is the median of the data represented in the box plot shown in the image? A. 15 B. 25 C. 35 D. 45 Show all work! Which graph represents a function? If f(x)=ax+b and f(2)=1 and f(-3)=11, what is the value of A?