Journalize the following transactions assuming the perpetual inventory system:
July 3 Sold merchandise on account for $3,750 terms.
The cost of the goods sold was $2,000. July 5 Issued credit memo for $1,050 for merchandise returned from sale on July 3. The cost of the merchandise returned was $610. July 12 Received check for the amount due for sale on July 3 less return on July 5. July 17 Sold merchandise for $7,000 plus 6% sales tax to cash customers. The cost of the goods sold was $3,830.

Answers

Answer 1

Answer:

General Journal

Perpetual Inventory system

Date              Particulars                          Debit             Credit

July 3            Account Receivable        $3,750

                                                  Sales                         $3,750

Sold merchandise on account for $3,750 terms.

                        Cost of Goods Sold      $ 2000

                                 Merchandise Inventory            $2000

The cost of the goods sold was $2,000.

July 5         Sales Returns             $1,050

                                     Account Receivable         $1,050

Issued credit memo for $1,050 for merchandise returned from sale on July 3.

         

              Merchandise Inventory            $610

                                           Cost of Goods Sold      $ 610

The cost of the merchandise returned was $610.

July 12              Bank (cash)                  $2700

                                Account Receivable                 $2700

Received check for the amount due for sale on July 3 less return on July 5. ($3,750-  $1,050 )=$2700

July 17                      Cash                  $ 7420

                                        Sales                              $ 7420

Sold merchandise for $7,000 plus 6% sales tax to cash customers. As sales tax is added to the sales  a combined entry is made . ( 6%* 7000= $ 420)

                       Cost of Goods Sold      $ 3830

                                 Merchandise Inventory            $3830

The cost of the goods sold was $3,830.

Answer 2

Answer:

Please see the Journal entries below.

Explanation:

July 3

Debit: Accounts Receivables $3,750

Debit: Cost of Goods Sold $2,000

         Credit: Sales Revenue $3,750

         Credit: Inventory $2,000

To record sales on Account.

July 5:

Debit: Sales Revenue $1,050

Debit: Inventory $610

         Credit: Cost of Goods Sold $610

         Credit: Accounts Receivables $1,050

To record credit memo.

July 12

Debit: Cash ($3,750 - $1,050) $2,700

         Credit: Accounts Receivables $2,700

To record payment of sales.

July 17

Debit: Accounts Receivables $7,420

Debit: Cost of Goods Sold $3,830

         Credit: Sales Revenue $7,000

         Credit: Sales Tax Payable $420

         Credit: Inventory $3,830

To record sales and cost of goods sold.


Related Questions

According to an article in the Wall Street Journal​, KB Home and other builders found demand for new houses increasing in 2017 as a result of an increase in the formation of new households. In the long​ run, formation of new households depends on population growth. ​Source: Laura Kusisto and Sarah​ Chaney, "U.S. Housing Starts Fell in April for Third Time in Four​ Months," Wall Street Journal​, May​ 16, 2017. Are firms like homebuilders that sell products whose demand depends partly on demographic factors likely to be more or less affected by the business cycle than are other firms whose products are less dependent on these factors​ (holding constant other factors that affect the demand for new​ houses)? Briefly explain.

Answers

Answer:

Generally speaking, demographic growth can affect the economy quite a lot, but the economy has a very little effect on demographic growth. E.g. the baby boomers were great for the economy during several decades, but there is no clear relationship between population growth and economic activity.

This means that companies like home builders whose demand depends on other factors besides the economy, will be less affected by economic recessions or expansions. E.g. the demographic growth in America was around 0.7% during 2019 and the economy was growing that year.

Actually, the US population has been declining over the last decades. The real growth factor in population has been immigration in the last decades, and that has also been declining lately.

Whitmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.07 direct labor-hours. The direct labor rate is $9.00 per direct labor-hour. The production budget calls for producing 4,200 units in February and 4,700 units in March. Required: Prepare the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round "labor-hours per unit"

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Each unit of output requires 0.07 direct labor-hours. The direct labor rate is $9.00 per direct labor-hour. The production budget calls for producing 4,200 units in February and 4,700 units in March.

Direct labor budget of February:

Direct labor hours= 4,200*0.07= 294

Direct labor cost= 294*9= $2,646

Direct labor budget of March:

Direct labor hours= 4,700*0.07= 329

Direct labor cost= 329*9= $2,961

Which of the following statements is correct with respect to inventories? The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold. It is generally good business management to sell the most recently acquired goods first "Under FIFO, the ending inventory is based on the latest units purchased." FIFO seldom coincides with the actual physical flow of inventory.

Answers

Answer:

Under FIFO, the ending inventory is based on the latest units purchased.

Explanation:

First in, first out inventory (FIFO) method values cost of goods sold using the purchase price of the "oldest" units in inventory. This means that the cost of the first units sold will be used to determine COGS.

On the other hand, last in, first out (LIFO) method uses the price of the most recently purchased units to determine the cost of goods sold.

(Ignore income taxes in this problem.) James just received an $8,000 inheritance check from the estate of his deceased uncle. James wants to set aside enough money to pay for a trip in five years. If the trip is expected to cost $5,000 and the rate of return is 12 percent per year, how much of the $8,000 must James deposit now to have the $5,000 in five years

Answers

Answer:

  $2837.13

Explanation:

The account value is multiplied by 1 +12% = 1.12 each year, so at the end of 5 years, it will have been multiplied by 1.12^5. For some investment P, we want ...

  5000 = P×1.12^5

  5000/1.12^5 = P ≈ $2837.13

James must deposit about $2837.13 now to have the required amount in 5 years.

Companies within the oneworld, Star, and Sky Team alliances have also engaged in major mergers and acquisitions (M&A): American and US Air (oneworld), Delta and Northwest (Sky Team), and Continental and United (Star). What are the advantages and disadvantages of M&A versus non-equity alliances in this industry? 15-4. Some airlines, such Daniels, John. International Business (p. 425). Pearson Education. Kindle Edition.

Answers

Answer:

Check the explanation

Explanation:

Merger and acquisition. It is a general terminology used to mention consolidation of firms merger that takes place when two businesses join together to form a new organization.

While Acquisition is the buying of one firm by another company.

The following are the benefits of merger and acquisition in the airlines industry:

• Executes economies of scale

• Help obtain coordination effect

• Competitors restriction

• Improved resources allocation

The following are the drawbacks of merger and acquisition in the airlines industry:

• Cultural mismatch among companies during merger

•Antitrust

• Placing risk of acquired workers  

The MoMi Corporation’s income before interest, depreciation and taxes, was $2.7 million in the year just ended, and it expects that this will grow by 5% per year forever. To make this happen, the firm will have to invest an amount equal to 15% of pre tax cash flow each year. The tax rate is 30%. Depreciation was $330,000 in the year just ended and is expected to grow at the same rate as the operating cash flow. The appropriate market capitalization rate for the unlevered cash flow is 12% per year, and the firm currently has debt of $5 million outstanding. Use the free cash flow approach to calculate the value of the firm and the firm’s equity. (Enter your answer in dollars not in millions.)

Answers

Answer:

1. The value of the firm is $23,760,000

2. The value of the equity is $18.76m

Explanation:

In order to calculate the value of the firm we would have to use the following formula:

Value of firm = FCF1 / (r - g) = FCF0 x (1 + g) / (r - g)

Operating Cash Flows (OCF) = (EBITDA - Depreciation) x (1 - tax) + Depreciation

= (2,700,000 - 330,000) x (1 - 30%) + 330,000

= $1,989,000

Free Cash Flow (FCF) = OCF - Investment

We know that investment = 15% of EBITDA = 15% x 2,700,000 = 405,000

Current FCF = 1,989,000 - 405,000 = 1,584,000

Therefore, Value of the firm = 1,584,000 x (1 + 5%) / (12% - 5%) = $23,760,000

To calculate the value of equity we would have to use the following formula:

Value of equity = Value of Firm - Value of Debt = 23.76 - 5 = $18.76m

Answer:

Value of the firm                          $ 14550000.

Value of the firm's equity            $ 11550000.

Explanation:

Cash flow from operations = $ 1785000 (1700000 + 5 % of 1700000).

Depreciation = $ 241500. (230000 + 5 % of 230000).

Taxable income = $ 1543500 (1785000 - 241500)

Net income (after tax) = 1543500 - 30 % of 1543500 = $ 1080450.

Cash flow from operations (after tax) = 1080450 + 241500 (Depreciation, being non cash expense). = $ 1321950.

Free cash flow available = Cash flow from operations (after tax) - Income from investment.

= 1321950 - (1700000 * 17 % * 1.05)

= 1321950 - 303450.

= $ 1018500.

Value of the firm = Free cash flow available / (Capitalization rate - Growth rate)

= 1018500 / (0.12 - 0.05)

= 1018500 / 0.07

= $ 14550000.

Value of the firm's equity = Total value of firm - Value of debt of firm

= 14550000 - 3000000

= $ 11550000.

Conclusion :-

Value of the firm                          $ 14550000.

Value of the firm's equity            $ 11550000.

Computer Service and Repair was started five years ago by two college roommates. The company’s comparative balance sheets and income statement are presented below, along with additional information. Current Year Prior Year Balance Sheet at December 31 Cash $ 6,765 $ 8,815 Accounts receivable 1,150 590 Prepaid expenses 550 95 Equipment 530 0 Accumulated depreciation (95 ) 0 $ 8,900 $ 9,500 Wages payable $ 440 $ 1,550 Short-term note payable 255 0 Common stock 2,800 2,800 Retained earnings 5,405 5,150 $ 8,900 $ 9,500 Income Statement for Current Year Service revenue $ 43,000 Depreciation expense 95 Salaries expense 34,500 Other expenses 8,150 Net income $ 255 Additional Data: a. Prepaid expenses relate to rent paid in advance. b. Other expenses were paid in cash. c. Purchased equipment for $530 cash at the beginning of the current year and recorded $95 of depreciation expense at the end of the current year. d. At the end of the current year, the company signed a short-term note payable to the bank for $255. Required: Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.)

Answers

Answer:

Explanation:

Cash Flow Statement For the year ended December 31, Current Year:

Particulars                                                     Amount

Cash Flow from Operating Activities  

Net income                                                                  255

Add: Non-cash Charges  

Depreciation expense                                                   95

Less: Increase in W.Capital  

Accounts receivable                                                -560

Prepaid expenses                                                        -455

Wages payable                                                        -1110

Short-term note payable                                         255

Net Cash used in Operating Activities                       -1520

Cash Flow from Investing Activities  

Purchase of equipment                                               -530

Net Cash used in Investing Activities  

Cash Flow from Investing Activities NIL

Net cash Used during the year                              -2050

Opening cash and cash equivalent                        8815

Closing cash and cash equivalent                       6765

Which of the following are considered to be benefits of international trade? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Higher prices for domestic firms in industries with the highest level of imports unanswered More jobs in industries with a significant number of imports unanswered The ability to purchase goods produced abroad at lower prices than the domestic good unanswered Access to new resources that are not available domestically unanswered The ability to purchase new products that are not produced domestically

Answers

Answer:

1. Access to new resources that are not available domestically.

2. The ability to purchase new products that are not produced domestically.

3. The ability to purchase goods produced abroad at lower prices than the domestic good.

Explanation:

International trade involves the economic exchange or transactions of capital, goods and services between countries, mainly over international boundaries as a result of want or need by the consumers.

Examples of such goods are crude oil, clothing, electronic gadgets etc.

International trade can be classified into three categories namely;

- Import trade.

- Export trade.

- Entrepot trade.

The International Trade Organization now known as the World Trade Organization which was founded in 1994 is focused on efficiently lowering the cost of alternatives, creating access to resources and increased diversity of choice for consumers.

During March 2020, Toby Tool & Die Company worked on four jobs. A review of direct labor costs reveals the following summary data. Actual Standard Job Number Hours Costs Hours Costs Total Variance A257 200 $4,000 210 $4,200 $200 F A258 450 10,350 430 8,600 1,750 U A259 300 6,390 299 5,980 410 U A260 110 2,090 103 2,060 30 F Total variance $1,990 U Analysis reveals that Job A257 was a repeat job. Job A258 was a rush order that required overtime work at premium rates of pay. Job A259 required a more experienced replacement worker on one shift. Work on Job A260 was done for one day by a new trainee when a regular worker was absent. Prepare a report for the plant supervisor on direct labor cost variances for March. (Round actual rate and standard rate to 2 decimal places, e.g. 10.50.)

Answers

Answer and Explanation:

The Preparation of report for the plant supervisor on direct labor cost variances for March is attached with the help of spreadsheet.

The Formula are as shown below:-

Actual per hour = Actual costs ÷ Actual number of hours

Standard per hour = Standard costs ÷Standard number of hours

Quantity variance = (Actual hours -Standard hours) × Standard Rate

Price variance = (Actual Rate - Standard Rate) × Actual Hour

Therefore if actual hours is lesser than Standard hours it will become favorable and if actual hours is higher than standard hours it will become unfavorable. In the similar way if actual rate is higher than standard rate then it will become unfavorable on the other hand if actual rate is lesser than standard rate then it will become favorable.

Xerox Corporation is using a predetermined overhead rate of $22.30 per machine-hour that was based on estimated total fixed manufacturing overhead of $446,000 and 20,000 machine-hours for the period. The company incurred actual total fixed manufacturing overhead of $409,000 and 18,200 total machine-hours during the period. The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to:

Answers

Answer:

$405,860

Explanation:

Data given

Predetermined overhead rate = $22.30

Actual machine hours  = $18,200

The computation of manufacturing overhead applied is shown below:-

Manufacturing overhead applied = Predetermined overhead rate × Actual machine hours

= $22.30 × 182,00

= $405,860

Therefore for computing the manufacturing overhead applied we simply multiplied the predetermined overhead rate with actual machine hours.

The Berkel Corporation manufactures Widgets, Gizmos, and Turnbols from a joint process. June production is 5,000 widgets; 8,750 gizmos; and 10,000 turnbols. Respective per unit selling prices at splitoff are $75, $50, and $25. Joint costs up to the splitoff point are $187,500. If joint costs are allocated based upon the sales value at splitoff, what amount of joint costs will be allocated to the widgets

Answers

Answer:

Allocated join cost = $66,176.47  

Explanation:

The joint cost is allocated using sales. This is done by using the proportion of sales of the total which is attributed to the sales value of widget

Total sales value of the three products=

(75  × 5,000) + ($50×  8,750) + ( $25×  10,000)= 1,062,500

Joint cost = $187,500.

Joint costs allocated to Widget

=  (75  × 5,000)/1,062,500  ×  $187,500. =  66,176.47  

Allocated join cost =$66,176.47  

Royal Dutch Shell(RDS) acquires ethanol fuel from Brazilian Cosan energy company. The Ethanol costs 500 million Brazilian Real(BRL) to grow the corn and convert it to ethanol. RDS doesn't have BRL, so they must use the futures market to acquire the currency. If 1 BRL/USD futures contract is for 100,000 reals What is the optimal number of BRL/USD futures contracts for Shell to take to receive the entire amount of Real at delivery.

Answers

Answer:

The answer is 5000 future contracts

Explanation:

Solution

Given that:

Royal Dutch buys ethanol fuel from Brazilian energy company

Nowm,

The Required coverage = 500,000,000

The BRL/USD futures contract size = 100,000

Number of contracts required = 500,000,000/100,000

So,

= 500,000,000/100,000  = 5000

Therefore, the optimal number of BRL/USD futures contracts for Shell to take to receive the entire amount of Real at delivery is 5000

A perfectly competitive firm is a: Group of answer choices price taker, because it must accept the market equilibrium price. price participant, because it can coordinate its pricing decisions with other firms. price maker, because it has the freedom to set the selling price. price leader; it can change its price and other firms will adjust.

Answers

Answer:

A.  price taker, because it must accept the market equilibrium price.

Explanation:

A perfectly competitive firm is an ideal firm in which different firms sell products that are homogeneous or similar in nature. They are price takers because the prices of goods are determined by changes in demand and supply, therefore they must accept the market equilibrium price. They do not attempt to fix the prices of commodities. The opposite of this type of firm is a monopoly where a firm has complete control of a market, having the ability to change prices as it wills.

An example can be found among businesses that sell similar kinds of products. It could be in the form of grocery stores that sell similar wares. When any of the sellers leave the market, it does not affect the other sellers as their prices are at equilibrium. Therefore, anyone can enter or exit this type of market.  

Grey Inc. has been purchasing a component, Z for $85 a unit. The company is currently operating at 75% of full capacity, and no significant increase in production is anticipated in the near future. The cost of manufacturing a unit of Z, determined by absorption costing method, is estimated as follows: Direct materials $30 Direct labor 15 Variable factory overhead 26 Fixed factory overhead 10 Total $81 Prepare a differential analysis report, dated March 12 of the current year, on the decision to make or buy Part Z.

Answers

Answer:

The difference between buying and making is $14 per unit. It is $14 cheaper to make the unit.

Explanation:

Giving the following information:

Purchasing price= $85 a unit.

Variable cost per unit:

Direct materials $30

Direct labor 15

Variable factory overhead 26

Because there is unused capacity, the fixed costs won't increase. Fixed factory overhead should not be taken into account.

Total unitary variable cost= $71

The difference between buying and making is $14 per unit. It is $14 cheaper to make the unit.

Proper payroll accounting methods are important for a business for all of the following reasons except a.payroll is subject to various federal and state regulations b.good employee morale requires timely and accurate payroll payments c.to help a business with cash flow problems by delayed payments of payroll taxes to federal and state agencies d.payroll and related payroll taxes have a significant effect on the net income of most businesses

Answers

Answer:

Option C                                        

Explanation:

In simple words, Payroll Accounting refers to the task of estimating and delivering to workers and other organizations pay , bonuses and allowances. That is usually achieved by various papers, including time sheets, earnings, as well as an accounting register.

Payroll management actually tracks an enterprise's payroll costs through accounting records. Payroll planning covers both cost and liability reports which including FICA Payable Payments, fed and provincial taxes Payable, Life Care Contributions Payable, etc.

2021 2020 Income Statement Information Sales revenue $ 8,400,000 $ 7,900,000 Cost of goods sold 5,535,600 5,400,000 Net income 332,500 198,000 Balance Sheet Information Current assets $ 1,550,000 $ 1,450,000 Long-term assets 2,150,000 1,850,000 Total assets $ 3,700,000 $ 3,300,000 Current liabilities $ 1,150,000 $ 850,000 Long-term liabilities 1,550,000 1,550,000 Common stock 750,000 750,000 Retained earnings 250,000 150,000 Total liabilities and stockholders' equity $ 3,700,000 $ 3,300,000 Required: 1. Calculate the following profitability ratios for 2021: (Round your answers to 1 decimal place.) 2. Determine the amount of dividends paid to shareholders in 2021.

Answers

Answer:

2021 2020 Income Statement Information

Sales revenue $ 8,400,000 $ 7,900,000

Cost of goods sold 5,535,600 5,400,000

Net income 332,500 198,000

Balance Sheet Information

Current assets $ 1,550,000 $ 1,450,000

Long-term assets 2,150,000 1,850,000

Total assets $ 3,700,000 $ 3,300,000

Current liabilities $ 1,150,000 $ 850,000

Long-term liabilities 1,550,000 1,550,000

Common stock 750,000 750,000

Retained earnings 250,000 150,000

Total liabilities and stockholders' equity $ 3,700,000 $ 3,300,000

1.

Calculate the following profitability ratios for 2021: (Round your answers to 1 decimal place.)

The four main profitability ratios are:

gross profit margin = (revenue - COGS) / revenue = ($8,400,000 - $5,535,600) / $8,400,000 = 0.341 or 34.1%net profit margin = net profit / revenue = $332,500 / $8,400,000 = 0.03958 or 3.96%return on assets = net income / average total assets = $332,500 / [($3,700,000 + $3,300,000)/2] = $332,500 / $3,500,000 = 0.095 or 9.5%return on equity = net income / shareholders equity = $332,500 / $1,000,000 = 0.3325 or 33.25%

2.

Determine the amount of dividends paid to shareholders in 2021.

retained earnings 2021 - retained earnings 2020 = net income - dividends

$250,000 - $150,000 = $332,500 - dividends

$100,000 + dividends = $332,500

dividends = $332,500 - $100,000 = $232,500

The Essex Company found that an average of 10 days elapses between when customer payments are received and the deposited funds clear the customer's bank and become usable by the firm. Essex's annual sales are $240 million. (Assume 365 days per year when converting from annual data to daily data or vice versa.) What is the increase in Essex's average cash balance assuming that it can reduce the time required to process customer payments by 3 days through more efficient payment processing methods

Answers

Answer:

$1,972,602.74

Explanation:

According to the scenario, computation of the given data are as follow:-

Increase in Essex’s Average Cash Balance = (Annual Sales ÷ Days Per Year) × Required Process Customer by Days

= (240,000,000 ÷ 365) × 3

= 657,534.25 × 3

= $1,972,602.74

According to the analysis, Increase in Essex’s average cash balance is $1,972,602.74

As marketing tools, how do blogs benefit companies? A. Demographic information about customers can be easily discovered. B. Blogs can offer a fresh, original, personal, and cheap way to enter into consumer conversations. C. Blogs are online selling platforms for people located in hard-to-reach places. D. Blogs provide companies with a platform to help portray wider merchandise. E. Blogs help reach a wider audience compared to other online direct marketing tools.

Answers

Answer:

The correct answer to the following question will be Option B.

Explanation:

A blog seems to be a new website where items are frequently published being presented in reverse order, can give a new, initial, personal as well as inexpensive chance of engaging in conducting this survey.The benefit of utilizing a company blog though is that the content provides faith to your clients or clients to support you as well as your organization as such a professional in your specialized subject or area.

The other choices have no relation to the given circumstance. So choice B seems to be the perfect solution to that.

Zoum Corporation had the following transactions during the year: Issued $250,000 of par value common stock for cash. Recorded and paid wages expense of $120,000. Acquired land by issuing common stock of par value $100,000. Declared and paid a cash dividend of $20,000. Sold a long-term investment (cost $8,000) for cash of $6,000. Recorded cash sales of $800,000. Bought inventory for cash of $320,000. Acquired an investment in Zynga stock for cash of $42,000. Converted bonds payable to common stock in the amount of $1,000,000. Repaid a 6-year note payable in the amount of $440,000. What is the net cash provided by financing activities?

Answers

Answer:

-$210,000

Explanation:

Issued Common Stock at par for Cash $250,000

Less:

Declared and paid a cash dividend $20,000

Repayment of 6-year note payable $440,000

Net Cash provided by Financing Activities ($210,000)

The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers to buy a special tool for $457 and that would increase the direct materials cost per bracelet by $7. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $8.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party’s order using its existing manufacturing capacity.

Answers

Answer:

this special order will result in a $2,637 profit, so the company should accept it

Explanation:

special order for 26 gold bracelets

discounted price of $367 per unit

normal production costs:

direct materials $143direct labor $90manufacturing overhead $31total $264

costs related to the special order

increase in direct materials = $7 per unit, total of $150 per unit

direct labor $90 per unit

variable overhead = $8 per unit

machine used for this project only $457

revenue generated by special order:

total revenue                                    $9,542

- variable costs                                ($6,448)

direct materials $3,900direct labor $2,340variable overhead $208

- special machine                              ($457)  

profit from special order                  $2,637

he following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10 par value 30,000 shares authorized and 15,000 shares issued, 2,000 shares outstanding $150,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 35,000 Treasury stock 25,000 Assuming the treasury shares were all purchased at the same price, the number of shares of treasury stock is:

Answers

Answer:

13,000 shares

Explanation:

data provided for computing the number of shares of treasury stock is here below:-

Issued Share = 15,000

Outstanding Shares = 2,000

The computation of the number of shares of treasury stock is shown below:-

Number of shares of treasury stock = Issued Share - Outstanding Shares

= 15,000 - 2,000

= 13,000 shares

Therefore for computing the number of shares of treasury stock we simply deduct the outstanding share from issued shares.

Direct materials information Medium speed bump Large speed bump

Standard pounds per unit 15 ?

Standard price per pound $1.00 $1.80

Actual quantity purchased and used per unit ? 16

Actual price paid for material per pound $1.80 $2.10

Direct materials price variance $1,120 U $1,920 U

Direct materials quantity variance $100 F ?

Total direct material variance ? $480 U

Number of units produced 100 400


Calculate missing direct material variables

Answers

Answer:

Explanation:

For Medium speed bump

AQ AP AQ SP SQ SP

1,400 $ 1.80 1,400 $ 1.00 1,500 $ 1.00

$ 2,520.00 $ 1,400.00 $ 1,500.00

A B C

DMPV A-B $ 1,120.00 U

DMQV C-B $ 100.00 F

DMV A-C $ 1,020.00 U

We know that Direct material price variance = AQ(AP-SP) = 1120

AQ = 1120/(AP-SP)

AQ = 1120/(1.80-1.00)

AQ = 1,400

SQ = 100 x 15 = 1500

For Large speed bump

AQ AP AQ SP SQ SP

6,400 $ 2.10 6,400 $ 1.80 7,200 $ 1.80

$ 13,440.00 $ 11,520.00 $ 12,960.00

A B C

DMPV A-B $ 1,920.00 U

DMQV C-B $ 1,440.00 F

DMV A-C $ 480.00 U

Using this equation , DMV = DMPV + DMQV

DMQV = DMV-DMPV

DMQV = 480-1920

DMQV = 1440 F

Direct material quantity variance = SP(SQ-AQ) = 1440

SQ-AQ = 1440/SP

1440/SP + AQ = SQ

1440/1.8 + 6400 = SQ

SQ = 7200

g On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 8%, resulting in Chin receiving cash of $9,594,415. a. Journalize the entries to record the following: Issuance of the bonds. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. 1. 2. 3. b. Determine the amount of the bond interest expense for the first year. $ c. Why was the company able to issue the bonds for only $9,594,415 rather than for the face amount of $10,000,000? The market rate of interest is the contract rate of interest. Therefore, inventors wi

Answers

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

Total Years = 5, semiannually = 5 × 2 = 10

Rate = 7% yearly, semiannually rate = 7 ÷ 2 = 3.5%  

Journal Entries

On Jan 1

Cash A/c           Dr. $9,594,415

Discount on bonds payable A/c        Dr. $405,585

      To Bonds payable A/c          $10,000,000

(Being the issuance of bond payable is recorded)

Discount value of issued bonds = $10,000,000 - $9,594,415 = $405,585

2).

On Jun

Interest expenses A/c             Dr. $390,559

Discount on bonds payable A/c($405,585 ÷10)           Dr.40,559

 To Cash A/c($10,000,0000 × 3.5%)     $350,000

(Being the payment of first semiannual interest is recorded)

3).  

On Dec 31

Interest expenses A/c              Dr. $390,559

Discount on bonds payable A/c($405,585*10/100)     Dr.$40,559

 To Cash A/c($10,000,000*3.5/100)      $350,000

(Being the payment of second semiannual interest is recorded)

b). Bond Interest Expense Amount for First Year

= Interest Expenses + Amortized Discount

= $700,000 + $81,117

= $781,117

Interest expenses = $350,000 + $350,000 = $700,000

Amortized Discount = $40,559 + $40,559 = $81,117

c).The Company issued the bonds at $9,594,415 for the face amount of $10,000,000 because bonds issued at discount for $405,585 as the coupon rate is less than the market interest.  

Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 2,000 units): Direct materials $ 26 Direct labor 53 Variable overhead 21 Fixed overhead 49 Total $ 149 Trailblazers has offered to sell the assembly to Mobility for $110 each. The total order would amount to 2,000 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $38,500. Required: a. Prepare a schedule that shows the total differential costs. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.)

Answers

Answer and Explanation:

The preparation of the  total differential cost schedule is presented below

                     Schedule showing statement of total differential cost

Particulars Make the wheels Buy from trailblazers Differential cost

Offer of trailblazer                        $220,000             $220,000 Higher

                                                      (2000 × $110)

Material cost     $52,000                                          $52,000 Lower

                       ($26 × 2000)

Labor cost       $106,000                                            $106,000 Lower

                        ($53 × 2000)

Variable overhead   $42000                                    $42,000 Lower

                          ($21 × 2000)

Fixed overhead  $98000                 $59,500        $38,500     Lower

                       ($49 × 2000)            ($98,000 -$38,500)

Total cost $298,000      $279,500             ($18,500) Lower

By adding the total cost we can get the making cost, buying cost and differential cost

Peggy sells pistachios and almonds at the farmer’s market. She currently prices pistachios at $7 per bag and almonds at $4 per bag. She observes that every hour, 4 people each buy one bag of pistachios and 2 people each buy one bag of almonds. Having surveyed them, she learns that 2 of the pistachio buyers would be willing to pay $2 for the bag of almonds while the other two would only be willing to pay $1. Both almond buyers would be willing pay $5 for the bag of pistachios. Suppose Peggy decides to sell a bundle containing one bag of pistachios and one bag of almonds in addition to selling them separately. What price should she charge for the bundle in order to maximize revenue?

Answers

Answer:

The price she should charge for the bundle in order to maximize profit is 9

Explanation:

Solution

The total pistachios sold = 7 * 2 =14

The total almonds sold is = 4*1 = 4

So,

The total of both pistachios and almonds = 14 + 4 + 18

Thus,

we solve for getting average of the two which is:

Getting the average of the two in the bundle = 18/2

=9

Therefore p =9

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 2.50 ounces $ 22.00 per ounce $ 55.00 Direct labor 0.90 hours $ 16.00 per hour 14.40 Variable manufacturing overhead 0.90 hours $ 2.00 per hour 1.80 Total standard cost per unit $ 71.20 During November, the following activity was recorded related to the production of Fludex: Materials purchased, 14,000 ounces at a cost of $289,800. There was no beginning inventory of materials; however, at the end of the month, 4,050 ounces of material remained in ending inventory. The company employs 26 lab technicians to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $15.00 per hour. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $5,000. During November, the company produced 3,900 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract

Answers

Answer and Explanation:

a. The computation is shown below:

Material price variance

= Actual Quantity × (Standard Price - Actual Price)

= 14,000 × ($22 - $289,800 ÷ 14,000)

= 14,000 × ($22 - $20.70)

= 14,000 × $1.30

= $18,200 favorable

Material quantity variance

= Standard Price × (Standard Quantity - Actual Quantity)

= $22 × (3,900 units × 2.5 - 14,000 ounces - 4,050 ounces)

= $22 × (9,750 - 9,950)

= $22 × 200

= $4,400 unfavorable

b. Yes the contract should be signed as it is the actual price i.e $20.70 is less than the standard price $22

​Garcia's Garage desires to create some colorful charts and graphs to illustrate how reliably its mechanics​ "get under the hood and fix the​ problem." The historic average for the proportion of customers that return for the same repair within the​ 30-day warranty period is 0.09.Each​ month, Garcia tracks 100customers to see whether they return for warranty repairs. The results are plotted as a proportion to report progress toward the goal. If the control limits are to be set at twostandard deviations on either side of the​ goal, determine the control limits for this chart. In​ March, 5of the 100customers in the sample group returned for warranty repairs. Is the repair process in​ control?

Answers

Answer:

the given question historic average is given as 0.09 for 100 customers.

Therefore,

P = 0.09 and n = 100

The control liimits are to be set two standard deviation around the mean.

Standard deviation =

\sigma = \sqrt{p(1-p)/n)}

Therefore substitutin g the value in the above formula:

\sigma = \sqrt{0.09(1-0.09)/100)}

After soving we get result as:

\sigma = 0.0286

Upper Control Limit = 0.09 + 2 * \sigma = 0.09 + (2 * 0.0286) = 0.1472

Lower Control Liimit = = 0.09- 2 * \sigma = 0.09 - (2 * 0.286) = -0.0328

For March, 5 out of 100 customers returned for warranty repairs, therefore,

p for March = 5/100 = 0.05

The process doses not fall under control limits, so it is out of control for March.

The following data concerning the retail inventory method are taken from the financial records of Welch Company. Cost Retail Beginning inventory $ 196,000 $ 280,000 Purchases 896,000 1,280,000 Freight-in 24,000 — Net markups — 80,000 Net markdowns — 56,000 Sales — 1,344,000 If the ending inventory is to be valued at approximately the lower of cost or market, what is the cost-to-retail ratio?

Answers

Answer:

$ 168,000

Explanation:

Include both Mark-ups and Mark-Downs and Exclude beginning inventory

When LIFO Inventory Method is used to find out Ending inventory retail Value. Cost to Retail Ratio will be Applied for both Previous year ending Inventory and the Current Year addition To Calculates

the Previous year Ending inventory :

Cost to Retail Ratio : Ending inventory at cost / Ending inventory at Retail

For Current year Addition :

Cost to Retail Ratio : Current Year Addition in Cost /Current Year Addition in Retail

Current year addition in retail includes : Markup ,Markdown purchases

Kindly check the attached images below to see the step by step explanation to the question above.

Merritt Equipment Company sells computers for $1,630 each and also gives each customer a 2-year warranty that requires the company to perform periodic services and to replace defective parts. During 2017, the company sold 950 computers. Based on past experience, the company has estimated the total 2-year warranty costs as $40 for parts and $60 for labor. (Assume sales all occur at December 31, 2017.)
In 2018, Merritt incurred actual warranty costs relative to 2017 computer sales of $11,200 for parts and $16,800 for labor.
Required:
a. Under the expense warranty approach, give the entries to reflect the above transactions (accrual method) for 2017 and 2018.
i. To record sale of computers
ii. To record estimated warranty expense
iii. To record expenditures towards warranty

Answers

Answer:

For this given question, find the entries recorded on the transactions (accrual method) for 2017 and 2018.

Explanation:

Solution

Entries on the above transactions (accrual method) for 2017 and 2018.

Date Particulars                          Debit ($)            Credit ($)

2017 Accounts Receivable

                    (1630*950)                          1548500

                  Sales revenue                                            1548500

           (To record sale of computers)  

2017 Warranty Expense

                     (40+60)*950                   95000

                 Warranty Liability                                        95000

      To record liability against warranty costs)

2018  Warranty Liability                     28000

                      Inventory                                                 11200

                Cash, Accrued payroll                                 16800

A television manufacturer would like to reduce its inventory. To this end, you are asked by the operations manager to assess its inventory level. You have the following information on average inventories from last year's financial statement: Raw materials $1,500,000 Work-in-process $1,200,000 Finished goods $800,000 In addition, the cost of goods sold last year (50 weeks) was $20 million. What is its total inventory (measured as weeks of supply) Answer

Answers

Answer:

A.8.75 weeks

B.5.71

Explanation:

a.

Weeks of supply = average aggregate inventory value/weekly sales at cost

=(1,500,000 + 1,200,000 + 800,000)/(20,000,000/50)

=3,500,000/400,000

= 8.75 weeks

b.Inventory turnover = annual sales (at cost)/average aggregate inventory value

=20 million/3.5 million

= 5.71

Answer:

Weeks Of Supply = 27.82 weeks

Explanation:

Weeks of Supply tells us that on average how long an inventory will last based on current demand.

The formula to calculate it is given below

Weeks Of Supply = Average Aggregate Inventory Value/ Weekly Cost of Sales

Weeks Of Supply = Raw Materials + Work In Process + Finished Goods/ Weekly Cost of Sales

Weeks Of Supply =$1,500,000+ $1,200,000+ $800,000/$ 20,000,000/52

Weeks Of Supply = 10,700,000/384615.385= 27.82 weeks

If the weeks of supply is lower it is better.

Inventory Turnover= $ 20,000,000/10,700,000=1.87 turns

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