Answer:
Retained earnings, December 31, 2016 = 26,700
Explanation:
The Statement of Retained Earnings can be prepared as follows:
SMART TOUCH LEARNING
Statement of Retained Earnings
For the month ended December 31, 2016
Details Amount
Retained earnings, December 01, 2016 13,000
Net income for the month 46,800
Dividends (33,100)
Retained earnings, December 31, 2016 26,700
Note: No currency sign is used in the answer in order to avoid confusion because no currency is used in the question itself.
A monetary growth rule means that :__________a) the Fed will raise interest rates if it thinks the economy is growing faster than potential. b) the Fed will lower interest rates if it thinks a recession is on the horizon. c) the money supply should grow in response to economic conditions. d) the money supply should grow at a constant rate.
Answer:
d) the money supply should grow at a constant rate.
Explanation:
The Federal Reserve System (popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.
Generally, the Fed controls the issuance of currency in United States of America: it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
Monetary growth rule is a theory that was proposed by Friedman and it states that the Federal Reserve System (Fed) should be required to set or target the money supply growth rate to be equal to the growth rate of Real gross domestic product (GDP) each year and leaving the price level of goods and services unchanged.
Basically, this growth rate of gross domestic product (GDP) is usually set between 1% and 4%. Also, the monetary growth rule is also referred to as the K-Percent rule.
Hence, a monetary growth rule means that the money supply should grow at a constant rate.
John is a self-employed computer consultant who lives and works in Dallas. John paid for the following activities in conjunction with his business. Which is not deductible in any amount?
1. Dinner with a potential client where the client's business was discussed.
2. A trip to Houston to negotiate a contract.
3. A seminar in Houston on new developments in the software industry.
4. A trip to New York to visit a school chum who is also interested in computers.
A. 4 only
B. 3 only
C. 2 only
D.None of these
E. 1 only
(f) Find the present value of an investment that will pay $3,000 at the end of Years 10, 11, and 12. Use a discount rate of 8%.
Answer:
PV= $3,867.67
Explanation:
Giving the following information:
Find the present value of an investment that will pay $3,000 at the end of Years 10, 11, and 12. Use a discount rate of 8%.
First, we will determine the future value of the payments:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {3,000*[(1.08^3) - 1]} / 0.08
FV= $9,732.2
Now, the present value:
PV= FV / (1 + i)^n
PV= 9,732.2 / (1.08^12)
PV= $3,867.67
Consider the following data and then calculate the half-life for this particular isotope:
Time Activity (cpm)
0 days 320,000
40 days 216,100
100 days 120,000
(A) 35.2 days.
(B) 75.6 days.
(C) 70.6 days.
(D) 62.9 days.
(E) None of these.
Answer:
D. 62.9 days
Explanation:
Half Life Cpm activity:
320,000 / 2 = 160,000
At 100 days cpm is 120,000 then cpm 160,000 will be at 62.9 days.
[320,000 - 216,100] / 40 days = 2,597.5
160,000 / 2,597.5 = 62.9 days.
Henley Corporation has bonds on the market with 12 years to maturity, a YTM of 9.7 percent, a par value of $1,000, and a current price of $948. The bonds make semiannual payments. What must the coupon rate be on the bonds
Answer:
8.96%(9.0% rounded to 1 decimal place since YTM of 9.7% was also to 1 decimal place)
Explanation:
In ascertaining the coupon rate, we need to, first of all, determine the semiannual coupon payment(since the bond pays coupons on a semiannual basis) of the bond using a financial calculator bearing in mind that the calculator would be set to its default end mode before making the following inputs:
N=24(number of semiannual coupons in 12 years left to maturity=12*2=24)
I/Y=4.85(semiannual yield to maturity without the "%" sign=9.7%/2=4.85%)
PV=-948( the current bond price of $948 shown as a negative since it is an outflow of cash for the bond investor)
FV=1000(the bond face value of $1000)
CPT
PMT=$44.79
semiannual coupon=face value*coupon rate/2
$44.79=$1000*coupon rate/2
$44.79*2==$1000*coupon rate
$89.58=$1000*coupon rate
coupon rate=$89.58/$1000
coupon rate=8.96%
George Washington Carver developed new
A.military strategies
B. web 2.0 products
C. agricultural innovations
D. long-distance communication
George Washington Carver developed new agricultural innovations. Thus, the correct answer is option (C).
Who was George Washington Carver?George Washington Carver was an American agricultural scientist and inventor who advocated for non-cotton crops and ways to avoid soil depletion. He was a famous black scientist in the early twentieth century.
Carver created an agriculture extension in Alabama as well as an industrial research lab, where he worked tirelessly on the development of hundreds of novel plant applications. Carver created his crop rotation technique at Tuskegee, which alternated nitrate-producing legumes like peanuts and maize with cotton, which depletes the soil of nutrients. His innovations are attributed with ensuring the South's economic survival in the early twentieth century.
Therefore, George Washington Carver is considered to have made large contributions in agricultural innovations.
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Consider a simple economy whose only industry is fishing. In this industry, productivity—the amount of goods and services a worker can produce per hour—is measured by the number of fish one fisherman catches per hour. In the following table, match each example to the productivity determinant it represents.
Examples Human Capital per Worker Natural Resources per Worker Physical Capital per Worker Technological Knowledge
The fertile waters in which the fish feed and breed
The skills workers develop through training before working on and piloting boats
A route fishing boats can follow to maximize their catch at different points in the day
The boats in the fishing fleet
Answer:
The fertile waters in which the fish feed and breed ⇒ Natural Resources per worker.
The skills workers develop through training before working on and piloting boats ⇒ Human Capital per worker.
A route fishing boats can follow to maximize their catch at different points in the day ⇒ Technological Knowledge.
The boats in the fishing fleet ⇒ Physical Capital
An expansion/ boom can be stabilized/fixed by following expansionary fiscal policy. Expansionary monetary policy used to fix stagflation can worsen the problem of inflation. Recession caused by a negative demand shock is fixed by an expansionary monetary policy. A boom can be stabilized/fixed by following contractionary monetary policy.
Answer:
An expansion/ boom can be stabilized / fixed by following expansionary fiscal policy.
Explanation:
The statement mentioned above is not correct, rest of all the statements are correct. An expansionary fiscal policy is used when money supply is increase in the economy. This will raise spending and taxes will be cut down in order to increase investments in the country.
The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $39 per unit. Variable costs for the casing are $12 per unit and fixed cost is $6 per unit. Cotwold executives would like for the Molding Division to transfer 22,000 units to the Assembly Division at a price of $33 per unit. Assume that the Molding Division has excess capacity, but the Assembly Division requires the casing to be made from a specific blend of plastics. This would raise the variable cost per unit to $37.
Answer:
1. No, the Molding Division accept the $33 transfer price proposed by management.
2. The minimum transfer price that the Molding Division will accept is $37.
3. Mutually beneficial transfer price = $38.00
Explanation:
Note: This question is not complete as the requirements are missing. The requirements are therefore provided to complete the question before answering it as follows:
Required:
1. Should the Molding Division accept the $33 transfer price proposed by management?
2. Determine the minimum transfer price that it will accept.
3. Determine the mutually beneficial transfer price so that the two divisions equally split the profits from the transfer. (Round your answer to 2 decimal places.)
The explanation of the answers is now provided as follows:
Note: Since it is assumed that the Molding Division has excess capacity, the relevant cost to consider whether or not to accept is the variable cost per unit. The fixed cost per unit is not relevant as it will be incurred whether or not the transfer is accepted.
We can now proceed as follows:
1. Should the Molding Division accept the $33 transfer price proposed by management?
No, the Molding Division accept the $33 transfer price proposed by management. This is because it is lower than the variable cost per unit of $37 for casing from a specific blend of plastics required by the Assembly Division.
2. Determine the minimum transfer price that it will accept.
The minimum transfer price that the Molding Division will accept is $37. This is equal to the variable cost per unit of $37 for casing from a specific blend of plastics required by the Assembly Division.
3. Determine the mutually beneficial transfer price so that the two divisions equally split the profits from the transfer. (Round your answer to 2 decimal places.)
This can be determined as follows:
Profit per unit from selling to external customers = Selling price per unit to external customers - Variable cost per unit for casing from a specific blend of plastics required by the Assembly Division = $39 - $37 = $2.00
Mutually beneficial transfer price = Variable cost per unit for casing from a specific blend of plastics required by the Assembly Division + (Profit per unit from selling to external customers / 2) = $37 + ($2 / 2) = $38.00
In the following MRP planning schedule for Item J, indicate the correct net requirements, planned order receipts, and planned order releases to meet the gross requirements. Lead time is one week.
WEEK NUMBER
ITEM J 0 1 2 3 4 5
Gross requirements 67 43 63
On-hand 46
Net requirements
Planned order receipt
Planned order release
Answer:
Planned order receipts
Item 3 - 55
Item 4 - 74
Planned order releases
Item 2 - 55
Item 3 - 74
Explanation:
Planned order receipts are the requirement for each item based on demand. Planned order releases is the finished goods processing time. When finished goods are ready, they are placed at warehouse for order dispatch.
Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container's cost. They receive a refund when the container is returned. During 2021, deposits collected on containers shipped were $890,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2021, represented deposits of $595,000. In 2021, $827,000 was refunded and deposits forfeited were $56,750. Required: 1. Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2021. 2. Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 > Record the deposits collected. < 1 2 3 4 Record the containers returned. < 1 2 3 4 Record the deposits forfeited - record revenue. < 1 2 3 4 Record the deposits forfeited - adjust inventory. Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet. Balance on December 31
Answer:
1. (a) Dr Cash $890,000
Cr Liability for refundable deposits $890,000
(b) Dr Liability for refundable deposits $827,000
Cr Cash $827,000
(c) Dr Liability for refundable deposits $56,750
Cr Sale of containers $56,750
(d) Dr Cost of goods sold $56,750
Cr Inventory of containers $56,750
2.$601,250
Explanation:
1.Preparationof the appropriate journal entries for the deposits received, returned, and forfeited during 2021.
(a) Dr Cash $890,000
Cr Liability for refundable deposits $890,000
(b) Dr Liability for refundable deposits $827,000
Cr Cash $827,000
(c) Dr Liability for refundable deposits $56,750
Cr Sale of containers $56,750
(d) Dr Cost of goods sold $56,750
Cr Inventory of containers $56,750
2. Calculation to determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet.
Using this formula
Ending liability for refundable deposits = Liability for refundable deposits, January 1, 2021 + Deposits received during 2021 - Deposits returned during 2018 - Deposits forfeited during 2021
Let plug in the formula
Ending liability for refundable deposits= $595,000 + $890,000 - $827,000 - $56,750
Ending liability for refundable deposits= $601,250
Therefore the liability for refundable deposits to be reported on the December 31, 2021, balance sheet is $601,250
Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $27,861 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following
Deposit in transit 3,350
Outstanding checks 1,350
Answer: $29,861
Explanation:
In order to adjust the bank statement balance to the books, the following is done:
= Bank statement + Deposit in transit - Outstanding checks
= 27,861 + 3,350 - 1,350
= $29,861
SmartCorp sells 500 units, resulting in $75,000 of sales revenue, $32,000 of variable costs, and $20,000 of fixed costs. The number of units that must be sold to achieve $41,000 of operating income is: (Round intermediary calculations to two decimal places, and your final answer up to the nearest whole number.)
Answer: 709
Explanation:
selling price per unit will be:
= $75000/500
= $150
Variable cost per unit:
= $32000/500
= $64
Contribution margin per unit = $150 - $64 = $86
Number of units to be sold will now be:
= ($20000 + $41000) / $86
= $61000/$86
= 709
A company purchased factory equipment for $350,000. It is estimated that the equipment will have a $35,000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be:_________ a. $140,000 b. $84,000. c. $126,000 d. $75,600
Answer:
Annual depreciation= $126,000
Explanation:
Giving the following information:
Purchase price= $350,000
Useful life= 5 years
Salvage value= $35,000
To calculate the annual depreciation under the double-declining balance, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= 2*[(350,000 - 35,000) / 5]
Annual depreciation= $126,000
The following information is available for Jorgensen Company: a. The Cash Budget for March shows a bank loan of $10,000 and an ending cash balance of $48,000. b. The Sales Budget for March indicates sales of $120,000. Accounts receivable is expected to be 70% of March sales.
Answer:
Accounts receivable is
Explanation:
Expected accounts receivable is 70% of sales amount. The sales budget is $120,000 then accounts receivable will be $84,000. The rest of sales will be in cash, so the cash collection for the month of march will be $36,000. The new cash balance will be $36,000 + $48,000 = 84,000.
A manufacturer reports the following costs to produce 10,000 units in its first year of operations: Direct materials, $10 per unit, Direct labor, $6 per unit, Variable overhead, $70,000, and Fixed overhead, $120,000. The total product cost per unit under absorption costing is
Answer:
Total unitary product cost= $35
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
Unitary overhead= (120,000 + 70,000) / 10,000) $19
Now, the total product cost:
Total unitary product cost= 10 + 6 + 19
Total unitary product cost= $35
Your firm uses half debt and half equity. The shareholders need to earn 20%. The firm can borrow at 5%. The risk free rate is 2%. The tax rate is 40%. Find the weighted average cost of capital.
Answer:
11.5%
Explanation:
WACC = weight of equity x cost of equity + weight of debt x cost of debt x (1 - tax rate)
Which one of these is covered by a specific type of insurance policy?
A.Off grid homes
B. Condominiums
C. Home with more than two stories
D. Homes in rural areas
Answer:
A.Off grid homes
Explanation:
Specific type of insurance policy covers the most common perils except those specifically excluded perils such as earthquake, flood, nuclear disaster, landslide.
OFF GRID HOMES refer to homes which are self-sufficient without reliance on modern technology and public utilities. That means that this homes do not have access to electricity, gas, water, etc.
Therefore, these homes can be insured by a specific type of insurance policy.
The off-grid homes should be covered by a specific type of insurance policy.
The following information should be considered:
The specific insurance refers to the type of property insurance where only one person's property should be covered by the policy.It should be possible for the one property for the coverage that too is done from a specific insurance policy.Therefore the other options are incorrect.
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Assume that a company pays a 5% sales commission Also, assume the job cost sheet for Job X shows that (1) it used 18 direct tabor-hours and incurred direct materials and direct labor charges of $500 and $360, and (2) its unit product cost is $27.35. If Job X contained 40 units, then what is the plantwide predetermined overhead rate per direct labor-hour?
a. $15.00
b. $60.78
c. $13.00
d. $47.78
Answer:
c. $13.00
Explanation:
The computation of the plantwide predetermined overhead rate is given below;
Given that
Direct labor hour used = 18
Direct material cost = $500
Direct labor cost = $360
Unit product cost = $27.35
So,
Total cost of Job = Number of unit × Unit product cos
= 40 × 27.35
= $1,094
Now
Total cost of Job = Direct material cost + Direct labor cost + Overhead applied
1,094 = 500 + 360 + Overhead applied
Overhead applied = $234
Now
Overhead applied = Direct labor hour used × Plantwide predetermined overhead rate
234 = 18 × Plantwide predetermined overhead rate
Plantwide predetermined overhead rate = $13 per direct labor hour
The plantwide predetermined overhead rate per direct labor-hour is $13 per DLH
Given Information
Direct labor hour used = 18
Direct material cost = $500
Direct labor cost = $360
Unit product cost = $27.35
Total cost of Job = Number of unit × Unit product cost
Total cost of Job = 40 × 27.35
Total cost of Job = $1,094
Total cost of Job = Direct material cost + Direct labor cost + Overhead applied
1,094 = 500 + 360 + Overhead applied
Overhead applied = $234
Overhead applied = Direct labor hour used × Plantwide predetermined overhead rate
234 = 18 × Plantwide predetermined overhead rate
Plantwide predetermined overhead rate = $13 per direct labor hour
Hence, the plantwide predetermined overhead rate per direct labor-hour is $13 per DLH.
Therefore, the Option C is correct.
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Charles Corporation produces and sells a single product. Data concerning that product appear below:
Per Unit Percent of Sales
Selling Price $190 100%
Variable Expenses 38 20%
Contribution Margin 152 80%
Fixed expenses are $87,000 per month. The company is currently selling 1,000 units per month. Management is considering using a new component that would increase the unit variable cost by $28. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change?
When Kimberly finds out that members of her team are using unethical practices to make sales and obtain information, her solution is to hold a Code of Ethics workshop. Is this an appropriate response for her to have?a. Yes; as the manager of these two employees, she is responsible for making sue they know what the expectations of behavior are. b. Yes; she is not allowed to take any disciplinary actions. c. No; she should fire both of them immediately. d. No; it is not her responsibility to educate these employees. They should be in charge of deciding their own ethical behavior.
Answer:
The answer is "Option a".
Explanation:
If Kimberly discovers if her team members use immoral techniques in sales and information, then can organize a workshop on the code of ethics. It is responsible for making sure that he knows the standards of conduct, which is the proper answer for her supervisor of the 2 employees. This code of ethics focuses on people and organizations' values and standards for governing their decisions, as well as on distinguishing the difference between right and wrong.
The impact of interest rate changes in the PV of $100 due in 20 years compared to the PV of $100 due in one year are:
a. smaller because interest rate changes have a greater impact on the near-term cash flows than distant cash flows.
b. the same because the cash flow is the same.
c. greater because interest rate changes have a greater impact on distant cash flows than near-term cash flows.
d. sometimes less and sometimes more depending on the interest rate.
Answer: c. greater because interest rate changes have a greater impact on distant cash flows than near-term cash flows.
Explanation:
Interest rate changes have a greater impact on distant cashflows because those cashflows will be exposed to the interest rates for longer. This means that they will be subjected to more discounting than a cashflow that is due in one year which would be subject to only a single year of discounting.
For instance, assume the required rate of return for two investments is 10%. One investment yields $10,000 in 20 years and another yields $10,000 in 2 years .
The present value of both are:
= 10,000 / (1 + 10%)²⁰ = 10,000 / ( 1 + 10%)²
= $1,486.43 = $8,264.46
Notice the difference. The longer term investment was more exposed to interest rate effects.
Explain the difference between the concepts of Business Management and Technology Management. Provide examples.
Answer:
Explanation:
There is a difference between business management and technology management.
Business management refers to managing the organization's business perspective so that the direct business objectives of the organization is served.
Business management involves managing the domain, employees, looking after the business processes of an organization, etc. whereas
While technology management is used to make the business process simple and convenient through various aspects like managing the technical aspect of each and every business process and that is possible by having details about the technical aspects that are involved in all the business process of the organization.
For an organization to be successful it should possess all the required management techniques that include the business and technical aspects both.
Today the way of doing business has changed a lot and hence the organizations need to be quite diligent and effective in order to sustain and remain competitive in the industry.
_______________ skills, though developed through job training and work experience, are generally acquired during the course of your formal education.
a. Interpersonal
b. Technical
c. Conceptual
d. Communication
Answer:
D
Explanation:
Delta Screen Corporation is currently operating at 60% of capacity and producing 6,000 screens annually. The normal selling price is $750 per screen. They recently received an offer from a company in Germany to purchase 2,000 screens for $500 per unit. Delta has not previously sold products in Germany. Budgeted production costs for 6,000 and 8,000 screens follow:Units Produced 6,000 8,000 Direct Materials Cost $ 750,000 $ 1,000,000Direct Labor Cost 750,000 1,000,000Variable Overhead 900,000 1,200,000 Fixed Overhead 1,200,000 1,200,00 Total Cost 3,600,000 4,400,000Full Cost per Unit 600 550Delta’s marketing manager believes that although the price offered by the German customer is lower than current price, the order should be accepted to gain a foothold in the German market. The production manager, however, believes that the order should be rejected because the unit cost is higher than the price offered.If the president of Delta were to call on you to resolve the difference in opinion, what would you recommend? Explain.What is the minimum price for the special order if Delta is operating at full capacity?
Answer:
a. I would recommend the the special order should be accepted.
b. The minimum price for the special order is the current selling price of $750.
Explanation:
a. If the president of Delta were to call on you to resolve the difference in opinion, what would you recommend?
Because the existing data's format and findings are deceiving, I would suggest to the president to let us perform a differential analysis before making a recommendation.
Note: See the attached excel file for a analysis of accepting the order.
In the attached excel file, the following calculation is done:
Special order revenue = Difference revenue = Units of special order * Special order price per unit = 2,000 * $500 = $1,000,000
Revenue with the special order = Revenue without the special order + Special order revenue = $4,500,000 + $1,000,000 = $4,500,000
From the differential analysis in the attached excel, it can be observed that accepting the order will increase profit by $200,000.
Therefore, I would recommend the the special order should be accepted.
b. What is the minimum price for the special order if Delta is operating at full capacity?
Since other sales opportunities has be forgone if the special order is accepted if Delta is operating at full capacity, the minimum price for the special order must be or is the current selling price of $750.
The lifetime of a particular brand of A batteries follows a normal distribution. The mean lifetime of particular brand of A batteries is 1000 hours, with a standard deviation of 100 hours.
1. What percentage of batteries last more than 1100 hours?
a. 2.5%.
b. 5%.
c. 16%.
d. 32%.
2. What is the probability that a randomly selected battery lasts more than 875 hours?
a. 0.3749.
b. 0.8944.
c. 0.8716.
d. 0.1056.
3. What is the probability that a randomly selected battery lasts between 1150 and 1250 hours?
a. 0.2417.
b. 0.4332.
c. 0.9915.
d. 0.3085.
Answer:
1. d. 32%
2. a. 0.3749
3. c. 0.9915
Explanation:
Percentage of battery is calculated by;
mean - sample / standard deviation
1100 hours - 875 / 100 = 225 / 875 = 0.3749
z-score calculated based on the probability of battery is 0.6549
[ 1250 - 1150 ] / 1250 = 0.9915
The calculation of WACC involves calculating the weighted average of the required rates of return on debt and equity, where the weights equal the percentage of each type of financing in the firm's overall capital structure.
(rstd, rps, rs, rd)
_______ is the symbol that represents the required rate of return on short-term debt in the weighted average cost of capital (WACC) equation.
Co. has $2.3 million of debt, $1 million of preferred stock, and $2.2 million of common equity. What would be its weight on debt?
a. 0.42
b. 0.18
c. 0.40
d. 0.16
Answer:
a. 0.42
Explanation:
Calculation to determine What would be its weight on debt?
First step is to calculate the Total firm capital
Total firm capital= $2.3 + $1 + $2.2
Total firm capital= 5.50 million.
Now let determine the weight on debt using this formula
Weight on debt= Debt in the firm/ Total firm capital
Let plug in the formula
Weight on debt = $2.3 million/ 5.50 million
Weight on debt = 0.4182.
Weight on debt=0.42 (Approximately)
Therefore What would be its weight on debt is 0.42
Chavez Corporation reported the following data for the month of July: Inventories: Beginning Ending Raw materials $ 36,000 $ 34,500 Work in process $ 20,500 $ 26,000 Finished goods $ 36,500 $ 51,500 Additional information: Raw materials purchases $ 70,500 Direct labor cost $ 95,500 Manufacturing overhead cost incurred $ 63,500 Indirect materials included in manufacturing overhead cost incurred $ 9,800 Manufacturing overhead cost applied to Work in Process $ 62,500 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for July is:
Answer:
Cost of goods manufactured= $214,700
Explanation:
First, we need to calculate the direct material used:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 36,000 + 70,500 - 34,500
Direct material used= $72,000
Now, we can determine the cost of goods manufactured:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 20,500 + 72,000 + 95,500 + (62,500 - 9,800) - 26,000
cost of goods manufactured= $214,700
An analyst prepares the following common-size income statements for Perez Company: 20X1 20X2 20X3 Sales 100% 100% 100% Cost of goods sold 50% 52% 53% Selling and administrative expense 16% 12% 9% Interest income 4% 4% 4% Pretax income 30% 32% 34% Income tax expense 15% 16% 17% Net income 15% 16% 17% Based only on this information, Perez's improving net profit margin is most likely a result of:
Answer:
Perez Company
Based only on this information, Perez's improving net profit margin is most likely a result of:
Decreasing Selling and Administrative Expenses over the years.
Explanation:
a) Data and Calculations:
Perez Company
Common-size Income Statements for three years:
20X1 20X2 20X3
Sales 100% 100% 100%
Cost of goods sold 50% 52% 53%
Selling and administrative expense 16% 12% 9%
Interest income 4% 4% 4%
Pretax income 30% 32% 34%
Income tax expense 15% 16% 17%
Net income 15% 16% 17%
b) A review of the common-size income statement of Perez Company shows that its selling and administrative expenses continued to reduce an average of 300 percentage points year on year. This reduction can be clearly seen in its improved net income, which also continued to improve year on year. However, the improvement was hampered by increasing income tax expense, which witnessed the same increase.
Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called
Answer:
multinational market regions.
Explanation:
It is the region where it deals with the groups countries that have seeks with regard to the mutual economic benefit arise from decreasing the trade and the trade barriers. Also the countries are looking for alliances in order to diversify the access to the free markets
