Answer: 9/16/2020
Explanation:
Following the information given in the question, it should be noted that the partnership will terminate on 9/16/2020.
A partnership is terminated in a situation whereby there's a transfer of interest such that there's only one partner who then remains. In this casez the termination date will be the date that the interest was sold. Since the sale of interest took place on September 16, 2020, then this will be the termination date.
Forsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $155 per unit. Its standard cost per unit produced is $125 and its selling and administrative expenses totaled $245,000. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year:
Materials price variance $6,800 F
Materials quantity variance $10,500 U
Labor rate variance $3,800 U
Labor efficiency variance $4,700 F
Fixed overhead budget variance $2,800 F
Fixed overhead volume variance $12,300 F
Required:
a. When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much?
b. Prepare an income statement for the year.
Answer:
a. Cost of goods sold will decrease by $12,300.
b. Net income = $67,300
Explanation:
a. When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much?
This can be determined by calculating the net variance as follows:
Forsyth Company
Calculation of Net Variance
Details Amount ($)
Materials price variance (F) 6,800
Materials quantity variance (U) (10,500)
Labor rate variance (U) (3,800)
Labor efficiency variance (F) 4,700
Fixed overhead budget variance (F) 2,800
Fixed overhead volume variance (F) 12,300
Net variance 12,300
Since the net variance of $12,300 is positive which is favorable, this implies that the cost of goods sold will decrease by $12,300.
b. Prepare an income statement for the year.
The income statement for the year can be prepared as follows:
Forsyth Company
Income Statement for the Year
Details $ $
Sales (10,000 * $155) 1,550,000
Cost of goods sold (COGS):
Standard COGS (10,000 * $125) (1,250,000)
Net variance 12,300
Net Cost of goods sold (1,237,700)
Gross margin 312,300
Selling and administrative expenses (245,000)
Net income 67,300
The following information is from Princeton Company's comparative balance sheets.
At December 31 Current year Priro year
Common stock, $10 par value $124,000 118,000
Paid—in capital in excess of par 585,000 351,000
Retained earnings 331,500 305,500
The company's net income for the current year ended December 31 was $57,000.
Required:
Write down the T-accounts to calculate the cash received from the sale of its common stock during the current year.
Answer:
cash received = $ 240,000
Explanation:
On calculating the common stock $10 par
Beg. balance - $ 118,000
$6,000 - Issuance of common stock
Thus the ending balance = $124,000
On calculating the paid in capital in excess of par
Beg. balance - $ 351,000
$ 234,000 - Issuance of common stock
Thus the end balance - $ 585,000
Therefore,
The cash received - $ 240,000
1. Center of the World. The Ecuadorian sucre (S) suffered from hyper-inflationary forces throughout 1999. Its value moved from S5,000/$ to S25,000/$. What was the percentage change in its value?2. Reais Reality. The Brazilian reais (R$) value was R$1.80/$ on Thursday, January 24, 2008. Its value fell to R$2.39/$ on Monday, January 26, 2009. What was the percentage change in its value?
Answer:
1- The percentage change in the value of the Ecuadorian Sucre was an increase of 400%.
2- The change in the percentage of the value of the Brazilian Real was a decrease of 32.77% of its value.
Explanation:
1- Given that the Ecuadorian sucre (S) suffered from hyper-inflationary forces throughout 1999, and its value moved from S5,000 / $ to S25,000 / $, to determine what was the percentage change in its value, the following calculation:
5000 = 100
25000 = X
25000 x 100/5000 = X
2500000/5000 = X
500 = X
500 - 100 = 400
Therefore, the percentage change in the value of the Ecuadorian Sucre was an increase of 400%.
2- Given that the Brazilian reais (R $) value was R $ 1.80 / $ on Thursday, January 24, 2008, and its value fell to R $ 2.39 / $ on Monday, January 26, 2009, to determine what was the percentage change in its value the following calculation must be performed:
1.80 = 100
2.39 = X
2.39 x 100 / 1.8 = X
239 / 1.8 = X
132.77 = X
132.77 - 100 = 32.77
Therefore, the change in the percentage of the value of the Brazilian Real was a decrease of 32.77% of its value.
Margin of Safety a. If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $fill in the blank 1 2. fill in the blank 2 % b. If the margin of safety for Canace Company was 20%, fixed costs were $1,875,000, and variable costs were 80% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) $fill in the blank 3
Answer and Explanation:
The computation is given below:
a
Margin of safety in dollars is
= $1,200,000 - $960,000
= $240,000
As a percentage of sales is
= $240,000 ÷ $1,200,000
= 20%
b
Break-even in sales dollars is
= $1,875,000 ÷ (1 - 0.8)
= $9,375,000
Actual sales (dollars) is
= $9,375,000 ÷ (1 - 0.2)
= $11,718,750
In this way it should be determined
Stacy Cool wants to invest her money to earn at least 14%. A friend who is interested in investments has suggested her to buy a bond issued by the Buckeye Bravo Company that will mature in seven years. It has a face value of $1,000, pays an annual coupon of $110, and currently sells for $950. Should she buy this bond
Answer:
no
the yield to maturity is 12% which is less than 14%
Explanation:
To determine if Stacy should buy the bond, determine the yield to maturity of the bond
yield to maturity can be determined using a financial calculator
Cash flow in year 0 = -950
Cash flow in year 1 - 6 = 110
Cash flow in year 7 = 110 + 1000
YTM = 12.1%
The YTM is less than the minimum return she wants. So, she should not buy the bond
To determine YTM using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
To determine YTM using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Kiwi Plc sold an antique painting which had been purchased inJanuary 1996 for £21,000. It was sold for £4,200 in January 2021. The proceeds were received net of auction fees of £650. What is Kiwi Plc's allowable loss?
Answer:
$17,450
Explanation:
The antique painting that was bought in January 1996 was sold for $21,000
It was sold for 4,200 in January 2021
It received a net auction fee of 650
Therefore the allowable loss can be calculated as follows
= 21,000-4200+650
= 17,450
Hence the allowable loss is $17,450
A select list of transactions for Goals follows:
For each transaction, identify what type of adjusting entry would be needed. Select from the following four types of adjusting entries: deferred expense, deferred revenue, accrued expense, and accrued revenue.
Apr. 1 Paid six months of rent, $4,800.
10 Received $1,200 from customer for six month service contract that began April 1.
Apr. 15 Purchased a computer for $1,000.
Apr. 18 Purchased $300 of office supplies on account.
Apr. 30 Work performed but not yet billed to customer, $500
Apr. 30 Employees earned $600 in salaries that will be paid May 2.
Answer:
Goals
Identification of Needed Adjusting Entry:
Transaction Adjusting Entry Type
Apr. 1 Paid six months of rent, $4,800. Deferred expense
Apr. 10 Received $1,200 from customer for Deferred revenue
six month service contract that began April 1.
Apr. 15 Purchased a computer for $1,000. Deferred expense
Apr. 18 Purchased $300 of office
supplies on account. Accrued expense
Apr. 30 Work performed but not yet
billed to customer, $500 Accrued revenue
Apr. 30 Employees earned $600 in Accrued expense
salaries that will be paid May 2.
Explanation:
Four types of adjusting entries:
Goal's deferred expense refers to an expense that Goal will incur in future periods but already paid for.
Goal's deferred revenue includes its revenue received in advance of service.
Goal's accrued expense refers to an expense that has been incurred but not yet paid for.
Goal's accrued revenue includes revenue that has been earned but not yet received.
An individual in the 36 percent tax bracket has $20,000 invested in a tax-exempt account. If the individual earns 10 percent annually before taxes and inflation is 3.0 percent per year, what is the real value of the investment in 10 years?
Answer:
the real value of the investment in 10 years is $38,614
Explanation:
The computation of the real value of the investment is given below:
but before that the rate of return is
= (1.10) ÷ (1.03) - 1
= 6.8%.
Now the
Future value
= $20,000 × (1 + 0.068)^10
= $38,613.80
Hence, the real value of the investment in 10 years is $38,614
The same should be calculated
The Dominican Republic and Nicaragua both produce coffee and rum. The Dominican Republic can produce 25 thousand tons of coffee per year or 5 thousand barrels of rum. Nicaragua can produce 18 thousand tons of coffee per year or 3 thousand barrels of rum. Suppose the Dominican Republic and Nicaragua sign a trade agreement in which each country would specialize in the production of either coffee or rum.
RequireDd
a. Which country should specialize in coffee?
b. Which country should specialize in rum?
Answer:
a. Nicaragua
b, Dominican Republic
Explanation:
A country should specialise in the production of goods for which it has a comparative advantage in its production
A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.
The Dominican Republic
opportunity cost of producing rum = 25,000 / 5000 = 5
opportunity cost of producing coffee = 5000 / 25000 = 0.2
Nicaragua
opportunity cost of producing rum = 6
opportunity cost of producing coffee = 0.17
The Dominican Republic has a lower opportunity cost in the production of rum. It should specialise in the production of rum
Nicaragua has a lower opportunity cost in the production of coffee. It should specialise in the production of coffee
Consider the following information for Maynor Company, which uses a periodic inventory system: Transaction Units Unit Cost Total Cost January 1 Beginning Inventory 21 $ 71 $ 1,491 March 28 Purchase 31 77 2,387 August 22 Purchase 42 81 3,402 October 14 Purchase 47 87 4,089 Goods Available for Sale 141 $ 11,369 The company sold 47 units on May 1 and 42 units on October 28. Required: Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods. FIFO LIFO Weighted Average
Answer:
FIFO LIFO WEIGHTED AVERAGE
Ending inventory 4494 3878 4193
Cost of Goods Sold 6875 7491 7176
Explanation:
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO
RECIEPTS COST OF GOODS SOLD BALANCE
DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $
balance 21 71 1491 21 71 1491
Purchasse
28-Mar 31 77 2387 31 77 2387
22-Aug 42 81 3402 37 81 2997 5 81 405
14-Oct 47 87 4089 47 87 4089
TOTAL 141 11369 89 6875 52 4494
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO
RECIEPTS COST OF GOODS SOLD BALANCE
DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $
balance 21 71 1491 21 71 1491
Purchasse
28-Mar 31 77 2387 31 77 2387
22-Aug 42 81 3402 42 81 3402
14-Oct 47 87 4089 47 87 4089
TOTAL 141 11369 89 7491 52 3878
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE
RECIEPTS COST OF GOODS SOLD BALANCE
DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $
balance 21 71 1491
Purchasse
28-Mar 31 77 2387
22-Aug 42 81 3402
14-Oct 47 87 4089
TOTAL 141 80.63 11369 89 80.63 7176 52 80.63 4193
Say that Fed policy requires all banks to hold 8% of deposits in reserves. If Ventura Bank does not hold any excess reserves and the Fed increases the reserve requirement to 10%, what will be the result
Answer:
the money supply decreases
Explanation:
Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. The higher the ratio, the lower the money supply
For example, assume reserve ratio is initially 8% of deposits. It is later reduced to 10%. 1000 is deposited
Increase in money supply = deposit / reserve ratio
1000 / 0.08 = 12,500
1000 / 0.1 = 10,000
It can be seen the money supply decreased when reserve ratio was increased from 8% to 10%
LO, Inc., is considering an investment of $444,000 in an asset with an economic life of five years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $283,100 and $88,800, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 2 percent. The company will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $64,000 in nominal terms at that time. The one-time net working capital investment of $19,500 is required immediately and will be recovered at the end of the project. The corporate tax rate is 24 percent.
Required:
What is the projectâs total nominal cash flow from assets for each year?
Answer:
LO, Inc.
The project's total nominal cash flow from assets for each year:
Revenue Expenses Net Cash Flow
Year 1 $283,100 $108,300 $174,800
Year 2 288,762 90,576 198,186
Year 3 294,537 92,388 202,149
Year 4 300,428 94,236 206,192
Year 5 389,937 96,121 293,816
Explanation:
a) Data and Calculations:
Cost of investment in an asset = $444,000
Estimated economic life of the asset = 5 years
Nominal annual revenues for the first year = $283,100
Nominal annual expenses for the first year = $88,800
Annual inflation rate = 2%
Salvage value of the asset = $64,000
One-time net working capital investment = $19,500
Corporate tax rate = 24%
Project's total nominal cash flow from asset for each year:
Revenue Expenses
Year 1 $283,100 $108,300 ($88,800+$19,500)
Year 2 288,762 ($283,100 * 1.02) 90,576 ($88,800 * 1.02)
Year 3 294,537 ($288,762 * 1.02) 92,388 ($90,576 * 1.02)
Year 4 300,428 ($294,537 * 1.02) 94,236 ($92,388 * 1.02)
Year 5 306,437 ($300,428 * 1.02) 96,121 ($94,236 * 1.02)
Year 5 83,500 ($64,000 + $19,500) (Salvage value and Working capital recovery)
Suppose Valley Technology has the following results related to cash flows for 2020:
Decrease in Debt of $1,000,000
Dividends Paid of $200,000
Purchases of Property, Plant, & Equipment of $5,700,000
Other Adjustments from Financing Activities of $100,000
Other Adjustments from Investing Activities of $900,000
Assuming no other cash flow adjustments than those listed above, create a statement of cash flows for investing and financing activities with amounts in thousands.
Required:
What is the Net Cash Flow from Investing and Financing Activities?
Answer:
Valley Technology
Statement of Cash Flows (in thousands):
Investing activities:
Other Adjustments from Investing Activities $900
Financing activities:
Decrease in Debt of ($1,000)
Dividends Paid of ($200)
Other Adjustments from Financing Activities of $100
Net cash flow from financing activities (1,100)
Net cash flows ($200)
Explanation:
a) Data and Calculations:
Decrease in Debt of $1,000,000
Dividends Paid of $200,000
Purchases of Property, Plant, & Equipment of $5,700,000
Other Adjustments from Financing Activities of $100,000
Other Adjustments from Investing Activities of $900,000
A company creates a rating form for its suppliers and rates their on-time delivery, product quality, service advice, and so forth in order to determine which suppliers to put on an approved list of suppliers for specific products. This process is called a(n)
Answer:
Vendor analysis
Explanation:
Organizational Buying Process
This is simply refered to as the decision making process where organizations state the need for purchased products and services and thereafter identify or evaluate to choose among them. There are 3 influences purchase type. They includes: structural and behavioral.
Vendor analysis in organizations buying influence is simply known as the behavioral needs of the buyer.
ethical conflicts may sometimes arise in buyer-supplier relationships. This can help the buying organization to manage spending
Vendor Analysis
This is simply refered to as a formal rating of suppliers on all important areas of performance.
The usual goal of a vendor analysis is to lower the total costs of a purchase.
The steps in Organizational buying process. They includes:
1. Recognize the product needed
2. Vendor analysis
3. Purchase decision
4. Post purchase evaluation.
International trade in goods and services is a major component of the globalization process.
a. True
b. False
If Marjorie makes an investment of principal, and leaves the full amount, both principal and interest in the account to some time in the future when she withdraws all funds, she is earning what type of interest
Answer: Compounding
Explanation:
Based on the information given, we can infer that Marjorie earns a compounding interest. The compound interest is the interest on a loan that is calculated based on the initial principal as well as the interest that is accumulated from the previous periods. In compounding interest, the interest is earned on the principal and the interest amount. The compounding interest is also referred to as the interest on interest.
U.S. real gross domestic product changed from $14.6 trillion in 2006 to $14.4 trillion in 2009. During that same time period, the share of manufactured goods (e.g., cars, appliances) of U.S. real gross domestic product was 12.8 percent in 2006 and 12.0 percent in 2009. What was the dollar value of manufactured output Instructions: Enter your responses rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. In 2006
Answer:
Missing word "b. In 2009"
a. Dollar value (2006) = Real GDP (2006) * Share of manufacturing goods (2006) / 100
Dollar value (2006) = 14.6 * 12.8 / 100
Dollar value (2006) = 186.88 / 100
Dollar value (2006) = $1.8688 trillion
Dollar value (2006) = $1.87 trillion
Thus, the dollar value of manufactured output in 2006 is $1.9 trillion
b. Dollar value (2009) = Real GDP (2009) * Share of manufacturing goods (2009) / 100
Dollar value (2009) = 14.4 * 12.0 / 100
Dollar value (2009) = 172.8 / 100
Dollar value (2009) = $1.728 trillion
Dollar value (2009) = $1.73 trillion
Thus, the dollar value of manufactured output in 2009 is $1.7 trillion
During a period, an RV company purchased three vehicles for $33,000, $46,000, and $24,000, and sold two of them for $125,000. Using the specific identification method of costing inventory, they identified the $46,000 vehicle as still in stock. Calculate the gross profit for the period.
Answer: $68,000
Explanation:
If the inventory that remains is the $46,000 then that means that the cars costing $33,000 and $24,000 have been sold.
With specific identification, the actual prices of the stock are used so the cost of goods sold is:
= 24,000 + 33,000
= $57,000
The gross profit is therefore:
= Sales - Cost of goods sold
= 125,000 - 57,000
= $68,000
When you retire, you wish to have $3 million in your retirement account. You decided to add $2,000 every quarter to your retirement account and invest to generate annualized return of 8% from your investment, how many years do you think it will take to have $3 million in the account
Answer:
43.35 years
Explanation:
Use the following formula to determine the number of years
Future Value of Annuity = Periodic Annuity x ( 1 + Periodic Interest rate )^numbers of periods ) - 1 / Periodic Interest rate
Where
Future Value of Annuity = $3 million = $3,000,000
Periodic Annuity = $2,000 per quarter
Periodic Interest rate = Interest rate x Quarterly fraction = 8% x 3/12 = 2%
Numbers of periods = n = ?
Placing values in the formula
$3,000,000 = $2,000 x ( 1 + 2% )^n ) - 1 / 2%
$3,000,000 / $2,000 = ( 1 + 2% )^n ) - 1 / 2%
1,500 = ( 1.02 )^n ) - 1 / 2%
1,500 x 2% = ( 1.02 )^n ) - 1
30 = ( 1.02 )^n ) - 1
30 + 1 = 1.02^n
31 = 1.02^n
Log 31 = n log 1.02
n = Log 31 / Log1.02
n = 173.41
Now calculat ethe nUmbers of years as follow
Numbers of years = n x 3/12
Numbers of years = 173.41 x 3/12
Numbers of years = 43.35 years
Evaluate whether all of the following are considered to be investment (I) in calculating GDP.
a. The purchase of a new automobile for private, non-business use
b. The purchase of a new house
c. The purchase of corporate bonds
Answer:
only the purchase of a new house would be considered investment spending of the three options
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Consumption spending includes spending by households on goods and services. Consumption spending includes :
spending on durables - e.g. laptop
spending on nondurables - e.g. clothes, food
spending on services - e.g. payment of hospital bill
the purchase of a textbook by a student is an example of consumption spending on durable goods
Investment - It includes purchases of goods and services made by businesses in the production of goods and services
Government spending - It includes government consumption expenditure and gross investment. The purchase of a new limousine for the president is an example of consumption expenditure
The purchase of a new automobile for private, non-business use is an example of consumption spending on durables
The purchase of a new house is an example of investment spending
The purchase of corporate bonds is not included in the calculation of GDP
Department R had 4,700 units in work in process that were 78% completed as to labor and overhead at the beginning of the period. During the period, 26,200 units of direct materials were added, 28,500 units were completed, and 2,400 units were 32% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was a.25,602 b.35,600 c.28,500 d.30,302
Answer: 25602
Explanation:
The number of equivalent units of production for conversion costs for the period will be calculated as follows:
Beginning work in process = 4700 × (100% - 78%) = 4700 × 22% = 1034
Add: Unit started and completed = 28,500 - 4700 = 23800
Add: Ending work in process = 2400 × 32% = 768
The equivalent units of production for conversion costs will be:
= 1034 + 23800 + 768
= 25602
Tri-County G&T sells 145,000 MWh per year of electrical power to Boulder at $ per MWh, has fixed costs of $ million per year, and has variable costs of $ per MWh. If Tri-County has MWh of demand from its customers (other than Boulder), what will Tri-County have to charge to break even?
Answer:
$105.85
Explanation:
Given that :
Fixed cost = $83.1 million
Variable cost = $30 / MWh
Number of demand, $1,000,000 MWh
Variable cost to other customers =[(1,000,000 + 145000) * $30) = $34350000
To break even :
Total Cost = Total revenue
(fixed Cost + variable cost) = total revenue
Let amount per MWh required to break even = x (amount sold to other customers)
(83100000 + 34350000) = (145000*80 + 1000000x)
117450000 = 11600000 + 1000000x
117450000 - 11600000 = 1000000x
105850000 = 1000000x
x = 105850000 / 1000000
x = $105.85
Somerset Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $62 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 45% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows:
Direct materials $8.00
Direct labor 12.00
Factory overhead (40% of direct labor) 4.80
Total cost per unit $24.80
If Somerset Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 25% of the direct labor costs.
Required:
Prepare a differential analysis dated April 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case.
Answer:
Somerset Computer Company
Differential Analysis dated April 30:
Make Buy
Alternative 1 Alternative 2 Difference
Variable cost per unit $23.00 $62.00 $39.00
Explanation:
a) Data and Calculations:
Purchase price per portable computer carrying case = $62
Unit cost of production:
Direct materials $8.00
Direct labor 12.00
Factory overhead (40% of direct labor) 4.80
Total cost per unit $24.80
Unit cost of production, with overhead broken into fixed and variable:
Direct materials $8.00
Direct labor 12.00
Factory overhead
Fixed overhead 1.80
Variable overhead 3.00
Total cost per unit $24.80
b) With a net gain of $39 per unit, the company should make the unit (Alternative 1) instead of buying it (Alternative 2).
Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $157,500, $421,600, and $60,000, respectively. The cost driver for each activity and the estimated annual usage are number of setups 2,100, machine hours 24,800, and number of inspections 1,200.
Required:
Compute the overhead rate for each activity.
Answer and Explanation:
The computation of the overhead rate for each activity is shown below:
Machine setup is
= $157,500 ÷ 2,100
= $75 per machine setup
Machining is
= $421,600 ÷ 24,800
= $17 per machine hour
And, for Inspections, it is
= $60,000 ÷ 1,200
= $50 per inspection
In this way it should be calculated
Soft Lumber has bonds, preferred stock and common stock as its capital components. _____________ is the right most apt to be granted to its preferred shareholders.
Answer: right to share in company profits prior to other shareholders
Explanation:
The preferred shareholders are paid their dividends before dividends are paid to other common shareholders. The preferred stock also gives no voting rights to the shareholders.
Preferred shareholders are known to have priority over the income of a company right to share in company profits prior to other shareholders.
(True) or (False)? The most common method companies use is double-declining balance, because it allows companies to recognize for depreciation expense up front.
Answer:
false
Explanation:
my teacher said it was false but she could be wrong
Grays Company has inventory of 25 units at a cost of $6 each on August 1. On August 3, it purchased 35 units at $11 each. 27 units are sold on August 6. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 27 units that were sold?
Answer:
$174
Explanation:
Calculation to determine what amount will be reported as cost of goods sold for the 27 units that were sold
Cost of goods sold=(25 units*$6) + [(25 units -27units)*$12]
Cost of goods sold =$150+$24
Cost of goods sold=$174
Therefore the amount that will be reported as cost of goods sold for the 27 units that were sold is $174
QS 5-6 Perpetual: Inventory costing with weighted average LO P1 A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 350 units. Ending inventory at January 31 totals 150 units. Units Unit Cost Beginning inventory on January 1 320 $ 3.00 Purchase on January 9 80 3.20 Purchase on January 25 100 3.34 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per unit costs to 2 decimal places.)
Answer:
Perpetual Inventory Company
The cost assigned to ending inventory based on the weighted average method is:
= $465 ($3.10 * 150)
Explanation:
a) Data and Calculations:
Units Unit Cost Total Cost
Beginning inventory on January 1 320 $ 3.00 $960
Purchase on January 9 80 3.20 256
Purchase on January 25 100 3.34 334
Total available for sale 500 3.10 $1,550
Sale on January 26 (350) 3.10 1,085
Ending inventory on January 31 150 3.10 465
Suppose that a competitive firm's marginal cost of producing output q (MC) is given by MC (q )equals6plus2 q. Assume that the market price (P) of the firm's product is $18 . What level of output (q) will the firm produce? The firm will produce nothing units of output. (Enter your response rounded to two decimal places.)
Answer:
The firm will produce 6.00 units of output.
Explanation:
From the question, we have:
MC(q) = 6 + 2q ……………… (1)
P = $18 ………………………. (2)
For any firm, profit is maximized when MC = P. To determine the level of output (q) the firm will produce, we therefore equate equations (1) and (2) and solve for q as follows:
6 + 2q = 18
2q = 18 - 6
2q = 12
q = 12 / 2
q = 6.00
Therefore, the firm will produce 6.00 units of output.
During its fiscal year, a Pension Trust Fund buys 1,000 shares of stock, for which it pays $33,000. At year end, the stock has a fair value of $28,000. How should this fact be reported in the Trust Fund's financial statements?a. the investment should be reported at a value of $33,000.
b. the investment should be reported at a value of $33,000, and the loss in market value should be reported in a footnote.
c. the investment should be reported at a value of $30,500.
d. the investment should be reported at a value of $28,000.
Answer: d. the investment should be reported at a value of $28,000.
Explanation:
Investments should be recorded at their fair value in the financial statements. If a loss is made but the company is still holding on to the investment then the loss is unrealized which is the case here.
When there is an unrealized loss, it is to be debited to the Unrealized loss account and credited to the investment account to show that it is reducing. This will then leave the balance of the investment account at the fair value which in this case is $28,000.
