The following is a list of costs that were incurred in the production and sale of large commercial airplanes:

a. Salary of chief compliance officer of company
b. Power used by painting equipment
c. Instrument panel installed in the airplane cockpit
d. Annual bonus paid to the chief operating officer of the company
e. Turbo-charged airplane engine
f. Interior trim material used throughout the airplane cabin
g. Cost of normal scrap from production of airplane body
h. Hourly wages of employees that assemble the airplane
i. Salary of the marketing department personnel
j. Cost of paving the headquarters employee parking lot
k. Cost of electrical wiring throughout the airplane
l. Cost of electronic guidance system installed in the airplane cockpit
m. Salary of plant manager
n. Cost of miniature replicas of the airplane used to promote and market the airplane
o. Human resources department costs for the year
p. Metal used for producing the airplane body
q. Annual fee to a celebrity to promote the aircraft
r. Hydraulic pumps used in the airplane’s flight control system
s. Yearly cost of the maintenance contract for robotic equipment
t. Prebuilt leather seats installed in the first-class cabin
u. Depreciation on factory equipment
v. Special advertising campaign in Aviation Worldmagazine
w. Oil to lubricate factory equipment
x. Masks for use by painters in painting the airplane body
y. Decals for cockpit door, the cost of which is immaterial to the cost of the final product
z. Salary of chief financial officer

Required:
a. Classify each cost as either a product cost or a period cost.
b. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost.
c. Indicate whether each period cost is a selling expense or an administrative expense.

Answers

Answer 1

Answer:

Correct Answer:

PRODUCT COST:

The following falls under direct material cost:

b. Power used by painting equipment

c. Instrument panel installed in the airplane cockpit

e. Turbo-charged airplane engine

f. Interior trim material used throughout the airplane cabin

l. Cost of electronic guidance system installed in the airplane cockpit.

p. Metal used for producing the airplane body

r. Hydraulic pumps used in the airplane’s flight control system

The following falls under direct labour cost:

j. Cost of paving the headquarters employee parking lot

t. Pre-built leather seats installed in the first-class cabin

y. Decals for cockpit door, the cost of which is immaterial to the cost of the final product

The following falls under factory overhead cost:

u. Depreciation on factory equipment.

PERIOD COST:

The following falls under selling expenses:

g. Cost of normal scrap from production of airplane body

h. Hourly wages of employees that assemble the airplane

i. Salary of the marketing department personnel

m. Salary of plant manager

n. Cost of miniature replicas of the airplane used to promote and market the airplane

o. Human resources department costs for the year

q. Annual fee to a celebrity to promote the aircraft

w. Oil to lubricate factory equipment

x. Masks for use by painters in painting the airplane body

z. Salary of chief financial officer

The following falls under an administrative expenses:

a. Salary of chief compliance officer of company

d. Annual bonus paid to the chief operating officer of the company

s. Yearly cost of the maintenance contract for robotic equipment

v. Special advertising campaign in Aviation Worldmagazine.

Explanation:


Related Questions

In terms of communicative competency, effective leaders attempt to force their own ideas into group discussions.
a. True
b. False

Answers

Answer:

False

Explanation:

Purple Panda Products Inc. is considering a project that will require $650,000 in assets. The project will be financed with 100% equity. The company faces a tax rate of 30%. Assuming that the project generates an expected EBIT (earnings before interest and taxes) of $170,000, then Purple Panda’s anticipated ROE (return on equity) for the project will be:

a. 14.65%
b. 18.31%
c. 11.90%
d. 10.99%

Answers

Answer:

18.31%

Explanation:

Purple panda products incorporation has a shareholder's equity of $650,000

The tax rate is 30%

=30/100

= 0.3

The EBIT is $170,000

The first step is to calculate the net income

Net income= EBIT - tax

= $170,000-(0.3×170,000)

= $170,000-51,000

= 119,000

Therefore, the ROE can be calculated as follows

ROE= Net income/shareholder's equity

= 119,000/650,000

= 0.1831×100

= 18.31%

Hence the ROE is 18.31%

The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11200 gallons of direct materials that actually cost $42400 were used to produce 6000 units of product. The direct materials quantity variance for last month was

Answers

Answer:

$3,200 Favorable

Explanation:

For the computation of direct materials quantity variance first we need to find out the standard quantity which is shown below:-

Standard quantity = Standard quantity per unit × Number of units produced

= 2 gallon × 6,000

= 12,000

Direct materials quantity variance = (Standard quantity - Actual quantity) × Standard Price

= (12,000 - 11,200) × $4

= 800 × $4

= $3,200 Favorable

At the beginning of the school year, Priscilla Wescott decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:
Cash balance, September 1 (from a summer job) $8,220
Purchase season football tickets in September 110
Additional entertainment for each month 290
Pay fall semester tuition in September 4,400
Pay rent at the beginning of each month 400
Pay for food each month 220
Pay apartment deposit on September 2 (to be returned December 15) 600
Part-time job earnings each month (net of taxes) 1,020
a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign.
b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?
c. Priscilla can see that her present plan will not provide sufficient cash. If Priscilla did not budget but went ahead with the original plan, she would be $ short at the end of December, with no time left to adjust.

Answers

Answer:

a) Priscilla Wescott's

Cash budget

                                                                  Months

                                        Sept.            Oct.             Nov.           Dec.

beginning balance          8,220         3,220          3,330          3,340

football tickets                -110

other entertainment       -290            -290            -290            -290

semester tuition             -4,400

rent                                  -400            -400            -400            -400

food                                 -220            -220            -220            -220

apartment deposit          -600                                                     600

part time jobs earnings   1,020          1,020           1,020           1,020

ending balance                3,220         3,330           3,340          4,150

b) This is a static budget because it is being prepared in advance. A flexible budget adjusts a static budget to the real cash outflows and inflows.

c) The spring semester tuition costs $4,400 and she will only have $4,150, that means she will be $250 short.

________ are a means for consumers to share text, images, audio and video information with each other and with companies, and vice versa. Group of answer choices Social media Microsites Interstitials Pay-per-click ads Mobile ads

Answers

Answer:

Social Media.

Explanation:

Social media are increasingly being used by people and companies around the world. Through it it is possible to share information, photos, videos, social interactions, etc.

For companies, these platforms are more than just an interaction tool, they can act as a marketing channel that will strengthen the relationship with the consumer, in addition to attracting new customers, strengthening the brand image, engaging consumers, creating shopping desires, providing data on consumer trends, etc.

Social Media are a means for consumers to share text, images, audio and video information with each other.

The following information should be considered:

Social media are increasingly being used by people and companies around the world. Through it is possible to share information, photos, videos, social interactions, etc.

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Fill in the blanks to complete the sentence. Fixed costs equal $25,000; variable cost per unit is $2.50 and units produced are 10,000. The total budgeted costs is

Answers

Answer:

Total cost= $50,000

Explanation:

Giving the following information:

Fixed costs equal $25,000

Variable cost per unit is $2.50

Units produced=10,000

To calculate the total costs, we need to use the following formula:

Total cost= fixed costs + total variable cost

Total cost= 25,000 + 2.5*10,000

Total cost= $50,000

The Total budgeted cost when the fixed cost, variable cost per unit is given should be $50,000.

Calculation of the total budgeted cost:

Since

Fixed costs equal $25,000

The variable cost per unit is $2.50

Units produced=10,000

Now the following formula is used

Total cost= fixed costs + total variable cost

Total cost= 25,000 + 2.5*10,000

Total cost= $50,000

Basically we added the fixed cost and the total variable cost so that the total cost could come.

hence, The Total budgeted cost is $50,000.

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One significant way that blacks were able to enjoy economic independence was by settling in the West on federally provided public land.
a. True
b. False

Answers

False is your answer have a nice day

Bryce Co. sales are $801,000, variable costs are $465,100, and operating income is $287,000. What is the contribution margin ratio

Answers

Answer:

Contribution margin ratio= 0.42

Explanation:

Giving the following information:

Bryce Co. sales are $801,000

Variable costs are $465,100

Operating income is $287,000.

To calculate the contribution margin ratio, we need to use the following formula:

contribution margin ratio= (sales - variable cost) / sales

contribution margin ratio= (801,000 - 465,100) / 801,000

contribution margin ratio= 0.42

Suppose an industry earns a rate of return of 10%, which is twice as high as that of competitive industries, 5%. How much is the price overcharge of that industry, if its capital is valued at half its annual revenue

Answers

Answer:

Let us assume that both the industries are having an investment of $100,000

The profit of the given industry which is having 10% rate of return will be $100,000 * 10% = $10,000

The other industry which is having the Rate of return of 5% will earn a profit of $100,000 * 5% = $5000.

As the capital is just half of the revenue, it signifies that the total revenue will be $200,000 . So the same value of $10,000 will be 5% of the total revenue.  On the other hand, $5,000 would be 2.5% of total revenue.

Thus, the first stated industry will charge 2.5% more than the other industry.

​Keith, an employee of​ Sunbeam, Inc., has gross salary for May of​ $15,000. The entire amount is under the OASDI limit of​ $118,500 and thus subject to FICA. He is also subject to federal income tax at a rate of​ 20%. Which of the following is a part of the journal entry to record the disbursement of his net​ pay? (Assume a FICAOASDI Tax of​ 6.2% and FICAMedicare Tax of​ 1.45%.) (Round the final answer to the nearest​ dollar.)

Answers

Answer:

there are no options listed, but the journal entry to record Keith's salary should be:

May 31, wages expense

Dr Wages expense 15,000

Dr FICA taxes expense 1,147.50

Dr FUTA taxes expense 900

    Cr Federal income taxes withheld payable 3,000

    Cr FICA OASDI taxes withheld payable 930

    Cr FICA Medicare taxes withheld payable 217.50

    Cr FICA OASDI taxes payable 930

    Cr FICA Medicare taxes payable 217.50

    Cr Wages payable 10,852.50

I didn't include SUTA taxes or any other discount (e.g. health insurance, IRA contributions, union contributions, etc.) because sometimes they do not exist, but the previous ones always exist.

Planet Company had operating income of $12,000, average operating assets of $125,000, and sales of $45,000. What is Planet's return on investment (ROI)

Answers

Answer:

36.36%

Explanation:

Return on investment is given as;

Profit / Cost of goods sold × 100%

Given that profit is $12,000 and sales is $45,000 ;

Cost of goods sold

= $45,000 - $12,000

= $33,000

Therefore, return on investment is

= 12,000 / 33,000 × 100%

= 36.36%

You decide to invest in a portfolio consisting of 30 percent Stock A, 30 percent Stock B, and the remainder in Stock C. Based on the following information, what is the expected return of your portfolio? State of Economy Probability of State Return if State Occurs of Economy Stock A Stock B Stock C Recession .17 - 18.8 % - 3.9 % - 22.8 % Normal .45 10.2 % 8.5 % 17.1 % Boom .38 28.6 % 15.8 % 31.7 %

Answers

Answer:

Portfolio return = 0.127744 or 12.7744% rounded off to 12.77%

Explanation:

The portfolio return is a function of the weighted average of the individual stocks returns' that form up the portfolio. The formula for portfolio return is,

Portfolio return = wA * rA  +  wB * rB  +  ...  +  wN * rN

Where,

w represents the weight of each stockr represents the return of each stock

To calculate the expected return of portfolio, we first need to calculate the individual stock returns.

The expected rate of return of individual stocks can be calculated as follows,

r = pA * rA  +  pB * rB + ... + pN * rN

Where,

pA, pB and so on represents the probability of an event or return to occur rA, rB and so on are the return in different events

For Stock A

rA = 0.17 * -0.188  +  0.45 * 0.102  +  0.38 * 0.286

rA  = 0.12262 or 12.262%

For Stock B

rB = 0.17 * -0.039  +  0.45 * 0.085  +  0.38 * 0.158

rB  = 0.09166 or 9.166%

For Stock C

rC = 0.17 * -0.228  +  0.45 * 0.171  +  0.38 * 0.317

rC  = 0.15865 or 15.865%

Portfolio return = 0.3 * 0.12262  +  0.3 * 0.09166  +  0.4 * 0.15865

Portfolio return = 0.127744 or 12.7744% rounded off to 12.77%

The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: 3D Printer Truck Amount of investment $32,000 $40,000 Useful life 4 years 9 years Estimated residual value 0 0 Estimated total income over the useful life $3,520 $14,400 Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place. 3D Printer 55 % Truck 8 %

Answers

Answer:

3D Printer 55 % Truck 8 %

Explanation:

The formula to compute the average rate of return for each proposal is shown  below:

The average rate of return = Average net income ÷ Average investment

Particulars                         3D printer         Truck

Average net income (a)           $880                     $1,600

                                        ($3,520 ÷ 4 years)      ($14,400 ÷ 9 years)

Average investment (b)   $16,000                         $20,000

                                         ($32,000 ÷ 2)              ($40,000 ÷ 2)

Average rate of return (a ÷ b)     55%                               8%

"A customer has an existing margin account that shows the following: Long Market Value: $50,000 Debit Balance: $30,000 The market value declines to $30,000, the customer is sent a maintenance call, which the customer wishes to meet by depositing fully paid stock. The amount of stock that must be deposited is:"

Answers

Answer:

The amount of stock that must be deposited is $10,000.

Explanation:

Generally, the minimum margin is 25% of the Debit Balance. This implies that the account of the customer will receive a maintenance call for 25% of $30,000 which is $7,500 as a cash deposit.

Note that a maintenance call refers to a call to request a customer to provide additional funds when the market value of securities in his margin account has fallen below an established minimum.

However, the customer can decide to deposit other fully paid stock to meet the maintenance call of $7,500 instead of depositing cash. The minimum market value of securities needed in the account can be calculated by dividing the Debit balance by 75%, i.e.

Minimum market value of securities needed = $30,000 / 75% = $40,000

Since there is a $30,000 worth of securities already in the account, the customer will have to deposit additional $10,000 worth of securities, i.e.:

The amount of stock that must be deposited = Minimum market value of securities needed - Debit balance = $40,000 - $30,000 = $10,000

Therefore, the amount of stock that must be deposited is $10,000.

based on the characteristics of constructive conflicts, which of the following would help a manager create constructive conflicts during a debate?
1. Support the weaker members during a debate
2. Explain conflict in terms of interpersonal incompatabilities
3. Support the stronger memebrs during the debate
4. Keep the debate focused on the issue
5. Maintain competitive oreientation on the debate

Answers

Answer:

The correct answer is: 4. Keep the debate focused on the issue

Explanation:

A constructive conflict can be understood as different points of view that arise in an organization on the same issue.

Therefore, it can be a great way for the organization to enrich itself with new ideas, thoughts and different ways of carrying out actions that will help the organization to achieve its objectives and goals.

Therefore, the most suitable alternative for building a constructive conflict during a debate is for the manager to always focus on the issue discussed, and not for the debate to turn to support due to interpersonal relationships.

The Peabody Company has 7 year MACRS property with an original cost basis of $1,700,000. Calculate the ending book value at Year 4.

Answers

Answer: $531,080

Explanation

The Modified Accelerated Cost Recovery System (MACRS) is a depreciation schedule for assets and can be based on various year denominations. This one is of a 7 year type and the rates are specified below;

The ending book value at the end of year 4 would be;

= Original Cost - Accumulated Depreciation

= 1,700,000 - (1,700,000 * ( 14.29% + 24.49% + 17.49% + 12.49%))

= 1,700,000 - (1,700,000 * 68.76%)

= 1,700,000 - 1,168,920‬

= $531,080

With regard to consideration in a sales contract, the UCC differs from the common law in that:_______
A) terms of a sales contract may be modified without additional consideration.
B) consideration is not required in sales contracts
C) terms in a sales contract may be modified as long as additional consideration is provided.
D) consideration exchanged must be equal or very closely equal in sales contracts.

Answers

Answer:

A) terms of a sales contract may be modified without additional consideration.

Explanation:

Generally speaking, common law applies to everybody in an equal manner, i.e. the law is the same for everyone. While UCC rules vary depending if the parties involved are merchants or not. UCC has two standards, one that applies to merchants and another one that applies to everyone else.

Common law applies to all contracts that are not covered by UCC rules. UCC rules only apply to the sale of goods and this doesn't include money or securities. Under UCC rules, new consideration is not a requirement to modify an existing contract. E.g. a buyer places an order for 3,000 units, but the seller only has 2,000 units available. The seller can send the 2,000 units and if the buyer accepts them, a new contract is formed.

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of ? 1000, 25 years to maturity, and a coupon rate of 6.4 percent paid annually. If the yield to maturity is 7.5 percent, what is the current price of the bond?

Answers

Answer:

Bond Price = $877.3835955 rounded off to $877.380

Explanation:

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and r or YTM will be,

Coupon Payment (C) = 0.064 * 1000 = $64

Total periods (n)= 25

r or YTM = 7.5% or 0.075

The formula to calculate the price of the bonds today is attached.

Bond Price = 64 * [( 1 - (1+0.075)^-25) / 0.075]  +  1000 / (1+0.075)^25

Bond Price = $877.3835955 rounded off to $877.380

The current price of the bond is $877.38.

Given that,

The par value of $1,000.The NPER is 25 years.The coupon rate is 6.4%, PMT = 6.4% of $1,000 = $64.The RATE is 7.5%.

Based on the above information, the calculation is to be shown in the attachment.

Therefore we can conclude that The current price of the bond is $877.38.

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Wood Co.'s dividends on noncumulative preferred stock have been declared but not paid. Wood has not declared or paid dividends on its cumulative preferred stock in the current or the prior year, and has reported a net loss in the current year. For the purpose of computing basic earnings per share, how should the income available to common stockholders be calculated

Answers

Answer:

Once the preferred dividends have been declared, they must be included in the calculation for the earnings per share (EPS) formula: EPS = (net income - preferred dividends) / average shares outstanding.

When the dividends are declared the following journal entry must be made:

Dr Retained earnings X

    Cr Preferred dividends payable X

Net income is reported using the retained earnings account, and once the retained earnings account decreases, the preferred dividends become a liability.

Cullumber Corporation had 312,000 shares of common stock outstanding on January 1, 2017. On May 1, Cullumber issued 29,700 shares.

(a) Compute the weighted-average number of shares outstanding if the 29,700 shares were issued for cash.

Weighted-average number of shares outstanding $



(b) Compute the weighted-average number of shares outstanding if the 29,700 shares were issued in a stock dividend.

Weighted-average number of shares outstanding $

Answers

Answer:

a. Issued for Cash = ($312,000 * 12/12) + ($29,700 * 8/12)

= $312,000 + $19,800

= $331,800

b. Issued in a stock dividend: Shares issued in the stock dividend are assumed outstanding from the beginning of  the year

= ($312,000 * 12/12) + ($29,700 * 12/12)

= $312,000 + $29,700

= $341,700

Which of the following is an advantage of job specialization? 1 point A. The quality of work increases. B. Jobs can be mastered quickly. C. Employees are more involved with their jobs. D. The work is less repetitive. E. Task specialization has no clear advantages to the organization

Answers

Answer: B. Jobs can be mastered quickly.

Explanation:

Job specialization is when the employees in an organization focuses and concentrates on one particular aspect in a organization. Specialization makes employees more efficient and also effective at their role.

Also, jobs can be mastered quickly since the employees typically focuses on one particular aspect in the organization.

(a) What alternative formats could P&G have adopted for its balance sheet? Which format did it adopt? (b) Identify the various techniques of disclosure P&G might have used to disclose additional pertinent financial information. Which technique does it use in its financials? (d) What were P&G's cash flows from its operating, investing, and financing activities for 2017? What were its trends in net cash provided by operating activities over the period 2015 to 2017? Explain why the change in accounts payable and in accrued and other liabilities is added to net income to arrive at net cash provided by operating activities.

Answers

Answer:

P&G 2017 K-10:

a) Alternative formats for P&G Balance Sheet:

1. Report Format: Assets and Liabilities and Equity are listed from up to down.

2. Account Format: Assets and Liabilities and Equity are stated side by side.

3. Liquidity Format: The most liquid assets are listed first and then followed by permanent assets, and the same for liabilities.

4. Permanency Format: Noncurrent assets are stated first before current assets, and the same for liabilities.

P&G reported under US GAAP adopted the Report Format and listed balance sheet items according to their liquidity.

b) Techniques of disclosure of additional financial information:

1. Parenthetical Explanation

2. Notes to the Financial Statements

3. Cross-referencing

4. Valuation Allowances, e.g allowances for doubtful accounts, accumulated depreciation, etc.

5. Supporting Schedules

6. Comparative Statements, with about three years of financial statements.

c) P&G used Notes to the Financial Statements with supporting schedules and comparative statements.

d) 2017 Cash flows from:

1. Operating Activities = $12,753 million

2. Investing Activities = ($5,689 million)

3. Financing Activities = ($8,568 million)

e. Trends in net cash provided by operating activities over the period 2015 to 2017:

Net cash provided by operating activities:

2015 = $14,608 million

2016 = $15,435 million

2017 = $12,753 million

It increased from 2015 to 2016 and decreased in 2017 as stated above.

f) The change in accounts payable, accrued, and other liabilities is added to net income to arrive at net cash provided by operating activities because they involve cash outflows for the payment of purchases for goods and services used in generating the revenue that produces the net income.

Explanation:

P&G as a US headquartered entity reported under US GAAP with the adoption of Balance Sheet instead of reporting under IFRS with the adoption of Statement of Financial Position. P&G called its Income Statement "Consolidated Statement of Earnings" instead of the IFRS "Consolidated Income Statement."  Apart from nomenclature, the formats and disclosures are similar.

Selected data concerning operations of Cascade Manufacturing Company for the past fiscal year follow:

Raw materials used ..... $300,000

Total manufacturing costs charged to production during the year (includes raw materials, direct labor, and manufacturing overhead applied at a rate of 60 percent of direct labor costs) ..... 681,000

Cost of goods available for sale ...... 826,000

Selling and general expenses ...... 30,000

Beginning Inventories

Raw materials ...... $70,000

Work-in-process...... 85,000

Finished goods ...... 90,000

Ending Inventories

Raw materials ...... $80,000

Work-in-process ...... 30,000

Finished goods ....... 110,000

Determine each of the following:

a. Cost of raw materials purchased

b. Direct labor costs charged to production

c. Cost of goods manufactured

d. Cost of goods sold

Answers

Answer:

a.   Purchases $310,000

b.     Direct labor  $ 238,125

c. Cost of goods manufactured $ 736,000

d. Cost of goods sold $ 716,000

Explanation:

Cascade Manufacturing Company

Raw materials used ..... $300,000

Add Raw materials Ending  ...... $80,000

Less Raw materials  Beginning...... $70,000

a.   Purchases $310,000

Add Raw materials Ending to Raw materials used and subtract  Raw materials  Beginning to get  Raw materials  Purchases.

Total manufacturing costs $  681,000

Less Raw materials used ..... $300,000

Conversion Costs  $ 381,000

Conversion Costs = Direct Labor + Factory Overhead

$ 381,000=  x + 0.6 x

$ 381,000= 1.6x

b.   x=  Direct labor = $ 381,000/1.6=  $ 238,125

Factory Overhead= 0.6 *$ 238,125= $ 142875

Find Conversion Costs and then apply the ratio to get the direct labor costs.

c.

Cascade Manufacturing Company

Cost of goods manufactured

Raw materials  Beginning...... $70,000

Add Purchases $310,000

Less Raw materials Ending  ...... $80,000

Raw materials used ..... $300,000

Add Direct labor   $ 238,125

Factory Overhead $ 142875

Total manufacturing costs $  681,000

Add Work-in-process Beginning...... 85,000

Cost of goods available for manufacture $ 766,000

Less Work-in-process Ending...... 30,000

Cost of goods manufactured $ 736,000

Add and subtract as above to get the Cost of goods manufactured.

d.  Cascade Manufacturing Company

Cost of goods sold

Raw materials  Beginning...... $70,000

Add Purchases $310,000

Less Raw materials Ending  ...... $80,000

Raw materials used ..... $300,000

Add Direct labor   $ 238,125

Factory Overhead $ 142875

Total manufacturing costs $  681,000

Add Work-in-process Beginning...... 85,000

Cost of goods available for manufacture $ 766,000

Less Work-in-process Ending...... 30,000

Cost of goods manufactured $ 736,000

Add Finished goods Beginning...... 90,000

Cost of goods available for sale  $ 826,000

Less Finished goods Ending....... 110,000

Cost of goods sold $ 716,000

Add and subtract as above to get the Cost of goods sold.

Revenue of $1,000 was collected in advance from customers for goods and was recorded as sales revenue. At year end, $600 of the revenue collected in advance is earned. The adjusting entry includes a:

Answers

Answer:

Please see below

Explanation:

The adjusting entries include

Revenue A/c. Dr. $400

To Deferred revenue A/c. Cr $400

($1,000 - $600)

* When a company makes a journal entry to record revenue that it had previously collected in advance, which was recorded as sales revenue, then the adjusting entry to record portion of the earned revenue received in advance would include a debit to revenue a/c

Sauer Milk Inc. wants to determine the minimum cost of capital point for the firm. Assume it is considering the following financial plans: Cost (aftertax) Weights Plan A Debt 3.0 % 15 % Preferred stock 6.0 10 Common equity 10.0 75 Plan B Debt 3.2 % 25 % Preferred stock 6.2 10 Common equity 11.0 65 Plan C Debt 4.0 % 35 % Preferred stock 6.7 10 Common equity 10.6 55 Plan D Debt 7.0 % 45 % Preferred stock 7.6 10 Common equity 12.6 45 a-1. Compute the weighted average cost for four plans.

Answers

Answer:

Plan A = 8.55%

Plan A =8.57%

Plan A =7.9%

Plan A =6.58%

Explanation:

The weighted average cost of capital can be computed by multiplying the Cost of capital (after tax) with the weights. The weighted average cost for four plans are as follows

WACC = Cost of capital x Weights

PLAN A

                                Weights      Cost of capital      WACC

Debt                         3.0 %                    15 %                0.45%    

Preferred stock       6.0                        10%                0.6%

Common equity      10.0                      75%               7.5%

WACC                                                                          8.55%

PLAN B

                                Weights      Cost of capital      WACC

Debt                         3.2 %                  25%                0.8%    

Preferred stock       6.2                      10%                0.62%

Common equity      11.0                      65%               7.15%

WACC                                                                         8.57%

PLAN C

                                Weights      Cost of capital      WACC

Debt                          4.0 %                   35 %                1.4%    

Preferred stock        6.7                        10%                0.67%

Common equity       10.6                      55%               5.83%

WACC                                                                          7.90%

PLAN D

                                Weights      Cost of capital      WACC

Debt                         7.0 %                   45 %                3.15%    

Preferred stock       7.6                       10%                 0.76%

Common equity       12.6                     45%                5.67%

WACC                                                                          6.58%

When auto manufacturer BMW purchased the RollsRoyce brand​ name, BMW had to hire and train a new staff of assembly workers. The new workers were paid per​ hour, worked a total of ​hours, and produced cars. BMW budgeted for a standard labor rate of per hour and direct labor hours per car. What is the direct labor rate variance for the RollsRoyce ​division?

Answers

Complete Question:

When auto manufacturer BMW purchased the Rolls-Royce brand name, BMW had to hire and train a new staff of assembly workers. The new workers were paid $25 per hour, worked a total of 7,500 hours, and produced 2,000 cars. BMW budgeted for a standard labor rate of $27 per hour and 1.25 direct labor hours per car.

What is the direct labor rate variance for the Rolls-Royce division?

Answer:

$15,000 Favorable Variance

Explanation:

As we know that:

Labor Rate Variance = (Actual Rate per Hour − Standard Rate per Hour) * Actual Hours Worked

If we consider the parenthesis elements in the formula, we can decide whether the variance is favorable or adverse. If the actual cost is higher than the budget (standard) then the variance (difference) is adverse and vice versa.

Here

Actual rate per hour is $25 per Hour

Standard rate per hour is $27 per Hour

Actual Hours Worked are 7,500 Hour

By putting values, we have:

Labor Rate Variance = ($25 − $27) * 7,500 Hrs

Labor Rate Variance = ($2 per share) * 7,500 Hrs

Labor Rate Variance = $15,000 Favorable

As the actual labor rate is lower than the standard rate hence the variance is favorable.

It is March 31, 2014. What is the latest reported number of E-Bay shares beneficially owned by the company’s CEO? Please provide your answer without comma separator or decimal (Ex: 23456326563)

Answers

Answer: 2663844

Explanation:

According to page 22 of eBay's March 2014 Definitive Proxy statement on the SEC's website, the President and CEO Mr John J. Donahoe, beneficially owned 2,663,844 shares in the company. This includes,  2,083,628 shares that he can acquire pursuant to some Options and 35,306 in Restricted stock units.

James hires Franco for a painting job. Their contract explicitly states that Franco's employment can be terminated if he is employed by another party during the contract period. Two weeks into the job, James finds out that Franco is also working for a painting agency two blocks away and terminates his employment. This is an instance of ________.

Answers

Answer:

Condition subsequent.

Explanation:

This is rampant on agreement that deal with contracts as it is seen to be a situation that terminates a previously valid contract. Closely related legal concepts in cases of this kind are treated as conditions precedent and conditions concurrent. A condition subsequent in certain contracts are known to trigger the termination of the agreement of the said contract and also eliminates rights and obligations in the ends of the two parties. It is seen also in cases that when it occurs, it terminates any duty to perform and can also terminate rights and interests that were present under the terms of the contract.

Employees in a department are considered a team only when they directly interact and coordinate work activities with each other.

a. True
b. False

Answers

Answer:

True

Explanation:

Team can be defined as way in which group of people or individuals come together in one accord in order to carryout a task or an assignment for the purpose of achieving their aim,goals or objectives, which is why working together as a team either in a company or an organisation is vital and paramount because it help to create unity among employees and to enable the employees to interact and effectively coordinate their work activities with one another which will lead to the growth and success of the organisation or company.

The firm has a target debt-equity (D/E) ratio of 0.76. Its cost of equity is 15.3 percent, and its pretax cost of debt is 9 percent. What is the WACC given a tax rate of 21 percent

Answers

Answer:

11.76%

Explanation:

The computation of the Weighted average cost of capital (WACC) is shown below:

= Weightage of debt × cost of debt × ( 1 - tax rate)+ (Weightage of  common stock) × (cost of common stock)

= (0.76 ÷ 1.76 × 9%) × ( 1 - 21%) +  (1 ÷ 1.76 × 15.3%)

= 3.07% + 8.69%

= 11.76%

Hence, the WACC is 11.76%

We simply multiplied the weight of capital stucture with its cost

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