Answer:
The best question to ask the CEO's personal assistant while you are waiting for the CEO is:
Could you tell me about your work environment?
Explanation:
This question will enable you to build rapport with the personal assistant and to learn more about the organization. It will expose the personal assistant's job satisfaction level, the job setting, and social features, including physical conditions for a worker at the organization to fulfill her responsibilities. The question will also expose the general employee feelings of wellbeing, workplace relationships, productivity efficiency, and employee health. It will expose the organization culture, which is an important determinant of organizational success.
A retail store had sales of $44,900 in April and $55,000 in May. The store employs eight full-time workers who work a 40-hour week. In April the store also had eight part-time workers at 12 hours per week, and in May the store had eleven part-timers at 17 hours per week (assume four weeks in each month). Using sales dollars as the measure of output, what is the percentage change in productivity (dollars output per labor hour) from April to May
Answer:
0.52%
Explanation:
Productivity in April = $44,900 / (((8*40) + (8*12)) * 4)
Productivity in April = $44,900 / ((320 + 96) * 4)
Productivity in April = $44,900 / (416 * 4)
Productivity in April = $44,900 / 1664 hours
Productivity in April = $26.98 per hour
Productivity in May = $55,000 / (((8*40) + (11*17)) * 4)
Productivity in May = $55,000 / ((320 + 187) * 4)
Productivity in May = $55,000 / (507 * 4)
Productivity in May = $55,000 / 2028 hours
Productivity in May = $27.12 per hour
% increase in productivity per hour = ($27.12 - $26.98) / $26.98
% increase in productivity per hour = $0.14 / $26.98
% increase in productivity per hour = 0.0052
% increase in productivity per hour = 0.52%
M Corporation has provided the following data concerning an investment project that it is considering:
Initial investment $230,000
Annual cash flow $132,000 per year
Expected life of the project 4 years
The net present value of the project is closest to:____.
a. $250,000.
b. $144,128.
c. $(131,000).
d. $(144,128).
Answer: $170,923.60
Explanation:
Missing information is that the discount rate is 12%.
As the cash inflow is constant, this can be termed an annuity. You just need to find the present value of an annuity for 4 years being discounted at 12%.
Present value of Annuity = Annuity * Present value interest factor of Annuity, 12%, 4 periods
= 132,000 * 3.0373
= $400,923.60
Net Present value = Present value of cash inflow - Initial investment
= 400,923.60 - 230,000
= $170,923.60
Options are for variant of question.
Big Red Motors, Inc., employs 15 personnel to market its line of luxury automobiles. The average car sells for $75,000, and a 6 percent commission is paid to the salesperson. Big Red Motors is considering a change to the commission arrangement where the company would pay each salesperson a salary of $1,600 per mont plus a commission of 2 percent of the sales made by that salesperson. What is the amount of total monthly car sales at whit Big Red Motors would be indifferent as to which plan to select?
Answer: $600,000
Explanation:
The commission earned per car in the initial arrangement is:
= 6% * Total cars sales
With the second arrangement the amount spent would be:
= Salary of employees + commission
= (15 * 1,600) + (2% * total car sales)
= 24,000 + (2% * car sales)
Assuming total car sales is x, relevant expression is:
6% * x = 24,000 + (2% * x)
0.06x = 24,000 + 0.02x
0.06x - 0.02x = 24,000
0.04x = 24,000
x = 24,000 / 0.04
x = $600,000
The closer the smoothing constant, ALPHA, is to 0 the greater the reaction to the most recent demand the greater the dampening, or smoothing, effect the more accurate the forecast will be the less accurate the forecast will be
Answer: the greater the dampening, or smoothing effect
Explanation:
The smoothing constant determines the level at which a forecast is influenced by previous observations. It simply determine the sensitivity of forecasts with regards to the changes in demand.
It should be noted that large values of α will lead to a scenario whereby forecasts will be more responsive to the more recent levels. On the other hand, the smaller values will result in a damping effect. Therefore, the closer the smoothing constant to α, the greater the dampening, or smoothing effect.
MC Qu. 101 The following information... The following information describes a company's usage of direct labor in a recent period. The direct labor rate variance is: Actual hours used 46,000 Actual rate per hour $ 16 Standard rate per hour $ 15 Standard hours for units produced 48,000
Answer:
$46,000 Unfavorable
Explanation:
Calculation to determine what The direct labor rate variance is:
Using this formula
Direct labor rate variance = Actual hours * ( Actual Rate - Standard Rate)
Let plug in the formula
Direct labor rate variance=46000*($16- $15)
Direct labor rate variance=46,000*$1
Direct labor rate variance=$46,000 Unfavorable
Therefore The direct labor rate variance is: $46,000 Unfavorable
Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither.
Statement Consumer Surplus Producer Surplus Neither
Even though I was willing to pay up to $83 for a watch, I bought a watch for only $75.
I sold a used textbook for $55, even though I was willing to go as low as $47 in order to sell it.
A local store was having a sale on sweaters, so I bought a jersey sweater for my brother.
Answer:
Consumer surplus
producer surplus
neither
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
The willingness to pay for the watch was $83 but the watch was bought for $75. There is a consumer surplus from the purchase
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
The least price the seller was willing to accept for the purchase was $47 but he was paid $55 for the textbook. This is a producer surplus
A permanent flood control dam is expected to have an initial cost of $2.8 million and an annual upkeep cost of $20,000. In addition, minor reconstruction will be required every 5 years at a cost of $200,000. As a result of the dam, flood damage will be reduced by an average of $180,000 per year. Using an interest rate of 6% per year, the conventional B/C ratio will be closest to:
Answer:
0.81
Explanation:
Present Value of annual Maintenance cost = $20,000 / 6% = $333,333.33
In five year time, $200,000 is required as major maintenance cost. So effective rate for 5 year = [(1 + 6%) ^ 5] - 1 = 1.3382 - 1 = 0.3382 = 33.82%. Present Value of 5 year cost = $200,000 / 33.82% = $200,000 / 0.3382 = $591,366.06
Total Present Value cost = $2,800,000 + $333,333.33 + $591,366.06 = $3,724,699.39.
Annual Cost = $3,724,699.39 * 6% = $223,481.96.
Benefit / Cost = $180,000 / $223,481.96
Benefit / Cost = 0.805434138845032
Benefit / Cost = 0.81
So, conventional B/C ratio is 0.81.
Corinne, an escrow agent, is preparing for the Thomas/Trenton closing in four days. Which of these documents will Corinne prepare? Unset starred question She'll prepare a seller net sheet to disclose the seller's net profit on the sale. Working with the lender, she'll prepare the Loan Estimate, which details the costs the buyer and seller will pay at closing. Working with the lender, she'll prepare the settlement statement, which details the costs the buyer and seller will have at closing. Working with the title company attorney, she'll prepare the preliminary title commitment.
The answer is "In collaboration with both the lender, she will write a settling declaration detailing the price to the buyers and sellers.", and the further calculation can be defined as follows:
A trust agreement is generally an arrangement between both the depositor, its buyer, usually the beneficiary, and us as trustees.The account holder shall, in accordance with the terms, deposit with us as a scroll agent a particular document or sum.In four days Corinne, the escrow agent, prepared for close Thomas / Trenton.In collaboration with both the lender, they would produce the settlement statement detailing that cost to be paid by the buyers and sellers to close those documents.Therefore, the "third option" is the only correct choice.Learn more:
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For a company with significant uncollectible receivables, the direct write-off method is unsuitable because ________. it overstates liabilities on the balance sheet it violates the matching principle it uses estimates for determining the bad debt expenses it is not allowed for tax reasons
Answer:
. it violates the matching principle
Explanation:
The direct write-off method can be regarded as accounting method whereby uncollectible accounts receivable are been written off as a bad debt.This method can be regarded as one involving the charging of bad debts to expense in a case whereby
individual invoices is been identified in that instance as uncollectible.
Matching principle imcan be regarded as accounting principle which states that expenses that is been incurred during a period needed to be recorded at this same particular period that related revenues are been earned. It is principle that stressed that expenses must be invited by businesses to earn revenues.
It should be noted that For a company with significant uncollectible receivables, the direct write-off method is unsuitable because it violates the matching principle .
Indentify two causes, a part from a increase in income, of an increase in demand for a product
Answer:
Rise in price of subsitute product.
Fall in price of complementory product.
Increase in number of consumers.
The fixed costs of the division were $193,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be:
Answer:
decrease in the operating income of $132,100
Explanation:
The computation of the impact on the operating income should be given below:
Sales $1,050,000
less: variable cost -$860,000
contribution margin $190,000
Less fixed cost (30% of $193,000) -$57,900
Impact on operating income $132,100
So there is a decrease in the operating income of $132,100
The government sector balance is equal to net taxes ________ government expenditure on goods and services. If that number is ________, a government sector surplus is lent to other sectors; if that number is ________, borrowing from other sectors must finance a government deficit.
Answer:
less
positive
negative
Explanation:
The government sector balance is income from taxes less government spending
Government sector deficit occurs when government spending exceeds income of the government.
When deficit increases, debt increases. This is because a deficit would need to be funded by additional borrowing
When there is a surplus, government spending is less than the income of the government. Government is able to lend to other sectors
Ayayai Corporation reported net cash provided by operating activities of $345,000, net cash used by investing activities of $145,000, and net cash provided by financing activities of $75,000. In addition, cash spent for capital assets during the period was $200,000. No dividends were paid. Calculate free cash flow.
Answer:
the free cash flow is $145,000
Explanation:
The computation of the free cash flow is given below:
The free cash flow is
= cash flow from operating activities - capital expenditures
= $345,000 - $200,000
= $145,000
hence, the free cash flow is $145,000
The same should be considered and relevant
The WRT Corporation makes collections on sales according to the following schedule:
25% in month of sale
65% in month following sale
5% in second month following sale
5% uncollectible
The following sales have been budgeted:
Sales
April $120,000
May $100,000
June $110,000
Budgeted cash collections in June would be:_____.
a. $27,500.
b. $98,500.
c. $71,000.
d. $115,500.
Answer:
Total cash collection June= $98,500
Explanation:
Giving the following information:
25% in month of sale
65% in month following sale
5% in second month following sale
5% uncollectible
The following sales have been budgeted:
Sales
April $120,000
May $100,000
June $110,000
Cash collection June:
Cash collection from June= 110,000*0.25= 27,500
Cash collection from May= 100,000*0.65= 65,000
Cash collection from April= 120,000*0.05= 6,000
Total cash collection June= $98,500
Suppose real GDP is forecasted to grow by 1.881.88 %, the velocity of money has been stable, and the Fed announces an inflation target of 2.502.50 %. What is the largest money growth rate the Fed could implement and still achieve its inflation target
Answer: 4.38%
Explanation:
Use the Quantity Theory of Money to find the growth rat:
MV = PY
ΔMoney supply + ΔVelocity = ΔPrice level + ΔEconomic output or GDP
Velocity is stable so is 0.
ΔMoney supply + 0 = 2.50% + 1.88%
ΔMoney supply = 4.38%
Internet là một thị trường hiệu quả hay không hiệu quả về giá?
Answer:
net là một thị trường hiệu quả hay không hiệu quả
Explanation:
Geoffrey is looking for a safe investment for $3,000 he received as a bonus. He is looking for an investment that will also help him deal with the effects of inflation. Which of the following options would you recommend that Geoffrey invest in?
a. Series EE bonds.
b. Series I bonds.
c. Commercial paper.
d. Junk bonds.
Answer:
Hence the correct option is option b. Series I bonds.
Explanation:
Series I bonds are going to be completing a fixed-rate Plus and adjustable-rate which can be adjusted with the inflation so if he's trying to find investment into a bond he should be choosing with series I Bonds, which can be adjusted with inflation effect.
The correct option is b) Series I bonds.
Series I bonds will have a fixed interest rate plus an interest on the outstanding that will be adjusted without inflation, thus if he is searching for a bond to participate in, he will have to go with series I bonds, which will then be modified with inflation.
All of the other possibilities are untrue.
Alternative (B) Series I bonds is the correct answer.
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Watermelon, Inc. provides the following data: 20X9 20X8 Cash $41,000 $25,000 Accounts Receivable, Net 102,000 62,000 Merchandise Inventory 72,000 50,000 Property, Plant, and Equipment, Net 181,000 120,000 Total Assets $396,000 $257,000 Additional information for the year ending December 31, 20X9: Net Credit Sales $550,000 Cost of Goods Sold 150,000 Interest Expense 25,000 Net Income 181,000 Calculate the rate of return on total assets for 20X9.
Answer:
the rate of return on total assets is 63.09%
Explanation:
The calculation of the rate of return on total assets is shown below:
Return on total Asset is
= {(Net Income + Interest Expense) ÷ Average Total assets} × 100
= {($181,000 + $25,000) ÷ ($396,000 + $257,000) ÷ 2} × 100
= $206,000 ÷ $326,500 × 100
= 63.09%
Hence, the rate of return on total assets is 63.09%
At the beginning of the year, a company had accounts receivable of $700,000 and an allowance for doubtful accounts with a credit balance of $60,000. During the current year, sales on account were $195,000 and collections on account were $115,000. Also during the current year, the company wrote off $11,000 in uncollectible accounts. At year-end, an analysis of outstanding accounts receivable indicated that the allowance for doubtful accounts should have a $72,000 credit balance so the company records the appropriate year-end adjusting entry. How much did the cash realizable value change during the current year
Answer:
$77,000
Explanation:
Calculation to determine How much did the cash realizable value change during the current year
First step
Ending accounts receivables = Beginning accounts receivables + Sales on account - collections on account - Write offs
Ending accounts receivables = $700,000 + $195,000 - $95,000 - $11,000
Ending accounts receivables= $789,000
Second step
Ending cash realizable value = Ending accounts receivables - Ending allowance for doubtful accounts
Ending cash realizable value = $789,000 - $72,000
Ending cash realizable value= $717,000
Now let determine the Change in cash realizable value
Change in cash realizable value = Ending cash realizable value - Beginning cash realizable value
Change in cash realizable value= $717,000 - 640,000
Change in cash realizable value= $77,000
Therefore How much did the cash realizable value change during the current year will be $77,000
Your father offers you a choice of $120,000 in 11 years or $48,500 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 11 percent, what is the present value of the $120,000
Answer:
$38,074
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 to 10 = 0
Cash flow in year 11 = $120,000
I = 11
PV = 38,074
To determine PV using a financial calculator take the following steps:
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 NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Given the choice, i would choose $48,500 today.
Mr A is unemployed but he decides to move out the labor market to stay at home and enjoy the rest of his life by inheritance. Other things equal, the action will decrease the unemployment rate. True or false? and why
Answer:
False
Explanation:
In general, the unemployment rate in the United States is obtained by dividing the number of unemployed persons by the number of persons in the labor force (employed or unemployed) and multiplying that figure by 100.
https://www.britannica.com › story
la·bor forceall the members of a particular organization or population who are able to work, viewed collectively.
"a firm with a labor force of one hundred people"
Dictionary
Definitions from Oxford Languages
briefly state and explain 6 major roles of CEO in an organisation
Answer:
A chief executive officer (CEO) is the highest-ranking executive in a company, whose primary responsibilities include making major corporate decisions, managing the overall operations and resources of a company, acting as the main point of communication between the board of directors (the board) and corporate .
MC Qu. 149 Trago Company manufactures... Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 30% of the next month's sales. It estimates that May's ending inventory will consist of 85,500 units. June and July sales are estimated to be 285,000 and 295,000 units, respectively. Trago assigns variable overhead at a rate of $2.30 per unit of production. Fixed overhead equals $405,000 per month. Compute the number of units to be produced and use this amount to compute the total budgeted overhead that would appear on the factory overhead budget for the month of June.
Answer:
$1067400
Explanation:
The computation of the number of units and factory overhead is given below:
units to be produced in june is
= ending inventory + sales - beginning inventory
= (30% of 295000) + 285000 - 85500
= 288000 Units
Now
Overheads budgeted for june
= variable overheads + fixed overheads
= (288000 × 2.3) + 405000
= 662400+405000
= $1067400
You plan to save $6,500 per year for the next 8 years. After the last deposit, you will keep the money in the account for 6 more years. The account will earn an interest rate of 6.8 percent. How much will there be in the account 14 years from today
Answer:
$98,254.57
Explanation:
Value after 8 years
Future Value of Annuity = P * ((1 + r)^n - 1 ) / r
Future Value of Annuity = 6500 * ((1 + 6.8%)^8 - 1) / (6.8%)
Future Value of Annuity = 6500 * [(1.69266113113-1) / 0.068]
Future Value of Annuity = 6500 * 10.18619
Future Value of Annuity = $66,210.24
Value after 14 years
FV = PV * (1 + r )^n
FV = 66210.26*(1+ 6.8%)^6
FV = 66210.26 * 1.483978
FV = $98,254.57
So, the amount that will be there in the account 14 years from today is $98,254.57.
Gross Private Domestic Investment $1,593
Personal Taxes 1,113
Transfer Payments 1,683
Taxes on Production and Imports 695
Corporate Income Taxes 218
Personal Consumption Expenditures 7,304
Consumption of Fixed Capital 1,393
US Exports 1,059
Dividends 434
Government Purchases 1,973
Net Foreign Factor Income 10
Undistributed Corporate Profits 141
Social Security Contributions 748
US Imports 1,483
Statistical Discrepancy 50
Refer to the accompanying national income data (in billions of dollars). Corporate profits are equal to
Multiple Choice
$793.
$702.
$575.
$444.
Answer: $793 billion
Explanation:
Following the information provided in the question, the corporate profit will be calculated as:
Undistributed corporate profits = 141
Add: Dividend = 434
Add: Corporate income taxes = 218
Corporate profit = $793
Therefore, the corporate profit is $793 billion
Frozen Gold is a fast-growing chain of ice cream shops. It has acquired an edge over its competitors through its ability to provide a wide array of unique flavors and a hip atmosphere in stores. This advantage of Frozen Gold best exemplifies a:_________.
A. markup.
B. resource flow.
C. capital gain.
D. core competency.
B.
Customers will have a variety of flavors to choose from
This advantage of Frozen Gold best exemplifies a core competency. Thus the correct option is D.
What is a core competency?Core competencies refer to unique abilities, skills, or characteristics which an organization carries in order to differentiate their goods from the competition and achieve a market advantage with the help of this.
This core competency can be anything like the process of manufacturing, promotion, advertising, product design, product features and so on which helps to identify the product.
In the given case, the core competency of ice cream shop is that they provide a wide array of flavors which is unique in nature as well as the atmosphere in their stores is also attractive which reflects their services to the customers.
Therefore, option D is appropriate.
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Dickinson Company has $11,880,000 million in assets. Currently half of these assets are financed with long-term debt at 9.4 percent and half with common stock having a par value of $8. Ms. Smith, Vice-President of Finance, wishes to analyze two refinancing plans, one with more debt (D) and one with more equity (E). The company earns a return on assets before interest and taxes of 9.4 percent. The tax rate is 40 percent. Tax loss carryover provisions apply, so negative tax amounts are permissable.
Under Plan D, a $2,970,000 million long-term bond would be sold at an interest rate of 11.4 percent and 371,250 shares of stock would be purchased in the market at $8 per share and retired.
Under Plan E, 371,250 shares of stock would be sold at $8 per share and the $2,970,000 in proceedswould be used to reduce long-term debt.
a. How would each of these plans affect earnings per share? Consider the current plan and the two new plans. (Round your answers to 2 decimal places.)
Current Plan Plan D Plan E
Earnings per share $ $ $
b-1. Compute the earnings per share if return on assets fell to 4.70 percent. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)
Current Plan Plan D Plan E
Earnings per share $ $ $
b-2. Which plan would be most favorable if return on assets fell to 4.70 percent? Consider the current plan and the two new plans.
Current Plan
Plan E
Plan D
b-3. Compute the earnings per share if return on assets increased to 14.4 percent. (Round your answers to 2 decimal places.)
Current Plan Plan D Plan E
Earnings per share $ $ $
b-4. Which plan would be most favorable if return on assets increased to 14.4 percent? Consider the current plan and the two new plans.
Current Plan
Plan E
Plan D
c-1. If the market price for common stock rose to $12 before the restructuring, compute the earnings per share. Continue to assume that $2,970,000 million in debt will be used to retire stock in Plan D and $2,970,000 million of new equity will be sold to retire debt in Plan E. Also assume that return on assets is 9.4 percent. (Round your answers to 2 decimal places.)
Current Plan Plan D Plan E
Earnings per share $ $ $
c-2. If the market price for common stock rose to $12 before the restructuring, which plan would then be most attractive?
Current Plan
Plan D
Plan E
Answer:
Dickinson Company
a) Effect of each plan on earnings per share:
Current Plan Plan D Plan E
Earnings per share $0.45 $0.36 $0.45
b-1) Earnings per share $0 $0 $0.14
b-2. Plan E would be most favorable if return on assets fell to 4.70%.
b-3 Earnings per share $0.93 $0.70 $0.76
b-4 Current Plan would be most favorable if return on assets increased to 14.4%.
c-1 Earnings per share $0.45 $0.36 $0.45
c-2 If the market price for common stock rose to $12 before the restructuring, Plan E would then be most attractive to the company as it would get additional paid-in capital of $1,485,000 ($4 * 371,250).
Explanation:
a) Data and Calculations:
Return on assets before interest and taxes = 9.4%
Tax rate = 40%
Current Plan Plan D Plan E
Assets $11,880,000 $11,880,000 $11,800,000
Long-term debt 5,940,000 5,940,000 2,970,000
New debt 2,970,000
Total debt 8,910,000
Common stock 5,940,000 5,940,000 8,910,000
Less repurchased shares (2,970,000)
New common stock 2,970,000
Interest rate of old debt 9.4% 9.4% 9.4%
Interest rate for new debt 11.4%
Stock par value $8 $8 $8
Return on assets before
interest and taxes $1,116,720 $1,116,720 $1,116,720
Interest expense 558,360 896,940 298,180
Return before taxes $558,360 $219,780 $837,540
Tax rate = 40% 223,344 87,912 335,016
Return after taxes $335,016 $131,868 $502,524
Shares outstanding 742,500 371,250 1,113,750
Earnings per share $0.45 $0.36 $0.45
Return on assets falling to 4.70%
Return on assets before
interest and taxes $558,360 $558,360 $558,360
Interest expense 558,360 896,940 298,180
Return before taxes $0 -$338,580 $260,180
Tax rate = 40% 0 0 104,072
Return after taxes $0 $0 $156,108
Shares outstanding 742,500 371,250 1,113,750
Earnings per share $0 $0 $0.14
Return on assets increasing to 14.4%:
Return on assets before
interest and taxes $1,710,720 $1,710,720 $1,710,720
Interest expense 558,360 896,940 298,180
Return before taxes $1,152,360 $431,380 $1,412,540
Tax rate = 40% 460,944 172,552 565,016
Return after taxes $691,416 $258,828 $847,524
Shares outstanding 742,500 371,250 1,113,750
Earnings per share $0.93 $0.70 $0.76
Market price for common stock rose to $12 before restructuring:
Return on assets before
interest and taxes $1,116,720 $1,116,720 $1,116,720
Interest expense 558,360 896,940 298,180
Return before taxes $558,360 $219,780 $837,540
Tax rate = 40% 223,344 87,912 335,016
Return after taxes $335,016 $131,868 $502,524
Shares outstanding 742,500 371,250 1,113,750
Earnings per share $0.45 $0.36 $0.45
eBook
Show Me How
Units
1
Cost Flow Methods
The following three identical units of Item LO3V are purchased during April:
Item Beta
Cost
April 2
Purchase
$270
April 15
Purchase
272
April 20
Purchase
Total
$816
Average cost per unit
($816 + 3 units)
Assume that one unit is sold on April 27 for $345. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b)
last-in, first-out (LIFO); and (c) weighted average cost method.
1
1
274
3
$272
Gross Profit
Ending Inventory
a. First-In, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost
Answer:
Cost Flow Methods
Gross profit and ending inventory on April 30 using:
Gross Profit Ending Inventory
(a) first-in, first-out (FIFO) $75 $546
(b) last-in, first-out (LIFO) $71 $542
(c) weighted average cost method $73 $544
Explanation:
a) Data and Calculations:
Item Beta Cost
April 2 Purchase $270
April 15 Purchase 272
April 20 Purchase 274
Total $816
Average cost per unit = $272 ($816/ 3 units)
Assume that one unit is sold on April 27 for $345
Gross profit and ending inventory on April 30 using:
Gross Profit Ending Inventory
(a) first-in, first-out (FIFO) $75 ($345 - $270) $546 ($816 - $270)
(b) last-in, first-out (LIFO) $71 ($345 - $274) $542 ($816 - $274)
(c) weighted average cost method $73 ($345 - $272) $544 ($816 - $272)
Ending inventory = Cost of goods available for sale Minus Cost of goods sold
Gross profit = Sales Minus Cost of goods sold
During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. How much raw materials were transferred to production during 2017 for Benson
Answer:
Raw Materials transferred to production during 2017 $1,466,000
Explanation:
The computation of the raw material transferred to production is given below:
Opening raw material 2016 $80,000
Add : Purchase of Raw material $1,450,000
Less Closing Stock raw material 2017 $64,000
Raw Materials transferred to production during 2017 $1,466,000
Hence, the same should be relevant
Paige Company estimates that unit sales will be 10,700 in quarter 1, 12,400 in quarter 2, 14,600 in quarter 3, and 18,700 in quarter 4. Using a sales price of $83 per unit. Prepare the sales budget by quarters for the year ending December 31, 2017.
Answer:
From the attached excel file, we have:
Quarter 1 Sales Value = $888,100
Quarter 2 Sales Value = $1,029,200
Quarter 3 Sales Value = $1,211,800
Quarter 4 Sales Value = $1,552,100
Year = $4,681,200
Explanation:
Note: See the attached excel file for the the sales budget by quarters for the year ending December 31, 2017.
From the attached excel file, we have:
Quarter 1 Sales Value = $888,100
Quarter 2 Sales Value = $1,029,200
Quarter 3 Sales Value = $1,211,800
Quarter 4 Sales Value = $1,552,100
Year = $4,681,200
