Answer:
Waterway or Shamrock Company
Journal Entries:
Bundle A:
Debit Cash $46,900
Credit Tablet Revenue $20,665
Credit Annual Internet Access Revenue $8,745
Credit Deferred Revenue: Internet Access $17,490
To record revenue from Bundle A.
Debit Cost of Sale of Tablets $15,700
Credit Tablet Inventory $15,700
To record the cost of tablets sold.
Bundle B:
Debit Cash $126,280
Credit Tablet Revenue $43,545
Credit Annual Tablet Service Plan $9,151
Credit Annual Internet Access Revenue $18,428
Credit Deferred Revenue: Service Plan $18,300
Credit Deferred Revenue: Internet Access $36,856
To record revenue from Bundle B.
Debit Cost of Sale of Tablets $34,540
Credit Tablet Inventory $34,540
To record the cost of tablets sold.
Explanation:
a) Data and Calculations:
Bundle A contract = $469
Tablet standalone selling price = $230 (Total = $23,000 ($230 * 100)
Cost of tablet = $157 (Total costs of 100 tablets = $15,700)
Internet access service standalone selling price = $292 (Total = $29,200)
Total standalone selling price per bundle = $522 (Total = $52,200)
Contracts signed = 100
Revenue received = $46,900
Revenue from Tablet = $23,000/$52,200 * $46,900 = $20,665
Revenue from Internet Access = $29,200/$52,200 * $46,900 = $26,235
Annual interest access = $8,745 ($26,235/3)
Bundle B contract = $574
Tablet standalone selling price = $230 (Total = $50,640 ($230 * 220)
Cost of tablet = $157 (Total costs = $34,540 ($257 * 220)
3-year Tablet Service Plan standalone selling price = $145 (Total = $31,900 ($145 * 220)
Internet access service standalone selling price = $292 (Total = $64,240 ($292 * 220)
Total standalone selling price per bundle = $667 (Total = $146,740 ($667 * 220)
Contracts signed = 220
Revenue received = $126,200
Revenue from Tablet = $50,600/$146,740 * $126,280 = $43,545
Revenue from 3-year Tablet Service Plan = $31,900/$146,740 * $126,280 = $27,452
Annual revenue = $9,151 ($27,452/3)
Revenue from Internet Access = $64,240/$146,740 * $126,280 = $55,283
Annual revenue from internet access = $18,428 ($55,283/3)
Required: Determine the specific eight- or nine-digit Codification citation (XXX-XX-XX-XX) that describes the following items: 1. If it is only reasonably possible that a contingent loss will occur, the contingent loss should be disclosed. 2. Criteria allowing short-term liabilities expected to be refinanced to be classified as long-term liabilities. 3. Accounting for the revenue from separately priced extended warranty contracts. 4. The criteria to determine if an employer must accrue a liability for vacation pay.
Answer:
The codes for the Financial Accounting Standards Board (FASB) Accounting Standards Codification can be found on the FASB website.
The format is (XXX-XX-XX-XX).
The first XXX is the Topic.
The first XX is the Subtopic
The second XX is the Section
The third XX or X is the Paragraph.
The Codes for the following are:
1. If it is only reasonably possible that a contingent loss will occur, the contingent loss should be disclosed. 450-20-50-3
Topic ⇒ Contingencies
Subtopic ⇒ Loss Contingencies
Section ⇒ Disclosure
2. Criteria allowing short-term liabilities expected to be refinanced to be classified as long-term liabilities. 470-10-45-14
Topic ⇒ Debt
Subtopic ⇒ Overall
Section ⇒ Other Presentation Matters
3. Accounting for the revenue from separately priced extended warranty contracts. 605-20-25-3
Topic ⇒ Revenue Recognition
Subtopic ⇒ Services
Section ⇒ Recognition
4. The criteria to determine if an employer must accrue a liability for vacation pay. 710-10-25-1.
Topic ⇒ Compensation - General
Subtopic ⇒ General
Section ⇒ Recognition
An airline is considering a project of replacement and upgrading of machinery that would improve efficiency. The new machinery costs $400 today and is expected to last for 5 years with no salvage value. Straight line depreciation will be used. Project inflows connected with the new machinery will begin in one year and are expected to be $200 each year for 5 consecutive years and project outflows will also begin in one year and are expected to be $90 each year for 5 consecutive years. The corporate tax rate is 32% and the required rate of return is 9%. Calculate the project's net present value.
$-9.48
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow = (revenue - cost - depreciation) (1 - tax rate) + depreciation
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
(400 - 0) / 5 = 80
(200 - 90- 80) x (1 - 0.32) + 80 = $100.40
Cash flow in year 0 = $-400
Cash flow each year from year 1 to 5 = $100.40
I = 9%
NPV = $-9.48
To find the NPV 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 NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
After a rough week and against her better judgment, Pari tells Vihaan she is tired of arguing with him over trip reports. She makes an exception for him and, against policy, says he no longer needs to fill them out. A week later, another sales rep comes to her and asks to stop preparing reports, just like Vihaan. Why do you think Pari now has a managerial problem
Answer:
Hello the options related to your question is missing below are the missing options
A. She administered punishment to Vihaan.
B. She misused the ERG theory with Vihaan.
C. She failed to provide procedural justice.
D. She misused the expectancy theory with Vihaan.
answer : She failed to provide procedural justice. ( C )
Explanation:
Pari has a managerial problem because she failed to provide procedural Justice
Procedural justice is simply treating every employee equally as regards to a certain work procedure at the workplace, Pari did not exhibit that when she excepted Vihaan
If an adjusting entry is not made for an accrued expense,
a. expenses will be overstated,
b. liabilities will be understated.
c. net income will be understated.
d. equity will be understated.
Answer:
c. net income will be understated.
Assume there is an economy with a single bank, and the central bank sets the reserve requirement ratio at 5%. Assume also that the only bank had no transactions (i.e., no loans, reserves, or deposits) prior to an individual who deposits $2000 of currency with the bank.
a. As a result of this deposit, calculate the amount of required reserves, actual reserves, and excess reserves.
b. After the bank has issued the maximum amount of loans, what will be the total amount of loans, deposits, and money in the economy?
c. What is the size of the money multiplier for this economy?
Answer:
An Economy with a Single Bank
a. The amount of required reserves = $100
The amount of actual reserves = $100
The amount of excess reserves = $0.
b. The total amount of loans, deposits, and money in the economy
= $40,000
c. The size of the money multiplier for this economy
= 20
Explanation:
a) Data and Calculations:
Reserve requirement ratio = 5%
Customer's deposit = $2,000
Amount of required reserves
= Initial deposits multiplied by reserve ratio
= $100 ($2,000 * 5%)
Actual reserves = $100
Excess reserves = $0
Total amount of loans, deposits, and money in the economy
= Initial Deposits/Reserve Ratio
= $40,000 ($2,000/0.05)
The size of the money multiplier for this economy = Total money supply in the economy divided by the initial money deposits
= $40,000/$2,000
= 20
b) The Money Multiplier refers to how the initial deposit of $2,000 leads to a bigger final increase in the total money supply of $40,000. It means that the money multiplier is 20 or that the initial deposit of $2,000 has multiplied by 20 to $40,000.
Perez Modems has excess production capacity and is considering the possibility of making and selling paging equipment. The following estimates are based on a production and sales volume of 2,200 pagers. Unit-level manufacturing costs are expected to be $32. Sales commissions will be established at $2.20 per unit. The current facility-level costs, including depreciation on manufacturing equipment ($72,000), rent on the manufacturing facility ($62,000), depreciation on the administrative equipment ($15,600), and other fixed administrative expenses ($77,950), will not be affected by the production of the pagers. The chief accountant has decided to allocate the facility-level costs to the existing product (modems) and to the new product (pagers) on the basis of the number of units of product made (i.e., 6,200 modems and 2,200 pagers). Required a. Determine the per-unit cost of making and selling 2,200 pagers. (Do not round intermediate calculations. Round your answer to 3 decimal places.) b. Assuming the pagers could be sold at a price of $46 each, should Perez make the pagers
Answer and Explanation:
a. The computation of the per unit cost is shown below:
= Manufacturing cost per unit + sales commission per unit
= $32 + $2.20
= $34.20
Here we just add the two cost so that the per unit cost could come
b. Yes it should make the pagers as the cost per unit would be lower than the selling price i.e, $46
Therefore the above should be relevant for the given situation
Spalding Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Spalding expects sales in January year 1 to total $120,000 and to increase 5 percent per month in February and March. All sales are on account. Spalding expects to collect 70 percent of accounts receivable in the month of sale, 20 percent in the month following the sale, and 10 percent in the second month following the sale. Required Prepare a sales budget for the first quarter of year 1.
Answer:
Spalding Pointers Corporation
Sales Budget
For the first quarter of year 1.
Details January February March
Sales revenue ($) 120,000 126,000 132,300
Explanation:
Before preparing the sales budget, the following are calculated first:
Expected sales in January year 1 = $120,000
Expected sales in February year 1 = Expected sales in January year 1 * (100% + Expected percentage increase) = $120,000 * (100% + 5%) = $126,000
Expected sales in March year 1 = Expected sales in February year 1 * (100% + Expected percentage increase) = $126,000 * (100% + 5%) = $132,300
The sales budge will now look as follows:
Spalding Pointers Corporation
Sales Budget
For the first quarter of year 1.
Details January February March
Sales revenue ($) 120,000 126,000 132,300
Kampus Corporation had the following eight investment transactions or events:
Jan 1 Purchased Argon Co. bonds for $10,000 cash. (Purchase is considered a short-term investment in available-for-sale (AFS) debt securities.)
Jan 3 Purchased 1,200 shares of Elmer, Inc. for $36,000 cash. (Purchase is considered a long-term stock investment with insignificant influence.)
Mar 31 Received cash dividend of $0.25 per share from Elmer, Inc.
Jun 1 Purchased 5,000 shares of Logan, Inc. for $60 per share. These shares represent a 40% ownership in Logan, Inc.
Sep 30 Received cash dividend of $2 per share from Logan, Inc.
Dec 31 Logan, Inc. reported net income of $150,000 for the year.
Dec 31 As of December 31, the Argon Co. bond had a fair (market) value of $12,000.
Dec 31 As of December 31, the Elmer, Inc. stock had a fair (market) value of $25 per share.
Required:
Prepare the journal entries Kampus Corporation should record for these transactions and events.
Answer:
Kampus Corporation
Journal Entries:
Jan 1 Debit Bonds Receivable (Argon Co.) $10,000
Credit Cash $10,000
To record a short-term investment in available-for-sale (AFS) debt securities.)
Jan 3 Debit Investments (Long-term) in Elmer, Inc. $36,000
Credit Cash $36,000
To record the long-term investment (1,200 shares of Elmer, Inc. at $30 each.)
Mar 31 Debit Cash $300
Credit Dividend Received $300
To record dividend received from Elmer's investment
($0.25 per share of 1,200 shares).
Jun 1 Debit Investment in Logan, Inc. $300,000
Credit Cash $300,000
To record the investment in 5,000 shares of $60 per share, representing a 40% equity ownership.
Sep 30 Debit Cash $10,000
Credit Investment in Logan, Inc. $10,000
To record dividend received from investment in Logan, Inc. ($2 per share of 5,000 shares).
Dec 31 Debit Investment in Logan, Inc. $60,000
Credit Retained Earnings $60,000
To record 40% share of the Net income of $150,000 in Logan, Inc.
Dec 31 No Journal Required: Argon Co. bond had a fair (market) value of $12,000.
Dec 31 Debit Unrealized Loss from Investment in Elmer, Inc. $6,000
Credit Investment in Elmer, Inc. $6,000
To record $5 lost in the (market) value of $25 per share.
Explanation:
a) Data and Analysis:
Jan 1 Bonds Receivable (Argon Co.) $10,000 Cash $10,000
a short-term investment in available-for-sale (AFS) debt securities.)
Jan 3 Investments (Long-term) in Elmer, Inc. $36,000 Cash $36,000 1,200 shares of Elmer, Inc. at $30 each.
Mar 31 Cash $300 Dividend Received $300
$0.25 per share of 1,200 shares.
Jun 1 Investment in Logan, Inc. $300,000 Cash $300,000
5,000 shares of $60 per share, represent a 40% ownership.
Sep 30 Cash $10,000 Dividend Received $10,000
$2 per share of 5,000 shares.
Dec 31 Investment in Logan, Inc. $60,000 Retained Earnings $60,000
40% share of the Net income of $150,000 in Logan, Inc.
Dec 31 No Journal Required: Argon Co. bond had a fair (market) value of $12,000.
Dec 31 Unrealized Loss from Investment in Elmer, Inc. $6,000 Investment in Elmer, Inc. $6,000 (market) value of $25 per share.
While calculating the costs of products and services, a standard costing system ________. does not keep track of overhead cost traces direct costs to output by multiplying the standard prices or rates by the actual quantities uses standard costs to determine the cost of products allocates overhead costs on the basis of the actual overhead-cost rates
Answer:
uses standard costs to determine the cost of products
Explanation:
In the case when we determined the cost of the product and its services so here the standard costing system would be used to measure the cost of product as this is the costing system that are based upon the estimated or predicted values and are significant for generating a product
Suppose two types of firms wish to borrow in the bond market. Firms of type A are in good financial health and are relatively low risk. The appropriate premium over the risk-free rate for lending to these firms is 2%. Firms of type B are in poor financial health and are relatively high risk. The appropriate premium over the risk-free rate for lending to these firms is 6%. As an investor, you have no other information about these firms except that type A and type B firms exist in equal numbers.
A. At what interest rate would you be willing to lend if the risk-free rate were 6%?
B. Would this market function well? What type of asymmetric information problem does this example illustrate?
Answer:
A. I would be willing to lend at average rate of 10%
B-1. No, this market will not function well.
B-2. This example illustrates an adverse selection problem.
Explanation:
A. At what interest rate would you be willing to lend if the risk-free rate were 6%?
Appropriate interest rate for type A firm bond = Premium over the risk-free rate of Type A firm + Risk-free rate = 2% + 6% = 8%
Appropriate interest rate for type B firm bond = Premium over the risk-free rate of Type B firm + Risk-free rate = 6% + 6% = 12%
Average rate = (Appropriate interest rate for type A firm bond + Appropriate interest rate for type B firm bond) / 2 = (8% + 12%) / 2 = 10%
Since the probability of any of the two firms is equal and I do not have the knowledge of which type of firm they are dealing with, I would be willing to lend at average rate of 10%.
B-1. Would this market function well?
No, this market will not function well.
The reason is that the average rate of 10% is higher than the Appropriate interest rate for type A firm bond of 8%. This would make the type A firm to withdraw from the market and only type B firm will be left in the market.
B-2. What type of asymmetric information problem does this example illustrate?
This example illustrates an adverse selection problem. This is because after type A firm which is a desirable leaves the market, only type B firm which is the less desirable firms will be willing to borrow. This makes the quality of the market to detoriorate.
Create a business decision based on the company where you work (can be any company), a small business you hope to own someday or just make something up - then identify, define and explain an incremental cost, opportunity cost and sunk cost. You will need to be somewhat creative in your response.
Respond to this question with 5-7 meaningful sentences (or more - this one could be more)
The correct answer to this open question is the following.
The business decision based on the company where you work would be this. To open a new small branch of the fast-food restaurant as a concession in the municipal stadium.
The incremental cost is the future costs as a result of this business decision. This means that we have to consider extra money on a monthly basis to pay for the rent of the concession booth at the Municipal stadium.
The opportunity cost is that instead of opening our branch in the new downtown mall, we decided to move with the stadium option. Having decided to be at the mall could have allowed us to have more clients on a daily basis, especially on weekends.
The sunk cost is a cost from the past, an historical cost that really is not important in the present time to make a decision. Maybe, just a reference to a case in the past. And that's it.
Here we can refer to a cost when we opened the first location of the restaurant, but it was five years ago. Those were different situations, necessities, and conditions.
Olympic Sports has two issues of debt outstanding. One is a 6% coupon bond with a face value of $28 million, a maturity of 15 years, and a yield to maturity of 7%. The coupons are paid annually. The other bond issue has a maturity of 20 years, with coupons also paid annually, and a coupon rate of 7%. The face value of the issue is $33 million, and the issue sells for 96% of par value. The firm's tax rate is 40%.
Requied:
a. What is the before-tax cost of debt for Olympic?
b. What is Olympic's after-tax cost of debt?
Answer:
The responses to these question can be defined as follows:
Explanation:
Given:
[tex]Bond \ A \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Bond \ B\\\\[/tex]
[tex]Face \ Value \ \ \ \ \ \ \ \ \ \$1,000 \ \ \ \ \ \ \ \ \ \$ 1,000\\\\ Rate \ of \ Coupon \ \ \ \ \ \ \ \ \ 6\% \ \ \ \ \ \ \ \ \ 7\% \\\\Maturity \ in \ Years \ \ \ \ \ \ \ \ \ 15 \ \ \ \ \ \ \ \ \ 20 \\\\Selling - Price \ \ \ \ \ \ \ \ \ -\$ 908.92 \ \ \ \ \ \ \ \ \ \$960 \\\\ Yield \ To \ Maturity \ \ \ \ \ \ \ \ \ 7\% \ \ \ \ \ \ \ \ \ 7.39\% \\\\Total\ Outstanding \ \ \ \ \ \ \ \ \ \$2,80,00,000 \ \ \ \ \ \ \ \ \ \$ 3,30,00,000\\\\[/tex]
[tex]Rate\ Tax \ \ \ \ \ \ \ \ \ 40\% \\\\selling\ Price \ \ \ \ \ \ \ \ \ PV(7\% , 15 ,60, 1000)\\\\Yield \ To\ Maturity \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ RATE(20, 70, -960,1000)[/tex]
For point a:
Before tax [tex]FACE \ \ VALUE \ \ \ \ \ \ \ \ \ \ MARKET \ \ VALUE \ \ \ \ \ \ \ \ \ \ WEIGHT \ \ \ \ \ \ \ \ \ \ COST \ \ \ \ \ \ \ \ \ \ WACC\\\\[/tex][tex]Dr \ 1 \ \ \ \ \ \ \ \ \ \ \$2,80,00,000 \ \ \ \ \ \ \ \ \ \ 25449760 \ \ \ \ \ \ \ \ \ \ 0.445473 \ \ \ \ \ \ \ \ \ \ 7 \ \ \ \ \ \ \ \ \ \ 3.11831\\\\Dr \ 2 \ \ \ \ \ \ \ \ \ \ \$3,30,00,000 \ \ \ \ \ \ \ \ \ \ 31680000 \ \ \ \ \ \ \ \ \ \ 0.554527 \ \ \ \ \ \ \ \ \ \ 7.39 \ \ \ \ \ \ \ \ \ \ 4.097955\\\\[/tex]
[tex]57129760 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 7.216266\\\\[/tex]
For point b:
After tax
[tex]FACE \ \ VALUE \ \ \ \ \ \ \ \ \ \ MARKET \ \ VALUE \ \ \ \ \ \ \ \ \ \ WEIGHT \ \ \ \ \ \ \ \ \ \ COST \ \ \ \ \ \ \ \ \ \ WACC\\\\Dr \ 1 \ \ \ \ \ \ \ \ \ \ \$2,80,00,000 \ \ \ \ \ \ \ \ \ \ 25449760 \ \ \ \ \ \ \ \ \ \ 0.445473 \ \ \ \ \ \ \ \ \ \ 4.2 \ \ \ \ \ \ \ \ \ \ 1.870986\\\\Dr \ 2 \ \ \ \ \ \ \ \ \ \ \$3,30,00,000 \ \ \ \ \ \ \ \ \ \ 31680000 \ \ \ \ \ \ \ \ \ \ 0.554527 \ \ \ \ \ \ \ \ \ \ 4.434 \ \ \ \ \ \ \ \ \ \ 2.458773\\\\[/tex] [tex]57129760 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4.329759\\\\[/tex]
So,
In a, answer is [tex]7.22\%[/tex]
In b, answer is [tex]4.33\%[/tex]
Assume the following information for Splish Brothers Corp.
Accounts receivable (beginning balance) $143,000
Allowance for doubtful accounts (beginning balance) 11,470
Net credit sales 950,000
Collections 902,000
Write-offs of accounts receivable 5,500
Collections of accounts previously written off 2,300
Uncollectible accounts are expected to be 9% of the ending balance in accounts receivable.
1. Prepare the entry to record the write-off of uncollectible accounts during the period.
2. Prepare the entries to record the recovery of the uncollectible account during the period.
3. Prepare the entry to record bad debt expense for the period.
If you use a check to pay your monthly rent,
A. the check is not money because it is not part of M1.
B. you have used money because the landlord accepted it as a means of payment.
C. the check is considered money because you received something in return.
D. the check becomes money when it arrives at the landlord's bank.
E. the check is not money because it is just an instruction to your bank to make a payment
Answer:
E
Explanation:
Money is an economic unit that is generally accepted as a medium of exchange in the economy
Functions of money
1. Medium of exchange : money can be used to exchange for goods and services. For example, money serves as a medium of exchange when you pay $20 for your favourite jeans
2. Unit of account : money can be used to value goods and services, For example, $20 is the value of your favourite jeans
3. Store of value : money can retain its value over the long term, this it can be used as a store of value
M1 includes the most liquid from of money. It includes currency, demand deposits and checking account.
A check is not a form of money. It can be defined as a note or an instruction to a bank to make a payment. The payment can either be honoured or not be honoured
You have been given the following information about the production of Usher Co., and are asked to provide the plant manager with information for a meeting with the vice president of operations.
Standard Cost Card
Direct materials (5 pounds at $5 per pound) $25.00
Direct labor (0.90 hours at $10) 9.00
Variable overhead (0.90 hours at $4 per hour) 3.60
Fixed overhead (0.90 hours at $9 per hour) 8.10
$45.70
The following is a variance report for the most recent period of operations.
Variances
Costs Total Standard Cost Price Quantity
Direct materials $405,000 $8,298 F $9,900 U
Direct labor 145,800 4,590 U 7,200 U
(a) How many units were produced during the period? (Round answers to 0 decimal places, e.g. 125.)
Number of units
You have been given the following information abou
(b) How many pounds of raw material were purchased and used during the period? (Round answers to 0 decimal places, e.g. 125.)
Raw material
You have been given the following information abou
pounds
(c) What was the actual cost per pound of raw materials? (Round to 2 decimal places, e.g. 1.25.)
Answer:
Usher Co.
a. The units produced during the period is:
= 16,200 units
b. The pounds of raw materials purchased and used during the period is:
= 82,980 pounds
c. The actual cost per pound of raw materials is:
= $4.90
Explanation:
a) Data and Calculations:
Standard Cost Card
Direct materials (5 pounds at $5 per pound) $25.00
Direct labor (0.90 hours at $10) 9.00
Variable overhead (0.90 hours at $4 per hour) 3.60
Fixed overhead (0.90 hours at $9 per hour) 8.10
$45.70
Variances
Costs Total Standard Cost Price Quantity
Direct materials $405,000 $8,298 F $9,900 U
Direct labor 145,800 4,590 U 7,200 U
Units produced = Total standard cost/direct materials standard cost per unit
= $405,000/$25
= 16,200 units
Pounds of raw materials purchased and used = (Total standard cost + Unfavorable Quantity Variance)/direct materials standard cost per pound
= ($405,000 + $9,900)/$5
= 82,980 pounds
Actual costs:
Direct materials = $406,602 ($405,000 - $8,298 + $9,900)
Actual price per pound = $4.90 ($406,602/82,980)
Direct labor = $157,590 ($145,800 + 4,590 + 7,200)
Actual price per pound = ((Actual Quantity * Standard Price) - Favorable Price Variance)/Actual Quantity
= ((82,980 * $5) - $8,298)/82,980
= ($414,900 - $8,298)/82,980
= $406,602/82,980
= $4.90
A. The units produced during the period are 16200 (rounded off to nearest zero).
B. 82980 pounds of raw material was being required during the period.
C. The actual cost of raw materials come out of $4.90/pound
We know that formula to find units produced is,[tex]\rm units\ produced=\dfrac{\rm{total standard cost}}{\rm{direct materials}}\\\\units \ produced = \dfrac{405000}{25}\\\\\rm units\ produced = 16200[/tex]
So, 16200 units were produced.
Raw material purchased and used can be obtained by the following formula,[tex]\rm raw\ material\ used = \dfrac{\rm{total\ standard\ cost+\ unfavourable \ quantity\ variance}}{\rm{direct\ material \ standard\ cost\ per \pound}} \\\\ =\dfrac{4149000}{5}\\\\=829800[/tex]
So, 829800 pounds of raw material was consumed during the period.
The actual cost of raw material per pound can be calculated by simply dividing direct materials with pounds purchased and used which comes out to $4.90.Hence, the answers are calculated as
Actual cost per pound = $4.90
Raw material consumed and purchased = 829800 pounds
Units produced = 16200 units
To know more about raw materials, please refer below links.
https://brainly.com/question/730278
Transic Corporation has the following financial data for 2016 and 2017. 2017 2016 ASSETS Current Assets: Cash $ 48,000 $ 14,000 Marketable Securities 9,000 13,000 Accounts Receivable 35,000 24,000 Other Current Assets 15,000 18,000 Total Current Assets 107,000 69,000 Fixed Assets (net) 140,000 130,000 Total Assets $247,000 $199,000 LIABILITIES Current Liabilities $ 72,000 $ 52,000 Long-term Liabilities 50,000 37,000 Total Liabilities $122,000 $ 89,000 Total Stockholders' Equity $125,000 $110,000 Total Liabilities And Stockholders' Equity $247,000 $199,000 What is Transic's current ratio for 2017
Answer:
1.49
Explanation:
Calculation to determine Transic's current ratio for 2017
Using this formula
2017 Current ratio=2017 Total Current Assets /2017 Current Liabilities
Let plug in the formula
2017 Current ratio=$107,000/$ 72,000
2017 Current ratio=1.486
2017 Current ratio=1.49 (Approximately)
Therefore Transic's current ratio for 2017 is 1.49
Consider the following statements when answering this question I. Increases in the demand for a good, which is produced by a competitive industry, will raise the short-run market price. II. Increases in the demand for a good, which is produced by a competitive industry, will raise the long-run market price. I is true, and II is false. I and II are true. I is false, and II is true. I and II are false.
Answer:
I and II are true
Explanation:
I. Increases in the demand for a good, which is produced by a competitive industry, will raise the short-run market price
In the short run of the competitive industry when the market demand for goods rises then the price of these goods will also increase. This is because the price equals marginal revenue. Therefore, when price rises then marginal revenue will increase and as a result, the marginal cost curve moves up and firms produce more quantity of goods. This statement is therefore true.
II. Increases in the demand for a good, which is produced by a competitive industry, will raise the long-run market price
The effect of the increase in goods demand is the same in the long run of the competitive industry as it is in the short run. Therefore, a rise in demand would raise the price of the goods above ATC (Average Total Cost). Hence, the above statement is also true.
Fraud Investigators Inc. operates a fraud detection service. On March 31, 10 customers were billed for detection services totaling $21,000. On October 31, a customer balance of $1,300 from a prior year was determined to be uncollectible and was written off. On December 15, a customer paid an old balance of $760, which had been written off in a prior year. On December 31, $460 of bad debts were estimated and recorded for the year.
Required:
1. Prepare journal entries for each transaction above. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
a) Record the service revenue of $34,000 billed on account.
Transaction General Journal Debit Credit
a
B) Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,950..
Transaction General Debit Credit
C1.Record the reversal of the write-off of a $810 customer account.
C2. Record the receiptof cash of $810 from the customer.
D. Record the estimate bad debts of $590 for the year.
2. Complete the following table, indicating the amount and effect (+ for increase, − for decrease, and NE for no effect) of each transaction. Ignore income taxes.
Transaction Net Receivable Net Sales Income From Operation
A
B
C
D
Option for A : NE, +/- 34,000, +34,000, -34,000
Option for B : NE, +/- 1950, +1950, -1950
Option for C: NE, +/- 810, +810, -810
Option for D : NE, +/- 590, +590, -590
Answer:
Fraud Investigators Inc.
1. Journal Entries:
March 31: Debit Accounts Receivable $21,000
Credit Service Revenue $21,000
To record the rendering of service on account.
Oct. 31: Debit Allowance for Uncollectible Accounts $1,300
Credit Accounts Receivable $1,300
To write-off uncollectible accounts.
Dec. 15: Debit Accounts Receivable $760
Credit Allowance for Uncollectible Accounts $760
To reverse a previously written-off account.
Dec. 15: Debit Cash $760
Credit Accounts Receivable $760
To record the cash collected from the customer.
Dec. 31: Debit Bad Debts Expense $460
Credit Allowance for Uncollectible Accounts $460
To record bad debts expense for the year.
A) Debit Accounts Receivable $34,000
Credit Service Revenue $34,000
To record the rendering of service on account.
B) Debit Allowance for Uncollectible Accounts $1,950
Credit Accounts Receivable $1,950
To write off uncollectible accounts.
C1) Debit Accounts Receivable $810
Credit Allowance for Uncollectible Accounts $810
To reverse a previously written-off debt.
C2) Debit Cash $810
Credit Accounts Receivable $810
To record the receipt of cash from the customer.
D) Debit Bad Debts Expense $590
Credit Allowance for Uncollectible Accounts $590
To record bad debts expense for the year.
2. Transaction Net Receivable Net Sales Income From Operation
A +34,000 +34,000 +34,000
B -1,950 NE -1950
C +/- 810 NE +810
D NE NE -590
Explanation:
a) Data and Analysis:
March 31: Accounts Receivable $21,000 Service Revenue $21,000
Oct. 31: Allowance for Uncollectible Accounts $1,300 Accounts Receivable $1,300
Dec. 15: Accounts Receivable $760 Allowance for Uncollectible Accounts $760
Dec. 15: Cash $760 Accounts Receivable $760
Dec. 31: Bad Debts Expense $460 Allowance for Uncollectible Accounts $460
A) Accounts Receivable $34,000 Service Revenue $34,000
B) Allowance for Uncollectible Accounts $1,950 Accounts Receivable $1,950
C1) Accounts Receivable $810 Allowance for Uncollectible Accounts $810
C2) Cash $810 Accounts Receivable $810
D) Bad Debts Expense $590 Allowance for Uncollectible Accounts $590
Manrow Growers, Inc., owns equipment for sowing and harvesting its organic fruit, vegetables, and tree nuts that are sold to local restaurants and grocery stores. At the beginning of 2019, an asset account for the company showed the following balances:
Equipment $350,000
Accumulated depreciation through 2018 165,000
During 2019, the following expenditures were incurred for the equipment:
Major overhaul of the equipment on January 1, 2019, that improved efficiency $42,000
Routine maintenance and repairs on the equipment 5,000
The equipment is being depreciated on a straight-line basis over an estimated life of eight years with a $20,000 estimated residual value. The annual accounting period ends on December 31.
Required:
Record the adjusting entry for depreciation on the equipment during 2018.
Answer: See explanation
Explanation:
The adjusting entry for depreciation on the equipment during 2018 will be calculated as:
Depreciation = (Equipment cost - Estimated residual value) / Estimated life
= ($350000 - $20000) / 8
= $41250
Debit: Depreciation = $41250
Credit: Accumulated depreciation = $41250
(To record depreciation for the year)
Freemore Company has the following sales budget for the last six months of 2018: July $206,000 October $181,000 August 168,000 November 203,000 September 209,000 December 185,000 Sales are immediately due, however the cash collection of sales, historically, has been as follows: 55% of sales collected in the month of sale, 35% of sales collected in the month following the sale, 7% of sales collected in the second month following the sale, and 3% of sales are uncollectible. Cash collections for September are ________. $126,710 $199,930 $188,170 $173,750
Answer:
the cash collection for the September month is $188,170
Explanation:
The computation of the cash collection for the September month is given below:
= September collection + August collection + July collection
= $209,000 ×0.55 + $168,000 × 0.35 + $206,000 × 0.07
= $114,950 + $58,800 + $14,420
= $188,170
hence, the cash collection for the September month is $188,170
Therefore the third option is correct
Olivia believes that the employees in her company require constant supervision and are not naturally motivated. She believes she should push them to reach their goals. Which theory of leadership can she utilize that would relate to her situation? Olivia can utilize in her company.
Answer:
Transformational Leadership Theory
The Transformational Leadership theory, also known as Relationship theories, focuses on the relationship between the leaders and followers. This theory talks about the kind of leader who is inspirational and charismatic, encouraging their followers to transform and become better at a task.
Transformational leaders typically motivated by their ability to show their followers the significance of the task and the higher good involved in performing it. These leaders are not only focused on the team's performance but also give individual team members the required push to reach his or her potential. This leadership theories will help you to sharp your Skill.
Transactional Theories
Transactional Theories, also referred to as Management theories or exchange theories of leadership, revolve around the role of supervision, organization, and teamwork. These theories consider rewards and punishments as the basis for leadership actions. This is one of the oft-used theories in business, and the proponents of this leadership style use rewards and punishments to motivate employees.
The theory of leadership she utilizes that would relate to her situation is Transformational leadership. This is further explained below.
What is Transformational leadership?Generally, Transformational leadership is simply described as a style of leadership that affects both people and societal systems.
In conclusion, Transformational leadership is the leadership idea that Olivia may use in her position.
Read more about Transformational leadership
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A mother notices that when she divides brownies equally between her two children and gives each child her share on a separate plate, the brownies last a long time. But when she gives her children a plate to share, the brownies are gone pretty quickly. The mother concludes from this that brownies given on a single plate are:_______.
A) excludable but they might either be rival or nonrival.
B) nonexcludable and nonrival.
C) excludable and rival.
D) excludable and nonrival.
E) nonexcludable and rival.
Answer:
E
Explanation:
I think this because if the children had'nt rivaled over the brownies, they would've lasted longer.
3. What do you think has more risk: buying corporate bonds or buying a second house in hopes that housing prices increase?
Answer:
buying a second house
Explanation:
bonds have a high chance of providing returns whereas the housing market is very hard to predict
MillerCoors Brewing Company is the world’s fifth largest brewer. In the United States, its tie to the magical appeal of the Rocky Mountains is one of its most powerful trademarks. Some of the items included in its recent annual consolidated statement of cash flows presented using the indirect method are listed here. Indicate whether each item is disclosed in the Operating Activities (O), Investing Activities (I), or Financing Activities (F) section of the statement or use (NA) if the item does not appear on the statement. (Note: This is the exact wording used on the actual statement.)
Answer:
1. Purchase of stock. FINANCING ACTIVITIES.
Financing activities relate to transactions that involve the capital of the company. They include long term debt and equity. In this case, the company is buying back its own shares so this falls under Financing activities as it has to do with the company's own capital.
2. Principal payment on long-term debt. FINANCING ACTIVITIES.
Principal repayment retires long term debt and as mentioned above, financing activities relate to activities that involve long term debt.
3. Proceeds from sale of properties. INVESTING ACTVITIES.
Properties are fixed assets and transactions involving these are considered investing activities so the proceeds from a sale of properties would rightfully be an investing activity.
4. Inventories (decrease). OPERATING ACTIVITIES.
Transactions that have to do with the day to day operations of the business fall under operating activities and this includes inventories decreasing.
5. Accounts payable (decrease). OPERATING ACTIVITIES.
Operations of the business includes accounts payables decreasing as well.
6. Depreciation and amortization. OPERATING ACTIVITIES.
Depreciation and amortization arise from using the fixed assets for day to day operations so this will fall under Operating activities.
Riverview Company's budget for the coming year includes $7,000,000 for manufacturing overhead, 40,000 hours of direct labor, and 200,000 hours of machine time. If Riverview applies overhead using a predetermined rate based on machine-hours, what amount of overhead will be assigned to a unit of output which requires 0.4 machine hours and 0.30 labor hours to complete
Answer:
$70
Explanation:
With regards to the above, we need to compute first the overhead application rate.
Overhead application rate = Budgeted overhead / Budgeted activity/Budgeted machine hour
= $7,000,000 / 40,000 labor hours
= $175
Overhead application rate = $175 per direct labor hour
Assigned overhead = Overhead application rate × Number of machine hours consumed
= $175 × 0.4
= $70
A manufacturer has an estimated practical capacity of 90,000 machine hours, and each unit requires two machine hours. The following data apply to a recent accounting period: Actual variable overhead$ 240,000 Actual fixed overhead$ 442,000 Actual machine hours worked 88,000 Actual finished units produced 42,000 Budgeted variable overhead at 90,000 machine hours$ 200,000 Budgeted fixed overhead$ 450,000 Of the following factors, the manufacturer's production volume variance is most likely to have been caused by: A. A wage hike granted to a production supervisor. B. A newly imposed initiative to reduce finished goods inventory levels. C. Acceptance of an unexpected sales order. D. Temporary employment of workers with lower skill levels than originally anticipated.
Answer:
Of the following factors, the manufacturer's production volume variance is most likely to have been caused by:
D. Temporary employment of workers with lower skill levels than originally anticipated.
Explanation:
a) Data and Calculations:
Estimated practical capacity = 90,000 machine hours
Machine hours per unit = 2
Estimated production units based on capacity = 45,000 (90,000/2)
Budgeted Actual
Variable overhead = $200,000 $240,000
Actual fixed overhead = $450,000 $442,000
Machine hours 90,000 88,000
Units produced 45,000 42,000
Estimated units to be produced based on standard machine hour
= 44,000 units (88,000/2)
Variance between standard units to be produced and actual = 2,000 (44,000 - 42,000) Unfavorable
n an arm's length channel system where the supplier/steward exerts little direct control over channel intermediaries, the channel steward may have to resort to performing value-adding activities itself, such as TV advertising, consumer promotions, and so on, so that even before the consumer enters the store, she or he is looking only for the supplier's brand. Which promotional strategy does this discussion describe
Answer:
Pull marketing.
Explanation:
Pull marketing has the central objective of promoting products or services to make the customer come to you. For this purpose, various advertising channels are used, such as TV broadcasting, promotions, social media ads, etc., in order to promote a brand and thus attract consumers.
In this marketing strategy, the company seeks customer loyalty through targeting the brand, whose advertising will have great incentives to purchase the product when declaring its central benefits and how they can add to the consumer's life.
Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate calculations.)
Sales Costs Depreciation EBIT Taxes (22%) Net income 747,300 582,600 89,300
a. Calculate the OCF. (Do not round intermediate calculations.)
b. What is the depreciation tax shield? (Do not round intermediate calculations.)
a. OCF
b. Depreciation tax shield
Answer: See explanation
Explanation:
Sales = 747300
Less: Costs = 582600
Less: Depreciation = 89300
EBIT = 75400
Less: Taxes at 22% = 22% × 75400 = 16588
Net income = EBIT - Taxes = 75400 - 16588 = 58812
a. Calculate the OCF.
OCF will be calculated as:
= Net income + Depreciation
= 58812 + 89300
= 148,112
b. What is the depreciation tax shield?
Depreciation tax shield will be:
= Depreciation × Tax rate
= 89300 × 22%
= 89300 × 0.22
= 19646
Advanced Enterprises reports year−end information from 2019 as follows: Sales (160,250 units) $969,000 Cost of goods sold (641,000) Gross margin 328,000 Operating expenses (268,000) Operating income $60,000 Advanced is developing the 2020 budget. In 2020 the company would like to increase selling prices by 13.5%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. What is budgeted cost of goods sold
Answer:
Cost of goods sold = $576,900
Explanation:
The budgeted cost of goods sold will be the sales volume in 2020 multiplied by cost per unit .
Sales volume in year 2020= (100-10)% × sales figure for 2019
= 90% × 160,250= 144,225
Cost of goods sold per unit = cost of goods sold in 2019/Sales units in 2019
= 641,000/160250=$4
Cost of goods sold = $4× 144,225 = $576,900
Cost of goods sold = $576,900
there is deep relation between work and thinking
Answer:
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