Answer: 0.82
Explanation:
From the given formulas, the beta of Walmart is 0.3616 and the beta of Amazon is 1.1634.
The portfolio beta is going to be a weighted average of these two betas:
= (0.43 * 0.3616) + ( (1 - 0.43) * 1.1634)
= 0.155488 + 0.663138
= 0.82
If budgeted beginning inventory is $8,300, budgeted ending inventory is $9,400, and budgeted cost of goods sold is $10,260, budgeted purchases should be: Group of answer choices $9,160 $11,360 $1,960 $860 $1,100
Answer: $11,360
Explanation:
Budgeted cost of goods sold = Budgeted beginning inventory + Budgeted purchases - Budgeted ending inventory
10,260 = 8,300 + Budgeted purchases - 9,400
Budgeted purchases = 10,260 - 8,300 + 9,400
= $11,360
Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 25,000 units in inventory, 60% complete as to materials and 40% complete as to conversion costs. The beginning inventory cost of $60,100 consisted of $44,800 of direct materials costs and $15,300 of conversion costs. During the month, the forming department started 300,000 units. At the end of the month, the forming department had 30,000 units in ending inventory, 80% complete as to materials and 30% complete as to conversion. Units completed in the forming department are transferred to the painting department. Cost information for the forming department follows. Beginning work in process inventory$60,100 Direct materials added during the month 1,231,200 Conversion added during the month 896,700 Exercise 03-7A FIFO: Costs per EUP LO C4 Assume that Fields uses the FIFO method of process costing. 1. Calculate the equivalent units of production for the forming department. 2. Calculate the costs per equivalent unit of production for the forming departmen
Answer:
Fields Company
Forming Department
Materials Conversion
1. The equivalent units of production 304,000 294,000
2. The costs per equivalent unit $4.05 $3.05
Explanation:
a) Data and Calculations:
Units Materials Conversion
Work in Process 25,000 60% 40%
Units started 300,000
Ending WIP 30,000 80% 30%
Units completed 295,000 100% 100%
Equivalent Units:
Units Materials Conversion
Work in Process 25,000 10,000 (40%) 15,000 (60%)
Units started 300,000
Ending WIP 30,000 24,000 (80%) 9,000 (30%)
Units completed 295,000 100% 100%
Units started and
completed 270,000 270,000 270,000
Total equivalent units 304,000 294,000
Units Materials Conversion Total
Costs added during the month $1,231,200 $896,700 $2,127,900
Total equivalent units 304,000 294,000
Cost per equivalent unit $4.05 $3.05
The firm's fixed costs are $60 000, variable cost per unit is $15 and selling price per unit is $20. The contribution margin per unit is: Group of answer choices $5 $15 $20 $35 g
Answer:
See below
Explanation:
With regards to the above, the contribution margin is computed as;
Contribution margin per unit = Selling price per unit - Variable cost per unit
Selling price per unit = $20
Variable cost per unit = $15
Then,
Contribution margin per unit = $20 - $15
Contribution margin per unit = $5
Aaron Company has a process costing system. All materials are introduced when conversion costs reach 50 percent. The following information is available for physical units during March. Work in process, March 1 (60% complete as to conversion costs) 150,000 Units started in March 600,000 Units transferred to Finishing Department in March 630,000 Work in process, March 31 (40% complete as to conversion costs) 120,000 Required: a. Compute the equivalent units for materials costs and for conversion costs using the weighted-average method. b. Compute the equivalent units for materials costs and for conversion costs using the FIFO method. c. The company president has been under considerable pressure to increase income. He tells the controller to change the estimated completion for ending work in process to 60 percent (from 40 percent). c-1. What effect will this change have on the unit costs of units transferred to finished goods in March
Answer:
Aaron Company
a. Weighted-average
Equivalent units of production Units Materials Conversion
Units transferred to Finishing 630,000 630,000 (100%) 630,000 (100%)
Work in process, March 31 120,000 0 (0%) 48,000 (40%)
Equivalent units 630,000 678,000
b. FIFO:
Equivalent units of production Units Materials Conversion
Work in process, March 1 150,000 0 60,000 (40%)
Units started and completed 480,000 480,000 (100%) 480,000 (100%)
Work in process, March 31 120,000 0 (0%) 48,000 (40%)
Equivalent units 480,000 588,000
c. The change will reduce the unit costs of units transferred to finished goods in March.
Explanation:
a) Data and Calculations:
Work in process, March 1 (60% complete as to conversion costs) 150,000
Units started in March 600,000
Units transferred to Finishing Department in March 630,000
Work in process, March 31 (40% complete as to conversion costs) 120,000
a. Weighted-average
Equivalent units of production Units Materials Conversion
Units transferred to Finishing 630,000 630,000 (100%) 630,000 (100%)
Work in process, March 31 120,000 0 (0%) 48,000 (40%)
Equivalent units 630,000 678,000
b. FIFO:
Equivalent units of production Units Materials Conversion
Work in process, March 1 150,000 0 60,000 (40%)
Units started and completed 480,000 480,000 (100%) 480,000 (100%)
Work in process, March 31 120,000 0 (0%) 48,000 (40%)
Equivalent units 480,000 588,000
c. If the estimated completion for ending work in process is changed to 60% from 40%, the equivalent units of production for materials will increase by 120,000. This increase will also increase the cost of ending work in process and reduce the unit costs transferred to finished goods in March.
Which of the following statements correctly describe properties of an economic model? Check all that apply.
A) An economic model requires a complex set of assumptions.
B) An economic theory can be expressed in the form “If X, then Y, all other things held constant.”
C) An economic model requires simplified assumptions.
D) The purpose of an economic model is to depict the real world as accurately as possible.
Answer:
A) An economic model requires a complex set of assumptions.
D) The purpose of an economic model is to depict the real world as accurately as possible.
Explanation:
The following statements that correctly describes properties of an economic model are:
A) An economic model requires a complex set of assumptions.
D) The purpose of an economic model is to depict the real world as accurately as possible.
An economic model requires a complex set of assumptions.The purpose of an economic model is to depict the real world as accurately as possible.
Are the properties of economic model.
What is Economics?Economics is a social science which base on how human needs are met or satisfied through the allocation of scarce resources .
What is an Economic Model?Economic model is a theoretical processes which consist of variables and how this set of logical variables relate within them.
Therefore,
An economic model requires a complex set of assumptions.The purpose of an economic model is to depict the real world as accurately as possible.Are the properties of economic model.
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Consider the market for purple potatoes below and assume that a price ceiling of $30 is imposed by the government. Calculate the deadweight loss:
Answer:
$5000
Explanation:
You are calculating the volume quantity needed for material that will compact to 95% of its original undisturbed volume. You know that you will need to fill a void with a volume of 1,487 cubic yards. What is the volume of material needed from the borrow pit to equal this amount when fully compacted
Answer:
Volume = 1565.56 cubic yards
Explanation:
The computation of the volume of material required is shown below:
95% × volume = 1,487 cubic yards
Volume = 1565.56 cubic yards
Basically 95% of volume is equivalent to the 1487 cubic yards
So according to this we determined the volume
Hence, the same should be considered
Economists use the term inflation to describe a situation in which a. some prices are rising faster than others. b. the economy's overall price level is rising. c. the economy's overall price level is high, but not necessarily rising. d. the economy's overall output of goods and services is rising faster than the economy's overall price level.
Answer:
b
Explanation:
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
Shoe leather cost is when people try to spend money immediately so they would not be holding money for a long time. This is because money loses its value in an inflation.
Menu costs are the costs of changing price constantly as a result of inflation, When there is inflation, prices increases regularly. As a result prices needs to be updated regularly.
Reliability is how long an item or system will perform its function before it breaks. Good reliability will ______________________. Decrease logistics support requirements Increase life cycle sustainment costs Decrease system readiness Increase manpower waste
Answer:
Decrease logistics support requirements.
Explanation:
Decrease logistics support requirements is the correct answer because the increase in reliability decreases the requirement to correct the commodity or equipment. Therefore, the logistic support decreases which further decreases the manpower waste. Additionally, the good reliability shows that the product's quality is good and it will work efficiently for a longer time period. Thus, a good quality product requires less logistic support.
Reliability is a quality of being trustworthy and in performing constantly well. It result in measurement and calculations and tends to be more accurate.
Thus there is a decrease in logistics support requirements. When the system function before it breaks. Good reliability will always support the system.Hence the option A is correct.
Learn more about the or system will perform its function before.
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The Dow Theory describes stock prices as moving in trends analogous to the movement of water. Which of the following statements is nottrue?
A. Major trends resemble tides.
B. Intermediate trends resemble waves.
C. Short-run movements are like ripples.
D. Waves are the most important.
E. None of the above (that is, all are true statements)
Answer:
D.Waves are the most important I think sorry if I'm wrong
Explanation:
Hope this helped! :)
MC Qu. 98 Peterson Company estimates that overhead... Peterson Company estimates that overhead costs for the next year will be $6,920,000 for indirect labor and $840,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 80,000 machine hours are planned for this next year, what is the company's plantwide overhead rate
Answer:
Predetermined manufacturing overhead rate= $97 per machine hour
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (6,920,000 + 840,000) / 80,000
Predetermined manufacturing overhead rate= $97 per machine hour
Suppose Sam and Teresa are playing a game in which both must simultaneously choose the action Let Or Right. The payoff matrix that follows shows the payoff each person Will earn as a function Of both Of their choices. For example, the lower-right cell shows that if Sam chooses Right and Teresa chooses Right, Sam will receive a payoff of S and Teresa will receive a payoff of 1.
Teresa
Left Right
Sam Left 8, 4 4, 5
Right 5, 4 6, 5
The only dominant strategy in this game is for __________ to choose____________ . The outcome reflecting the unique Nash equilibrium in this game is as follows: Sam chooses _____________ and Teresa chooses ______________.
Answer:
The only dominant strategy in this game is for Teresa to choose Right. The outcome reflecting the unique Nash equilibrium in this game is as follows: Sam chooses Right and Teresa chooses Right.
Explanation:
Given:
Teresa
Left Right
Sam Left 8, 4 4, 5
Right 5, 4 6, 5
A dominant strategy is one that makes a player in a game better off regardless of the choice of strategy of his opponent.
An examination of the payoff matrix above shows that when Sam plays Left, Teresa will play Right because 5 > 4. When Sam plays Right, Teresa will still play Right because 5 > 4. This is an indication that Teresa will always play Right no matter what Sam plays. Therefore, the dominant strategy for Teresa is Right.
On the other hand, when Teresa plays Left, Sam will also play Left because 8 > 5. And when Teresa plays Right, Sam will also play Right because 6 > 4. This implies that Sam does not have any unique strategy that make him better off. Therefore, Sam does NOT have a dominant strategy.
Therefore, we have:
The only dominant strategy in this game is for Teresa to choose Right. The outcome reflecting the unique Nash equilibrium in this game is as follows: Sam chooses Right and Teresa chooses Right.
What is the effective annual cost of skipping the discount and paying at the end of the net period for the following credit terms: 6/10, net 70
Answer:
APR = 38.829%
APY = 45.70%
Explanation:
Missing word "Calculate the APR and the APY."
Discount % = 6%
Total period = 70
Discount period = 10
i. APR = (Discount% / [100% - Discount%]) * (365 / [Total period - Discount period])
APR = [6% / 100%-6%] * [365 / 70 - 10]
APR = 6%/94% * 365/60
APR = 0.06382979 * 6.083333
APR = 0.38829787
APR = 38.83%
ii. APY = (1 + [Discount% / {100% - Discount%}])^(365/[Total period - Discount period]) - 1
APY = [1 + [6%/ / 100%-6%]^(365/70-10) - 1
APY = {1 + 0.06382979]^6.083333 - 1
APY = 1.06382979^6.083333 - 1
APY = 1.45704250704 - 1
APY = 0.45704250704
APY = 45.70%
Exercise 4-7 Recording sales, purchases, shipping, and returns—buyer and seller LO P1, P2 Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $30,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $20,100. Sydney pays $400 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,300 of the $30,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $871. 20 Sydney pays Troy for the amount owed. Troy receives the cash immediately. (Both Sydney and Troy use a perpetual inventory system and the gross method.) 1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. 2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.
Answer:
Sydney Retailing (buyer) and Troy Wholesalers (seller)
Journal Entries:
For the Buyer (Sydney):
May 11 Debit Inventory $30,000
Credit Accounts Payable $30,000
To record the purchase of goods on account with invoice dated May 11, terms 3/10, n/90, FOB shipping point.
Debit Freight-in $400
Credit Cash $400
To record the freight-in expense.
May 12 Debit Accounts Payable $1,300
Credit Inventory $1,300
To record the return of goods to Troy.
May 20 Debit Accounts Payable $28,700
Credit Cash $27,839
Credit Cash Discounts $861
To record the payment on account, including discounts.
For the seller (Troy Wholesalers):
May 11 Debit Accounts Receivable $30,000
Credit Sales Revenue $30,000
To record the sale of goods on credit with invoice dated May 11, terms 3/10, n/90, FOB shipping point.
Debit Cost of goods sold $20,100
Credit Inventory $20,100
To record the cost of goods sold.
May 12 Debit Sales Returns $1,300
Credit Accounts Receivable $1,300
To record the sales returns on account.
Debit Inventory $871
Credit Cost of goods sold $871
To record the cost of goods returned.
May 20 Debit Cash $27,839
Debit Cash Discounts $861
Credit Accounts Receivable $28,700
To record the receipt of cash on account, including discounts.
Explanation:
a) Data and Analysis:
For the Buyer (Sydney):
May 11 Inventory $30,000 Accounts Payable $30,000
with invoice dated May 11, terms 3/10, n/90, FOB shipping point.
Freight-in $400 Cash $400
May 12 Accounts Payable $1,300 Inventory $1,300
May 20 Accounts Payable $28,700 Cash $27,839 Cash Discounts $861
For the seller (Troy Wholesalers):
May 11 Accounts Receivable $30,000 Sales Revenue $30,000
with invoice dated May 11, terms 3/10, n/90, FOB shipping point.
Cost of goods sold $20,100 Inventory $20,100
May 12 Sales Returns $1,300 Accounts Receivable $1,300
Inventory $871 Cost of goods sold $871
May 20 Cash $27,839 Cash Discounts $861 Accounts Receivable $28,700
The resource-based view of competitive advantage states that for something to yield competitive advantage it must be ______.
Answer:
"Rare, hard to duplicate, as well as non-substitutable" is the correct response.
Explanation:
Assesses as well as interprets companies' financial capabilities as well as stresses capacities and knowledge throughout the formulation of strategy to provides provision tangible benefits, is considered as RBV.Inputs that always encourage employees to exercise their business might be viewed as significant commodities.Actual indirect materials costs$11,800 $6,700 Actual indirect labor costs 55,600 45,900 Other overhead costs 16,000 49,900 Overhead applied 91,400 96,700 Storm Concert Promotions Determine whether overhead is overapplied or underapplied. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold. Valle Home Builders Determine whether overhead is overapplied or underapplied. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.
Answer:
See below
Explanation:
1. Actual costs = $11,800(indirect material + $55,600(indirect labor) + $16,000(other overhead costs) = $83,400(actual cost)
$91,400(overhead applied) - $83,400(actual cost) = Overhead applied is greater than the actual cost which means that overhead was over applied by $8,000
2. Debit: Manufacturing overhead $8,000
______ Credit: Cost of goods sold $8,000
3. Actual costs = $6,700(indirect material) + $45,900(indirect labor) + $49,900(other overhead costs) = $102,500
$96,700(overhead applied) - $102,000(actual costs) = Overhead applied is less than the actual costs which means that overhead was under applied by $5,800
4. Debit : Cost of goods sold $5,800
_______ Credit: Manufacturing overhead $5,800
If a company is operating in a developing or less-developed country, which type of challenge can arise that would affect the shipping and movement of physical goods in a country
Answer: b. an infrastructure challenge
Explanation:
Developing countries are not as infrautructurally advanced as developed countries. They do not always have good roads, airports in many areas or adequate railway networks.
When goods are being shipped therefore, these pose a problem to the company doing the shipping as they would have to surmount these challenges in order to get their products from point A to be. For instance, as a result of bad roads, more money would have to be spent maintaining trucks that get damaged.
On December 31, 2020, Lipton, Inc. sold $3,000,000 (face value) of bonds. The bonds are dated December 31, 2020, pay interest annually on December 31, and will mature on December 31, 2020 The following schedule was prepared by the accountant for 2020 Annual Interest Period Interest to Interest be paid Expense Amortization Unamortized Amount $75,000 51.750 Bond Carrying Value $2,925,000 2,948,250 1 $240,000 $263,250 $23,250 On the basis of the above information, answer the following questions What is the stated interest rate for this bond issue? Stated interest rate SHOW LIST OF ACCOUNTS What is the market interest rate for this bond issun? Market interest rate 5 What is the market interest rate for this bond issue? Market interest rate % SHOW LIST OF ACCOUNTS What was the selling price of the bonds as a percentage of the face value? (Round answer to 1 decimal place, e.g. 52.7.) Selling price SHOW LIST OF ACCOUNTS tudy Prepare the journal entry to record the sale of the bond issue on December 31, 2020. (Credit account titles are autofnatically indented wh manually.) Debit Date Account Titles and Explanation Dec 31, 2020 Credit SHOW LIST OF ACCOUNTS Prepare the journal entry to record the payment of interest and amortization of discount on December 31, 2021. (Credit account titles an entered. Do not indent manually.) Account Titles and Explanation Debit Dec 31, 2021 Date Credit ly SHOW LIST OF ACCOUNTS
Answer:
Lipton, Inc.
1. Stated interest = Annual interest/Face value of bonds * 100
= $240,000/$3,000,000 * 100
= 8%
2. The market interest rate for this bond issue = Interest Expense/Price of issued bonds * 100
= $263,250/$2,925,000 * 100
= 9%
3. The selling price of the bonds as a percentage of the face value
= $2,925,000/$3,000,000 * 100
= 97,5%
4. Journal Entries:
Date Account Titles and Explanation Debit Credit
Dec 31, 2020 Cash $2,925,000
Bonds Discounts 75,000
Bonds Payable $3,000,000
To record the issuance of the bonds at a discount.
5. Journal Entries:
Date Account Titles and Explanation Debit Credit
Dec 31, 2021 Interest Expense $263,250
Amortization of bond discounts $23,250
Cash $240,000
To record the payment of interest and amortization of discount.
Explanation:
a) Data and Calculations:
December 31, 2020
Face value of issued bonds = $3,000,000
Interest payment = December 31 annually
Unamortized Amount = $75,000
Price of issued bonds = $2,925,000 ($3,000,000 - $75,000)
Discount on bonds = $75,000 ($3,000,000 - $2,925,000)
Schedule:
2020 Annual Interest Interest Expense Amortization Bond Carrying Value
$2,925,000
1 $240,000 $263,250 $23,250 2,948,250
1. Stated interest = Annual interest/Face value of bonds * 100
= $240,000/$3,000,000 * 100
= 8%
2. The market interest rate for this bond issue = Interest Expense/Price of issued bonds * 100
= $263,250/$2,925,000 * 100
= 9%
3. The selling price of the bonds as a percentage of the face value
= $2,925,000/$3,000,000 * 100
= 97,5%
Analysis:
December 31, 2020:
Cash $2,925,000 Bonds Discounts $75,000 Bonds Payable $3,000,000
December 31, 2021:
Interest Expense $263,250 Amortization of bond discounts $23,250 Cash $240,000
Draw supply and demand graphs that estimate what will happen to demand, supply, and the equilibrium price of coffee if these events occur: Widely reported medical studies suggest that coffee drinkers are less likely to develop certain diseases.
Answer:
Please find the required diagram in the attached image
Explanation:
Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.
Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :
1. a change in consumers' expectation
2. a change in the taste of consumers
3. a change in income
As a result of the study, there would be an increase in the demand for coffee. This would shift the demand curve to the right. As a result, there would an increase in equilibrium price and quantity
A company is considering investing in a new machine that requires a cash payment of $38,198 today. The machine will generate annual cash flows of $15,904 for the next three years. What is the internal rate of return if the company buys this machine?
Answer:
Internal rate of return = 12%
Explanation:
Below is the calculation of internal rate of return:
The new machine requires cash payment = $38198
Annual cash flows = $15904
Time period = 3 years
First divide the cash payment with the annual cash flow and then look at the factor table to find the interest rate at 3rd year.
Factor = 38198 / 15904 = 2.40
Now look the value 2.40 in the table:
Thus Internal rate of return = 12%
Dixon Sales has four sales employees that receive weekly paychecks. Each earns $13 per hour and each has worked 40 hours in the pay period. Each employee pays 12% of gross in federal income tax, 3% in state income tax, 6.0% of gross in social security tax, 1.5% of gross in Medicare tax, and 0.5% in state disability insurance.
Required:
Journalize the recognition of the pay period ending January 19 that will be paid to the employees January 26.
Answer:
Jan. 19
Dr Sales Wages Expense $ 3,640.00
Cr Federal Income Tax Payable $ 436.80
Cr State Income Tax Payable $ 109.20
Cr Social Security Tax Payable $ 218.40
Cr Medicare Tax Payable $ 54.60
Cr State Disability Insurance $ 18.20
Cr Sales Wages Payable $ 2,802.80
Explanation:
Preparation of the journal for recognition of the pay period ending January 19 that will be paid to the employees January 26.
Jan. 19
Dr Sales Wages Expense $ 3,640.00 (7 *40 *13)
Cr Federal Income Tax Payable $ 436.80 (3,640 * 12%)
Cr State Income Tax Payable $ 109.20 (3,640 * 3%)
Cr Social Security Tax Payable $ 218.40 (3,640 * 6%)
Cr Medicare Tax Payable $ 54.60 (3,640* 1.5%)
Cr State Disability Insurance $ 18.20 (3,640 *0.5%)
Cr Sales Wages Payable $ 2,802.80
($3,640.00-$436.80-$109.20-$218.40-$54.60-$18.20)
Catrina Santana contributed a patent, accounts receivable, and $23,000 cash to a partnership. The patent had a book value of $8,000. However, the technology covered by the patent appeared to have significant market potential. Thus, the patent was appraised at $85,000. The accounts receivable control account was $38,000, with an allowance for doubtful accounts of $2,000. The partnership also assumed a $10,000 account payable owed to a Santana supplier. On December 31, provide the journal entry for Santana's contribution to the partnership.
Answer:
Date Account Title Debit Credit
12/31 Cash $23,000
Patent $85,000
Accounts Receivable $38,000
Accounts Payable $10,000
Allowance for doubtful debt $2,000
Capital $134,000
Use the following information to answer questions Skip to question [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 43,000 $ 52,000 Work in process 10,200 21,300 Finished goods 63,000 35,600 Activities and information for May Raw materials purchases (paid with cash) 210,000 Factory payroll (paid with cash) 345,000 Factory overhead Indirect materials 15,000 Indirect labor 80,000 Other overhead costs 120,000 Sales (received in cash) 1,400,000 Predetermined overhead rate based on direct labor cost 70 %
Answer:
Missing word "a. Direct labor usage. b. Indirect labor usage. c. Total payroll paid in cash. Prepare journal entries for the above transactions for the month of May"
S/n General Journal Debit Credit
a Work in Process inventory $265,000
($345,000 - $80,000)
Factory wages payable $265,000
(To record for Direct labor usage)
b Factory overhead $80,000
Factory wages payable $80,000
(To record for Indirect labor usage)
c Factory wages payable $345,000
Cash $345,000
(To record for Total payroll paid in cash)
The demand for aloe vera hand lotion, one of numerous products manufactured by Smooth Skin Care Products Inc., has dropped sharply because of recent competition from a similar product. The company's chemists are currently completing tests of various new formulas, and it is anticipated that the manufacture of a superior product can be started on December 1, one month in the future. No changes will be needed in the present production facilities to manufacture the new product because only the mixture of the various materials will be changed.
The controller has been asked by the president of the company for advice on whether to continue production during November or to suspend the manufacture of aloe vera hand lotion until December 1. The controller has assembled the following pertinent data:
Sales (400,000 units) $32,000,000
Cost of goods sold 28,330,000
Gross profit $3,670,000
Selling and administrative expenses 4,270,000
Loss from operations ($600,000)
The production costs and selling and administrative expenses, based on production of 400,000 units in October, are as follows:
Direct materials $15per unit
Direct labor 17per unit
Variable manufacturing cost 35per unit
Variable selling and administrative expenses 10 per unit
Fixed manufacturing cost $1,530,000 for October
Fixed selling and administrative expenses 270,000 for October
Sales for November are expected to drop about 20% below those of the preceding month. No significant changes are anticipated in the fixed costs or variable costs per unit. No extra costs will be incurred in discontinuing operations in the portion of the plant associated with aloe vera hand lotion. The inventory of aloe vera hand lotion at the beginning and end of November is expected to be inconsequential.
Required:
Prepare an estimated income statement in absorption costing form for November for aloe vera hand lotion, assuming that production continues during the month.
Answer:
Estimated loss from operations for aloe vera hand lotion in November = -$534,000.
Explanation:
The following calculations are done first:
Direct materials per unit = $15
Direct labor per unit = $17
Variable manufacturing cost per unit = $35
Fixed manufacturing cost per unit = Fixed manufacturing cost for October / Number of units in October = $1,530,000 / 400,000 = $3.825
Cost of goods sold per unit = Product cost per unit = Direct materials per unit + Direct labor per unit + Variable manufacturing cost per unit + Fixed manufacturing cost per unit = $15 + $17 + $35 + $3.825 = $70.825
Also, we have:
Expected sales in unit for November = Sales in unit for October * (100% - Expected percentage drop in sales) = 400,000 * (100% - 20%) = 320,00 units
Selling price per unit = Sales in October / Units sold in October = $32,000,000 / 400,000 = $80
Variable selling and administrative expenses per unit = $10
Fixed selling and administrative expenses for October = $270,000
Based on the above calculations, an estimated income statement in absorption costing form for November for aloe vera hand lotion can be prepared as follows:
Smooth Skin Care Products Inc.
Estimated Income Statement for Aloe Vera Hand Lotion
(Absorption Costing)
For November
Particulars $
Sales Revenue ($80 * 320,000) 25,600,000
Cost of good sold ($70.825 * 320,000) (22,664,000)
Gross profit 2,936,000
Selling and administrative expenses:
Variable ($10 * 320,000) (3,200,000)
Fixed (270,000)
Loss from operations (534,000)
Therefore, we have:
Estimated loss from operations for aloe vera hand lotion in November = -$534,000
W, Inc. plans to have the same inventories at year end as was in the beginning of the year. The expected total fixed costs for the year are $288000, and the estimated variable costs per unit are $14. The planned number of units to be sold during the year is 60000, and the average unit selling price is $20. The maximum sales level within the relevant range are 70000. Requirements: NOTE: (SHOW ALL WORK) 1. What is the contribution margin ratio
Answer:
i needd points
Explanation:
lol
Financial statements are inexorably moving to a model where all assets and liabilities will be measured on the basis of fair value rather than historical cost.
Required:
a. Discuss the conceptual differences between historical cost and fair value.
b. Discuss the merits and demerits of the two alternative measurement models.
c. What types of assets (or liabilities) more readily lend themselves to fair value measurements? Can we visualize a scenario where all assets are measured using fair value?
d. What are the likely effects of adopting the fair value model on reported income?
Answer:
Part a
historical cost = this is when we carry assets and liabilities at cost less accumulated depreciation or amortization.
fair value = this is when we carry assets and liabilities at amount that they could be exchanged for at arms length between market participants
Part b
Historical Cost
Merits : Value are easy to obtain since they are generated internally
Demerits : Is not very accurate.
Fair Value
Merits : Accurate method as it reflects market situation
Demerit : Costly as data and information is obtained externally
Part c
Assets : Investment Property and Financial assets measured through Profit and Loss
Liabilities : Bonds
Part d
Income is shown more accurately and eliminates biases form estimates.
Explanation:
Historical Method carries assets and liabilities at cost less accumulated depreciation or amortization while Fair Value Model carries assets and liabilities at amount that they could be exchanged for at arms length between market participants
bank holds $10 for every $100 in deposits. The bank wants to hold $9 for every $100 in deposits. The bank holds desired reserves of $7 comma 000 and actual reserves of $12 comma 000 . What is the actual reserve ratio, the desired reserve ratio, and the excess reserves ?
Answer:
Actual reserve ratio = Money that bank holds per deposit
= 10 / 100
= 10%
Desired reserve ratio = Money banks wants to hold per deposit
= 9 / 100
= 9%
Excess reserves = Actual reserves - desired reserves
= 12,000 - 7,000
= $5,000
Accounts receivable $ 18,000 Long-term notes payable $ 21,000 Accounts payable 11,000 Office supplies 2,800 Buildings 45,000 Prepaid insurance 3,560 Cash 7,000 Unearned services revenue 3,000 Compute Chavez Company's current ratio using the above information.
Answer: 2.24
Explanation:
Current ratio = Current Assets / Current liabilities
Current assets = Accounts receivable + Office supplies + Prepaid insurance + Cash
= 18,000 + 2,800 + 3,560 + 7,000
= $31,360
Current liabilities:
= Accounts payable + Unearned service revenue
= 11,000 + 3,000
= $14,000
Current ratio = 31,360 / 14,000
= 2.24
Suppose there is a simple one good economy that only produces spinning rims. In 2015, the economy was able to produce 1 million sets of spinning rims at an amazing price of $500 per set. In 2016, the economy was able to produce 1 million sets of spinning rims at a price of $1,000 per set. By what amount did real GDP increase between 2015 and 2016 in the simple one good economy
Answer: 0
Explanation:
Firstly, we will calculate the nominal value in 2015 which will be:
= $500 x 1 million
= $500 million
The nominal value in 2016 will be:
= $1000 x 1 million
= $1 billion
Real GDP will be the price of the base year multiplied by the quantity of the current year which will be:
= $500 million x 1 million sets
= $500 million
Therefore, the increase in real GDP is zero.
) An organization that evaluates the performance of automobiles wants to predict the performance of used cars (cars that are more than one year old). The objective is to predict COST, the maintenance cost (in dollars) of used cars for the first year after they are purchased by a new owner. The explanatory variable is:
Answer:
The explanatory variable is:
period of usage.
Explanation:
As the explanatory variable, the period of usage of the car does not depend on the maintenance cost or its performance. Instead, the maintenance cost and the performance of the automobile, which are response or dependent variables, depend on the period of usage. Period of usage (time) is always an independent or explanatory variable. In this organization, the performance of the automobile does not depend on the maintenance cost, but the two dependent variables (performance and maintenance cost) depend on the period of usage.
