An electronics manufacturer in Japan creates a strategic partnership with a
large retailer in the United States. They both invest funds into the partnership
and share in the control of the distribution and resources. The Japanese
company gets a tax advantage because of this partnership, and the U.S.
company gets an advantage because of the exclusivity agreement to carry
these electronic products. Which type of global entry strategy does this
example highlight?
Answer:
Creating a joint venture.
Explanation:
A foreign direct investment (FDI) can be defined as an investment made by an individual or business entity (investor) into an investment market (industry) located in another country. The investor here, shares a different country of origin from the country where his investment is located. In a foreign direct investment (FDI), an investor must establish his business, factory and operations in a foreign country or acquire assets in a business that is being operated in a foreign country.
Additionally, foreign direct investment (FDI) are categorized into three (3) main types and these are;
1. Vertical FDI: it involves establishing a different business that is however similar to the main business owned by the investor.
2. Horizontal FDI: it involves establishing the same type of business in a foreign country as owned in the investor's country.
3. Conglomerate FDI: it involves establishing a business that is completely different in another (foreign) country.
A joint venture can be defined as a type of business partnership which typically involves making direct investment in a foreign country with a domestic partner. It is typically established or initiated by two or more people on mutual grounds to make profits and sharing costs.
In this scenario, an electronics manufacturer in Japan creates a strategic partnership with a
large retailer in the United States.
Thus, the type of global entry strategy which this example highlight is creating a joint venture.
Ware Manufacturing Company produced 2,000 units of inventory in January 2018. It expects to produce an additional 14,000 units during the remaining 11 months of the year. In other words, total production for 2018 is estimated to be 16,000 units. Direct materials and direct labor costs are $64 and $52 per unit, respectively. Ware expects to incur the following manufacturing overhead costs during the 2018 accounting period:
Production supplies $ 20,000
Supervisor salary 160,000
Depreciation on equipment 75,000
Utilities 20,000
Rental fee on manufacturing facilities 45,000
Required
a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units
b. Determine the cost of the 2,000 units of product made in January Complete this question by entering your answers in the tabs below.
Required A Required B
Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units Predetermined overhead rate per unit < Required A Required B >
Answer:
Total production cost= $266,380
Explanation:
First, we need to calculate the total estimated overhead costs:
total estimated overhead costs= 20,000 + 160,000 + 75,000 + 20,000
total estimated overhead costs= $275,000
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= 275,000 / 16,000
Predetermined manufacturing overhead rate= $17.19 per unit
Finally, we can calculate the total production cost of the 2,000 units made in January:
Total production cost= total unitary cost*number of units
Total production cost= (64 + 52 + 17.19) * 2,000
Total production cost= $266,380
You want to be able to withdraw $800 from a savings account at the end of year 1, $900 at the end of year 2, $1,000 at the end of year 3, and so on over a total of 5 years. How much money must be on deposit right now, at the end of year 0, to just deplete the account after the 5 withdrawals if interest is 5% compounded annually
Stockton Company Adjusted Trial Balance December 31 Cash 6,102 Accounts Receivable 2,938 Prepaid Expenses 703 Equipment 15,970 Accumulated Depreciation 6,337 Accounts Payable 1,719 Notes Payable 4,543 Common Stock 1,000 Retained Earnings 10,872 Dividends 916 Fees Earned 6,176 Wages Expense 2,514 Rent Expense 761 Utilities Expense 459 Depreciation Expense 233 Miscellaneous Expense 51 Totals 30,647 30,647 Determine the retained earnings ending balance.
Answer:
Stockton Company
The retained earnings ending balance is:
= $12,114.
Explanation:
a) Data and Calculations:
Stockton Company
Adjusted Trial Balance December 31
Cash 6,102
Accounts Receivable 2,938
Prepaid Expenses 703
Equipment 15,970
Accumulated Depreciation 6,337
Accounts Payable 1,719
Notes Payable 4,543
Common Stock 1,000
Retained Earnings 10,872
Dividends 916
Fees Earned 6,176
Wages Expense 2,514
Rent Expense 761
Utilities Expense 459
Depreciation Expense 233
Miscellaneous Expense 51
Totals 30,647 30,647
Income Statement for the year:
Fees Earned $6,176
Wages Expense 2,514
Rent Expense 761
Utilities Expense 459
Depreciation Expense 233
Miscellaneous Expense 51 4,018
Net Income $2,158
Statement of Retained Earnings for the year:
Net Income $2,158
Retained Earnings 10,872
Dividends (916)
Retained Earnings, ending $12,114
