Answer:
D. The quantity of a good demanded is equal to the quantity supplied.
Explanation:
Deman will not change, but supply decrease. Demand will decrease.
Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $400 per month plus $82 per job plus $10 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in September to be 20 jobs and 144 meals, but the actual activity was 16 jobs and 141 meals. The actual cost for catering supplies in September was $3,100. The catering supplies in the planning budget for September would be closest to:
Answer:
Standard cost Supplies= $3,480
Explanation:
Giving the following information:
The cost formula for catering supplies is $400 per month plus $82 per job plus $10 per meal.
The company expected its activity in September to be 20 jobs and 144 meals.
To calculate the total budgeted cost, we need to multiply the standard cost for the planned production:
Standard cost Supplies= 400 + (82*20) + (10*144)
Standard cost Supplies= $3,480
Brief Exercise 9-10 Cullumber Company sells equipment on September 30, 2019, for $16,000 cash. The equipment originally cost $71,000 and as of January 1, 2019, had accumulated depreciation of $41,000. Depreciation for the first 9 months of 2019 is $4,750. Prepare the journal entries to (a) update depreciation to September 30, 2019, and (b) record the sale of the equipment.
Answer:
A. Dr Depreciation Expense $4,750
Cr Accumulated Depreciation $4,750
B. Dr Accumulated Depreciation $45,750
Dr Cash $16,000
Dr Loss on Disposal of Plant Assets 9,250
Cr Equipment $71,000
Explanation:
A. Preparation of the journal entries to update depreciation to September 30, 2019
Dr Depreciation Expense $4,750
Cr Accumulated Depreciation $4,750
(Being to update depreciation )
B.Preparation of the journal entries to record the sale of the equipment
Dr Accumulated Depreciation $45,750
($41,000+$4,750)
Dr Cash $16,000
Dr Loss on Disposal of Plant Assets 9,250
($71,000-45,750-16,000)
Cr Equipment $71,000
(Being to record the sale of the equipment)
A small factory is considering replacing its existing coining press with a newer, more efficient one. The existing press was purchased three years ago at a cost of $200000, and it is being depreciated according to a 7-year MACRS depreciation schedule. The factoryâs CFO estimates that the existing press has 6 years of useful life remaining. The purchase price for the new press is $280000. The installation of the new press would cost an additional $20000, and this installation cost would be added to the depreciable base. The new press (if purchased) would be depreciated using the 7-year MACRS depreciation schedule although, as noted below, it would be retired/sold after 6 years. Interest expenses associated with the purchase of the new press are estimated to be roughly $4000 per year for the next 6 years.
The appeal of the new press is that it is estimated to produce a pre-tax operating cost savings of $81000 per year for the next 6 years. Also, if the new press is purchased, the old press can be sold for $30000 today. The CFO believes that the new press would be sold for $45000 at the end of its 6-year useful life. Assume that NWC would not be affected. The company has an average tax rate of 29% and a marginal tax rate of 34%. The cost of capital (i.e., the discount rate) for this project is 8.5%.
Required:
Develop the incremental cash flows for this replacement decision and use them to calculate NPV and IRR. Next, make a conclusion about whether or not the existing coining press should be replaced at this time.
Answer:
1. Incremental Cash Flows:
Cash Flows Total PV of annual
Cash Flows
After-tax operating savings $57,510 $261,877
Sale proceeds from old press 30,000 30,000
Sale proceeds from new press 45,000 27,583
Total incremental cash inflows $132,510 $319,460
Cost of new press $280,000 $280,000
Installation cost of new press 20,000 20,000
Interest expense (associated) 4,000 18,214
Total incremental cash outflows $340,000 $318,214
2. NPV $1,246 ($319,460 -$318,214)
IRR = the cost of capital that will cause the NPV to be zero. Since it is $1,246, to find the rate, that makes it zero, we do the following calculations:
$1,246/$318,214 * 100 = 0.4%
Cost of capital = 8.5%
3. IRR = 8.5 - 0.4 = 8.1%
4. Conclusion: The existing press should be replaced at this time.
Explanation:
a) Data and Calculations:
Cost of old press = $200,000
Estimated useful life remaining = 6 years
Cost of new press = $280,000
Installation cost = $20,000
Total cost of new press $300,000
Interest expenses per year for the new press = $4,000
Cost Savings from new press:
Pre-tax operating cost savings = $81,000 per year
After-tax savings = $57,510 ($81,000 * (1 - 29%))
Sales proceeds from old press = $30,000 today
Sale proceeds from new press = $45,000 (at the end of its 6-year life)
Average tax rate = 29%
Marginal tax rate = 34%
Cost of capital = 8.5%
Trueware Corporation is a start-up firm with a capital structure that includes 25 percent debt. Trueware has no preferred stock. The firm has two possible scenarios for its operations: Ruby or Emerald. The Ruby scenario has a 70 percent probability of occurring and the forecast earnings before interest and taxes (EBIT) in this scenario is $80,000. The Emerald scenario has a 30 percent chance of occurring and the EBIT is expected to be $32,000. Further, the firm's cost of debt is 10 percent. The firm has $500,000 in total assets and its marginal tax rate is 30 percent. The company has 22,000 shares of common stock outstanding. Calculate the difference in earnings per share (EPS) for the capital structure
Answer:
$1.53
Explanation:
Calculation to determine the difference in earnings per share (EPS) for the capital structure
Debt = 0.25 × Total assets = 0.25 × $500,000
Debt= $125,000
Equity = (1 − 0.25) × Total assets = 0.75 × $500,000
Equity = $375,000
Net income (NIRuby) = [EBIT - (Cost of debt × Total debt)] × (1 - Tax rate)
Net income (NIRuby) = [$80,000 - (0.10 × $125,000)] × (1 - 0.3)
Net income (NIRuby= $47,250
EPSRuby = Net income/Number of shares outstanding
EPSRuby = $47,250/22,000 shares
EPSRuby= $2.15 per share
Net income (NIEmerald) = [EBIT - (Cost of debt × Total debt)] × (1 - Tax rate)
Net income (NIEmerald) = [$32,000 - (0.10 × $125,000)] × (1 - 0.3)
Net income (NIEmerald) = $13,650
EPSEmerald = Net income/Number of shares outstanding
EPSEmerald = $13,650/22,000 shares
EPSEmerald= $0.62 per share
Difference between the earnings per share = $2.15 - $0.62
Difference between the earnings per share= $1.53
Therefore the difference in earnings per share (EPS) for the capital structure is $1.53
The law of diminishing marginal returns: a. states that each and every increase in the amount of the variable factor employed in the production process will yield diminishing marginal returns b. is a mathematical theorem that can be logically proved or disproved c. is the rate at which one input may be substituted for another input in the production process d. none of the above
Answer:
d. none of the above
Explanation:
In Economics, The law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.
Also, the marginal utility of goods and services is the additional satisfaction that a consumer derives from consuming or buying an additional unit of a good or service.
For example, buying a chocolate bar and eating it may satisfy your cravings but eating another one wouldn't give you as much satisfaction as the first due to diminishing marginal utility.
Consumers know that some fraction x of all new cars produced and sold in the market are defective. The defective ones cannot be identified except by those who own them. Cars do not depreciate with use. Consumers are risk-neutral and value nondefective cars at $10,000 each. New cars sell for $5,000 and used ones for $2,500. What is the fraction x
Answer:
x = 2/3
Explanation:
From the question, we have:
Probability of a defective car = x
Probability of a nondefective car = 1 - x
Value of defective car = Price of used cars = $2,500
Value of a nondefective car = $10,000
Expected value = Price of a new car = $5,000
The formula for calculating the expected value is given as follows:
Expected value = (Probability of a defective car * Value of defective car) + (Probability of a nondefective car * Value of a nondefective car) .......... (1)
Substituting all the relevant values into equation (1) and solve for x, we have:
$5,000 = (x * $2500) + (1 - x)$10,000
5,000 = 2500x + 10,000 - 10,000x
5000 - 10000 = 2500x - 10000x
-5000 = - 7500x
x = -5000 / - 7500
x = 2/3
During December, the production department of a process operations system completed and transferred to finished goods a total of 65,000 units of product. At the end of December, 15,000 additional units were in process in the production department and were 80% complete with respect to materials. The beginning inventory included materials cost of $57,500 and the production department incurred direct materials cost of $183,000 during December. Compute the direct materials cost per equivalent unit for the department using the weighted-average method. rev: 10_05_2019_QC_CS-184681 Multiple Choice $3.70. $2.38. $2.82. $3.12. $4.79.
Answer:
$3 per unit
Explanation:
The computation of the direct materials cost per equivalent unit is shown below:
Completed and transferred to finished goods 65,000 units
Equivalent number of additional units in process 15000 units
Beginning inventory material cost $57,500
Direct material cost incurred $183,000
Total direct material cost $240,500 ($57,500 + $183,000)
ANd, the total units is 80,000 (65,000 + 15,000)
So, the direct material cost per equivalent unit is
= $240,500 ÷ 80,000 units
= $3 per unit
You are a struggling song writer. You hear a group on the radio singing a song
that you wrote with a friend who is now managing the band. You want to
make sure you are not cheated out of your creative work. You have tried to
talk to the band but they won't respond. What writ would effectively stop the
band from earning income on that song until the problem is remedied?
A. Punitive damages
B. A restraining order
C. A permanent injunction
D. A mandatory injunction
Answer:
B. A retraining order i guess
g 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.
Answer:
$-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
What do we call the value of the next best alternative given up when a choice is made?
A opportunity cost
B sunk cost
C needs
D scarcity
Answer:
A) Opportunity Cost
Explanation:
Carey Company had sales in 2016 of $1,560,000 on 60,000 units. Variable costs totaled $900,000, and fixed costs totaled $500,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3). However, to process the new raw material, fixed operating costs will increase by $100,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold.
(a) Prepare a projected CVP income statement for 2017, assuming the changes have not been made, and
(b) assuming that changes are made as described.
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price per unit= 1,560,000 / 60,000= $26
Unitary variable cost= 900,000 / 60,000= $15
Fixed costs= $500,000.
First, the income statement without the changes:
Sales= 1,560,000
Total varaible cost= (900,000)
Contribution margin= 660,000
Total fixed costs= (500,000)
Net operating income= 160,000
Now, with the changes:
Unitary variable cost= (15*0.8)= 12
Selling price= 26 - 1.5= $24.5
Sales in units= 60,000*1.05= 63,000
Fixed costs= 500,000 + 100,000= $600,000
Sales= 24.5*63,000= 1,543,500
Total variable cost= (12*63,000)= (756,000)
Total contribution margin= 787,500
Fixed costs= (600,000)
Net operating income= 187,500
Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 41,796 games next year (an increase of 9,396 games, or 29%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year
Question Completion:
Magic Realm, Inc., has developed a new fantasy board game. The company sold 32,400 games last year at a selling price of $67 per game. Fixed expenses associated with the game total $567,000 per year, and variable expenses are $47 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 41,796 games next year (an increase of 9,396 games, or 29%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year?
Answer:
Magic Realm, Inc.
1-a. Contribution-Format Income Statement
For the last year ended December 31
Sales revenue $2,170,000 (32,400 * $67)
Variable costs 1,522,800 (32,400 * $47)
Contribution $647,200 (32,400 * $20)
Fixed expenses 567,000
Net operating income $80,200
1-b. Degree of Operating Leverage = Contribution/Net operating income
= 8.07
The expected percentage increase in net operating income for next year
= 235.3%
Explanation:
a) Data and Calculations:
Last year's figures:
Sales = 32,400 games
Selling price per game = $67
Variable cost per game = $47
Fixed expenses = $567,000 per year
1-a. Contribution-Format Income Statement
For the last year ended December 31
Sales revenue $2,170,000 (32,400 * $67)
Variable costs 1,522,800 (32,400 * $47)
Contribution $647,200 (32,400 * $20)
Fixed expenses 567,000
Net operating income $80,200
1-b. Degree of Operating Leverage = Contribution/Net operating income
= $647,200/$80,200 = 8.07
2. Next year:
Sales = 41,796 games
Sales revenue = $2,800,332 (41,796 * $67)
Variable cost = 1,964,412 (41,796 * $47)
Contribution = $835,920
Fixed costs = 567,000
Net operating income $268,920
The expected percentage increase in net operating income for next year
Increase in net operating income = $188,720 ($268,920 - $80,200)
= $188,720/$80,200 * 100 = 235.3%
On January 1, 2019, Wasson Company purchased a delivery vehicle costing $47,550. The vehicle has an estimated 7-year life and a $4,500 residual value. Wasson uses the units-of-production depreciation method and Wasson estimates that the vehicle will be driven 105,000 miles. What is the vehicle's book value as of December 31, 2020, assuming the vehicle was driven 10,500 miles during 2019 and driven 18,500 miles during 2020
Answer:
$35,660
Explanation:
the depreciable value of the vehicle = $47,550 - $4,500 = $43,050
depreciation expense per mile driven = $43,050 / 105,000 miles = $0.41
depreciation expense 2019 = $0.41 x 10,500 = $4,305
depreciation expense 2020 = $0.41 x 18,500 = $7,585
accumulated depreciation = $11,890
book value = $47,550 - $11,890 = $35,660
Knowledge Check 01 The standard quantity per unit defines the ________. multiple choice price that should be paid for each unit of direct materials. total cost of direct materials that should be used for each unit of finished product. amount of direct materials that should be used for each unit of finished product including an allowance for normal inefficiencies, such as scrap and spoilage. amount of direct labor-hours that should be used to produce one unit of finished goods.
Answer:
amount of direct materials that should be used for each unit of finished product including an allowance for normal inefficiencies, such as scrap and spoilage.
Explanation:
Standard quantity per unit is defined as materials that the manufacturer needs to complete a unit of a product. It also allows for inefficiencies such as spoilage and scrap.
It is used by managers to reduce wastage that exists during production by allocation of only the required amount of direct materials in the production process.
alculating Net Float [LO1] Each business day, on average, a company writes checks totaling $17,000 to pay its suppliers. The usual clearing time for the checks is four days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $22,000. The cash from the payments is available to the firm after two days
Answer:
A.Collection Float ($44,000)
Disbursements Float $68,000
Net Float $24,000
B.Collection Float ($44,000)
Disbursement Float $68,000
Net Float $24,000
Explanation:
A. Calculation the company's disbursement float, collection float, and net float
Per Day Clearing Days Float
Collection Float ($22,000) ×2days = ($44,000)
Disbursements Float $17,000 × 4days = $68,000
Net Float $24,000
($68,000-$44,000)
B. Calculation for the company's disbursement float, collection float, and net float if the collected funds were available in two days instead of four
Per Day Clearing Days Float
Collection Float ($22,000) ×2 days =($44,000)
Disbursement Float $41,500 ×4days= $68,000
Net Float $24,000
($68,000-$44,000)
Hence,
A.Collection Float ($44,000)
Disbursements Float $68,000
Net Float $24,000
B.Collection Float ($44,000)
Disbursement Float $68,000
Net Float $24,000
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
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Suppose that applying for membership in the European Monetary Union (EMU) is expensive, so three hypothetical countries, Baltia, Polsha, and Atlantida, have come to you with their relevant data and want advice on if they should apply to join the EMU. Suppose that the average inflation rate of the three European countries with the lowest inflation rates is 3.0%, and the average long-term interest rate of those countries is 3.2%.
Evaluate the characteristics of Baltia, Polsha, and Atlantida presented in the following table using the Maastricht convergence criteria. Then, complete the bottom row by identifying whether each country is eligible to become an EMU member.
Criteria Baltia Polsha Atlantida
Inflation 4.5% 4.0% 4.1%
Long-term interest rates 5.0% 4.0% 3.0%
Exchange rates Last devaluated three years ago Stable Stable
Budget deficit 2.4% of GDP 3% of GDP 2.1% of GDP
Debt outstanding 45% of GDP 45% of GDP 46% of GDP
Qualifies to enter the EMU ? ? ?
Answer:
European Monetary Union Membership
All three countries are eligible to enter into the European Monetary Union, having met all the Maastricht convergence criteria.
Note that Baltia devalued its currency in the last three years and not two as set by the exchange rate criterion.
Explanation:
a) Maastricht convergence criteria are:
1. Price stability: the inflation rate not more than 1.5 point of average best three.
2. Deficit not more than 3% of GDP.
3. Government debt must not exceed 60% of GDP.
4. Exchange rate: No currency devaluation in last two years.
5. Long-term interest rates: not more than 2% higher than those of the three best performing Member states in terms of price stability.
b) The Maastricht Convergence Criteria Performances:
Criteria Baltia Polsha Atlantida
Inflation 4.5% 4.0% 4.1%
Long-term interest rates 5.0% 4.0% 3.0%
Exchange rates Last devalued Stable Stable
3 years ago
Budget deficit 2.4% of GDP 3% of GDP 2.1% of GDP
Debt outstanding 45% of GDP 45% of GDP 46% of GDP
Qualifies to enter
the EMU ? ? ?
c) The Maastricht Convergence Criteria Matching:
Criteria Baltia Polsha Atlantida Decision
Inflation 4.5% 4.0% 4.1%
Lowest EU inflation rates 3.0% 3.0% 3.0%
Difference 1.5 1.0 1.1 Met
Maastricht criteria 1.5 1.5 1.5
Long-term interest rates 5.0% 4.0% 3.0%
Highest EU rates 3.2% 3.2% 3.2%
Difference 1.8 0.8 -0.2 Met
Maastricht criteria 2% 2% 2%
Exchange rates Last devalued Stable Stable Met
3 years ago
Budget deficit 2.4% of GDP 3% of GDP 2.1% of GDP
Maastricht criteria 3% of GDP 3% of GDP 3% of GDP Met
Debt outstanding 45% of GDP 45% of GDP 46% of GDP
Maastricht criteria 60% of GDP 60% of GDP 60% of GDP Met
Qualifies to enter
the EMU YES YES YES
20 POINTS AND BRAINLIEST. Mike wants to pursue a job in energy. He goes to college to become
an electrician but before he can have his own license, he must work
for a licensed electrician for two years to gain experience. This is an
example of a(n)
internship
apprenticeship
bachelor's degree program
doctorate program
Answer:
appreticeship
Explanation:
Have a good day! I hope this helps. Please let me know if I get this correct :)
After analyzing the scenario, this is an example of an apprenticeship. Thus, option B is the correct option.
What is apprenticeship?A new generation of practitioners of a trade or profession are trained through the apprenticeship system, which combines classroom instruction and reading with on-the-job training. Apprenticeships can also help professionals get a license to work in a regulated field. The majority of their training is completed while they are employed by an employer that assists the apprentices in learning their trade or profession in exchange for their continuous labor for a certain length of time once they have attained demonstrable competence.
The duration of apprenticeships varies greatly between industries, occupations, roles, and cultures. The "journeyman" or professional certification level of competence may occasionally be attained by those who successfully complete an apprenticeship.
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The financial statements of New World, Incorporated, provide the following information for the current year: December 31 January 1 Accounts receivable $ 287,000 $ 381,500 Inventory $ 280,000 $ 266,000 Prepaid expenses $ 72,800 $ 70,000 Accounts payable (for merchandise) $ 258,300 $ 249,550 Accrued expenses payable $ 66,150 $ 79,450 Net sales $ 3,167,500 Cost of goods sold $ 1,669,500 Operating expenses (including depreciation of $63,000) $ 381,500 What is the amount of cash received from customers during the current yea
Nthanda Corporation has just completed a physical inventory count at year end, December 31, 2020. Only the items on the shelves, in storage, and in the receiving area were counted and costed on the FIFO basis. The inventory amounted to K80,000. During the audit, the independent Accountant discovered the following additional information:
(a) There were goods in transit on December 31, 2020, from a supplier with terms FOB Shipping Point, costing K10,000. Because the goods had not arrived, they were excluded from the physical inventory count.
(b) On December 27, 2020, a regular customer purchased goods for cash amounting to K1,000 and had them shipped to a bonded warehouse for temporary storage on December 28, 2020. The goods were shipped via common carrier with terms FOB Destination. The customer picked the goods up from the warehouse on January 4, 2021. Nthanda Company had paid K500 for the goods and, because they were in storage, Nthanda included them in the physical inventory count.
(c) Nthanda Company, on the date of the inventory, received notice from a supplier that goods ordered earlier, at a cost ofK4,000, had been delivered to the transportation company on December 28, 2020; the terms were FOB shipping point. Because the shipment had not arrived on December 31, 2020, it was excluded from the physical inventory.
(d) On December 31, 2020, there were goods in transit to customers, with terms FOB shipping point, amounting to K800 (expected delivery on January 8, 2021). Because the goods had been shipped, they were excluded from the physical inventory count.
(e) On December 31, 2020, Nthanda Company shipped K2,500 worth of goods to a customer, FOB destination. The goods arrived on January 5, 2020. Because the goods were not on hand, they were not included in the physical inventory count.
(f) Nthanda Company, as the consignee, had goods on consignment that cost K3,000. Because these goods were on hand as of December 31, 2020, they were included in the physical inventory count.
Required
i. Pass an analysis of the above information and calculate a correct amount for the ending inventory. Give explanation of the basis for your treatment of each item.
how can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?
Answer:
as agriculture is in the primary sector an increase in the employment of that sector can indicate its in the primary sector .
Explanation:
industrialisation is the increase in the importance of the secondary sector of industry.
During its first year of operations, Mack's Plumbing Supply Co. had sales of $580,000, wrote off $9,300 of accounts as uncollectible using the direct write-off method, and reported net income of $63,800. Determine what the net income would have been if the allowance method had been used, and the company estimated that 2.5% of sales would be uncollectible. $ fill in the blank 1
Answer: $58600
Explanation:
The net income that would have been if the allowance method had been used, and the company estimated that 2.5% of sales would be uncollectible will be calculated thus:
= Reported net income + Uncollectible - (Sales × % Uncollectible)
= $63800 + $9300 - ($580000 × 2.5%)
= $63800 + $9300 - $14500
= $58600
International Gems sells fine jewelry and has implemented activity-based costing. Costs in the shipping department have been divided into three cost pools. The first cost pool contains costs that are related to packaging and shipping. International has determined that the number of boxes shipped is an appropriate cost driver for these costs. The second cost pool is made up of costs related to the final inspection of each item before it is shipped and the cost driver for this pool is the number of individual items that are inspected. The final cost pool is used for general operations of the department and the cost driver is the number of orders. Information about the activities is summarized below:
Cost Pool Estimated Total Costs Cost Driver Estimated Annual Activity
Packaging and shipping 67,200 Number of boxes shipped 16,000 boxes
Final inspection 200,000 Number of individual items inspected 100,000 items
General operations 85,000 Number of orders 10,000 orders
During the period, the Southern sales office generated 240 orders for a total of 3,560 items, which were shipped in 1,200 boxes. What amount of shipping department costs should be allocated to these sales?
Answer:67,200
Explanation:
The shipping department cost will be $14200.
What is the cost?The term cost can be termed as the price of buying something or the amount that a company spends on making a product. It is the amount that is charged on something for the product. The incurred cost can have many variables and non-variable costs like purchasing cost, labor, wages, rent, maintenance, raw material, processing cost, packaging, and transportation.
In this Question, the International gems sell their product slots. The shipping department has been divided into three cost pools. The total shipping charges will be the addition of packaging and shipping, Final Inspection, and General operations.
So, the total shipping cost =5040 + 7120 + 2040 = 14200
Thus, the costs that should be allocated to the sales with respect to the shipping charges will be $14,200.
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On January 1, Bloomingdale, Inc. borrows $92,000 from First Estate Bank. The loan is due in one year along with 4% interest. The company is preparing its quarterly report for March 31. Which of the following best describes the necessary accrual for interest expense?
a. $3,680 decrease liabilities, decrease cash
b. $3680 increase expenses, decrease cash
c. $ 920 decrease abilities, decrease cash
d. $920 increase abities, increase expenses
Answer:
d. $920 increase liabilities, increase expenses
Explanation:
The journal entry is given below:
On March 31
Interest Expense Dr. $920 ($92,000 × 4% × 3 ÷ 12)
To Interest Payable $920
(being interest expense is recorded)
Here interest expense is debited as it increased the expense and credited the liabilities as it also increased the liabilities
Therefore the option d is correct
Graham Corp. has 1,000 cartons of oranges that were harvested at a cost of $30,400. The oranges can be sold as is for $36,400. The oranges can be processed further into orange juice at an additional cost of $13,000 and be sold at a price of $53,000. The net benefit (additional income) from processing the oranges into orange juice instead of selling as is would be:rev: 12_08_2020_QC_CS-243270Multiple Choice$(3,600).$16,600.$3,600.$40,000.$(16,600).
Answer:
c. $3,600
Explanation:
The total cost of orange juice = $30,400 + $13,000
The total cost of orange juice = $43,400
So, the profit on the orange juice = $53,000 - $43,400 = $9,600
Profit when oranges are sold without juice = $36,400 - $30,400
Profit when oranges are sold without juice = $6,000
So, extra income = $$9,600 - $6,000 = $3,600
Thus, the net benefit (additional income) from processing the oranges into orange juice instead of selling as is would be is $3,600
Help! Select the qualification that is best demonstrated in each example.
Melanie is a fitness instructor who encourages her students to achieve their goals. ____
1. Ability to handle money
2. Accuracy and attention to detail
3. Leadership skills
4. Organizational skills
Jacob counts and organizes cash at a casino. _____
1. Maintenance of safety
2. Communication skills
3. Teamwork skills
4. Ability to handle money
Adra is proud that she has never had an accident while running a ride at an amusement park. ______
1. Organizational skills
2. Leadership skills
3. Ability to operate equipment safety
4. Communication skills
Juan plans fun activities for groups of people. _____
1. Communication skills
2. Accuracy
3. Teamwork skills
4. Organizational
Answer:
What ghazaryanelen101 Said ↑↑↑↑
Explanation:
Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below:
Overhead costs:
Equipment depreciation $ 47,000
Supervisory expense $ 6,000
Distribution of Resource Consumption Across Activity Cost Pools:
Activity Cost Pools
Machining Order Filling Other
Equipment depreciation 0.60 0.10 0.30
Supervisory expense 0.60 0.20 0.20
In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:
Activity:
MHs (Machining) Orders (Order Filling)
Product C9 6,900 200
Product U0 3,100 800
Total 10,000 1,000
What is the overhead cost assigned to Product C9 under activity-based costing?
Answer:
$23,122
Explanation:
Calculation to determine the overhead cost assigned to Product C9 under activity-based costing
First step is to calculate the cost allocation to machining activity and order filling
MACHINING
Equipment depreciation (0.60 : 0.10 : 0.30)
Machining=$47,000 x 0.60 = $28,200
Supervisory expense (0.60 : 0.20 : 0.20) Machining=$6,000 x 0.60 = $3600
Total $31,800
($28,200+$3,600)
ORDER FILLING
Equipment depreciation (0.60 : 0.10 : 0.30)
Order filling=$47,000 x 0.10 = $4,700
Supervisory expense (0.60 : 0.20 : 0.20)
Order filling=$6000 x 0.20 = $1,200
Total $5,900
($4,700+$1,200)
Second step is to calculate the Assign overhead costs to products:
Assign overhead costs to products:
Machining= $31,800 ÷ 10,000 MHs
Machining= $3.18 per MHOrder
Order Filling=$5,900 ÷ 1,000 orders
Order Filling = $5.90 per order
Now let calculate the Overhead cost for Product C9
Machining= $3.18 per MH × 6,900
Machining=$21,942
Order Filling= $5.90 per order × 200 Orders Order Filling=$1,180
TOTAL $23,122
($21,942+$1,180)
Therefore the overhead cost assigned to Product C9 under activity-based costing is $23,122
Watmore Ltd. purchased, for cash, factory equipment with an invoice price of $80,000. Other costs incurred were freight costs, $1,600; installation, wiring and foundation, $13,500; material and labour costs in testing equipment, $500; oil lubricants and supplies to be used while operating the equipment, $750; fire insurance policy covering equipment, $1,400. The equipment is estimated to have a $10,000 residual value at the end of its 8-year useful service life.
Instructions
(a) Calculate the cost of the equipment.
(b) Record the purchase of the equipment.
(c) Calculate the annual depreciation expense, assuming the straight-line method of depreciation is used.
Answer:
a. The cost of the equipment = Invoice price + Freight cost + Installation wiring and foundation cost + Material and labor cost in testing equipment
The cost of the equipment = $80000 + $1600 + $13500 + $500
The cost of the equipment = $95,600
b. Journal Entry to record the purchase of the equipment
Equipment $95,600 - Debit
To Cash $95,600 - Credit
c. Annual depreciation expense =(Cost of equipment - Salvage value) / Useful life
Annual depreciation expense = ($95,600 - $10,000) / 8
Annual depreciation expense = $85,600 / 8
Annual depreciation expense = $10,700
Teozocior.01.010
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.
Which of the following is true of downward communication?
a. Recording a project's results and accomplishments involves downward communication.
..
O b. The process of creating progress reports is an example of downward communication.
5.
c. Problem solving and clarifications in organizations involve downward communication.
7.
d. Orientation to a company's rules and practices is an element of downward communication.
8.
о
9.
10.
C
11.
Answer:
When the federal government spends more money than it receives in taxes in a ... spending over time in nominal dollars is misleading because it does not take ... defense spending as a share of GDP has generally declined since the 1960s, ... Healthcare expenditures include both payments for senior citizens (Medicare), ...
Explanation:
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