Answer and Explanation:
The computation of interest payments is shown below:-
Let us assume the par value be $1,000
1. Interest payment = $1,000 × Coupon rate
= $1,000 × 8.2%
= $82
2.
The computation of sold bond is shown below:-
Sold bonds = 1,000 × coupon rate ÷ Yield to maturity × (1 - 1 ÷ 1.072^number of years) + 1,000 ÷ 1.072^number of years
= 1,000 × 8.2% ÷ 7.2% × (1 - 1 ÷ 1.072^9) + 1000 ÷ 1.072^9
= $1,064.601613
3.
The computation of the bond price is shown below:-
= 1000 × 8.2% ÷ 6.2% × (1 - 1 ÷ 1.062^9) + 1,000 ÷ 1.062^9
= 1134.857572
So, the price increases by $70.25595933
4.
The current yield is more than the yield to maturity.
Jason West, owner of the XL Cleaning, LLC, began his business in 2012. Jason's primary focus had been on cleaning offices for large corporations, but in recent months, Jason has seen a decline in demand for cleaning services. Surprisingly, the competitive environment appears relatively stable with no new major competitors. As Jason thought about his situation, he realized that he needed to better understand how customers assess service quality and what they were looking for in a superior cleaning service. Jason developed a detailed research plan. First, he gathered his competitors' information -- primarily through brochures, browsing their websites, as well as making some phone calls -- to fund out exactly what the competition offered as part of their cleaning services. In addition, Jason obtained an updated list of 423 local companies and their addresses from the Chamber of Commerce in his area. Although this list contains 423 local company names, Jason has decided to survey 100 of them. Jason gathered information about the competing firms from brochures, phone calls, and the Internet. Obtaining this type of information is an example of ________
Answer:
secondary data research source
Explanation:
Note, secondary data research source is the type of data collected by one party for some other reasons but may later be used by another different party.
Thus, Jason West happens to be the later party since we are told he gathered information about the competing firms by going to the Chamber of Commerce, then to brochures, phone calls, and the Internet which makes it a good example of secondary data research source.
Dake Corporation's relevant range of activity is 4,500 units to 8,500 units. When it produces and sells 6,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.40 Direct labor $ 3.50 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 2.20 Fixed selling expense $ 0.90 Fixed administrative expense $ 0.60 Sales commissions $ 0.70 Variable administrative expense $ 0.60 For financial reporting purposes, the total amount of product costs incurred to make 6,500 units is closest to:
Answer:
Product costs= $77,350
Explanation:
The product costs are those incurred directly into production. In this case, it is for financial purposes, therefore we take into account the variable costs. If it were for accounting purposes, it can incorporate the fixed overhead.
Product costs= direct material + direct labor + variable overhead
Product costs= 6,500*(6.4 + 3.5 + 2)
Product costs= $77,350
In emerging markets, consumer incomes and buying power are
decreasing
stable
fluctuating
increasing
Answer:increasing
Explanation:just took a quiz and got it correct
In emerging markets, consumer incomes and buying power are increasing. Thus, option D is correct.
After taxes, consumer income is the amount that can be deducted. It may also be characterized as a gain of wealth, particularly as a result of labor or investment. Individual income is referred to as personal income. Net income is what remains after all deductible taxes have been taken out.
If a consumer's income rose and the company sold typical things, business would likely grow. The firm will see a decline if a consumer's income drops. The converse is true if the company sells subpar items, like a cheap shop.
Therefore, option D is the ideal selection.
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List the three types of résumé formats.
Answer:
Chronological: Classic format that lists your work experience in order, starting with the most recent.
Functional: Emphasizes qualifications and accomplishments instead of specific jobs, but isn’t recommended.
Hybrid: Modern format where skills and highlights go at the top before a detailed work history.
Explanation: brainliest pls
A single-page summary of relevant background and work experience with all credentials and publications pertinent to the job a candidate is applying for is called a resume.
The common resume formats are:
FunctionalChronologicalCombinationFunctional: It emphasizes professional skills rather than the job duration and period in which a person was engaged.
It focuses on skillfulness and proficiency over your work account and is commonly a skill-based format.
Chronological: In this type of format your work experience and educational information are listed in the reverse order that is from the most to least recent.
Combination: It is a combination of both functional and chronological resumes and summarizes the professional as well as the skills. The resume consists of skills mentioned before the work experience.
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State three major features of an organisation
Answer:
1. Composition of Interrelated Individuals
2. Deliberate and Conscious Creation and Recreation
3. Achievement of Common Objectives
Answer:
division of work
coordination
co operative relationship
Issued $25,000 of QCI stock for cash. Incurred $600 of utilities costs this month and will pay them next month. Incurred and paid wages for the current month, totaling $2,000. Performed cleaning services on account worth $2,800. Some of Quick Cleaners’s equipment was repaired at a total cost of $150. The company paid the full amount at the time the repair work was done. Required: Prepare journal entries for the above transactions, which occurred during a recent month. Determine QCI’s preliminary net income.
Answer:
A.
a.Dr Cash 25,000
Cr Common Stock 25,000
b. Dr Utilities expense 600
Cr Utilities payable 600
c. Dr Wages expense 2,000
Cr Cash 2,000
d. Dr Account receivable 2,800
Cr Service revenue 2,800
e. Dr Repairs expense 150
Cr Cash 150
B. $50
Explanation:
Preparation of Journal entries
a. Based on the information given we were told that the amount of $25,000 of QCI stock for cash was issued which means that the Journal entry will be :
Dr Cash 25,000
Cr Common Stock 25,000
b. Based on the information given we were told that they Incurred the amount of $600 of utilities costs which means that the Journal entry will be :
Dr Utilities expense 600
Cr Utilities payable 600
c. Based on the information given we were told that the company Incurred and as well paid wages totaling the amount of $2,000 which means that the Journal entry will be :
Dr Wages expense 2,000
Cr Cash 2,000
d. Based on the information given we were told that the company Performed cleaning services that cost $2,800 which means that the Journal entry will be:
Dr Account receivable 2,800
Cr Service revenue 2,800
e. Based on the information given we were told that the Cleaners’s equipment was repaired at the amount of $150 which means that the Journal entry will be :
Dr Repairs expense 150
Cr Cash 150
2) Calculation for the Net income
Net income = 2,800-2,000-150-600
Net income = $50
Therefore net income will be $50
Suppose the following are data for a given year from the annual Economic Report of the President. Calculate GDP using the Expenditure approach. Amount Corporate profits $ 305 Capital consumption allowance 479 Gross private domestic investment 716 Personal taxes 565 Personal saving 120 Government purchases 924 Imports 547 Net Interest 179 Rental Income 19 Exports 427 Personal consumption expenditures 2,966 Dividends 87 Indirect business taxes 370 Contributions for Social Security (FICA) 394 Transfer payments 543
Answer:
4,486
Explanation:
The computation of GDP using the Expenditure approach is shown below:-
GDP using Expenditure Approach = Gross Private Domestic Investment + Govt. Purchases + (Exports - Imports) + Personal Consumption Expenditure
= 716 + 924 + (427 - 547) + 2966
= 4606 - 120
= 4,486
Therefore for computing the GDP using the Expenditure approach we simply applied the above formula.
For a given market, suppose that the quantity demanded is 240 units if the price is $20 and the quantity demanded is 275 units if the price is $16. In addition, the quantity supplied is 240 units if the price is $20 and the quantity supplied is 200 units if the price is $16. If the actual price in the market is $16 then a shortage of 75 units would exist and price would rise.
a. Trueb. False
Answer:
true
Explanation:
Equilibrium is the point at which quantity supplied equals quantity demanded. Above equilibrium price, there would be excess supply and below equilibrium price, there would be excess demanded and a shortage.
Equilibrium price is $20 units and equilibrium quantity s 240 units
When price is $16, demand is 275 and supply is 200 units
Shortage = 275 - 200 = 75 units
Total Per Unit Sales $ 624,000 $ 40 Variable expenses 436,800 28 Contribution margin 187,200 $ 12 Fixed expenses 152,400 Net operating income $ 34,800 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $56,400? 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 5. What is the company’s CM ratio? If the company can sell more units thereby increasing sales by $94,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?
Answer: See explanation
Explanation:
1. What is the monthly break-even point in unit sales and in dollar sales?
Break even point in unit sales:
= Fixed expenses/Unit Contribution margin
= 152,400/12
= 12,700 units
Break even point in dollar sales will be:
= 152,400×40/12
= $508,000
2. Without resorting to computations, what is the total contribution margin at the break-even point?
Total contribution margin at the break even point will be the unit Contribution margin multiplied by the break even point in units
= 12× $12,700
= $152,400
3-a. How many units would have to be sold each month to attain a target profit of $56,400?
Sales in units:
= ($152,400+$56400)/12
= $208800/12
= 17400
b. Verify your answer by preparing a contribution format income statement at the target sales level.
Sales (17400×40) = $696,000
Less: Variable expenses (17400×28) = $487,200
Contribution margin = $208,800
Less: Fixed expenses = $152,400
Net operating income = $56,400
Since net operating income is also $56,400, the answer has been verified.
4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms.
Margin of safety in dollars will be:
= Sales - Break even sales
= 624,000-508,000
= $116,000
Percentage of Margin of safety:
= 116,000/624,000
= 0.1859
= 18.59%
5. What is the company’s CM ratio? If the company can sell more units thereby increasing sales by $94,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?
CM ratio will be the unit Contribution margin divided by the sales per unit. This will be:
= 12÷40
= 0.30
= 30%
Increase in sales = $94000
New sales:
= Sales + Increase in sales
= $624,000+$94,000
= $718,000
New Contribution margin:
= 718000×30%
= 718000 × 0.3
= $215400
New Net operating income:
= 215400-152,400
= $63000
Increase in net operating income
= $63000 - $34800
= $28200
The following transactions are July activities of Craig's Bowling, Inc., which operate several centers (for game and equipment sales).
A. Bennett’s provided to customers bowling merchandise inventory costing Bennett’s $5,790. [Consider only the effect on cost of goods sold [expense] here. Do not consider sales revenue for this question.]
B. Bennett’s paid $3,600 on the electricity bill for June (recorded as an expense in June).
C. Bennett’s paid $3,400 to employees for work in July.
D. Bennett’s purchased $2,400 in insurance for coverage from August 1 to November 1.
E. Bennett’s paid $1,500 to plumbers for repairing a broken pipe in the restrooms.
F. Bennett’s received the July electricity bill for $3,500 to be paid in August.
If expense is not recognized in July, choose none for the account and enter $0 for the amount. If expense is to be recognized in July, indicate the revenue account title and amount.
Answer:
A. Bennett’s provided to customers bowling merchandise inventory costing Bennett’s $5,790.
Dr Cost of goods sold 5,790
Cr Merchandise inventory 5,790
B. Bennett’s paid $3,600 on the electricity bill for June (recorded as an expense in June).
NOT RECOGNIZED AS A JULY EXPENSE
(It has already been recognized as an expense in June)
C. Bennett’s paid $3,400 to employees for work in July.
Dr Wages expense 3,400
Cr Cash 3,400
D. Bennett’s purchased $2,400 in insurance for coverage from August 1 to November 1.
NOT RECOGNIZED AS A JULY EXPENSE
(This is an asset account, prepaid insurance, and it will be recognized as an expense during the months of August, September, October and November).
E. Bennett’s paid $1,500 to plumbers for repairing a broken pipe in the restrooms.
Dr Maintenance expense 1,500
Cr Cash 1,500
F. Bennett’s received the July electricity bill for $3,500 to be paid in August.
Dr Utilities expense (electricity) 3,500
Cr Accounts payable 3,500
Write different defination of Business?
Answer:
Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit. It does not mean it is a company, a corporation, partnership, or have any such formal organization, but it can range from a street peddler to General Motors."
Explanation:
I looked in wiki
Answer:
A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. ... The term "business" also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.
Explanation:
Brett has almond orchards, but he is sick of almonds and prefers to eat walnuts instead. The owner of the walnut orchard next door has offered to swap this year's crop with him. Assume he produces tons of almonds and his neighbor produces tons of walnuts. If the market price of almonds is per ton and the market price of walnuts is per ton: a. Should he make the exchange? b. Does it matter whether he prefers almonds or walnuts? Why or why not?
Answer and Explanation:
a. Market Value of Almonds = 1,015 * 107
= $108,605.
Market value of Walnuts = 779 * 111
= $86,469
Brett's almonds are worth more than his neighbor's walnuts so he should not make the trade.
b. His preference does not matter.
What matters is the market value of the crops. With the amount he makes from selling his almonds, he will be able to buy more walnuts than his neighbor is offering if he really wants walnuts.
Rowland & Sons Air Transport Service, Inc., has been in operation for three years. The following transactions occurred in February:
Feb. 1 Paid $500 for rent of hangar space in February.
Feb. 4 Received customer payment of $1,510 to ship several items to Philadelphia next month.
Feb. 7 Flew cargo from Denver to Dallas; the customer paid in full ($1,410 cash).
Feb. 10 Incurred and paid $1,500 in pilot wages for flying in February.
Feb. 14 Paid $116 for an advertisement run in the local paper on February 14.
Feb. 18 Flew cargo for two customers from Dallas to Albuquerque for $2,130; one customer paid $860 cash and the other asked to be billed $1,270.
Feb. 25 Purchased on account $1,755 in supplies for future use on the planes.
Required:Prepare accrual basis journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
Entries are given below
Explanation:
Accrual basis journal entries for each transaction are given below according to their dates. As we all know expenses and assets are recorded on the debit side and liabilities and capital are recorded on the credit side.
Feb 1
DEBIT CREDIT
Rent expense 500
Cash 500
Feb 4
DEBIT CREDIT
Cash 1510
Unearned Revenue 1510
Feb 7
DEBIT CREDIT
Cash 1410
Service Revenue 1410
Feb 10
DEBIT CREDIT
Wages 1500
Cash 1500
Feb 14
DEBIT CREDIT
Advertisement Expense 116
Cash 116
Feb 18
DEBIT CREDIT
Cash 860
Receivable 1270
Service revenue 2130
Feb 25
DEBIT CREDIT
Supplies 1755
Cash 1755
Which of the following is not a related party transaction? a) Acme Corporation leases office space to Norton Company. Mr. and Mrs. Norton own Norton Company and 65% of Acme Corporation's stock. b) BBD Inc. licenses a patent from Nugo Inc., which owns 82% of BBD's outstanding stock. c) Beth Teal pays $15,000 a year to her gardener, Ben. Beth is Ben's grandmother. d) All the transactions are between related parties.
Answer:
c) Beth Teal pays $15,000 a year to her gardener, Ben. Beth is Ben's grandmother.
Explanation:
A related party transaction is any business transaction that takes place between entities that share some type of common interest, e.g. a parent company leasing a factory to one of its subsidiaries. They are legal, but the potential for conflicts of interest exist. Following the example, if the lease price is higher than fair market price, then the transaction could be considered fraudulent. The SEC requires that publicly traded corporations disclose all related party transactions.
For each separate case, record an adjusting entry (if necessary). Barga Company purchases $32,000 of equipment on January 1. The equipment is expected to last five years and be worth $4,400 at the end of that time. Welch Company purchases $11,200 of land on January 1. The land is expected to last forever. Prepare the entries to record one year’s depreciation expense of $5,520 for the equipment and what depreciation adjustment, if any, should be made with respect to the Land account as of December 31? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Equipment can be depreciated and the journal entry would be:
December 31, 202x, depreciation expense
Dr Depreciation expense 5,520
Cr Accumulated depreciation - equipment 5,520
Accumulated depreciation is a contra asset account that decreases the net value of a fixed asset.
On the other hand, land cannot be depreciated. Land must always be reported at its historical cost (purchase price) even if its fair market value increases or decreases over time.
Required information {The following information applies to the questions displayed below. At the beginning of Year 2, the Redd Company had the following balances in its accounts:
Cash $8,200
Inventory 2,200
Common stock 7, 700
Retained earnings 2,700
During Year 2, the company experienced the following events:
1. Purchased inventory that cost $5,700 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $520 were paid in cash.
2. Returned $350 of the inventory that it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost.
3. Paid the amount due on its account payable to Ross Company within the cash discount period.
4. Sold inventory that had cost $6,200 for $9,200 on account, under terms 2/10, n/45.
5. Received merchandise returned from a customer. The merchandise originally cost $520 and was sold to the customer for $820 cash. The customer was paid $820 cash for the returned merchandise.
6. Delivered goods FOB destination in Event 4. Freight costs of $620 were paid in cash.
7. Collected the amount due on the account receivable within the discount period.
8. Took a physical count indicating that $1,900 of inventory was on hand at the end of the accounting period.
Required
a. Identify these events as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE) (Select "NA" if there is no effect on the "Classification".) Classification Event 1a. (Purchase inventory). 16. (Shipping cost) 4a. (Recording revenue). 4b. (Recording cost of goods sold) 5a.(Reversing revenue) 46. (Reversing cost of goods sold). 6.
b. Record each event in a statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. The first event is recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign.
Answer:
Assets:
Cash 8200 - 520 - 5243 - 820 - 620 + 9016 = 10,013
Receivables 9200 - 9200 = 0
Inventory 2200 + 5700 + 520 - 350 - 107 - 6200 + 520 - 383 = 1900
Liabilities:
Accounts Payable 5700 - 350 - 5350 = 0
Common Stock 7700 = 7700
Explanation:
Redd Company has incurred multiple transactions which will require adjustments before financial statements are prepared. These transaction will have effects on both sides of the accounts assets and liabilities. Common stock is not affected by the transactions as this is equity section.
Imagine there are two series of science-fictions: The Three-Body Problem (T) and Galactic Empires (G). Your utility function is U = TG, where T is the number of books you consume for The Three-Body Problem, and G is the number of books you consume for Galactic Empires. If your budget is $200, the price of each book of The Three-Body Problem (T) is $50, and the price of each book of Galactic Empires (G) is $100, how many books of The Three-Body Problem (T) will you consume?
Answer:
2 books
Explanation:
your utility function is:
F(U) = TG
In order to maximize your utility you must at least buy 1 book of the Three-Body Problem (T) and 1 book of the Galactic Empires (G). The constraint here is that both T and G must be ≥ 1. Since your budget is only $200, the maximum number of G books that you can buy is 1, or you wouldn't have any money left to buy T books.
So you purchase 1 G book and you have $100 left which you can use to purchase 2 T books.
Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a building at a cost of $1,160,000 that is currently appraised at $1,360,000. The equipment originally cost $640,000 and is currently valued at $387,000. The inventory is valued on the balance sheet at $330,000 but has a market value of only one-half of that amount. The owner expects to collect 97 percent of the $185,200 in accounts receivable. The firm has $11,500 in cash and owes a total of $1,360,000. The legal problems are personal and unrelated to the actual business. What is the market value of this firm?
Answer:
Market Value = $743,144
Explanation:
Market Value of firm = The Market value of assets - Market value of liabilities
Particulars Cost Market value
Assets
Building $1,160,000 $1,360,000
Equipment $640,000 $387,000
Inventory $330,000 $165,000
Cash $185,000 $179,644
Account receivables $11,500 $11,500
Total Assets $2,103,144
Debt ($1,360,000) ($1,360,000)
Market Value $743,144
You have just sold your house for 1100000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of 800000. The mortgage is currently exactly 18½ years old, and you have just made a payment. If the interest rate on the mortgage is (APR), how much cash will you have from the sale once you pay off the mortgage? (Note: Be careful not to round any intermediate steps less than six decimal places.) Cash that remains after payoff of mortgage is
Answer:
Net amount in hand after paying off loan $643,068.6
Explanation:
Note that the interest rate on the mortgage is 5.25% (APR) as the question is concerned
Present Value = $800,000
n = 30 * 12 = 360
Annual rate of interest = 5.25%
Monthly rate of interest = 5.25%/12 = 0.44%
Annuity PVF at 0.4375% for 360 months = 181.0926
Monthly Payment = $800,000/181.09259
Monthly Payment = $4417.63
Remaining instalments = (360-222) = 138
Annuity PVF at 0.4375% for 138 months = 103.4336
Loan amount outstanding = $4417.63 * 103.43362
Loan amount outstanding = $456931.4
Loan amount outstanding $456,931.4
Amount received on sale of assets $1,100,000
Net amount in hand after paying off loan $643,068.6
Tri Fecta, a partnership, had revenues of $378,000 in its first year of operations. The partnership has not collected on $47,000 of its sales and still owes $38,700 on $235,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $28,100 in salaries. The partners invested $47,000 in the business and $26,000 was borrowed on a five-year note. The partnership paid $2,600 in interest that was the amount owed for the year and paid $8,900 for a two-year insurance policy on the first day of business. Ignore income taxes. Compute the cash balance at the end of the first year for Tri Fecta.
a) $332,110.b) $161,640.c) $166,290.d) $155,440.
Answer: $168,000
Explanation:
Cash balance at the end of the year = Cash Inflows - Cash outflows
Cash Outflows
= (Merchandise purchased - Account payables) + Salaries + Interest + Insurance
= (235,000 - 38,700) + 28,100 + 2,600 + 8,900
= $235,900
Cash Inflows
= (Sales - Accounts receivables) + Investment by partners + Amount borrowed
= (378,000 - 47,000) + 47,000 + 26,000
= $404,000
Cash Balance = $168,000
Note: The options are most probably for a similar question.
Clipper Company sells two types of nail clippers. One focuses on the economy oriented customer and the other aims to satisfy the high-end clientele. The economy clipper cost $3 and has a sales price of $5. The high-end model costs $9 and sales for $12. Fixed costs associated with this product line amount to $35,880. Economy clippers constitute 70 percent of the market with the remaining 30 percent being high-end clippers. Based on this information what is the weighted average contribution margin
Answer:
2.30
Explanation:
The computation of the weighted average contribution margin is shown below:
Particulars Nail Clipper 1 Nail Clipper 2 Total
Selling Price $5 $12
Less: Variable Cost $3 $9
Contribution Margin $2 $3
PV Ratio 40% 25%
($2 ÷ $5) ($3 ÷ $12)
Weights 0.7 0.3
Weighted Average 28.00% 7.50% 35.50%
Weighted average
contribution margin 1.40 0.90 2.30
Skysong, Inc. incurred the following costs while manufacturing its product.
Materials used in product $124,000 Advertising expense $48,600
Depreciation on plant 67,300 Property taxes on plant 18,700
Property taxes on store 7,960 Delivery expense 30,900
Labor costs of assembly-
line workers 119,500 Sales commissions 37,900
Factory supplies used 26,500 Salaries paid to sales
clerks 60,600
Work in process inventory was $13,000 at January 1 and $17,100 at December 31. Finished goods inventory was $69,400 at January 1 and $48,200 at December 31.
1. Compute cost of goods manufactured.
2. Compute cost of goods sold.
Answer:Cost of goods manufactured = $351,900
Cost of goods sold = $373,100
Explanation:
a)cost of goods manufactured
Material used in product $124,000
Labor costs of assembly line workers $119,500
Add:
Factory Overhead:
Depreciation on plant $67,300
Property taxes on plant $18,700
Factory supplies used $26,500
Beginning WIP $13,000
Deduct:
Closing WIP -$17,100
Cost of goods manufactured $351,900
b)
Opening finished goods $69,400
Add:
Cost of goods manufactured $351,900
Deduct:
Ending finished goods - $48,200
Cost of goods sold $373,100
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $14,000 cash and $60,200 of photography equipment in the company. 2 The company paid $3,600 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,660 cash. 20 The company received $3,850 cash in photography fees earned. 31 The company paid $871 cash for August utilities. Prepare general journal entries for the above transactions.
Answer and Explanation:
The journal entries are shown below:
On Aug 1
Cash Dr $14,000
Photography equipment $60,200
To Common stock $74,200
(Being the common stock is exchanged)
On Aug 2
Prepaid insurance Dr $3,600
To Cash $3,600
(Being the cash paid is recorded)
On Aug 5
Office supplies Dr $2,660
To Cash $2,660
(Being the cash paid is recorded)
On Aug 20
Cash Dr $3,850
To Photography fees earned $3,850
(Being cash received is recorded)
On Aug 31
Utilities Dr $871
To Cash $871
(Being cash paid is recorded)
Fortune magazine ran an article titled "New Ethics or No Ethics? Questionable Behavior Is Silicon Valley's Next Big Thing," which recounts stories of Internet companies that aggressively inflate their revenues, delay the recognition of expenses, and report sales that are not exactly sales. In many cases, the actions of these companies, while aggressive, are not in direct violation of generally accepted accounting principles. Discuss why companies might engage in such behavior and comment on the ethical implications.
Explanation:
Companies that use this "make-up accounting" methodology to demonstrate a good image to stakeholders, which means a strategy to win new investments due to the good performance shown.
However, there are legal and ethical implications that could completely destroy the company's image if such business behavior were exposed.
It is necessary that companies have a strategic plan that aims at actions that understand the long-term success of the company, through legal means of reaching objectives and demonstrating results to investors, because in an increasingly competitive and globalized world, ethics , business reliability and transparency are the factors that guarantee the company's permanence in the market.
Koebel Corp uses a job order costing system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Koebel Corp estimated total manufacturing overhead cost at $921,600 and total direct labor hours of 51,200. Koebel Corp started the year with no beginning balances in either Work in Process Inventory or Finished Goods Inventory. During the year actual manufacturing overhead incurred was $902,900 and 48,900 direct labor hours were used.
(a) Calculate the predetermined overhead rate Overhead Rate per hour
(b) Calculate how much manufacturing overhead will be applied to production
(c) Is overhead over- or underapplied? By how much? (Input the amount as positive value.)
(d) What account should be adjusted for over-or underapplied overhead? Should the balance be increased or decreased?
Answer: See explanation
Explanation:
a. Calculate the predetermined overhead rate Overhead Rate per hour
Predetermined Overhead rate will be the estimated total manufacturing overhead divided by the estimated total direct labor hours. This will be:
= $ 921,600/51,200
= $ 18
(b) Calculate how much manufacturing overhead will be applied to production
Manufacturing overhead that'll be applied to production will be the predetermined overhead rate multiplied by the actual total direct labor hours. This will be:
= $ 18 × 48,900 direct labor hours
= $ 880,200
(c) Is overhead over- or underapplied? By how much?
The Actual Overhead Incurred = $902,900 while the manufacturing overhead applied = $880,200. This shows that overhead is underapplied due to the fact that manufacturing overhead applied is less than the actual overhead that is incurred.
Therefore, the amount of overhead that was underapplied will be:
= $ 902,900 - $ 880,200
= $ 22,700
(d) What account should be adjusted for over-or underapplied overhead? Should the balance be increased or decreased?
Based on the scenario in the question and the answers calculated, the cost of goods sold should be increased.
Activity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8.20 per guest check-in, $23.00 per room cleaning, and $5.00 per served meal (not including food). Janelle Campbell visited the hotel for a 5-night stay. Janelle had 8 meals in the hotel during the visit. Determine the total activity-based cost for Campbell's visit during the month. Round your answer to the nearest cent. $
Answer:
$163.20
Explanation:
Calculation to Determine the total activity-based cost for Campbell's visit during the month
Guest check in $8.20
($1 guest*$8.20 per guest check-in)
Room cleaning $115.00
(5-night *$23.00 per room cleaning)
Served meals $40.00
(8 meals*$5.00 per served meal)
Total activity-based cost $163.20
Therefore the total activity-based cost for Campbell's visit during the month will be $163.20
Problem 13-3 Output from a process contains 0.02 proportion of defective units. Defective units that go undetected into final assemblies cost $25 each to replace. An inspection process, which would detect and remove all defectives, can be established to test these units. The inspector, who can test 20 units per hour (which matches the current production rate), would be paid $8 per hour, including fringe benefits. Assume that the line will operate at the same rate (i.e., the current production rate) regardless of whether or not the inspection operation is added. a-1. Without the inspector, what is the current hourly cost of defects
Answer:
4 per hour
Explanation:
The computation of the current hourly cost of defect is shown below:
= Defective average × cost of inspector × replacement cost
where,
The Defective average is 0.02
The Cost of the inspector is $8
And, the replacement cost is $25
Now placing these values to the above formula
So, the current hourly defective cost is
= 0.02 × $8 × $25
= 4 per hour
Larry Nelson holds 1,000 shares of General Electric common stock. As a shareholder, he has the right to be involved in the election of its directors. These directors are responsible for managing the company and achieving the company’s objectives. True or False: The preemptive right allows Larry to purchase any additional shares sold by the company. This right will protect Larry from dilution in the value of the shares he holds.
Answer:
True
Explanation:
If GE's corporate charter includes preemptive rights provisions, then they will give current stockholders the right to purchase more stocks (in case the company issues more stocks) before any outside investors.
But not all corporations' charters include preemptive rights provisions, generally they do not. Preemptive rights are a way of protecting current stockholders from stock dilution in case the corporations decides to issue new stocks.
An incomplete cost of goods manufactured schedule is presented below. Complete the cost of goods manufactured schedule for Vaughn Company.
VAUGHN COMPANY
Cost of Goods Manufactured Schedule
Work in process (1/1) $220,940
Direct materials
Raw materials inventory (1/1) $
Add: Raw materials purchases 159,120
Total raw materials available for use
Less: Raw materials inventory (12/31) 22,610
Direct materials used $188,420
Direct labor
Manufacturing overhead
Indirect labor 25,620
Factory depreciation 37,200
Factory utilities 76,500
Total overhead 139,320
Total manufacturing costs
Total cost of work in process
Less: Work in process (12/31) 83,230
Cost of goods manufactured $544,240
Answer:
Beginning Raw material Inventory = Direct materials used - Raw Materials purchases + Ending raw materials inventory
= 188,420 - 159,120 + 22,610
= $51,910
Total cost of work in process = Cost of goods manufactured + Work in process (12/31)
= 544,240 + 83,230
= $627,470
Total Manufacturing costs = Total cost of work in process - Work in process (1/1)
= 627,470 - 220,940
= $406,530
Direct labor = Total Manufacturing costs - Total overhead - Direct materials used
= 406,530 - 139,320 - 188,420
= $78,790
Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. In order to determine the direction of the organization, it is necessary to understand its current position and the possible avenues through which it can pursue a particular course of action. What is strategic planning and why is it an important tool in the X industry
Explanation:
Strategic planning is the long-term actions that a company will implement in its organizational processes to achieve its objectives and goals. Through strategic planning, a company creates an identity, a culture that assists in the company's internal and external positioning, in addition to managing the resources, the decision-making process and the timing of the actions necessary to remain profitable and competitive in the market.
In any organization, regardless of sector or size, strategic planning will assist in efficiency and effectiveness in the use of physical, financial, human, marketing and administrative resources.
