Answer:
the total number of units started and completed = 11,000 units
Explanation:
total materials costs incurred during the month = $500,000
if materials are added at the beginning of the process, beginning WIP already had 100% of materials costs added, therefore, materials costs were applied only to the total number of units started
total number of units started = $500,000 / $25 cost per EUP = 20,000 units
the total number of units started and completed = units started - ending WIP = 20,000 - 9,000 = 11,000 units
total number of units completed = beginning WIP + units started - ending WIP = 12,000 + 20,000 - 9,000 = 23,000 units
2. The text makes it look as if maximizing output is the goal of society.
a. Is maximizing output the goal of society?
b. If the country is a Christian country, should it be?
c. If not, what should it be? (Religious)
Explanation:
a) Maximizing output might not be the final goal of society, but it is a way of achieving a goal. Society can make a profit by maximizing output. Profit maximization is possible through output maximization. All of the individuals try to maximize their profit. Profit maximization can be done through output maximization. Profit maximization is the goal of a society.
Hence, maximizing output may not be the final goal of a society, but it is a way of achieving the final goal.
Lamonda Corp. uses a job order cost system. On April 1, the accounts had the following balances: Raw Materials Inventory $ 25,000 Work in Process Inventory 55,000 Finished Goods Inventory 60,000 The following transactions occurred during April: (a) Purchased materials on account at a cost of $136,000. (b) Requisitioned materials at a cost of $122,000, of which $28,000 was for general factory use. (c) Recorded factory labor of $155,000, of which $24,000 was indirect. (d) Incurred other costs: (Hint: Use Miscellaneous Accounts for the total of all costs incurred). Selling expense $ 44,000 Factory utilities 26,000 Administrative expenses 15,000 Factory rent 30,000 Factory depreciation 24,000 (e) Applied overhead at a rate equal to 135 percent of direct labor cost. (f) Completed jobs costing $375,000. (g) Sold jobs costing $402,000. (h) Recorded sales revenue of $500,000.
Answer:
To record purchase of Material
Dr. Raw Material Inventory $136,000
Cr. Account Payable $136,000
To record Work in process Inventory
Dr. Work in process Inventory $94,000
Dr. Manufacturing Overhead $28,000
Cr. Raw Material Inventory $122,000
To record wages payable
Dr. Work in process Inventory $131,000
Dr. Manufacturing Overhead $24,000
Cr. Wages Payable $155,000
To record the cost
Dr. Selling and distribution Expenses $59,000
Dr. Manufacturing Overhead $80,000
Cr. Miscellaneous Expenses $139,000
To record manufacturing overhead
Dr. Work in process Inventory $176,850
Cr. Manufacturing Overhead $176,850
To record Finished goods inventory
Dr. Finished goods inventory $375,000
Cr. Work in process Inventory $375,000
To record cost of goods Sold
Dr. Cost of Goods Sold $402,000
Cr. Finished goods inventory $402,000
To record Sales revenue
Dr. Accounts Receivables $500,000
Cr. Sales $500,000
Explanation:
All the entries are recorded as per their events.
The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement you notice several errors.
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2016
Assets
Cash $ 40,000
Accounts receivable 80,000
Inventories 55,000
Machinery (net) 120,000
Franchise (net) 30,000
Total assets $ 325,000
Liabilities and Shareholders’ Equity
Accounts payable $ 50,000
Allowance for uncollectible accounts 5,000
Note payable 55,000
Bonds payable 110,000
Shareholders’ equity 105,000
Total liabilities and shareholders’ equity $ 325,000
Additional information:______.
1. Cash includes a $27,000 restricted amount to be used for repayment of the bonds payable in 2025.
2. The cost of the machinery is $204,000.
3. Accounts receivable includes a $27,000 notes receivable from a customer due in 2024.
4. The notes payable balance includes accrued interest of $12,000. Principal and interest are both due on February 1, 2022.
5. The company began operations in 2016. Net income less dividends since inception of the company totals $42,000.
6. 57,000 shares of no par common stock were issued in 2016. 100,000 shares are authorized.
Required:
Prepare a corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
Total assets $ 253,000
Total liabilities and shareholders’ equity $ 253,000
Explanation:
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2016
Assets
Cash $ 40,000
Accounts receivable 80,000
Inventories 55,000
Less
Restricted Cash - $ 27000
Notes Receivable - $ 27000
Total Current Assets $ 121,000
Machinery $ 204,000
Less Accumulated Depreciation -102,000
Machinery (net) 102,000
Franchise (net) 30,000
Total assets $ 253,000
Liabilities and Shareholders’ Equity
Accounts payable $ 50,000
Note payable 43,000
Interest Payable 12000
Total Current Liabilities 105,000
Bonds payable 110,000
Total Liabilities 215,000
Shareholders’ equity 105,000
Less
Retained Earning - 42,000
Common Stock -25,000
Total liabilities and shareholders’ equity $ 253,000
As it is given in the Additional information.
1. Cash of $27,000 restricted amount to be used for repayment of the bonds payable is deducted from current liabilities.
2. The accumulated Depreciation is shown.
3. Notes receivable is deducted from accounts receivable.
4. Notes payable balance and accrued interest of $12,000 are shown separately.
5. Net income less dividends since inception of the company totals $42,000 is deducted as retained earnings.
6. The common stock issued is also deducted from liabilities.
Identifying Events as Accounting Transactions Do the following events result in a recordable transaction for The Toro Company?
1. Toro purchased robotic manufacturing equipment that it paid for by signing a note payable.
2. Toro’s president purchased stock in another company for his own portfolio.
3. The company lent $550 to an employee.
4. Toro ordered supplies from Office Depot to be delivered next week.
5. Six investors in Toro sold their stock to another investor.
6. The company borrowed $2,500,000 from a local bank.
Answer and Explanation:
1. The first transaction should be yes as it contains the measurable impact also it impacts the asset and liability
2. The second transaction should be no as the business entity concept is not followed also it is carried out an individual account
3. The third transaction should be yes as it contains the measurable impact also it comes under the transaction i.e. internal exchange
4. The fourth transaction should be no as the amount is not paid.
5. The fifth transaction should be no as the impact the common stock even though is a measurable transaction
6. The sixth transaction should be yes as it contains the measurable impact also it impacts the asset and liability i.e. cash and the note payable
Robert wants to get serious about saving for a new car. Which account would you recommend? Why?
Cindy has been working for 8 years, and she’s built up a huge emergency fund -- $45,000, which would be 6 months of her salary. She’s hoping to earn a bit more interest than she currently is with that $45,000 just sitting in her traditional bank’s savings account. Which account would you recommend? Why?
Janelle likes to keep all her savings goals separate, so she has an account for each one, including an account to save for her college textbooks every semester. She buys books about every 6 months, with roughly $550 due each time. She likes to save the money up in installments, with auto-deposits from each of her twice monthly paychecks. She’s wondering if her online savings account, earning 0.75%, is still her best option for monthly deposits toward her textbooks. Which account would you recommend? Why?
Answer:
1) Money Market Savings Account
2) Online Savings Account
Explanation:
1) Money market accounts which are also known as money market savings or deposit accounts, are accounts that may give interest on a tier bases and may also give waivers on due fees if a customer is able to maintain a particular balance per month
Money market accounts are accounts that is better adapted for a customer that is able to maintain a substantial balance in their bank accounts and would like to be offered a higher interest than that which is given by a basic savings account
2) For Janelle, given that her savings duration are for a period of t months and the amount save is $550, the savings account with a high combined interest rate and flexibility is the online savings account, and given that her current online savings account earns 0.75%, which is high compared to average interest rate of online savings account, her online savings account is still her best option.
Stagflation occurs when high inflation combines with...
a. high unemployment and a low level of production.
b. low unemployment and a high level of production.
c. a drop in buying power and a rise in workers’ wages.
d. a rise in buying power and a drop in workers’ wages.
Answer: The answer is A
Explanation: high unemployment and a low level of production
Answer:
A
Explanation:
One Protab computer. A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. A coupon to purchase a Creative Probook e-book reader for $525, a price that represents a 30% discount from the regular Probook price of $750. It is expected that 20% of the discount coupons will be utilized. A coupon to purchase a one-year extended warranty for $40. Customers can buy the extended warranty for $80 at other times if they do not use the $40 coupon. Creative estimates that 30% of customers will purchase an extended warranty. Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the option to purchase an extended warranty, but estimates that if it did so, a Protab alone would sell for $855. Required: 1. & 2. Indicate below whether each item is a separate performance obligation and allocate the transaction price of 100,000 Protab Packages to the separate performance obligations in the contract. 3. Prepare a journal entry to record sales of 100,000 Protab Packages.
Answer:
the journal entry to record the sale of 100,000 Protab packages:
Dr Cash 88,000,000
Cr Sales revenue 82,500,000
Cr Deferred revenue - discount option 4,338,000
Cr Deferred revenue - extended warranty 1,162,000
Explanation:
some information was missing, so I looked for similar questions:
Each Protab package costs $880
stand alone selling price of a Protab is $855
stand alone price of Probook coupon = ($750 x 30%) x 20% = $45
stand alone price of extended warranty coupon = ($80 - $40) x 30% = $12
item stand alone prices % of package price allocation of
transaction $
Protab $855 93.75% $825.00
Probook coupon $45 4.93% $43.38
Ext. warranty coup. $12 1.32% $11.62
total $912 100% $880.00
"An individual is unique and does not speak for or represent anything other than themselves." This statement is an argument against ______.
a.
Gender
b.
Diversity
c.
Stereotypes
d.
Ethnicity
Answer:
C: stereotypes
Explanation:
Flounder Architects incorporated as licensed architects on April 1, 2022. During the first month of the operation of the business, these events and transactions occurred:
Apr. 1 Stockholders invested $21,420 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $446 per week, payable monthly.
2 Paid office rent for the month $1,071.
3 Purchased architectural supplies on account from Burmingham Company $1,547.
10 Completed blueprints on a carport and billed client $2,261 for services.
11 Received $833 cash advance from M. Jason to design a new home.
20 Received $3,332 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,784.
30 Paid $357 to Burmingham Company for accounts payable due.
Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answer:
Flounder Architects
General Journal
Apr. 1
Cash $21,420 (debit)
Common Stock $21,420 (credit)
Cash Received in Exchange of Common Stock
Apr. 1
Salaries Expense $1,784 (debit)
Salaries Payable $1,784 (credit)
Secretary-receptionist salary due at end of month
Apr. 2
Rent Expenses $1,071 (debit)
Cash $1,071 (credit)
Paid for Rent
Apr. 3
Supplies $1,547 (debit)
Accounts Payable ; Burmingham Company $1,547 (credit)
Architectural supplies purchased on credit
Apr. 10
Accounts Receivable $2,261 (debit)
Service Revenue $2,261 (credit)
Services completed but not yet paid for
Apr. 11
Cash $833 (debit)
Deferred Revenue $833 (credit)
Received cash for services to be completed
Apr. 20
Cash $3,332 (debit)
Service Revenue $3,332 (credit)
Cash received for services completed
Apr. 30
Salaries Payable $1,784 (debit)
Cash $1,784 (credit)
Secretary-receptionist salary paid
Apr. 30
Accounts Payable : Burmingham Company $357 (debit)
Cash $357 (credit)
Partial settlement of account payable
Explanation:
See the Journal Entries and Narrations that i have prepared above.
Which of the following is NOT a typical characteristic of a Minstrel
A. wandering, versatile entertainers
B. sometimes members f aristocracy and royalty
C. musicians of the fringe society
D. descriptive accounts; music not notated
Answer:
B
Explanation:
Kit Company borrows $5 million at 12% on January 1, 2016, specifically for the purpose of financing the construction of a building that is expected to take 18 months to complete. Kit invests the total amount at 11% until it makes payments for the construction project. During the first year of construction, Kit incurs the following expenditures related to this construction project:
January 1 $1,000,000
April 1 1,600,000
October 1 1,200,000
December 31 500,000
Required:
1. Compute the amount of interest expense Kit would capitalize related to the construction of the building.$
2. Compute the amount of interest revenue Kit would recognize.$
3. Assume that Kit uses IFRS. What amount of interest would be capitalized related to the construction of the building?$
Answer:
1. The amount of interest expense Kit would capitalize related to the construction of the building is $300,000.
2. The amount of interest revenue Kit would recognize is $275,000.
3. The amount of interest revenue Kit would capitalized as per IFRS (IAS 23) is $25,000.
Explanation:
1. Compute the amount of interest expense Kit would capitalize related to the construction of the building.$
Note: See part 1 of the attached excel file for the calculation of average expenses incurred for the building
Average expenses incurred for the building = $2,500,000
Interest rate = 12%
Interest expense to capitalize = $2,500,000 * 12% = $300,000
Therefore, the amount of interest expense Kit would capitalize related to the construction of the building is $300,000.
2. Compute the amount of interest revenue Kit would recognize.$
Note: See part 2 of the attached excel file for the calculation of the total interest revenue.
Amount of interest revenue = $275,000
Therefore, the amount of interest revenue Kit would recognize is $275,000.
3. Assume that Kit uses IFRS. What amount of interest would be capitalized related to the construction of the building?$
The IAS 23 Clause 12 states that to the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying asset, the entity shall determine the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings.
Based on the above, the amount of interest that would be capitalized related to the construction of the building can be calculated as follows:
Amount of interest revenue to capitalized as per IFRS = Interest expense to capitalize - Total interest income = $3000,000 - $275,000 = $25,000
Therefore, the amount of interest revenue Kit would capitalized as per IFRS (IAS 23) is $25,000.
Which of the following is true of marketing information systems?Group of answer choicesThey require search engine software and a word processing system to function.They are designed exclusively to handle information from internal sources.They consist of a coordinated collection of data, tools, techniques, and models to gather and interpret information for decision making.They cannot function without an efficient transaction processing system and a learning management system.
Answer:
They consist of a coordinated collection of data, tools, techniques, and models to gather and interpret information for decision making.
Explanation:
Marketing information systems consist of a coordinated collection of data, tools, techniques, and models to gather and interpret information for decision making. Basically, it can be defined as a set of components or computer systems, which is used to collect, store, and process market data (informations), as well as continuous or regular dissemination of these informations, from both the external and internal sources of information to the marketers for better decisions making such as product packaging, pricing, distribution, advertisements, innovation, sales promotions etc.
Additionally, the internal sources of marketing information includes invoice, statement of cash flows, balance sheet, customer database, product database, operations data etc. These marketing information can be used to measure the effectiveness and efficiency of various marketing strategies adopted by an organization or business firm.
Entering foreign markets requires an analysis that examines each of the five major global entry strategies and their associated risks and rewards. It is important as a marketer that you understand the level of risk involved in each and also be able to identify which strategy firms are currently using.Firms looking to expand globally must address how they plan to enter international markets. Once a company has developed a marketing plan that involves global expansion, they have five major strategic options for how to enter the global marketplace: exporting, licensing, franchising, joint venture, and direct investment. Exporting is selling domestically produced products to foreign markets. Licensing is a legal process in which one firm pays to use or distribute another firm's resources. Franchising is a contractual arrangement in which the franchisor provides a franchisee the right to use its name and marketing and operational support in exchange for a fee and, typically, a share of the profits. In a joint venture, a domestic firm partners with a foreign company to create a new entity. Direct ownership requires a domestic firm to actively manage a foreign company or overseas facilities.Place the entry strategies (along with examples of each) in the correct order from least risky to most risky.Licensing - A legal process in which one firm pays to use or distribute another firm’s resources, including products, trademarks, patents, intellectual property, or other proprietary knowledge.KFC shares recipes and distribution information for 5 new KFC restaurants owned by local Saudi Arabian investors. Memphis Grizzlies gives logo and artwork to a Japanese company to sell Grizzlies' shirts locally.Exporting - Selling domestically produced products to foreign markets.Laske farms sells oranges and peaches grown in Florida to stores in Mexico. GM builds cars in U.S. and sells them to European buyers.Direct ownership - A method of entering an international market in which a domestic firm actively manages a foreign company or overseas facilities. Wendy's opens 29 new company-owned stores in Canada to test a new Frosty flavor. Wal-Mart builds 7 company-owned stores in China.Franchising - A contractual arrangement in which the franchisor provides a franchisee the right to use its name and marketing and operational support in exchange for a fee and, typically, a share of the profits. Subway provides a business owner in Vietnam the knowledge and information to run a Subway for a fee.Taylor Gas Stations allows an owner-operator in Chile the right to use its name and provides support as to how to best run the business.Joint venture - An arrangement in which a domestic firm partners with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign company’s market.Starbucks partners with a Russian coffee company to open a new chain of coffee shops in Moscow.NBC and Univision start a Latin American television network.
When entering a foreign market, there are several methods one can use and these methods and their examples are shown below in order of riskiness with the first being the most risky.
Direct OwnershipWendy's opens 29 new company-owned stores in Canada to test a new Frosty flavor.Wal-Mart builds 7 company-owned stores in China.Joint Venture Starbucks partners with a Russian coffee company to open a new chain of coffee shops in Moscow.NBC and Univision start a Latin American television network.Franchising Subway provides a business owner in Vietnam the knowledge and information to run a Subway for a fee.Taylor Gas Stations allows an owner-operator in Chile the right to use its name and provides support as to how to best run the business.Licensing KFC shares recipes and distribution information for 5 new KFC restaurants owned by local Saudi Arabian investors.Memphis Grizzlies gives logo and artwork to a Japanese company to sell Grizzlies' shirts locally. Exporting Laske farms sells oranges and peaches grown in Florida to stores in Mexico. GM builds cars in U.S. and sells them to European buyers.In conclusion, the more risky methods of entry involve having a larger commitment in the foreign business while the less riskier methods reduce one's commitment.
Find out more about methods of foreign entry at https://brainly.com/question/17120393.
TB MC Qu. 14-128 (Algo) On June 30, 2021, K Co. had outstanding... On June 30, 2021, K Co. had outstanding 9%, $15,000,000 face value bonds maturing on June 30, 2026. Interest is payable semiannually every June 30 and December 31. On June 30, 2021, after amortization was recorded for the period, the unamortized bond premium was $65,000. On that date, K acquired all its outstanding bonds on the open market at 99 and retired them. At June 30, 2021, what amount should K Co. recognize as gain on redemption of bonds before income taxes
Answer:
$215,000
Explanation:
Calculation for the amount that K Co. Should recognize as gain on redemption of bonds before income taxes
First step is to find book value of bonds at June 30, 2021
Book value of bonds= ($15,000,000 + $65,000)
Book value of bonds=$15,065,000
Second step is to find the amount of gain on redemption of bonds before income taxes
Gain on redemption of bonds before income taxes=$15,065,000-( 99% × $15,000,000)
Gain on redemption of bonds before income taxes=$15,065,000-$14,850,000
Gain on redemption of bonds before income taxes=$215,000
Therefore the amount that K Co. Should recognize as gain on redemption of bonds before income taxes will be $215,000
Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $20 per unit. The company’s monthly fixed expense is $20,800. Required: 1. Calculate the company’s break-even point in unit sales. 2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.)
Answer:
1. 2600 units
2. $72,800
3. 2,675 units
4. $74,900
Explanation:
Provided,
Sales price per unit = $28
Variable cost per unit = $20
Thus, Contribution per unit = Sales price - variable cost = $28 - $20 = $8
Contribution as percentage = [tex]\frac{8}{28} \times 100 = 28.57[/tex]
Fixed Cost = $20,800
1. Break even point in unit sales = [tex]\frac{Fixed\ Cost}{Contribution\ per\ unit}[/tex] = [tex]\frac{20,800}{8} = 2,600\ units[/tex]
2. Break even point in dollars = Break even point in units [tex]\times[/tex] sales price per unit
= 2,600 [tex]\times[/tex] $28 = $72,800
Or straight break even point in dollars = [tex]\frac{Fixed\ cost}{Contribution\ percentage} = \frac{20,800}{0.2857} = 72,800\ dollars[/tex]
3. In case fixed cost increase by $600
New fixed cost = $20,800 + $600 = $21,400
Thus, break even point in units shall be = [tex]\frac{21,400}{8} = 2,675\ units[/tex]
4. Break even point in sales = [tex]\frac{21,400}{0.2857} = 74,900\ dollars[/tex]
In addition to well-designed executive compensation packages, two other motivational forces can align the interests of managers with those of their shareholders. Which of the following actions could be used to reduce the potential for these agency conflicts and ensure that the firm’s managers will pursue the long-term wealth interests of their shareholders? Let the manager know that he or she will be fired if the company’s stock does not reach a certain target by the end of the year. Let the manager know that a takeover is possible if he or she doesn’t perform well.
Answer: Let the manager know that a takeover is possible if he or she doesn’t perform well.
Explanation:
Agency problems refer to when managers take actions that benefit them instead of the shareholders of the company.
There are quite some ways to reduce the incidence of this happening and one of those is to let the manager know that a takeover is possible if they do not perform well.
Managers do not particularly like takeovers because the new owners of the company tend to get rid of the company's management who will be viewed as the reason for the company's failure or lack of growth. This will also impart on their reputations as good managers.
Chris has been newly appointed as the head of the HR team at Cuffington Corp. In an attempt to establish a more efficient and reliable workflow, Chris has taken up the responsibility of creating job descriptions and job specifications for the newly hired and current engineers within the organization. While doing so, Chris gathers information about the knowledge, skills, abilities, and other characteristics (KSAOs) required for an engineer to successfully perform the job. How will determining the KSAOs most benefit the organization
Answer:
KSAOs play a significant role in interviews and selection decisions
Explanation:
According to the given situation, Chris has been hired as an HR team at C Corp. and he took the responsibility of developing job descriptions and specialization for the vacancy of engineers.
Here Chris collects relevant data about the KSAO's so that he can choose a specialized engineer for an organization.
So, in the above case, the relevant answer is KSAOs play a significant role in interviews and selection decisions.
Reese's use of illegal drugs limits her ability to walk properly. The elevator at her office was not working for many months, so Reese needed to climb two flights of stairs and had difficulty getting to her desk. She tried suing her company under the Americans with Disabilities Act, arguing that her company discriminates against individuals who cannot perform major life activities. Which of the following would weaken Reese's argument?
A) Reese is not a senior employee.B) The ADA prohibits discrimination only against workers who are over the age of 40.C) The ADA does not cover conditions of substance abuse.D) Reese is not pregnant.E) The ADA applies only to the decisions or actions of the government.
The correct answer is C) The ADA does not cover conditions of substance abuse.
Explanation:
The purpose of the ADA (Americans with Disabilities Act) is to protect people with disabilities from abuses or discrimination. This includes the protection against discrimination at work in factors such as working conditions, hiring processes, etc. Additionally, this act protects almost all disabilities except by those related to conditions such as substance abuse or addictions. In this context, the ADA would not protect Reese because her disability is related to substance abuse, and therefore, this would weaken her argument.
Luebke Incorporated has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $58,000 and at the end of the month was $30,600. The cost of goods manufactured for the month was $215,000. The actual manufacturing overhead cost incurred was $56,800 and the manufacturing overhead cost applied to Work in Process was $60,400. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for November is:
Answer: $238,800
Explanation:
Adjusted Cost of Goods for November = Beginning Finished good inventory + Cost of goods manufactured - Ending Finished goods inventory - Overapplied Overheads
Overapplied Overhead = Overhead applied - Actual Overhead
= 60,400 - 56,800
= $3,600
Adjusted Cost of Goods for November = 58,000 + 215,000 - 30,600 - 3,600
= $238,800
Newton Corporation entered into the following transactions during its first year of operations. (Assume all transactions involve cash.) Acquired $2,000 of capital from the owners. Purchased $600 of direct raw materials. Used $400 of these direct raw materials in the production process. Paid production workers $800 cash. Paid $400 for manufacturing overhead. Started and completed 200 units of inventory. Sold 50 units at a price of $12 each. Paid $80 for selling and administrative expenses. The amount of net income for the year was:
Answer:
Newton Corporation
Net income for the year = $120
Explanation:
a) Data and Calculations:
Direct materials cost = $400
Direct labor cost = 800
Manufacturing overhead 400
Total manufacturing cost $1,600
Cost per unit = $8
Ending Inventory of finished goods = 150 units * $8 = $1,200
Cost of goods sold = 50 * $8 = $400
Sales revenue = 50 * $12 = $600
Newton Corporation
Income Statement
For the year ended December 31:
Sales Revenue $600
Cost of goods sold 400
Gross income $200
Selling & Admin.
expense 80
Net Income $120
b) Newton Corporation's net income is the difference between the Sales Revenue, cost of goods sold and selling and administrative expenses.
Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $50,000 or $150,000, with equal probabilities of 0.5. The alternative riskless investment in T-bills pays 5%. (a) If you require a risk premium of 10%, how much will you be willing to pay for the portfolio? (b) Suppose the portfolio can be purchased for the amount you found in (a). What will the expected rate of return on the portfolio be? (c) Now suppose you require a risk premium of 15%. What is the price you will be willing to pay now? (d) Comparing your answers to (a) and (c), what do you conclude about the relationship between the required risk premium on a portfolio and the price at which the portfolio will sell?
Answer:
Kindly check explanation
Explanation:
Given the following :
Risk free return (risk less investment) = 5%
Cashflow derived from portfolio = $50,000 or $150,000 each at a probability of 0.5
(a) If you require a risk premium of 10%, how much will you be willing to pay for the portfolio?
Risk premium = 10%
Required return on portfolio = risk premium + risk free return = (10% + 5%) = 15%
Expected value of cashflow:
(0.5 × $50,000) + (0.5 × $150,000)
$25,000 + $75,000 = $100,000
Value of portfolio = Amount paid(a) × (1 + required return)
100,000 = a( 1 + 0.15)
100,000 = 1.15a
a = (100,000 / 1.15)
a = 86956.521
a = $86,956.5
B) If amount paid for portfolio = $86,956.5
Expected rate of return :
(Expected value - amount paid) / amount paid
= ($100,000 - $86,956.5) / $100,000
= $13043.5 / $100,000
= 0.130435 = 13.04%
C.) Now suppose you require a risk premium of 15%. What is the price you will be willing to pay now?
Risk premium = 15%
Required return on portfolio = risk premium + risk free return = (15% + 5%) = 20%
Value of portfolio = Amount paid(a) × (1 + required return)
100,000 = a( 1 + 0.20)
100,000 = 1.20a
a = (100,000 / 1.20)
a = 83333.333
a = $83,333.3
D.)
At a required risk premium of 10%, portfolio will sell at $86,956.5
At a required risk premium of 15%, portfolio will sell at $83,333.3
Hence, the price at which a portfolio will sell decreases as risk premium increases.
Accrued salaries owed to employees for October 30 and 31 are not considered in preparing the financial statements for the year ended October 31. Indicate which items will be erroneously stated, because of the error, on (A) the income statement for the year and (B) the balance sheet as of October 31. Also indicate whether the items in error will be overstated or understated.
Answer:
Indication of items erroneously stated on:
A) the income statement for the year
Salaries Expense will be understated.
Therefore, the Net Income will be overstated.
B) the balance sheet as of October 31:
Salaries Expense Payable (current liabilities) will be understated.
Explanation:
When accrued salaries are not accounted for in the financial statements for an accounting period, it means that the revenues generated for that period are not being matched with the expenses incurred in generating the revenues. Such omission does not agree with the accrual concept and the matching principle of generally accepted accounting principles. These require that expenses are accrued whether paid for or not, and that expenses are matched to the period's revenue since they are necessarily incurred in generating such revenue.
On December 31, 2021, Harris Co. leased a machine from Catt, Inc. for a five-year period. Equal annual payments under the lease are $2,100,000 and are due on December 31 of each year. The first payment was made on December 31, 2021. The five lease payments are discounted at 10% over the lease term. The lease is appropriately accounted for as a finance lease by Harris. In its December 31, 2022 balance sheet, Harris should report a lease liability of:___________
a. $6,340,000
b. $6,240,000.
c. $5,706,000.
d. $5,222,400
Answer: $5,222,400
Explanation:
Here is the complete question:
On December 31, 2021, Harris Co. leased a machine from Catt, Inc. for a five-year period. Equal annual payments under the lease are $2,100,000 (including $100,000 annual executory costs) and are due on December 31 of each year. The first payment was made on December 31, 2021, and the second payment was made on December 31, 2022. The five lease payments are discounted at 10% over the lease term. The present value of lease payments at the inception of the lease and before the first annual payment was $8,756,727. The lease is appropriately accounted for as a finance lease by Harris. In its December 31, 2022 balance sheet, Harris should report a lease liability of
a. $6,340,000.
b. $6,240,000.
c. $5,706,000.
d. $5,222,400
In its December 31, 2022 balance sheet, Harris should report a lease liability of:
Present value of annual lease payments = $8,756,727
Less: Annual lease payment on December 31, 2021 = $2,100,000
Less: Annual lease payment on December 31, 2022 = $2,100,000
Add: Interest expense on lease liability = $665,673
Lease liability = $5,222,400
Note that the interest expense on lease liability is calculated as:
= (8756727 - 2100000) × 10%
= $6,656,727 × 0.1
= $665,672.7 = $665,673
The World Bank forecasts growth of world trade to be 10.20%, up from 18.50% in 2017. This change has caused Galapagos Islands Resort to analyze its current financial situation, beginning with reconciling its accounts. Galapagos Islands Resort received its bank statement showing a balance of $10,419.90. Its checkbook balance is $16,227.00. Deposits in transit are $4,139.00 and $7,320.00. There is a service charge of $30.00 and interest earned of $5.90. Notes collected total $2,216.00. Outstanding checks are No. 1021 for $2,037.00 and No. 1022 for $1,423.00. All numbers are in U.S. dollars. Help Galapagos Island Resort reconcile its balances.
Answer:
Bank Balance is $25,338.90
Explanation:
The Bank Reconciliation Statement is prepared to check the accuracy of the Cash Book Balances through the following steps :
First, Prepare an updated Cash Book
Note : This gives us an adjusted cash book balance
Cash Book (Bank Balances Only)
Debit ;
Balance (unadjusted) $16,227.00
Interest Earned $5.90
Collected $2,216.00
Totals $25,368.90
Credit :
Service Charge $30.00
Balance (adjusted) $25,338.90
Totals $25,368.90
Then, Prepare a Bank Reconciliation Statement
Note : This proves the accuracy of the above cash balance
Bank Reconciliation Statement
Balance as per Bank Statement $10,419.90
Add Outstanding Checks ($4,139.00 + $7,320.00) $11,459.00
Less Unpresented Checks ($2,037.00 + $1,423.00) ($3,460.00)
Balance as per Cash Book $25,338.90
Keisha Tombert, the bookkeeper for Vaughn Consulting, a political consulting firm, has recently completed a managerial accounting course at her local college. One of the topics covered in the course was the cost of goods manufactured schedule. Keisha wondered if such a schedule could be prepared for her firm. She realized that, as a service-oriented company, it would have no work in process inventory to consider. Listed below are the costs her firm incurred for the month ended August 31, 2020. Supplies used on consulting contracts $1,940 Supplies used in the administrative offices 1,700 Depreciation on equipment used for contract work 910 Depreciation used on administrative office equipment 1,450 Salaries of professionals working on contracts 16,400 Salaries of administrative office personnel 8,690 Janitorial services for professional offices 800 Janitorial services for administrative offices 580 Insurance on contract operations 880 Insurance on administrative operations 930 Utilities for contract operations 2,360 Utilities for administrative offices 1,930 (a) Prepare a schedule of cost of contract services performed (similar to a cost of goods manufactured schedule) for the month.
Answer:
$23,290.00
Explanation:
Preparation forn a schedule of cost of contract services performed
Supplies used on consulting contracts 1,940.00
Salaries of professionals working on contract 16,400.00
Service Overhead:
Janitorial services for professional offices 800.00
Insurance on contract operations 880.00
Utilities for contract operations 2,360.00
Depreciation on equipment used for contract work 910.00
Total service overhead 4,950.00
(800.00+880.00+2,360.00+910.00)
Cost of Contract Services Provided 23,290.00
(1,940.00+16,400.00+4,950.00)
Administrative expenses:
Supplies used in administrative offices 1,700.00
Depreciation on administrative office equipment 1,450.00
Salaries of administrative office personnel 8,690.00
Janitorial services for administrative offices 580.00
Insurance on administrative operations 930.00
Utilities for administrative offices 1,930.00
TOTAL 15,280
Therefore the schedule of cost of contract services performed will be 23,290.00
1. The doctrine of judicial review allows:
a. the judicial branch to decide whether laws or actions of the other two branches are constitutional
b. the president to revoke United States Supreme Court decisions
c. the judicial branch to write laws when Congress is unwilling to do so
Answer:
a. the judicial branch to decide whether laws or actions of the other two branches are constitutional
Explanation:
The two branches that can be subjected to are the Executive and the Legislative arm of government. What this entails is that a court can invalidate laws or actions made by the legislature or executives possibly for violating the constitution. This is usually done by the Supreme Court of a country.
(6.55) During the current year, Robert pays the following amounts associated with his own residence: Property taxes $3,000 Mortgage interest 8,000 Repairs 1,200 Utilities 2,700 Replacement of roof 4,000 In addition, Robert paid $1,500 of property taxes on the home that is owned and used by Anne, his daughter. a.Which of these expenses can Robert deduct? b.Can Anne deduct the $1,500 of property taxes? c.Are the deductions for AGI or from AGI (itemized)? d.How could the tax consequences be improved? Summarize your recommendation.
Answer: See explanation
Explanation:
a. Which of these expenses can Robert deduct?
From the question, the deductible expenses will include the property taxes and the mortgage interest.
b.Can Anne deduct the $1,500 of property taxes?
Anne cannot deduct the $1,500 of property taxes because the $1500 has already been paid by Robert who is his father.
c.Are the deductions for AGI or from AGI (itemized)?
The deductions are from AGI itemized.
d.How could the tax consequences be improved?
The tax consequences be improved when a cash gift is given to Anne by his father Robert and then pay for her expenses.
The difference between a budget and a standard is that standards are excluded from the cost accounting system, whereas budgets are generally incorporated into the cost accounting system. a budget expresses management's plans, while a standard reflects what actually happened. a budget expresses what costs were, while a standard expresses what costs should be. a budget expresses a total amount, while a standard expresses a unit amount.
Answer:
The correct answer is the last option: a budget expresses a total amount, while a standard expresses a unit amount.
Explanation:
On the one hand, a budget is the name given, in the business field to an estimation done by the managers of the company that shows how much revenue and expenses the managers are expecting that will happen over a specified future period of time and that is normally compared to the reality and the basics of the process of the company while the production is on going.
On the other hand, a standard when it comes to terms of business refers more specifically to units because an standard is something that the managers of the company are expecting to acquire and to achieve over a certain period of time always focusing in the unit of production, not in the total amount.
Demand curves slope___ because as prices increase and other things remain
the same, the quantity demanded___.
downward; decreases
downward; increases
upward; decreases
upward; increases
(Expenditure Approach to GDP) Given the following annual information about a hypothetical country, answer questions a through d. Billions of Dollars Personal consumption expenditures $200 Personal taxes 50 Exports 30 Depreciation 10 Government purchases 50 Gross private domestic investment 40 Imports 40 Government transfer payments 20 What is the value of GDP? What is the value of net domestic product? What is the value of net investment? What is the value of net exports?
Answer:
What is the value of GDP?
GDP = C + I + G + NX (X-N)
GDP = $200 + $40 + $50 + NX ($30 - $40)
GDP = $200 + $40 + $50 - $10
GDP = $280
What is the value of net domestic product?
NDP = GDP - Depreciation
NDP = $280 - $10
NDP = $270
What is the value of net investment?
The formula is the same as net domestic product, so the value of net investment is also $270
What is the value of net exports?
The value of net exports, as seen above, is -$10 (because the value of imports is higher than the value of exports).
