Answer: $1,005,698
Explanation:
The following can be gotten from the question:
Building = $1490000
Add: Equipment= $517000
Add: Inventory:
= [$460000 × 1/2]
= $230000
Add: Accounts receivable:
= $250200 × 0.99
= $247698
Add: Cash = $11000
Less : liabilities = $1490000
Market value = $1,005,698
Therefore, the market value of the firm is $1,005,698.
Kenney Co. uses process costing to account for the production of canned energy drinks. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Equivalent units have been calculated to be 15,600 units for materials and 12,950 units for conversion costs. Beginning inventory consisted of $9,500 in materials and $4,450 in conversion costs. April costs were $55,800 for materials and $55,824 for conversion costs. Ending inventory still in process was 5,300 units (100% complete for materials, 50% for conversion). The cost per equivalent unit for conversion costs using the weighted average method would be:_______.
a. $4.00.b. $4.40.c. $1.10.d. $8.70.
Answer:
Kenny Co.
Cost per equivalent units:
Materials Conversion
Costs: $55,800 $55,824
Equivalent units 15,600 12,950
Cost per equivalent:
Materials:
$55,800/15,600 = $3.58 $4.31 ($55,824/12,950)
Cost per equivalent unit for Conversion = $4.31
Explanation:
a) Data and Calculations:
Equivalent units:
Materials 15,600
Conversion 12,950
Beginning WIP:
Materials $9,500
Conversion $4,450
April costs:
Materials = $55,800
Conversion $55,824
Ending WIP:
Materials = 5,300 (100% complete)
Conversion = 2,650 (50% complete)
he following information pertains to Adams Manufacturing Company for March Year 3. Assume actual overhead equaled applied overhead. March 1 Inventory balances Raw materials $ 123,900 Work in process 118,400 Finished goods 77,400 March 31 Inventory balances Raw materials $ 85,500 Work in process 145,200 Finished goods 80,900 During March Costs of raw materials purchased $ 118,900 Costs of direct labor 100,500 Costs of manufacturing overhead 62,800 Sales revenues 356,000 Required Prepare a schedule of cost of goods manufactured and sold. Calculate the amount of gross margin on the income statement.
Answer:
Instructions are below.
Explanation:
First, we need to calculate the cost of goods manufactured using the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 118,400 + (123,900 + 118,900 - 85,500) + 100,500 + 62,800 - 145,200
cost of goods manufactured= $293,800
Now, we can determine the cost of goods sold:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 77,400 + 293,800 - 80,900
COGS= $290,300
Finally, the gross margin:
Gross margin= sales - cogs
Gross margin= 356,000 - 290,300
Gross margin= $65,700
Choose a well-known company in sports and entertainment management that you know ?
0.71 points eBookPrintReferences Check my work Check My Work button is now enabledItem 2Item 2 0.71 points Kerianne paints landscapes, and in late 2021 placed four paintings with a retail price of $300 each in the Holmstrom Gallery. Kerianne’s arrangement with Holmstrom is that Holmstrom will earn a 10% commission on paintings sold to gallery patrons. As of December 31, 2021, one painting had been sold by Holmstrom to gallery patrons. How much revenue with respect to these four paintings should Kerianne recognize in 2021?
Answer:
$300
Explanation:
Based on the information given we were told that Kerianne paints placed four paintings that include a retail price of the amount of $300 for each of the four paintings in the Holmstrom Gallery which simply means that the amount of revenue with respect to the four paintings that Kerianne paints will recognize in the year 2021 will be the amount of $300.
easure of Damages. Before buying a house, Dean and Donna Testa hired Ground Systems, Inc. (GSI), to inspect the sewage and water disposal system. GSI reported a split system with a watertight septic tank, a wastewater tank, a distribution box, and a leach field. The Testas bought the house. Later, Dean saw that the system was not as GSI described—there was no distribution box or leach field, and there was only one tank, which was not watertight. The Testas arranged for the installation of a new system and sold the house. Assuming that GSI is liable for breach of contract, what is the measure of damages?
Answer:
The Testas will probably be entitled to compensatory damages since they probably overpaid for the house. If they had known that the house did not have a proper sewage and water disposal system, they would have probably offered a lower price for the house or might have even decided not to buy it. The amount of the damages should be equal to the difference in the price of the house having a proper sewage and water disposal system vs. not having it.
The two big drivers of outsourcing are Select one: A. that a smaller in-house workforce and a low investment in intellectual capital will produce cost savings. B. a desire to reduce the company's investment in fixed assets and the need to narrow the scope of the company's in-house competencies and competitive capabilities. C. an increased ability to cut R&D expenses and an increased ability to avoid the problems of strategic alliances. D. that outsiders can often perform certain activities better or more cheaply, and outsourcing allows a firm to focus its entire energies on those activities that are at the center of its expertise (its core competencies). E. the ability to avoid capital investments that accompany vertical integration and a desire to reduce the company's risk exposure to changing technology and/or changing buyer preferences.
Answer:
Option D. that outsiders can often perform certain activities better or more cheaply, and outsourcing allows a firm to focus its entire energies on those activities that are at the center of its expertise (its core competencies).
Explanation:
Outsourcing is the use of external entities to undertake the key business activities. When we outsource certain value chain activities makes strategic sense if only the activity can be performed better or more cheaply by outside specialist, ifthe activity is not crucial to the firm's ability to achieve sustainable competitive advantage, he outsourcing improves organizational flexibility and speeds time to market and also leverage its key resources, and do even better what it already does best.
The two big drivers of outsourcing are that outsiders can often perform certain activities better or more cheaply, and outsourcing allows a firm to focus its entire energies on those activities that are at the center of its expertise. Option D is correct.
The term “Outsourcing” refers to the practice of outsourcing work that is typically done within a company. Outsourcing is a concept that many entrepreneurs are familiar with, and it’s something that many small businesses do on a regular basis.
Outsourcing includes outsourcing payroll, accounting, distribution, and many other important functions.
Therefore the correct answer is option D.
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The following information is available for Sunland Company.
January 1, 2020 2020 December 31, 2020
Raw materials
inventory $22,250 $32,860
Work in process
inventory 15,470 18,560
Finished goods
inventory 30,780 21,290
Materials
purchased $154,500
Direct labor 225,290
Manufacturing
overhead 183,120
Sales revenue 902,310
Compute cost of goods manufactured.
Answer:
Sunland Company
Cost of goods manufactured Schedule
For the year ended
Work in progress 15,470
Direct Materials
Raw material 22,250
Add: Raw material purchased 154,500
Total raw material available for use 176,750
Less: Raw material inventory 32,850
Direct material used 143,890
Direct labor 225,290
Manufacturing overhead 183,120
Total manufacturing costs 552,300
Total cost of work in progress 567,770
Less: Work in process inventory 18,560
Cost of goods manufactured 549,210
Which reasons can be fixed by having a money plan?
Answer:
The given question relates to budgeting. In simple words, budgeting helps one to set up a saving schedule for thier finances, it means that people still have sufficient funds for the items they need and activities which are valuable to them. The expenditure or savings strategy will either keep you free of trouble or assist you get this out of debt if you're already in debt.
Why are tangible features important to include in development of a service?
A. Because services are an example of specialty goods.
B. Because they provide storage space for services.
C. Because services are mainly tangible.
D. Because customers can't try many services before buying.
The tangible features are important to include in generally and actually development of a service because customers can't try many services before buying Option(d) is correct.
What is an Tangible feature?A tangible feature is something that can fulfill a possibility's distinguished need. Tangible features are the realities that your possibilities coherently use to legitimize their profound choices.
They incorporate the graphic qualities of your item or administration and the components of your proposition, including motivating forces. The features of your item or administration are the qualities you use to portray it. They are the characteristics that can measure up to contenders.
You realize you're taking a gander at a tangible feature in the event that it very well may be recorded on a promotion, a spec sheet or a correlation diagram, similar to these models. These are features that you can rundown and guests can look at and verify. Your items and administrations have many features.
Therefore Option(d) is correct.
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Like many college students, Stephanie applied for and got a credit card that has an annual percentage rate (APR) of 18%. The first thing she did was buy a new HD Television for $300. At the end of the month, her credit card statement said she only needed to make a minimum monthly payment of $10. Assume Stephanie makes her payment when she sees her statement at the end of each month. If Stephanie doesn't charge anything else and only makes the minimum monthly payments, approximately how many months would it take her to completely pay off the HD Television? Assume that the credit card company compounds interest at the end of each month.
a) 40.2 months
b) 37.8 months
c) 35.8 months
d) 19.3 months
e) 46.3 months
Answer:
A
Explanation:
A financial calculator is needed to calculate the number of months needed to pay off for the TV
FV = 0
PMT = $10
PV = -$300
I = 18% / 12 = 1.5%
N = 40.15 years
Bethesda Mining Company reports the following balance sheet information for 2018 and 2019.
BETHESDA MINING COMPANY
Balance Sheets as of December 31, 2018 and 2019
2018 2019 2018 2019
Assets Liabilities and Owners’ Equity
Current assets Current liabilities
Cash $ 45,262 $ 57,602 Accounts payable $ 190,922 $ 198,611
Accounts receivable 61,281 81,639 Notes payable 86,020 137,588
Inventory 126,088 192,061
Total $ 276,942 336,199 Total $ 232,631 331,302
Long-term debt $ 239,000 $ 175,750
Owners’ equity
Common stock and 216,000 216,000
paid-in surplus
Accumulated retained 158,636 192,931
earnings
Fixed assets
Net plant and $ 657,947 $ 589,578
equipment Total $ 374,636 408,931
Total assets $ 890,578 920,880 Total liabilities and $ 890,578 920,880
owners’ equity
Calculate the following financial ratios for each year:
a. Current ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b. Quick ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
c. Cash ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
d. Debt-equity ratio and equity multiplier. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
e. Total debt ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Answer:
a. Current ratio = current assets / current liability
2018 = 276,942 / 232,631 = 1.19
2019 = 336,199 / 331,302 = 1.01
b. Quick ratio = (current assets - inventory) / current liabilities
2018 = (276,942 - 126,088) / 232,631 = 0.65
2019 = (336,199 - 192,061) / 331,302 = 0.44
c. Cash ratio = (cash + cash equivalents) / current liabilities
2018 = 45,262 / 232,631 = 0.19
2019 = 57,602 / 331,302 = 0.17
d. Debt-equity ratio = debt / equity
2018 = 515,942 / 374,636 = 1.38
2019 = 511,949 /408,931 = 1.25
equity multiplier = assets / equity
2018 = 890,578 / 374,636 = 2.38
2019 = 920,880 /408,931 = 2.25
e. Total debt ratio = debt / assets
2018 = 515,942 / 890,578 = 0.58
2019 = 511,949 / 920,880 = 0.56
EZ Rental Car offers rental cars in an off-airport location near a major tourist destination in Florida Management would like to better understand the behaviour of the company's costs. One of those costs is the cost of washing cars. The company operates its own car wash facility in which each rental car that is returned is thoroughly cleaned before being released for rental to another customer Management believes that the costs of operating the car wash should be related to the number of rental returns. Accordingly, the following data have been compiled:
Month Rental Returns Car Wash Costs
January 2,470 $11,713
February 2,533 $13,491
March 2,801 $12,505
April 3,114 $15,349
May 3,700 $16,934
June 5,181 $24,655
July 5,592 $22,870
August 5,668 $23,930
September 4,788 $23,460
October 4,522 $23,183
November 2,266 $11,430
December 3,055 $16,681
Required:
Using least-squares regression, estimate the fixed cost and variable cost elements of monthly car wash cost.
Fixed cost
Variable cost per unit
Answer:
I used an excel spreadsheet to calculate this:
the least squares regression line:
y = a + bx
y = $2,937 + 3.96x
where y = total cash wash costs and x = rental returns
fixed costs = $2,937 per month
variable cost = $3.96 per car washed
Lupine Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 31,700 Total fixed manufacturing overhead cost $ 253,600 Variable manufacturing overhead per machine-hour $ 6.00 Recently, Job L716 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 30 Direct materials $ 690 Direct labor cost $ 1,380 The amount of overhead applied to Job L716 is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
Allocated MOH= $420
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (253,600/31,700) + 6
Predetermined manufacturing overhead rate= $14 per machine hour
Now, we can allocate overhead to Job L716:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 14*30
Allocated MOH= $420
On September 12, Vander Company sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Vander uses the periodic inventory system and the gross method of accounting for sales. On September 14, Jepson returns some of the non-defective merchandise, which is restored to inventory. The selling price of the returned merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Vander must make on September 14 is (are):
Answer:
DR Sales returns and Allowances ............................. $500
CR Accounts Receivable........................................................$500
Explanation:
Jepson returned $500 worth of goods so this would need to be accounted for by reducing the Accounts receivable amount by $500.
The returns will be accounted for in the Sales returns and allowances account which will be debited to reflect this.
Chris P. Bacon is the chief accountant for CV Industries, a large manufacturing company. In addition to its normal business activities, the company has excess warehouse space that it rents out to local businesses. Because the typical renter is a small business, CV Industries requires renters to make lease payments for the entire rental period on the day the lease is signed. As a result, CV Industries typically reports a large unearned rent balance on its balance sheet. After making adjusting entries for the current year, Chris prepares the adjusted trial balance and notices that the company’s earnings will decline significantly. He presents the adjusted trial balance to the company’s CFO, Antonio Beldin, who is concerned about the earnings decline. Mr. Beldin notices the large unearned rent balance and proposes making an additional end-of- period adjusting entry to recognize the entire unearned rent balance as revenue in the current period. Chris protests, reminding Mr. Beldin that the adjusting entry for unearned rent has already been made. Mr. Beldin assures Chris that his proposal is acceptable, reminding Chris that "because we have already received the cash, we have the right to recognize the revenue in the current period." He instructs Chris to make the additional adjusting journal entry. Chris is hesitant to follow these instructions, but he is sensitive to the company’s emphasis on earnings growth and makes the adjusting entry as instructed.Is Chris behaving ethically? Why?Who is affected by Chris’s decision?
Answer:
CV Industries
1. Chris is not behaving ethically if he follows through with Mr. Berdin's instructions to make the additional adjusting journal entry. This adjustment will result to smoothening the revenue by using the unearned rent revenue.
2. This unethical practice does not comply with IFRS 15, Revenue from Contracts with Customers, which is harmonized with US GAAP. This requires that revenue be recognized for actual performance of contract obligations.
3. The stockholders will be misled by Chris' decision. Creditors, potential investors, and other users of financial reports will also be misled when the revenue for the future periods are recognized in the current period.
Explanation:
Revenue should be recognized when the performance obligation relating to the revenue has been fulfilled. And in accordance with the accrual concept and matching principle of generally accepted accounting principles, only revenue relating to the period should be recognized.
Based on the information given, it can be deduced that the behavior of Chris is not ethical.
In this case, the company has not followed the requisite standards and GAAP. It should be noted that the unearned rent must not be booked as income.
Even though the amount is received, then it would be accounted as advance received. Due to this, the financial statements give a false financial position. Lastly, the organization and the investors are affected by Chris's decision.
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The balance in the Prepaid Rent account before adjustment at the end of the fiscal year is $10,000, which represents five months of rent which was paid on December 1. The year-end adjusting entry required on December 31 is Group of answer choices debit Prepaid Rent, $2,000; credit Rent Expense, $2,000 debit Rent Expense, $8,000; credit Prepaid Rent, $8,000 debit Rent Expense, $10,000; credit Prepaid Rent, $10,000 debit Rent Expense, $2,000; credit Prepaid Rent, $2,000
Answer: debit Rent Expense, $2,000; credit Prepaid Rent, $2,000---D
Explanation:
Balance in Prepaid rent account = $10,000
Rent expense = $10,000/5 months = $2,000
Adjusting journal entry To record the expiration of rent for December month
Date Accounts Titles and Explanations Debit Credit
Dec. 31 Rent Expense ($10,000/5 months) $2,000
Prepaid Rent $2,000
debit Rent Expense, $2,000; credit Prepaid Rent, $2,000---D
Sunland Corporation had net sales of $2,427,500 and interest revenue of $40,000 during 2020. Expenses for 2020 were cost of goods sold $1,465,500, administrative expenses $220,600, selling expenses $289,300, and interest expense $47,900. Sunland’s tax rate is 30%. The corporation had 103,100 shares of common stock authorized and 71,990 shares issued and outstanding during 2020. Prepare a condensed multiple-step income statement for Sunland Corporation. (Round earnings per share to 2 decimal places, e.g. 1.48.)
Answer and Explanation:
The preparation of the condensed multiple-step income statement is presented below:
Net sales $2,427,500
Less: Cost of goods sold -$1,465,500
Gross profit $962,000
Less:
Selling expenses $289,300
Administrative expenses $220,600 ($509,900)
Income from operations $452,100
Other revenue and gains
Interest revenue $40,000
Other expenses and losses
Interest expense $47,900 ($7,900)
Income before income tax $444,200
Income tax expense(30%) ($133,260)
Net income $310,940
Earnings per share($310,960 ÷ 71,990 shares) $4.32
On January 2, 2015, Quick Delivery Company traded in an old delivery truck for a newer model. The exchange lacked commercial substance. Data relative to the old and new trucks follow:
Old Truck
Original cost $24,000
Accumulated depreciation as of January 2, 2015 16,000
Fair value of used machine 6,000
New Truck
List price $36,000
Trade in allowance for used machine 6,000
Cash paid with trade in 30,000
What should be the cost of the new truck for financial accounting purposes?
a. $30,000.
b. $36,000.
c. $38,000.
d. $40,000.
Answer:
$36,000
Explanation:
The first step is to calculate the fair value of the new truck
(List price-cash paid with trade)-(original cost -accumulated depreciation)
= (36,000-30,000)-(24,000-16,000)
= 6000-8000
= loss of $2000
Therefore the cost of the new truck for financial accounting purposes can be calculated as follows
(Original cost- accumulated depreciation)+cash paid with trade-loss
= (24,000-16,000)+30,000-2000
= 8,000 + 30,000 - 2,000
= 38,000-2,000
= $36,000
Hence the cost of the new truck for financial accounting purposes is $36,000
Which management tool helps managers evaluate their contributions to the organization's goals, vision, and mission?
Balanced scorecard
Strategic constituencies
Internal process
Systems resources
Answer:
B (strategic constutencies)
Explanation:
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:_______.
Total machine-hours 30,000
Total fixed manufacturing overhead cost $252,000
Variable manufacturing overhead per machine-hour $ 2.10
Recently, Job T687 was completed with the following characteristics:________.
Number of units in the job 10
Total machine-hours 30
Direct materials $ 675
Direct labor cost $1,050
If the company marks up its unit product costs by 40% then the selling price for a unit in Job T687 is closest:______
Answer:
Selling price= 240*1.4= $336
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (252,000/30,000) + 2.1
Predetermined manufacturing overhead rate= $10.5 per machine hour
Job T687:
Number of units in the job 10
Total machine-hours 30
Direct materials $ 675
Direct labor cost $1,050
Now, we need to allocate overhead and determine the total cost:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 10.5*30= $315
Total cost= 675 + 1,050 + 315= $2,040
Finally, the unitary cost and selling price:
Unitary cost= 2,040/10= $240
Selling price= 240*1.4= $336
he ledger of the General Fund of the City of New Elisa shows the following balances at the end of its fiscal year. Prepare closing journal entries for these budgetary and financial accounts. Estimated revenues $300,000 Appropriations 305,000 Budgetary fund balance 5,000 Revenues 300,000 Expenditures 285,000 Description Debit Credit Answer Answer Answer Answer Answer Answer Answer Answer Answer To close budgetary accounts. Answer Answer Answer Answer Answer Answer Answer Answer Answer To close financial accounts.
Answer and Explanation:
The closing journal entries are shown below:
1. Appropriations Dr $305,000
To Estimated revenues $300,000
To BUdgteary fund balance $5,000
(Being budgetary accounts are closed),
2. Revenues Dr $300,000
To Expenditures $285,000
To Fund balance $15,000
(Being the financial accounts are closed)
The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of the Infinite Progresso jackpot will receive $800 at the end of January, $2,100 at the end of February, $3,400 at the end of March, and so on up to $15,100 at the end of December. At the beginning of the next year, the sequence repeats starting at $800 in January and ending at $15,100 in December. This annual sequence of payments repeats indefinitely. If the gaming commission expects to sell a minimum of 1,150,000 tickets, what is the minimum price they can charge for the tickets to break even, assuming the commission earns 3.00 %/year/month on its investments and there is exactly one winning ticket
Answer:
Explanation:
3% per year
monthly interest = [tex]( 1.03 )^\frac{1}{12} -1[/tex]
= 1.00246 -1 = .246 %
Present value of cash flow = 780 + 2000.37 + 3160.93 + 4264.62+ 5313.48
+ 6309.52 + 7254.67 + 8150.8 + 8999.71 + 9803.16 + 10562.85 + 11280.40
= 77880.51
capitalised cost for this cash outflow for indefinite period
= 77880.51 / .03 = 2596017
no of tickets = 1150000
price per ticket for break even
= 2596017 / 1150000
= 2.257
price per ticket for break even = 2.257
Allitron, Inc., and Donovan, Ltd., are interstate competitors selling similar appliances, principally in the state of Illinois, Indiana, Kentucky, and Ohio. They agree that Allitron will no longer sell in Indiana and Ohio and that Donovan will no longer sell in Illinois and Kentucky. Identify the law or laws they are violating and why. Also, explain what, if any, punishment could result from this violation of the antitrust laws
Answer:
Since Allitron and Donovan engage in interstate commerce, they are regulated by the Sherman Antitrust Act. They incurred in collusion, which is illegal since they are restraining interstate commerce. Since they are competitors, they are prohibited from simply dividing sales territories, they should instead be competing for who serves them better.
Several punishments can result from this type of behavior:
the companies can be fined with up to $1 million eachtheir upper management can be sent to jail for up to 3 yearsthe Department of Justice should take actions that limit thisPeter Realtors, a real estate consulting firm, specializes in advising companies on potential new plant sites. The company uses a job order costing system with a predetermined overhead allocation rate, computed as a percentage of direct labor costs. At the beginning of 2016, managing partner Andrew Peters Prepared the following budget for the year:
Chance Manufacturing, Inc. is inviting several consultants to bid for work. Andrew Peters wants to submit a bid. He estimates that this job will require about 250 direct labor hours.
Direct labor hours (professionals) 25,000 hours
Direct labor costs (professionals) $2,500,000
Office rent 320,000
Support staff salaries 1,260,000
Utilities 420,000
Requirement 1.
Compute Realtors'
(a) hourly direct labor cost rate and
(b) predetermined overhead allocation rate. Begin with (a) hourly direct labor cost rate. Direct labor / = cost rate / = per hour Now compute Realtors' (b) predetermined overhead allocation rate. Predetermined overhead / = allocation rate / = %
Requirement 2. Compute the predicted cost of the Manufacturing job. Root Realtors Estimated Cost of the White Manufacturing Job hrs. x = + % x = Total predicted cost
Requirement 3. If wants to earn a profit that equals % of the job's cost, how much should bid for the Manufacturing job? Add: Required service revenue
Answer:
1. Hourly Direct Labor Cost rate = Direct Labor cost / Direct Labor hours
Hourly Direct Labor Cost rate = 2,500,000 / 25,000
Hourly Direct Labor Cost rate = $100 per hour
Computation of Indirect cost
Office Rent $320,000
Support staff salaries $1,260,000
Utilities $420,000
Total Indirect Costs $2,000,000
Predetermined indirect cost allocation rate = = Total Estimated indirect cost / Total estimated direct labor cost = 2,000,000 / 2,500,000 = 80% of Direct Cost
2. Direct Labor $25,000 (250 * 100)
Indirect Cost $20,000 (25,000 * 80%)
Total Predicted cost $45,000
3. Predicted cost $45,000
Desired Profit $22,500 (50% of $45,000)
Required Service revenue $67,500
On January 1, 2020, a foundation made a pledge to pay $15,000 per year at the end of each of the next five years to the Cancer Research Center, a nonprofit voluntary health and welfare organization, as a salary supplement for a well-known researcher. On December 31, 2020, the first payment of $15,000 was received and paid to the researcher. On the books of the Cancer Research Center, record the pledge on January, assuming the appropriate discount rate is 5 percent on an annual basis. The appropriate present value annuity factor is 4.32948. Record the increase in the present value as of December 31. Record the receipt of the first $15,000 on December 31 and the payment to the researcher. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.)
Answer:
Journal entries
General journal Debit Credit
1) Contribution receivable $64,942
($15000 * 4.32948 )
Contribution- temporarily restricted $64,942
2) Contribution receivable $3,247
($64942 * 5%)
Contribution- temporarily restricted $3,247
3) Cash contribution - receivable $15,000
Contribution- receivable $15,000
Reclassification from temporarily restricted net
Assets expiration from temporarily restrictions
Reclassification to unrestricted net assets $15,000
Expiration of time restrictions $15,000
Research expenses:
Salary statement $15,000
Cash $15,000
This HWA explores epistemologies of your areas of concentration for your BUS degree. You will list each concentration, the major purpose of the concentration, the common methods used, major theorists in the field, and how you see the concentration fitting into your future career. You should have 3 concentrations if you are a BUS or HS major. If you are majoring in another field, use your major plus select the additional 2 concentrations of your choice to use throughout the INTS program that interest you and fit best your career plans.
Submit your 3 concentration explorations by typing them in the submission box for HWA 2. If you choose to upload a file, make sure it is Microsoft Word or PDF. I will not accept incompatible files that can't be opened in Blackboard.
Please use the following format:
CONCENTRATION 1-
Name:
Purpose:
Common Methods:
Major Theorists:
How does this concentration fit into my future career?
CONCENTRATION 2-
Name:
Purpose:
Common Methods:
Major Theorists:
How does this concentration fit into my future career?
CONCENTRATION 3-
Name:
Purpose:
Common Methods:
Major Theorists:
How does this concentration fit into my future career?
Answer:
Lalit- It is a mix of song, dance, and story presentation.
Bharu - It includes singing of Bhajans followed by characters presenting a story connected to day to day life.
All are various forms of arts!
Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected life of 5 years, will cost $100 million, and will produce net cash flows of $30 million per year. Plane B has a life of 10 years, will cost $132 million, and will produce net cash flows of $25 million per year. Shao plans to serve the route for only 10 years. Inflation in operating costs, airplane costs, and fares are expected to be zero, and the company's cost of capital is 12%. By how much would the value of the company increase if it accepted the better project (plane)
Answer:
?????
Explanation:
Quinlan-Cohen, Inc., publishers of movie and song trivia books, made the following errors in adjusting the accounts at year-end (December 31):______.
a. Did not accrue $1,000 owed to the company by another company renting part of the building as a storage facility.
b. Did not record $15,000 depreciation on the equipment costing $121,000.
c. Failed to adjust the Unearned Fee Revenue account to reflect that $1,500 was earned by the end of the year.
d. Recorded a full year of accrued interest expense on a $21,000, 11 percent note payable that has been outstanding only since November 1.
e. Failed to adjust Prepaid Insurance to reflect that $620 of insurance coverage had been used.
Required:
1-a. Prepare the adjusting journal entry that was made, if any at year-end. (If no entry is made for a transaction/event, select "No journal entry made" in the first account field.)
1-b. Prepare the adjusting journal entry that should have been made at year-end. (Do not round intermediate calculations. If no entry is made for a transaction/event, select "No journal entry made" in the first account field.)
2. Using the following headings, indicate the effect of each error and the amount of the effect (that is, the difference between the entry that was or was not made and the entry that should have been made). Use O if the effect overstates the item, U if the effect understates the item. (Reminder: Assets = Liabilities + Stockholders' Equity; Revenues - Expenses = Net Income, and Net Income accounts are closed to retained Earnings, a part of Stockholders' Equity.)
Answer:
Quinlan-Cohen, Inc.
1-a. Adjusting journal entry made:
d. Debit Interest Expense $21,000
Credit Interest Expense Payable $21,000
Which recorded the full year of accrued expense.
1-b. Adjusting journal entry that should have been made:
a. Debit Rent Receivable $1,000
Credit Rent Revenue $1,000
To accrue rent.
b. Debit Depreciation Expense - Equipment $15,000
Credit Accumulated Depreciation - Equipment $15,000
To record depreciation expense for the period.
c. Debit Unearned Fee Revenue $1,500
Credit Fee Revenue $1,500
To record Earned Fee Revenue for the year.
d. Debit Interest Expense $3,500
Credit Interest Expense Payable $3,500
To accrue interest expense for the year (2 months).
e. Debit Insurance Expense $620
Credit Prepaid Insurance $620
To record insurance expense for the year.
2. Indication of the effect of each error and the amount of the effect:
Assets = Liabilities + Stockholders' Equity; Revenues - Expenses = Net Income
a. Assets $1,000 U = Liabilities + Stockholders' Equity $1,000 U
b. Assets $15,000 O = Liabilities + Stockholders' Equity $15,000 O
c. Assets = Liabilities $1,500 O + Stockholders' Equity $1,500 U
d. Assets = Liabilities $17,500 O + Stockholders' Equity $17,500 U
e. Assets $620 O = Liabilities + Stockholders' Equity $620 O
Explanation:
The accounting equation shows that with each transaction, Assets are always equal to Liabilities + Stockholders' Equity. This is illustrated with the above adjustments made.
Uli produces stereo speakers. The selling price per pair of speakers is $1,930. There is no beginning inventory. Costs involved in production are: Direct material $162 Direct labor 210 Variable manufacturing overhead 98 Total variable manufacturing costs per unit $470 Fixed manufacturing overhead per year $679,420 In addition, the company has fixed selling and administrative costs: Fixed selling costs per year $199,000 Fixed administrative costs per year $102,500 During the year, Uli produces 1,610 pairs of speakers and sells 1,340 pairs. Exercise 5.4 Correct answer iconYour answer is correct. What is the value of ending inventory using full costing
Answer:
Ending inventory= $240,840
Explanation:
Giving the following information:
Total variable manufacturing costs per unit $470
Fixed manufacturing overhead per year $679,420
During the year, Uli produces 1,610 pairs of speakers and sells 1,340 pairs.
The full costing method (absorption costing) includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
First, we need to calculate the total production cost:
Total cost= 1,610*470 + 679,420
Total cost= $1,436,120
Now, the unitary cost and ending inventory cost:
Unitary cost= 1,436,120/1,610= $892
Ending inventory= $892*270 units
Ending inventory= $240,840
During March, the production department of a process operations system completed and transferred to finished goods 23,000 units that were in process at the beginning of March and 130,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 57% complete with respect to conversion. At the end of March, 32,000 additional units were in process in the production department and were 100% complete with respect to materials and 32% complete with respect to conversion. Compute the number of physical units transferred to finished goods.
Answer:
-
Explanation:
