Answer:
economic order = 16,971 units
annual holding cost = $503.34
annual ordering cost = $530.32
total cost of silverware per year = $57,283.66
Explanation:
we must first calculate the holding costs for the different prices:
$1.80 x 5% = $0.09
$1.60 x 5% = $0.08
$1.40 x 5% = $0.07
$1.25 x 5% = $0.0625
EOQ = √[(2 x S x D) / H]
S = order cost = $200
D = annual demand = 45,000
H = holding cost = we will try all 4 options
EOQ₁ = √[(2 x 200 x 45,000) / 0.09] = 14,142.13 units
EOQ₂ = √[(2 x 200 x 45,000) / 0.08] = 15,000 units
EOQ₃ = √[(2 x 200 x 45,000) / 0.07] = 16,035.67 units
EOQ₄ = √[(2 x 200 x 45,000) / 0.0625] = 16,970.56 units
Since all EOQs are over 10,000 units, then we will definitely use the holding cost of $0.0625, price per unit $1.25, and economic order of 16,971 units.
annual holding cost = average inventory x holding cost = (16,971 / 2) x $0.0625 = $503.34
annual ordering cost = (45,000 / 16,971) x $200 = $530.32
total cost of silverware per year = (45,000 x $1.25) + $503.34 + $530.32 = $57,283.66
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $4.4 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $4.7 million. The company wants to build its new manufacturing plant on this land; the plant will cost $11.9 million to build, and the site requires $710,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.) Cash flow amount $
Answer:
$17,310,000
Explanation:
Land purchased for use as warehouse and distribution site = $4.4 million(6 years ago)
Current market value of land = $4.7 million
For determining the initial investment in fixed assets for the plant, the current value of the land will have to be taken (as Parker and Stone would have had to buy land at this price for the plant, if the land was not already with it).
The amount spent on land will not be treated as sunk costs as this amount is not permanently lost. The company can recover money by selling the land. So the current market value will be included in the initial investment in fixed assets in reference to the project.
So, proper cash flow for the project = Site grading costs +Plant cost + Current market value of land
= $710,000 + $11.9 million + $4.7 million
= $17,310,000
Hence, $17,310,000 is the amount of initial investment in fixed assets to be used when evaluating this project.
Factory Overhead Rates, Entries, and Account Balance Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows:
Factory 1 Factory 2
Estimated factory overhead cost for fiscal year beginning August 1 $18,500,000 $10,200,000
Estimated direct labor hours for year 250,000
Estimated machine hours for year 600,000
Actual factory overhead costs for March $12,990,000 $10,090,000
Actual direct labor hours for March 245,000
Actual machine hours for March 610,000
a. Determine the factory overhead rate for Factory 1. $ per machine hour
b. Determine the factory overhead rate for Factory 2. $ per direct labor hour
Feedback
c. Journalize the entries to apply factory overhead to production in each factory for March.
Factory 1 Work in Process
Factory Overhead
Factory 2 Work in Process
Factory Overhead
Feedback
d. Determine the balances of the factory overhead accounts for each factory as of March 31,and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead.
Factory 1 $ Credit Overapplied
Factory 2 $ Debit Underapplied
Answer and Explanation:
The computation is shown below:-
a. Factory overhead rate for Factory 1 = Estimated factory overhead cost ÷ Estimated machine hours for year
= $18,500,000 ÷ 600,000
= $30.83
b. Factory overhead rate for Factory 2 = Estimated factory overhead cost ÷ Estimated direct labor hours for year
= $10,200,000 ÷ 600,000
= $40.80
c. The journal entry is shown below:-
1. Work in process Dr, $13,115,000 (610,000 × $21.50)
To Factory overhead $13,115,000
(Being the factory overhead is recorded)
2. Work in process Dr, $9,996,000 (245000 × $40.80)
To Factory overhead $9,996,000
(Being the factory overhead is recorded)
d. For Factory 1
= $12,990,000 - $13,115,000
= $125,000 Credit Overapplied
For Factory 2
= $10,090,000 - $9,996,000
= $94,000 Debit Underapplied
Depository Institutions are required to______and_____, although the general terms used to describe these financial products may vary across the various types of institutions. Non-depository Institutions, In contrast, accept cash contributions from their customers, but the cash inflows are not called_____Instead, they're called shares or premiums.
Non-depository Institutions include:_____.
A. Commercial banks, savings banks, savings and loan associations (thrifts), and credit unions.
B. Mutual funds, insurance companies, brokerage firms, and financial services companies.
What are the different forms and products of non-depository Institutions?
If you wanted to purchase investment advice, as well as stocks, bonds, and other investments, which type of non-depository institution should you contact?
A. An insurance company.
B. A stock brokerage firm.
Just as depository institutions differ from non-depository Institutions, there are also differences between the structure and activities of, and the financial products and services provided by, various depository institutions. Which of the following statements are true?
A. Mutual savings banks and credit unions are similar in that both are owned by their depositors, who share in their profits.
B. Demand deposit accounts created by commercial banks are usually called checking accounts or negotiable order of withdrawal (NOW) accounts, while those created by credit unions are called share draft accounts.
C. Commercial banks tend to pay interest rates that are greater than those paid by savings banks and credit unions.
Answer:
Depository Institutions are required to ACCEPT DEPOSITS and HAND OUT LOANS, although the general terms used to describe these financial products may vary across the various types of institutions. Non-depository Institutions, In contrast, accept cash contributions from their customers, but the cash inflows are not called DEPOSITS. Instead, they're called shares or premiums.
Non-depository Institutions include:_____.
B. Mutual funds, insurance companies, brokerage firms, and financial services companies.
What are the different forms and products of non-depository Institutions?
Non-depository institutions include:
finance companies that generally make personal loanssecurities firms that trade securities, provide brokerage services and/or are investment banksinsurance companies that provide insurance servicesinvestment companies that sell their securities and then invest the proceedings, e.g. mutual fundsIf you wanted to purchase investment advice, as well as stocks, bonds, and other investments, which type of non-depository institution should you contact?
B. A stock brokerage firm.
Just as depository institutions differ from non-depository Institutions, there are also differences between the structure and activities of, and the financial products and services provided by, various depository institutions. Which of the following statements are true?
A. Mutual savings banks and credit unions are similar in that both are owned by their depositors, who share in their profits.
B. Demand deposit accounts created by commercial banks are usually called checking accounts or negotiable order of withdrawal (NOW) accounts, while those created by credit unions are called share draft accounts.
Scrooge, Inc. prepares adjusting entries only at the end of its fiscal year, August 31. Scrooge has the following unadjusted account balances at August 31. Accounts payable $300 Cash $6,100 Common stock $1,500 Prepaid rent $3,600 Service revenue $5,000 Rent expense $800 Retained earnings $300 Unearned revenue $4,000 Wages expense $600 The following facts are available for the fiscal period: The current pay period concludes on Sept. 8th, when the employee will be paid his wages of $180. The employee earns $100 before August 31st and the rest between Sept. 1st and Sept. 8th. On July 1st, Scrooge paid $3,600 to cover its rent for the next six months. On May 1st, Scrooge collected $4,000 in advance for services to be performed in the future. Scrooge completed 80% of this work before the end of the fiscal year. What net income should Scrooge report for the fiscal year
Answer:
$6,100
Explanation:
The computation of the net income is shown below:
= Service revenue in trial balance + ( unearned revenue × given percentage) - (rent expense in trial balance) + ( Prepaid rent × 2 months ÷ 12 months) - (wages expense in trial balance + adjusted trial balance)
= $5,000 + ($4,000 × 80%) - ($800 + $3,600 × 2 months ÷ 12 months - ($600 + $100)
= $5,000 + $3,200 - $1,400 - $700
= $6,100
You want to buy a new car, but you can make an initial payment of only $1,200 and can afford monthly payments of at most $850. a. If the APR on auto loans is 12% and you finance the purchase over 48 months, what is the maximum price you can pay for the car? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. How much can you afford if you finance the purchase over 60 months? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
a. The maximum price you can pay for the car is $33,477.87.
b. The maximum price you can pay for the car is $39,411.78.
Explanation:
a. If the APR on auto loans is 12% and you finance the purchase over 48 months, what is the maximum price you can pay for the car? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
This can be determined as follows:
Calculation of the Present Value (PV) of the monthly payments
To calculate, the formula for calculating the present value of an ordinary annuity is used as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = Present value of the monthly payments = ?
P = Monthly payment = $850
r = monthly interest rate = annual percentage rate (APR) / 12 = 12% / 12 = 1%, or 0.01
n = number of months = 48
Substitute the values into equation (1) to have:
PV = $850 * ((1 - (1 / (1 + 0.01))^48) / 0.01)
PV = $850 * 37.9739594934803
PV = $32,277.87
Calculation of the maximum price you can pay for the car
Given in the question is initial payment of only $1,200.
The present value of the monthly payments calculated above is $32,277.87.
Therefore, we have:
Maximum price = Initial payment + Present value of the monthly payments = $1,200 + $32,277.87 = $33,477.87
Therefore, the maximum price you can pay for the car is $33,477.87.
b. How much can you afford if you finance the purchase over 60 months? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
This can also be determined as follows:
Calculation of the Present Value (PV) of the monthly payments
To calculate this, we use equation (1) in part (a) above, change number f months to 60 and proceed as follows:
PV = Present value of the monthly payments = ?
P = Monthly payment = $850
r = monthly interest rate = annual percentage rate (APR) / 12 = 12% / 12 = 1%, or 0.01
n = number of months = 60
Substitute the values into equation (1) to have:
PV = $850 * ((1 - (1 / (1 + 0.01))^60) / 0.01)
PV = $850 * 44.9550384062241
PV = $38,211.78
Calculation of the maximum price you can pay for the car
Given in the question is initial payment of only $1,200.
The present value of the monthly payments calculated above is $38,211.78.
Therefore, we have:
Maximum price = Initial payment + Present value of the monthly payments = $1,200 + $38,211.78 = $39,411.78
Therefore, the maximum price you can pay for the car is $39,411.78.
ABC Retail stocks and sells its own brand of personal computers. It costs the firm $600 each time it places an order with a manufacturer for computers. The cost of carrying one computer in inventory for one year is $225. The store manager estimates the total annual demand for computers will be 2,000 units with a constant demand rate throughout the year. ABCs policy is never to have stockout of the store brand TV. The store is open for business seven days per week from 9 AM to 6 PM. Determine the time between orders TBO (in working days)
Answer:
18 days
Explanation:
first we must determine the economic order quantity:
EOQ = √[(2 x S x D) / H]
S = order cost = $600D = annual demand = 2,000H = holding cost = $225EOQ = √[(2 x 600 x 2,000) / 225] = 103.28 units ≈ 103 units
total number of orders = 2,000 / 103 = 19.4175
Time between orders = working days per year / total number of orders = 365 / 19.4175 = 18.7975 days
since the company's policy is to never run out of stock, then we should round down the time between orders to 18 days. If we round up to 19 days (which is much closer actually), the risk of an stock out exists.
The stock of Wheel Corporation, a U.S. company, is publicly traded, with no single shareholder owning more than 5 percent of its outstanding stock. Wheel owns 90 percent of the outstanding stock of Axle, Inc, also a U.S. company. Axle owns 100% of the outstanding stock of Tire Corporation, a German company. Wheel and Tire each own 50 percent of the outstanding stock of Bumper, Inc., a U.S. company. Wheel and Axle each own 50 percent of the outstanding stock of Trunk Corporation, a U.S. company. Which of these corporations form an affiliated group eligible to file a consolidated tax return?
Answer: D)Wheel, Axle, and Trunk are an affiliated group.
Explanation:
Affiliated groups according to tax laws are those where a parent company owns at least 80% of the stock or the voting power in a company or in the case of multiple affiliates, the parent company must own at least 80% of one of the affiliates. This Affiliate should then own at least 80% of at least one of the others and so on.
Wheel owns 90% of Axle stock which would therefore make them affiliates. Axle then owns 100% of Tire which would then make Tire an affiliate to Axle and by extension to Wheel. Bumper is not considered an affiliate as it is only 50% owned by affiliates.
Which of the following activities is a way that retailers help to lower the cost
of distribution?
A. Combining shipments of products
B. Making the shopping environment fun
C. Teaching customers about products
D. Accepting many forms of payment
Answer:
combining shopmente6of prod6
Answer:A. Combining shipments of products
Explanation: Just had this and got it right
Required information
Use the following information below. [The following information applies to the questions displayed below.]
Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s records show the following selected accounts and amounts for the month of August.
Cash $ 25,460
Dividends $ 6,130
Accounts receivable 22,510
Consulting fees earned 27,130
Office supplies 5,380
Rent expense 9,690
Land 44,130
Salaries expense 5,710
Office equipment 20,160
Telephone expense 1,010
Accounts payable 10,370
Miscellaneous expenses 620
Common stock 103,300
Preparing a statement of retained earnings LO P3 Use the above information to prepare an August statement of retained earnings for Help Today. The Retained Earnings account balance at August 1 was $0. Hint: Net income for August is $10,100.
Answer:
Income Statement
Consulting fee earned $27,130
Total Revenue $27,130
Expenses
Rent expenses $9,690
Salaries expense $5,710
Telephone expenses $1,010
Miscellaneous Expenses $620
Total Expenses $17,030
Net Income $10,100
Retained Earning Statement
For the Month Ended August 31
Retained earning August 1 -
Net Income $10,100
$10,100
Dividend $6,130
Retained earning August 31 $3,970
A consumer products company found that % of successful products also received favorable results from test market research, whereas % had unfavorable results but nevertheless were successful. That is, P(successful product and favorable test market) and P(successful product and unfavorable test market). They also found that % of unsuccessful products had unfavorable research results, whereas % of them had favorable research results, that is P(unsuccessful product and unfavorable test market) and P(unsuccessful product and favorable test market). Find the probabilities of successful and unsuccessful products given known test market results, that is, P(successful product given favorable test market), P(successful product given unfavorable test market), P(unsuccessful product given favorable test market), and P(unsuccessful product given unfavorable test market).
Answer:
P(successful product given favorable test market) = 77.19%
P(successful product given unfavorable test market) = 22.81%
P(unsuccessful product given favorable test market) = 25.58%
P(unsuccessful product given unfavorable test market) = 74.42%
Explanation:
the information is incomplete since it is missing the numbers:
"A consumer products company found that 44% of successful products also received favorable results from test market research, whereas 13% had unfavorable results but nevertheless were successful. That is, P(successful product and favorable test market) = 0.44 and P(successful product and unfavorable test market) = 0.13. They also found that 32% of unsuccessful products had unfavorable research results, whereas 11% of them had favorable research results, that is P(unsuccessful product and unfavorable test market) = 0.32 and P(unsuccessful product and favorable test market) = 0.11."
probability of being successful and having favorable test market results = 44%
probability of being successful and having unfavorable test market results = 13%
probability of not being successful and having unfavorable test market results = 32%
probability of not being successful and having favorable test market results = 11%
probability of being successful = 44% + 13% = 57%
probability of not being successful = 32% + 11% = 43%
probability of being successful given favorable test market = 44% / 57% = 0.7719 = 77.19%
probability of being successful given unfavorable test market = 13% / 57% = 0.22819 = 22.81%
probability of not being successful given favorable test market = 11% / 43% = 0.2558 = 25.58%
probability of not being successful given unfavorable test market = 32% / 43% = 0.7442 = 74.42%
Colter Steel has $4,750,000 in assets. Temporary current assets $ 1,500,000 Permanent current assets 1,525,000 Fixed assets 1,725,000 Total assets $ 4,750,000 Assume the term structure of interest rates becomes inverted, with short-term rates going to 14 percent and long-term rates 6 percentage points lower than short-term rates. Earnings before interest and taxes are $1,010,000. The tax rate is 30 percent. If long-term financing is perfectly matched (synchronized) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be?
Answer:
$423,500
Explanation:
The computation of earnings after taxes is shown below:-
Interest cost = Long term rate × (Current assets + Fixed assets) + Short term rate × Temporary current assets
= 6% × ($1,525,000 + $1,725,000) + 14% × $1,500,000
= $405,000
So,
Earnings after taxes = (Earnings before interest and taxes - Interest cost) × (1 - Tax rate)
= ($1,010,000 - $405,000) × (1 - 30%)
= $423,500
Hence, for determining the earnings after tax we simply applied the above formula.
Indicate the financial statement on which each of the following items appears. Use I for income statement, E for statement of retained earnings, and B for balance sheet.a. Services Revenueb. Interest Payablec. Accounts Receivabled. Salaries Expensee. Equipmentf. Prepaid Insuranceg. Buildingsh. Rental Revenuei. Dividendsj. Office Suppliesk. Interest Expensel. Insurance Expense
Answer:
a. Services Revenue: I
b. Interest Payable: B
c. Accounts Receivable: B
d. Salaries Expense: I
e. Equipment: B
f. Prepaid Insurance: B
g. Buildings: B
h. Rental Revenue: I
i. Dividends: E
j. Office Supplies: B
k. Interest Expense: I
l. Insurance Expense: I
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
a. Services Revenue: Income statement.
b. Interest Payable: Balance sheet.
c. Accounts Receivable: Balance sheet.
d. Salaries Expense: Income statement.
e. Equipment: Balance sheet.
f. Prepaid Insurance: Balance sheet.
g. Buildings: Balance sheet.
h. Rental Revenue: Income statement.
i. Dividends: Statement of retained earnings.
j. Office Supplies: Balance sheet.
k. Interest Expense: Income statement.
l. Insurance Expense: Income statement.
Preparing Closing Procedures The adjusted trial balance of Parker Corporation, prepared December 31, 2018, contains the following selected accounts. Adjusted Account Balances Debit Credit Service fees revenue $92,500 Interest income 2,200 Salaries expense $41,800 Advertising expense 4,300 Depreciation expense 8,700 Income tax expense 9,900 Retained earnings 42,700 a. Prepare entries to close these accounts in journal entry form. General Journal Description Debit Credit 12/31 Answer Service fees revenue Answer 92,500 Answer 0 Answer Answer 2,200 Answer 0 Answer Retained earnings Answer 0 Answer 92,500 To close the revenue accounts. 12/31 Answer Salaries expense Answer 0 Answer 0 Answer Prepaid advertising Answer 0 Answer 0 Answer Answer 0 Answer 0 Answer Answer 0 Answer 0 Answer Answer 0 Answer 0 To close the expense accounts. b. Post the closing entries to the appropriate T-accounts and calculate the ending balances for each account. Retained Earnings Bal. 42,700 Answer 0 Answer 0 Bal. Answer 0 Answer 0 Service Fees Revenue Bal. 92,500 Answer 0 Answer 0 Bal. Answer 0 Answer 0 Interest Income Bal. 2,200 Answer 0 Answer 0 Bal. Answer 0 Answer 0 Salaries Expense Bal. 41,800 Answer 0 Answer 0 Bal. Answer 0 Answer 0 Advertising Expense Bal. 4,300 Answer 0 Answer 0 Bal. Answer 0 Answer 0 Depreciation Expense Bal. 8,700 Answer 0 Answer 0 Bal. Answer 0 Answer 0
Answer:
Parker Corporation
a) Closing Journal Entries:
General Journal
Description Debit Credit
12/31
Service fees revenue $92,500
Interest income 2,200
Retained earnings 42,700
Income Summary $137,400
To close credit items to the Income Summary.
Income Summary $64,700
Salaries expense $41,800
Advertising expense 4,300
Depreciation expense 8,700
Income tax expense 9,900
To close debit items to the Income Summary.
b. T-accounts:
Debit Credit
Service fees revenue
Adjusted balance $92,500
Income Summary $92,500
Balance $0
Interest income
Adjusted balance $2,200
Income Summary $2,200
Balance $0
Salaries expense
Adjusted balance $41,800
Income Summary $41,800
Balance $0
Advertising expense
Adjusted balance $4,300
Income Summary $4,300
Balance $0
Depreciation expense
Adjusted balance 8,700
Income Summary $8,700
Balance $0
Income tax expense
Adjusted balance 9,900
Income Summary $9,900
Balance $0
Retained earnings
Adjusted Balance 42,700
Income Summary $42,700
Balance $0
Explanation:
a) Data:
Parker Corporation
Adjusted Account Balances
Debit Credit
Service fees revenue $92,500
Interest income 2,200
Salaries expense $41,800
Advertising expense 4,300
Depreciation expense 8,700
Income tax expense 9,900
Retained earnings 42,700
The Nite Lite Factory produces two products - small lamps and desk lamps. It has two separate departments - finishing and production. The overhead budget for the finishing department is $550,000, using 500,000 direct labor hours. The overhead budget for the production department is $400,000 using 80,000 direct labor hours. If the budget estimates that a desk lamp will require 2 hours of finishing and 1 hour of production, how much factory overhead will be allocated to each unit of desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours
Answer:
$11.1
Explanation:
We can calculate the factory overhead allocated to a unit using multiple department factory overhead rate methods with an allocation base of direct labor hours. In this method, we will divide the te total overhead cost in direct labor hours consumed in that department.
Solution
Direct Labor Overhead rate for Finishing = $550,000/500,000
Direct Labor Overhead rate for Finishing = $1.10 per hour
Direct Labor Overhead rate for Production = $400,000/80,000
Direct Labor Overhead rate for Production = $5
Overhead for DeskLamps = (Direct labor hours in Finishing x Direct Labor Overhead rate for Finishing + Direct Labor hours in Production x Direct Labor Overhead rate for Production)
Overhead for DeskLamps= (1x$1.10 + 2x$5)
Overhead for DeskLamps= $11.1
The pollution prevention act 1990 established source reduction as the preferred approach to environmental protection
Answer:
True
Explanation:
The statement “The pollution prevention act 1990 established source reduction as the preferred approach to environmental protection” is true. Thus, option A is correct.
What is pollution?The entrance of hazardous substances into the environment is called pollution. pollution can be man-made or made by nature. like the pollution created by volcanoes, ash is natural pollution and the pollution made by burning some sort of chemical and plastic is man-made. Pollution has an adverse effect on living as well as nonliving things.
The pollution prevention act was launched in 1990 to make sure that the level of pollution that was made was to be reduced to a significant amount and various measures were taken to ensure the same as installing air and water filters, bans on various things, etc. Therefore, option A is the correct option.
Learn more about pollution, here:
https://brainly.com/question/15708835
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The question is incomplete, the complete question is :
The pollination prevention Act 1990 established source reduction as the preferred approach to environmental protection.
A) True
B) False
Barry Company has a calendar year-end. On December 15, Year 1, a customer was injured using a product manufactured by Barry. That customer files a lawsuit against Barry on January 15, Year 2. On February 15, Year 2, Barry’s attorney advises Barry to settle the claim for $100,000 because a loss in that amount is probable and material. Barry has not yet distributed its Year 1 financial statements. What must Barry do with regards to those financial statements?
Answer:
Record the loss contingency in the December 31, Year 1, balance sheet and also disclose the lawsuit in the footnotes.
Explanation:
Since the loss is both probable and material, then it must be recorded as a liability in the balance sheet. This is a loss contingency, and depending on whether the probability of occurrence is probable, possible or not possible, and the amount can be determined, then it will be recorded in the balance sheet, included in the footnotes or not considered.
Since the loss is probable and it can be quantified, plus the incident occurred during last year, then the loss contingency must be included as a liability. The company should also disclose the lawsuit in the footnotes.
Gale Corporation manufactures windsocks. The business recently decided to adopt an ABC system. The following activities have been identified: Activity Cost Driver Chosen as Allocation Base Conversion Cost Per Unit of Allocation Base Materials handling Number of parts $1.00 Machining Machine hours 60.00 Packaging Number of finished units 2.00 EaEach windsock requires three parts and spends five minutes in the machining department. The total cost of direct materials and direct labor is $3.50 per windsock. Gale produces 20,000 windsocks each year and sells them at 140% of cost. 7. The total cost of producing the 20,000 windsocks is: A. $160,000. B. $230,000. C. $270,000. D. $1,260,000.
Answer:
$270,000
Explanation:
The first step is to calculate the overhead cost of the material handling parts
Since each wind stock require 3 parts then the overhead cost can be calculated as follows
= 3 × 20,000
= 60,000
The overhead cost of machining hours can be calculated as follows
Since 5 minutes is spent in the machining department then overhead cost is
= 5× 20,000
= 100,000
The overhead cost of packaging number of finished units can be calculated as follows
= 2 × 20,000
= 40,000
Total overhead cost= 100,000 + 60,000 + 40,000
= 200,000
The total cost of direct materials and labor can be calculated as follows
= 3.5 × 20,000
= 70,000
Therefore the total cost of producing 20,000 windstocks is
= Total overhead cost + total cost of direct materials and labor
= 200,000 + 70,000
= $270,000
Hence the total cost of producing 20,000 windstocks is $270,000
The content of your e-mails and memos will vary, but direct internal messages contain four main parts. Therefore, it is important to familiarize yourself with these four parts.
Identify the parts of the e-mail message indicated by the bracketed numbers.
To: Ellen Stanford
From: Thomas Gregory
[1] Proposed Agenda for November 6 Meeting Dear Ms. Stanford
[2] Please review the following agenda for our next shareholder meeting and recommend any changes.
[3] Rising stock prices
Discussion of new investors Portfolios and new funding Introduction of new vice-president
[4] Please send any changes to the agenda to me by 3:00 p.m., November 3 Many thanks, Thomas Thomas Gregory Financial Analyst Office: 854.454.4356 Fax: 435.458.9738 Cell: 834.435.8490
Which part of the e-mail is part [1]?
a. Subject line Opening with main idea
b. Explaining in the body
Which part of the e-mail is part [2]?
a. Explaining in the body Closing with a purpose
b. Opening with main idea
Which part of the e-mail is part [3]?
a. Explaining in the body Closing with a purpose
b. Subject line
Answer:
Four Main Parts of Email Message:
1. a. Subject line Opening with main idea
2. b. Opening with main idea
3. Explaining in the body Closing with a purpose
Explanation:
The main parts of an email include the Subject line with sender's and receiver's identities, and date. The subject line is followed by the opening introduction of the chief idea. After the introduction opening is the body of the email, which give more details about the message. The last is the closing remarks and any other desired information.
After reading this chapter, it isn't surprising that you're becoming an investment wizard. With your newfound expertise, you purchase 100 shares of KSU Corporation for $31.17 per share. Assume the price goes up to $40.07 per share over the next 12 months and you receive a qualified dividend of $0.41 per share. What would be your total return on your KSU Corporation investment? Assuming you continue to hold the stock, calculate your after-tax return. How is your realized after-tax return different if you sell the stock? In both cases assume you are in the 25 percent federal marginal tax bracket and 15 percent long-term capital gains and qualified dividends tax bracket and there is no state income tax on investment income.
Answer:
before-tax 29.87%
after-tax 26.37%
Explanation:
The return will be the capital gain and the dividend gain.
capital gain: ending market price - purchase price
$ 40.07 - $ 31.17 = $ 8.90
dividend gain: $0.41
total return: $8.90 + $0.41 = $9.31
investment: $ 31.17
rate of return before-tax: 9.31 / 31.17 = 0,29868 = 29.87%
return after tax:
dividends 0.41 x ( 1 - 0.25) = 0.3075
capital gain: (as we hold the share we can use long.term capital gain rate
9.31 x ( 1 - 0.15) = 7,9135
total return: 7.9135 + 0.3075 = 8.221
rate of return after-tax 8.221 / 31.17 = 0,2637471928136 = 26.37%
A company pays each of its two office employees each Friday at the rate of $100 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is: Multiple Choice Debit Unpaid Salaries $600 and credit Salaries Payable $600. Debit Salaries Expense $600 and credit Salaries Payable $600. Debit Salaries Expense $400 and credit Cash $400. Debit Salaries Payable $400 and credit Salaries Expense $400. Debit Salaries Expense $400 and credit Salaries Payable $400.
Answer:
Debit Salaries Expense $400 and Credit Salaries payable $400.
Explanation:
Consider, we are told the company pays each of its two office employees, meaning, the 2 employees combine will earn $200 a day .
Furthermore, we are told that even though the monthly accounting period ends on Tuesday the two employees work on Monday and Tuesday, meaning, the adjusting entry to record at the month-end will be a summation of the amount earned by the two employees on the two days. That is, = $200 × 2 days = $400 (which is a salary expense).
Therefore, going by the rule of double-entry, we are obliged to debit salaries expense account and credit salaries payable account.
An income statement for Alexander's Bookstore for the second quarter of the year is presented below: Alexander's Bookstore Income Statement For Quarter Ended June 30 Sales $ 1,000,000 Cost of goods sold 665,000 Gross margin 335,000 Selling and administrative expenses Selling $ 107,000 Administration 118,000 225,000 Net operating income $ 110,000 On average, a book sells for $50. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed. The contribution margin for Alexander's Bookstore for the second quarter is:
Answer:
Contribution margin= $225,000
Explanation:
Giving the following information:
Sales $ 1,000,000
Cost of goods sold 665,000
On average, a book sells for $50.
Variable selling expenses are $4 per book
The variable administrative expenses are 3% of sales
First, we need to calculate the number of units sold:
Units sold= 1,000,000/50= 20,000 units
Now, the total contribution margin:
Sales= 1,000,000
Cost of goods sold= (665,000)
Variable selling expenses= 4*20,000= (80,000)
Variable administrative expenses= (1,000,000*0.03)= 30,000
Contribution margin= $225,000
During the first year of operations, a company sold $118,000 of goods to customers and received $99,000 in cash from customers. The remainder is owed to the company at the end of the year. The company incurred $71,800 in expenses for the year and paid $66,800 in cash for these expenses. The remainder is owed by the company at the end of the year. Based on this information, what is the amount of net income for the year?
Answer:
Net income = $46,200
Explanation:
In this scenario the company is using accrual method of accounting where some revenue is recieved in cash and the others are accounts receivable. Expenses are also paid paid partly in cash and the remaining is accounts payable.
Revenues and expenses however are recorded when they are earned or incurred.
The company earned revenue of $118,000, $99,000 is in cash and the rest is accounts receivable.
They also had expenses of $71,800 incurred with $66,800 paid in cash and the rest is accounts payable.
The net income will be revenue earned less expenses incurred.
Net income = 118,000 - 71,800
Net income = $46,200
Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice (net of the associated for AGI self-employment tax deduction). Assume that Roquan pays $40,000 in wages to his employees, has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $100,000. (Leave no answer blank. Enter zero if applicable.) Required: Calculate Roquan’s deduction for qualified business income. Assume the same facts provided above, except Roquan’s taxable income before the deduction for qualified business income is $300,000.
Answer:
a) Calculate Roquan’s deduction for qualified business income.
qualified business deduction:
20% of qualified business income AND less than 20% of total incomeSince Roquan is a single filer, his AGI cannot exceed $213,300.Roquan's QBI deduction = 20% x QBI = 20% x $90,000 = $18,000
b) Since Roquan's income is higher than $213,300, then he is not allowed any QBI deduction.
Which of the following is a characteristic of a non-profit organization?
a. They pay taxes
b. Generate revenue through donations
c. Are in business to make a profit
d. Sell products at competitive prices to make the most money possible
Answer:
b. Generate revenue through donations
114.8Magnolia Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 20,200 actual direct labor-hours and incurred $142,500 of actual manufacturing overhead cost. They had estimated at the beginning of the year that 17,600 direct labor-hours would be worked and $140,800 of manufacturing overhead costs incurred. The Corporation had calculated a predetermined overhead rate of $8 per direct labor-hour. The Corporation's manufacturing overhead for the year was: Multiple Choice overapplied by $1,700 underapplied by $19,100 underapplied by $1,700 overapplied by $19,100
Answer:
overapplied by $19,100
Explanation:
The calculation of manufacturing overhead for the year is shown below:-
Manufacturing overhead cost applied = Actual direct labor hours × Predetermined overhead rate
= 20,200 × $8
= $161,600
Manufacturing overhead for the year = Actual overhead - Applied overhead
= $142,500 - $161,600
= $19,100 overapplied
So, for determining the manufacturing overhead for the year we simply applied the above formula.
Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year For the current yea 2,000 $5 Purchase, March 21 Purchase, August 1 5,000 3,000 4,000 Inventory, Decmber 31, current year
Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods
FIFO LIFO Average Cost
Ending inventory
Cost of goods sold
Answer and Explanation:
The computation is shown below:-
Units sold = Opening balance + Purchase in march + Purchase in August - Closing balance
= 2,000 + 5,000 + 3,000 - 4,000
= 6,000
1. FIFO method:
So total cost of goods sold is (2000 × $5) + (4,000 × $6)
= $34,000
Ending inventory value is
= (1000 × 6) + (3000 × $8)
= $30,000
2. LIFO method:
Total value of goods sold is
= (3,000 × $8) + (3,000 × $6)
= $42,000
Ending inventory value is
(2,000 × 6) + (2000 × $5)
= $22,000
3. Average cost of inventory
Opening inventory + Purchase on Mar.21 + Purchase on Aug.1
(2,000 × $5) + (5000 × $6) + (3000 × 8)
= $64,000.
Total units is
= 2,000 + 5,000 + 3,000
= 10,000
Average cost is
= $64,000 ÷ 10,000
= $6.40 per units.
Now,
Cost of goods sold is 6,000 × $6.40
= $38,400
Ending Inventory value is
= 4,000 × $6.40
= $25,600
The computation of the ending inventory and the cost of goods sold for the year under the three inventory costing methods is as follows:
FIFO LIFO WEIGHTED-AVERAGE
Ending inventory $22,000 $27,000 $24,400
Cost of goods sold $39,000 $34,000 $36,600
Data and Calculations:
Units Unit Cost Total Costs
December 31, Inventory 2,000 $5 $10,000
March 21 Purchase 5,000 $6 $30,000
March 21 Purchase 3,000 $8 $21,000
Total 10,000 $61,000
Average cost per unit = $6.10 ($61,000/10,000)
December 31, Inventory 4,000
Units sold = 6,000 (10,000 - 4,000) units
FIFO:
Ending inventory = $22,000 (2,000 x $6 + 2,000 x $5)
Cost of goods sold = $39,000 ($61,000 - $22,000)
LIFO:
Ending inventory = $27,000 (1,000 x $6 + 3,000 x $8)
Cost of goods sold = $34,000 ($61,000 - $27,000)
Weighted Average:
Ending inventory = $24,400 (4,000 x $6.10)
Cost of goods sold = $36,600 (6,000 x $6.10)
Learn more: https://brainly.com/question/14121444
hich of the following statements is true? The denominator used in computing earnings per share represents the shares of common stock outstanding on the last day of the accounting period. Net income is not adjusted when computing earnings per share. Earnings per share is an internal measure and is not used by stockholders. By comparing earnings per share of a single corporation over time, a stockholder can evaluate the corporation’s relative earnings performance.
Answer:
By comparing earnings per share of a single corporation over time, a stockholder can evaluate the corporation’s relative earnings performance.
Explanation:
Earnings per share are often part of a corporation's financial statement. Since the shareholder of the corporation usually has a share or interest in the performance of the companythe relative earnings performance of the corporation can be estimated by comparing the earnings per share of the corporation over time.so correct answer is By comparing earnings per share of a single corporation over time, a stockholder can evaluate the corporation’s relative earnings performance.One way consumers can evaluate alternatives is to identify important attributes and assess how purchase alternatives perform on those attributes. Consider the purchase of a tablet. Each attribute is given a weight to reflect its level of importance to that consumer. Then the consumer evaluates each alternative on each attribute (higher ratings indicate higher performance). A score can be calculated for each brand by multiplying the importance weight for each attribute by the brand's score on that attribute. These weighted scores are then summed to determine the score for that brand. Calculate the weighted scores for all brands. Which brand would this consumer likely choose? Which brand is this consumer least likely to purchase?
Answer:
1. Calculate the weighted scores for all brands.
Brand A score = (0.3 * 5) + (0.2 * 2) + (0.2 * 4) + (0.3 * 7)
= 4.8
Brand B score = (0.3 * 3) + (0.2 * 4) + (0.2 * 2) + (0.3 * 7)
= 4.2
Brand C score = (0.3 * 6) + (0.2 * 2) + (0.2 * 7) + (0.3 * 3)
= 4.5
2. Which brand would this consumer likely choose? Brand A
With the highest rating of 4.8, Brand A has the highest score and so will most likely be chosen.
3. Which brand is this consumer least likely to purchase? Brand B
With the lowest rating of 4.2, Brand B will be the least likely to be purchased.
Lloyd Inc. has sales of $600,000, a net income of $60,000, and the following balance sheet: Cash $145,800 Accounts payable $192,780 Receivables 230,040 Notes payable to bank 108,540 Inventories 891,000 Total current liabilities $301,320 Total current assets $1,266,840 Long-term debt 270,540 Net fixed assets 353,160 Common equity 1,048,140 Total assets $1,620,000 Total liabilities and equity $1,620,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2x); if the funds generated are used to reduce common equity (stock can be repurchased at book value); and if no other changes occur, by how much will the ROE change? Do not round intermediate calculations. Round your answer to two decimal places. % What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places. x
Answer:
The new quick ratio is 4.6
Explanation:
Current ratio = Current assets / Current liabilities
2 = (Cash + receivables + inventories) / (Accounts payable + other current liabilities
2 = ($145,800 + $230,040 + inventories ) / $192,780
2 = $375,840 + inventories / $192,780
$385,560 = $375,840 + inventories
Inventories = $385,560 - $375,840
Inventories = $9,720
This means that inventories worth of $881,280 [ $891,000 -$9,720] were sold.
Also, if the funds so gained are used to reduce common equity, meaning buying back the equity at book value, hence common equity is $166,860 [ $1,048,140 - $881,280]
ROE before selling off the inventory = Net income / Stockholder's equity
= $60,000 / $1,048,140
= 0.057 or 5.7%
ROE after selling off the inventory = Net income / Stockholder's equity
= $60,000 / $166,860
= 0.40 or 40%
The firm's new quick ratio
= [ Current assets - inventories] / Current liabilities
= [$1,266,840 - $9,720] / $270,540
= $1,257,140 / $270,540
= 4.6
When an accelerated depreciation method is used to calculate depreciation expense: Multiple Choice the accumulated depreciation account balance will increase by a larger amount in the last half of an asset's life than if straight-line depreciation is used. the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used. the net book value of the asset at the end of its useful life will be less than if straight-line depreciation is used. depreciation expense will be less in the early years of the asset's life than if straight-line depreciation is used.
Answer:
the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used.
Explanation:
Let me use an example to illustrate this.
An asset has a useful life of 4 years. It costs $1000. It has a salvage value of 0
If the straight line depreciation method is used , the depreciation expense every year = $1000/ 4 = $250
The net book value halfway through its useful life = $1000 - ($250 x 2) = $500
If double declining method is used, the depreciation expense in the first year would be = 2/4 x $1000 = $500
The net book value at the beginning of year 2 = $1000 - $500 = $500
Depreciation expense in year 2 = 2/4 x $500 = $250
The net book value at the beginning of year 3 = $500 - $250 = $250
We can see that the net book value halfway through the useful is lower when double declining depreciation method is used
