Answer:
Equivalent Units Materials 315,000 Conversion 310,000
Cost PEr EUP Materials =$ 4.0507 Conversion= $ 28.975
Ending Work In Process Costs = $ 357993.28
Units Transferred Costs = $ 9376,818.4
Explanation:
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
BWIP 25,000 60% 40% 15000 10000
+Units started 300,000 300,000 300,000
Equivalent Units 315,000 310,000
Costs Materials Conversion
Beginning work in process inventory $44,800 $15,300
Added during the month 1'231,200 896,7001
Total Costs 1276,000 898 2301
EUP 315,000 310,000
Cost PEr EUP 1276,000 / 315,000 898 2301/310,000
=$ 4.0507 = $ 28.975
Ending Work In Process Costs = $ 357993.28
Materials (30,000* 80% ) = 24000*$ 4.0507= $ 97216.8
Conversion (30,000* 30%) = 9000*$ 28.975= $ 260,776.48
Multiplying it with the EUP to get the costs.
Units Transferred Costs = $ 9376,818.4
Materials (315,000 -30,000 ) = 312000*$ 4.0507= $ 1263,818.4
Conversion (310,000-30,000) = 280,000*$ 28.975= $ 8113,000
In weighted average methhod the number of equivalent units is obtained by adding the ending inventory to the units transferred or the BWIP inv to the units started.
Imagine there are two series of science-fictions: The Three-Body Problem (T) and Galactic Empires (G). Your utility function is U = TG, where T is the number of books you consume for The Three-Body Problem, and G is the number of books you consume for Galactic Empires. If your budget is $200, the price of each book of The Three-Body Problem (T) is $50, and the price of each book of Galactic Empires (G) is $100, how many books of The Three-Body Problem (T) will you consume?
Answer:
2 books
Explanation:
your utility function is:
F(U) = TG
In order to maximize your utility you must at least buy 1 book of the Three-Body Problem (T) and 1 book of the Galactic Empires (G). The constraint here is that both T and G must be ≥ 1. Since your budget is only $200, the maximum number of G books that you can buy is 1, or you wouldn't have any money left to buy T books.
So you purchase 1 G book and you have $100 left which you can use to purchase 2 T books.
List the three types of résumé formats.
Answer:
Chronological: Classic format that lists your work experience in order, starting with the most recent.
Functional: Emphasizes qualifications and accomplishments instead of specific jobs, but isn’t recommended.
Hybrid: Modern format where skills and highlights go at the top before a detailed work history.
Explanation: brainliest pls
A single-page summary of relevant background and work experience with all credentials and publications pertinent to the job a candidate is applying for is called a resume.
The common resume formats are:
FunctionalChronologicalCombinationFunctional: It emphasizes professional skills rather than the job duration and period in which a person was engaged.
It focuses on skillfulness and proficiency over your work account and is commonly a skill-based format.
Chronological: In this type of format your work experience and educational information are listed in the reverse order that is from the most to least recent.
Combination: It is a combination of both functional and chronological resumes and summarizes the professional as well as the skills. The resume consists of skills mentioned before the work experience.
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Tri Fecta, a partnership, had revenues of $378,000 in its first year of operations. The partnership has not collected on $47,000 of its sales and still owes $38,700 on $235,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $28,100 in salaries. The partners invested $47,000 in the business and $26,000 was borrowed on a five-year note. The partnership paid $2,600 in interest that was the amount owed for the year and paid $8,900 for a two-year insurance policy on the first day of business. Ignore income taxes. Compute the cash balance at the end of the first year for Tri Fecta.
a) $332,110.b) $161,640.c) $166,290.d) $155,440.
Answer: $168,000
Explanation:
Cash balance at the end of the year = Cash Inflows - Cash outflows
Cash Outflows
= (Merchandise purchased - Account payables) + Salaries + Interest + Insurance
= (235,000 - 38,700) + 28,100 + 2,600 + 8,900
= $235,900
Cash Inflows
= (Sales - Accounts receivables) + Investment by partners + Amount borrowed
= (378,000 - 47,000) + 47,000 + 26,000
= $404,000
Cash Balance = $168,000
Note: The options are most probably for a similar question.
Larry Nelson holds 1,000 shares of General Electric common stock. As a shareholder, he has the right to be involved in the election of its directors. These directors are responsible for managing the company and achieving the company’s objectives. True or False: The preemptive right allows Larry to purchase any additional shares sold by the company. This right will protect Larry from dilution in the value of the shares he holds.
Answer:
True
Explanation:
If GE's corporate charter includes preemptive rights provisions, then they will give current stockholders the right to purchase more stocks (in case the company issues more stocks) before any outside investors.
But not all corporations' charters include preemptive rights provisions, generally they do not. Preemptive rights are a way of protecting current stockholders from stock dilution in case the corporations decides to issue new stocks.
For each separate case, record an adjusting entry (if necessary). Barga Company purchases $32,000 of equipment on January 1. The equipment is expected to last five years and be worth $4,400 at the end of that time. Welch Company purchases $11,200 of land on January 1. The land is expected to last forever. Prepare the entries to record one year’s depreciation expense of $5,520 for the equipment and what depreciation adjustment, if any, should be made with respect to the Land account as of December 31? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Equipment can be depreciated and the journal entry would be:
December 31, 202x, depreciation expense
Dr Depreciation expense 5,520
Cr Accumulated depreciation - equipment 5,520
Accumulated depreciation is a contra asset account that decreases the net value of a fixed asset.
On the other hand, land cannot be depreciated. Land must always be reported at its historical cost (purchase price) even if its fair market value increases or decreases over time.
In emerging markets, consumer incomes and buying power are
decreasing
stable
fluctuating
increasing
Answer:increasing
Explanation:just took a quiz and got it correct
In emerging markets, consumer incomes and buying power are increasing. Thus, option D is correct.
After taxes, consumer income is the amount that can be deducted. It may also be characterized as a gain of wealth, particularly as a result of labor or investment. Individual income is referred to as personal income. Net income is what remains after all deductible taxes have been taken out.
If a consumer's income rose and the company sold typical things, business would likely grow. The firm will see a decline if a consumer's income drops. The converse is true if the company sells subpar items, like a cheap shop.
Therefore, option D is the ideal selection.
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Will leaving the country make an American businessman immune to U.S. laws?
Answer:
No, one of the characteristics of a sovereign state is that a citizen is subject to the state's laws even when beyond national borders.
Please give the Brainliest answer!!!
Custom Homebuilders (CH) designs and constructs high-end homes on large lots owned by customers. CH has developed several formulas, which it uses to quote jobs. These include costs for materials, labor, and other costs. These estimates are also dependent on the region of the country a particular customer lives. The following are the cost estimates for one region in the Midwest. Administrative costs $ 20,000 Building costs – per square foot (basic) $ 90 Building costs – per square foot (moderate) $ 150 Building costs – per square foot (luxury) $ 225 Appliances (basic) $ 15,000 Appliances (moderate) $ 25,000 Appliances (luxury) $ 45,000 Utilities costs (if required) $ 40,000 Required: A customer has expressed interest in having CH build a moderate, 3,000 square-foot home on a vacant lot, which does not have utilities. Based on the engineering estimates above, what will such a house cost to build?
Answer:
$495,000
Explanation:
Based on the engineering estimates above cost to build such a house can be calculated by just adding the cost incurring in building the house as a moderate house.
The cost of a moderate 3000 square foot house
Administrative Cost = 20,000
Building Cost (150x3000) = 450,000
Appliances = 25,000
Utilities Cost = NIL
Total Cost = 495,000
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
1. Pay $1,210,000 in cash immediately.
2. Pay $471,000 immediately and the remainder in 10 annual installments of $95,000, with the first installment due in one year.
3. Make 10 annual installments of $157,000 with the first payment due immediately.
4. Make one lump-sum payment of $1,740,000 five years from date of purchase.
Required:
Determine the best alternative for Harding, assuming that Harding can borrow funds at a 7% interest rate. (Round your final answers to nearest whole dollar amount.)
Answer:
The best alternative is alternative 2.
PV = $1138240.246 rounded off to $1138240
Explanation:
To determine the best alternative, we need to find the present value of each alternative and the alternative with the lowest present value will be the best one.
To calculate the present value of a single sum, we will use the normal present value formula,
PV = Future Value / (1+r)^t
Where,
r is the discount ratet is the time in periodsTo calculate the present value of alternative with equal payments over a period of time with same intervals, we will use the present value of annuity formula which is attached.
The present value of alternative 1 is already known.
The present value of alternative 2 will be calculated using the present value of annuity ordinary formula as the payments of 95000 are made at the end of each period.
PV = 471000 + 95000 * [( 1 - (1+0.07)^-10) / 0.07]
PV = $1138240.246 rounded off to $1138240
The present value of alternative 3 will be calculated using the present value of annuity due formula as the payments of 157000 are made at the start of each period.
PV = 157000 * [( 1 - (1+0.07)^-10) / 0.07] * (1+0.07)
PV = $1179891.463 rounded off to $1179891
The present value of alternative 4 will be calculated using the present value
of the sum formula,
PV = 1740000 / (1+0.07)^5
PV = $1240595.952 rounded off to $1240596
The best alternative is alternative 2.
Below is an incomplete contribution margin income statement for Barry's Coffee Cakes. Use this information to answer the following questions. BARRY'S COFFEE CAKES Contribution Margin Income Statement 20,000 units 25,000 units Total Total Per Unit Percents of Sales Sales revenue $ 150,000 Less: Variable costs 50,000 Contribution margin 100,000 Less: Fixed costs 30,000 Net operating income $ 70,000 Knowledge Check 01 What is the unit contribution margin
Answer:
Results are below.
Explanation:
Giving the following information:
Units sold: 20,000 or 25,000 is not clear.
Sales revenue $ 150,000
Less: Variable costs 50,000
Contribution margin 100,000
To calculate the unitary contribution margin, we need to use the following formula:
Unitary contribution margin= total contribution margin / number of untis
For 20,000 units:
Unitary contribution margin= 100,000/20,000= $5
For 25,000 units:
Unitary contribution margin= 100,000/25,000= $4
Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a building at a cost of $1,160,000 that is currently appraised at $1,360,000. The equipment originally cost $640,000 and is currently valued at $387,000. The inventory is valued on the balance sheet at $330,000 but has a market value of only one-half of that amount. The owner expects to collect 97 percent of the $185,200 in accounts receivable. The firm has $11,500 in cash and owes a total of $1,360,000. The legal problems are personal and unrelated to the actual business. What is the market value of this firm?
Answer:
Market Value = $743,144
Explanation:
Market Value of firm = The Market value of assets - Market value of liabilities
Particulars Cost Market value
Assets
Building $1,160,000 $1,360,000
Equipment $640,000 $387,000
Inventory $330,000 $165,000
Cash $185,000 $179,644
Account receivables $11,500 $11,500
Total Assets $2,103,144
Debt ($1,360,000) ($1,360,000)
Market Value $743,144
The following transactions are July activities of Craig's Bowling, Inc., which operate several centers (for game and equipment sales).
A. Bennett’s provided to customers bowling merchandise inventory costing Bennett’s $5,790. [Consider only the effect on cost of goods sold [expense] here. Do not consider sales revenue for this question.]
B. Bennett’s paid $3,600 on the electricity bill for June (recorded as an expense in June).
C. Bennett’s paid $3,400 to employees for work in July.
D. Bennett’s purchased $2,400 in insurance for coverage from August 1 to November 1.
E. Bennett’s paid $1,500 to plumbers for repairing a broken pipe in the restrooms.
F. Bennett’s received the July electricity bill for $3,500 to be paid in August.
If expense is not recognized in July, choose none for the account and enter $0 for the amount. If expense is to be recognized in July, indicate the revenue account title and amount.
Answer:
A. Bennett’s provided to customers bowling merchandise inventory costing Bennett’s $5,790.
Dr Cost of goods sold 5,790
Cr Merchandise inventory 5,790
B. Bennett’s paid $3,600 on the electricity bill for June (recorded as an expense in June).
NOT RECOGNIZED AS A JULY EXPENSE
(It has already been recognized as an expense in June)
C. Bennett’s paid $3,400 to employees for work in July.
Dr Wages expense 3,400
Cr Cash 3,400
D. Bennett’s purchased $2,400 in insurance for coverage from August 1 to November 1.
NOT RECOGNIZED AS A JULY EXPENSE
(This is an asset account, prepaid insurance, and it will be recognized as an expense during the months of August, September, October and November).
E. Bennett’s paid $1,500 to plumbers for repairing a broken pipe in the restrooms.
Dr Maintenance expense 1,500
Cr Cash 1,500
F. Bennett’s received the July electricity bill for $3,500 to be paid in August.
Dr Utilities expense (electricity) 3,500
Cr Accounts payable 3,500
Rowland & Sons Air Transport Service, Inc., has been in operation for three years. The following transactions occurred in February:
Feb. 1 Paid $500 for rent of hangar space in February.
Feb. 4 Received customer payment of $1,510 to ship several items to Philadelphia next month.
Feb. 7 Flew cargo from Denver to Dallas; the customer paid in full ($1,410 cash).
Feb. 10 Incurred and paid $1,500 in pilot wages for flying in February.
Feb. 14 Paid $116 for an advertisement run in the local paper on February 14.
Feb. 18 Flew cargo for two customers from Dallas to Albuquerque for $2,130; one customer paid $860 cash and the other asked to be billed $1,270.
Feb. 25 Purchased on account $1,755 in supplies for future use on the planes.
Required:Prepare accrual basis journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
Entries are given below
Explanation:
Accrual basis journal entries for each transaction are given below according to their dates. As we all know expenses and assets are recorded on the debit side and liabilities and capital are recorded on the credit side.
Feb 1
DEBIT CREDIT
Rent expense 500
Cash 500
Feb 4
DEBIT CREDIT
Cash 1510
Unearned Revenue 1510
Feb 7
DEBIT CREDIT
Cash 1410
Service Revenue 1410
Feb 10
DEBIT CREDIT
Wages 1500
Cash 1500
Feb 14
DEBIT CREDIT
Advertisement Expense 116
Cash 116
Feb 18
DEBIT CREDIT
Cash 860
Receivable 1270
Service revenue 2130
Feb 25
DEBIT CREDIT
Supplies 1755
Cash 1755
Which of the following is not a related party transaction? a) Acme Corporation leases office space to Norton Company. Mr. and Mrs. Norton own Norton Company and 65% of Acme Corporation's stock. b) BBD Inc. licenses a patent from Nugo Inc., which owns 82% of BBD's outstanding stock. c) Beth Teal pays $15,000 a year to her gardener, Ben. Beth is Ben's grandmother. d) All the transactions are between related parties.
Answer:
c) Beth Teal pays $15,000 a year to her gardener, Ben. Beth is Ben's grandmother.
Explanation:
A related party transaction is any business transaction that takes place between entities that share some type of common interest, e.g. a parent company leasing a factory to one of its subsidiaries. They are legal, but the potential for conflicts of interest exist. Following the example, if the lease price is higher than fair market price, then the transaction could be considered fraudulent. The SEC requires that publicly traded corporations disclose all related party transactions.
Suppose your employer offers you a choice between a bonus and shares of the company's stock. Whichever one you choose will be awarded today. The stock is currently trading at per share. a. If you receive the stock bonus and you are free to trade it, which form of the bonus should you choose? What is its value? b. If you receive the stock bonus and you are required to hold it for at least one year, what can you say about the value of the stock bonus now? What will your decision depend on?
Answer:
the question in incomplete:
Suppose your employer offers you a choice between a $5000 bonus and 100 shares of the company stock. Whichever one you choose will be awarded today. The stock is currently trading for $63 per share.
a. If you receive the stock bonus and you are free to trade it, which form of the bonus should you choose? What is its value?
the value of the stock bonus is $6,300 while the cash bonus is only worth $5,000, therefore, I would choose the stock bonus.b. If you receive the stock bonus and you are required to hold it for at least one year, what can you say about the value of the stock bonus now? What will your decision depend on?
if you could sell the stocks today, then the stock bonus would be worth $6,300 but in one year, who knows. Since you work at the company you will be in a very good position to determine if the stock is priced correctly and how the price might change in 1 year. On the other hand, if you really need the money now, and you are not so sure about the future stock price, then the cash bonus might be better. Since the information is limited, I cannot tell which scenario would be best, because it depends on several variables.Problem 13-3 Output from a process contains 0.02 proportion of defective units. Defective units that go undetected into final assemblies cost $25 each to replace. An inspection process, which would detect and remove all defectives, can be established to test these units. The inspector, who can test 20 units per hour (which matches the current production rate), would be paid $8 per hour, including fringe benefits. Assume that the line will operate at the same rate (i.e., the current production rate) regardless of whether or not the inspection operation is added. a-1. Without the inspector, what is the current hourly cost of defects
Answer:
4 per hour
Explanation:
The computation of the current hourly cost of defect is shown below:
= Defective average × cost of inspector × replacement cost
where,
The Defective average is 0.02
The Cost of the inspector is $8
And, the replacement cost is $25
Now placing these values to the above formula
So, the current hourly defective cost is
= 0.02 × $8 × $25
= 4 per hour
Suppose the following are data for a given year from the annual Economic Report of the President. Calculate GDP using the Expenditure approach. Amount Corporate profits $ 305 Capital consumption allowance 479 Gross private domestic investment 716 Personal taxes 565 Personal saving 120 Government purchases 924 Imports 547 Net Interest 179 Rental Income 19 Exports 427 Personal consumption expenditures 2,966 Dividends 87 Indirect business taxes 370 Contributions for Social Security (FICA) 394 Transfer payments 543
Answer:
4,486
Explanation:
The computation of GDP using the Expenditure approach is shown below:-
GDP using Expenditure Approach = Gross Private Domestic Investment + Govt. Purchases + (Exports - Imports) + Personal Consumption Expenditure
= 716 + 924 + (427 - 547) + 2966
= 4606 - 120
= 4,486
Therefore for computing the GDP using the Expenditure approach we simply applied the above formula.
Dake Corporation's relevant range of activity is 4,500 units to 8,500 units. When it produces and sells 6,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.40 Direct labor $ 3.50 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 2.20 Fixed selling expense $ 0.90 Fixed administrative expense $ 0.60 Sales commissions $ 0.70 Variable administrative expense $ 0.60 For financial reporting purposes, the total amount of product costs incurred to make 6,500 units is closest to:
Answer:
Product costs= $77,350
Explanation:
The product costs are those incurred directly into production. In this case, it is for financial purposes, therefore we take into account the variable costs. If it were for accounting purposes, it can incorporate the fixed overhead.
Product costs= direct material + direct labor + variable overhead
Product costs= 6,500*(6.4 + 3.5 + 2)
Product costs= $77,350
Write different defination of Business?
Answer:
Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit. It does not mean it is a company, a corporation, partnership, or have any such formal organization, but it can range from a street peddler to General Motors."
Explanation:
I looked in wiki
Answer:
A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. ... The term "business" also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.
Explanation:
Fortune magazine ran an article titled "New Ethics or No Ethics? Questionable Behavior Is Silicon Valley's Next Big Thing," which recounts stories of Internet companies that aggressively inflate their revenues, delay the recognition of expenses, and report sales that are not exactly sales. In many cases, the actions of these companies, while aggressive, are not in direct violation of generally accepted accounting principles. Discuss why companies might engage in such behavior and comment on the ethical implications.
Explanation:
Companies that use this "make-up accounting" methodology to demonstrate a good image to stakeholders, which means a strategy to win new investments due to the good performance shown.
However, there are legal and ethical implications that could completely destroy the company's image if such business behavior were exposed.
It is necessary that companies have a strategic plan that aims at actions that understand the long-term success of the company, through legal means of reaching objectives and demonstrating results to investors, because in an increasingly competitive and globalized world, ethics , business reliability and transparency are the factors that guarantee the company's permanence in the market.
You have just sold your house for 1100000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of 800000. The mortgage is currently exactly 18½ years old, and you have just made a payment. If the interest rate on the mortgage is (APR), how much cash will you have from the sale once you pay off the mortgage? (Note: Be careful not to round any intermediate steps less than six decimal places.) Cash that remains after payoff of mortgage is
Answer:
Net amount in hand after paying off loan $643,068.6
Explanation:
Note that the interest rate on the mortgage is 5.25% (APR) as the question is concerned
Present Value = $800,000
n = 30 * 12 = 360
Annual rate of interest = 5.25%
Monthly rate of interest = 5.25%/12 = 0.44%
Annuity PVF at 0.4375% for 360 months = 181.0926
Monthly Payment = $800,000/181.09259
Monthly Payment = $4417.63
Remaining instalments = (360-222) = 138
Annuity PVF at 0.4375% for 138 months = 103.4336
Loan amount outstanding = $4417.63 * 103.43362
Loan amount outstanding = $456931.4
Loan amount outstanding $456,931.4
Amount received on sale of assets $1,100,000
Net amount in hand after paying off loan $643,068.6
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $14,000 cash and $60,200 of photography equipment in the company. 2 The company paid $3,600 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,660 cash. 20 The company received $3,850 cash in photography fees earned. 31 The company paid $871 cash for August utilities. Prepare general journal entries for the above transactions.
Answer and Explanation:
The journal entries are shown below:
On Aug 1
Cash Dr $14,000
Photography equipment $60,200
To Common stock $74,200
(Being the common stock is exchanged)
On Aug 2
Prepaid insurance Dr $3,600
To Cash $3,600
(Being the cash paid is recorded)
On Aug 5
Office supplies Dr $2,660
To Cash $2,660
(Being the cash paid is recorded)
On Aug 20
Cash Dr $3,850
To Photography fees earned $3,850
(Being cash received is recorded)
On Aug 31
Utilities Dr $871
To Cash $871
(Being cash paid is recorded)
Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. In order to determine the direction of the organization, it is necessary to understand its current position and the possible avenues through which it can pursue a particular course of action. What is strategic planning and why is it an important tool in the X industry
Explanation:
Strategic planning is the long-term actions that a company will implement in its organizational processes to achieve its objectives and goals. Through strategic planning, a company creates an identity, a culture that assists in the company's internal and external positioning, in addition to managing the resources, the decision-making process and the timing of the actions necessary to remain profitable and competitive in the market.
In any organization, regardless of sector or size, strategic planning will assist in efficiency and effectiveness in the use of physical, financial, human, marketing and administrative resources.
Total Per Unit Sales $ 624,000 $ 40 Variable expenses 436,800 28 Contribution margin 187,200 $ 12 Fixed expenses 152,400 Net operating income $ 34,800 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $56,400? 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 5. What is the company’s CM ratio? If the company can sell more units thereby increasing sales by $94,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?
Answer: See explanation
Explanation:
1. What is the monthly break-even point in unit sales and in dollar sales?
Break even point in unit sales:
= Fixed expenses/Unit Contribution margin
= 152,400/12
= 12,700 units
Break even point in dollar sales will be:
= 152,400×40/12
= $508,000
2. Without resorting to computations, what is the total contribution margin at the break-even point?
Total contribution margin at the break even point will be the unit Contribution margin multiplied by the break even point in units
= 12× $12,700
= $152,400
3-a. How many units would have to be sold each month to attain a target profit of $56,400?
Sales in units:
= ($152,400+$56400)/12
= $208800/12
= 17400
b. Verify your answer by preparing a contribution format income statement at the target sales level.
Sales (17400×40) = $696,000
Less: Variable expenses (17400×28) = $487,200
Contribution margin = $208,800
Less: Fixed expenses = $152,400
Net operating income = $56,400
Since net operating income is also $56,400, the answer has been verified.
4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms.
Margin of safety in dollars will be:
= Sales - Break even sales
= 624,000-508,000
= $116,000
Percentage of Margin of safety:
= 116,000/624,000
= 0.1859
= 18.59%
5. What is the company’s CM ratio? If the company can sell more units thereby increasing sales by $94,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?
CM ratio will be the unit Contribution margin divided by the sales per unit. This will be:
= 12÷40
= 0.30
= 30%
Increase in sales = $94000
New sales:
= Sales + Increase in sales
= $624,000+$94,000
= $718,000
New Contribution margin:
= 718000×30%
= 718000 × 0.3
= $215400
New Net operating income:
= 215400-152,400
= $63000
Increase in net operating income
= $63000 - $34800
= $28200
Koebel Corp uses a job order costing system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Koebel Corp estimated total manufacturing overhead cost at $921,600 and total direct labor hours of 51,200. Koebel Corp started the year with no beginning balances in either Work in Process Inventory or Finished Goods Inventory. During the year actual manufacturing overhead incurred was $902,900 and 48,900 direct labor hours were used.
(a) Calculate the predetermined overhead rate Overhead Rate per hour
(b) Calculate how much manufacturing overhead will be applied to production
(c) Is overhead over- or underapplied? By how much? (Input the amount as positive value.)
(d) What account should be adjusted for over-or underapplied overhead? Should the balance be increased or decreased?
Answer: See explanation
Explanation:
a. Calculate the predetermined overhead rate Overhead Rate per hour
Predetermined Overhead rate will be the estimated total manufacturing overhead divided by the estimated total direct labor hours. This will be:
= $ 921,600/51,200
= $ 18
(b) Calculate how much manufacturing overhead will be applied to production
Manufacturing overhead that'll be applied to production will be the predetermined overhead rate multiplied by the actual total direct labor hours. This will be:
= $ 18 × 48,900 direct labor hours
= $ 880,200
(c) Is overhead over- or underapplied? By how much?
The Actual Overhead Incurred = $902,900 while the manufacturing overhead applied = $880,200. This shows that overhead is underapplied due to the fact that manufacturing overhead applied is less than the actual overhead that is incurred.
Therefore, the amount of overhead that was underapplied will be:
= $ 902,900 - $ 880,200
= $ 22,700
(d) What account should be adjusted for over-or underapplied overhead? Should the balance be increased or decreased?
Based on the scenario in the question and the answers calculated, the cost of goods sold should be increased.
Activity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8.20 per guest check-in, $23.00 per room cleaning, and $5.00 per served meal (not including food). Janelle Campbell visited the hotel for a 5-night stay. Janelle had 8 meals in the hotel during the visit. Determine the total activity-based cost for Campbell's visit during the month. Round your answer to the nearest cent. $
Answer:
$163.20
Explanation:
Calculation to Determine the total activity-based cost for Campbell's visit during the month
Guest check in $8.20
($1 guest*$8.20 per guest check-in)
Room cleaning $115.00
(5-night *$23.00 per room cleaning)
Served meals $40.00
(8 meals*$5.00 per served meal)
Total activity-based cost $163.20
Therefore the total activity-based cost for Campbell's visit during the month will be $163.20
Natsu Company’s annual accounting period ends on October 31, 2017. The following information concerns the adjusting entries that need to be recorded as of that date. (Entries can draw from the following partial chart of accounts:
Cash; Rent Receivable; Office Supplies; Prepaid Insurance; Building; Accumulated Depreciation—Building; Salaries Payable; Unearned Rent; Rent Earned; Salaries Expense; Office Supplies Expense; Insurance Expense; Depreciation Expense—Building.)
a. The Office Supplies account started the fiscal year with a $600 balance. During the fiscal year, the company purchased supplies for 54,570, which was added to the Office Supplies account The supplies available at October 31, 2017, totaled $800.
b. An analysis of the company's insurance policies provided the following facts.
Months of
Policy Date of Purchase Coverage Cost
A April 1. 2016 24 $6.000
B April 1,2017 36 7.200
C August 1, 2017 12 1,320
The total premium for each policy was paid in full (for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost (Year-end adjusting entries for Prepaid Insurance were properly recorded in all prior fiscal years.)
c. The company has four employees, who earn a total of $1,000 for each workday. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that October 31, 2017, is a Monday, and all four employees worked the first day of that week_ They will be paid salaries for five full days on Monday, November 7, 2017.
d. The company purchased a building on November 1, 2014, that cost $175,000 and is expected to have a $40,000 salvage value at the end of its predicted 25-year life. Annual depredation is $5,400.
e. Since the company does not occupy the entire building it owns, it rented space to a tenant at $1,000 per month, starting on September 1, 2017. The rent was paid on time on September 1, and the amount received was credited to the Rent Earned account However, the October rent has not been paid. The company has worked out an agreement with the tenant, who has promised to pay both October and November rent in full on November 15. The tenant has agreed not to fall behind again.
f. On September 1, the company rented space to another tenant for $725 per month. The tenant paid five months rent in advance on that date. The payment was recorded with a credit to the Uneamed Rent account. Required
1. Use the information to prepare adjusting entries as of Octobcr 31, 2017.
2 Prepare ournal entries to record the first subs - • uent cash transaction in November 2017 for its c and e.
Answer:
Natsu Company
1. Adjusting Journal Entries as of October 31:
a. Debit Supplies Expense $54,370
Credit Supplies $54,370
To record supplies expense for the period.
b. Debit Insurance Expense $4,730
Credit Prepaid Insurance $4,730
To record Insurance expense for the period.
c. Debit Wages Expense $5,000
Credit Wages Payable $5,000
To record unpaid wages for the period.
d. Debit Depreciation Expense- Building $5,400
Credit Accumulated Depreciation $5,400
To record depreciation expense for the year.
e. Debit Rent Receivable $1,000
Credit Rent Revenue $1,000
To record rent revenue for the month.
f. Debit Unearned Rent $1,450
Credit Rent Revenue $1,450
To record rent revenue for two months.
2. General Journal Entries for subsequent cash transactions in November 2017 for c and e:
c:
Date General Journal Debit Credit
Nov. 7 Wages & Salaries Payable $5,000
Cash Account $5,000
To record the payment of wages for the last week of the month ending October 31.
e:
Date General Journal Debit Credit
Nov. 15 Cash Account $2,000
Rent Revenue $1,000
Rent Receivable 1,000
To record the receipt of rent for October and November.
Explanation:
a) Data and Calculations:
1. Supplies
Balance $600
Purchases 54,570
Supplies Exp. 54,370*
Balance $800
2. Policy Date of Purchase Months of Cost
Coverage
A April 1. 2016 24 $6,000
B April 1, 2017 36 7,200
C August 1, 2017 12 1,320
3. Insurance Expense for 2017:
Policy A Nov 2016 to October 2017 $3,000 ($6,000 *12/24)
Policy B April 2017 to October 2017 $1,400 ($7,200 * 7/36)
Policy C Aug. 1 2017 to October 2017 $330 ($1,320 * 3/12)
Total Insurance expense = $4,730
State three major features of an organisation
Answer:
1. Composition of Interrelated Individuals
2. Deliberate and Conscious Creation and Recreation
3. Achievement of Common Objectives
Answer:
division of work
coordination
co operative relationship
For a given market, suppose that the quantity demanded is 240 units if the price is $20 and the quantity demanded is 275 units if the price is $16. In addition, the quantity supplied is 240 units if the price is $20 and the quantity supplied is 200 units if the price is $16. If the actual price in the market is $16 then a shortage of 75 units would exist and price would rise.
a. Trueb. False
Answer:
true
Explanation:
Equilibrium is the point at which quantity supplied equals quantity demanded. Above equilibrium price, there would be excess supply and below equilibrium price, there would be excess demanded and a shortage.
Equilibrium price is $20 units and equilibrium quantity s 240 units
When price is $16, demand is 275 and supply is 200 units
Shortage = 275 - 200 = 75 units
Skysong, Inc. incurred the following costs while manufacturing its product.
Materials used in product $124,000 Advertising expense $48,600
Depreciation on plant 67,300 Property taxes on plant 18,700
Property taxes on store 7,960 Delivery expense 30,900
Labor costs of assembly-
line workers 119,500 Sales commissions 37,900
Factory supplies used 26,500 Salaries paid to sales
clerks 60,600
Work in process inventory was $13,000 at January 1 and $17,100 at December 31. Finished goods inventory was $69,400 at January 1 and $48,200 at December 31.
1. Compute cost of goods manufactured.
2. Compute cost of goods sold.
Answer:Cost of goods manufactured = $351,900
Cost of goods sold = $373,100
Explanation:
a)cost of goods manufactured
Material used in product $124,000
Labor costs of assembly line workers $119,500
Add:
Factory Overhead:
Depreciation on plant $67,300
Property taxes on plant $18,700
Factory supplies used $26,500
Beginning WIP $13,000
Deduct:
Closing WIP -$17,100
Cost of goods manufactured $351,900
b)
Opening finished goods $69,400
Add:
Cost of goods manufactured $351,900
Deduct:
Ending finished goods - $48,200
Cost of goods sold $373,100
