Answer:
a. $804,000
Explanation:
Preparation of Worth Company's cost of goods sold for the year
Cost of goods manufactured $816,000
Add Beginning finished goods inventory $252,000
Less Ending finished goods inventory ($264,000)
Cost of goods sold $804,000
Therefore Worth Company's cost of goods sold for the year is: $804,000
n October 28, 2013, Mercedes Company committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2013, the end of the company's fiscal year. The division's loss from operations for 2013 was $2,000,000. The division's book value and fair value less cost to sell on December 31 were $3,000,000 and $2,500,000, respectively. What before-tax amount(s) should Mercedes report as loss on discontinued operations in its 2013 income statement?
Answer:
$2,500,000
Explanation:
The computation of the before tax amount that should be reported as loss on discontinued operations is shown below:
Division loss from operations $2,000,000
Add: Impairment loss ($3,000,000 - $2,500,000) $500,000
Total loss on discount operations $2,500,000
Hence, the before tax amount that should reported on loss on disconituned operations is $2,500,000
Records at Hal’s Accounting Services show the following costs for year 1. Direct materials and supplies $ 40,000 Employee costs 2,900,000 Total overhead 1,300,000 Production was 25,000 billable hours. Fixed overhead was $700,000. Assuming no change in billable hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 5 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected to increase by 5 percent. Required: a. Year 2 production is expected to be 20,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2? b. Determine the total costs per billable hour for year 1 and year 2.
Answer:
See answers below
Explanation:
a. Direct materials & supplies $40,000 = $40,000 × 110%
= $44,000 × 20,000/25,000
= $35,200
Employee costs = $2,900,000 × 105%
= $3,045,000 × 20,000/25,000
= $2,346,000
Variable overhead = $600,000 × 100%
= $600,000 × 20,000/25000
= $480,000
Fixed overhead = $700,000 × 105%
= $735,000
b. Total costs per unit year 2 =
$3,596,000 / 20,000
= $179.81
Answer:
Employee costs for year 2 should be $2,436,000.
Total costs in year 2:
$35,200+$2,436,000+$480,000+$735,000=$3,686,200
b) Total costs per billable hour for year 2=$3,686,200/20000=$184.31
Explanation:
Which of the following is the best example of correlation not being the same as causation? A. A company redesigns a production process and afterwards it takes less time to produce products. The company concludes that redesigning processes causes production efficiency gains. B. After a poorly performing quarter, a company sends out coupons in the mail and sees an increase in sales. The company concludes that sending coupons causes sales to increase. C. A company pays sales employees more for each sale and each employee starts selling more goods. The company concludes that paying employees more for a sale causes employees to sell more items. D. During an economic downturn, a company changes its computer policy to only allow purchases of windows-based laptops and see profits go down. The company concludes that windows-based laptops cause profits to go
Answer: D. During an economic downturn, a company changes its computer policy to only allow purchases of windows-based laptops and see profits go down. The company concludes that windows-based laptops cause profits to go down
Explanation:
In the other options, the new activity done by the company were definite causes of the effects that followed. A more efficient production process will cause gains in productivity. Coupons will bring in more sales and paying employees more will encourage them to engage in more sales.
Concluding that a computer type causes profits to go down however in a period where the economy as a whole is buying less, is simply correlation. In an economic downturn, people are buying less goods in general. The laptops will be no exception and it is not a reflection of people's preference or lack thereof of them.
Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. Equivalent Units of Production Direct Materials Conversion Units Completed and transferred out 92,000 92,000 Units in Ending Work in Process: Direct Materials (9,000 * 100%) 9,000 Conversion (9,000 * 60%) 5,400 Equivalent Units of Production 101,000 97,400 Cost per Equivalent Unit Costs of beginning work in process $ 42,400 $ 62,300 Costs incurred this period 141,900 190,900 Total costs $ 184,300 $ 253,200 Cost per equivalent unit $ 1.82 per EUP $ 2.60 per EUP
The total conversion costs transferred out of the Canning Department should be:_______.
Answer:
$239,200
Explanation:
The computation of total conversion costs transferred out of the Canning Department is shown below:-
Total conversion costs transferred out = Equivalent units × Cost per equivalent unit of conversion cost
= 92,000 × $2.60
= $239,200
Therefore for computing the total conversion costs transferred out we simply applied the above formula.
Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $53,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 3 percent of your annual salary in an account that will earn 10 percent per year. Your salary will increase at 4 percent per year throughout your career. Required: How much money will you have on the date of your retirement 35 years from today?
Answer:
The amount of money you will have on the date of your retirement 35 years from today is $640,143.22.
Explanation:
This can be determined using the formula for calculating the future value of growing annuity as follows:
FV = M * (((1 + r)^n - (1 + g)^n) / (r - g)) ...................................... (1)
Where
FV = Amount on the date of retirement = ?
M = Annual deposit = Annual salary * Deposit percentage = $53,000 * 3% = $1,590
r = annual interest rate = 10%, or 0.1
g = salary growth rate = 4%, or 0.04
n = number of years = 35 years
Substituting all the values into equation (1), we have:
FV = $1,590 * (((1 + 0.1)^35 - (1 + 0.04)^35) / (0.1 - 0.04))
FV = $1,590 * ((1.1^35 - 1.04^35) / 0.06)
FV = $1,590 * ((28.1024368480643 - 3.94608899421194) / 0.06)
FV = $1,590 * (24.1563478538524 / 0.06)
FV = $1,590 * 402.605797564207
FV = $640,143.22
Therefore, the amount of money you will have on the date of your retirement 35 years from today is $640,143.22.
Leaders must have the ability to communicate new ideas.
O True
O False
Answer: true
Explanation:
Jack explains that he has strong potential in social analytics. He says, "I like to find out what customers want and make sure I meet their needs, and I think that’s the basis for good marketing. I’ve always done that, as a leasing agent, as a sales associate, and as a restaurant host. Using social analytics lets me identify the needs of customers on a scale that is really exciting, where I can see what entire consumer groups are thinking and feeling about various products." He is demonstrating credibility primarily in what ways?
Explanation:
He is demonstrating credibility in stating that the basis for an effective marketing strategy is to discover customers' wants and needs and be able to meet them.
Social anaylitcs is a tool for collecting data from users of social networks and identifying behaviors and characteristics that can help marketers to interpret data regarding their potential audience, their needs, their interaction, feelings, identify consumption trends, etc. .
This ability helps to identify patterns that can assist an organization to develop personalized marketing strategies and actions aligned with its potential audience to engage, generate more sales, assist in the decision-making process, etc.
Income Statement (in Millions of Dollars) Net sales $100.0 Cost of sales 60.0 Selling, general, and administrative expenses 20.0 Other expenses 15.0 Earnings after tax $ 5.0 a. Determine the length of the inventory conversion period. b. Determine the length of the receivables conversion period. •c. Determine the length of the operating cycle. d. Determine the length of the payables deferral period. •e. Determine the length of the cash conversion cycle. f. What is the meaning of the number you calculated in Part e?
Answer:
the balance sheet is missing:
Balance Sheet (In millions of Dollars)
ASSETS
Cash $6.0
Accounts Receivable 14.0
Average Inventory 12.0
Fixed Assets, net 40.0
TOTAL ASSETS $72.0
LIABILITIES AND EQUITY
Accounts Payable $10.0
Salaries and Benefits Payable 2.0
Other current Liabilities 10.0
Long-term debt 12.0
Equity 38.0
TOTAL LIABILITIES AND EQUITY $72.0
a. Determine the length of the inventory conversion period.
inventory conversion period = average inventory / (COGS/365) = 73 daysb. Determine the length of the receivables conversion period.
receivables conversion period = accounts receivables / (net sales/365) = 51.1 daysc. Determine the length of the operating cycle.
length of operating cycle = 73 + 51.1 = 124.1 daysd. Determine the length of the payables deferral period.
length of the payables deferral period = accounts payables / (COGS/365) = 60.83 dayse. Determine the length of the cash conversion cycle.
cash conversion cycle = 73 + 51.1 - 60.83 = 63.27 daysf. What is the meaning of the number you calculated in Part e?
How long does it take to turn inventories into cash, it is a measure of asset liquidity.Linden, Inc. uses a 5,400 square foot factory space that it rents for $3,300 a month for all its manufacturing activities. Linden has decided to switch to an activity-based costing system, and has identified its activities as follows: Preparation and Setup, Machining, Finishing, and Quality Control. 2,900 square feet of the factory are used for machining, while 1,000 square feet (each) are used for Preparation and Setup and Quality Control. Finishing uses 500 square feet. When assigning indirect costs to each activity, how much factory rent should be assigned to the Preparation and Setup cost pool
Answer:
$611
Explanation:
We can easily calculate the rate assigned to the preparation and setup department by dividing the total rent in total space and multiplying it to the space assigned to the preparation and setup department.
DATA
Total space = 5400 sq foot
total rent = $3,300
Space used for preparation and setup = 1,000 sq foot
Solution
Rent assigned to preparation and setup = (Total Rent/Total space) x Space used by preparation and setup department
Rent assigned to preparation and setup = ($3.300/5400) x 1,000
Rent assigned to preparation and setup = $611
An entrepreneur who needs large amounts of capital to create and distribute a new invention would most likely visit
a. a community banker.
b. an investment banker.
c. a commercial banker.
d. an executive banker.
Answer:
The answer is B. Investment banker.
Explanation:
An entrepreneur who needs large amounts of capital to create and distribute a new invention would most likely visit
: b. an investment banker.
Who is an investment banker?An investment banker is a person or company which help in the following:
Provide financial services They act as financial advisoryHelp to raise capital etcAn entrepreneur or corporation who is in need of capital can reach out or visit an Investment banker reason being they help to raise capital for those who does not have money to start up their own business.
Inconclusion an entrepreneur who needs large amounts of capital to create and distribute a new invention would most likely visit
: b. an investment banker.
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Byron Books Inc. recently reported $13 million of net income. Its EBIT was $20.8 million, and its tax rate was 35%. What was its interest expense? (Hint: Write out the headings for an income statement, and fill in the known values. Then divide $13 million of net income by to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.)
Answer:
Interest expense = $800,000
Explanation:
Given:
Net income = $13,000,000
EBIT = $20,800,000
Tax rate = 35% = 0.35
Find:
Interest expense
Computation:
Net income= (EBIT - Interest expense) × ( 1-tax rate)
$13,000,000 = [$20,800,000 - Interest expense][1-0.35]
20,000,000 = [$20,800,000 - Interest expense]
Interest expense = $800,000
Campbell Corporation, an accrual basis calendar year corporation, had income of $450,000 for financial statement purposes in year 7. This amount included book depreciation of $50,000. The related tax depreciation was $65,000. Further, the financial statements reported $100,000 of municipal bond interest income, an expense of $2,000 for life insurance premiums on the corporation's president, charitable contributions of $5,000, excess capital losses over capital gains of $3,000, income tax penalties of $10,000, state income tax of $40,000, and Federal income tax expense of $175,000. What is the amount of Campbell's taxable income for year 7
Answer:
The amount of Campbell's taxable income for year 7 is $525,000
Explanation:
Accrual basis income $450,000
Less: Excess depreciation as per ($15,000)
tax purpose ($65,000 - $50,000)
Less: Interest income ($100,000)
Add: Federal income tax expense $175,000
Add: Excess capital loss over capital gain $3,000
Add: LIC on corporation president $2,000
Add: Income tax penalties (not allowed) $10,000
Taxable Income $525,000
Which of the following is a transfer of a case from a lower to a higher level of court?
O Judgment
O Trial
O Breach
O Appeal
Answer:
D.) Appeal
Explanation:
This is what it's called when a judge sends a case to a higher court for a new hearing.
The appeal is a transfer of a case from a lower to a higher level of court. Thus, option D is correct.
What is a court?A court is any individual or body, frequently a government agency, that has the power to decide legal conflicts and administer justice in civil, economic, and regulatory cases in conformance with the law.
If a particular individual or an entity wants k should be heard from a lower court to the higher court. They need to make an appeal for the same after their appeal is accepted their case would be transferred.
An appeal is generally made when an entity has lost a case in a lower court and wants to go for a trial again. Then that trial will be done in a higher level of court and they make the decision. Therefore, option D is the correct option.
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Penny Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $ 157,800 Estimated machine-hours 4,650 Actual manufacturing overhead $ 157,500 Actual machine-hours 4,880 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The predetermined overhead rate is closest to: Multiple Choice $32.27 $33.94 $33.87 $42.62
Answer:
POAR = $33.94 per machine hour
Explanation:
Absorption costing is method of costing where overheads are charged to units produced using volume-based bases. e.g machine hours, labour hours e.t.c.
The overheads are charged to units produced using the pre-determined overhead absorption rate, which is computed as follows:
Pre-determined overhead absorption rate (POAR)= Estimated Overhead/Estimated machine hours
POAR = 157,800/4,650 machine hours = $ 33.94 per machine hour
POAR = $33.94 per machine hour
When recording transactions into the accounting equation, which of the following statements are correct? (Check all that apply.) Multiple select question. After recording the transaction, total assets will always equal total liabilities plus equity. The accounting equation must always remain in balance. Cash must always equal Equity. Expenses are listed on the right side of the accounting equation and will increase the equity account.
Answer:
The correct answers are the following options:
After recording the transaction, total assets will always equal total liabilities plus equity.
The accounting equation must always remain in balance
Explanation:
To begin with, the name of "Accounting Equation" is famously known in the business field due to the fact that it is a concept from the accountant of companies and in fact a very important one. The accounting equation represents the sum between the equity and the debts of the company that will always give the total assets of the company. It is considered to be the foundation of the double-entry accounting system, so that is why it is so important. Moreover, under its doctrine, it proves that the balance sheet must always remain balance.
The statements that is correct about recording of transactions into the accounting equation are;
After recording the transaction, total assets will always equal total liabilities plus equity.The accounting equation must always remain in balance.In accounting, accounting equation is very important inoder to calculate the profits of the organization.
We can conclude that total assets will always equal total liabilities plus equity. when using accounting equation.
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You have been working at Saxet Consulting for the past year and are expected to complete three client reviews per week. You have been very productive and have been completing two extra reviews per week. At a recent team meeting, you expected to receive praise from the President for this extra work; however, your manager took credit for the extra work and received the praise from the President. What has your manager violated and what is your likely reaction
Explanation:
In this situation, you can perceive an unethical attitude from your manager, because he has taken credit for the extra work done by you before the president of the company.
So in this situation, it is ideal to have a dialogue between you and your manager in order to clarify the situation that has occurred. Because many managers can act dishonestly with their subordinates because many feel cornered to question the manager's attitudes for fear of reprisals.
It is also ideal that there is support from the rest of the team for a collaborator who is truly unfair because of a situation of abuse of authority, because this way bad behaviors are inhibited and an organizational climate is created, focused on transparency and ethical behaviors.
which presentation is effective individual presentation or group presentation??
Answer:
group presentation
Explanation
If Mainway Toy Company declares a 4-for-1 stock split, the price of the company’s stock after the split, assuming that the total value of the firm’s stock remains the same after the split, will be$380.00 Scorecard Athletics Corp. is one of Mainway’s leading competitors. Scorecard’s market intelligence research team shares Mainway’s plans of announcing a stock split, influencing the distribution policy makers. Consequently, executives at Scorecard decide to offer stock dividends to its shareholders. Scorecard currently has 1,900,000 shares of common stock outstanding. If the firm pays a 7% stock dividend, what will be the total number of shares outstanding after the stock dividend?
Answer:
Scorecard Athletics Corp.
The total number of shares outstanding after the stock dividend is:
Explanation:
a) Data:
Common stock outstanding before stock dividend = 1,900,000
Stock dividend paid = 7% = 133,000 (1,900,000 * 7%)
Outstanding stock = Common stock outstanding before stock dividend Plus Stock dividend paid
= 2,033,000 (1,900,000 + 133,000)
Scorecard's stock dividend is a form of dividend that is paid with stock of shares. It is usually given to stockholders as a compensation, especially when the firm does not have enough cash and with the company's shares trading at high prices. Stock dividends increase the number of common stock shares outstanding and the profitability indexes based on this number will decrease accordingly, especially the Earnings Per Share.
Initially, in a borrowing and lending market, or a loanable funds market, there is an equilibrium. Suppose entrepreneurs' aggregate expectations are that the economy is going to be good next year (i.e. opportunities for investment). What is likely to happen to the equilibrium interest rate under the following scenarios: 1. There is no change in the loan supply curve; 2. Potential lenders disagree with entrepreneurs, lenders view the future economic outlook as negative/riskier. Answer both cases using the theory of loanable fund markets.
Answer:
At the inception of a borrowing and lending market or a loan-able funds market, there was an equilibrium and the entrepreneurs expect the economy to be good both presently and in the subsequent years. For instance, increase in opportunities for investment which says that the demand for loans will increase in near future. The theory of the loan-able funds market says that " the rate of interest for lending is determined by the demand for and supply of loan-able funds".
1. As the main source of demand is a demand for investment which is likely to increase it will shift the demand curve towards right. The loan supply curve doesn't change as mentioned in the question. Hence, the equilibrium will shift upward i.e. the price of the funds which is the interest rate will increase.
2. Potential lenders disagreeing with entrepreneurs with having a pessimistic view will lead to a reduction of supply of funds in the market which will take the supply curve towards left. And the entrepreneurs have the opposite view which has already shifted the demand curve to right. So ultimately the new equilibrium interest rate will be much higher than the previous equilibrium interest rate.
Record each transaction in the journal, using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Land; Building; Furniture; Accounts Payable; Utilities Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.) Jan. 1: Murphy contributed $78,000 cash to the business, Terrence Murphy, Attorney. The business issued common stock to Murphy.
Answer and Explanation:
The journal entry is shown below:
Cash Dr $78,000
To Common stock $78,000
(Being the common stock is issued)
According to the given situation, the journal entry for issuance of the stock is presented above and the same is to be considered. The cash account is debited and shown on the debit side while the common stock is credited and the same shown on the credit side
Sport Ready produces sport socks. The company has fixed expenses of $110,000 and variable expenses of $1.10 per package. Each package sells for $2.20. The number of packages Sport Ready needed to sell to earn a $24,000 operating income was 121,819 packages (rounded). If Sport Ready can decrease its variable costs to $1.00 per package by increasing its fixed costs to $125,000, how many packages will it have to sell to generate $24,000 of operating income? Is this more or less than before? Why? Review Only LOADING... Click the icon to see the Worked Solution. Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach. ( Fixed expenses + Operating income ) / Contribution margin per unit = Sales in units (Round your answer up to the nearest whole unit.) Sport Ready will have to sell 124,167 packages to generate $24,000 of operating income. Is this more or less than before? Why? Sport Ready would have to sell 2,348 more packages of socks to earn $24,000 of operating income. The increase in fixed costs was not completely offset by the decrease in variable costs at the prior target profit volume of sales. Therefore, Sport Ready will need to sell more units in order to achieve its target profit level.
Answer:
current contribution margin = $2.20 - $1.10 = $1.10
total fixed costs = $110,000
break even point = $110,000 / $1.10 = 100,000 units
sales level to earn $24,000 in operating profits = $134,000 / $1.10 = 121,819 units
if fixed costs increase to $125,000
new contribution margin = $2.20 - $1 = $1.20
new break even point = $125,000 / $1.20 = 104,167 units
sales level to earn $24,000 in operating profits = $149,000 / $1.20 = 124,167 units
The increase in contribution margin (9.09%) is not large enough to offset the increase in fixed costs (13.64%), that is why you will need to sell more units in order to make the same operating profits (124,167 - 121,819 = 2,348 units more).
Consider the changes that have occurred in a comparatively new industry (e.g., wireless telecommunications, smartphones, video game consoles, online brokerage services, and fitness clubs). Then, address the following questions: • To what extent has the evolution of the industry followed the pattern predicted by the industry life-cycle model? • What do the features of the industry have that have influenced its pattern of evolution? • At what stage of development is the industry today? How is the industry likely to evolve in the future?
Explanation:
Let's take for example the smartphone industry.
This industry started off following the year 2000, with the first smartphone brand like BlackBerry, Windows phone, and eventually the iPhone which was first released in 2007.
According to the industry life-cycle model:
Introduction stage: began with earlier smartphone brands like Blackberry released with introductory features like wireless mobile internet, mobile email access.
Growth stage: became evident with a rapid increase in demand adoption for smartphones.
The maturity stage: which is still present today has resulted in an increase in the number of smartphone manufacturers today. Industry expert predicts a decline in the years to come for this industry.
Part of the features of the smartphone industry that have influenced its pattern of evolution has been:
Constant innovation; something that draws the interest of young people.
Today, there are plans to achieve wide-scale and affordable foldable smartphones in the future; and who knows, it may evolve into flying smartphones.
The brief description of the industry life-cycle model using telecommunications as a sample:
There have been innovations with wireless technology in smartphones as they were improved to perform more tasks, seamlessly. Industry life-cycle modelThis refers to the various stages through which a model goes through and they include:
Introduction stageGrowth stageMaturity stageThe stage of development which the industry is today is the growth stage as more innovations are made to improve the model.
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It's important for the interviewer to know about your biggest professional accomplishment.
True
or
False
Answer: false
They may not want to know what you have done, like got a wife, or won a award in 3rd grade for highest jump off a swing. If it is job related they may, but probably not.
Which of the following is an example of offshoring? Treat Corp. is a food and beverage manufacturer based in Texas. It decided to move from Houston to Fort Worth in Texas to cut production costs. The IT support services for customers of Mayfair Inc., a U.S. based consumer electronics manufacturer, are based in India. Lin, a Chinese citizen, decides to move to the U.K. after her application for scholarship is accepted by a leading university in London. Fahad, a resident of the UAE, can share his views—data and information—about the country's construction industry with his friends in the U.S. 2.5 points Save Answer QUESTION 21
Answer: The IT support services for customers of Mayfair Inc., a U.S. based consumer electronics manufacturer, are based in India.
Explanation:
Offshoring is when the operations of business is being outsource to another country in order to minimize cost and also benefit from economies of scale.
From the explanation of what offshoring means, we can see that the option "The IT support services for customers of Mayfair Inc., a U.S. based consumer electronics manufacturer, are based in India". qualifies as the best option.
From here, we can see that the IT support services is situated in another country. This may be as a result of wanting to take advantage of cheaper production cost or economies of scale.
An industrial system has two industries with the following input requirements. (a) To produce $1.00 worth of output, Industry A requires $0.20 of its own product and $0.50 of Industry B's product. (b) To produce $1.00 worth of output, Industry B requires $0.40 of its own product and $0.30 of Industry A's product. Find D, the input-output matrix for this system. A B D = A B Solve for the output matrix X in the equation X = DX + E, where E is the external demand matrix E = 10,000 20,000 . (Round to the nearest whole number.)
Answer:
X = 1/11 * [ 250000; 575000]
Explanation:
To find D we need to build the equation first by working out the equation further we will get the value of x then we can easily work out the equation of matrix X
X = DX + E
Let the matrix X be x,y
The equation will be
x - (0.10x + 0.20y) = 10000
y -(0.50x+0.40y) = 20000
0.9x - 0.2y = 10000
-0.5x+0.6y = 20000
The value of x is equal to 250000/11 and y is equal to 575000/11
Hence the matrix X will be
X = 1/11 * [ 250000; 575000]
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On January 1, 2021, Poplar Fabricators Corporation agreed to grant its employees two weeks of vacation each year, with the stipulation that vacations earned each year can be taken the following year. For the year ended December 31, 2021, Poplar Fabricators’ employees each earned an average of $900 per week. Seven hundred vacation weeks earned in 2021 were not taken during 2021. Required: 1. Prepare the appropriate adjusting entry for vacations earned but not taken in 2021. 2. Suppose that, by the time vacations actually are taken in 2022, salary rates for employees have risen by an average of 5 percent from their 2021 level. Assume all vacation days earned in 2021 are taken in 2022. Also, assume salaries paid in 2022 (not including amounts paid for 2021 vacation days used in 2022) totaled $31 million. Prepare a journal entry that summarizes 2022 salaries and the payment for 2021 vacations taken in 2022. (Note: Do not include in the journal entry any amounts for vacation days earned in 2022).
Answer:
1. Dr Salary expense $630,000
Cr Liability - compensated future absences $630,000
2. Dr Liability - compensated future absences $630,000
Dr Salary expense $31,031,500
Cr Cash or Salary Payable $31,661,500
Explanation:
1. Preparation of Journal entry for vacations earned but not taken in 2021.
Dr Salary expense $630,000
(700 weeks * $900 per week )
Cr Liability - compensated future absences $630,000
2. Preparation of journal entry that summarizes 2022 salaries and the payment for 2021 vacations taken in 2022
Dr Liability - compensated future absences $630,000
(700 weeks * $900 per week )
Dr Salary expense $31,031,500
[(5% * $630,000) + $31 million]
Cr Cash or Salary Payable $31,661,500
($31,031,500+$630,000)
In 2021, Short Construction began construction work under a four-year contract. The contract price is $2,000,000. Short recognizes revenue over time according to percentage of completion method. The balance sheet shows the following accounts at the end of 2021: A/R of $40,000, Construction in Progress of $200,000, Less: Billings on Construction Contract of $170,000. The income statement shows Income on the contract of $30,000 at the end of 2021. What was the total estimated cost of the project at the end 2021?
Answer:
The appropriated answer will be "$1,700,000".
Explanation:
Revenue understood by completion percentage = Design balance throughout progress = $200,000
The percentage completion throughout the whole year will be:
⇒ [tex]\frac{200,000}{2,000,000 }[/tex]
⇒ [tex]10 \ percent[/tex]
The cost incurred throughout the whole year will be:
⇒ [tex]Revenue \ recognized - Income \ on \ the \ contract[/tex]
⇒ [tex]200,000 - 30,000[/tex]
⇒ [tex]170,000[/tex] ($)
Now,
The total estimated cost of the project at the end the year 2021 will be:
⇒ [tex]\frac{170,000}{10 \ percent}[/tex]
⇒ [tex]1,700,000[/tex] ($)
You are trying to estimate the value of a property that you are interested in buying. The subject property is located at 322 Rock Creek Road in a new suburb at a large metropolitan area. The property is like many others in the area, With three bathrooms, a living room, a den, a large kitchen, and a two car garage. the residence has about 1,800 square feet of air conditioned space and is of traditional design. The property is located on an interior lot with no potential flooding problems. The quiality of construction appears to be about average for the market. The property being purchased was built within the past two years. Three properties ave been chosen as comparable and they also were constructed within the past two years. Comparable properties in the area have the following characteristics:
Comparable I Comparable II Comparable III
Address 123 Clay St. 301 Cherry Lane 119 Avenue X
Sale Price $ 85,000 $ 79,000 $ 75,000
Time of Sale 6 Months ago 7 Months ago 13 Months ago
Design Modern Traditional Traditional
Parking 2-Car Garage 2-Car Garage 1-Car Garage
Location Corner lot Interior Lot Interior Lot
Drainage Good Bellow Average Good
Bedrooms Four Three Two
Baths Two Two Two
Construction Average Average Bellow Average
You have to come to conclusions concerning hat you believe the different attributes f the comparable properties are likely to be worth in the market area. Appreciation in house value in the areas has been very low ver the past eight months, and you think that any properties that have sold within hat period would probably not require adjustments or the ime of sale. However, one of the comparable properties sold over a year ago, and you think it will eequire a $1,500 upward adjustment. You also believe that properties in the area because of a slower rate of runoff fter heavy rains. Properties on corner lots generally sell for a premium of about $1,000. House with the fashionable modern design usually bring about $1,000 more than those that have traditional design characteristics. BEcause three-bedroom homes are considered desirable by buyers in the area, an additional fourth bedroom will generally only add about $1,200 in value to a property. However, properties that can only contain only two bedrooms are rather difficult to sell, and often bring $2,000 less than three-bedroom counterparts when they are sold. Most homes in the area have two-car garage, but when properties have a one-car garage, they usually sell for about $800 less. A two-car open carpot generally reduces the value of the property by a similar ammount, or $800. The inferior construction quality exhibited by comparable III should reduce its value by about $1,500.
a. You plan to complate the sales comparison approach to value and assign and estimate of value to the subject property. Give specific reasons for your choice of value.
Answer and Explanation:
As it can be seen that Comparable 2 is the best comparable in the given scenario as it matched the property in five of the attributes i.e. three bathrooms, two car garage, design i.e. traditional, interior lot, and average construction.
So it could be started by considering the comparable II
The Sales value of comparable II $79,000
Add or Less:
Upward adjustment =0
Adjustment for corner lots =(1000)
Adjustment for design =(1000)
Adjustment for bedroom=(2000)
Adjustment for car garage =0
Adjustment for construction quality =1500
Value of property =$76,500
Use the following information to compute the cost of goods manufactured. Assume that all raw materials used were traceable to specific units of product.
Beginning raw materials $ 5,700
Ending raw materials 4,200
Direct labor 12,450
Raw material purchases 7,600
Depreciation on factory equipment 6,700
Factory repairs and maintenance 3,500
Beginning finished goods inventory 10,400
Ending finished goods inventory 9,100
Beginning work in process inventory 5,900
Ending work in process inventory 6,500
Answer:
$31,150
Explanation:
Computation for cost of goods manufactured
Using this formula
Cost of goods manufactured=(Beginning raw materials+Raw Materials Purchased−Ending Raw Materials) +Direct Labor + (Depreciation on Factory Equipment + Factory Repairs and Maintenance) + Beginning Work in Process−Ending Work in Process
Let plug in the formula
Cost of Goods Manufactured =($ 5,700+7,600-4,200) +12,450+(6,700+3,500) +5,900-6,500
Cost of Goods Manufactured=9,100+12,450+10,200-600
Cost of Goods Manufactured=$31,150
Therefore the cost of goods manufactured will be $31,150
A company adopts an advertising campaign to weekly add to its customer base. It assumes that as an average fifty percent of its new customers, those added the previous week, will bring in one friend, but those who have been customers longer will not be very effective as recruiters and can be discounted. A media campaign brings in 10,000 customers initially. What is the expected total number of customers with whom the company can expect to have dealings
Answer:
20,000 customers
Explanation:
The campaign initially brought in 10,000 new customers. These 10,000 customers should bring 5,000 more. Then these 5,00 should bring 2,500 more customers and so on. in order to solve this question, we can calculate a customer multiplier = 1 / % of customers who bring additional new customers = 1 / 50% = 2
the total number of new customers = 10,000 x 2 = 20,000
