Answer:
Credibility
Matching the action with the most appropriate area of credibility:
Competence:
a. Following code of conduct
f. Gaining record of success
Character:
b. Doing what you say
d. Meeting deadlines
g. Sense of accountability
Caring:
c. Talking to customers
c. Talking to employees
e. Encouraging openness
Explanation:
Competence is the professional skills and abilities that one needs in order to accomplish specific tasks. It is developed by experience. Caring is the compassion that one displays in understanding the interests of others and connecting with them. Character is the reputation that one gains by being committed to high morals and values.
A primary reason for a company to change from traditional costing to activity-based costing (ABC) is that ABC:___________
A. Is a simpler costing method to use.
B. Identifies the nonvalue-added costs of production.
C. Reduces product undercosting or overcosting.
D. Eliminates indirect cost application to products.
Answer:
C. Reduces product undercosting or overcosting.
Explanation:
Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
A primary reason for a company to change from traditional costing to activity-based costing (ABC) is that ABC reduces product undercosting or overcosting. One of the most widely used activity-based costing technique is the time-driven activity-based costing.
Time-driven activity-based costing (TDABC) avails business owners the opportunity of reporting their costs on an ongoing basis (real time) which give details about the various cost of doing business, as well as the time spent on them respectively.
This ultimately implies that, TDABC gives entrepreneurs or employers all the necessary information on the actual cost of manufacturing, service delivery and other tasks associated with the business. Under the TDABC, the relationship between time and cost measurement is used to determine the cost price of goods and services.
Time-driven activity-based costing (TDABC) does not assume employees will self-report idle time but it overcomes some important limitations of activity-based costing (ABC) because it can be used by both the employees and their employers.
Tax evasion versus tax avoidance
Money Management and Tax Planning
Money management includes effective tax planning. Your financial plan should include ways to lower your tax liability so you have more money to spend, invest, or donate. The key to effective tax planning is to reduce your taxable income, rather than your gross income, through all appropriate and legally available opportunities.
The act of reducing taxes by deliberately understating income or overstating deductions is called ______
Tax evasion or tax avoidance?
Ayesha is preparing her tax return for the year and is looking at ways to save on her tax bill Ayer women ur time in the day and tended bar at night. Her daytime employer reported her income for her job, but her tips from tending bar at night were not reported to the IRS. Ayesha is thinking about leaving the tip earnings out of her income on her tax return. Is this tax evasion or tax avoidance?
Tax avoidance
Tax evasion
Answer:
1. The act of reducing taxes by deliberately understating income or overstating deductions is called ______
Tax evasion
2. Leaving the tip earnings out of her income on her tax returns is
Tax evasion
Explanation:
Tax evasion is deliberate reduction of gross income either by excluding, understating, omitting income, or overstating deductions. It is not legal. Tax avoidance is managing taxable income by effective tax planning (e.g. through investments, insurance, etc.) so that less tax is paid. It is legal and allowed.
A firm has $800 in inventory, $1,400 in fixed assets, $500 in accounts receivables, $100 in net working capital, and $50 in cash. What is the amount of the current liabilities
Answer:
Add it all Together?
Explanation:
2850?
Speedy Delivery Company purchases a delivery van for $36,000. Speedy estimates that at the end of its four-year service life, the van will be worth $6,400. During the four-year period, the company expects to drive the van 148,000 miles.
Required:
Calculate annual depreciation for the first two years using each of the following methods. Round all amounts to the nearest dollar.
1. Straight-line.
2. Double-declining-balance.
3. Activity-based.
Actual miles driven each year were 40,000 miles in year 1 and 46,000 miles in year 2.
Answer:
Straight line method
Year 1. $7,400
Year 2. $7,400
Double - Declining Balance method
Year 1= 18,000
Year 2= 9,000
Activity Based method
Year 1= 8,000
Year 2=9,200
Explanation:
Calculation for the annual depreciation for the first two years using Straight line method for year 1 & 2
STRAIGHT LINE METHOD
Year 1 =(36,000 - 6400) / 4 year
Year 1 =29,600/4 year
Year 1= 7,400
Year 2 =(36,000 - 6400) / 4 year
Year 2 =29,600/4 year
Year 2= 7,400
Calculation for the annual depreciation for the first two years using Double - Declining Balance method
DOUBLE DECLINE BALANCE METHOD
Year 1= (2/4) x (36,000 - 0)
Year 1= (2/4) x 36,000
Year 1= 18,000
Year 2= (2/4) x (36,000 - 18,000)
Year 2= (2/4) x18,000
Year 2= 9,000
Calculation for the annual depreciation for the first two years using Activity Based method
ACTIVITY BASED METHOD
Year 1= [ (36,000 - 6,400) / (148,000) ] x (40,000 miles)
Year 1=( 29,600/148,000)×40,000 miles
Year 1=0.2×40,000 miles
Year 1= 8,000
Year 2= [ (36,000 - 6,400) / (148,000) ] x (46,000 miles)
Year 2 =(29,600/148,000)×46,000 miles
Year 2=0.2×46,000 miles
Year 2 = 9,200
Therefore the annual depreciation for the first two years is:
Straight line method
Year 1. $7,400
Year 2. $7,400
Double - Declining Balance method
Year 1= 18,000
Year 2= 9,000
Activity Based method
Year 1= 8,000
Year 2=9,200
For the current year, Power Cords Corp. expected to sell 42,000 industrial power cords. Fixed costs were expected to total $1,650,000; unit sales price was expected to be $3,750; and unit variable costs were budgeted at $2,250. Power Cords Corp.'s margin of safety (MOS) in units is:
A. 40,900.
B. 48,800
C. 39,000.
D. 32,500.
E. 36,100.
Answer:
A. 40,900
Explanation:
Calculation for what Power Cords Corp.'s margin of safety (MOS) in units is:
First step is to calculate the Break-even
Break-even units = $1,650,000/($3,750 - $2,250)
Break-even units= 1,100 units
Now let calculate the margin of safety (MOS) in units
Margin of Safety = 42,000 - 1,100
Margin of Safety= 40,900 units
Therefore Power Cords Corp.'s margin of safety (MOS) in units is:40,900
Which is a true statement?
O A real interest rate that is equal to current inflation is desirable,
O A real interest rate that is higher than current inflation is desirable,
O A nominal interest rate that is equal to current inflation is desirable,
O A nominal interest rate that is lower than current inflation is desirable
Answer:
O A real interest rate that is higher than current inflation is desirable,
Explanation:
The real rate is the nominal rate of interest after considering the inflation rate. The nominal rate is the interest rate quoted by financial institutions. It shows the percentage of return expected on a deposit or loan. The inflation rate communicates the rate at which prices are increasing in the economy.
The real rate is equivalent to the nominal minus the inflation rate. An ideal situation is when the real rate is higher than the inflation rate. In such a situation, the rate of money growth is higher than the price increases. It means the invested amount will increase in value. At the end of a period, the invested amounts will buy more goods and services than
Answer:
A real interest rate that is higher than current inflation is desirable.
Explanation:
I did the test and got it right.
Which of the following illustrates economies of scale , diseconomies of scale , and constant returns to scale ?
Liza's average total cost changes from $4.50 to $2.20 when she increases salad production from 7 to 9 an hour. Sam's average total cost changes from $1.30 to $2.80 when he increases smoothie production from 5 to 8 gallons an hour. Tina's average total cost remains at $3 when she increases pizza production from 12 to 13 an hour.
a. Sam faces economies of scale; Liza faces diseconomies of scale; Tina faces constant returns to scale.
b. Sam faces economies of scale; Tina faces diseconomies of scale; Liza faces constant returns to scale.
c. Tina faces economies of scale; Sam faces diseconomies of scale; Liza faces constant returns to scale.
d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scal
Answer: d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale
Explanation:
Economies of scale occurs when the increase in production by companies brings about a reduction in cost. Diseconomies of scale is when a rise in production leads to an increase in cost as well. For a constant return to scale, the cost remains the same.
Therefore, the answer will be option D "Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale".
Use the following information to work Problems 8 and 9.
Consumer prices drop as falling oil costs push inflation lower Falling oil prices pushed the CPI down 0.1 percent in December 2015. Energy prices fell 2.4 percent and the price of gasoline fell by 3.9 percent.
Source: Los Angeles Times, January 20, 2016
Given the further information that the weight on energy prices in the CPI is 8 percent, by how much would the CPI have changed in December 2015 if energy prices had not changed?
Answer:
Change in CPI = 0.092%
Explanation:
As we know that ,
CPI - Consumer price index
As given,
CPI is fell down by 0.1%
the weight on energy prices in the CPI is 8%
If energy is not changed means energy is constant , then
Change in CPI = 0.1% - (0.1%)(8%)
= 0.001 - (0.001)(0.08)
= 0.001 - (0.00008)
= 0.00092
= 0.092%
⇒Change in CPI = 0.092%
Dmitri lives in Houston and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Dmitri does not operate this guitar business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom at the $15,000 per year rate. No other costs are incurred in running this guitar business.
Identify each of Charles's costs in the following table as either an implicit cost or an explicit cost of selling guitars.
a. The wages and utility bills that Charles pays
b. The wholesale cost for the guitars that Charles pays the manufacturer
c. The rental income Charles could receive if he chose to rent out his showroom
d. The salary Charles could earn if he worked as a financial advisor
Answer:
Implicit costs are opportunity costs. They are the cost of the next best alternative that one could have taken from the one they took.
Explicit costs are normal accounting costs which represent the expenses involved in running a business.
a. The wages and utility bills that Charles pays. EXPLICIT COSTS.
These are normal accounting expenses so they are explicit costs.
b. The wholesale cost for the guitars that Charles pays the manufacturer. EXPLICIT COSTS.
Another cost of doing business so this is explicit as well.
c. The rental income Charles could receive if he chose to rent out his showroom. IMPLICIT COST.
By not renting out his showroom and using it instead, he is losing the rental income he could be making so this is an implicit cost.
d. The salary Charles could earn if he worked as a financial advisor. IMPLICIT COST.
Another income he could be making if he wasn't selling guitars. This make it an implicit cost.
Choose the response that correctly completes the following sentence about the Harrisons' refund or balance due. The Harrisons will:
a. Receive a refund that is greater than $ 4,500 but less than $4,800
b. Receive a refund that is greater than $4,200 but less than $4,500
c. Have a balance due that is greater than $200 but less than $500
d. Have a balance due that is greater than $500 but less than $800
Answer:
ni
Explanation:
bnn
The following table describes the production possibilities of two cities in the country of Baseballia: Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per HourBoston 3 6Chicago 5 4Without trade, the price of a pair of white socks (in terms of red socks) in Boston is_______ of red socks, and in Chicago it is ___________ of red socks. _________has an absolute advantage in the production of red socks, and _________ has an absolute advantage in the production of white socks. ___________has a comparative advantage in the production of red socks, and______ has a comparative advantage in the production of white socks. If the cities trade with each other, Boston will export _________socks, and Chicago will export _________socks. The price of white socks can be expressed in terms of red socks. The highest price at which white socks can be traded that would make both cities better off is _________of red socks per pair of white socks, and the lowest price that makes both cities better off is ________of red socks per pair of white socks.
Answer:
1. (0.5 pairs of red socks) and (1.25 pairs of red socks)
2. (Chicago) and (Boston)
3. (Chicago) and (Boston)
4. (White socks) and (Red Socks)
5. (1.25) and (0.5)
Explanation:
Let's extract the meaning of data from the data given.
Boston produces 3 red socks per worker per hour and 6 white socks per worker per hour
B = 1 worker = 1 hour = produces 3 pairs Red Socks
B = 1 worker = 1 hour = produces 6 pairs white socks
Boston = whites socks in terms of red socks
6 white socks = 3 red socks
white socks = 3/6 red socks
white socks = 0.5 pairs of red socks. It means, Boston will be producing double the amount of white socks than red socks. Hence, white socks production advantage in Boston.
Chicago = white socks in terms of red socks
4 white socks = 5 red socks
white socks = 5/4 red socks
white socks = 1.25 red socks , it means Chicago will produce greater amount of red socks than white socks. Hence, red socks production advantage in Chicago.
C = 1 worker = 1 hour = produces 5 pairs Red socks
C = 1 worker = 1 hour = produces 4 pairs white socks
It means in Boston, we have advantage of producing white socks and in Chicago we have advantage of producing red socks.
Fill in the blanks:
1. (0.5 pairs of red socks) and (1.25 pairs of red socks)
2. (Chicago) and (Boston)
3. (Chicago) and (Boston)
4. (White socks) and (Red Socks)
5. (1.25) and (0.5)
Initially, suppose Bellissima uses 1 million hours of labor to produce rye and 3 million hours to produce jeans, while Dolorium uses 3 million hours of labor to produce rye and 1 million hours to produce jeans. Consequently, Dolorium produces 32 million pairs of jeans and 24 million bushels of rye, and Bellissima produces 72 million pairs of jeans and 12 million bushels of rye. Assume there are no other countries willing to trade goods, so in the absence of trade between these two countries, each country consumes the amount of rye and jeans it produces.
Dolorium's opportunity cost of producing one bushel of rye is_________ of jeans, and Bellissima's opportunity cost of producing one bushel of rye is _______ of jeans. Therefore, ________ has a comparative advantage in the production of rye and ________ has a comparative advantage in the production of jeans.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce_________ bushels, and the country that produces jeans will produce _____ pairs. In the table at the end of this problem, enter each country's production decision on the second row (marked "Production").
Answer:
Bellisima's opportunity cost:
Production of rye per million hours of labor = 24 / 12 = 2 pairs of jeans
Production of jeans per million hours of labor = 12 / 24 = 0.5 bushels of rye
Dolorium's opportunity cost:
Production of rye per million hours of labor = 32 / 8 = 4 pairs of jeans
Production of jeans per million hours of labor = 8 / 32 = 0.25 bushels of rye
Dolorium has a comparative advantage in the production of jeans while Bellisima has a comparative advantage in the production of rye.
If both countries specialize:
Bellisima will produce 48 million bushels of rye.
Dolorium will produce 128 million pairs of jeans.
Total production of rye has increased by 12 million bushels.
Total production of jeans has increased by 24 million pairs.
Culver Corporation was organized on January 1, 2022. It is authorized to issue 22,800 shares of 6%, $50 par value preferred stock and 468,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year.
Jan.10 Issued 74,000 shares of common stock for cash at $6 per share.
Mar.1 Issued 1,280 shares of preferred stock for cash at $54 per share.
May1 Issued 119,000 shares of common stock for cash at $5 per share.
Sept.1 Issued 5,800 shares of common stock for cash at $4 per share.
Nov.1 Issued 3,800 shares of preferred stock for cash at $60 per share.
Required:
Post to the stockholders' equity accounts.
Answer:
Date Account title and explanation Debit Credit
Jan-10 Cash (74,000*$6) $444,000
Common Stock (74,000*$3) $222,000
Paid in capital in excess of stated value $222,000
Mar-01 Cash (1,280*$54) $69,120
Preferred Stock (1,280*$50) $64,000
Paid in capital in excess of par value $5,120
May-01 Cash (119,000*$5) $595,000
Common Stock (119,000*$3) $357,000
Paid in capital in excess of stated value $238,000
Sep-01 Cash (5,800*$4) $23,200
Common Stock (5,800*$3) $17,400
Paid in capital in excess of stated value $5,800
Nov-01 Cash (3,800*$60) $228,000
Preferred Stock (3800*$50) $190,000
Paid in capital in excess of par value $38,000
Problems and Applications
The quantity of coffee sold rose sharply last month, while the price remained the same. Five people suggest various explanations:
Sean: Demand increased, but supply increased at the same time.
Yvette: Demand increased, but supply was perfectly elastic.
Bob: Demand increased, but supply was perfectly inelastic.
Cho: Supply increased, but demand was perfectly elastic.
Eric: Supply increased, but demand was unit elastic.
Who could possibly be right?
A. Brian.
B. Crystal.
C. Edison.
D. Hilary.
E. Kevin.
Answer:
Sean: Demand increased, but supply increased at the same time
Explanation:
An increase in demand would lead to a rise in the quantity of coffee sold. This would lead to an increase in price and quantity of coffee demanded.
A rise in supply of coffee would lead to an increase in the quantity of coffee and a decrease in price of coffee.
Taking these two effects together, the effect of an increase in demand which led to a rise in price of coffee and the increase in the supply of coffee which lead to a fall in price would cancel each other and price would remain unchanged.
Claremore Industries uses a weighted-average process-costing system. All materials are added at the beginning of the process; conversion costs are incurred evenly throughout production. The company finished 40,000 units during the period and had 15,000 units in progress at year-end, the latter at the 40% stage of completion. Total material costs amounted to $220,000; conversion costs were $414,000. The cost of the ending work in process is: Multiple Choice $54,000. $78,000. $114,000. $195,000. None of the answers is correct.
Answer:
$78,000
Explanation:
Calculation for The cost of the ending work in process
First step is to calculate the Material cost per unit.
Material cost per unit = $220,000 / (40,000+15,000)
Material cost per unit= $220,000 / 55,000
Material cost per unit= $4
Second step is to calculate the Conversion cost per unit
Conversion cost per unit= $414,000 / (40,000 + (15,000*40%)
Conversion cost per unit= $414000 / 46000
Conversion cost per unit= $9
Third step is to calculate total cost per equivalent unit
Total cost per equivalent unit= $4 + $9
Total cost per equivalent unit= $13
Fourth step is to calculate the equivalent unit of the ending work in process
Equivalent unit of the ending work in process= 15,000 × 40%
Equivalent unit of the ending work in process= 6,000
Now let calculate cost of the ending work in process
Cost of the ending work in process = 6,000 × $13
Cost of the ending work in process = $78,000
Therefore The cost of the ending work in process is $78,000
Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2020.
Activity Cost Pools Estimated Overhead Estimated Use of Cost Drivers per Activity Ordering and receiving$94,72012,800 orders Food processing 492,00060,000 machine hours Packaging 1,695,450445,000 labor hours For 2020, the company had 11,800 orders and used 51,100 machine hours, and labor hours totaled 497,000.
Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.)
Overhead Rates
Ordering and receiving
$Entry field with incorrect answer
per order
Food processing
$Entry field with correct answer
per machine hour
Packaging
$Entry field with correct answer
per labor hour
LINK TO TEXT
Spud, Inc. a manufacturer of gourmet potato chips,
Spud, Inc. a manufacturer of gourmet potato chips,
What is the total overhead applied?
Total overhead applied
$Entry field with incorrect answer now contains modified data
Digger Inc. sells a high-speed retrieval system for mining information. It provides the following information for the year.
Budgeted
Actual
Overhead cost $975,000 $950,000
Machine hours 50,000 45,000
Direct labor hours 100,000 92,000
Overhead is applied on the basis of direct labor hours.
Spud, Inc. a manufacturer of gourmet potato chips,
Spud, Inc. a manufacturer of gourmet potato chips,
Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 12.25.)
Predetermined overhead rate
$Entry field with incorrect answer now contains modified data
per direct labor hour
LINK TO TEXT
Spud, Inc. a manufacturer of gourmet potato chips,
Spud, Inc. a manufacturer of gourmet potato chips,
Determine the amount of overhead applied for the year.
Amount of overhead applied
$Entry field with incorrect answer now contains modified data
Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $150,000, $375,000, and $87,500, respectively. The cost driver for each activity and the expected annual usage are number of setups 2,500, machine hours 25,000, and number of inspections 1,750.
Compute the overhead rate for each activity.
Machine setups
$Entry field with correct answer
per setup
Machining
$Entry field with incorrect answer
per machine hour
Inspections
$Entry field with correct answer
per inspection
Answer:
a. Spud, Inc.
1. Overhead rates:
Ordering and receiving $7.40 ($94,720/12,800) per order
Food processing $8.20 (492,000/60,000)per machine hour
Packaging $3.81 (1,695,450/445,000) labor hour
2. Total overhead applied = $2,399,890
b. Digger Inc.
Overhead rate = $9.75 per DLH
Total overhead cost applied = $897,000
c. Morgana Company
Overhead rates:
Machine setups $60 ($150,000/2,500) per setup
Machining $15 ($375,000/25,000) per machine hour
Inspections $50 ($87,500/1,750) per inspection
Explanation:
a) Data and Calculations:
Spud, Inc. budgeted data:
Activity Cost Pools Estimated Estimated Use of Cost Drivers
Overhead per Activity
Ordering and receiving $94,720 12,800 orders
Food processing 492,000 60,000 machine hours
Packaging 1,695,450 445,000 labor hours
Actual data:
Actual orders = 11,800
Machine hours = 51,100
Labor hours = 497,000
Overhead rates for each activity:
Ordering and receiving $94,720/12,800 = $7.40 per order
Food processing 492,000/60,000 = $8.20 per machine hour
Packaging 1,695,450/445,000 = $3.81 labor hour
Actual data:
Actual orders = 11,800 * $7.40 = $87,320
Machine hours = 51,100 * $8.20 = 419,020
Labor hours = 497,000 * $3.81 = 1,893,570
Total overhead applied = $2,399,890
Digger Inc:
Budgeted Actual
Overhead cost $975,000 $950,000
Machine hours 50,000 45,000
Direct labor hours 100,000 92,000
Overhead is applied on the basis of direct labor hours
Overhead rate = $975,000/100,000 = $9.75 per DLH
Total overhead cost applied = $897,000 (92,000 * $9.75)
Morgana Company:
Activity Cost Pool Estimated Overhead Cost Driver
Machine setups $150,000 2,500 number of setups
Machining 375,000 25,000 machine hours
Inspections 87,500 1,750 number of inspections
Overhead rates:
Machine setups $60 ($150,000/2,500) per setup
Machining $15 ($375,000/25,000) per machine hour
Inspections $50 ($87,500/1,750) per inspection
Swifty Corporation’s weekly payroll of $22,000 included FICA taxes withheld of $1,683, federal taxes withheld of $2,940, state taxes withheld of $840, and insurance premiums withheld of $230. Prepare the journal entry to record Swifty’s payroll. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
Date Account Titles and Explanation Debit Credit
Salaries Wages expense $22,000
Cash $16,307
Withholding taxes payable (2940+840) $3,780
FICA taxes payable $1,683
Insurance premiums payable $230
(To record Swifty’s payroll)
Schedule of Cost of Goods Manufactured and Sold
The following amounts are available for 2016 for Bourne Manufacturing Company:
Administrative salaries (non-factory) $105,000
Administrative rent (non-factory) 52,500
Advertising and promotion expense 61,500
Depreciation-administrative 33,000
Depreciation-factory 45,000
Depreciation-selling 25,500
Direct labor 262,500
Factory rent 27,000
Factory supplies used 18,000
Finished goods inventory (January 1) 85,500
Finished goods inventory (December 31) 78,000
Indirect material used 21,000
Indirect labor 28,500
Materials inventory (January 1) 19,500
Materials inventory (December 31) 30,000
Net delivered cost of materials purchased 207,000
Other factory overhead 39,000
Sales 1,267,500
Sales salaries expense 108,000
Work in process inventory (January 1) 27,000
Work in process inventory ( December 31) 46,500
Using the above data, prepare a schedule of cost of goods manufactured and sold.
Do not use negative signs with any of your answers.
Bourne Manufacturing Company
Schedule of Cost of Goods Manufactured and Sold
For the Year Ended December 31,2016
Direct material:
Beginning materials inventory Answer
Answer Answer
Cost of material available Answer
Less: Answer Answer
Total materials used Answer
Less: Answer Answer
Direct material used Answer
Direct labor Answer
Manufacturing overhead
Indirect material Answer
Indirect labor Answer
Factory supplies used Answer
Factory depreciation Answer
Factory rent Answer
Answer Answer
Total manufacturing overhead Answer
Total manufacturing costs for the year Answer
Add: Answer Answer
Total cost of work in process during the year Answer
Less: Answer Answer
Cost of goods manufactured Answer
Add: Answer Answer
Cost of goods available for sale Answer
Less: Answer Answer
Cost of goods sold Answer
Answer:
Answer:
Cost of goods sold Answer 604,500
Explanation:
Bourne Manufacturing Company
Schedule of Cost of Goods Manufactured and Sold
For the Year Ended December 31,2016
Direct material:
Beginning materials inventory Answer (January 1) 19,500
Net delivered cost of materials purchased 207,000
Cost of material available Answer : 226500
Less: Materials inventory (December 31) 30,000
Total materials used Answer 196500
Less: Indirect material used 21,000
Direct material used Answer 175,500
Direct labor Answer 262500
Manufacturing overhead
Other Factory Overhead 39000
Indirect material Answer 21000
Indirect labor Answer 28500
Factory supplies used Answer 18000
Factory depreciation Answer 45000
Factory rent Answer 27000
Total manufacturing overhead Answer 178500
Total manufacturing costs for the year Answer 616500
Add: Work in process inventory (January 1) 27,000
Total cost of work in process during the year 643,500
Less: Work in process inventory ( December 31) 46,500
Cost of goods manufactured 597000
Add: Finished goods inventory (January 1) 85,500
Cost of goods available for sale Answer 682,500
Less: Finished goods inventory (December 31) 78,000
Cost of goods sold Answer 604,500
We add and subtract the amounts according to the schedule.
In this schedule the indirect material is deducted from the direct materials inventory and added to the factory overhead because it is not treated as a direct expense rather it is an indirect expense.
The following are not related to the cost of manufacturing of products and are excluded from the CGS.
Administrative salaries (non-factory) $105,000
Administrative rent (non-factory) 52,500
Advertising and promotion expense 61,500
Depreciation-administrative 33,000
Depreciation-selling 25,500
Sales 1,267,500
Sales salaries expense 108,000
These are included in the net income statement.
who is the billionair peson in the whole world?
i'll gave 50 points
Answer:
Thank you very much
Explanation:
Hello
You paid $100 for a ticket to the Broadway show Hamilton, for which your value of
attending is $250. In NYC the day the show, you legally sell your ticket on the secondary
market for $1,000. This is an example of?
Answer:
avoiding the hidden or sunk cost fallacy.
Explanation:
The hidden or sunk cost fallacy refers to not realizing that a sunk cost has occurred and no matter what you do, you will not recover it or in this case, enjoy it. A classic example are all you can eat buffets and people simply eating too much because they paid for it.
In this case, if you had not sold the ticket and not earned the profit, you would have incurred in the sunk cost fallacy by not recognizing that you could benefit more from selling the ticket instead of just insisting on going to see the play.
Discuss the economic landscape in Philippines?
Answer:
Low economic mobility, poverty and income inequality, poor health care and nutrition.
Explanation:
Denver Mart is considering a project with a life of 5 years and an initial cost of $136,000. The discount rate is 11 percent. The firm expects to sell 2,200 units a year with a cash flow per unit of $26. The firm will have the option to abandon this project after 3 years at which time it expects it could sell the project for $48,000. The firm is interested in knowing how the project will perform if the sales forecast for Years 4 and 5 of the project are revised such that there is a probability of 50 percent that the sales will be 1,000 units and a probability of 50 percent they will be 2,500 units a year. What is the net present value of this project given your sales forecasts?
Answer:
Denver Mart
The net present value of this project given the sales forecasts is:
= $98,400.40
Explanation:
a) Data and Calculations:
Project's estimated life = 5 years
Initial project cost = $136,000
Discount rate = 11%
Initial estimated sales = 2,200 at $26
Revenue in years 1, 2, and 3 each = 2,200 * $26 = $57,200
Sales forecast of Year 4 and 5 revised to 1,750 units
Probability of 1,000 * 50% = 500
Probability of 2,500 * 50% 1,250
Total sales forecast = 1,750 units
Revenue in years 4 and 5 each = 1,750 * $26 = $45,500
Present value of revenue:
Year 1, 2, and 3 = $57,200 * Annuity factor
= $57,200 * 3.102 = $177,434.40
Year 4, PV = $45,500 * 0.659 = $29,984.50
Year 5, PV = $45,500 * 0.593 = $26,9815
Year 1 to 5 added = $234,400.40
Present value of revenue = $234,400.40
Present value of costs = 136,000.00
Net present value = $98,400.40
Makers Corp. had additions to retained earnings for the year just ended of $298,000. The firm paid out $178,000 in cash dividends, and it has ending total equity of $4.83 million. The company currently has 140,000 shares of common stock outstanding.
What are earnings per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Earnings $ per share
What are dividends per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Dividends $ per share
What is the book value per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Book value $ per share
If the stock currently sells for $70 per share, what is the market-to-book ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Market-to-book ratio times
What is the price-earnings ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16.)
Price-earnings ratio times
If the company had sales of $4.27 million, what is the price-sales ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Price-sales ratio times
Answer:
Makers Corp.
a. Earnings per share = $3.40
b. Dividends per share = $1,27
c. Book value per share = $34.50
d. Market to book ratio times = 2.03 times
e. Price-earnings ratio times = 20.59 times
f. Price-Sales ratio times = 2.30 times
Explanation:
a) Retained Earnings = $298,000
Cash Dividends paid = $178,000
Total earnings = $ 476,000 ($298,000 + $178,000)
Ending total equity = $4.83 million
Outstanding common stock = 140,000 shares
Earnings per share = $476,000/140,000 = $3.40 per share
Dividends per share = $178,000/140,000 = $1.27 per share
Book value per share = $4.83 million/140,000 = $34.50
Market-to-book ratio = $70/$34.50 = 2.03 : 1
Price-earnings ratio = $70/$3.40 = 20.59 : 1
Sales per share = $4.27 million /140,000 shares = $30.50
Price-sales ratio = $70/$30.50 = 2.30 : 1
Suppose Becky earns $650 per week working as an analyst for A-plus Accountants. She uses $10 to order a mojito cocktail at Little Havana. Little Havana pays Alex $250 per week to wait tables. Alex uses $250 to purchase tax services from A-Plus Accountants.
Identify whether each of the following events in this scenario occurs in the resource market or the product market.
a. Alex earns $250 per week working for Little Havana. (Resource Market / Product Market)
b. Becky spends $10 to order a mojito cocktail. (Resource Market / Product Market)
c. Becky earns $650 per week working for A-Plus Accountants. (Resource Market / Product Market)
Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of dollars, inputs, or outputs. Check all that apply.
( ) The mojito Becky receives
( ) The $250 Alex spends to purchase tax services from A-Plus Accountants
( ) The $250 per week Alex earns working for Little Havana
( ) Becky's labor
Answer:
Resource Market or Product Market
1. Identifying whether each of the following events in this scenario occurs in the resource market or the product market:
a. Alex earns $250 per week working for Little Havana. (Resource Market / Product Market)
b. Becky spends $10 to order a mojito cocktail. (Resource Market / Product Market)
c. Becky earns $650 per week working for A-Plus Accountants. (Resource Market / Product Market)
2. The elements of this scenario that represent a flow from a household to a firm are:
a. The $250 Alex spends to purchase tax services from A-Plus Accountants.
b. Becky's labor
Explanation:
The resource market is the market where firms buy resources for the production of goods and services. This means that the resource market deals in the transfer of inputs: labor, capital, land, and entrepreneurship from households to firms. In the product market, households buy output, i.e. goods and services from firms.
Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2017 with three assets: cash of 28,200 dinars, accounts receivable of 82,000 dinars, and land that cost 220,000 dinars when acquired on April 1, 2016. On January 1, 2017, Zugar has a 170,000 dinar note payable, and no other liabilities. On May 1, 2017, Zugar renders services to a customer for 140,000 dinars, which was immediately paid in cash. On June 1, 2017, Zugar incurred a 120,000 dinar operating expense, which was immediately paid in cash. No other transactions occurred during the year. Currency exchange rates for 1 dinar follow:
April 1, 2016 $0.53 = 1 dinar
January 1, 2017 0.56 = 1
May 1, 2017 0.57 = 1
June 1, 2017 0.59 = 1
December 31, 2017 0.61 = 1
Assume that Zugar is a foreign subsidiary of a U.S. multinational company that uses the U.S. dollar as its reporting currency. Assume also that the dinar is the subsidiary’s functional currency. What is the translation adjustment for this subsidiary for the year 2017?
Assume that Zugar is a foreign subsidiary of a U.S. multinational company that uses the U.S. dollar as its reporting currency. Assume also that the U.S. dollar is the subsidiary’s functional currency. What is the remeasurement gain or loss for 2017?
Assume that Zugar is a foreign subsidiary of a U.S. multinational company. On the December 31, 2017, balance sheet, what is the translated value of the Land account? On the December 31, 2017, balance sheet, what is the remeasured value of the Land account?
(Input all amounts as positive.)
Answer:
Accounts Amount (in Dinar)
Cash_________________28,000
Accounts Receivable_____82,000
Land________________220,000
Total Assets__________330.000
Less: Notes Payable___(170,000)
Net Assets___________160,000
The translation adjustment for this subsidiary for the year 2017?
Particulars Amount in Dinar Translation Rate Amount in Dollar
Net assets, 1/1_______160,000__________0.50_______80,000
Add: Rendered services_140,000________0.57________79,000
Less: Incurred expense _(120,000)________0.59_______(70,800)
Net assets, 12/31_______180.000___________________88,200
Net assets, 12/31 at current__180,000______0.61_______109.800
Translation adjustment (positive) ____________________(21,600)
What is the remeasurement gain or loss for 2017
Particulars Amount in Dinar Translation Rate Amount in Dollar
Net Monetary Asset, 1/1 __28,000________0.56_______15,680.00
Add: Rendered services_140,000________0.57________79,000
Less: Incurred expense _(120,000)________0.59_______(70,800)
Add:Accounts Receivable_80,000________0.56______44,800
Less: Accounts Payable_(170,000)________0.56_____(95,200)
Net monetary assets, 12/31_(42,000)______________(26,540.00)
Net monetary assets, 12/31 at current exchange rate
(42,000)_________0.61____(25,620)
Remeasurement gain - - 920.00
Translated value of land is $134,200 ( derived from 220,000 dinar x 0.61)
Remeasured value of land is $116,600 (derived from 220,000 dinar x 0.53)
Explanation:
Accounts Amount (in Dinar)
Cash_________________28,000
Accounts Receivable_____82,000
Land________________220,000
Total Assets__________330.000
Less: Notes Payable___(170,000)
Net Assets___________160,000
The translation adjustment for this subsidiary for the year 2017?
Particulars Amount in Dinar Translation Rate Amount in Dollar
Net assets, 1/1_______160,000__________0.50_______80,000
Add: Rendered services_140,000________0.57________79,000
Less: Incurred expense _(120,000)________0.59_______(70,800)
Net assets, 12/31_______180.000___________________88,200
Net assets, 12/31 at current__180,000______0.61_______109.800
Translation adjustment (positive) ____________________(21,600)
What is the remeasurement gain or loss for 2017
Particulars Amount in Dinar Translation Rate Amount in Dollar
Net Monetary Asset, 1/1 __28,000________0.56_______15,680.00
Add: Rendered services_140,000________0.57________79,000
Less: Incurred expense _(120,000)________0.59_______(70,800)
Add:Accounts Receivable_80,000________0.56______44,800
Less: Accounts Payable_(170,000)________0.56_____(95,200)
Net monetary assets, 12/31_(42,000)______________(26,540.00)
Net monetary assets, 12/31 at current exchange rate
(42,000)_________0.61____(25,620)
Remeasurement gain - - 920.00
Translated value of land is $134,200 ( derived from 220,000 dinar x 0.61)
Remeasured value of land is $116,600 (derived from 220,000 dinar x 0.53)
Your generous grandmother has just announced that she’s opened a savings account for you with a deposit of $10,000. Moreover, she intends to make you 9 more similar gifts, at the end of this year, next year, etc. If the savings account pays 8% interest, how much will you have
accumulated at the end of 10 years (one year after the last gift)?
Answer:
$156,454.87
Explanation:
Future Value of an annuity due: FV = Pmt x ((1+r)n -1))/r) x (1+r)
When Payment per period (PMT) = $10,000, Discount Rate per period= 8%,Number of periods (n) = 10
Future Value = $10,000 * ((1+0.08)^10 -1))/0.08) * 1.08
Future Value = $10,000 * [(1.08)^10 - 1 ]/ 0.08 * 1.08
Future Value = $10,000 * 2.15892499727-1/0.08 * 1.08
Future Value = $10,000 * 1.15892499727/0.08 * 1.08
Future Value = $10,000 * 14.486562465875 * 1.08
Future Value = 156454.87463145
Future Value = $156,454.87
The worth of a collection of regular payments at a future date, assuming a given discount rate, or rate of return (ROR) is called the future value of an annuity. (FAPThe present value (PV) of an annuity is the amount of money required to fund a series of future annuity payments (FAP) today.
COMPUTATION OF FUTURE VALUE OF ANNUITY DUE:
[tex]\text{Future Value of an annuity due (FV)} =[ \frac{\text{Pmt} \text{ x } ((1+r)^{n}}{r} -1] \text{ x } (1+r)[/tex]
[tex]\text{Where,}\\\text{Payment per period (PMT)} = 10,000, \\\text{Discount Rate per period(r)} = 0.08,\\\text{Number of periods (n)} = 10[/tex]
[tex]\text{(FV)} =[ \frac{\ 10,000 \text{ x } ((1+0.08)^{10}}{0.08} -1] \text{ x } (1+0.08)[/tex]
[tex]\text{(FV)} =[ \frac{\ 10,000 \text{ x } ((1.08)^{10}}{0.08} -1] \text{ x } (1.08)[/tex]
[tex]\text{(FV)} =[ \frac{\ 10,000 \text{ x } 2.1589}{0.08} -1] \text{ x } (1.08)[/tex]
[tex]\text{(FV)} =[ \frac{\ 10,000 \text{ x } 1.15892499727}{0.08} ] \text{ x } (1.08)[/tex]
[tex]\text{(FV)} =[ 10,000 \text{ x } 14.486562465875} ] \text{ x } (1.08)[/tex]
[tex]\text{(FV)} = 156454.87463145[/tex]
[tex]\text{Future Value} = 156,454.87[/tex]
Therefore, the accumulated amount at the end of 10 years is $156,454.87.
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Suppose that at a local farmers' market there are a large number of vegetable sellers. Some sell zucchini, some sell broccoli, some sell Brussels sprouts, and so on. This week, the zucchini sellers decide to gang together and fix the price of zucchini at a price higher than they would sell otherwise. Which of the following statements is most likely true?
a. The zucchini sellers will not sell any zucchini.
b. The zucchini sellers will be able to earn a lot more money.
c. The zucchini sellers have limited market power because consumers have many alternatives.
d. The zucchini sellers will enjoy a large degree of market power.
Answer: c. The zucchini sellers have limited market power because consumers have many alternatives.
Explanation:
As the Zucchini sellers have fixed the price such that it is the same for all of them, they will have market power in the sale of Zucchini.
In terms of the whole market however, they will have only limited power because even though they control the pricing of Zucchini, there are other alternatives there that they do not control and can be switched to by other consumers.
The true statement is the zucchini sellers have limited market power because consumers have many alternatives.
What is a monopolistic competition?A monopolistic competition is when there are plenty sellers of unidentical goods and services in an industry.
A monopolistic competition has characteristics of both a monopoly and a perfect competition. The demand curve in a monopolistic competition is downward sloping.
Broccoli is a substitute for zucchini. So, if zucchini sellers increase the price of their good, consumers can begin to consumer more broccoli.
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Simon Company’s year-end balance sheets follow.
At December 31 Current Yr 1 Yr Ago 2 Yrs Ago
Assets
Cash $31,800 $35,625 $37,800
Accounts receivable, net 89,500 62,500 50,200
Merchandise inventory 112,500 82,500 54,000
Prepaid expenses 10,700 9,375 5,000
Plant assets, net 278,500 255,000 230,500
Total assets $523,000 $445,000 $377,500
Liabilities and Equity:
Accounts payable $129,900 $75,250 $51,250
Long-term notes payable secured by
mortgages on plant assets 98,500 101,500 83,500
Common stock, $10 par value 163,500 163,500 163,500
Retained earnings 131,100 104,750 79,250
Total liabilities and equity $523,000 $445,000 $377,500
Required:
a. Express the balance sheets in common-size percents.
b. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable?
c. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable?
Answer:
Simon Company
a. Expressing the balance sheets in common-size percents:
Simon Company's Year-end Balance Sheet:
At December 31 Current Yr % 1 Yr Ago % 2 Yrs Ago %
Assets
Cash $31,800 6% $35,625 8% $37,800 10%
Accounts receivable, net 89,500 17% 62,500 14% 50,200 13.3%
Merchandise inventory 112,500 22% 82,500 19% 54,000 14.3%
Prepaid expenses 10,700 2% 9,375 2% 5,000 1.3%
Plant assets, net 278,500 53% 255,000 57% 230,500 61.1%
Total assets $523,000 100% $445,000 100% $377,500 100%
Liabilities and Equity:
Accounts payable $129,900 25% $75,250 17% $51,250 14%
Long-term notes payable 98,500 19% 101,500 23% 83,500 22%
Common stock, $10
par value 163,500 31% 163,500 37% 163,500 43%
Retained earnings 131,100 25% 104,750 23% 79,250 21%
Total liabilities & equity $523,000 100% $445,000 100% $377,500 100%
b. The change in accounts receivable has been unfavorable. It has increased year on year, showing that the management has not improved on its collection policies and practices. This conclusion is based on the assumption that annual sales have not changed in the last three years.
c. The change in merchandise inventory has been unfavorable. It has increased in its percentages over total assets over the last three years. It shows that the management is increasingly keeping excess inventory. Again, this conclusion is based on the assumption that annual sales have not changed in the last three years.
Explanation:
a) Data and Calculations:
Simon Company's Year-end Balance Sheet:
At December 31 Current Yr 1 Yr Ago 2 Yrs Ago
Assets
Cash $31,800 $35,625 $37,800
Accounts receivable, net 89,500 62,500 50,200
Merchandise inventory 112,500 82,500 54,000
Prepaid expenses 10,700 9,375 5,000
Plant assets, net 278,500 255,000 230,500
Total assets $523,000 $445,000 $377,500
Liabilities and Equity:
Accounts payable $129,900 $75,250 $51,250
Long-term notes payable 98,500 101,500 83,500
Common stock, $10
par value 163,500 163,500 163,500
Retained earnings 131,100 104,750 79,250
Total liabilities & equity $523,000 $445,000 $377,500
b) The common-size percents are determined by taking a balance sheet account and expressing it as percentage of the total assets. For example, the common stock for the current year is $163,500. When this is expressed as a percentage of total assets, which is equal to total liabilities and equity, we have it as 31% ($163,500/$523,000 * 100) approximately.
a. The balance sheet of Simon Company is expressed in common-size percentages.
b. The shift in accounts receivable has been negative. It has risen year after year, indicating that management has not changed its collection policies and practices.
c. The merchandise inventory change has been unfavorable. Over the last three years, its percentage of total assets has risen. It demonstrates that management is progressively stockpiling excess goods.
a. Expressing the balance sheets in common-size percentages:
Simon Company's Year-end Balance Sheet:
At December 31 Current Yr % 1 Yr Ago % 2 Yrs Ago %
Assets
Cash $31,800 6% $35,625 8% $37,800 10%
Accounts receivable, net 89,500 17% 62,500 14% 50,200 13.3%
Merchandise inventory 112,500 22% 82,500 19% 54,000 14.3%
Prepaid expenses 10,700 2% 9,375 2% 5,000 1.3%
Plant assets, net 278,500 53% 255,000 57% 230,500 61.1%
Total assets $523,000 100% $445,000 100% $377,500 100%
Liabilities and Equity:
Accounts payable $129,900 25% $75,250 17% $51,250 14%
Long-term notes payable 98,500 19% 101,500 23% 83,500 22%
Common stock, $10
par value 163,500 31% 163,500 37% 163,500 43%
Retained earnings 131,100 25% 104,750 23% 79,250 21%
Total liabilities & equity $523,000 100% $445,000 100% $377,500 100%
For expressing the common-size percentage the amount for total asset is taken as base value.
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Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 6,400 Variable costs per unit: Direct materials $ 60 Direct labor $ 54 Variable manufacturing overhead $ 4 Variable selling and administrative expense $ 17 Fixed costs: Fixed manufacturing overhead $ 236,800 Fixed selling and administrative expense $ 492,800 There were no beginning or ending inventories. The absorption costing unit product cost was:
Answer:
$155 per unit
Explanation:
Calculation for what The absorption costing unit product cost was:
Using this formula
Absorption costing unit product cost = Direct material + Direct labour + Variable manufacturing overheads + (Fixed manufacturing overheads / Number of units produced)
Let plug in the formula
Absorption costing unit product cost = $60+ $54+ $4 + ( $ 236,800/6,400 )
Absorption costing unit product cost =$60+ $54+ $4 + $37
Absorption costing unit product cost = $155 per unit
Therefore The absorption costing unit product cost was:$155 per unit
Okay party tray which cost $14 to make not including labor was sold for $35 if two people work 8-hour shift make it the tree $7 per hour how many tree must be sold to cover all costs including labor
Answer:
2.67 trays
Explanation:
Calculation for how many trays must be sold to cover all costs including labor
First step is to calculate the Total Labor
Total labor = $7 per hour*8-hour shift
Total labor=56
Second step is to the profit per tray
Profit per tray=$35-$14
Profit per tray=$21
Now let calculate how many trays must be sold
Using this formula
Numbers of trays to be sold=Total labor/Profit per tray
Let plug in the formula
Numbers of trays to be sold=56/21
Numbers of trays to be sold=2.67 trays
Therefore the numbers of trays that must be sold to cover all costs including labor is 2.67 trays
