Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 36,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $82,100 consisted of $58,000 of direct materials costs and $24,100 of conversion costs.
During the month, the forming department started 520,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 85% complete as to materials and 35% complete as to conversion. Units completed in the forming department are transferred to the painting department. Cost information for the forming department is as follows:
Beginning work in process inventory $82,100
Direct materials added during the month 1,942,930
Conversion added during the month 1,359,730
1A. Calculate the equivalent units of production for the forming department.
1B. Calculate the costs per equivalent unit of production for the forming department.
1C. Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory.
Answers
Answer:
Please see attached detailed solution
Explanation:
1a. Direct material 550,000
Conversion 530,000
1b. Direct materials $3.64 per EUP
Conversion $2.61 per EUP
1c. Costs assigned to the forming department's output
• Total cost of ending work in process $160,300
• Total costs assigned $3,384,760
Please see attached detailed solution to the above questions and answers.
Related Questions
The Hifalutin Co. has perpetual EBIT of $3,000. It has no debt in its capital structure, and its cost of equity is 15%. The corporate tax rate is 40%. There are 300 shares outstanding. Hifalutin has announced that it will borrow $3,750 in perpetual debt at 8% and use the proceeds to buy up stock. How many shares will be purchased
Answers
Answer:
The right answer is "56 shares".
Explanation:
According to the question,
Earning per share is:
= [tex]\frac{3000}{300}[/tex]
= $[tex]10[/tex]
PE ratio will be:
= [tex]\frac{1}{ke}[/tex]
= [tex]\frac{1}{15}[/tex]
= [tex]6.67[/tex]
Market price at every share will be:
= [tex]PE \ ratio\times EPS[/tex]
= [tex]6.67\times 10[/tex]
= [tex]66.7 \ Per \ share[/tex] ($)
Now,
The number of purchased shares will be:
= [tex]\frac{borrow}{market \ price \ per \ share}[/tex]
= [tex]\frac{3750}{66.7}[/tex]
= [tex]56.22[/tex]
i.e.,
= [tex]56 \ shares[/tex]
Bernie and Phil's Great American Surplus store placed an ad in the Sunday Times stating, "Next Saturday at 8:00 A.M. sharp 3 brand new mink coats worth $5,000 each will be sold for $500 each! First come, First served." Marsha LufMin was first in line when the store opened and went directly to the coat department, but the coats identified in the ad were not available for sale. She identified herself to the manager and pointed out that she was first in line in conformity with the store's advertised offer and that she was ready to pay the $500 price set forth in the store's offer. The manager responded that a newspaper ad is just an invitation to negotiate and that the store decided to withdraw "the mink coat promotion." Review the text on unilateral contracts in Section 12(b) of Chapter 12. Decide.
Answers
Answer:
This technique is called "bait and switch", it is illegal and is considered false advertising. A seller cannot falsely advertise a product and then simply say that they do not have it on stock. It is a type of sales fraud and it is prohibited by the Lanham Act.
In order for this situation to be considered legal, the seller must have advertised and sold a certain amount of coats, but it didn't sell any. I.e. the seller runs out of stock because it already sold the 3 coats.
This activity is important because as world trade has grown, more companies have entered the global market. Once a firm decides to enter the global market, it must choose which means of market entry is the most appropriate. The global market entry strategies vary greatly on the dimensions of financial commitment, risk, marketing control, and profit potential.
The goal of this exercise is to demonstrate your understanding of the different types of global market entry strategies: exporting, licensing, joint venture, and direct investment. Roll over each company name to read the description of the firm's strategy, then drop it onto the correct global market entry strategy within the graphic.
1. Yoplait
2. Moodmatcher lipstick
3. McDonald's
4. Ericsson and CGCT
5. Boeing
6. Nissan
A. Indirect Exporting
B. Direct Exporting
C. Licensing
D. Franchising
E. Joint Venture
F. Direct Investment
Answers
Answer:
Throughout the clarification subsection below, the definition of the questionnaire provided is defined.
Explanation:
Indirect Exporting and Moodmatcher lipstickRationale: A organization like Moodmatcher lipstick manufactures the understood as a tool and promotes this through an intermediary throughout numerous governments or foreign.
Direct Exporting and BoeingRationale: A business including Boeing creates the goods domestically which exports anything without an intermediary throughout foreign nations.
Licensing and YoplaitRationale: In return for royalty as well as the fee, a business like Yoplait sells the rights to copyright, trademark, proprietary information, and perhaps other prized intellectual property.
Franchising and McDonald'sRationale: Companies including McDonald's are licensed to launch new franchises which are one of the quickest expanding methods for market entry.
Joint Venture Ericsson and CGCTRationale: The Swedish networking group Ericsson has entered into a joint venture partner CGCT, another French switching group.
Direct Investment and NissanRationale: A domestic company such as Nissan invests in some kind of an international subsidiary and retains it.
Major League Bat Company manufactures baseball bats. In addition to its goods in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and direct labor and factory overhead are applied uniformly throughout the production process.Required:You are to maintain records and produce measures of inventories to reflect the July events of this company. The June 30 balances are as follows: Raw Materials Inventory, $25,000; Goods in Process Inventory, $10,520 ($2,800 of direct materials, $3,800 of direct labor, and $3,920 of overhead); Finished Goods Inventory, $116,000; Sales, $0; Cost of Goods Sold, $0; Factory Payroll, $0; and Factory Overhead, $0.1. Prepare journal entries to record the following July transactions and events.a. Purchased raw materials for $132,000 cash (the company uses a perpetual inventory system).b. Used raw materials as follows: direct materials, $49,900; and indirect materials, $15,000.c. Incurred factory payroll cost of $173,650 paid in cash (ignore taxes).d. Assigned factory payroll costs as follows: direct labor, $142,650; and indirect labor, $31,000.e. Incurred additional factory overhead costs of $42,795 paid in cash.f. Allocated factory overhead to production at 50% of direct labor costs.2. Information about the July inventories follows. Use this information with that from part 1 to prepare a process cost summary, assuming the weighted-average method is used. (Round "Cost per EUP" to 2 decimal places.)3. Using the results from part 2 and the available information, make computations and prepare journal entries to record the following:g. Total costs transferred to finished goods for July.h. Sale of finished goods costing $132,010 for $650,000 in cash.4. Post entries from parts 1 and 3 to the following general ledger accounts5. Compute the amount of gross profit from the sales in July. (Add any underapplied overhead too, or deduct any overapplied overhead from, the cost of goods sold.)
Answers
Question Completion:
Information about the July inventories follows:
Beginning inventory 8,000 units
Started 17,000 units
Ending inventory 11,000 units
Beginning inventory
Materials—Percent complete 100%
Conversion—Percent complete 80%
Ending inventory
Materials—Percent complete 100%
Conversion—Percent complete 30%
Answer:
Major League Bat Company
1. Journal Entries:
a. Debit Raw Materials Inventory $132,000
Credit Cash Account $132,000
To record the purchase of raw materials.
b. Debit Work in Process $49,900
Debit Manufacturing Overhead $15,000
Credit Raw Materials $64,900
To record materials used.
c. Debit Factory Wages $173,650
Credit Cash Account $173,650
To record factory payroll incurred.
d. Debit Work in Process $142,650
Debit Manufacturing Overhead $31,000
Credit Factory Wages $173,650
To assign factory payroll costs.
e. Debit Manufacturing Overhead $42,795
Credit Cash Account $42,795
To record additional factory overhead costs.
f. Debit Work In Process $71,325
Credit Manufacturing Overhead $71,325
To allocate factory overhead to production at 50% of direct labor costs.
2. Computation of Equivalent Units of Production:
Materials Conversion Total
Beginning inventory 8,000 units 8,000 6,400
Started 17,000 units 17,000 17,000
Ending inventory 11,000 units 11,000 3,300
Total equivalent unit 28,000 20,300
3. Costs of Production:
Beginning Inventory $2,800 $7,720
Raw materials 49,900 213,975
Total costs $52,700 $221,695
Total equivalent unit 28,000 20,300
Cost per equivalent unit $1.88 $10.92
Total costs:
Started 17,000 $31,960 17,000 $185,640 $217,600
Ending inventory 11,000 20,680 3,300 36,036 $56,716
4. Journal Entries:
Debit Finished Goods Inventory $217,600
Credit Work In Process $217,600
To record the transfer of goods.
Debit Cost of Goods Sold $132,010
Credit Finished Goods Inventory $132,010
To record the cost of goods sold.
Debit Cash Account $650,000
Credit Sales Revenue $650,000
To record the sale of goods for cash.
5. Ledger accounts:
Raw Materials Inventory
Accounts Titles Debit Credit
Balance $25,000
Cash Account 132,000
Work in Process $49,900
Manufacturing Overhead 15,000
Work In Process
Accounts Titles Debit Credit
Balance $10,250
Raw materials 49,900
Factory Wages 142,650
Manufacturing
Overhead 71,325
Finished Goods Inventory $217,600
Balance 56,716
Manufacturing Overhead
Accounts Titles Debit Credit
Raw materials $15,000
Factory wages 31,000
Other overheads 42,795
Work in Process applied $71,325
Underapplied overhead 17,470
6. Income Statement:
For July
Sales Revenue $650,000
Cost of goods sold 132,010
Underapplied overhead 17,470 $149,480
Gross profit $500,520
Explanation:
a) Data and Calculations:
June 30 Balances:
Raw Materials Inventory, $25,000;
Goods in Process Inventory, $10,520 ($2,800 of direct materials, $3,800 of direct labor, and $3,920 of overhead);
Finished Goods Inventory, $116,000;
Sales, $0;
Cost of Goods Sold, $0;
Factory Payroll, $0; and
Factory Overhead, $0.1.
5. What are the advantages of relying solely on streaming services
for TV, what are the disadvantages?
HELP ME PLEASE I WILL GIVE YOJ BRAINLYIST
Answers
Answer:
By watching something live and streaming. Disadvantages is not wanting to watch what you want.
Acute Company manufactures a single product. On December 31, 2014, it adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was determined to be $300,000. Inventory data for succeeding years follow:
Year Ended December 31 Inventory at Respective Year-End Prices Relevant Price Index (Base Year 2014)
2015 $363,000 1.10
2016 420,000 1.20
2017 430,000 1.25
Required:
Compute the inventory amounts at December 31, 2015, 2016, and 2017, using the dollar-value LIFO inventory method for each year.
Answers
Answer:
Acute Company
Year Ended December 31 Inventory at
Respective Year-End Prices Relevant Price Index Dollar-value LIFO
2015 $363,000 1.10 $330,000
2016 420,000 1.20 350,000
2017 430,000 1.25 344,000
Explanation:
a) Data and Calculations:
Year Ended December 31 Inventory at Respective Year-End Prices Relevant Price Index (Base Year 2014)
Year Year-End Prices Price Index
2015 $363,000 1.10
2016 420,000 1.20
2017 430,000 1.25
Dollar-value LIFO:
2015 = $363,000/1.10 = $330,000
2016 = $420,000/1.20 = $350,000
2017 = $430,000/1.25 = $344,000
b) The implication is that the respective year-end prices are re-calculated using the 2014 base year index. This prunes the effect of inflation on the most recent prices when compared to the base year of 2014. It makes the ending inventories for the years to be comparable since the inflation-influenced cause has been removed.
Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2005). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $1,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $5,500 in federal income taxes withheld from their paychecks during the course of the year. (use the 2016 tax rate schedules).
1. What is the total amount of Marc and Michelle’s deductions from AGI?
2. What is Marc and Michelle’s taxable income?
3. What is Marc and Michelle’s taxable income?
Answers
Answer:
$24750
$47750
Explanation:
Total amount of Marc and Michelle's deduction. From AGI:
MAX of (ITEMIZED DEDUCTION or MARRIED FILING JOINTLY)
2016 TAX SCHEDULE :
STANDARD DEDUCTION FOR MARRIED FILING JOINTLY = $12600
Personal and dependency deduction = 4,050
(4050 * 3). = $12,150
Deduction from AGI = $12,600 + $12,150 = $24750
Taxable income :
Gross income = (Marc and Michelle's salary + corporate bond)
= $(64000 + 12000 + 500) = $76500
Contribution + alimony = ($2500 + $1500) = 4000
Taxable income = ($76500 - 4000 - 24750) = $47750
The nature of a firm's cost (fixed or variable) depends on the Select one: a. firm's revenues. b. time horizon under consideration. c. price the firm charges for output. d. explicit but not implicit costs.
Answers
Answer:
B)time horizon under consideration.
Explanation:
firm's total cost of production can be regarded as the summation of both the fixed cost as well as the variable cost). It is all expenditures utilized in getting the needed factors of production( land, capital as well as labor)
Fixed cost known as overhead cost such as rent, insurance are expenses in the business that donor depends on the level of products(goods/service) from the business. While variable cost are cost that changes with production volume, they cover the cost of raw material used, direct labor as so on.It should be noted that The nature of a firm's cost (fixed or variable) depends on the time horizon under consideration
The following information pertains to Yuji Corporation:
January 1, 20X1 December 31, 20X1
Raw materials inventory $34,000 $38,000
Work-in-process inventory 126,000 145,000
Finished goods inventory 76,000 68,000
Costs incurred during the year 20X1 were as follows:
Raw material purchased $116,000
Wages to factory workers 55,000
Salary to factory supervisors 25,000
Salary to selling and administrative staff 40,000
Depreciation on factory building and equipment 10,000
Depreciation on office building 12,000
Utilities for factory building 5,000
Utilities for office building 7,500
Required:
Sales revenue during 20X1 was $300,000. The income tax rate is 21%. Compute the following:
a. Cost of raw materials used.
b. Cost of goods manufactured/completed.
c. Cost of goods sold.
d. Gross margin.
e. Net income.
Answers
Answer:
a. Cost of raw materials used.$ 112,000
b. Cost of goods manufactured/completed.$ 188,000
c. Cost of goods sold. $ 196,000
d. Gross margin. $ 104,000
e. Net income. $ 35155
Explanation:
Yuji Corporation
Cost Of Goods Sold Statement.
Beginning Raw materials inventory $34,000
Add Raw material purchased $116,000
Less Ending Raw materials inventory $38,000
Direct Materials Used $ 112,000
Add
Direct Labor Wages to factory workers 55,000
FOH $ 40,000
Utilities for factory building 5,000
Salary to factory supervisors 25,000
Depreciation on factory building and equipment 10,00
Total Manufacturing Costs $ 207,000
Add Beginning Work-in-process inventory 126,000
Cost of goods available for manufacture $ 333,000
Less Ending Work-in-process inventory 145,000
Cost of goods manufactured/completed $ 188,000
Add Beginning Finished goods inventory 76,000
Cost of goods available for sale $ 264,000
Less Ending Finished goods inventory 68,000
Cost of goods sold $ 196,000
We add and subtract as per format to get the required amounts.
Yuji Corporation
Income Statement
Sales revenue $300,000
Less Cost of goods sold $ 196,000
Gross margin $ 104,000
Less Selling and Administrative Expenses
Salary to selling and administrative staff 40,000
Depreciation on office building 12,000
Utilities for office building 7,500
Profit Before Income Tax 44,500
Income Tax ( 21% of 44,500) $ 9345
Net Income $ 35155
In early 2016, the same Germany machinery company has interest from four prospective clients from emerging markets: Indonesia, Brazil, Russia, and South Africa. They all want to buy ten machines, but the factory can only produce ten in time. Therefore, the company has to choose only one client. Given the volatility of the domestic currencies of the four prospective clients, the CFO would like to choose the client which is least likely to cancel the order due to currency volatility. The invoice comes due on June 30, 2016. According to volatility alone, which prospective client would be most likely to cancel the order?
Answers
Answer:
Brazil
Explanation:
According to the picture below, Brazilian real is the currency that has the lowers currency volatility, its spot is 4.0685, and its forward is 4.1820. These values are way lower than the values of the other three currencies, and for this reason, the CFO should choose the Brazilian client, clearly.
Indonesia is the country that is most likely to cancel this order. This is due to its high volatility.
Following the volatility chart that is attached to this question we can clearly spot that Indonesia has the most likelihood to cancel the order.
The volatility of the currency of the country Indonesia is shown to be high and this high volatility is very much going to have an impact on trade.
When there is a weakness in the currency of a nation, the cost of import would go up.
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Consider a simple example economy where there are two goods, coconuts and restaurant meals (coconut-based). There are two firms. A coconut producer collects and sells 10 million coconuts at $2.00 each. The firm pays $5 million in wages, $0.5 million in interest on an old loan, and $1.5 million in taxes to the government. We also know that 4 million coconuts are sold to the public for consumption, and 6 million coconuts are sold to the restaurant firm, which uses them to prepare meals. The restaurant sells $30 million in meals. The restaurant pays $4 million in wages and the government $3 million in taxes. The government supplies security and accounting services and employs only labor, and government workers are paid $5.5 million, collected in taxed by the government. Finally, consumers pay $1 million in taxes to the government in addition to the taxes paid by the two firms.
Required:
a. Compute GDP for this simple economy using the product approach.
b. Compute GDP for this simple economy using the expenditure approach.
c. Compute GDP for this simple economy using the income approach.
d. Now, suppose that the coconut producer cannot sell 1 million coconuts during the course of the year. These are collected coconuts that are not sold to the public (assume that sales to the other firm, the restaurant, remain the same).
e. How does this new piece of information affect your calculations in the expenditure approach? Explain.
Answers
A) Product Approach
GDP = Value added of all industries
Value added = revenue - intermediate costs
Value added coconut producer = $20,000,000 (it does not have intermediate costs)
Value added restaurant = $30,000,000 - $12,000,000 (cost of coconuts)
= $18,000,000
Value added government = $5,500,000 (collected in taxes, $3 million from the restaurant, $1.5 million from the coconut producer, and $1 million from consumers).
GDP = $20,000,000 + $18,000,000 + $5,500,000
= $43,000,000
B) Expenditure Approach
GDP = Consumption + Investment + Government Spending + Net Exports
Consumption = $8,000,000 in coconuts + $30,000,000 in meals
= $38,000,000
Investment = $0
Government Spending = $5,500,000 in government wages
Net Exports = $0 (it is a closed-economy)
GDP = $38,000,000 + $0 + $5,500,000 + $0
= $43,500,000
C) Income Approach
Wages = $14,500,000
Corporate Profits = $24,000,000
Interest income = $500,000
Taxes = $4,500,000
GDP = $43,500,000
e. How does this new piece of information affect your calculations in the expenditure approach? Explain.
GDP under the expenditure approach, would rise by the value of the unsold coconuts ($1 million) as long as the coconuts were harvested in the given year. This is because inventory produced in the given year, is part of that year's GDP.
The following selected transactions were completed by Capers Company during October of the current year:
Oct. 1 Purchased merchandise from Sabol Imports Co., $15,458, terms FOB destination, n/30.
3 Purchased merchandise from Saxon Co., $9,650, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $200 was added to the invoice.
5 Purchased merchandise from Schnee Co., $13,550, terms FOB destination, 2/10, n/30.
6 Issued debit memo to Schnee Co. for merchandise with an invoice amount of $4,350 returned from purchase on July 5.
13 Paid Saxon Co. for invoice of July 3.
14 Paid Schnee Co. for invoice of July 5, less debit memo of July 6.
19 Purchased merchandise from Southmont Co., $27,270, terms FOB shipping point, n/eom.
19 Paid freight of $375 on July 19 purchase from Southmont Co.
20 Purchased merchandise from Stevens Co., $21,400, terms FOB destination, 1/10, n/30.
30 Paid Stevens Co. for invoice of July 20. 31 Paid Sabol Imports Co. for invoice of July 1.
31 Paid Southmont Co. for invoice of July 19.
Required:
Journalize the entries to record the transactions of Capers Company for October.
Answers
Answer:
Date Accounts title and explanations Debit$ Credit$
1-Oct Merchandise inventory 15458
Accounts payable - Sabol imports 15458
3-Oct Merchandise Inventory 9850
Accounts payable- Saxon Co. 9650
Cash account 200
4-Oct Merchandise Inventory 13550
Accounts payable- Schnee Co. 13550
6-Oct Accounts payable -Schnee Co 4350
Merchandise inventory 4350
13-Oct Accounts payable-Saxon Co 9650
Cash account 9457
Merchandise inventory 193
(9650*2%)
14-Oct Accounts payable-Schnee Co 9200
Cash account 9016
Merchandise inventory 184
(9200*2%)
19-Oct Merchandise inventory 27270
Accounts payable - Southmont Co 27270
19-Oct Merchandise inventory 375
Cash account 375
20-Oct Merchandise inventory 21400
Accounts payable -Stevens 21400
30-Oct Accounts payable-Stevens 21400
Cash account 21186
Merchandise inventory 214
(21400*1%)
31-Oct Accounts payable-Sabol imports 15458
Cash account 15458
31-Oct Accounts payable -Southmont Co 27270
Cash account 27270
Pearl Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2017.
Purchase
Cash paid for equipment, including sales tax of $6,200 $130,200
Freight and insurance cost while in transit 2,480
Cost of moving equipment into place at factory 3,844
Wage cost for technicians to test equipment 4,960
Insurance premium paid during first year of operation on this equipment 1,860
Special plumbing fixtures required for new equipment 9,920
Repair cost incurred in first year of operations related to this equipment 1,612
Construction
Material and purchased parts (gross cost $248,000; failed to take 2% cash discount) $248,000
Imputed interest on funds used during construction (stock financing) 17,360
Labor costs 235,600
Allocated overhead costs (fixed-$24,800; variable-$37,200) 62,000
Profit on self-construction 37,200
Cost of installing equipment 5,456
Compute the total cost for each of these two pieces of equipment.
Purchase equipment $_____
Construction equipment $_____
Answers
Answer:
i. The total cost for Purchase equipment
Particulars Amount
Cash paid for equipment, including $130,200
sales tax of $6,200
Freight and insurance cost while $2,480
in transit
Cost of moving equipment into $3,844
place at factory
Wage cost for technicians to test $4,960
equipment
Special plumbing fixtures required for $9,920
new equipment
Total Purchase cost $151,404
ii.The total cost of construction price of equipment
Particulars Amount
Material and purchase part $245,520
Labor Cost $235,600
Overhead Cost $62,000
Cost of Installing equipment $5,456
total cost of construction price of equipment $548,576
Workings
Material and purchased parts = Gross cost - Cash discount on gross cost
=$248,000 - (1%*$248,000)
=$248,000 - $2480
=$245,520
In 1998, the Russian government defaulted on its bonds. According to the open-economy macroeconomic model, this should have
Answers
Answer:
An increase in the net export and Russian interest rate.
Explanation: An open economy is an economy where all players which includes traders, investors and other stakeholders in the economy both within and outside the economy freely conduct their businesses and are controlled by market forces with minimal interference by Government agencies.
According to the open-economy macroeconomic model with the defaulting by the Russian government in 1998 will definitely lead to an increase in net export and an increase in Russian Interest rate.
Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following transactions during the month of October.
Oct. 2 Purchased merchandise at a $4,700 price ($4,606 net), invoice dated October 2, terms 2/10, n/30.
10 Received a credit memorandum toward the return of $850 ($833 net) of merchandise that it purchased on October 2.
17 Purchased merchandise at a $8,800 price ($8,624 net), invoice dated October 17, terms 2/10, n/30.
27 Paid for the merchandise purchased on October 17, less the discount.
31 Paid for the merchandise purchased on October 2. (Payment was mistakenly delayed, which caused the discount to be lost.)
Required:
Prepare entries to record these transactions assuming that Piere Imports records invoices (a) at gross amounts and (b) at net amounts.
Answers
Answer:
Entries and their narrations are posted below
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
October 2 Purchased merchandise at a $4,700 price ($4,606 net), invoice dated
GROSS NET
Dr Merchandise inventory $4,700 $4,606
Cr Account payable $4,700 $4,606
October 10 Received a credit memorandum toward the return of $850 ($833 net)
GROSS NET
Dr Account payable $850 $833
C Inventory $850 $833
October 17 Purchased merchandise at a $8,800 price ($8,624 net), invoice dated October 17,
GROSS NET
Dr Merchandise inventory $8,800 $8,624
Cr Account payable $8,800 $8,624
October 27 Paid for the merchandise purchased on October 17, less the discount.
Dr Account payable 8,800
Cr Discount 176
Cr Cash 8,624
October 31 Paid for the merchandise purchased on October 2.
Dr Account payable 4,700
Cr Cash 4,700
Nanjones Company manufactures a line of products distributed nationally through wholesalers. Presented below are planned manufacturing data for the year and actual data for November of the current year. The company applies overhead based on planned machine hours using a predetermined annual rate.
Planning Data
Annual November
Fixed manufacturing overhead $1,200,000 $100,000
Variable manufacturing overhead 2,400,000 220,000
Direct labor hours 48,000 4,000
Machine hours 240,000 20,000
Data for November
Direct labor hours (actual) 4,200
Direct labor hours (plan based on output) 4,000
Machine hours (actual) 21,600
Machine hours (plan based on output) 21,000
Fixed manufacturing overhead $101,200
Variable manufacturing overhead $214,000
The fixed overhead volume variance for November was
a. $1,200 unfavorable.
b. $5,000 favorable.
c. $5,000 unfavorable.
d. $10,000 favorable.
Answers
Answer:
Manufacturing overhead volume variance= $1,200 unfavorable
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Fixed Predetermined manufacturing overhead rate= 1,200,000/240,000
Fixed Predetermined manufacturing overhead rate= $5 per machine hour
Now, to calculate the fixed manufacturing overhead volume variance, we need to use the following formula:
Manufacturing overhead volume variance = Actual Factory Overhead - Budgeted Allowance Based on Standard Hours
Manufacturing overhead volume variance= (101,200) - (5*20,000)
Manufacturing overhead volume variance= $1,200 unfavorable
A remotely located air sampling station can be powered by solar cells or by running an electric line to the site and using conventional power. Solar cells will cost $12,600 to install and will have a useful life of 4 years with no salvage value. Annual costs for inspection, cleaning, etc. are expected to be $1,400. A new power line will cost $11,000 to install, with power costs expected to be $800 per year. Since the air sampling project will end in 4 years, the salvage value of the line is considered to be zero. At an interest rate of 10% per year, which alternative should be selected on the basis of a future worth analysis?
Answers
Answer:
Since the total future worth of running an electric line of $19,353.42 is less than the total future worth of solar cells is $24,132.22, it implies that it will be cheaper to run an electric line than to use solar cells. Therefore, running an electric line should be selected.
Explanation:
The future worth analysis refers to an act of determining what the the worth of present amount of money or stream of money invested at an interest rate will after in some period or years to come.
To determine which one to select between solar cells and running an electric line, the we need to calculate the future worth of both and compared as follows:
a. Calculation of future value of solar cells
Calculation of future worth of $12,600 installation cost
FW of $12,600 = PW of $12,600 * (1 + r)^n ................ (1)
Where;
FW of $12,600 = Future worth of $12,600 installation cost = ?
PW of $12,600 = Present worth of $12,600 installation cost = $12,600
r = interest rate = 10%, or 0.10
n = number of years = 4
Substitute the values into equation (1), we have:
FW of $12,600 = $12,600 * (1 + 0.10)^4
FW of $12,600 = $12,600 * 1.4641
FW of $12,600 = $18,447.66
Calculation of future worth of annual costs for inspection, cleaning, etc. of $1,400
The future worth of annual costs for inspection, cleaning, etc. of $1,400 can also be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:
FW of $1,400 = M * (((1 + r)^n - 1) / r) ................................. (2)
Where,
FW of $1,400 = Future value of Annual costs for inspection, cleaning, etc. of $1,400 =?
M = Annual costs for inspection, cleaning, etc. = $1,400
r = interest rate = 10%, or 0.10
n = number of years = 4
Substitute the values into equation (2), we have:
FW of $1,400 = $1,400 * (((1 + 0.01)^4 - 1) / 0.01)
FW of $1,400 = $1,400 * 4.060401
FW of $1,400 = $5,684.56
Calculation of total future worth of solar cells
This is calculated by simply adding the FW of $12,600 and FW of $1,400 as follows:
Total future worth of solar cells = FW of $12,600 + FW of $1,400 = $18,447.66 + $5,684.56 = $24,132.22
Therefore, the total future worth of solar cells is $24,132.22.
b. Calculation of future value of running an electric line
Calculation of future worth of $11,000 installation cost
FW of $11,000 = PW of $11,000 * (1 + r)^n ................ (3)
Where;
FW of $11,000 = Future worth of $11,000 installation cost = ?
PW of $11,000 = Present worth of $11,000 installation cost = $11,000
r = interest rate = 10%, or 0.10
n = number of years = 4
Substitute the values into equation (3), we have:
FW of $11,000 = $11,000 * (1 + 0.10)^4
FW of $11,000 = $11,000 * 1.4641
FW of $11,000 = $16,105.10
Calculation of future worth of expected annual power costs of $800
The future worth of expected annual power costs of $800 can also be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:
FW of $800 = M * (((1 + r)^n - 1) / r) ................................. (4)
Where,
FW of $800 = Future value of expected annual power costs of $800 =?
M = Expected annual power costs = $800
r = interest rate = 10%, or 0.10
n = number of years = 4
Substitute the values into equation (4), we have:
FW of $800 = $800 * (((1 + 0.01)^4 - 1) / 0.01)
FW of $800 = $800 * 4.060401
FW of $800 = $3,248.32
Calculation of total future worth of running an electric line
This is calculated by simply adding the FW of $11,000 and FW of $800 as follows:
Total future worth of running an electric line = FW of $11,000 + FW of $800 = $16,105.10 + $3,248.32 = $19,353.42
Therefore, the total future worth of running an electric line is $19,353.42.
c. Conclusion
Since the total future worth of running an electric line of $19,353.42 is less than the total future worth of solar cells is $24,132.22, it implies that it will be cheaper to run an electric line than to use solar cells. Therefore, running an electric line should be selected.
Linder Corporation invested $70,000 cash in marketable securities on September 1. On September 7 the company sold $10,000 of these investments for $15,000. On September 28 Linder sold $6,000 of the securities for $4,000.
Required:
a. Record the purchase of marketable securities on September 1.
b. Record the sale of marketable securities on September 7.
c. Record the additional sale of marketable securities on September 28.
d. Record the necessary month end fair value adjustment on September 30. The market price for Linder Corporation's remaining unsold securities was $58,000.
Answers
Answer and Explanation:
Find attached
In 2010, Toyota recalled millions of automobiles to fix a potentially hazardous problem known as sudden acceleration. Writing in the Wall Street Journal, James Stewart gave investors the following advice: "Toyota shares were over $90 as recently as Jan. 19, 2010. They closed Tuesday (February 02, 2010) at $78.18, which strikes me as a modest decline under the circumstances. If I owned shares, I’d seize the chance to get out.
Required:
Would a believer in the efficient markets theory be likely to follow Stewart's advice?
Answers
Answer:
Of course not. Someone that believes in the efficient market theory (or hypothesis as it is generally called), believes that the market is always right. As an individual investor, you might be right or wrong, but the market as a whole has access to perfect information and the price of each stock already has been determined factoring all possible events and outcomes. I.e. the market's price is always the correct price and there is no way in which an individual investor can make a profit by buying or selling undervalued or overvalued stocks.
Personally, I disagree with this hypothesis, and the reason why most people call is a hypothesis is that they disagree with it. If the market is always right, then this theory is no good.
A company has the following aging schedule of its accounts receivable with the estimated percent uncollectible:______.
Age Group Amount Receivable Estimated Percent Uncollectible
Not yet due $ 175,000 4 %
0-60 days past due $ 40,000 10 %
61-120 days past due $ 10,000 30 %
More than 120 days past due $ 5,000 60 %
Assuming the balance of Allowance for Uncollectible Accounts is $3,000 (credit) before adjustment, which of the following would be recorded in the year-end adjusting entry?
Answers
Answer: $14,000
Explanation:
Estimated Uncollectibles = (4% * 175,000) + ( 10% * 40,000) + ( 30% * 10,000) + (60% * 5,000)
= 7,000 + 4,000 + 3,000 + 3,000
= $17,000
Balance before adjustment is a credit of $3,000 so the adjustment for the year is;
= 17,000 - 3,000
= $14,000
1
TRUE FALSE Dermatology is the study of the skin, its structure, functions, diseases and
treatment
2. TRUE FALSE The skin is the 2nd largest organ of the body.
3. The functions of the skin include sensation, heat regulation, absorption, protection, excretion
and
4. The three main layers of the skin are the subcutaneous, epidermis and
The skin layer that has five layers of cells with differing characteristics is the
Sweat is produced by the gland known as the
6. The layer of skin that acts as a shock absorber to protect the bones is known as the
7. The American Academy of Dermatology recommends using a sunscreen with an SPF
of at least
Answers
Answer:
T
Explanation:
Because its true Heheheheheheehhehe sorryyyyyy
2) FALSE
3) corrrect
4) Epidermis, Dermis, Subcutaneous Tissue
5) EPIDERMIS
Sweat~ is produce by sudoriparous
6) Subcutis
7) SPF of 30
Midland Petroleum is holding a stockholders’ meeting next month. Ms. Ramsey is the president of the company and has the support of the existing board of directors. All 12 members of the board are up for reelection. Mr. Clark is a dissident stockholder. He controls proxies for 42,001 shares. Ms. Ramsey and her friends on the board control 52,001 shares. Other stockholders, whose loyalties are unknown, will be voting the remaining 24,998 shares. The company uses cumulative voting.
Required:
a. How many directors can Mr. Clark be sure of electing?
b. How many can Ms Rmasey be sure of electing
c. How many votes could clark have if he had all the uncommitted votes
d. Does that give him control?
e. If nine directors were to be elected, and Ms. Ramsey and her friends had 70,001 shares and Mr. Clark had 48,001 shares plus half the uncommitted votes, how many directors could Mr. Clark elect?
Answers
Answer:
Midland Petroleum
a. Mr. Clark can be sure of electing = 4 directors
b. Ms Ramsey can be sure of electing = 5 directors
c. If Mr. Clark had all the uncommitted votes, he can elect = 7 directors
d. With 7 directors, he has control.
e. Mr. Clark can elect (60,50/143,000 * 9) = 4 directors.
Explanation:
Board members = 12
Mr. Clark control = 42,001 shares or 35.295%
Ms. Ramsey control = 52,001 shares or 43.698%
Undecided shareholders = 24,998 shares or 21.01%
Total shareholding = 119,000 shares or 100%
Mr. Clark can elect = 35.295% of directors = 4
Ms. Ramsey can elect = 43.698% of directors = 5
Other shareholders can elect = 21.01% of directors = 3
New shareholding:
Ms. Ramsey and friends = 70,001 shares
Mr. Clark and half uncommitted votes = 60,500 (48,001 + 12,499)
Half of the other uncommitted votes = 12,499
Total votes = 143,000
Mr. Clark can elect (60,50/143,000 * 9) = 4 directors.
Appendix 1: Gross and net methods for sales discounts
The following were selected from among the transactions completed by Strong Retail Group during August of the current year:
Aug. 5. Sold merchandise on account to M. Quinn, $7,500, terms 2/10, n/30. The
cost of the merchandise sold was $4,200.
9. Sold merchandise on account to R. Busch., $4,000, terms 1/10, n/30. The
cost of the merchandise sold was $2,100.
15. Received payment on account for the sale of August 5 less the discount.
20. Sold merchandise on account to S. Mooney, $6,000, terms n/eom. The
cost of the merchandise sold was $3,300.
25. Received payment on account for the sale of August 9. 31.Received
payment on account for the sale of August 20.
A. Journalize the August transactions using the gross method of recording sales discounts.
Aug. 5 Accounts Receivable-M. Quinn 7,500
Sales 7,500
Cost of Goods Sold 4,200
Inventory 4,200
Accounts Receivable-R. Busch 4,000
Sales 4,000
Cost of Goods Sold 2,100
B. Journalize the August transactions using the net method of recording sales discounts.
Answers
Answer: Check attachment
Explanation:
A . Journalize the August transactions using the gross method of recording sales discounts
Kindly check the attachment for the solution.
B. Journalize the August transactions using the net method of recording sales discounts.
Check attachment.
Performance Obligation Fulfilled Over Time Philbrick Company signed a three-year contract to develop custom sales training materials and provide training to the employees of Elliot Company. The contract price is $1,100 per employee and the number of employees to be trained is 500. Philbrick can send a bill to Elliot at the end of every training session. Once developed, the custom training materials will belong to Elliot Company, but Philbrick does not consider them to be a separate performance obligation. The expected number to be trained in each year and the expected development and training costs follow. Number of employees Development and training costs incurred
2019
150 $
55,000
2020
250
70,000
2021
100
20,000
Total 500 $145,000
For each year, compute the revenue, expense, and gross profit reported assuming revenue is recognized over time using... 1. the number of employees trained as a measure of the value provided to the customer. Note: Round answers to the nearest dollar.
Answers
Answer:
Philbrick Company
Performance Obligation Fulfilled Over Time
Computation of the revenue, expense, and gross profit:
Year Number of Development Sales Gross
Employees /Training Cost Value Profit
2019 150 $ 55,000 $165,000 $110,000
2020 250 70,000 275,000 205,000
2021 100 20,000 110,000 90,000
Total 500 $145,000 $550,000 $405,000
Explanation:
a) Data and Calculations:
Contract price = $1,100 per employee
No. of employees to be trained = 500
Total contract value = $550,000 ($1,100 * 500)
Expected Development and Training Costs:
Year Number of Development
Employees /Training Cost
2019 150 $ 55,000
2020 250 70,000
2021 100 20,000
Total 500 $145,000
Presented below are certain account balances of Oriole Products Co.
Rent revenue $6,520 Sales discounts $8,240
Interest expense 13,460 Selling expenses 99,440
Beginning retained earnings 114,900 Sales revenue 407,700
Ending retained earnings 134,130 Income tax expense 25,015
Dividend revenue 71,910 Cost of goods sold 188,927
Sales returns and allowances 12,910 Administrative expenses 75,820
Allocation to noncontrolling interest 20,040
From the foregoing, compute the following:
a.Total net revenue:_________
b. Net income:__________
c. Income attributable to controlling stockholders:___________
Answers
Answer:
a. Sales revenue 407700
Sales discounts 8240
Sales returns and allowances 12910 (21150)
Net sales 386,550
Rent revenue 6520
Dividend revenue 71910
Total net revenue $464980
b. Total net revenue $464980
Less: Expenses
Cost of goods sold 188927
Selling expenses 99440
Administrative expenses 75820
Interest expense 13460
Income tax expense 25015 $402662
Net income $62318
(c) Total consolidated net income $62318
Less: Allocation to noncontrolling interest $20040
Income attributable to controlling $42278
stockholders
The price of oil in international markets has dropped stunningly 60% in the past twelve months. Among the factors mentioned behind this drastic fall is the millions of barrels of oil produced in the US called shale oil and analyze:
a. The market struc ture for oil industry.
b. The supply and demand for oil in that market structure.
c. The pricing of oil at the presence of OPEC and the role of Speculators.
d. Why shale oil is a substitute for oil and explain the news in regard to the Cross elasticity of demand.
Answers
Answer:
a. The market structure for oil industry.
The market structure is monopolistic competition: there are many competitors, that hold some market power, but not as much as in oligopoly. The good that is offered is not as homogenous as in agricultural markets, and this is the reason why it is not a perfect-competition structure either.
b. The supply and demand for oil in that market structure.
Supply and demand is determined more or less freely in the market. Producers hold some market power so they charge a price that is a bit higher than the marginal cost, which would be the price in a perfect competition structure.
Consumers also have power in the demand curve because they have a fair number of options.
c. The pricing of oil at the presence of OPEC and the role of Speculators.
The OPEC forms an oligopoly, however, not all countries that produce oil are members of the OPEC, and this is why the market structure as a whole is not an oligopoly, but monopolistic competition.
Speculators can drive prices, but their influence is marginal in comparison to consumers as a whole.
d. Why shale oil is a substitute for oil and explain the news in regard to the Cross elasticity of demand.
Shale oil is a substitute because it offers the same service: providing energy, and serving as a chemical component of many products.
As for the cross elasticity of demand, this means that when the price of oil increases, the demand for shale oil increases, because people flock to the substitute.
n California, any apartment building with this many units must have an onsite manager, who is also known as a residential manager. What is the number of units to which this statement refers? Ten or more. Twelve or more. Sixteen or more. Twenty or more+.
Answers
Answer:
Sixteen or more.
Explanation:
It is mandatory by law in California to have an onsite manager, housekeeper, janitor, or another responsible person reside in a building with more than 16 apartments. Onsite means the manager or caretaker must be a resident in the building complex. The manager's role is to attend to the tenant's needs and offer protection to their properties. This requirement applies if the landlord is not a resident in the apartment building.
how globalization has changed jobs in an organization where you have worked. What are some HR responses to those changes
Answers
Explanation:
Globalization is a phenomenon that has interconnected the world in a political, economic, social and cultural way, which means that this phenomenon has had a significant impact on an organization's business world and HR sector.
An organization that is present in a globalized world, will need to develop new ways of carrying out processes, since this environment is increasingly competitive and needs creativity and innovation for a company to remain well positioned in the market. It is also necessary to highlight that people have new work demands and seek to work in companies that exercise corporate governance and improve their socio-environmental environment.
Therefore, HR was positively impacted by globalization in a positive way, establishing an integration of its processes and people, in order to seek cultural and professional diversity in the recruited professionals, which combine greater innovation and competence for the company. In addition, organizations are more flexible and open to communication, assertiveness, self-management and processes that assist in innovation, motivation and continuous improvement of processes.
What are two cons of using a credit card?
Answers
Darby Company, operating at full capacity, sold 500,000 units at a price of $94 per unit during the current year. Its income statement is as follows:
Sales $47,000,000
Cost of goods sold 25,000,000
Gross profit $22,000,000
Expenses:
Selling expenses $4,000,000
Administrative expenses 3,000,000
Total expenses 7,000,000
Income from operations $15,000,000
The division of costs between variable and fixed is as follows:
Variable Fixed
Cost of goods sold 70% 30%
Selling expenses 75% 25%
Administrative expenses50% 50%
Management is considering a plant expansion program for the following year that will permit an increase of $3,760,000 in yearly sales. The expansion will increase fixed costs by $1,800,000 but will not affect the relationship between sales and variable costs.
Required:
1. Determine the total variable costs and the total fixed costs for the current year.
Total variable costs $_____
Total fixed costs $_____
2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.
Unit variable cost $_____
Unit contribution margin $_____
3. Compute the break-even sales (units) for the current year.
4. Compute the break-even sales (units) under the proposed program for the following year.
5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $15,000,000 of income from operations that were earned in the current year.
6. Determine the maximum income from operations possible with the expanded plant.
7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?
8. Based on the data given, would you recommend accepting the proposal?
a. In favor of the proposal because of the reduction in break-even point.
b. In favor of the proposal because of the possibility of increasing income from operations.
c. In favor of the proposal because of the increase in break-even point.
d. Reject the proposal because if future sales remain at the current level, the income from operations will increase.
e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales.
Answers
Answer:
1. Determine the total variable costs and the total fixed costs for the current year.
Total variable costs = $17,500,000 + $3,000,000 + $1,500,000 = $22,000,000 Total fixed costs = $10,000,0002. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.
Unit variable cost = $22,000,000 / 500,000 = $44 Unit contribution margin = $94 - $44 = $503. Compute the break-even sales (units) for the current year.
break even point = $10,000,000 / $50 = 200,000 units4. Compute the break-even sales (units) under the proposed program for the following year.
break even point = $11,800,000 / $50 = 236,000 units5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $15,000,000 of income from operations that were earned in the current year.
units = ($11,800,000 + $15,000,000) / $50 = 536,000 units6. Determine the maximum income from operations possible with the expanded plant.
total units sold 500,000 + 40,000 = 540,000total contribution margin = 540,000 x $50 = $27,000,000operating income = $27,000,000 - $11,800,000 = $15,200,0007. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?
operating income = (500,000 x $50) - $11,800,000 = $13,200,000represents a decrease of $15,000,000 - $13,200,000 = $1,800,0008. Based on the data given, would you recommend accepting the proposal?
b. In favor of the proposal because of the possibility of increasing income from operations.