Frida makes bread every day and due to demand she is thinking of increasing her bread production. In order to make this decision, she would calculate her marginal costs of bread production (increased number of employees, equipment, etc.) and her marginal benefits (number of loaves sold, price paid, new customers, etc.) and continue to produce where Select the correct answer below:
a. MB b. MB>MC or until they are equal.
c. total benefits equal total costs.
d. the price of bread equals exactly the marginal benefit of each loaf.

Answers

Answer 1

Answer: b. MB > MC or until they are equal.

Explanation:

It is best that Frieda produces bread at the level where Marginal benefits exceeds marginal costs. The difference will keep giving her more profit.

She should keep increasing her production so long as the Marginal benefit exceeds marginal cost but should stop at the level where the Marginal benefit and marginal cost become equal because producing past this point would mean that she would incur a marginal loss on each unit.


Related Questions

The goal of the accounts receivable methods is to adjust the Allowance for Doubtful Accounts balance so that multiple choice The unadjusted balance is equal to the estimate of the uncollectible accounts receivable. The adjusted balance is equal to the estimate of the uncollectible accounts receivable. The adjusted balance is equal to the estimate of the uncollectible sales. The unadjusted balance is equal to the ending accounts receivable balance.

Answers

Answer:

The adjusted balance is equal to the estimate of the uncollectible accounts receivable.

Explanation:

Receivable in economics is simply whenbusiness sells goods or services to another party on account usually on credit. It is also known as a monetary claim usually against a business or an individual.

Accounts receivable

Is simply defined as the power to the right to receive cash in the future from customers for goods or services performed. They can be called claim of right, exchange consideration, and a claim for the future.

The supplementary record that contains information on each customer is the accounts receivable ledger.

The goal for the accounts receivable methods is to adjust the Allowance for Doubtful Accounts balance making the adjusted balance is equal to the estimate of the uncollectible accounts receivable.

Bryant Company has a factory machine with a book value of $93,100 and a remaining useful life of 5 years. It can be sold for $27,200. A new machine is available at a cost of $430,400. This machine will have a 5-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $592,600 to $505,500. Prepare an analysis showing whether the old machine should be retained or replaced.

Answers

Answer:

The old machine should be replaced.

Explanation:

Note: See the attached excel file for the the analysis showing whether the old machine should be retained or replaced.

From the attached excel file, the following calculation are made:

Variable Manufacturing cost of Retain = Initial Variable Manufacturing cost * remaining useful life of old machine = $592,600 * 5 = $2,963,000

Variable Manufacturing cost of Replace = New Variable Manufacturing cost * Remaining useful life of new machine = $505,500 * 5 = $2,527,500

From the attached excel, it can be observed that the total cost of Retain is $32,200 higher than the total cost of Replace. This therefore implies that the old machine should be replaced.

The major benefits to a S.W.O.T Analysis are: a. Simple to use. b. Reduces the costs of strategic planning. c. Flexible. d. Integrates and synthesizes diverse information. e. Fosters collaboration among managers of different functional areas. f. ALL OF THE ABOVE. g. NONE OF THE ABOVE.

Answers

Answer:

f. ALL OF THE ABOVE

Explanation:

SWOT analysis can be regarded as

strategic planning technique that is been utilized to identify opportunities,

strengths as well as weaknesses, and threats associated with business competition as well as project planning of individuals or organization.

The major benefits to a S.W.O.T Analysis includes

✓Reduces the costs of strategic planning.

✓Simple to use.

✓Flexible

✓Fosters collaboration among managers of different functional areas.

✓Integrates and synthesizes diverse information.

For the current year ($ in millions), Centipede Corp. had $80 in pretax accounting income. This included warranty expense of $6 and $20 in depreciation expense. Two million of warranty costs were incurred, and MACRS depreciation amounted to $35. In the absence of other temporary or permanent differences, what was Centipede's income tax payable currently, assuming a tax rate of 25%?

Answers

Answer:

$17.25 million

Explanation:

Calculation to determine what was Centipede's income tax payable currently, assuming a tax rate of 25%

Accounting income $80 Temporary difference

Less Depreciation ($15)

($35 - 20)

Add Warranty expense $4

($6 - $2)

Taxable income $69

($80-$15+$4)

Enacted tax rate 25%

Tax payable currently $17.25 million

($69$25%)

Therefore Centipede's income tax payable currently, assuming a tax rate of 25% will be $17.25 million

Venus Creations sells window treatments (shades, blinds, and awnings) to both commercial and residential customers. The following information relates to its budgeted operations for the current year.
Commercial Residential
Revenues $328,000 $514,000
Direct materials costs $45,000 $50,000
Direct labor costs 110,000 290,000
Overhead costs 108,000 263,000 199,000 539,000
Operating income (loss) $65,000 $(25,000)
The controller, Peggy Kingman, is concerned about the residential product line. She cannot understand why this line is not more profitable given that the installations of window coverings are less complex for residential customers. In addition, the residential client base resides in close proximity to the company office, so travel costs are not as expensive on a per client visit for residential customers. As a result, she has decided to take a closer look at the overhead costs assigned to the two product lines to determine whether a more accurate product costing model can be developed. Here are the three activity cost pools and related information she developed:
Activity Cost Pools Estimated Overhead Cost Drivers
Scheduling and travel $108,000 Hours of travel
Setup time 119,000 Number of setups
Supervision 80,000 Direct labor cost
Estimated Use of Cost Drivers per Product
Commercial Residential
Scheduling and travel 800 550
Setup time 450 250
Compute the activity-based overhead rates for each of the three cost pools. (Round overhead rate for supervision to 2 decimal places, e.g. 0.38.)
Overhead Rates
Scheduling and travel
$enter a dollar amount per dollar rounded to 2 decimal places
per hour
Setup time
$enter a dollar amount per setup rounded to 2 decimal places
per setup
Supervision
$enter a dollar amount per dollar rounded to 2 decimal places

Answers

Answer:

Scheduling and travel= $80 per hour

Setup time= $170 per set up

Supervision= $0.2 per direct labor dollar

Explanation:

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Commercial Residential

Scheduling and travel 800 550= 1,350

Setup time 450 250=700

Direct labor costs 110,000 290,000= $400,000

Scheduling and travel= 108,000 / 1,350= $80 per hour

Setup time= 119,000 / 700= $170 per set up

Supervision= 80,000 / 400,000= $0.2 per direct labor dollar

Hilary, a manager of a family restaurant, is considering a renovation investment that would expand the operation's menu offerings. The project will have an initial cost of $36,000. Annual cash inflow from the project is expected to be $12,000 while cash outflow is expected to be $5,000 which will results in $7,000 annual net cash inflows for the next 8 years. What is the payback period in years for the proposed investment

Answers

Answer:

5 years and 1-2 months

Explanation:

if you do the math 7,000 x 5,000 is 35,000$ over a 5 year period you would pay back that much plus that little extra grand you owe

The projected investment's payback duration in years is 5 years and 1-2 months.

A multi-brand loyalty program called payback enables you to accumulate and use points whenever you shop. You can earn points on a variety of purchases, including grocery, petrol, entertainment, travel, clothing, and more, through a large network of in-store and online partners.

Members are able to accumulate points and use them to get free shopping. The event was held at the WWE Thunder Dome, located at the Amway Center in Orlando, Florida, on August 30, 2020. It was the first Payback staged following the 2017 event, but it also served as the last projected because no other events were planned. The event's theme was wrestlers getting even with their opponents.

Learn more about payback, from :

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On December 31, 2020, the Frisbee Company had 262,000 shares of common stock issued and outstanding. On March 31, 2021, the company sold 62,000 additional shares for cash. Frisbees net income for the year ended December 31, 2021, was $820,000. During 2021, Frisbee declared and paid $92,000 in cash dividends on its nonconvertible preferred stock. What is the 2021 basic earnings per share

Answers

Answer:

thats a scam ^

dont click the link

he Dimitrios Company records the following transactions during September 2018: Cash sales to customers totaling $5,800. Sales to customers on credit cards totaling $18,800. The average credit card fee is 3.0%. The company collects all cash due from the credit card companies. A $2,000 sale on account to a long-time customer with terms of 2/10, n/30. The sale is made on September 5. The customer pays the invoice on September 14. A customer returns product they had purchased last month for $500. Dimitrios accepts the return and gives the customer a cash refund. Calculate the following amounts: Service charge expense for credit card sales Sales discount (contra-revenue) for sales on account Sales returns (contra-revenue) Gross sales revenue Net sales revenue Net cash collected from sales

Answers

Answer:

The Dimitrios Company

Service charge expense for credit card sales  = $564 ($18,800 * 3%)

Sales discount (contra-revenue) for sales on account = $40 ($2,000 * 2%)

Sales returns (contra-revenue) - $500

Gross sales revenue:

Cash                           $5,800

Cards                        $18,800

Accounts receivable $2,000

Total =                      $26,600

Net sales revenue = $26,100 ($26,600 - $500)

Net cash collected from sales:

Cash Sales $5,800

Card Sales $18,800

Accounts Receivable $2,000

Less: Card Fees $564

Cash Discounts $40

Cash Refund $500

Net cash = $ 25,496

Explanation:

a) Data and Analysis:

Sept. 2018:

Cash $5,800 Sales Revenue $5,800

Credit Cards Receivable $18,800 Sales Revenue $18,800

Credit Card Fee Expense $ 564 Cash $564

Cash $18,800 Credit Cards Receivable $18,800

Accounts Receivable $2,000 Sales Revenue $2,000, terms of 2/10, n/30.

Cash $1,960 Cash Discounts $40 Accounts Receivable $2,000

Sales Returns $500 Cash $500

Round Hammer is comparing two different capital structures: An all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 175,000 shares of stock outstanding. Under Plan II, there would be 125,000 shares of stock outstanding and $2.23 million in debt outstanding. The interest rate on the debt is 8 percent and there are no taxes.
a. Use M&M Proposition I to find the price per share. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. What is the value of the firm under each of the two proposed plans? (Do not round intermediate calculations and round your answers to the nearest whole dollar amount, e.g., 32.)

Answers

Answer:

A) total debt = $2,230,000 and it represents 175,000 - 125,000 = 50,000 outstanding shares

price per share = $2,230,000 / 50,000 = $44.60 per share

B) enterprise value = 175,000 x $44.60 =  $7,805,000

According to M&M proposition I, the enterprise value is the same with or without any outstanding debt. So the company's value is the same for both alternatives.

How do you construct a General Journal.​

Answers

At a minimum, an accounting journal entry should include the following:
The accounts into which the debits and credits are to be recorded.
The date of the entry.
The accounting period in which the journal entry should be recorded.
The name of the person recording the entry.
Any managerial authorization(s)

On November 4, 2018, Blue Company acquired an asset (27.5-year residential real property) for $200,000 for use in its business. In 2018 and 2019, respectively, Blue took $642 and $5,128 of cost recovery. These amounts were incorrect; Blue applied the wrong percentages (i.e., those for 39-year rather than 27.5-year property). Blue should have taken $910 and $7,272 of cost recovery in 2018 and 2019, respectively. On January 1, 2020, the asset was sold for $180,000. If required, round all computations to the nearest dollar.
a. The adjusted basis of the asset at the end of 2017 is $.
b. The cost recovery deduction for 2018 is $.
c. The__________ on the sale of the asset in 2018 is $

Answers

Answer:

A. $191,818

B. $303

C. $11,515 loss

Explanation:

A) Calculation to determine what The adjusted basis of the asset at the end of 2017 is

2017 Asset's cost $200,000

Less recovery costs for 2017 and 2018

($910 + $7,272 = $8,182

December 31, 2018 $191,818

($200,000 - $8,182)

Therefore The adjusted basis of the asset at the end of 2017 is $191,818

B) Calculation to determine what The cost recovery deduction for 2018 is

Recovery cost = $200,000 x (1 / 27.5) x (0.5 / 12)

Recovery cost = $200,000 x3.636% × .5/12)

Recovery cost = $303

Therefore The cost recovery deduction for 2018 is $303

C) the asset's basis on the date of sale is = $191,818 - $303 = $191,515

Sales price - asset basis = $180,000 - $191,515 = $11,515 loss

Blue Company lost $11,515 when it sold the asset.

$.

c. The__________ on the sale of the asset in 2018 is $

Parliament Company, which expects to start operations on January 1, year 2, will sell digital cameras in shopping malls. Parliament has budgeted sales as indicated in the following table. The company expects a 10 percent increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March.

Required:
Determine the amount of sales revenue Parliament will report on its first quarter pro forma income statement.

Answers

Answer:

Note: The complete question is attached as picture below

We are add the previous month +10% to get that month's amounts

                              Sales Budget

                       January     February    March

Cash sales      $50,000   $55,000    $60,500

Credit sales    $120,000  $132,000  $145,200

Total sales      $170,000 $187,000  $205,700

Workings:

February

Cash sales = 50,000+(50,000*10%) = $55,000

Credit sales= 120,000+(120,000*10%) = $132,000

March

Cash sales = 55,000+(55,000*10%) = $60,500

Credit sales= 132,000+(132,000*10%) = $145,200

The amount of sales revenue Parliament will report on its first-quarter pro forma income statement is to be presented below:

Here we have added the  previous month +10% to get that month's amounts

So,

                             Sales Budget  

                      January     February    March

Cash sales      $50,000   $55,000    $60,500

Credit sales    $120,000  $132,000  $145,200

Total sales      $170,000 $187,000  $205,700

Workings note

For February

Cash sales = 50,000 + (50,000 ×10%)

= $55,000

Credit sales= 120,000+(120,000 × 10%)

= $132,000

For March

Cash sales = 55,000+(55,000 × 10%)

= $60,500

Credit sales= 132,000+(132,000 × 10%)

= $145,200

In this way, the amount should be determined.

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Full-time students at a particular university must have at least 12 credit hours, but may take up to 18 credit hours in a semester. A student is currently signed up for 15 credit hours. In deciding whether to add one more course to a fall semester schedule, which of the following is a marginal cost or benefit that will influence the student's decision?
Please choose the correct answer from the following choices, and then select the submit answer button.
a. the total number of semesters it will take to finish the degree if the student takes an additional class in each semester
b. the wages the student misses out on because the student has to quit a job to take any classes at all
c. the tuition bill for the semester
d. the additional technology fee that is paid per credit hour

Answers

Answer:

d. the additional technology fee that is paid per credit hour

Explanation:

Since in the question it is mentioned that the full time students should take minimum 12 credit hours but it would take maximum of 18 credit hours

Now the student signed up for 15 creditor hours and he wants to add one more so the marginal cost or benefit that can impact the decision of the students is that the extra technology fee that should be paid for per credit hour

Hence, the option d is correct

Many new ventures focusing on craft beer have been launched. If the goal is to make a profit, perhaps it would have been a better choice to forget making the beer and instead focus on the hops market. There is competition for the available supply of hops, and this is especially true of the organic varieties. Cassidy Brewery uses standards to carefully track their costs. For their Hopalong label their standard for hops is 20 pounds per barrel and their standard rate is $13.00 per pound. In the past period they produced 40 barrels of their Hopalong beer using 830 pounds of hops. The hops had a cost of $15.00 per pound. Compute the total rate variance and the total efficiency variance for the past month. Also, for each variance, indicate whether the variance is favorable or unfavorable.

Answers

Answer:

a. Total rate variance = $1,660 Unfavorable

b. Total efficiency variance = $450 Unfavorable

Explanation:

From the question, we have:

Standard for hops = 20 pounds per barrel

Standard rate = Standard rate for hops = $13.00 per pound

Barrels of Hopalong beer produced = 40

Actual quantity = Actual pounds of hops used = 830 pounds

Standard quantity = Standard pounds of hops = Standard for hops * Barrels of Hopalong beer produced = 20 * 40 = 800 pounds

Actual rate = Actual cost of hops per pound = $15

Therefore, we have:

a. Compute the total rate variance for the past month

Total rate variance = (Actual rate - Standard rate) * Actual quantity = ($15 - $13) * 830 = $1,660 Unfavorable

The total rate variance of $1,660 is unfavorable because the Actual rate is greater than the Standard rate.

b. Compute the total efficiency variance for the past month

Total efficiency variance = (Actual quantity - Standard quantity) * Standard rate = (830 - 800) * $15 = $450 Unfavorable

The total efficiency variance of $450 is unfavorable because the Actual quantity is greater than the Standard quantity.

What exactly allows individuals to consume more if they specialize and trade than if they don't

Answers

Answer:

They work within the company that allows them to do so. Vs. others that don't.

Explanation:

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A reconciliation of Zack's Company's pretax accounting income with its taxable income for 2018, its first year of operations, is as follows: Pretax accounting income $3,000,000 Excess tax depreciation (150,000) Taxable income $2,850,000 The excess tax depreciation will result in equal net taxable amounts in each of the next three years. Enacted tax rates are 40% in 2018, 35% in 2019 and 2020, and 30% in 2021. The total deferred tax liability to be reported on Charles's balance sheet at December 31, 2018, is

Answers

Answer:

the total deferred tax liability is $50,000

Explanation:

The computation of the total deferred tax liability is shown below:

Tax Depreciation 2019  $17500  {[$150000 ÷ 3] × 35%}  

Tax Depreciation 2020 $17500  {[$150000 ÷ 3] × 35%}  

Tax Depreciation 2021 $15000  {[$150000 ÷ 3] × 30%}  

Total Deferred Tax Liability $50,000

Hence, the total deferred tax liability is $50,000

1. Caleb owns a used book shop, charging $8 for each used book that he sells. It costs him $3.50 for each used book and $0.16 per bag. In addition, he spends $1150 on rent, $92 on electricity, and $2240 on labor costs each month. Analyze Caleb's business by answering the following questions. (5 points: Part I - 1 point; Part II - 1 point; Part III - 1 point; Part IV - 1 point; Part V - 1 point) Part I: What is Caleb's unit cost per used book that he sells

Answers

Answer: $3.66 per book

Explanation:

Every book that Caleb sells costs him $3.50 and he puts it in a bag that costs $0.16.

Units cost per used book is therefore:

= Unit cost of book + bag cost

= 3.50 + 0.16

= $3.66 per book

a. As far as the tax code is concerned, HeadBook will increase its expenses by $5,000 in either case. If it pays for the policy, it incurs a $5,000 health care expense. If it raises Vanessa’s salary by $5,000, it incurs $5,000 of salary expense. If HeadBook is profitable and pays corporate profit taxes at a marginal 35 percent rate, by how much will HeadBook’s tax liability be reduced in either case?

Answers

Answer: $1,750

Explanation:

Incurring a health insurance cost of $5,000 or increasing salaries by $5,000 will have the same effect on the taxes because they will both be removed from the income before the taxes are calculated.

The reduction in tax in either case is:

= Expense * Tax rate

= 5,000 * 35%

= $1,750

You are attending a training session on the principles that will help you do a better job of managing a new company-wide diversity program.. You are going through an exercise in which you are given two statements and asked to pick the one that effectively illustrates one of these principles.
Here is one set of statements:
Statement 1
Remember to keep looking for the ideal candidate for a position. Settling for an applicant that lacks all the skills necessary to perform a job, but adds to the diversity of your workforce, is not ideal.
Statement 2
You will be better able to increase the diversity of your workforce if you interview candidates with entry-level experience even though it might be ideal to hire someone with years of experience.
You should choose statement _________as the more appropriate strategy for managing diversity, since it is an example of_________.
You were unable td Statement 1 e training, but your coworker has offered to fill you in on the details that you missed. Identify which of the following statements your coworer to indicate as diversity principles discussed during your absence.
a. Surface-level diversity should not be treated as more important than deep-level diversity
b. Do not lower hiring standards to promote diversity in the workplace
c. Keep trying to accomplish as much as possible, even if implementing the diversity program becomes difficult.

Answers

Answer:

Managing a Company-wide Diversity Program

1. The statement that effectively illustrates a diversity principle is:

Statement 2

You will be better able to increase the diversity of your workforce if you interview candidates with entry-level experience even though it might be ideal to hire someone with years of experience.

2. You should choose statement ___2______as the more appropriate strategy for managing diversity, since it is an example of__managing high standards_______.

3. The statement that indicates one of the diversity principles discussed during your absence is:

a. Surface-level diversity should not be treated as more important than deep-level diversity.

Explanation:

Workplace diversity is an important current topic.  Diversity encourages productivity, creativity, innovation, and increased customer service.  Diversity ensures that our limited worldviews are expanded to include others who are not, and do not think, like us but are humans created in Love and Mercy, to work with us, to make the world a better place.  In today's workplace, a diverse culture looks beyond the familiar-cultural boundaries to embrace diverse peoples without minding their sex, race, sexual orientations, education, and other human attributes.

The following are budgeted data: January February March Sales in units 16,900 23,800 19,900 Production in units 19,900 20,900 20,000 One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 25% of the following month's production needs. Purchases of raw materials for February would be budgeted to be:

Answers

Answer:

Purchases= 20,675 pounds

Explanation:

Giving the following information:

Production:

Feb= 20,900

Mar= 20,000

One pound of material is required for each finished unit.

Desired ending inventory= 25% of the following month's production needs.

To calculate the purchase required for February, we need to use the following formula:

Purchases= production + desired ending inventory - beginning inventory

Purchases= 20,900 + (20,000*0.25) - (20,900*0.25)

Purchases= 20,675

Turrubiates Corporation makes a product that uses a material with the following standards:
Standard quantity 8.4 liters per unit
Standard price $2.90 per liter
Standard cost $24.36 per unit
The company budgeted for production of 4,200 units in April, but actual production was 4,300 units. The company used 37,000 liters of direct material to produce this output. The company purchased 20,500 liters of the direct material at $3.0 per liter. The direct materials purchases variance is computed when the materials are purchased.
The materials quantity variance for April is:__________

Answers

Answer:

the materials quantity variance for April is $2,552 unfavorable

Explanation:

The computation of the materials quantity variance for April is shown below:

= (standard quantity - actual quantity) × standard rate

= (4,300 units × 8.4 liters - 37,000 liters) × $2.90

=  (36,120 liters  - 37,000 liters) × $2.90

= 880 liters × $2.90

= $2,552 unfavorable

hence, the materials quantity variance for April is $2,552 unfavorable

The same is followed  

Junko's car dealership has been suffering from dust on the cars in its lot ever since Mak opened his bakery nearby. The bakery's flour deliveries send waves of dust down the block. Junko offers to cover half of the cost of Mak adding a shelter for his delivery area to reduce the blowing of flour dust toward the dealership. This is an example of reducing a negative externality through:

Answers

Answer:

"Private bargaining" seems to the appropriate response.

Explanation:

An accidental result of such an operation obtained by a corporate system as well as the agent isn't a respondent to this product or group of products, is termed as Externality.Factory pollution would be a detrimental externality as well as the costs are paid by local people. Correspondingly, thick planting supplies the locality with natural ventilation, which is a good externality.

The groups remain private or third-party support until they reached a compromise. Thus the solution seems to be the right one.

each time mayberry nursery hires a new employee, it must wait for some period of time before the employee can meet production standard. Management is unsure of the learning curve in its operations but it knows the first job by a new employees averages 40 hours and the second job averages 32 hours. assume all jobs to be equal in size. what is the learning curve percentage, assuming the incremental unit time learning model

Answers

Answer:

Learning percentage = 1.6%

Explanation:

Given - Each time may berry nursery hires a new employee, it must wait for some period of time before the employee can meet production standard. Management is unsure of the learning curve in its operations but it knows the first job by a new employees averages 40 hours and the second job averages 32 hours. assume all jobs to be equal in size.

To find - What is the learning curve percentage, assuming the incremental unit time learning model.

Proof -

First job = 40 hours

Second job = 32 hours

Now,

Job           Job hours               Cumm. of hours               Incremental av. hours

1                    40                              40                                        40

2                    32                             72                                         64

Learning percentage = [tex]\frac{64}{40}[/tex] = 1.6%

On January 1, 20X1, the Dallas Auto Parts Company acquired nine identical assembly robots for a total of $594,000 cash. The robots had an expected useful life of 10 years and an expected residual value of $54,000 in total. Dallas uses straight-line depreciation.
1. Set up T-accounts and prepare the journal entries for the acquisition and for the first annual depreciation charge. Post to T-accounts.
B. On December 31, 20X3, Dallas sold one of the robots for $40,000 in cash. The robot had an original cost of $66,000 and an expected residual value of $6,000. Prepare the journal entry for the sale. Refer to requirement
2. Suppose Dallas had sold the robot for $62,000 cash instead of $40.000. Prepare the journal entry for the sale.

Answers

Answer:

Dallas Auto Parts Company

1. T-accounts and journal entries for the acquisition and first annual depreciation charge:

Journal Entries:

Jan. 1, 20X1:

Debit Assembly Robots (Equipment) $594,000

Credit Cash $594,000

To record the acquisition of nine identical robots.

Dec. 31, 20x1:

Debit Depreciation Expense $54,000

Credit Accumulated Depreciation $54,000

To record the depreciation expense for the first year.

Assembly Robots (Equipment)

Date             Account Titles         Debit       Credit

Jan. 1, 20X1  Cash                $594,000

Cash

Date             Account Titles         Debit       Credit

Jan. 1, 20X1 Assembly Robots (Equipment) $594,000

Depreciation Expense

Date               Account Titles         Debit       Credit

Dec. 31, 20X1 Accumulated Depr. $54,000

Accumulated Depreciation - Equipment

Date               Account Titles         Debit       Credit

Dec. 31, 20X1 Depreciation Expense        $54,000

B. Journal Entries for the sale of one robot for $40,000 cash.

December 31, 20X1:

Debit Cash $40,000

Credit Sale of Equipment $40,000

To record the sale of one robot for cash.

Debit Accumulated Depreciation $18,000

Credit Sale of Equipment $18,000

To transfer the accumulated depreciation to the sale of equipment account.

Debit Sale of Equipment $66,000

Credit Equipment $66,000

To transfer the equipment account to the sale of equipment.

Debit Loss from Sale of Equipment $8,000

Credit Sale of Equipment $8,000

To record the loss from sale of equipment.

2. Journal Entries for the sale of the robot for $62,000 cash:

December 31, 20X1:

Debit Cash $62,000

Credit Sale of Equipment $62,000

To record the cash receipts from sale of equipment.

Debit Accumulated Depreciation $18,000

Credit Sale of Equipment $18,000

To transfer the accumulated depreciation to the sale of equipment.

Debit Sale of Equipment $66,000

Credit Equipment $66,000

To transfer the equipment account to the sale of equipment.

Debit Sale of Equipment $14,000

Credit Gain from sale of Equipment $14,000

To record the gain from the sale of equipment.

Explanation:

a) Data and Calculations:

Cost of nine assembly robots = $594,000

Unit cost of a robot = $66,000 ($594,000/9)

Expected useful life = 10 years

Expected residual value = $54,000

Unit residual value = $6,000 ($54,000/9)

Depreciable amount for each robot = $60,000 ($66,000 - $6,000)

Straight-line annual depreciation expense = $6,000 ($60,000/10)

Sale of one robot for $40,000 cash:

Accumulated depreciation for one robot on December 31, 20x3 = $18,000

Net book value = $48,000 ($66,000 - $18,000)

Cash $40,000 Sale of Equipment $40,000

Accumulated Depreciation $18,000 Sale of Equipment $18,000

Sale of Equipment $66,000 Equipment $66,000

Loss from Sale of Equipment $8,000 Sale of Equipment $8,000

Sale of one robot for $62,000

Accumulated depreciation for one robot on December 31, 20x3 = $18,000

Net book value = $48,000 ($66,000 - $18,000)

Cash $62,000 Sale of Equipment $62,000

Accumulated Depreciation $18,000 Sale of Equipment $18,000

Sale of Equipment $66,000 Equipment $66,000

Sale of Equipment $14,000 Gain from sale of Equipment $14,000

What do we call the principle that costs of production will increase by the inefficient reallocation of specialized resources for the production of additional goods for which there sources are not well suited?

A the law of natural economics

B the law of market regulation

C the law of macro-economic control

D the law of increasing opportunity costs​

Answers

Answer:

the law of market regulation

Explanation:

i did this in my business class

Montgomery owns a nuclear power plant in the town of Springfield. His power plant dumps substantial quantities of radioactive waste into the local pond, which has given rise to a mutant guppy fish population with three eyes.The town decides to have Montgomery do something about the externality. Which method would NOT result in Montgomery accounting for the social cost of running the power plant

Answers

Answer:

Subsidize Montgomery for every three-eyed fish they find in the pond.

Explanation:

From the question we are informed about Montgomery who owns a nuclear power plant in the town of Springfield. His power plant dumps substantial quantities of radioactive waste into the local pond, which has given rise to a mutant guppy fish population with three eyes.The town decides to have Montgomery do something about the externality. In this case the method that would NOT result in Montgomery accounting for the social cost of running the power plant is Subsidize Montgomery for every three-eyed fish they find in the pond. Social cost can be regarded as addition of private costs that comes from a transaction as well as costs that is been imposed on the consumers as a result of exposure to transaction that did not compensated or charged for. It is addition of both private and external costs. Therefore, if there is subsidy for three-eyed fish will prevent him from social cost

You make component X in-house at a cost of $16 per unit, which consists of $2 direct labor per unit, $7 direct materials per unit, $2 fixed overhead per unit, and $5 variable overhead per unit. You need 1,000 units of X per month. An outside supplier has offered to sell component X to you at $12 per unit. If you outsource the production of X to the supplier, how much will your profit change in the short term

Answers

Answer:

Change in profit is Nil

Explanation:

To determine whether to outsource the production of product X or not, we would compare the variable cost internal production to the external purchase price. And then adjust  the net figure for the fixed costs.

For a make or buy decision the relevant cash flows include

1. the differential variable cost of the two options  

2. savings from avoidable fixed costs associated with internal production

                                                                                                  $

Variable cost internal production (2+7+5)                             14

External buy in price                                                               12    

Savings per unit  of bought from outside                             2  

Savings on  1000 units (2× 1,000)                                         2,000

Unavoidable  fixed cost (2  ×    1,000)                                 (2,000)    

Net change in profit                                                                   Nil  

Note we assume that the fixed overhead is unavoidable. That is it will still be incurred whether or the product is outsourced    

Two years ago, Kimberly became a 30 percent partner in the KST Partnership with a contribution of investment land with a $10,000 basis and a $16,000 fair market value. On January 2 of this year, Kimberly has a $15,000 basis in her partnership interest, and none of her pre-contribution gain has been recognized. On January 2 Kimberly receives an operating distribution of a tract of land (not the contributed land) with a $12,000 basis and an $18,000 fair market value.
a. What is Kimberly’s remaining basis in KST after the distribution?
b. What is KST’s basis in the land Kimberly contributed after Kimberly receives this distribution?

Answers

Answer:

A. $6,000

B. $13,000

Explanation:

A. Calculation to determine Kimberly’s remaining basis in KST after the distribution

Basis in KST$ 15,000

Add §737 gain $3,000

($15,000-$12,000)

Deduct Carryover basis in land ($12,000)

Remaining basis in KST $6,000

($15,000+$3,000-$12,000).

Therefore Kimberly’s remaining basis in KST after the distribution will be $6,000

B. Calculation to determine KST’s basis in the land Kimberly contributed after Kimberly receives this distribution

KST basis upon contribution $10,000

Add Kimberly’s §737 gain $3,000

($15,000-$12,000)

KST’s basis in land $13,000

($10,000+$3,000)

Therefore KST’s basis in the land Kimberly contributed after Kimberly receives this distribution is $13,000

Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise Freight Paid by Seller Terms Returns and Allowances a. $14,200 - FOB shipping point, 1/10, n/30 $700 b. 10,700 $400 FOB shipping point, 2/10, n/30 1,300 c. 5,700 - FOB destination, 1/10, n/30 500 d. 3,800 200 FOB shipping point, 2/10, n/30 500 e. 1,500 - FOB destination, 2/10, n/30 -

Answers

Answer:

a. Amounts to be Paid on Invoice = $12,150

b. Amounts to be Paid on Invoice = $7,920

c. Amounts to be Paid on Invoice = $4,680

d. Amounts to be Paid on Invoice = $2,840

e. Amounts to be Paid on Invoice = $1,200

Explanation:

a. $14,200 - FOB shipping point, 1/10, n/30 $700

Amounts to be Paid on Invoice = ($14,200 - $700) * (10/10 - 1/10) = $12,150

b. 10,700 $400 FOB shipping point, 2/10, n/30 1,300

Amounts to be Paid on Invoice = (($10,700 - $1,300) * (10/10 - 2/10)) + $400 = $7,920

c. 5,700 - FOB destination, 1/10, n/30 500

Amounts to be Paid on Invoice = ($5,700 - $500) * (10/10 - 1/10) = $4,680

d. 3,800 200 FOB shipping point, 2/10, n/30 500

Amounts to be Paid on Invoice = (($3,800 - $500) * (10/10 - 2/10)) + $200 = $2,840

e. 1,500 - FOB destination, 2/10, n/30 -

Amounts to be Paid on Invoice = $1,500 * (10/10 - 2/10) = $1,200

Stoney Brook Company produces two products (X and Y) from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Joint manufacturing costs for the year were $60,000. Sales values and costs were as follows: If Processed Further Product Units Made Sales Price at Split-Off Sales Value Separable Cost X 9,000 $ 40,000 $ 78,000 $ 10,500 Y 6,000 80,000 90,000 7,500 If the joint production costs are allocated based on the net-realizable-value method, the amount of joint cost assigned to product Y would be:

Answers

Answer:

Apportioned joint cost to Product Y = $33,000

Explanation:

The net realizable sales value is the difference between the sales value less the separable cost.

Apportioned joint cost

= applicable net realizable value /Total net realizable value × Joint costs

                                                     $

                                                Net-realizable value

Product X = 78,000-10500=    67,500

Product Y = 90,000-7500=       82,500

Total net-releasable value        150,000

Apportioned joint cost:

Product Y=82500/150,000×  $60,000= $ 33,000

Product Y = $33,000

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