Answer:
1.08 times
Explanation:
Mason corporation has $650,000 in invested assets
Sales is $700,000
Operating income is $99,000
Minimum investment on return is 15 percent
Therefore the investment turnover for mason corporation can be calculated as follows
= net sales/debt
= 700,000/650,000
= 1.08 times
Lovely Lotion Inc. produces three different lotions: hand, body, and foot. The lotions are produced jointly in a mixing process that costs a total of $250 per batch. At the split-off point, one batch produces 80, 40, and 25 bottles of hand, body, and foot lotion, respectively. After the split-off point, hand lotion is sold immediately for $2.50 per bottle. Body lotion is processed further at an additional cost of $0.25 per bottle and then sold for $5.75 per bottle. Foot lotion is processed further at an additional cost of $0.85 per bottle and then sold for $4.00 per bottle. Assume that body and foot lotion could be sold at the split-off point for $3.00 and $3.20 per bottle, respectively.
1. Using the market value at split-off method, allocate the joint costs of production to each product.
2. A lotion manufacturing company produces three types of lotions. After the split-off point the company continues to sell the body lotion and makes $0.25 profit per bottle. The foot lotion generates $0.05 loss per bottle. Which lotion should be continued after the split-off point?
A. Hand lotion.
B. Body lotion.
C. Foot lotion.
D. Body and foot lotion.
3. Allocate the joint costs of production to each product using the net realizable value method.
Answer:
1) Hand lotion : Joint cost = $250
body lotion : joint cost = $250
foot lotion : Joint cost = $250
2) Body lotion
The joint costs of production for each product is : $250
Explanation:
cost per batch = $250
At spit off point
one batch produces : 80 bottles of hand lotion, 40 body lotions, 25 foot lotion
After spit-off point : Hand lotion is $2.5 per bottle
cost of further processing of body lotion = $0.25
value of body lotion = $5.75
cost of further processing of foot lotion = $0.85
market value of foot lotion = $4.00
Assuming that body and foot lotion could be sold at the split-off point for $3.00 and $3.20 per bottle, respectively.
1 ) using the market value at split-off method to allocate the joint costs of production to each product
Hand lotion : Joint cost = $250
body lotion : joint cost = $250
foot lotion : Joint cost = $250
this is because the joint cost of producing each product in every batch is the same
2) The lotion that should be continued after split-off is
Body lotion because the market value after split-off - cost for further production is better off other lotions ( highest market value after split-off)
i.e : $5.75 - $0.25 = $ 5.50
The joint costs of production for each product is : $250
Telecomp is a U.S.-based manufacturer of cellular telephones. It is planning to build a new manufacturing and distribution facility in either South Korea, China, Taiwan, Poland, or Mexico. The cost of the facility will differ between countries and will even vary within countries depending on the economic and political climate, including monetary exchange rates. The company has estimated the facility cost (in $ millions) in each country under three different future economic/political climates as follows.Economic/Political Climate Country Decline Same Improve South Korea 21.7 19.1 15.2 China 19.0 18.5 17.6 Taiwan 19.2 17.1 14.9 Poland 22.5 16.8 13.8 Mexico 25.0 21.2 12.5 Determine the best decision using the following decision criteria. (Note that since the payoff is cost, the maximax criteria becomes minimax and maximin becomes minimax.)
a. Maximin
b. Minimax
c. Hurwicz ( 0.40)
d. Equal likelihood
Answer:
a. Maximin = 19.0
b. Minimax = 17.6
c. Hurwicz ( 0.40) = Taiwan
d. Equal likelihood = Taiwan
Explanation:
Remember, we are told to: Note that since the payoff is cost, the maximax criteria becomes minimax and maximin becomes minimax
a) Maximin: Since the payoff is cost, we begin by determining the maximum cost for each alternative and then selecting the one which gives the minimum of these maximums. (minimax)
b) Minimax: Since the payoff is cost, we begin by determining the minimum cost for each alternative and then selecting the one which gives the maximum of these minimums. (maximin).
c) Hurwicz (0.40): In this method, we add and multiply each payoff value by alpha (0.4).
South Korea = 15.2 (0.4) + 21.7 (0.6) = 19.1 ( remember, in $ millions)
China = 17.6 (0.4) + 19.0 (0.6) = 18.44
Taiwan = 14.9 (0.4) + 19.2 (0.6) = 17.48
Poland = 13.8 (0.4) + 22.5 (0.6) = 19.02
Mexico = 12.5 (0.4) + 25.0 (0.6) = 20
From the values above we select the minimum outcome since the company is looking at saving cost. Which is Taiwan; having the lowest cost of $17.48 million.
d) Using the formula [tex]\frac{P_{1} +P_{2}+P_{3}...P_{n} }{n}[/tex] where P = payoffs value, n = number of events.
South Korea = 15.2 + 21.7 + 19.1 /3 = 18.66
China = 17.6 + 19.0 + 18.5 /3 = 18.36
Taiwan = 14.9 + 19.2 +17.1 /3 = 17.06
Poland = 13.8 + 22.5 + 16.8 /3 = 17.7
Mexico = 12.5 + 25.0 + 21.2 /3 = 19.56
Taiwan should be selected since it has the lowest cost of $17.06 million.
Chelene had been a caregiver for Marta’s elderly mother, Janis, for nine years. Shortly before Janis passed away, Chelene convinced her to buy Chelene’s house for Marta. Janis died before the papers were signed, however. Four months later, Marta used her inheritance to buy Chelene’s house without having it inspected. The house was built in the 1950s, and Chelene said it was in "perfect condition." Nevertheless, one year after the purchase, the basement started leaking. Marta had the paneling removed from the basement walls and discovered that the walls were bowed inward and cracked. Marta then had a civil engineer inspect the basement walls, and he found that the cracks had been caulked and painted over before the paneling was installed. He concluded that the "wall failure" had existed "for at least thirty years" and that the basement walls were "structurally unsound." Using the information presented in the chapter, answer the following questions.
1. Can Marta avoid the contract on the ground that both parties made a mistake about the condition of the house? Explain. 2. Can Marta sue Chelene for fraudulent misrepresentation? Why or why not? What element (or elements) might be lacking?. 3. Now assume that Chelene knew that the basement walls were cracked and bowed and that she hired someone to install paneling before offering to sell the house. Did she have a duty to disclose this defect to Marta? Could a court find that Chelene's silence in this situation constituted misrepresentation? Explain.
Answer and Explanation:
1. Marta cannot avoid the contract on the basis of a mistake of buying the house because she was supposed to inspect the house she was buying
2. Marta cannot sue Chelene for fraudulent misrepresentation because Chelene was not aware of the condition of the house. The elements in fraudulent misrepresentation are lacking : no intention to deceive, no misrepresentation of material facts
3. It would be Chelene's duty to reveal that there is defect in the house and if not the court would see this as misresprentation.
4. There was no undue influence from Chelene in selling the house and so Marta and Janis even she was alive cannot revoke the contract on this basis
Bill and Ted are deciding what musical instruments they want to learn pick between the guitar, keyboard, and the drums to play for their band. They can They both want to have a good band, but also each has a preference over what to play. Both like the guitar over all else. However, Bill likes the keyboard more than the drums and Ted likes the drums more than the keyboard. What is crucial is that each chooses a different instrument, otherwise the band is pretty terrible. The actual combination does not affect the quality of the band. One night, Bill and Ted simultaneously reveal to each other what instrument they have bought and learned to play. Since they bought AND learned to play the instru- are committed to it! Given the information above, answer the following: ment they
1. Does either Bill or Ted have a dominant/dominated strategy? Explain
2. If Bill picks the keyboard, is it a best response for Ted to pick the drums? Explain
3. If Ted picks the guitar, is it a best response for Bill to pick the keyboard? Explain
4. Can there exist a Nash equilibrium in which Bill picks the drums and Ted picks the keyboard? Explain
5. Can there exist a Nash Equlibrium in which Bill picks the guitar and Ted picks the drums? Explain
Answer and Explanation:
1. There is no dominant strategy as each person has to respond with a different strategy like using a different instrument depending on the instrument chosen by the other to achieve best payoff
2. If Bill picks keyboard then it would be best for Ted to pick guitar as this is his preferred instrument which would bring best payoff
3. If Ted picks guitar, then bull should pick keyboard which he prefers and would be the best payoff
4. A nash equilibrium would not exist here since Ted should choose guitar if bull chooses drums and bill should choose guitar if Ted chooses keyboard
5. A Nash equilibrium can exist here since Ted should choose drums when bill chooses guitar.
A (Static) Using T accounts to record all business transactions. LO 3-1, 3-2, 3-4
The following accounts and transactions are for Vincent Sutton, Landscape Consultant.
Transactions:
Sutton invested $90,000 in cash to start the business.
Paid $6,000 for the current month’s rent.
Bought office furniture for $10,580 in cash.
Performed services for $8,200 in cash.
Paid $1,250 for the monthly telephone bill.
Performed services for $14,000 on credit.
Purchased a computer and copier for $18,000; paid $7,200 in cash immediately with the balance due in 30 days.
Received $7,000 from credit clients.
Paid $2,800 in cash for office cleaning services for the month.
Purchased additional office chairs for $5,800; received credit terms of 30 days.
Purchased office equipment for $22,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
Issued a check for $9,400 to pay salaries.
Performed services for $14,500 in cash.
Performed services for $16,000 on credit.
Collected $8,000 on accounts receivable from charge customers.
Issued a check for $2,900 in partial payment of the amount owed for office chairs.
Paid $725 to a duplicating company for photocopy work performed during the month.
Paid $1,280 for the monthly electric bill.
Sutton withdrew $5,500 in cash for personal expenses.
Post the above transactions into the appropriate T accounts.
Analyze:
What liabilities does the business have after all transactions have been recorded?
Complete this question by entering your answers in the tabs below.
Transactions
Analyze
Post the above transactions into the appropriate T accounts.
Cash Accounts Receivable
Bal.
Bal.
Office Furniture Office Equipment
Bal. Bal.
Accounts Payable Vincent Sutton, Capital
Bal.
Bal.
Vincent Sutton, Drawing Fees Income
Bal.
Bal.
Rent Expense Utilities Expense
Bal. Bal.
Salaries Expense Telephone Expense
Bal. Bal.
Miscellaneous Expense
Bal.
Complete this question by entering your answers in the tabs below.
What liabilities does the business have after all transactions have been recorded?
Liabilities
Answer:
It is very difficult to record T accounts since there is not a lot of room here and things get complicated very easily. So I used an excel spreadsheet to post the accounts on an accounting equation format.
Assets increase when they are debited and they decrease when they are credited. The opposite happens to liabilities and equity, they increase when they are credited and decrease when they are debited. Service revenue is credited, while all expenses are debited.
The reason why the drawings account has a negative balance is that even though it is an equity account, it has a debit balance since it decreases capital.
In order for the equation to balance, you have to close the accounts, but that was not a requirement of the question.
What liabilities does the business have after all transactions have been recorded?
the only liability account is accounts payable with a credit balance of $24,700
Help me please!!!!
Explain possible circumstances under which an adult child may
have undue influence in a relationship with an elderly parent.
Answer:
i think seeing their grand parent arguing with a parent, probably would make them question a lot, and they might evem stay away from them for a while, though, i may have took your question wrong, very sorry
Explanation:
if your meaning a situation where the child either wants to get away from them or they feel apart from them, this might help.
there is no important
The income statement lists all the
account balances for the period.
A. revenue and expense
B. liability and capital
C. temporary and permanent
D. asset and withdrawal
Answer:
A. revenue and expense
Explanation:
An income statement is among the three important financial statements prepared by a business entity. It summarizes all incomes (revenues) and expenses (costs) of a company in a particular financial year. Total costs are subtracted from the total revenue to get the net income.
An income statement is prepared to show the profits of a business in a particular financial year. A positive net income indicates profits, while a negative net income denotes losses.
Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per unit costs to 2 decimal places.)
Answer:
The information about inventory and sales is missing, so I looked for a similar question:
Beginning inventory, January 1: 390 units at $3.80 Purchase January 9: 90 units at $4.00 Purchase January 25: 120 units at $4.10 Sale January 26: 430 units Ending inventory, January 31: 170 unitsBeginning inventory on January 1: 390 $3.80 = $1,482
Purchase on January 9: 90 $4.00 = $360
Purchase on January 25: 120 $4.10 = $492
total number of units = 600
total value = $2,334
average cost per unit = $3.89
cost of goods sold = 430 units x $3.89 = $1,672.70
ending inventory = 170 units x $3.89 = $661.30
To determine how students at a particular college feel about cigarette smoking in public places, all students in the college who chose to have their email address published in the college directory were sent an email with a link to an online survey. What is wrong with this sampling method?
A. Nothing, since students could go online to give their opinion.
B. Only smokers should have been surveyed.
C. They should have only sent the email to every 5th student in the directory.
D. The sampling method would result in a sample size that is too large.
E. Not all students would have an email listed in the student directory.
Answer:
b only smokers should have surveyed
Explanation:
because they actually smoke
Answer:
B
Explanation:
HOPE THIS HELP
World Company expects to operate at 80% of its productive capacity of 67,500 units per month. At this planned level, the company expects to use 32,400 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.600 direct labor hour per unit. At the 80% capacity level, the total budgeted cost includes $68,040 fixed overhead cost and $408,240 variable overhead cost. In the current month, the company incurred $472,000 actual overhead and 29,400 actual labor hours while producing 51,000 units.
Required:
a. Compute the overhead volume variance.
b. Compute the overhead controllable variance.
Answer:
1. $3,780 Unfavorable
2. $453,600 Overhead controllable variance
Explanation:
Req. 1
Fixed Overhead Applied
Fixed OH per DL hr. ($68,040 ÷ $32,400) = 2.1
Standard DL hours = 0.60 * $51,000 = $30,600
Fixed OH applied = 2.1 * $30,600 = $64,260
Volume variance.
Total fixed OH applied $64,260
Total budgeted fixed OH $68,040
Fixed OH volume variance $3,780 Unfavorable
Req. 2
Overhead controllable variance.
Total actual overhead $ 472,000
Flexible budget overhead
Variable = $408,240 ÷ $32,400 = 12.6
=> $30,600 * 12.6 = $385,560
Fixed. $68,040
Total $453,600 Overhead controllable variance
To raise operating funds, Coyne Incorporated sold its office building to an insurance company on January 1, 2021, for $1,600,000 and immediately leased the building back. The operating lease is for 12 years of the building's estimated 20-year remaining useful life. The building has a fair value of $1,600,000 and a book value of $1,300,000 (its original cost was $2 million). The rental payments of $200,000 are payable to the insurance company each December 31. The lease has an implicit rate of 9%.
Prepare the appropriate entries for National Distribution Center on January 1, 2018 and December 31, 2018, to record the sale-leaseback and necessary adjustments.
1. Record Sale of Building
2. Record the beginning of the lease for National
3. Record the lease and interest expense for National
4. Record the amortization expense for national
Answer:
1. 1-Jan-21
Dr Cash $1,600,000
Dr Accumulated Depreciation $700,000
Cr Building $2,100,000
Cr Gain On Sale of Building (BF) $200,000
2. 1-Jan-21
Dr Right Of Use Assets ( 200000* PVAF 9% for 12 year) $1,432,000
Cr Lease Payable $1,432, 000
3. 31-Dec-21
Dr Interest Expense $128,880
Dr Lease Payment (BF) $71,120
Cr Cash $200,000
4. 31-Dec-21
Dr Amortization Expenses $71,120
Cr Right Of Use Assets $71,120
Explanation:
1. Preparation of the Journal entry to Record Sale of Building
1-Jan-21
Dr Cash $1,600,000
Dr Accumulated Depreciation $700,000
(2,000,000-1,300,000)
Cr Building $2,100,000
[(1,600,000+700,000)-200,000]
Cr Gain On Sale of Building (BF) $200,000
(To Record Lease)
2. Preparation of the journal entry to Record the beginning of the lease for National
1-Jan-21
Dr Right Of Use Assets ( 200000* PVAF 9% for 12year)
(200,000*7.16) $1,432,000
Cr Lease Payable $1,432, 000
(To Record The Leae Payable)
3. Preparation of the journal entry to Record the lease and interest expense for National
31-Dec-21
Dr Interest Exp
(1,432,000*9%) $128,880
Dr Lease Payment (BF) $71,120
(200,000-128,880)
Cr Cash $200,000
(To Record First Lease payment)
4. Preparation of the journal entry to Record the amortization expense for national
31-Dec-21
Dr Amortization Expenses $71,120
Cr Right Of Use Assets $71,120
(To Record Amortisation Expense)
Listed below in scrambled order are 11 income statement categories. Rank these categories below in the order they should appear on a multiple-step income statement.
( ) Discontinued operations.
( ) Cost of goods sold.
( ) Other revenues and gains/Other expenses and losses.
( ) Net income.
( ) Income taxes.
( ) Sales revenue.
( ) Gross profit on sales.
( ) Income from operations.
( ) Income from continuing operations before income taxes.
( ) Operating expenses.
( ) Income from continuing operations.
Answer:
1. Sales Revenue
Always first in an Income Statement.
2. Cost of Goods Sold
Subtracted from Revenue to find Gross Profit.
3. Gross Profit on Sales
Profit net of Cost of Goods sold.
4. Operating expenses
Expenses from the company's operations including wages and depreciation. Subtracted from Gross Profit to find Operating income.
5. Income from operations
Gross profit net of operating expenses.
6. Other revenues and gains
Added to Operating Income.
7. Income from continuing operations before income taxes
8. Income taxes
Subtracted to find income from continuing operations.
9. Income from continuing operations
10. Discontinued operations
Income from divisions and activities that have been discontinued.
11. Net Income
Given the following information about a fully amortizing loan, calculate the lender’s yield (rounded to the nearest tenth of a percent): loan amount: $166,950; term: 30 years; interest rate: 8%; monthly payment: $1,225.00; discount points: 2.
Answer:
c. 8.5%
Explanation:
Note: The following is the missing part. Other Closing Expenses: $3,611. A. 7.7% , B. 8.2%, C. 8.5%, D. 9.1%
Loan = $166,950
Rate = 8%
Life = 30 yrs
Period = 360
Installment = -1,225
Particulars Amount
Loan $166,950
Less: Discount points $3339
Less: Closing costs $3611
Net Borrowing $160,000
Now, we find the Effective borrowing Rate with the aid of MS Excel
Effective borrowing Rate = Rate(Nper, PMT, PV)
Effective borrowing Rate = Rate(360, -1225, 160000)
Effective borrowing Rate = 0.007044637(Monthly)
Annual Effective rate = 0.007044637 * 12
Annual Effective rate = 0.084535644
Annual Effective rate = 8.4535644%
Annual Effective rate = 8.5%
A lender is a person, a private or government institution, or a major bank that lends money to a person or a company with the anticipation of reimbursement. Repayment of every payment or cost will be included in the repayment.
The correct answer is c. 8.5%
The given information is:
Loan = $166,950
Rate = 8%
Life = 30 yrs
Period = 360
Installment = -1,225
Particulars Amount
Loan $166,950
Less: Discount points $3339
Less: Closing costs $3611
Net Borrowing $160,000
Calculation of the Effective borrowing Rate
Effective borrowing Rate = Rate(Nper, PMT, PV)
Effective borrowing Rate = Rate(360, -1225, 160000)
Effective borrowing Rate = 0.007044637(Monthly)
Annual Effective rate = [tex]0.007044637 \times 12[/tex]
Annual Effective rate = 0.084535644
Annual Effective rate = 8.4535644%
Annual Effective rate = 8.5%
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A 50-kilowatt gas turbine has an investment cost of $40,000. It costs another $14,000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The operation and maintenance expense for this turbine is $450 per year. Additionally, the hourly fuel expense for running the turbine is $7.50 per hour, and the turbine is expected to operate 3,000 hours each year. The cost of dismantling and disposing of the turbine at the end of its 8-year life is $8,000.
Required:
a. If the MARR is 15% per year, what is the annual equivalent life-cycle cost of the gas turbine?
b. What percent of annual life-cycle cost is related to fuel?
Answer:
The annual equivalent life-cycle cost (AW) of gas turbine = -$35,569.8
The percentage fuel cost = 63.25%
Explanation:
From the given information:
Let's start with the initial investment cost, which can be expressed by using the formula:
Initial investment cost = Investment cost of turbine + cost including shipping, insurance, site preparation, fuel lines, and fuel storage tanks.)
Initial investment cost = $40,000 + $14000
Initial investment cost = $54000
However, The annual fuel expense = hourly fuel expense for running turbine × total number of operating hour per year
The annual fuel expense = $7.50 × 3000
The annual fuel expense = $22,500
Therefore, the total operating cost per year = operating & maintenance cost per year + fuel expenses per year
the total operating cost per year = $(450 + 22500)
the total operating cost per year = $22,950
If the minimum acceptable rate of return MARR is 15%, then the number of years is 8 years
Therefore, the annual equivalent life-cycle cost (AC) of the gas turbine can be computed as follows:
AC(15%) = -54000 (A/P, 15%, 8) - $22950-$8000(A/F,15%,8)
where;
(A/P,15%,8) = annual worth factor of a present worth
(A/F,15%,8) = annual worth factor of future worth for 8 years and 15% interest rate.
If we use the discrete compounding table when i = 15%;
Value of (A/P,15%,8) = 0.229
Value of (A/F,15%,8) = 0.0729
∴
AC(15%) = -$54,000(0.2229) - $22,950 -$8000(0.0729)
AC(15%) = -$12,036.6 -$22950 -$583.2
AC(15%) = -$35,569.8
Therefore, the annual equivalent life-cycle cost (AW) of gas turbine = -$35,569.8
b.
The percentage of the annual life-cycle cost related to the fuel can be calculated by using the formula :
[tex]\mathbf{\% \ fuel \ cost = \dfrac{fuel \ cost \ per \ year}{total \ annual \ life \ cycle \ cost }\times 100\%}[/tex]
Replacing our values from above, we have:
[tex]\mathbf{\% \ fuel \ cost = \dfrac{\$22500}{\$35,569.8}\times 100\%}[/tex]
[tex]\mathbf{\% \ fuel \ cost = 0.6325\times 100\%}[/tex]
∴
The percentage fuel cost = 63.25%
Based on the given information, the annual equivalent life-cycle cost of the gas turbine is "$35,569.80," while the percent of the annual life-cycle cost is related to fuel is "65.87%."
This is based on the calculation below:
Given that: Initial investment cost => Investment cost of turbine + cost including shipping, insurance, site preparation, fuel lines, and fuel storage tanks.
Hence, we have the following:
Initial investment cost = $40,000 + $14,000;
=> Initial investment cost = $54,000.
On the other hand, The annual fuel expense = hourly fuel expense for running turbine × total number of operating hour per year;
Thus, we have the following:
The annual fuel expense = $7.50 × 3,000;
The annual fuel expense = $22,500.
Also, since, the total operating cost per year = operating & maintenance cost per year + fuel expenses per year;
We have the following:
the total operating cost per year = $(450 + 22,500);
the total operating cost per year = $22,950.
Therefore, given that the minimum acceptable rate of return MARR is 15%, then the number of years is 8 years.
Then, the annual equivalent life-cycle cost (AC) of the gas turbine is measured as:
AC (15%) = -54,000 (A/P, 15%, 8) - $22,950 - $8,000 (A/F,15%,8);
Here, we have the following details;
(A/P,15%,8) = annual worth factor of a present worth;
(A/F,15%,8) = annual worth factor of future worth for 8 years and 15% interest rate.
This, given that we use the discrete compounding table when i = 15%;
We have the following:
Value of (A/P,15%,8) = 0.229;
Value of (A/F,15%,8) = 0.0729.
AC (15%) = -$54,000 (0.2229) - $22,950 -$8,000 (0.0729);
AC(15%) = -$12,036.60 -$22,950 -$583.20;
AC(15%) = -$35,569.80.
Hence, the annual equivalent life-cycle cost (AW) of gas turbine = $35,569.80.
Similarly, the percent of the annual life-cycle cost is related to fuel is measured as = ($35,569.8 ÷ $54,000) × 100
=> 65.87%.
Hence, in this case, it is concluded that the lifecycle cost is essential when measuring the productivity of a project.
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The following information is available for Moiz Company:________.
Debit Credit
Common Stock $30,000
Retained Earnings 20,000
Dividends $30,000
Sales Revenue 510,000
Sales Returns and Allowances 20,000
Sales Discounts 7,000
Cost of Goods Sold 310,000
Freight-Out 2,000
Advertising Expense 15,000
Interest Expense 19,000
Salaries and Wages Expense 55,000
Utilities Expense 18,000
Depreciation Expense 7,000
Interest Revenue 23,000
Using the above information, prepare the closing entries for Moiz Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer and Explanation:
1. Interest Revenue $23,000
Sales Revenue $510,000
To Income Summary $533000
(Being closing of revenues accounts are closed)
2. Income Summary $453,000
To Sales returns $20,000
To Sales Discounts $7,000
To Cost Of goods sold $310,000
To Freight out $2,000
To Advertise Exp $15,000
To Interest Exp $19,000
To Salaries & Wages $55,000
To Utility $18,000
To Depreciation $7,000
(Being closing of expenses accounts are closed)
3. Income Summary $80,000
To Retained Earning $80,000
(Being profit is recorded)
4. Retained Earning $30,000
To Dividends $30,000
(Being closing of dividend is recorded)
Record the following transactions related to purchases for Horston’s Art Supplies using the general journal form provided below. Assume Horston’s uses a periodic inventory system. Omit transaction descriptions from entries.
Date Transaction
Sept. 1 Purchased $8,000 of merchandise on account, FOB destination, n/30.
3 Returned $1,000 of merchandise purchased on September 1 due to defects.
7 Purchased $1,500 of merchandise on account, terms FOB shipping point, 2/10, n/30.
Prepaid freight of $75 was added to the invoice.
14 Paid for the merchandise purchased on September 7, less discount.
20 Paid for merchandise purchased on September 1, less return.
Answer:
Sept. 1
Merchandise $8,000 (debit)
Accounts Payable $8,000 (credit)
Merchandise purchased on credit
Sept. 3
Accounts Payable $1,000 (debit)
Merchandise $1,000 (credit)
Merchandise Returned to Suppliers
Sept. 7
Merchandise $1,500 (debit)
Accounts Payable $1,500 (credit)
Merchandise purchased on credit
Sept. 14
Accounts Payable $1,500 (debit)
Cash $1,470 (credit)
Discount received $30 (credit)
Payment of amounts due and recognition of cash discount
Sept. 20
Accounts Payable $7,000 (debit)
Cash (credit)
Payments of Amount due
Explanation:
Journal Entries and their narrations have been prepared above.
Materials and manufacturing labor variances, standard costsDunn, Inc., is a privately held furniture manufacturer. For August 2014, Dunn had the following standards for one of its products, a wicker chair:The following data were compiled regarding actual performance: actual output units (chairs) produced, 2,000; square yards of input purchased and used, 3,700; price per square yard, $5.10; direct manufacturing labor costs, $8,820; actual hours of input, 900; labor price per hour, $9.80.Required:1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor. Give a plausible explanation of why each variance occurred.2. Suppose 6,000 square yards of materials were purchased (at $5.10 per square yard), even though only 3,700 square yards were used. Suppose further that variances are identified at their most timely control point; accordingly, direct materials price variances are isolated and traced at the time of purchase to the purchasing department rather than to the production department. Compute the price and efficiency variances under this approach.
Answer:
Please see answers below
Explanation:
1. Material price variance = AQ [ AP - SP]
= [ $5.10 - $5.0] × 3,700
= $370 (U)
Material efficiency variance = [AQ - SQ] × SP
= [3,700 - 2,000*2] × $5.0
= - $1,500 (F)
Flexible variance budget variance = Material price variance + Material efficiency variance
= $370(U) + -$1,500(F)
= -$1,130(F)
Reasons for unfavorable price variance
• When the purchase manager is not too skillful at buying materials needed for production
• When there is an unexpected increase in price of materials
Reasons for favorable efficiency variance
• Usage of high quality material
• Skilled labourers use less materials than budgeted
Direct labor rate variance = [AR - SR] × AH
= [$9.80 - $10] × 900
= -$180 (F)
Direct labor efficiency variance = [AH - SH] × SR
= [900 - 2,000*0.5] × $10
= -$1,000(F)
Flexible budget variance = Direct labor rate variance + Direct labor efficiency variance
= -$180(F) + -$1,000(F)
= -$1,180
Reasons for favorable rate variance
• When there is reduction in labor rate due to recession in an economy
• When more of semi skilled or unskilled labor are employed.
Reasons for favorable efficiency variance
• Usage of high quality raw materials
• When plant facilities are restructured, it means that labor would be more effective.
2. Material price variance = [$AP - SP] × AQ
= [$5.10 - $5.0] × 6,000
= $600(F)
Material efficiency variance = [AQ - SQ] × SP
= [6,000 - 2,000 × 0.5] × $5.0
= $25,000(F)
The shoe buyer plans to promote flip-flop sandals at $24.99. The buyer needs to purchase10,000 flip flops for the event. 6,000 flip-flop sandals have been purchased at a cost of $11.50. The planned markup for the event is 59.0%. What will be the average cost of the remaining sandals?
Answer:
$22.04
Explanation:
Sales price per sandal = $24.99
Sales price of 10,000 sandals = $24.99*10,000 = $249,900
Markup percentage = 59%
Cost of 10,000 sandals = $249,900 / 1 + 59%
Cost of 10,000 sandals = $249,900 / 1.59
Cost of 10,000 sandals = $157169.81
Cost of 10,000 sandals = $157,169.81
Less: Cost of 6000 sandals = $69,000 ($11.5*6,000)
Cost of the remaining 4,000 $88,169.81
Average cost of the remaining sandals = $88,169.81/4,000 sandals
Average cost of the remaining sandals = $22.0424525
Average cost of the remaining sandals = $22.04
Assume that in the short run a firm is producing 500 units of output, has average total costs of $300, and has average variable costs of $220. The firm's total fixed costs are. Select one: a. $40,000. b. $6.25. c. $0.16. d. $80.
Answer:
Total fixed costs= $40,000
Explanation:
First, we need to calculate the total variable cost and total cost:
Total cost= 500*300= $150,000
Total variable cost= 500*220= $110,000
Now, we can calculate the total fixed costs:
Total fixed costs= total cost - total variable cost
Total fixed costs= 150,000 - 110,000
Total fixed costs= $40,000
4. you follow the advice of your friend to be flexible especially
if you intend to open a retail business what PECS do
you
demonstrate?
Open to feedback
......................
Obtain estimates of daily relatives for the number of customers at a restaurant for the evening meal, given the following data.
Day Number Served Day Number Served
1 80 15 84
2 75 16 78
3 78 17 83
4 95 18 96
5 130 19 135
6 136 20 140
7 40 21 44
8 82 22 87
9 77 23 82
10 80 24 88
11 94 25 99
12 131 26 144
13 137 27 144
14 42 28 48
a. Use the centered moving average method. (Hint: Use a seven-day moving average.) (Round your intermediate calculations and final answers to 4 decimal places.) X⎯⎯⎯ 1's 2's 3's 4's 5's 6's 7's
b. Use the SA method. (Round your intermediate calculations to 3 decimals and final answers to 4 decimals.) SA Index 1's 2's 3's 4's 5's 6's 7's
Answer and Explanation:
Please find answer and explanation attached
Which of these is a placeholder in a document into which variable data is inserted during the process of a mail merge?
O data source
O main document
merge field
O none of the above
Answer:
ITS C merge field
Explanation:
HOPE THIS HELPS?
Answer:
c. merge field
Explanation:
Merge field - serves as a placeholder for the variable data that will be inserted into the main document during a mail merge procedure.
not Data source because its a list of information that is merged with a main document during a mail merge procedure.
not Main document because its a document used in a mail merge process with standard information that you personalize with recipient information.
Is cost minimization equivalent or identical the concept of product maximization. True of False. Explain
Answer:
True
Explanation:
Given a certain production level, cost minimization is equal to product maximization. Cost minimization refers to the production level where average total cost per unit is lowest. On the other hand, production maximization refers to maximizing product output given certain restraints, e.g. amount of raw materials, number of labor hours, etc. Product maximization basically refers to the efficiency of production.
If someone can achieve product maximization and cost minimization, they should be maximizing profit.
a. Fethe's Funny Hats is considering selling trademarked, orange-haired curly wigs for University of Tennessee football games. The purchase cost for a 2-year franchise to sell the wigs is $20,000. If demand is good (40% probability), then the net cash flows will be $27,000 per year for 2 years. If demand is bad (60% probability), then the net cash flows will be $6,000 per year for 2 years. Fethe's cost of capital is 13%. What is the expected NPV of the project?
b. If Fethe makes the investment today, then it will have the option to renew the franchise fee for 2 more years at the end of Year 2 for an additional payment of $20,000. In this case, the cash flows that occurred in Years 1 and 2 will be repeated (so if demand was good in Years 1 and 2, it will continue to be good in Years 3 and 4). Write out the decision tree. Note: The franchise fee payment at the end of Year 2 is known, so it should be discounted at the risk-free rate, which is 4%. Use decision-tree analysis to calculate the expected NPV.
Answer:
A) initial outlay = $20,000
expected cash flows = (40% x $27,000) + (60% x $6,000) = $14,400
NPV = -$20,000 + $14,400/1.13 + $14,400/1.13² = $4,020.68
B) Fethe acquires franchise $20,000
things go bad, NPV = -$20,000 + $6,000/1.13 + $6,000/1.13² = -$9,991.39. The project is abandoned after the first 2 years.things go well, NPV = -$20,000 + $27,000/1.13 + $27,000/1.13² = $25,038.77. The franchise is renewed for 2 more years.⇒ since the project continues, the present value of the cash flows are:
year 0 = -$20,000
year 1 = $27,000/1.13 = $23,893.81
year 2 = $27,000/1.13² - $20,000/1.04² = $5,482.03
year 3 = $27,000/1.13³ = $18,712.35
year 4 = $27,000/1.13⁴ = $16,559.61
NPV = $44,647.80
Your supervisor has come to you with the following list of expenditures for the year and is asking you whether they should be capitalized or expensed as repairs and maintenance. Indicate all of the expenditures that would most appropriately be capitalized.
1. Re-painted the office building.
2. Added a new wing onto the office building.
3. Took their fleet of cars in for servicing (changing the oil, etc.).
4. Added newer electronic locks on the doors in the production building.
5. Had an engine rebuilt in one of their fleet cars.
Answer:
Capitalized Expenditures:
2. Added a new wing onto the office building.
5. Had an engine rebuilt in one of their fleet cars.
Explanation:
Capitalization is the process of delaying the full recognition of an expense for the acquisition of a new asset with long-term life so that the costs can be treated as an expense gradually over its useful life through an accounting method known as depreciation or amortization.
The criteria for capitalizing expenditure depend on whether the expenditure is necessary to bring the asset to the condition and location where it can be operated as desired by the management. It must also meet the threshold amount set by management for capitalization. This is because some assets can be used for more than one year and still they are not regarded as capital assets. Example is a stapling machine that costs less than a dollar.
The maintenance director has grown to value your insights and thoughtful questions when preparing bid packets to support her team's best work. As it turns out, her predecessor verbally modified the LED lights' model ordered by your employer when the original, awarded bid reponse included the model number for LEDs noted by the maintenance staff--that were not compatible with the fixtures of the company buildings/structures. When the maintenance director asks your opinion about her plan to amend the existing contract with the LED supplier to the model numbers actually used, as opposed to the ones listed in the contract that are not compliant with the existing features. That's what they have been doing so you should probably amend the contract as the director suggests, and you will save more time (no rebidding) and money (no additional modifications to the facility) than rebidding.
a. True
b. False
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.Transaction C |I |G| X |M|The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Antonio and Caroline's house.Dmitri buys a new set of tools to use in his plumbing business.Caroline buys a new BMW, which was assembled in Germany.Antonio's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China.Caroline gets a haircut.
Answer:
The given transactions categorised as being parts of C / I / G / X - M, from GDP
Explanation:
Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Antonio and Caroline's house : Government Purchase
Dmitri buys a new set of tools to use in his plumbing business : Investment
Caroline buys a new BMW, which was assembled in Germany : Imports
Antonio's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China : Export
Caroline gets a haircut : Consumption
PinaCompany is preparing its master budget for 2017. Relevant data pertaining to its sales, production, and direct materials budgets are as follows.
Sales: Sales for the year are expected to total 1,200,000 units. Quarterly sales are 20%, 25%, 26%, and 29%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $43 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 15% higher than the budgeted sales for the first quarter of 2017.
Production: Management desires to maintain the ending finished goods inventories at 25% of the next quarter’s budgeted sales volume.
Direct materials: Each unit requires 2 pounds of raw materials at a cost of $10 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter’s production requirements. Assume the production requirements for first quarter of 2018 are 510,000 pounds.
Required:
Prepare the sales, production, and direct materials budgets by quarters for 2017.
Answer:
where is the question
Explanation:
Green Cabinets is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job Number 1478), as summarized below Job Number:1478 Date Started: 4/07/20x8 Date Completed: 4/22/20x8 Description: Cherry kitchen cabinets Applied Manufacturing Overhead Hours Direct Materials Direct Labor Req No Ticket 128 Amount Hours Amount Rate Amount $375 235 385 18 414 130 588 391 25 395 140 133 9 243 401 215 52 Total 965 Total $1,244 Cost Summary Direct Material Cost 965 Direct Labor Cost 1,244 Applied Manufacturing Overhead Total Cost Green Cabinets applies overhead to jobs at a rate of $12 per direct labor hour.
(a) How much overhead would be applied to Job Number 1478 Applied Manufacturing Overhead
(b) What is the total cost of Job Number 1478?
Answer:
B
Explanation:
Green Cabinets is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job Number 1478), as summarized below Job Number:1478 Date Started: 4/07/20x8 Date Completed: 4/22/20x8 Description: Cherry kitchen cabinets Applied Manufacturing Overhead Hours Direct Materials Direct Labor Req No Ticket 128 Amount Hours Amount Rate Amount $375 235 385 18 414 130 588 391 25 395 140 133 9 243 401 215 52 Total 965 Total $1,244 Cost Summary Direct Material Cost 965 Direct Labor Cost 1,244 Applied Manufacturing Overhead Total Cost Green Cabinets applies overhead to jobs at a rate of $12 per direct labor hour.