On April 1, Cyclone Co. purchases a trencher for $280,000. The machine is expected to last five years and have a salvage value of $40,000. Exercise 8-12 Double-declining-balance, partial-year depreciation LO C2 Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double-declining-balance method. (Enter all amounts as positive values.)

Answers

Answer 1

Answer:

Year 1 = $84,000Year 2 = $78,400

Explanation:

Double declining means that the asset is depreciating at double the rate that it would with straight method:

Straight line depreciation = 280,000 / 5 years

= $56,000

Rate = 56,000 / 280,000 = 20%

Double declining will be:

= 20 * 2 = 40%

Year 1 Depreciation:

= 40% * 280,000 * 9/12 months

= $84,000

Year 2 Deprecation:

= 40% * Net book value

= 40% * (280,000 - 84,000)

= $78,400


Related Questions

Bernson Corporation is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $492,000 and 30,000 machine-hours for the period. The company incurred actual total fixed manufacturing overhead of $517,000 and 28,300 total machine-hours during the period. The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to: (Round your intermediate calculations to 2 decimal places.)

Answers

Answer: $‭464,120‬

Explanation:

Find the predetermined overhead rate:

= Estimated fixed manufacturing overhead / estimated machine hours

= 492,000/30,000

= $16.40

The actual machine hours for the period was 28,300 hours.

Manufacturing overhead applied would be:

= Predetermined rate * actual machine hours

= 16.4 * 28,300

= $‭464,120‬

Wildhorse Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 144,000 miles. Taxi 10 cost $29,000 and is expected to have a salvage value of $200. Taxi 10 was driven 31,000 miles in 2021 and 33,500 miles in 2022.
Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) per unit
Depreciable costs
eTextbook and Media
Compute the depreciation for each year. 2021 2022
Depreciation expense $

Answers

Answer:

depreciation expense 2021 = $6,200

depreciation expense 2022 = $6,700

Explanation:

depreciable value = $29,000 - $200 = $28,800

depreciation expense per mile driven = $28,800 / 144,000 = $0.20

number of miles driven during 2021 = 31,000

depreciation expense 2021 = 31,000 x $0.20 = $6,200

number of miles driven during 2020 = 33,500

depreciation expense 2022 = 33,500 x $0.20 = $6,700

Many names have been recognized as notable business leaders. Steve Jobs, Bill Gates, Elon Musk, Mark Zuckerberg, Jack Welch, and Colleen Barrett are all leaders identified for their unique approach to leading people. Choose one of the following business leaders for this assignment: Jeff Bezos, Elon Musk, Steve Jobs, Bill Gates, Jack Welch, Indira Nooyi, Anne Mulcahy, Howard Schultz, Colleen Barrett, Larry Page, Mark Zuckerberg, Warren Buffett, Richard Branson, Susan Wojcicki, Marissa Mayer, or Mary Barra. Select one leader and discuss (in 1,250-1,500 words) what you have learned about the selected individual as a leader and the leadership style that leader embodies. Address the following in your discussion: Identify a leader and justify why you selected that particular leader. With what organizations is the leader affiliated

Answers

What is this broooooo!

Suppose that three firms make up the entire tire manufacturing industry. One has a 40% market share, and the other two have a 30% market share each. The Herfindahl index of this industry is . Tread Tough, one of the firms with a 30% market share in the tire manufacturing industry, leaves the market. This would cause the Herfindahl index for the industry to .

Answers

Answer:

3400

increase

Explanation:

the Herfindahl index is used to calculate the concentration of firms in an industry

The HHI is calculated by squaring the market share of each firm in the industry.

40² + 30² + 30² = 3400

If one of the firms leaves the industry, the industry becomes more concentrated and the HHI index would increase

Vaughn Manufacturing has 11500 shares of 5%, $100 par value, non-cumulative preferred stock and 46000 shares of $1 par value common stock outstanding at December 31, 2020. There were no dividends declared in 2019. The board of directors declares and pays a $138000 dividend in 2020. What is the amount of dividends received by the common stockholders in 2020

Answers

Answer:

$23,000

Explanation:

Total dividends = $138,000 (Paid in 2020)

Common stock outstanding = 46,000 shares

Preferred dividend = Number of shares × Par value × 5%

= 11,500 × $100 × 5%

= $57,500

Dividends received by common stock holders in 2020 is;

= Total dividends - Preferred dividend

= ($138,000 × 1) - ($57,500 × 2)

= $138,000 - $115,000

= $23,000

Cozy Nights Industries manufactures down-filled comforters and uses activity-based costing. The following information is provided for September.

Activity Estimated indirect activity costs Allocation base Estimated quantity allocation base
Materials handling $12,600 Number of parts 4,200 parts
Assembly 55,440 Number of parts 4,200 parts
Packaging 10,920 Number of parts 1,050 comforters

Each comforter consists of 4 parts and the direct materials cost per comforter is $14.00.Based on the information given for Cozy Nights Industries, what is the total manufacturing cost per comforter?

a. $78.80.
b. $64.80.
c. $3.00.
d. $89.20.
d. $30.20.

Answers

Answer:

the total manufacturing cost per comforter is $120.4

Explanation:

The computation of the total manufacturig cost per comfortor is as follows:

= Cost × activity consumed ÷ Total activity

For material handling

= $12,600 × 4 ÷ 4,200

= $12

For Assembly

= $55,440 × 4 ÷ 4,200

= $52.8

For packaging

= $10,920 × 4 ÷ 1,050

= $41.6

And, the direct material cost is $14

So, the total manufacturing cost per comforter is

= $12 + $52.8 + $41.6 + $14

= $120.4

Hence, the total manufacturing cost per comforter is $120.4

This is the answer but the same is not provided in the given options

Cozy Nights Industries' total manufacturing cost per comforter is d. $89.20.

Data and Calculations:

Activity    Estimated indirect activity costs Allocation base  Estimated

                                                                                                   quantity  

Materials handling                 $12,600   Number of parts      4,200 parts

Assembly                                 55,440   Number of parts     4,200 parts

Packaging                                10,920   Number of parts     1,050 comforters

Overhead Rates:

Materials handling = $3 ($12,600/4,200) per part

Assembly = $13.20 ($55,440/4,200) per part

Packaging = $10.40 ($10,920/1,050) per comforter

Overhead cost:

Materials handling = $12 ($3 x 4)

Assembly = $52.80 ($13.20 x 4)

Packaging = $10.40 ($10.40 x 1)

Total overhead cost = $75.20

Total manufacturing cost per comforter:

Total overhead cost = $75.20

Direct materials cost = $14.00

Total manufacturing cost = $89.20

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During 2020, Concord Corporation acquired a mineral mine for $3700000 of which $395000 was ascribed to land value after the mineral has been removed. Geological surveys have indicated that 10 million units of the mineral could be extracted. During 2020, 1520000 units were extracted and 1300000 units were sold. What is the amount of depletion expense for 2020

Answers

Answer:

$429,650

Explanation:

Cost of Mineral Mine             $3,700,000

Less: Ascribed Land Value   $395,000

Depletionable Value             $3,305,000

No of units can be extracted from Mine = 10,000,000 units

No of units Sold = 1,300,000 units

Depletion Value = $3,305,000/10,000,000 * 1,300,000

Depletion Value = $429,650

When using the Copy to Purchase Order feature from within an Estimate , where do you need to turn on USE Purchase orders?

Answers

Answer: From expenses within the Accounts & settings.

Explanation:

When using the copy to purchase order feature within an estimate, to turn on USE purchase orders you navigate to expenses under accounts and settings. When you get to the accounts and settings you would see the feature that shows "Expenses" tab. In the Purchase orders section, select the edit icon. Turn on the Use purchase orders options.

Answer:account and settings, expenses, purchase order

Explanation:

The following cost data relate to the manufacturing activities of Black Diamond Ski Company during 2013:
Manufacturing Overhead Costs:
Property taxes, factory $ 3,000
Utilities, factory $ 5,000
Indirect labor $10,000
Depreciation, factory $24,000
Insurance, factory $ 6,000
Total Actual Manufacturing OH Costs $48,000 Other Costs Incurred: Purchases of raw materials $32,000 Direct labor costs $40,000 The Black Diamond Ski Company used 10,200 machine hours during the period. Inventories: Raw Materials, 1/1/13 $ 8,000 Raw Materials, 12/31/13 $ 7,000 Work in Process, 1/1/13 $ 6,000 Work in Process, 12/31/13 $ 7,500 The company uses normal costing to record product costs. The company budgeted for $52,500 in total overhead costs for the year. The cost driver associated with the overhead is machine hours and the company expected to use 10,500 machine hours.
REQUIRED:
1) Compute the amount of over-applied or under-applied overhead cost for the year.
2) Determine the cost of goods manufactured for the year.

Answers

Answer:

See Below

Explanation:

1.

= Actual manufacturing overhead cost - Budgeted total overhead

Actual manufacturing overhead cost = $48,000

Budgeted total overhead = $52,500

= $48,000 - $52,500

= $4,500

The above is under applied overhead since Budgeted overhead is more than the actual overhead expended.

2. Cost of goods manufactured

Inventories ; raw materials at the beginning

$8,000

Add purchases of raw materials

$32,000

Less direct materials ending

$7,000

Direct materials used

$33,000

Direct labor cost

$40,000

Manufacturing overhead cost

$77,000

Indirect labor

$10,000

Property tax

$3,000

Utilities factory

$3,000

Suppose that the North American Free Trade Agreement (NAFTA) resulted in a single large market for wheat instead of three separate markets in Canada, the United States, and Mexico. The demand schedule below shows the number, In billions, of bushels of wheat demanded per year by each country at four different prices per bushel.

Complete the demand schedule for wheat by solving for the quantity of wheat demanded in the new North American market. U.S. Mexico North American Market.

Price Canada U.S Mexico North Americain market
$10 6 25 5
8 9 28 7
6 11 32 9
4 13 35 12

Answers

Answer:

North American Free Trade Agreement (NAFTA)

Demand Schedule for Wheat in the new North American Market

(Number in billions of bushels of wheat, demanded per year)

Price  Canada    U.S    Mexico   North American market

$10         6          25         5                   36

  8          9          28         7                   44

  6         11          32         9                   52

  4         13         35        12                   60

Explanation:

a) Data and Calculations:

Demand Schedule (number in billions of bushels of wheat)

Price  Canada    U.S    Mexico   North American market

$10         6          25         5                   36

  8          9          28         7                   44

  6         11          32         9                   52

  4         13         35        12                   60

b) The result shows the aggregate demand of bushels of wheat in the three markets when they become a single market.  This large market size will encourage wheat farmers to produce and supply more wheat and even reduce the price to $4 per bushel in order to reach the equilibrium demand of 60 billion bushels of wheat per year.  This huge market will engender economic growth in the market for wheat and its related industries.

Peach Company uses a weighted-average process-costing system. Company records disclosed that the firm completed 84,000 units during the month and had 18,700 units in process at month-end, 50% complete. Conversion costs associated with the beginning work-in-process inventory amounted to $248,000, and amounts that relate to the current month totaled $990,000. If conversion is incurred uniformly throughout manufacturing, Peach's equivalent-unit cost is:

Answers

Answer:

the equivalent unit cost is $13.26

Explanation:

The computation of the equivalent unit cost is shown below:

Calculation of Peach Equivalent-unit cost is

= Total Cost ÷ Units

= ($990,000 + $248,000) ÷ (84,000 units + (18,700 units ×  50% completion)

= ($1,238,000) ÷ (93,350 units)

= $13.26 per unit

Hence, the equivalent unit cost is $13.26

Your family is expanding in number, and so you decide to sell your current home and upgrade to a larger home. You estimate that you can sell your current home for $100,000 and can buy a larger home for $475,000. You plan to use the entire $100,000 sale proceeds as a down payment on the new home and will finance the remainder for 15 years at 4% nominal annual interest compounded monthly. What is your estimated monthly mortgage payment

Answers

Answer:

The Estimated Monthly Mortgage Payment

=    $2,810.81

Explanation:

Data and Calculations:

House price = $475,000

Down payment = $100,000

Percentage of down payment = 21.05% ($100,000/$475,000 * 100)

Finance period = 15 years = 180 months (15 * 12)

Nominal annual interest compounded monthly = 4%

The estimated monthly mortgage payment using an online finance calculator:

Monthly Pay:   $2,810.81

House Price $475,000.00

Loan Amount $380,000.00

Down Payment $95,000.00

Total of 180 Mortgage Payments $505,946.54

Total Interest $125,946.54

Mortgage Payoff Date Jan. 2036

On January 1, 2020, Marigold Corp. purchased a machine costing $355000. The machine is in the MACRS 5-year recovery class for tax purposes and has an estimated $74000 salvage value at the end of its economic life. It's based on half year convention. Assuming the company uses the general MACRS approach, the amount of MACRS deduction for tax purposes for the year 2020 is

Answers

Answer:

$71,000

Explanation:

Note: The MARCS Table is attached below

Depreciation for 2020 = Cost*Rate%

Depreciation for 2020 = $355000*20%

Depreciation for 2020 = $71,000.

Note: MACRS depreciation disregards the salvage value and depreciates the asset to zero over the life of the asset.

Universal Manufacturing uses a weighted-average process-costing system. All materials are introduced at the start of manufacturing, and conversion costs are incurred evenly throughout the process. The company's beginning and ending work-in-process inventories totaled 10,000 units and 15,000 units, respectively, with the latter units being 2/3 complete at the end of the period. Universal started 30,000 units into production and completed 25,000 units. Manufacturing costs follow. Beginning work in process: Materials, $60,000; conversion cost, $150,000 Current costs: Materials, $180,000; conversion cost, $480,000 Universal's equivalent-unit cost for conversion cost is:

Answers

Answer:

Universal Manufacturing

Equivalent unit cost for conversion cost is $18.

Explanation:

a) Data and Calculations:

Beginning work in process = 10,000 units

Ending work in process = 15,000 units

Units started = 30,000 units

Units completed = 25,000 units

Cost of:              Materials       Conversion

Beginning WIP   $60,000        $150,000

Current costs     180,000          480,000

Equivalent units of production:  Materials Degree       Conversion  Degree

Units started and completed      25,000     100%          25,000        100%

Ending WIP                                   15,000      100%          10,000         2/3

Total equivalent unit                   40,000                        35,000

Total cost of production:

Cost of:              Materials       Conversion

Beginning WIP   $60,000        $150,000

Current costs     180,000          480,000

Total cost        $240,000       $630,000

Cost per equivalent unit:

                                      Materials       Conversion   Total cost

Total cost                      $240,000       $630,000   $870,000

Total equivalent unit         40,000           35,000

Cost per equivalent unit   $6                  $18

b) Using the weighted average method, the costs in beginning inventory and current period costs are added and divided by the equivalent units of materials and conversion costs in order to establish an equivalent unit cost.  The equivalent cost per unit in process costing describes the average unit cost for each product.

The trial balance before adjustment of Taylor Swift Inc. shows the following balances.
Dr. Cr.
Accounts Receivable $90,000
Allowance for Doubtful Accounts 1,750
Sales Revenue (all on credit) $680,000
Instructions Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,700 credit balance. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.
No. Account Titles and Explanation Debit Credit

Answers

Answer:

A. Dr Bad Debt Expense$5,350

Cr Allowance for Doubtful account$5,350

B. Dr Bad Debt Expense $2,800

Cr Allowance for Doubtful account$2,800

Explanation:

Preparation of the journal entry for the estimated bad debts

A. Based on the information given the Journal entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts will be:

Dr Bad Debt Expense$5,350

Cr Allowance for Doubtful account$5,350

[(4%*90,000)-1,750]

B. Based on the information given the Journal entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts will be:

Dr Bad Debt Expense $2,800

Cr Allowance for Doubtful account$2,800

[(5%*90,000)-1,700]


Each tile provides an investor’s tax bracket along with the tax-free yield of a bond the investor purchased. Use the formula to determine the taxable equivalent yields of the investments, and then order the investments from least to greatest return.

taxable equivalent yield = 

tax bracket: 18%
tax-free yield: 3%

tax bracket: 24%
tax-free yield: 6%

tax bracket: 32%
tax-free yield: 3%

tax bracket: 22%
tax-free yield: 5%

tax bracket: 32%
tax-free yield: 4%


Answers

Answer:

tax bracket: 18%

tax-free yield: 3%

<

tax bracket: 32%

tax-free yield: 3%

<

tax bracket: 32%

tax-free yield: 4%

<

tax bracket: 22%

tax-free yield: 5%

<

tax bracket: 24%

tax-free yield: 6%

Explanation:

correct on plato/edmentum

Tax bracket And tax-free yield (18%, 3%) < (32%, 3%) < (32% , 4%) < (22% , 5%) < (24% , 6%) .

Taxable equivalent yield based problem:

Taxable equivalent yield = Tax-free yield / (100 - Tax bracket)

Taxable equivalent yield =  3 / (100 - 18) = 0.03659

Taxable equivalent yield = 6 / (100 - 24) = 0.07895

Taxable equivalent yield = 3 / (100 - 32) = 0.04412

Taxable equivalent yield = 5 / (100 - 22) = 0.06410

Taxable equivalent yield = 4 / (100 - 32) = 0.05882

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Ivanhoe Company issued $492,000 of 10%, 20-year bonds on January 1, 2017, at 104. Interest is payable semiannually on July 1 and January 1, Ivanhoe Company uses the straight-line method of amortization for bond premium or discount.
Prepare the journal entries to record the following.
(a) The issuance of the bonds.
(b) The payment of interest and the related amortization on July 1, 2017.
(c) The accrual of interest and the related amortization on December 31, 2017.

Answers

Answer:

Explanation:

For  answer , see the attached file.

Hunt Advertising is collaborating on an initiative with the Odessa Arts Council, a nonprofit organization, by providing public-relations training to working professionals throughout West Texas. Twenty percent of the fee that the participants would pay is given to the nonprofit organization. The nonprofit organization in turn reaches a wider range of audience across West Texas for its training program. This scenario illustrates _______.

Answers

Incomplete question. The options:

a.  green marketing

b.  effect-related marketing

c.  cause-related marketing

d. relationship marketing

Answer:

c.  cause-related marketing

Explanation:

Note, a marketing effort that is centered primarily on making an impact or a said cause; usually, it involves a mutually benefiting agreement, in which a corporation would collaborate with a non-profit such that

the corporation benefits (maybe in terms of sales), andthe non-profit benefits in terms of fulfilling a cause.

The idea is that consumers would be drawn if they see that when they pay for a particular service or product, they will be contributing to a good cause.

Selected transactions for the Joel Berges Company are presented in journal form below.

Date Account Titles and Explanation Ref. Debit Credit
5-May Accounts Receivable 4,100
      Service Revenue 4,100
        (Billed for services performed)
12 Cash 2,400
     Accounts Receivable 2,400
       (Received cash in payment of account)
15 Cash 3,000
     Service Revenue 3,000
        (Received cash for services performed)

Required:
Post the transactions to T-accounts and determine each account's ending balance.

Answers

Answer:

1.                             Cash

Date            Amount      Date      Amount

12 May         $2,400

15 May         $3,000

Ending Bal. $5,400

2.                Account Receivables

Date            Amount      Date      Amount

5 May          $4,100        12 May    $2,400

                                      Bal C/D   $1,700

                    $4,100                        $4,100

Ending Bal. $1,700

3.                  Service Revenue

Date            Amount      Date      Amount

                                        5 May     $4,100

                                        15 May    $3,000

                                        End Bal. $7,100

Assume that a financial asset gives its owner the following cash flows which are invested using the compound interest method: year zero, 15,041 dollars outflow; year one, 44,780 dollars inflow; year two, 15,784 dollars inflow; year three, 52,390 dollars inflow; year four: 13,458 dollars inflow. Given that the current yield required for similar financial assets is 6% per year, compute the value of this asset at time 3 taking into account past and future cash flows. (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas)

Answers

Answer:

$114,218.

Explanation:

Year 0, cash outflow = $15,041

Year 1, cash inflow = $44,780

Year 2, cash inflow = $15,784

Year 3, cash inflow = $52,390

Year 4, cash inflow = $13,458

R = 6%

Value of the asset in year 3 = -15,041*(1+6%)^3 + 44,780*(1+6%)^2 + 15,784*(1+6%) + 52,390 + 13,458/(1+6%)

Value of the asset in year 3 = -15,041*1.191016 + 44,780*1.1236 + 15,784*1.06 + 52,390 + 13,458/1.06

Value of the asset in year 3 = -17,914.07 + 50,314.81 + 16,731.04 + 52,390 + 12,696.23

Value of the asset in year 3 = $114,218.01

Adidea Corp. regularly buys merchandise from vendors. It just purchased 1,000 units on credit from one of its vendors. How will the company record this transaction?

The company will record the purchase as a debit to the inventory account and a credit to the ________ account.

Answers

Answer:

Vendor's account/ accounts payable

Explanation:

Merchandise is an asset to the company. An increase in assets is debited to that particular merchandise or inventory account.

Since the merchandise was bought on credit, liabilities will increase. An increase in liabilities is credited to the specific vendor's account who supplied the goods on credit.

Michelle operates a food truck. Indicate the amount (if any) that she can deduct as an ordinary and necessary business deduction in each of the following situations and explain your solution.
A. Michelle was stopped for speeding. She paid a fine of $125 for speeding, including $80 for legal advice in connection with the ticket.
B. Michelle paid $795 to reserve a parking place for her food truck for the fall football season outside the local football arena. Michelle also paid $140 for tickets to a game for her children.
C. Michelle provided a candidate with free advertising painted on her truck during the candidate’s campaign for city council. Michelle paid $680 to have the ad prepared and an additional $380 to have the ad removed from the truck after the candidate lost the election.

Answers

Answer:

A. $80

B. $795

C. $0

Explanation:

Only expenses that can be directly attributed to the business are deductible.

Personal expenses will not be deductible.

A. Here the only deductible amount is the legal fees of $80. The speeding will not be charged to the business because it was as a result of personal negligence. The legal fees affect the business because the speeding related to a business asset.

B. Only the amount paid to reserve a spot will be deductible because it relates to expenses for the business to make profit. The money she spent on her children is a personal expense.

C. There is no deductible here. These activities were of a personal nature and in no way related to the operations of the business of operating the food truck.

The residents of cities A, B, C, D and E consume wi-fi routers, with consumption in each city is 150 routers (see the map below). The firm that produces routers must decide how to set-up production. It could set up five factories, dispersed across each city, with each factory producing 150 routers and supplying to its own local city market. In this case, the firm incurs no cost for shipping output. Alternatively, the firm could locate its factory at centrally located city C, and supply routers to the entire region. The single factory in city C must then produce 750 routers, 600 of which are shipped to the cities A, B, D and E for a shipping cost of $6 per router.
A E
C
B D
(a) Suppose the average cost of producing a router is AC (Q) = 1500/Q, where Q is the number of routers produced in a factory. Calculate AC with Q = 150 and Q = 750, respectively. Note and explain how this production process exhibit economies of scale.
(b) Based on the AC function from part (a), find the optimal arrangement of production for the firm (one central factory or five dispersed factories). The optimal arrangement minimizes total cost for the firm, where total cost is the sum of production cost and shipping cost. Clearly write down all your calculations.
(c) Now suppose the average cost of producing a router is AC = 14000/(Q+1250). Now, repeat the calculation of AC with Q = 150 and Q = 750.
(d) Based on the AC function from part (c), now repeat your calculations to find the cost-minimizing arrangement of production in the case. (e) Explain intuitively the difference is results between responses to part (b) and (d).
(f) Suppose now production costs are those given in part (a) but let shipping cost per router be given by t (in the preceding discussion, we had t = 6, now we assume we don’t know the cost of shipping). What value of t would make the two arrangements for production (centralized versus separate factories) equivalent in terms of cost? i.e. what value of t would make the firm indifferent between a centralized versus a dispersed set-up?

Answers

Answer:

a. The production process shows that the more the quantity produced, the less the average cost of production.  It proves that there are advantages arising from economies of scale.

AC with Q = 150 = $10 ($1,500/150) and

AC with Q = 750 = $2 ($1,500/750)

b. The optimal arrangement is (centralized production) to produce the 750 routers at city C and ship to the 4 other cities.

c. AC with Q = 150 = $10 (14000/(150+1250) and

AC with Q = 750 = $7 (14000/(750+1250)

d. The cost-minimizing arrangement of production in this case is decentralized production.

e. The average cost of producing 150 units at the various cities has remained unchanged while the average cost of producing the 750 units at city C has increased from $2 to $7.

f. Suppose now production costs are those given in part (a) but let shipping cost per router be given by t (in the preceding discussion, we had t = 6, now we assume we don’t know the cost of shipping).

The value of t that would make the two arrangements for production (centralized versus separate factories) equivalent in terms of cost is:

t = $10 per router

Therefore, centralized production cost will be equal to $7,500 ($1,500 + ($10 * 600), and decentralized production cost will remain at $7,500 (750 * $10).

Explanation:

a) Data and Calculations:

Cities with consumers of wi-fi routers = A, B, C, D and E

Demand for routers by each city = 150

Total number of routers required = 750 (150 * 5)

b) Suppose the average cost of producing a router is AC (Q) = 1500/Q, where Q is the number of routers produced in a factory:

Therefore AC with Q = 150 = $10 ($1,500/150) and

AC with Q = 750 = $2 ($1,500/750)

Cost of Production of routers in city C:

cost of producing 750 routers at $2 per router = $1,500

Shipping cost of 600 routers to 4 cities at $6 per router = $3,600

Total cost of producing at city C = $5,100 ($1,500 + $3,600)

Total cost of producing 750 routers at 5 cities = $7,500 ($1,500/150 * 750)

c) Suppose the average cost of producing a router is AC = 14000/(Q+1250):

Therefore, AC with Q = 150 = $10 (14000/(150+1250) and

AC with Q = 750 = $7 (14000/(750+1250)

Cost of Production of routers in city C:

cost of producing 750 routers at $7 per router = $5,250

Shipping cost of 600 routers to 4 cities at $6 per router = $3,600

Total cost of producing at city C = $8,850 ($5,250 + $3,600)

Total cost of producing 750 routers at 5 cities = $7,500 ($1,500/150 * 750)

d) $7,500 = $1,500 + tQ

where Q = 600 (150 * 4)

Therefore, $7,500 - $1,500 = t600

simplifying

t600 = $6,000

t = $6,000/600 = $10

Which of the following principles underlies the interaction of individual choices? a Marginal analysis is used for "how much" decisions. b People usually exploit opportunities to make themselves better off. c Resources are scarce. d There are gains from trade.

Answers

Answer:

d There are gains from trade.

Explanation:

A trade can be defined as the process that typically involves the buying and selling of goods and services between a buyer (consumer) and a seller (producer).

Thus, trade creates an enabling environment that suits a specific service provider or producer of a particular product.

Basically, the interaction of individual choices underlies the fact that there are gains from trade.

This ultimately implies that, as a result of the difference between human needs and wants, there is always an opportunity for various producers to manufacture goods and services to meet the needs or requirements of these customers.

Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $7.7 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. The land would net $10.5 million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost $21.7 million to build, and the site requires $920,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project

Answers

Answer:

$33,120,000

Explanation:

Calculation for What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project

Using this formula

Proper Cash Flow Amount = (Expected Cost of Selling + Cost of Building Manufacturing Plant + Cost of Grading)

Let plug in the formula

Proper Cash Flow Amount = ($10,500,000 + $21,700,000 + $920,000)

Proper Cash Flow Amount = $33,120,000

Therefore the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project will be $33,120,000

Equivalent-unit calculations are necessary to allocate manufacturing costs between: Multiple Choice cost of goods manufactured and beginning work in process. cost of goods manufactured and cost of goods sold. beginning work in process and units completed. units sold and ending work in process. units completed and ending work in process.

Answers

Answer:

units completed and ending work in process.

Explanation:

Process costing can be defined as a cost accounting method used for assigning manufacturing or production costs to the units of goods produced by a business firm over a specific period of time. It is mostly used by firms that produce a large quantity of homogeneous or similar products on a continuous basis. Process costing typically uses more than one Work in Process Inventory account because costing at each stage of production or manufacturing process.

Basically, when manufacturing overhead costs of a business firm or company are applied to the cost of production in a process costing system, they are debited to the Work-in-Process inventory account.

In the manufacturing process, partially or partly completed goods that are still in the process of being converted into a finish product are defined as work-in-process inventories.

Generally, the work-in-process inventories include the following raw materials cost, direct labor cost and factory overhead cost.

The equivalent-unit calculations is done by multiplying the number of partially completed physical goods by the percentage of completion.

Hence, equivalent-unit calculations are necessary to allocate manufacturing costs between units completed and ending work in process.

On March 15, 2017, Frankel Construction contracted to build a shopping center at a contract price of $240 million. The schedule of expected (which equals actual) cash collections and contract costs follows: Year Cash Collections Cost Incurred 2017 $60 million $30 million 2018 100 million 80 million 2019 80 million 60 million Total $240 million $170 million Calculate the amount of net income for each of the three years 2017 through 2019 using the cost-to-cost method. ($ millions)

Answers

Answer: you need to sell 40 million in cars then add 30 million to savings go to a bank an take out a loan up to 500 grand and make sure to pay it back on time for better credit and start taking small increments out of your savings and invest in a company and get a good side job with good benefits for retirement when you age up enough retire and take all the money out of all your accounts and buy a island and build a house with a bunker full of food this does not explain anything to you i am just wasting your time.

Swifty Corporation issued 100000 shares of $10 par common stock for $1250000. A year later Swifty acquired 15900 shares of its own common stock at $15 per share. Three months later Swifty sold 8500 of these shares at $19 per share. If the cost method is used to record treasury stock transactions, to record the sale of the 8500 treasury shares, Swifty should credit

Answers

Answer:

the journal entries should be:

Dr Cash 1,250,000

    Cr Common stock 1,000,000

    Cr Additional paid in capital 250,000

Dr Treasury stock 238,500

    Cr Cash 238,500

Dr Cash 161,500

    Cr Common stock 85,000

    Cr Additional paid in capital 76,500

In the current year, Big Burgers, Inc., expanded its fast-food operations by opening several new stores in Texas. The company incurred the following costs in the current year: market appraisal ($50,000), consulting fees ($72,000), advertising ($47,000), and traveling to train employees ($31,000). The company is willing to incur these costs because it foresees strong customer demand in Texas for the next several years. What amount should Big Burgers report as an expense in its income statement associated with these costs?

Answers

Answer:

$200,000

Explanation:

The computation of the amount that should be reported as an expense is given below;

= Market appraisal + consulting fees + advertising + travelling to train employees

= $50,000 + $72,000 + $47,000 + $31,000

= $200,000

The GAP is a global clothing retailer for men, women, children, and babies. The following information is taken from The Sap's fiscal 2015 annual report. Selected Balance Sheet Data ($ millions)20152014 Inventories$1,918$1,844 Accounts Payable1,1571,128 a. The Gap purchased inventories totaling $10,438 million during fiscal 2015. Use the financial statement effects template to record cost of goods sold for The Sap's fiscal year ended 2015. (Assume accounts payable is used only for recording purchases of inventories and all inventories are purchased on credit.) b. What amount did the company pay to suppliers during the year

Answers

Answer:

The GAP

a. Cost of goods sold = $10,364

b. Cash paid to suppliers = $10,409

Explanation:

a) Data and Calculations:

Selected Balance Sheet Data

        ($ millions)     2015   2014

Inventories           $1,918   $1,844

Accounts Payable  1,157      1,128

Purchases during 2015 = $10,438 million

b) Cost of goods sold:

Beginning inventory   $1,844

Purchases                   10,438

Goods available       $12,282

Ending inventory         (1,918)

Cost of goods sold $10,364

c) Accounts Payable:

Beginning balance           $1,128

Purchases                        10,438

Less ending balance          1,157

Cash paid to suppliers $10,409

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