Answer:
D. Output divided by input
Explanation:
Productivity refers to how factors of production such as rent , land, labor and capital are combined efficiently to produce certain output in an economy. It is usually measured as output ratio divided by input ratio.
In other words, productivity means output gotten as a result of inputs added or given. For example, if 10 oranges are used to produce 3 litres of orange juice, then the productivity is the 3 litres of orange juice. However, if same number of oranges is used to produce say 4 litres of orange juice, we can safely say that the person who produces 4 litres of orange juice is more productive.
We can see here that productivity is expressed as: D. output divided by input
What is Productivity?Productivity is a measure of the efficiency or output of a process, system, or individual in relation to the inputs or resources used. It quantifies the relationship between the amount of output produced and the resources, such as labor, capital, time, or materials, that were required to produce that output.
Productivity can be measured in various ways depending on the context. For example, labor productivity measures the output per worker or per hour worked, while total factor productivity considers the combined contributions of multiple inputs, such as labor and capital.
The formula for productivity is:
Productivity = Output / Input
Therefore, option D. "output divided by input," correctly represents how productivity is expressed.
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Which function can NOT be performed using the Conditional Formatting option?
Answer:
Use conditional formatting to dynamically underline in red and green any language or spelling errors on a worksheet.
Explanation:
Alignment is the right response. In Microsoft Word, the option for character alignment is not available.
You can use conditional formatting to add unique formatting to spreadsheet cells that satisfy particular requirements. You can apply a vast library of pre-set conditions in Excel pretty easily, or you can use Excel formulae to create your own conditional formatting rules.
What are the formatting features in Excel?In Excel, the format cells function is used to change the formatting of cell numbers without changing the actual number. We can alter the quantity, alignment, font style, border style, fill options, and protection with the aid of the format cells. Right-clicking the mouse allows us to access this option.
Data bars, color scales, icon sets, values that are rated top or bottom, values that are above or below the average, values that are unique or duplicates, and conditional formatting types that compare table columns to decide which cells to format are not available in Excel 97-2003.
Thus, Conditional formatting allows you to add special formatting to spreadsheet cells that meet certain criteria.
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Men and women tend to differ somewhat in their communication styles. Which of the following statements regarding those differences is correct?a. Women focus more on competition in their communication; men on cooperation.b. Women use metaphors from the home; men from work.c. In meetings,women tend to withhold their opinions more than men.d. Men focus on requests in their communication; women on orders.
Answer: In meetings, women tend to withhold their opinions more than men.
Explanation:
Communication is simply the process of exchanging information between the individuals by using signs, symbols of behavior, symbols, or signs. It should be noted that nonverbal gesture, such as the OK symbol that is made in some countries, could be found to be offensive somewhere else.
Men and women tend to differ somewhat in their communication styles. In meetings, women tend to withhold their opinions more than men.
1.) What are are the advantages and disadvantages of teams?
Discussion Question( Managing Teams)
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $129,100 Advertising expense $53,200 Depreciation on plant 64,600 Property taxes on plant 16,000 Property taxes on store 8,160 Delivery expense 24,300 Labor costs of assembly-line workers 111,300 Sales commissions 40,100 Factory supplies used 28,700 Salaries paid to sales clerks 57,100Work in process inventory was $14,000 at January 1 and $16,700 at December 31.Finished goods inventory was $61,800 at January 1 and $49,800 at December 31.Required:Compute cost of goods manufactured.
Answer:
$339,160
Explanation:
The computation of the cost of goods manufactured is shown below:
Cost of goods manufactured is
= Material used in product + Labor costs of assembly line workers + Factory overheads + Opening Work in process – Closing Work in process
where,
Factory overheads is
= Depreciation on plant+ Property taxes on plant+ Factory supplies used
= $64,600 + $8,160 + $28,700
= $101,460
Now put all other values together with this in the above formula
So,
= $129,100 + $111,300 + $101,460 + $14,000 - $16,700
= $339,160
Originally attributed to the Greek philosopher Aristotle,______ _____
refers to a concept of living one's life according to a
commitment to the achievement of a clear ideal-what sort of person would I like to become, and how do I go about becoming that person?
Answer:
Virtue Ethics
Explanation:
Virtue Ethics is a philosophical ideology postulated by Aristotle, to describe the belief that individuals can achieve morality based on living with constant principle of moral values such as honesty, bravery, integrity and many similar attributes.
Hence, VIRTUE ETHICS refers to a concept of living one's life according to a commitment to the achievement of a clear ideal-what sort of person would I like to become, and how do I go about becoming that person? This is according to Aristotle.
Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 7.5 percent, a YTM of 6 percent, and 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 6 percent, a YTM of 7.5 percent, and also 13 years to maturity. Assume the interest rates remain unchanged and a $1,000 par value.
Required:
a. What are the prices of these bonds today?
b. What do you expect the prices of these bonds to be in one year?
c. What do you expect the prices of these bonds to be in three years?
d. What do you expect the prices of these bonds to be in eight years?
Answer:
a. What are the prices of these bonds today?
price of bond X:
0.03 = {37.5 + [(1,000 - MV)/26]} / [(1,000 + MV)/2]
0.03 x [(1,000 + MV)/2] = 37.5 + [(1,000 - MV)/26]
0.03 x (500 + 0.5MV) = 37.5 + 38.46 - 0.03846MV
15 + 0.015MV = 75.96 - 0.03846MV
0.05346MV = 60.96
MV = 60.96 / 0.05346 = $1,140.29
price of bond Y:
0.0375 = {30 + [(1,000 - MV)/26]} / [(1,000 + MV)/2]
0.0375 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/26]
0.0375 x (500 + 0.5MV) = 30 + 38.46 - 0.03846MV
18.75 + 0.01875MV = 68.46 - 0.03846MV
0.05721MV = 49.71
MV = 49.71 / 0.05721 = $868.90
b. What do you expect the prices of these bonds to be in one year?
price of bond X:
0.03 = {37.5 + [(1,000 - MV)/24]} / [(1,000 + MV)/2]
0.03 x [(1,000 + MV)/2] = 37.5 + [(1,000 - MV)/24]
0.03 x (500 + 0.5MV) = 37.5 + 41.67 - 0.04167MV
15 + 0.015MV = 79.17 - 0.04167MV
0.05667MV = 64.17/0.05667 = $1,132.29
price of bond Y:
0.0375 = {30 + [(1,000 - MV)/24]} / [(1,000 + MV)/2]
0.0375 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/24]
0.0375 x (500 + 0.5MV) = 30 + 41.67 - 0.04167MV
18.75 + 0.01875MV = 71.67 - 0.04167MV
0.06042MV = 52.92
MV = 52.92 / 0.06042 = $875.87
c. What do you expect the prices of these bonds to be in three years?
price of bond X:
0.03 = {37.5 + [(1,000 - MV)/20]} / [(1,000 + MV)/2]
0.03 x [(1,000 + MV)/2] = 37.5 + [(1,000 - MV)/20]
0.03 x (500 + 0.5MV) = 37.5 + 50 - 0.05MV
15 + 0.015MV = 87.5 - 0.05MV
0.065MV = 72.5
MV = 72.5 / 0.065 = $1,115.38
price of bond Y:
0.0375 = {30 + [(1,000 - MV)/20]} / [(1,000 + MV)/2]
0.0375 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/20]
0.0375 x (500 + 0.5MV) = 30 + 50 - 0.05MV
18.75 + 0.01875MV = 80 - 0.05MV
0.06875MV = 61.25
MV = 61.251 / 0.06875 = $890.91
d. What do you expect the prices of these bonds to be in eight years?
price of bond X:
0.03 = {37.5 + [(1,000 - MV)/10]} / [(1,000 + MV)/2]
0.03 x [(1,000 + MV)/2] = 37.5 + [(1,000 - MV)/10]
0.03 x (500 + 0.5MV) = 37.5 + 100 - 0.1MV
15 + 0.015MV = 137.5 - 0.1MV
0.115MV = 122.5
MV = 122.5 / 0.115 = $1,065.22
price of bond Y:
0.0375 = {30 + [(1,000 - MV)/10]} / [(1,000 + MV)/2]
0.0375 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/10]
0.0375 x (500 + 0.5MV) = 30 + 100 - 0.1MV
18.75 + 0.01875MV = 130 - 0.1MV
0.11875V = 111.25
MV = 111.25 / 0.11875 = $936.84
What is efficiency? What is effectiveness? Imagine you manage a local car wash. Which criteria might you use to determine your efficiency as a manager? Which criteria might you use to determine your effectiveness?
Answer:
In business, efficiency means how well you use available resources in order to maximize results (or profits if you like). Effectiveness, on the other hand, refers to how well your company is carrying out is activities, e.g. high quality of your products, high customer satisfaction.
If I managed a car wash, I could measure efficiency by how many cars are washed per hour. Or how do our costs per car washed lower as the total amount of cars washed increases.
If I wanted to measure effectiveness, I would need to measure how well do we wash the cars, e.g. is our service excellent, good, regular, or bad. Our customers are satisfied with the way we wash their cars or not.
The difference between effectiveness and efficiency is that effectiveness corresponds to doing the task right, at the right time, and reaching established goals.
Efficiency, on the other hand, corresponds to optimizing tasks, making the process easier, faster and with reduced costs. So there is a way for a business to be effective without being efficient.
At a local car wash, an effective manager is one who knows how to manage his team to produce better results with existing resources, through quality of work, increased productivity and customer service.
It is also possible to measure the effectiveness of the location based on the achievement of goals, such as the number of cars washed in a day, cash flow, etc.
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You have a machine that is staffed 8 hours per day. The average throughput rate is 28 batches per day, and the setup time is 5 minutes per batch. The plant operates 16 hours per day but the machine is staffed for 8 hours.
i. Average processing time per unitii. MTT per unit
Complete Question:
You have a machine that is staffed 8 hours per day. The average throughput rate is 28 batches per day, and the setup time is 5 minutes per batch. The plant operates 16 hours per day. For a batch size of 20 units, calculate....
i. Average processing time per unit
ii. MTT per unit
Answer:
i. 0.25 Minutes per unit
ii. 1.46 Minutes per unit
Explanation:
As we know that:
Average Processing Time per Unit = Total Available time / Units Processed per Day
Now, as we know that
Units Processed per Day = Batches Processed per Day * Units per Batch
And
Total Available Time = Operating time per day - Batches setup time per Day
By putting these two values in the above equation, we have:
Average Processing Time per Unit = (Operating time per day - Batches setup time per day) / (Batches Processed per Day * Units per Batch)
Here
Operating time per Day 16 Hours per day
Batches setup time per day = 28 Batches * 5 minutes per batch / 60 minutes = 2.33 batches per hour
Batches Processed per Day are 28 batches per day
Units per Batch are 20 units per batch
By putting values, we have:
Average Processing Time per Unit = (16 Hours per Day - 2.33 Hrs) / (28 Batches * 20 Units)
= (13.67 Hours) / (560 Units)
= 0.024405 Hours, which means that average time per unit is 1.46 Minutes per Unit (0.024405 Hours * 60 minutes).
Requirement 2:
We can compute Manufacturing Throughput Time by using the following formula:
Manufacturing Throughput Time = Machine Setup time / Batch size
Here
Machine Setup time is 5 Minutes
Batch Size is 20 Minutes
By putting the values, we have:
Manufacturing Throughput Time = 5 minutes / 20 minutes
= 0.25 minutes per unit
If you deposit an amount of $1000 today (January 1st) and continue depositing into the account an amount growing by 5% per annum at the end of each subsequent year for five years, what balance will you have in the account at the end of the 5th year? (r = 10% p.a.)
$ 3,150
$4,150
$5,150
$6,150
Answer:
$5,525.63
Explanation:
The formula for calculating future value = A (B / r)
B = [(1 + r)^n] - 1
R = interest rate
n = number of years
((1.05)^5 - 1) / 0.05 = 5.525631
$1000 x 5.525631 = $5,525.63
What are the five primary factors of production?
What is the present value of the following cash flows at a discount rate of 9 percent?
year 1: 100,000 year 2: 150000 year 3: 200,000
Answer:
Year 1 PV = 91,743.12
Year 2 PV =126,251.99
Year 3 PV = 154,436.70
Explanation:
The present value of future sum is the amount that ought to be invested today at interest rate compounded annually to equal the sum at the end of a particular period.
The present value of a future sum is given as follows:
PV = FV × PV (1+r)^(-n)
PV - present value
FV - Future value
r- interest rate
n- number of years
Year 1 PV = 100,000× 1.09^(-1) =91,743.12
Year 2 PV = 150,000× 1.09^(-2) =126,251.99
Year 3 PV = 200,000× 1.09^(-3) = 154,436.70
What is the difference between an authorized dealer and an agent?
Answer:
the main difference is in their commissions
Explanation:
An authorized dealer is a term to describe anyone who is independent of a particular business (company), and yet sell the products or services of the business to their customers. In such case, the authorized dealer adds their own margin to cover their costs and profit.
However, an agent is an intermediary appointed by a business to negotiate with customers on behalf of the company (business). Hence, the company or business pays the agents commissions on the sales they make.
Inferring Values Using the Income Statement and Balance Sheet Equations Review the chapter explanations of the income statement and the balance sheet equations. Apply these equations in each of the following independent cases to compute the two missing amounts for each case. Assume that it is the end of the first full year of operations for the company. TIP: First identify the numerical relations among the columns using the balance sheet and income statement equations. Then compute the missing amounts. Independent Total Total Net Total Total Stockholders' Cases Revenues Expenses Income (loss) Assets Liabilities Equity A A $100,000 82,000 $150,000 70,000 $ B 80,000 12,000 112,000 60,000 C 80,000 86,000 104,000 26,000 D 50,000 13,000 22,000 77,000 E 81,000 (6,000) 73,000 28,000
Answer:
The solution and the calculation is shown on the first uploaded image
Explanation:
C. F. Lee Inc. has the following income statement. How much net operating profit after tax (NOPAT) does the firm have?Sales $2,850.00Costs 1,850.00Depreciation 192.00EBIT $808.00Interest expense 285.00EBT $523.00Taxes (35%) 183.05Net income $339.95
Answer:
$525.2
Explanation:
After tax net operating income = EBIT( 1- tax rate)
Given that EBIT = $808
Tax rate = 35%
Therefore,
After tax net operating income = $808 ( 1 - 35% )
= $808 ( 0.65 )
= $525.2
The net operating profit after tax (NOPAT) that the firm has is $525.20.
Given information
EBIT = $808
Tax rate = 35%
After tax net operating income = EBIT (1 - tax rate)
After tax net operating income = $808 (1 - 35%)
After tax net operating income = $808 (0.65)
After tax net operating income = $525.20
In conclusion, the net operating profit after tax (NOPAT) that the firm has is $525.20.
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Neon Light Company has $1,000,000 in assets and $600,000 of debt. It reports net income of $100,000.A) What is the return on the assets?
B) What is the return on the stockholders' equity?
C) If the firm has an asset turnover ratio of 3 times, what is the profit margin (return on sales)?
Answer:
a. 10%
b. 25%
c. 3.3%
Explanation:
return on the assets = net income / total assets = $100,000 / $1,000,000 = 0.1 = 10%
return on the stockholders' equity = net income / total equity
Equity = Assets - liabilities = $1,000,000 = $600,000 = $400,000
return on the stockholders' equity = $100,000 / $400,000 = 0.25 = 25%
profit margin = Net income / Revenue
asset turnover ratio = Revenue / total assets
3 = Revenue / $1,000,000
Revenue = $1,000,000 x 3 = $3,000,000
$100,000 / $3,000,000 = 0.033 = 3.3%
What 4ps known as ?
Answer:
4 P's are place, price, product, and promotion
Explanation:
The four P's of marketing are the key factors that are involved in the marketing of a good or service. They are the product, price, place, and promotion of a good or service.
How might a business be in violation of a truth-in-advertising law?
A. By adding surcharges in fine print
B. By claiming its product is healthy without having any scientific
evidence
C. By hiring actors to portray consumers in its commercials
D. By claiming that you'll love its product
Answer:
B
Explanation:
Apex
A business be in violation of a truth-in-advertising law is By claiming its product is healthy without having any scientific evidence.
What is truth-in-advertising?Wherever consumers see or hear an advertisement, whether on the Internet, radio, television, or elsewhere, federal law requires it to be accurate, not misleading, and backed up by scientific data where necessary.
Thus, option B is correct.
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Which of the following is defined as options "sales literature"?A. Member firm options websiteB. Standard option worksheetC. Options memorandums for internal useD. Letters of an "individual" nature sent to customers
Answer:
B. Standard option worksheet
Explanation:
sales literature are reffered to materials needed to pass information to the consumer so that they can be convinced to buy the product that a company is producing. This is very important in business to increase sales in order to have good returns.
It should be noted that this material could be Standard option worksheet, even price list and others.
Therefore, among the given options, only Option" B" defined as options "sales literature".
Williams Company computed its cost per equivalent unit for direct materials to be $1.90 and its cost per equivalent unit for conversion to be $3.85. A total of 245,000 units of product were completed and transferred out as finished goods during the month. The ending Work in Process inventory consists of 26,000 equivalent units of direct materials and 26,000 equivalent units of conversion costs. The amount that should be reported in ending Work in Process Inventory is:
Answer:The amount that should be reported in ending Work in Process Inventory is:
=$149,500
Explanation:
Work-in-process inventory is materials that are unfinished or partially completed in a production process.
Work in Process inventory = Direct materials cost+ conversion cost
= (equivalent units of direct materials x direct material cost per unit) + (equivalent units of direct materials x conversation cost per unit )
=26,000 x $1.90 + 26,000 x $3.85
$49,400 + $100.100
=$149,500
The amount that should be reported in ending Work in Process Inventory is:
=$149,500
Answer:1408750
Explanation:
Direct Materials 245,000 x 1.90 = 465500
Conversión 245,000x3.85= 943250
Total transferred to finished goods = 465500+943250=1408750
Ken pays $4803.60 for a 3-year annuity of $2,000 per year. What is the Internal Rate of Return?
Answer:
the internal rate of return is 12%
Explanation:
The computation of the internal rate of return is shown below:
Year Particulars Amount
0 Initial cost -$4,803.6 (C2)
1 Year 1 cash inflows $2,000 (C3)
2 Year 2 cash inflows $2,000 (C4)
3 Year 3 cash inflows $2,000 (C5)
IRR 12.00%
Use this below formula
=IRR(C2:C5)
Hence, the internal rate of return is 12%
The importance of formal planning in organizations has grown dramatically. Companies have found that they can achieve competitive advantage through the formal six-step strategic planning process. Answer questions about how Ron Shaich and Panera Bread use this strategic process. Planning is not an informal or haphazard response to a crisis; it is a purposeful effort that is directed and controlled by managers and often draws on the knowledge and experience of employees throughout the organization. Because planning is an important management function, managers at all three levels use it. To be fully effective, the organization's strategic, tactical, and operational goals and plans must be aligned. The strategic management process has six major components, beginning with the establishment of the mission, vision, and goals of the company and ending with strategic control.
The narrator describes how someone creates the mission while someone else identifies the steps that make the mission happen. The steps are known as what?
a. Top of Form
b. strategic vision
c. strategy stepping
d. strategic mapping
e. strategic controls
f. strategy implementation
Explanation:
Strategic planning is important to an organization because it provides a sense of direction and outlines measurable goals. Strategic planning is a tool that is useful for guiding day-to-day decisions and also for evaluating progress and changing approaches when moving forward.
Which ONE of the following is NOT one of the three general categories of product costs? a. Manufacturing overhead b. CEO and other executive salaries c. Direct labor d. Direct materials
Answer:
b. CEO and other executive salaries
Explanation:
Product cost is defined as the costs that a company shares to the product it manufactures. For example cost of producing a car.
Product costs are made up of 3 cost elements: direct material cost, direct labour cost, and manufacturing overhead.
Direct material and direct labour contributes directly to production cost. While manufacturing overhead contributes indirectly to the product cost.
Examples of manufacturing overhead are rent and machine maintenance.
CEO and other executive salaries is not considered a product cost.
A bonds price and its yield to maturity are inversely related because:________.
Answer: increase in the yield to maturity will lower a bond's coupon rate and hence its price.
Explanation:
The yield to maturity is the percentage of return that'll be paid on a bond as long as the investor holds the security till it matures.
It should be noted that the price of a bond moves inversely with the yield to maturity as a rise in the yield to maturity leads to a reduction in the bond's price and a reduction in the yield to maturity will bring about increases in price of a bond
what are the best jobs in Apple?
Answer:
Senior director , software engineers, senior legal counsel, and more
________ engineering has resulted in the simultaneous performance of product and process design activities.
Answer:
D) Concurrent
Explanation:
These are the options for question
A) Stepwise
B) Progressive
C) Incremental
D) Concurrent
E) Discrete
Concurrent engineering helps to develop product design and process, it allows processes to take place simultaneously during production which makes the process to be attained at short period of time with great yield in order to meet the customers expectations.
It should be noted that Concurrent engineering result in simultaneous performance of product and process design activities.
Which of the following is NOT a benefit of setting goals?A. You can focus on important things B. You can take control of your life C. You will be more confident D. All of these
Answer:
C. You will be more confident
Explanation:
When you consistently set goals in life, it helps you greatly in many ways. For example, you become more focused in regards to what you want in life because you have already set a goal and will work towards to achieve in life. It also helps you taking control of your future. You can manage your timetable for future and all the things you want to o in your life.
However, setting goals may not help you become more confident. Confidence is something that comes from within a person. You have to work on many things to gain confidence in life. Only setting goals will not be sufficient.
Suppose you have a choice between investing in a savings account that pays an 8.6% APR, compounded monthly (Bank Monthly) and one that pays an 8.5% APR, compounded daily (Bank Daily). Using only effective annual rates, which bank would you prefer?
Answer:
8.6% APR, compounded monthly
Explanation:
Effective annual rate = ( 1 + periodic interest rate)^m - 1
8.6% APR = (1.007167)^12 - 1 = 0.089472 = 8.95%
m = number of compounding = 12
periodic interest rate = 8.6% / 12 = 0.717%
8.5% APR = (1.000233)^365 - 1 = 0.088706 = 8.87%
m = number of compounding = 365
periodic interest rate = 8.5% / 365 = 0.02329%
I would prefer the 8.6% APR, compounded monthly because the effective annual rates are higher
Geese Company utilizes the dollar-value LIFO retail inventory method. Its cost-to-retail percentage is 60% based on beginning inventory and 64% based on current-period purchases. The company determined that beginning inventory at retail was $200,000 and that ending inventory at current-year retail prices was $250,000. The current-year price index is 1.10. During the current year, a new inventory layer at base-year retail prices was added in the amount of:__________ (round your answer to the nearest dollar amount)
Answer:
$27,273
Explanation:
Calculation for the new inventory layer at base-year retail price
Using this formula
New inventory layer at base-year retail prices=(Ending inventory at current-year retail prices/Current-year price index) - Beginning inventory at retail
Let plug in the formula
New inventory layer at base-year retail prices=($250,000/1.10) - $200,000
New inventory layer at base-year retail prices=
$227,273 - $200,000
New inventory layer at base-year retail prices=$27,273
Therefore During the current year, a new inventory layer at base-year retail prices was added in the amount of: $27,273
The main advantage of __________ is specialization, as it allows the firm to focus its resources toward understanding and serving a single segment.a. focused marketingb. multisegment marketingc. unidimensional marketingd. market concentratione. mass marketing
Answer:
market concentration
Explanation:
Market Concentration in finance can also be reffered to as " Seller Concentration" it can be explained as how the firms has shares in the total market, it is used to expressed how dominant a smaller firm is in the total market.
Market concentration has some advantages but it's main advantage is specialization, as it allows the firm to focus its resources toward understanding and serving a single segment.
Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.Incomplete manufacturing costs, expenses, and sellIncomplete manufacturing costs, expenses, and sell Collapse question part(a) Indicate the missing amount for each letter.Case12Direct materials used $9,600 $Direct labor 5,000 8,000 Manufacturing overhead 8,000 4,000 Total manufacturing costs 16,000 Beginning work in process inventory 1,000 Ending work in process inventory 3,000 Sales revenue 24,500 Sales discounts 2,500 1,400 Cost of goods manufactured 17,000 22,000 Beginning finished goods inventory 3,300 Goods available for sale 20,000 Cost of goods sold Ending finished goods inventory 3,400 2,500 Gross profit 7,000 Operating expenses 2,500 Net income 5,000b) Prepare a condensed cost of goods manaufactures schdule ffor Case1c1) Prepare an Income statement for Case 1c2) Prepare the current assets section of the balance sheet for Case1. Assume that in Case 1 the other items in the current assets section are as follows: Cash $4,000, Receivables (net) $15,000, Raw Materials $600 and Prepaid Expenses $400.
Answer:
a. Incomplete Manufacturing Costs:
Case 1 Case 2
Direct materials used $9,600 $ 4,000
Direct labor 5,000 8,000
Manufacturing overhead 8,000 4,000
Total manufacturing costs 22,600 16,000
Beginning work in process inventory 1,000 9,000
Ending work in process inventory 6,600 3,000
Sales revenue 24,500 31,200
Sales discounts 2,500 1,400
Cost of goods manufactured 17,000 22,000
Beginning finished goods inventory 3,000 3,300
Goods available for sale 20,000 25,300
Cost of goods sold 16,600 22,800
Ending finished goods in inventory 3,400 2,500
Gross profit 5,400 7,000
Operating expenses 2,500 2,000
Net Income 2,900 5,000
b. Condensed cost of goods manufactured schedule for Case 1:
Direct materials used $9,600
Direct labor 5,000
Manufacturing overhead 8,000
Total manufacturing costs 22,600
Beginning WIP inventory 1,000
Ending WIP inventory 6,600
Cost of goods manufactured $17,000
c1. Income Statement for Case 1:
Sales Revenue, net $22,000
Cost of goods sold 16,600
Gross profit $5,400
Operating expenses 2,500
Net income $2,900
c2. Current Assets Section of the Balance Sheet for Case 1:
Cash $4,000
Receivables (net) 15,000
Inventory:
Raw materials 600
WIP 6,600
Finished Goods 3,400 10,600
Prepaid Expenses 400
Total current assets $30,000
Explanation:
Using the above data to calculate the missing figures, we start from the known, applying our knowledge of the elements and formula of the income statement for a manufacturing entity. For example, the gross profit is the difference between the net sales revenue and the cost of goods sold, and the cost of goods sold is the difference between the goods available for sale and the ending inventory of finished goods.