Answer:
a. $2,634.36
$1,481.11
Explanation:
a. Ryan can claim the direct costs of the trip being gasoline and oil. He can therefore claim the $1,920 he paid for gasoline.
In addition, some of the indirect costs can be claimed as well such as depreciation. The claim is calculated as:
= Depreciation amount * Business miles / Total miles driven
= 3,900 * 3,700 / 20,200
= $714.36
Total deduction = 1,920 + 714.36
= $2,634.36
b. Ryan needs to be able to prove that the cost he is claiming are indeed business expenses. Total deductibles are:
= (3,900 * 1,400/ 20,200) + (1,400/2,220 * 1,920)
= $1,481.11
Lakeland Chemical manufactures a product called Zing. Direct materials are added at the beginning of the process, and conversion activity occurs uniformly throughout production. The beginning work-in-process inventory is 60% complete with respect to conversion; the ending work-in-process inventory is 20% complete.
The following data pertain to May:
Units Work in process, May 1 15,000
Units started during May 60,000
Units completed and transferred out 68,000
Work in process, May 31 7,000 Total
Direct Materials Conversion Costs
Costs: Work in process, May 1 $ 41,250 $ 16,500 $ 24,750 Costs incurred during May 234,630 72,000 162,630 Totals $ 275,880 $ 88,500 $ 187,380 Using the weighted-average method of process costing, the cost per unit of conversion activity is:________.
a. $2.50.
b. $2.53.
c. $2.70.
d. $2.76.
Answer:
$2.38
Explanation:
Note : I have uploaded the full question below as an image
Step 1
Calculate the Equivalent units of production with respect to conversion costs
Units Completed and Transferred (81,000 x 100%) = 81,000
Plus Units in Ending Work In Process (9,000 x 20%) = 1,800
Total Equivalent Units = 82,800
Step 2
Calculate the Total Conversion Costs during the period
Total Conversion Costs = $197,380 (given)
Step 3
Calculate Cost per Equivalent Unit
Cost per Equivalent Unit = Total Cost ÷ Equivalent Units
= $197,380 ÷ 82,800
= $2.38
The balanced scorecard: Multiple Choice Fails to reflect environmental and social effects of the firm's operations. Helps focus managers' attention to bottom line profits. Is not comprehensive, since it doesn't include all the critical success factors which contribute to competitive success. Is forward looking, stressing nonfinancial measures that can lead to benefits in the future. Is heavily weighted toward the financial critical success factors.
Answer:
Is forward looking, stressing nonfinancial measures that can lead to benefits in the future.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
In Financial accounting, Horizontal analysis can be defined as an analysis and evaluation of a financial statement which illustrates or gives information about changes in the amount of corresponding financial statement items, benchmarks or financial ratio over a specific period of time. It is one of the most important technique that is used to measure how a business is doing financially.
Hence, the balanced scorecard is forward looking, stressing nonfinancial measures that can lead to benefits in the future and as such it is a strategic management planning technique.
Lucky Strike Mine (LLC) purchased a silver deposit for $1,500,000. It estimated it would extract 500,000 ounces of silver from the deposit. Lucky Strike mined the silver and sold it, reporting gross receipts of $1.8 million, $2.5 million, and $2 million for Years 1 through 3, respectively. During Years 1 through 3, Lucky Strike reported net income (loss) from the silver deposit activity in the amount of ($100,000), $400,000, and $100,000, respectively. In Years 1 through 3, Lucky Strike actually extracted 300,000 ounces of silver as follows: Ounces extracted per year Year 1 Year 2 Year 3 50,000 150,000 100,000 What is Lucky Strike's depletion deduction for Year 2 if the applicable percentage depletion for silver is 15 percent
Answer:
$375,000
Explanation:
depletion rate musts equal the lesser between:
net income = $400,000
or
15% of gross revenues = $2,500,000 x 15% = $375,000
in this case, $375,000 is the smallest amount.
The percentage of depletion is used by extraction companies, e.g. oil & gas companies or mining companies.
Your coworker Ethan is trying to find information on the Internet to include in his business report. In four to five sentences, give Ethan advice on some search strategies he can use to find what he's seeking.
Answer: Pick his subject title, do a search concerning it, and make his report from there
Explanation:
These is dependent on what actually he's filling in the report. I would advise Ethan to pick out the subject title of what he's searching for and place on the net. When he does that, he would get various responses. He would have to do the selection himself regarding that which fits into his search, then use it for his report
Which of the following statements is most accurate regarding sufficient and appropriate documentation?
A. Audit documentation is the property of the client, and sufficient and appropriate copies should be retained by the auditor for at least 5 years.
B. Sufficient and appropriate documentation should include evidence that it has been reviewed.
C. Accounting estimates are not considered sufficient and appropriate documentation.
D. If additional evidence is required to document significant findings or issues, the original evidence is not considered sufficient and appropriate and therefore should be deleted from the working papers.
Answer:
A
Explanation:
You purchased a 5-year, 6% annual-coupon bond with $1,000 par value. The yield to maturity at the time of purchase was 4%. You sold the bond after one year, right after receiving the first coupon payment. The bond's yield to maturity was 3.4% when you sold it. What is your holding period return on the bond
Answer:
6.12%
Explanation:
the market value of the bond when you purchased it was:
PV of face value = $1,000 / 1.04⁵ = $821.93
PV of coupon payments = $60 x 4.4518 (PV annuity factor, 4%, 5 periods) = $267.11
initial investment = $1,089.04
after 1 year, you receive $60 +
PV of face value = $1,000 / 1.034⁴ = $874.82
PV of coupon payments = $60 x 3.6818 (PV annuity factor, 3.4%, 4 periods) = $220.91
market price = $1,095.73
total holding return = ($1,095.73 + $60 - $1,089.04) / $1,089.04 = 6.12%
19. What are conflicting responsibilities? Why do conflicts arise in professions?
Answer: being in the military
Explanation: reason is, because if your in the military you get to miss out on holidays , birthdays and even extra time with family and thats a big problem
Hudson has two job offers when he graduates from college. Hudson views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $45,000. The second offer is at a fixed salary of $25,000 plus a possible bonus of $40,000. Hudson believes that he has a 50-50 chance of earning the bonus. If Hudson takes the offer that maximizes his expected utility and he is risk-neutral, then A) he will take the first offer
Answer:
B. he will take the second offer
Explanation:
Based on the information given in a situation where he takes the offer that help maximizes his expected utility which is the satisfaction he will derived from the service he want to rendered to his employer in which the offer is also risk-neutral due to the likely gain he will derived from rendering service then HE WILL TAKE THE SECOND OFFER reason been that the second offer has fixed salary of the amount of $25,000 including a possible bonus of the amount of $40,000 compare to the first offer which had only a fixed annual salary of the amount of $45,000.
GenX Furnishings Company manufactures designer furniture. GenX Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows:
Fabric $24,900
Polyester filling 7,500
Lumber 55,800
Glue 2,400
The materials purchased during June are summarized from the receiving reports as follows:
Fabric $121,300
Polyester filling 168,600
Lumber 332,400
Glue 11,500
Materials were requisitioned to individual jobs as follows:
Fabric Polyester Filling Lumber Glue Total
Job 601 $43,700 $55,100 $147,300 $246,100
Job 602 33,600 59,900 128,900 222,400
Job 603 31,000 40,600 71,700 143,300
Factory overhead-indirect materials $5,700 5,700
Total $108,300 $155,600 $347,900 $5,700 $617,500
The glue is not a significant cost, so it is treated as indirect materials (factory overhead).
a. Journalize the entry to record the purchase of materials in June.
b. Journalize the entry to record the requisition of materials in June.
c. Determine the June 30 balances that would be shown in the materials ledger accounts.
Answer:
a. Date Account Titles and Explanation Debit Credit
June 1 Raw materials inventory - Fabric A/c $121,300
Raw materials inventory - Polyster A/c $168,600
Raw materials inventory - Lumber A/c $332,400
Raw materials inventory - Glue A/c $11,500
To account payable $633,800
(Being recorded for the purchase of materials in June)
b. Date Account Titles and Explanation Debit Credit
June 3 Work in process - Job 601 A/c $222,400
Raw materials inventory - Fabric A/c $43,700
Raw materials inventory - Polyster A/c $55,100
Raw materials inventory - Lumber A/c $147,300
Work in process - Job 602 A/c $143,300
Raw materials inventory - Fabric A/c $31,000
Raw materials inventory - Polyster A/c $40,600
Raw materials inventory - Lumber A/c $71,700
Work in process - Job 603 A/c $222,400
Raw materials inventory - Fabric A/c $33,600
Raw materials inventory - Polyster A/c $59,900
Raw materials inventory - Lumber A/c $128,900
Factory Overhead A/c $5,700
To Raw materials inventory - Glue A/c $5,700
c. Particulars Fabrics Polyster Lumber Glue
Beg. Inventory June 1 $24,900 $7,500 $55,800 $2,400
Add: Purchases $121,300 $168,600 $332,400 $11,500
$146,200 $175,100 $388,200 $13,900
Less: Issued to production $108,300 $155,600 $347,900 $5,700
End. Inventory June 30 $37,900 $20,500 $40,300 $8,200
The board of directors of a corporation:________.
a) Are elected by the corporate registrar.
b) Are responsible for day-to-day operations of the business.
c) Do not have the power to bind the corporation to contracts, due to lack of mutual agency.
d) May not also be executive officers of the corporation, due to the separate entity principle.
e) Are responsible for and have final authority for managing corporate activities.
Answer:
e) Are responsible for and have final authority for managing corporate activities.
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries.
Some examples of multinational firms are Ap-ple, Volkswagen, Go-ogle, Shoprite, Nestlé, Accenture, Shell BP, Chevron etc.
An owner of a corporation is known as a stockholder and he or she can decide to sell the corporation through stocks or shares as a publicly traded firm.
Basically, the board of directors who are representing the stockholders of a corporation are responsible for and have final authority for managing corporate activities because they are typically considered to be a governing body saddled with oversight functions and responsibilities.
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.)
Answer:
Year 1 = $84,000Year 2 = $78,400Explanation:
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
You are analyzing a large stable company. For the year ending 12/31/2015 the company reported earnings of $58,900 and book value at the end of 2015 was $371,700. You expect earnings to grow at 5% a year in perpetuity, and the dividend payout ratio of 70% to continue. The company borrows at 8%, and has a cost of equity of 12%. The company has 25,000 shares outstanding. What is your estimate of price per share using the dividend discount model at 12/31/2015
Answer:
$24.74
Explanation:
Total earnings for the year ending 12/31/2015= $58,900
dividend payout ratio=70%
current year total dividends= $58,900*70%
current year total dividends=$41,230.00
current dividend per share=current year total dividends/shares outstanding
current dividend per share=$41,230.00/25,000
current dividend per share=$1.6492
expected dividend=current dividend per share*(1+growth rate)
growth rate of dividends forever=5%
expected dividend=$1.6492*(1+5%)
expected dividend=$1.73166
share price=expected dividend/(cost of equity-growth rate)
cost of equity=12%
share price=$1.73166/(12%-5%)
share price=$24.74
A local partnership is liquidating and has only two assets (cash of $10,000 and land with a cost of $35,000). All partnership liabilities have been paid. All partners are personally insolvent. The partners have capital balances and share profits and losses as follows. Brown, capital (40%) $ 25,000 Fish, capital (30%) 15,000 Stone, capital (30%) 5,000 If the land is sold for $25,000, how much cash does each partner receive in a final settlement
Answer:
The amount of cash that each partner receives in a final settlement is as follows:
Brown = $14,000
Fish = $10,500
Stone = $10,500
Explanation:
a) Data and Calculations:
Partnership assets:
Cash = $10,000
Land (cost) = $35,000
Capital balances and sharing of profits and losses:
Brown, capital (40%) $ 25,000
Fish, capital (30%) 15,000
Stone, capital (30%) 5,000
Cash realized from land = $25,000
Total cash available for distribution = $35,000 ($10,000 + $25,000)
Distribution:
Brown (40%) = $14,000 (40% of $35,000)
Fish (30%) = $10,500 (30% of $35,000)
Stone (30%) = $10,500 (30% of $35,000)
Total $35,000
b) When a partnership is liquidated, the partners share the net assets of the partnership in their profit and loss sharing ratios. If the net assets are negative, they also share the balance in their profit and loss sharing ratios and make the required contributions.
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $7,400 cash and $34,400 of photography equipment in the company in exchange for common stock. 2 The company paid $3,000 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $970 cash. 20 The company received $4,231 cash in photography fees earned. 31 The company paid $765 cash for August utilities. Required: 1. Post the transactions to the T-accounts. 2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
Answer:
Pose-for-Pics
1. T-accounts:
Cash
Date Account Title Debit Credit
Aug. 1 Common stock $7,400
Aug. 2 Prepaid insurance $3,000
Aug. 5 Office supplies 970
Aug. 20 Photography Fees 4,231
Aug. 31 Utilities 765
Aug. 31 Balance $6,896
Common Stock
Date Account Title Debit Credit
Aug. 1 Cash $7,400
Aug. 1 Photography equipment 34,400
Aug. 31 Balance $41,800
Photography Equipment
Date Account Title Debit Credit
Aug. 1 Common stock $34,400
Prepaid Insurance
Date Account Title Debit Credit
Aug. 1 Cash $3,000
Office Supplies
Date Account Title Debit Credit
Aug. 1 Cash $970
Photography Fees
Date Account Title Debit Credit
Aug. 20 Cash $4,231
Utilities Expense
Date Account Title Debit Credit
Aug. 31 Cash $765
2. Trial Balance
As of August 31
Account Title Debit Credit
Cash $6,896
Common stock $41,800
Equipment 34,400
Prepaid insurance 3,000
Office supplies 970
Photography fees 4,231
Utilities expense 765
Totals $46,031 $46,031
Explanation:
Before transactions are posted to the T-accounts (General Ledger) they are recorded in the General Journal. The T-accounts summarize the transactions into various ledger accounts. Periodically, the accounts are balanced and a trial balance is extracted to check if the posting is error-free.
Return to questionItem 4 Required information Skip to question Retained earnings at the beginning of the period was $300. During the period, Kilgore Company earned revenue of $1,100 and incurred expenses of $400. Assuming dividends paid to stockholders were $200, the ending balance in retained earnings must have been:
Answer:
$800
Explanation:
The first task here is to determine the amount of net income recognized in the year which is the earned revenue minus incurred expenses as shown thus:
net income=earned revenue-incurred expenses
earned revenue= $1,100
incurred expenses=$400
net income=$1,100-$400=$700
retained earnings for the period=net income-dividends paid
dividends paid=$200
retained earnings for the period=$700-$200=$500
ending balance of retained earnings=beginning retained earnings+retained earnings for the period
beginning retained earnings=$300
ending balance of retained earnings=$300+$500=$800
List at least one of each transaction related to all of the following business events:
a. Purchase of goods or services for cash
b. Providing services for cash
c. Providing services on account
d. Purchase of goods or services on account
e. Payment of a previously recorded expense
f. Receipt of a previously recorded revenue earned
Answer:
a. Purchase of goods or services for cash
Transaction: Cash paid towards the dresses and shoes for security guards.
Accounts affected: Cash and Purchases
b. Providing services for cash
Transaction: Cash received against Bill raised towards Security services to M/s Major Computers for November month
Accounts affected: Cash and Service Revenues
c. Providing services on account
Transaction: Bill raised towards Security services to M/s Prime innovators for November month
Accounts affected: Accounts Receivables and Service Revenues
d. Purchase of goods or services on account
Transaction: Purchases the dresses and shoes for security guards on credit form M/s Immediate Dress.
Accounts affected: Accounts Payable and Purchases
e. Payment of a previously recorded expense
Transaction: Payment of bill raised by M/s Immediate Dress towards purchase of security guards dresses and shoes last month.
Accounts affected: Accounts Payable and Cash
f. Receipt of a previously recorded revenue earned
Transaction: Received payments towards Bill raised to M/s Prime innovators for Security services for November month
Accounts affected: Accounts Receivables and Cash
Suppose the demand function for good X is given by: where is the quantity demanded of good X, is the price of good X, and is the price of good Y, which is related to good X. Using the midpoint method, if the price of good X is constant at $10 and the price of good Y decreases from $10 to $8, the cross price elasticity of demand is about:_________
Answer:
Quantity demanded is -0.4
Explanation:
Quantity demanded is -0.4 if the prices decline from $8 to $10. The cross price elasticity is the change in quantity demanded for the goods when the price of other goods changes. The price change can be minor and the quantity demanded change can be high.
Catherine Jones has determined the following information about her own financial situation. Her checking account is worth $750 and her savings account is worth $1,900. She owns her own home that has a market value of $91,000. She has furniture and appliances worth $11,000 and a laptop worth $3,300. She has a car worth $11,500. She has recently purchased a mutual fund worth $5,500 and she has a retirement account worth $37,000. What is the total value of her assets
Answer:
$150,450
Explanation:
With regards to the above, her assets are: checking account, savings account, Home, furniture and appliances, laptop, mutual fund, car and retirement account.
= $750 + $1,900 + $91,000 + $11,000 + $3,300 + $5,500 + $37,000
= $150,450
Therefore, the total value of her asset is $150,450
Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, and Roy.
Year 1 Year 2
Amounts billed to clients for services rendered $ 170,000 $ 220,000
Cash collected from clients 160,000 190,000
Cash disbursements
Salaries paid to employees for services rendered during the year 90,000 100,000
Utilities 30,000 40,000
Purchase of insurance policy 60,000 0
In addition, you learn that the firm incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.
Required:
1. & 3. Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the firm would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.
2. Prepare an income statement for each year according to the accrual accounting model.
Revenues not attempted not attempted
Expenses:
Salaries 90,000selected answer correct 100,000selected answer correct
Utilities 30,000selected answer incorrect 40,000selected answer incorrect
Insurance 60,000selected answer incorrect 0selected answer incorrect
Net income (loss)
Answer:
Pete, Pete, and Roy
1. Net operating cash flow for years 1 and 2
Year 1 Year 2
Cash collected from clients $160,000 190,000
Cash disbursements
Salaries paid to employees 90,000 100,000
Utilities 30,000 40,000
Purchase of insurance policy 60,000 0
Total disbursements $180,000 $140,000
Net operating cash flow ($20,000) $50,000
3. Amount of receivables in year 1 and 2:
Year 1 Year 2
Beginning balance $10,000
Amounts billed to clients for
services rendered $ 170,000 $ 220,000
Cash collected from clients 160,000 190,000
Balance $10,000 $40,000
2. Pete, Pete, and Roy
Income Statements for years 1 and 2:
Year 1 Year 2
Service Revenue $ 170,000 $ 220,000
Expenses:
Salaries expense 90,000 100,000
Utilities expense 35,000 35,000
Insurance expense 20,000 20,000
Total expenses $145,000 $155,000
Net income $25,000 $65,000
Explanation:
a) Data and Calculations:
Year 1 Year 2
Amounts billed to clients for
services rendered $ 170,000 $ 220,000
Cash collected from clients 160,000 190,000
Cash disbursements
Salaries paid to employees 90,000 100,000
Utilities 30,000 40,000
Purchase of insurance policy 60,000 0
Utility costs incurred in year 1 = $35,000
Net operating cash flow for years 1 and 2
Year 1 Year 2
Cash collected from clients $160,000 190,000
Cash disbursements
Salaries paid to employees 90,000 100,000
Utilities 30,000 40,000
Purchase of insurance policy 60,000 0
Total disbursements $180,000 $140,000
Net operating cash flow ($20,000) $50,000
Insurance expense per year = $60,000/3 = $20,000
Utilities for year 1 = $35,000
Utilities for year 2 = $35,000
Jia is considering whether to go out to dinner at a restaurant with her friend. The meal is expected to cost $40, Jia typically leaves a 20% tip, and an Uber will cost $5 each way. Jia values the restaurant meal at $25. Jia enjoys her friend s company and is willing to pay $30 just to spend an evening with her. If Jia does not go out to the restaurant, she will eat at home, using groceries that cost her $8.
a. Calculate Jia's cost associated with going out to dinner with her friend.
b. Calculate Jia's benefits associated with going out to dinner with her friend.
Answer:
a. Jia's cost associated with going out to dinner with her friend
= $58
b. Jia's benefit associated with going out to dinner with her friend
= $47
Explanation:
a) Data and Calculations:
Expected cost of meal = $40
Tips (20%) 8
Transport to & from = 10
Total cost of going out = $58
Benefits with going out:
Value of restaurant meal = $25
Amount Jia is willing to pay = $30
Less of eating at home ($8)
Total benefits with going out $47
You've selected the formula for the turmeric shake. You now need to decide on the best packaging style. Your design team has come up with three options for the pre-mixed shakes. Based on what you learned from your focus group, what is the best packaging style
Answer:
Drink Pouch - 12 ounces drink pouch with screw top that are resealable, portable and light weight. The pouches are fairly inexpensive.
Explanation:
Customer prefer the packaging style which is easy to store. Turmeric shakes, juices and bottled energy drinks are preferred in small packaging which has one serving. This packaging is easy to store and consume by one person. The pouches are easy to be carried in bag as they are light weight and portable. The price is also low which is a plus for customers.
Exchanged all of the securities for shares of preferred stock, which were not mandatorily redeemable. Market values at the date of the exchange were for the securities and per share for the preferred stock. The shares were retired immediately. What journal entries should record in connection with this transaction?
Answer:
The full question is as follows "The following accounts were among those reported on Good Corp.'s balance sheet at December 31, year 1: Available-for-sale securities (market value $140,000) $80,000 Preferred stock, $20 par value, 20,000 shares issued and outstanding 400,000 Additional paid-in capital on preferred stock 30,000 Retained earnings 900,000 On January 20, year 2, Good exchanged all of the available-for-sale securities for 5,000 shares of Good's preferred stock. Market values at the date of the exchange were $150,000 for the available-for-sale securities and $30 per share for the preferred stock. The 5,000 shares of preferred stock were retired immediately after the exchange. Prepare the general journal entry, without explanation, to record this event."
Date General Journal Entry Debit Credit
Preferred stock A/c $100,000
(5000*$20)
Add. paid-in capital on preferred stock $7,500
(30000 * 1/ 4)
Retained earnings $42,500
Trading securities A/c $140,000
Gain on exchange of securities $10,000
Stevens Company's inventory on March 1 and the costs charged to Work in Process—Department B during March are as follows:
Beginning work in process, 12,000 units, 60% completed $62,400
From Department A, 55,000 units started this period
Direct materials added 115,500
Direct labor incurred 384,916
Factory overhead incurred 138,000
During March, all direct materials were transferred from Department A, the units in process at March 1 were completed, and of the 55,000 units entering the department, all were completed except 6,000 units that were 70% completed. Inventories are costed by the first-in, first-out method.
Required:
Prepare a cost of production report for March.
Solution :
Particulars Direct materials Conversions
Cost per equivalent unit
Total costs for month March in Department B 115500 522915
Total equivalent units 55000 58000
Cost per equivalent unit 2.10 9.0158
So, total conversion cost for March in the Department B
= 384915 + 138000
= $ 522915
Costs charged to production:
Direct Materials Conversion Total cost
Costs costs
Inventory in process, March 1 62400
Cost incurred in March 638415
Total costs accounted by the department 700815
Therefore, the cost incurred in March = 115500 + 384915 + 138000
= $ 638415
Over the past several years it has become increasingly important for firms to improve achievement towards their social and environmental responsibilities. What is the best way the management accountant can help the firm improve on sustainability?
Answer: Develop and implement a sustainability scorecard
Explanation:
Sustainability simply has to do with how our needs are being met without it leading to depletion of the resources or compromising the future generations from meeting their own needs as well.
The best way the management accountant can help the firm improve on sustainability will be to develop and implement a sustainability scorecard. This will be vital in showing how everyone getting along with sustainability.
Counselors of Mableton purchased equipment on January 1, 2017, for $37,000. Counselors of Mableton expected the equipment to last for five years and have a residual value of $4,500. Suppose counselors of Mableton sold the equipment for $25,200 on December 31, 2018, after using the equipment for two full years. Assume depreciation 2018 has been recorded. Journalize the sale of equipment, assuming straight-line depreciation was used
Answer:
Dr cash $25,200
Dr accumulated depreciation $13,000
Cr equipment $37,000
Cr profit on disposal $1,2000
Explanation:
The yearly depreciation expense on the equipment is computed thus:
depreciation=(cost-residual value)/useful life
cost=$37000
residual value=$4,500
useful life= 5 years
depreciation=($37000-$4500)/5
depreciation=$6,500
accumulated depreciation for 2 years=$6,500*2=$13,000
Cash proceeds from disposal=$25,200
Upon disposal, we would debit cash with $25,200 as well as accumulated depreciation with $13,000 while the equipment account is credited with the original cost of $37,000
Total debits=$25,200+$13,000=$38,200
total credit=$37,000
profit on disposal=$38,200-$37000=$1,200
Assume the following adjustment data.
a. Supplies on hand at October 31 total $520.
b. Expired insurance for the month is $120.
c. Depreciation for the month is $135.
d. As of October 31, services worth $950 related to the previously recorded unearned revenue had been performed.
e. Services performed but unbilled (and no receivable has been recorded) at October 31 are $250.
f. Interest expense accrued at October 31 is $75.
g. Accrued salaries at October 31 are $1,520.
Required:
Prepare the adjusting entries for the items above.
Answer:
a.
Debit : Balance Sheet $520
Credit : Supplies $520
b.
Debit : Insurance expense $120
Credit : Prepaid Insurance $120
c.
Debit : Depreciation expense $135
Credit : Accumulated depreciation expense $135
d.
Debit : Unearned Revenue $950
Credit : Revenue Earned $950
e.
Debit : Trade Receivable $250
Credit : Service Revenue $250
f.
Debit : Interest expense $75
Credit : Note Payable $75
g.
Debit : Salaries expense $1,520
Credit : Accounts Payables $1,520
Explanation:
So adjusting entries are done at the end of the reporting period, in this case it is the end of October.
For most of these entries we recognize expenses and a corresponding decrease in assets or increase in liabilities.
As for revenue previously unearned, we have to recognize the revenue portion now earned.
2. Efficiency and effectiveness (Connect, Perform) Read the scenario and then complete the sentence with the correct term. Management in Life Your parents are hosting the huge annual family reunion this year, and they have determined that quite a bit of work needs to be done before all the relatives show up. They ask if you will repair the leaking faucets and replace the rec room carpet. They ask your sister to rid the lawn of weeds and reseed the bare patches, and they ask your brother to rent tents, a huge barbeque grill, and other equipment. They want the family to feel comfortable and have fun. To achieve greater , your dad decides to mount speakers around the backyard so people can listen to music streaming from his Rhapsody account. This will be less expensive than hiring a live band. In your first day as a driver for Road-O-Rama Freight, you realize that something just isn’t right. Trucks go out half full, and drivers often get the wrong addresses so freight doesn’t arrive at its destination. When telling a friend about your new job, how would you describe this company’s operations? Both effective and efficient Effective but not efficient Efficient but not effective Neither effective nor efficient
Answer:
When telling a friend about your new job, how would you describe this company’s operations?
Neither effective nor efficient
Explanation:
The company's operations will be considered effective if they achieve objectives. But they do not produce the desired results because drivers often get the wrong addresses, making freights not to arrive at their destinations. Similarly, the company's operations cannot be described as efficient because trucks go out half full with wrong addresses. This is a waste of time, money, and efforts, and the performance competence of the company is questionable. Efficient operations accomplish results with the least amount of resources. Effective operations achieve desired results successfully.
Prepare a journal entry for the purchase of office equipment on February 19 for $31,700, paying $7,600 cash and the remainder on account. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Answer:
Dr Office equipment 31,700
Cr cash 7,600
Cr Accounts payable 24,100
Explanation:
Preparation of the journal entry for the purchase of office equipment on February 19
Based on the information given the if asset was purchased on February 19 for the amount of $31,700 in which the company paid the amount of $7,600 cash and the remainder on account which means that the journal entry will be:
February 19
Dr Office equipment 31,700
Cr cash 7,600
Cr Accounts payable 24,100
(31,700-7,600)
Perfect Fit Company sells men's shirts and jeans. The average selling price and variable cost for each product follow: Selling price per shirt $22 Selling price per jean $27 Variable cost per shirt $14 Variable cost per jean $19 Fixed costs $3,200 Calculate the breakeven point in units assuming the sales mix is 1:1.
Answer:
Jeans= 200 units
Shirt= 200 units
Explanation:
To calculate the break-even point in units, we need to use the following formula:
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)
Weighted average contribution margin= (22*0.5 + 27*0.5) - (14*0.5 + 19*0.5)
Weighted average contribution margin= 8
Break-even point (units)= 3,200/8
Break-even point (units)= 400 units
Jeans= 0.5*400= 200 units
Shirt= 0.5*400= 200 units
Which of the following is true about specification ?
a. A specification is defined as the value separating acceptable from unacceptable performance.
b. Specifications should not be set arbitrarily. If you set a specification to loosely, the customer will be dissatisfied or upset with the performance of what you provided, even though it meets the specification.
c. The specification is set to tightly; you will spend more resources than you should to perform within the overly narrow goals.
Answer:
b. Specifications should not be set arbitrarily. If you set a specification to loosely, the customer will be dissatisfied or upset with the performance of what you provided, even though it meets the specification.
Explanation:
Specification is defined as a set of requirements that needs to be met when producing a product. They give a value that seperate this product from others in performance.
Specification should be narrowly defined as this will help effectively meet the customer needs.
When specifications are too loosely defined the product might not meet customer needs.
For example if a developer requires a laptop with high processing power and the company decides to provide a more generic and lower processing power, the target customer will not be satisfied