Answer:
The answer is "Option D".
Explanation:
In Day-to-day life it allows the person to survive, work towards their familiars & engage in the greater community. According to Occupational therapy, it is used to identify occupations as personality, productivity, and recreation. It has the four-character term, which is used to identifying the specific profession of its worker, that's why we can say that the choice d is correct.
Answer:
D, Types of jobs
Explanation:
have a great day and stay happy
Uncle Fred recently died and left $280,000 to his 45-year-old favorite niece. She immediately spent $80,000 on a town home but decided to invest the balance for her retirement at age 65. What rate of return must she earn on her investment over the next 20 years to permit her to withdraw $75,000 at the end of each year through age 80 if her funds earn 10 percent annually during retirement
Answer:
6.06%
Explanation:
The computation of the rate of return is shown below:
Given that
NPER = 20 years
PV = ($280,000 - $80,000) = $200,000
PMT = $0
FV = $75,000 × PVIFA factor at 10% for 21 years
= $75,000 × 8.6487
= $648,652.50
The following formula should be applied
= RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in negative
After applying the above formula, the rate of return is 6.06%
Mackenzie wants to purchase a new sofa for $900. Her brother tells her that if she can come up with 75% of the purchase price, he will lend her the rest of the amount. If Mackenzie produces the required amount, what will be the amount of the loan she receives from her brother?
Answer:
$225
Explanation:
The cost of the new sofa is $900.
Mackenzie need to raise 75% of the cost price.
Her brother will lend her the balance, which is equivalent to 75% of the cost price.
Mackenzie needs to raise
= 75% of 900
=75/100 x 900
=$675
Her brother will lend her
= $900 - $675
=$225
On January 1, 2022, Cullumber Company had a balance of $359,500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2022, the company had the following additional transactions
Jan. 2 Purchased a patent (7-year life) $313,950.
July 1 Acquired a 8-year franchise; expiration date July 1, 2,030, $583,200.
Sept. 1 Research and development costs $176,500.
Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.)
Date Account Titles and Explanation Debit Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT LINK TO VIDEO
Make an entry as of December 31, 2022, recording any necessary amortization. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.)
Account Titles and Explanation Debit Credit
Indicate what the intangible asset account balances should be on December 31, 2022.
Patent $
Franchise $
Answer:
1. Jan 2
Dr Patent $313,950
Cr Cash $313,950
July 1
Dr Franchise $583,200
Cr Cash $583,200
Sept 1
Dr Research and development expense $176,500
Cr Cash $176,500
2. Dr Amortization expense $81,300
Cr Patent $44,850
Cr Franchise $36,450
Explanation:
1. Preparation of the necessary entries to record the transactions related to intangibles.
Jan 2
Dr Patent $313,950
Cr Cash $313,950
July 1
Dr Franchise $583,200
Cr Cash $583,200
Sept 1
Dr Research and development expense $176,500
Cr Cash $176,500
2. Preparation to the journal entry as of December 31, 2022, recording any necessary amortization.
December 31, 2022
Dr Amortization expense $81,300
($44,850+$36,450)
Cr Patent $44,850
($313,950/7 years)
Cr Franchise $36,450
($583,200/8 years*6/12)
Sally and Tom are about to get a mortgage for their first home. If they want to make the same monthly payments for the life
of the loan, they should get an ARM (Adjustable Rate Mortgage).
True or False
Answer:
False
Explanation:
An Adjustable Rate Mortgage is the opposite: it is a type of mortgage that has payments that vary throughout the period of loan. They vary according to some index, variable rate, or agreement between the loaner and the borrower.
Sally and Tom should seek a Fixed Rate Mortgage instead. That is a type of mortgage whose payments do not vary across the life of the loan. In other words, a Fixed Rate Mortgage is an annuity.
When should you use capitalization?
Answer:
you should use capitalization at the beginning of a sentence. you should also use capitalization for pronouns. names of things for example cities and states people names etc
Barnett Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below.
Activity Cost Cost Driver
Material handling $225,000 Number of parts
Material insertion 2,475,000 Number of parts
Automated machinery 840,000 Machine hours
Finishing 170,000 Direct labor hours
Packaging 170,000 Orders shipped
Total $3,880,000
The following information pertains to the three product lines for next year:
Economy Standard Deluxe
Units to be produced 10,000 5,000 2,000
Orders to be shipped 1,000 500 200
Number of parts per unit 10 15 25
Machine hours per unit 1 3 5
Labor hours per unit 2 2 2
Required:
a. What is Barnett's pool rate for the material-handling activity?
b. Under Barnett's activity-based costing system, what is the per-unit overhead cost of Economy?
Solution :
Particulars Economy Standard Delux Total
Units produced (a) 10000 5000 2000 17000
Orders shipped (b) 1000 500 200 1700
No. of orders per unit (c) 10 15 25
Total no. of parts (c)x(a) 100000 75000 50000 225000
Machine hrs per unit (d) 1 3 5
Total machines hrs (d)x(a) 10000 15000 10000 35000
Lab hrs per unit (e) 2 2 2
Total lab hrs (e)x(a) 20000 10000 4000 34000
Pool rate for material handling activity [tex]$=\frac{\text{total material handling cost}}{\text{total no. of parts produced}}$[/tex]
[tex]$=\frac{225000}{225000}$[/tex]
= $ 1
a). Material handling cost per part [tex]$=\frac{\text{total material handling cost}}{\text{total no. of parts produced}}$[/tex]
[tex]$=\frac{225000}{225000}$[/tex]
= $ 1
b). Material insertion cost per part [tex]$=\frac{\text{total material insertion cost}}{\text{total no. of parts produced}}$[/tex]
[tex]$=\frac{2475000}{225000}$[/tex]
= $ 11
c). Cost per machine hours [tex]$=\frac{\text{total machine cost}}{\text{total machine hours}}$[/tex]
[tex]$=\frac{840000}{35000}$[/tex]
= $ 24
d). Cost per labor hours [tex]$=\frac{\text{total finishing cost}}{\text{total labor hours}}$[/tex]
[tex]$=\frac{170000}{34000}$[/tex]
= $ 5
e). Cost per unit shipped [tex]$=\frac{\text{total packaging cost}}{\text{total no. of units shipped}}$[/tex]
[tex]$=\frac{17000}{1700}$[/tex]
= $ 10
Cost per unit overhead = (1 x 10) + (11 x 10) + (24 x 1) + (5 x 2) + (10 x 1)
= $ 164
The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare adjusting entries at the end of each quarter. Assume all quarterly adjusting entries were properly recorded.
1. On December 1, 2020, the company paid its annual fire insurance premium of $7,200 for the year beginning December 1 and debited prepaid insurance.
2. On August 31, 2020, the company borrowed $115,000 from a local bank. The note requires principal and interest at 8% to be paid on August 31, 2021.
3. Mazzanti owns a warehouse that it rents to another company. On January 1, 2021, Mazzanti collected $26,400 representing rent for the 2021 calendar year and credited deferred rent revenue.
4. Depreciation on the office building is $19,200 for the fiscal year.
5. Employee salaries for the month of June 2021 $19,500 will be paid on July 20, 2021.
Required:
Prepare the necessary year-end adjusting entries at the end of June 30, 2018, for the above situations.
Answer:
1. Dr Insurance expense 1,800
Cr Prepaid insurance 1,800
2. Dr Interest expense 2,300
Cr Interest payable 2,300
3. Dr Deferred rent revenue 6,600
Cr Rent revenue 6,600
4. Dr Depreciation expense 4,800
Cr Accumulated depreciation—building 4,800
5. Dr Salaries and wages expense 19,500
Cr Salaries and wages payable 19,500
Explanation:
Preparation of the necessary year-end adjusting entries at the end of June 30, 2018, for the above situations
1. Dr Insurance expense 1,800
Cr Prepaid insurance 1,800
($7,200 × 3/12)
2. Dr Interest expense 2,300
Cr Interest payable 2,300
($115,000× 8% × 3/12)
3. Dr Deferred rent revenue 6,600
Cr Rent revenue 6,600
($26,400 × 3/12)
4. Dr Depreciation expense 4,800
Cr Accumulated depreciation—building 4,800
($19,200 × 3/12)
5. Dr Salaries and wages expense 19,500
Cr Salaries and wages payable 19,500
in 2001 an outbreak of hoof-and-mouth disease in europe led to the burning of millions of cattle carcasses. discuss the demand and supply implication caused by the outbreak, for an in-depth analysis of the discussion topic you may use all of the resources available to you. what impact would you expect on the supply of cattle hides, hide prices, the supply of leather goods, and the price of leather goods
Answer:
High demand
Low supply
High prices
Explanation:
The demand and supply of products, goods and services is heavily dependent on several factors ranging from economic, health and social factors. Disease and viral outbreaks have devastating effects on the market forces of demand and supply which in most cases will impact the market negatively with characteristically high prices and scarcity of products. The mouth and hoof outbreak in Europe was one which impacted the economy including farmers, leather and hides workers and all whose businesses and sustainability depends on cattles and its products. Due to the contagious nature of the disease and the ease at which it could spread if curtailment isn't effected on time, millions of cattles were slaughtered on sighting the symptoms and it's products including skins are burnt leading to losses in billions on the path of cattle rearers, shortage of lather, hides and skins, restriction in international product trade in other to avoid its spread to other parts of the world. These resulted in low supply and high demand of cattles and its products including leather goods meaning High prices for little available.
Assume that you have graduated and have gotten a good job. You are conscientious and want to begin a savings account. You are paid monthly and have authorized your bank to automatically withdraw $300 from each paycheck. The bank made the first withdrawal on August 1, 2007 and you instruct them to make the last withdrawal on July 1, 2037. The withdrawals are invested at a nominal interest rate of 10% and compounded monthly. What will be the balance of the account on July 1, 2037
Answer:
The balance of the account on July 1, 2037 will be $677,846.38.
Explanation:
Since the withdrawals are made the beginning of each month, the relevant formula to use is the formula for calculating the Future Value (FV) of an Annuity Due is employed as follows:
FV = M * (((1 + r)^n - 1) / r) * (1 + r) ................................. (1)
Where,
FV = Future value or the balance of the account on July 1, 2037 =?
M = Monthly withdrawal = $300
r = Monthly interest rate = nominal interest rate / 12 = 10% / 12 = 0.10 / 12 = 0.00833333333333333
n = Number of months from August 1, 2007 to July 1, 2037 = 359
Substituting the values into equation (1), we have:
FV = $300 * (((1 + 0.00833333333333333)^359 - 1) / 0.00833333333333333) * (1 + 0.00833333333333333)
FV = $300 * 2,240.81447087212 * 1.00833333333333333
FV = $677,846.38
Therefore, the balance of the account on July 1, 2037 will be $677,846.38.
Strauch Co. has one class of common stock outstanding and no other securities that are potentially convertible into common stock. During 2024, 100,000 shares of common stock were outstanding. In 2025, two distributions of additional common shares occurred: On April 1, 20,000 shares of treasury stock were sold, and on July 1, a 2-for-1 stock split was issued. Net income was $410,000 in 2025 and $350,000 in 2024. What amounts should Strauch report as earnings per share in its 2025 and 2024 comparative income statements issued early in 2026?
Year 2025 Year 2024
A. $2.34 $3.50
B. $1.78 $3.50
C. $1.78 $1.75
D. $2.34 $1.75
Answer:
C. $1.78 $1.75
Explanation:
Calculation for What amounts should Strauch report as earnings per share in its 2025 and 2024 comparative income statements issued early in 2026
Calculation for What amounts should Strauch report as earnings per share in its 2025
First step is to calculate the Weighted average shares for year 2025
Weighted average shares 2025 = [100,000 + 20,000(9/12)]÷2
Weighted average shares 2025=(100,000+15,000)*2
Weighted average shares 2025=115,000*2
Weighted average shares 2025= 230,000
Now let calculate the Earnings per share for year 2025
2025 Earnings per share for year= $410,000/230,000
2025 Earnings per share for year= $1.78
Therefore the 2025 Earnings per share for year will be $1.78
Calculation for What amounts should Strauch report as earnings per share in its 2024
First step is to calculate the Weighted average shares for year 2024
Weighted average shares 2024= 100,000(2)
Weighted average shares 2024= 200,000
Now let calculate the Earnings per share for year 2024
2024 Earnings per share = $350,000/200,000 2024 Earnings per share= $1.75
Therefore the Earnings per share for year 2024 will be $1.75
Billed Mercy Co. $2,400 for services performed.
how to journalize this?
When a business transaction requires a journal entry, we must follow these rules:
The entry must have at least 2 accounts with 1 DEBIT amount and at least 1 CREDIT amount.
The DEBITS are listed first and then the CREDITS.
The DEBIT amounts will always equal the CREDIT amounts.
For another example, let’s look at the transaction analysis we did in the previous chapter for Metro Courier (click Transaction analysis):
1. The owner invested $30,000 cash in the corporation. We analyzed this transaction by increasing both cash (an asset) and common stock (an equity) for $30,000. We learned you increase an asset with a DEBIT and increase an equity with a CREDIT. The journal entry would look like this:
2. Purchased $5,500 of equipment with cash. We analyzed this transaction as increasing the asset Equipment and decreasing the asset Cash. To increase an asset, we debit and to decrease an asset, use credit. This journal entry would be:
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Answer:
All the journal entries illustrated so far have involved one debit and one credit; these journal entries are called simple journal entries. Many business transactions, however, affect more than two accounts. The journal entry for these transactions involves more than one debit and/or credit. Such journal entries are called compound journal entries.
Explanation:
1. The owner invested $30,000 cash in the corporation. We analyzed this transaction by increasing both cash (an asset) and common stock (an equity) for $30,000. We learned you increase an asset with a DEBIT and increase an equity with a CREDIT
2. Purchased $5,500 of equipment with cash. We analyzed this transaction as increasing the asset Equipment and decreasing the asset Cash. To increase an asset, we debit and to decrease an asset, use credit.
3. Purchased a new truck for $8,500 cash. We analyzed this transaction as increasing the asset Truck and decreasing the asset Cash. To increase an asset, we debit and to decrease an asset, use credit.
4. Purchased $500 in supplies on account. We analyzed this transaction as increasing the asset Supplies and the liability Accounts Payable. To increase an asset, we debit and to increase a liability, use credit.
5. Paid $300 for supplies previously purchased. Since we previously purchased the supplies and are not buying any new ones, we analyzed this to decrease the liability accounts payable and the asset cash. To decrease a liability, use debit and to decrease and asset, use debit.
6. Paid February and March Rent in advance for $1,800. When we pay for an expense in advance, it is an asset. We want to increase the asset Prepaid Rent and decrease Cash. To increase an asset, we debit and to decrease an asset, use credit.
7. Performed work for customers and received $50,000 cash. We analyzed this transaction to increase the asset cash and increase the revenue Service Revenue. To increase an asset, use debit and to increase a revenue, use credit.
8. Performed work for customers and billed them $10,000. We analyzed this transaction to increase the asset accounts receivable (since we have not gotten paid but will receive it later) and increase revenue. To increase an asset, use debit and to increase a revenue, use credit.
9. Received $5,000 from customers from work previously billed. We analyzed this transaction to increase cash since we are receiving cash and we want to decrease accounts receivable since we are receiving money from customers who we billed previously and not new work we are doing. To increase an asset, we debit and to decrease an asset, use credit.
10 Paid office salaries $900. We analyzed this transaction to increase salaries expense and decrease cash since we paid cash. To increase an expense, we debit and to decrease an asset, use credit.
11. Paid utility bill $1,200. We analyzed this transaction to increase utilities expense and decrease cash since we paid cash. To increase an expense, we debit and to decrease an asset, use credit.
What is a common product that would be affected by a market economy?
Alicia owns a small pottery factory. She can make 1000 pots per year and sell them for $100 each. It costs Alicia $20,000 for the raw materials to produce the 1000 pots. She has invested $100,000 in her factory and equipment: $50,000 from her savings and $50,000 borrowed at 10%. Alicia can work at a competing pottery factory for $40,000/year. What is the accounting profit at Alicia's factory?
Answer:
$-20,000
Explanation:
Accounting profit = total revenue - total explicit cost
Total revenue = price x quantity produced
$100 x 1000 = $100,000
Total explicit cost = fixed cost + variable cost
Fixed costs are costs that do not vary with output. e,g amount invested in the factory
Variable costs are costs that vary with production. e.g. cost of raw materials
$100,000 + $20,000 = $120,000
Accounting profit = $100,000 - $120,000 = $-20,000
In December of this year, Paul, who is single, redeemed qualified Series EE U.S. Savings Bonds. The proceeds were used to help pay for his daughter's college tuition. Paul received proceeds of $10,000 representing principal of $7,000 and interest of $3,000. The qualified higher educational expenses he paid this year totaled $6,000. Paul has other adjusted gross income of $85,350. What is the amount of interest income Paul can exclude from his income this year
Answer:
$1,800
Explanation:
The computation of the amount of interest income that should be excluded is as follows:
Given that
Proceeds received $10,000
Principle $7,000
Interest $3,000
Qualified Higher Educational expenses $6,000
Now the amount excluded is
= $3,000 ×($6,000 ÷ ($7,000 + $3,000))
= $1,800
Sheffield Corp. applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 250, the only job still in process at the end of August, has been charged with manufacturing overhead of $11700. What was the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $45000
Answer:
$20,300
Explanation:
Calculation for What was the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $45000
Direct materials charged to Job 250=$45,000 - ($11,700 / .90) - $11,700
Direct materials charged to Job 250=$45,000 - $13,000- $11,700
Direct materials charged to Job 250= $20,300
Therefore the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $45000 will be $20,300
Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. Set up a schedule of interest expense and discount amortization under the straight-line method
Answer:
Devon Harris Company
Schedule of Interest Expense and Discount Amortization under the straight-line method:
Time Cash Interest Interest Expense Amortization Carrying Amount
0 N/A N/A N/A $1,855,816
1 $200,000 $228,836.80 $28,836.80 $1,884,652.60
2 $200,000 $228,836.80 $28,836.80 $1,913,489.40
3 $200,000 $228,836.80 $28,836.80 $1,942,326.20
4 $200,000 $228,836.80 $28,836.80 $1,971,163.00
5 $200,000 $228,836.80 $28,837.00 $2,000,000
Explanation:
a) Data and Calculations:
10% Bonds' maturity value = $2,000,000
Bonds sales value = $1,855,816
Total discount = $144,184
Annual Interest = $200,000 ($2,000,000 * 10%)
Maturity period = 5 years (January 1, 2020 to January 1, 2025)
Annual amortization of discount = $28,836.80 ($144,184/5)
Total interest cost with amortized discount each year = $228,836.80
b) Under the straight line method, the premium or discount on the bond is amortized in equal amounts over the life of the bond, as demonstrated above.
Based on the information given, it should be noted that the Cash Interest, Discount amortized and Interest Expenses will be $20,000, $28836.80, and $228836.80 respectively.
Interest expenseFrom the information given, the following can be calculated:
Discount on issue = $2000000 - $1855816 = $144184
Discount to be amortized on each interest date = $144184 / 5 = $28836.80
Cash interest annual = $2000000 * 10% = $200000
Therefore, the Cash Interest, Discount amortized and Interest Expenses from 2020 to 2025 will be $20,000, $28836.80, and $228836.80 respectively.
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Which 4 sections of the Overview screen can be used to perform a high-level review?
A. Company Setup
B. Outstanding Taxes
C. Bank Activity
D. Common issues
E. Transaction Volume
F. Client Mileage
Answer:
Company Setup, Bank Activity, Transaction Volume and Client Mileage
Explanation:
The nature of a company setup is an important aspect to perform a high level review. The set up of the company i.e. Private Ltd. or Public Ltd. or the goal and the motive of the company its operation to earn revenue are important aspects of a high level review. Not only the company set up but also the Banking Activity, Transaction Volume and Client Mileage are also some important areas in which the review takes place. if the company has a large volume of transaction and as well as it is doing a good amount of business with the banks then it can be said that the company is healthy. Moreover the customer satisfaction is an important aspect of a high level review. The following other options are incorrect because they are less important for a high level review.
The balance in the equipment account is $3,150,000, and the balance in the accumulated depreciation—equipment account is $2,075,000. a. What is the book value of the equipment? $fill in the blank 1 b. Does the balance in the accumulated depreciation account mean that the equipment's loss of value is $2,075,000? , because depreciation is an allocation of the of the equipment to the periods benefiting from its use.
Answer:
A. $1,075,000
B. No
Explanation:
A. Calculation for the book value of the equipment
Using this formula
Book value of the equipment=Equipment account -Accumulated depreciation—equipment account
Let plug in the formula
Book value of the equipment= $3,150,000-$2,075,000
Book value of the equipment=$1,075,000
Therefore the book value of the equipment will be $1,075,000
(b) NO the balance in the accumulated depreciation account does NOT mean that the equipment's loss of value is the amount of $2,075,000.
Jack works for Red, Blue and Green CPAs. Each year Red, Blue and Green asks Jack to fill out a form indicating all of his financial interests and those of his family members and close friends. Red, Blue and Green uses these charts to ensure that their auditors comply with the independence standards as described by the AICPA Code of Professional Conduct.
Code of Professional Conduct contains examples of situations that may impair an auditor's independence. Relationships are divided into three categories for purposes of the interpretations: immediate family, close relatives, and other relatives and friends. It is important for an auditor to understand how existing relationships fit into these categories so that the auditor can determine if there is an effect on his or her independence. Understanding of relationships is of primary importance to understanding the auditor's Code of Professional Conduct regarding independence. Place the following relationships into the appropriate category.
1. Immediate Family
2. Close Relative
3. Other Relative or Friend
a. Dependent
b. Child
c. Father
d. Cousin
e. Spouse
f. Sister
g. Golf
h. Partner
i. Spouse
j. Equivalent
k. Brother
l. Niece
m. Dependent
n. Parent
o. Mother
p. Nephew
q. Independent
r. Child
s. College
t. Friend
u. Grand father
Roommate
Answer:
1.Immediate Family:
Dependent Child
Spouse
Spouse equivalent
Dependent Parent
2.Close Relatives:
Father
Mother
Sister
Brother
Grand Father
Independent Child
3. Other relatives and Friends:
Cousin
Golf Partner
College Friend
Roommate
Nephew
Niece
Explanation:
Code of Professional conduct is a list of standards which are required to be followed by the CPA professionals. It provides guidance to the professionals about the decision making in certain situations. There are two broad categories which is rules and standard. Rules are mandatory to be followed regardless of the situation and there can not be any deviation allowed from the listed rule. Standard provide guidance for decision making in business scenarios.
Lucas Diving Supplies Company, in its first year of business, had labor costs of $57,000, overhead costs of $88,000, materials purchases of $25,000, and ending Materials and Work-in-Process Inventories of $3,000 and $5,000, respectively. What is the amount of cost of goods manufactured in the first year of operations
Answer:
$162,000
Explanation:
The amount of cost of goods manufactured is computed as
= Labor cost + Direct materials purchased + overhead costs - ending balance of materials - ending balance of work in process
= $57,000 + $25,000 + $88,000 - $3,000 - $5,000
= $162,000
Hence, the cost of goods manufactured is $162,000
Elliot, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $10.50 per hour. When activity jumped to 24,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $9.75. On the basis of this information, the company's fixed maintenance costs were:
Answer:
$90,000
Explanation:
At the activity level of 20,000 machine hours:
total maintenance costs=20,000* $10.50=$210,000
At the activity level of 24,000 machine hours:
total maintenance costs=24,000*$9.75=$234,000
variable maintenance cost per hour=(total maintenance costs at higher activity level-total maintenance costs at lower activity level)/(higher activity level-lower activity level)
variable maintenance cost per hour=($234,000-$210,000)/(24000-20000)
variable maintenance cost per unit=$6
Using the higher activity level data:
total cost=fixed cost+(variable maintenance cost per unit*number of hours)
$234,000=fixed cost+($6*24000)
234,000=fixed cost+$144,000
fixed cost=$234,000-$144,000
fixed cost=$90,000
When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the _________________ of investing in physical capital.
Answer:
opportunity cost
Explanation:
When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the opportunity cost of investing in physical capital.
Stephenson Company's computer system recently crashed, erasing much of the company's financial data. The following accounting information was discovered soon afterwards on the CFO's back-up computer data.
Cost of Goods Sold $380,000
Work-in-Process Inventory, Beginning 30,000
Work-in-Process Inventory, Ending 40,000
Selling and Administrative Expense 50,000
Finished Goods Inventory, Ending 15,000
Finished Goods Inventory, Beginning ?
Direct Materials Purchased 171,000
Factory Overhead Applied 112,000
Operating Income 22,000
Direct Materials Inventory, Beginning 18,000
Direct Materials Inventory, Ending 6,000
Cost of Goods Manufactured 340,000
Direct Labor 55,000
The CFO of Stephenson Company has asked you to recalculate the following accounts and report to him by week's end.
What should be the amount of direct materials used?
a. $208,400
b. $405,500
c. $440,800
d. $201,500
Answer:
Direct material used= $183,000
Explanation:
Giving the following information:
Direct Materials Purchased 171,000
Direct Materials Inventory, Beginning 18,000
Direct Materials Inventory, Ending 6,000
To calculate the direct material used, we need to use the following formula:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 18,000 + 171,000 - 6,000
Direct material used= $183,000
Prove:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 30,000 + 183,000 + 55,000 + 112,000 - 40,000
cost of goods manufactured= $340,000
Check the correct category for each of the following items. Note: for purposes of this exercise, consider cash in and out for this couple regardless of whether the item is for personal or business use. Cash In/Income Cash Out/Expense Cost of business trip State tax liability Clothing purchases Once expenses have been identified, they can be categorized as either fixed expenses or variable expenses. For example, your mortgage would be considered a expense, because . Conversely, grocery bills would be considered , because the actual amount is
Answer:
1. The correct category for each of the following items:
Cash In/Income:
Personal income
Business Income
Cash Out/Expense:
Cost of business trip = variable
State tax liability = fixed
Clothing purchases = variable
2. For example, your mortgage would be considered a fixed expense, because the total amount does not vary. Conversely, grocery bills would be considered variable, because the actual amount is not fixed but varies.
Explanation:
Variable cost or expense has a fixed cost per unit, with the total amount varying, depending on the units or quantities consumed. Fixed cost does have a fixed total amount within the relevant range, but the cost per unit varies.
You discover that your supervisor/team leader stole a password and she has been secretly logging into the computer of another team leader to get information about their team’s funding sources. She is aware that you caught her and tells you that this information has helped your team stay competitive and get ahead. She prefers that you keep her secret. How would you handle this situation?
Answer:
I would probably tell him/her that I wouldn't really keep it a secret if she keeps doing the same things over and OVER again the first time I would keep it a secret though if she does it again I'll have to tell someone right away.
Explanation:
Presented below is information related to Sunland Company at December 31, 2017, the end of its first year of operations.
Sales revenue $327,980
Cost of goods sold 148,580
Selling and administrative expenses 52,100
Gain on sale of plant assets 30,840
Unrealized gain on available-for-sale investments 9,370
Interest expense 6,060
Loss on discontinued operations 11,970
Dividends declared and paid 5,190
Compute the following:
(a) Income from operations $
Entry field with incorrect answer now contains modified data
(b) Net income $
Entry field with correct answer
(c) Comprehensive income $
Entry field with incorrect answer
(d) Retained earnings balance at December 31, 2017 $
Entry field with incorrect answer
Answer:
Part a
Income from operations calculation
Sales revenue $327,980
Less Cost of goods sold ($148,580)
Gross Profit $179,400
Less Operating Expenses
Selling and administrative expenses ($52,100)
Income from operations $127,300
Part b
Net Income calculation
Income from operations $127,300
Non-Operating items
Gain on sale of plant assets $30,840
Unrealized gain on available-for-sale investments $9,370
Interest expense ($6,060) $34,150
Net Income $161,450
Part c
Comprehensive income calculation
Net Income (from continuing activities) $161,450
Less Loss on discontinued operations ($11,970)
Comprehensive income $149,480
Part d
Comprehensive income $149,480
Less Dividends declared and paid ($5,190)
Retained Earnings $144,290
Explanation:
Income from Operations = Sales less Operating Expenses
Net Income = Income from Operations add or less Non Operating items
Comprehensive Income = Income from Continuing Activities + Income from discontinued Activities
Retained Income = Comprehensive Income less Dividends declared and paid.
On January 1, 2021, Essence Communications issued $800,000 of its 10-year, 8% bonds for $700,302. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. Essence Communications records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the market interest rate for bonds of similar risk and maturity was 9%. The bonds are not traded on an active exchange. The decrease in the market interest rate was due to a 1% decrease in general (risk-free) interest rates.
Required:
a. Using the information provided, estimate the fair value of the bonds at December 31, 2021.
b. Prepare the journal entry to record interest on June 30, 2021 (the first interest payment).
c. Prepare the journal entry to record interest on December 31, 2021 (the second interest payment).
d. Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet.
Answer:
A)
before decrease in rates: 706,483
after rate decrease: 751,360
B)
interest expense 35,015.12
discount on BP 3,015.12
cash 32,000
--bonds first interest payment--
C)
interest expense 35,165.87
discount on BP 3,165.87
cash 32,000
--second interest payment--
D)
unrealized loss 44,877
discount on bonds payable 44,877
--to adjust bonds valuation--
Explanation:
First, we solve for the present value of the bond to get the proceeds from the issuance.
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 32,000
time 20
rate 0.05
[tex]32000 \times \frac{1-(1+0.05)^{-20} }{0.05} = PV\\[/tex]
PV $398,790.7310
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 800,000.00
time 20.00
rate 0.05
[tex]\frac{800000}{(1 + 0.05)^{20} } = PV[/tex]
PV 301,511.59
PV c $398,790.7310
PV m $301,511.5863
Total $700,302.3173
Now, we do the table for the first year:
# / Principal/ paid / interest / Amort/End. P
1 700,302 32000 35015.12 3015.12 703,317
2 703,317 32000 35165.87 3165.87 706,483
Now, we have to redo the calculations for the bonds market value considering a decrease in the market rate to 9%
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 32,000
time 18
rate 0.045
[tex]32000 \times \frac{1-(1+0.045)^{-18} }{0.045} = PV\\[/tex]
PV $389,119.7377
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 800,000.00
time 18.00
rate 0.045
[tex]\frac{800000}{(1 + 0.045)^{18} } = PV[/tex]
PV 362,240.30
PV c $389,119.7377
PV m $362,240.2951
Total $751,360.0328
We adjust for: 751,360 - 706,483 = 44,877
This will be an unrealized loss as the liability increases but, will be realized on the redemption of the bonds or at the end of the bonds' life.
In coffee, cherry picking, the process of ________picking is the practice of harvesting only the ripe coffee cherries.
Answer:
Selective
Explanation:
Selective picking involves making numerous passes over coffee trees, selecting only the ripe cherries, then returning to the tree several times over a few weeks to pick remaining cherries as they ripen.
Presented below are a number of operational guidelines and practices that have developed over time. Select the assumption, principle, or constraint that most appropriately justifies these procedures and practices.
a. Fair value changes are not recognized in the accounting records.
b. Financial information is presented so that investors will not be misled.
c. Intangible assets are amortized over periods benefited.
d. Agricultural companies use fair value for purposes of valuing crops.
e. Each enterprise is kept as a unit distinct from its owner or owners.
f. All significant post-balance-sheet events are disclosed.
g. Revenue is recorded when the product is delivered.
Answer:
a. Fair value changes are not recognized in the accounting records.
Appropriate Selection: Historical Cost Principle
b. Financial information is presented so that investors will not be misled.
Appropriate Selection: Full Disclosure Principle
c. Intangible assets are amortized over periods benefited.
Appropriate Selection: Expense Recognition Principle
d. Agricultural companies use fair value for purposes of valuing crops.
Appropriate Selection: Measurement Principle
e. Each enterprise is kept as a unit distinct from its owner or owners.
Appropriate Selection: Economic entity assumption
f. All significant post-balance-sheet events are disclosed.
Appropriate Selection: Full Disclosure Principle
g. Revenue is recorded when the product is delivered.
Appropriate Selection: Revenue Recognition Principle
At the end of August, Kaye Company had completed Jobs 40 and 42. Job 40 is for 1,000 units, and Job 42 is for 500 units.
The following data relate to these two jobs:
On August 4, raw materials were requisitioned for production as follows: 200 units for Job 40 at $24 per unit and 900 units for Job 42 at $18 per unit.
During August, Kaye Company accumulated 700 hours of direct labor costs on Job 40 and 1,000 hours on Job 42. The total direct labor was incurred at a rate of $24 per direct labor hour for Job 40 and $10 per direct labor hour for Job 42.
The predetermined factory overhead rate is $6.00 per direct labor hour.
a. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August.
Job 40 $
Job 42 $
b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to the nearest cent.
Job 40 $
Job 42 $
Answer:
a. Job 40 Job 42
Direct material 200*24= $4,800 900*18= $16,200
Direct labor 700*24= $16,800 1000*10 = $10,000
Overhead applied 700*6= $4,200 1000*6 = $6,000
Total Job cost $25,800 $32,200
b. Job 40 cost per unit = $25,800/1000 units
Job 40 cost per unit = $25.8 per unit
Job 42 cost per unit = $32,200/500 units
Job 42 cost per unit = $64.4 per unit