Answer:
the cost of the unused capacity reported is $11,400
Explanation:
The computation of the cost of the unused capacity reported is as follows:
= (Estimated amount of overhead ÷ capacity machine hours) × (capacity machine hours - actual machine hours)
= ($22,800 ÷ 19,000 machine hours) × (19,000 - 9,500)
= $1.2 × (9,500)
= $11,400
hence, the cost of the unused capacity reported is $11,400
Identify what type of unemployment each of the individuals below is facing by dragging and dropping the appropriate term into the bins provided.
a. James is an architect who has been laid off owing to a slump in the demand for property. He feels he will have to wait until the economy picks up before he can get a new job. James is facing structural unemployment.
b. Eric is an experienced project manager who lost his job at a tech start-up because the company's product failed to become popular. He is confident he can get a new job and has already rejected a number of offers.
c. Eric is facing cyclical unemployment. Craig lost his job several months ago. He is having a hard time finding a job that pays him more than unemployment insurance does.
d. Sarah is a recent economics graduate who is entering a difficult labor market, owing to a continued recession. She is continuing to look for work but is finding it difficult.
e. Hamid has just graduated as a lawyer from an esteemed law school. He confident of getting a job and has already refused a few lower paid jobs.
Answer:
A)CYCLICAL UNEMPLOYMENT
B)FRICTIONAL UNEMPLOYMENT
C)cyclical unemployment
D)CYCLICAL UNEMPLOYMENT
E)FRICTIONAL UNEMPLOYMENT
Explanation:
Employment can be regarded as term that describes the situation of people that are employable and looking for a job but cannot secure one.
Cyclical unemployment is regarded as the components of employment which is as a result of cycles coming up from upturn and down turn of economy
Frictional unemployment can be regarded as search unemployment, it exist at period one is seeking for employment.
On September 25, 2018 Colson Corp. sold 200,000 widgetrons to Cavanaugh Corp at $5 per unit. Half of the units were delivered on November 15, 2018, and the remaining 100,000 units were delivered on January 20, 2019. At the time of sale Cavanaugh paid 40% of the contract price and agreed to pay the rest in equal installments on the two delivery dates. What amount of revenue should Colson recognize from this sale in 2018?
A. $0.
B. S1,000,000.
C. $500,000.
D. $700,0.
Correct options read:
A. $0
B. $500,000
C. $700,000
D. $1,000,000
Answer:
C. $700,000
Explanation:
Note only payments made on this sale that fall under the year 2018 is accounted for. Hence, we can make the following conclusions:
Total payment due: $5 per unit x 200,000 = $1,000,000.Cavanaugh paid 40% of the contract price on September 25, 2018 = $400,000 (40% or 0.4 x $1,000,000).Also since half of the units were delivered on November 15, 2018, and he agreed to pay the rest in equal installments, we expect him to pay half the $600,000 left:
units were delivered on November 15, 2018 = $300,000 paid.Total payments in the year:
September 25, 2018; $400,000 + $300,000; November 15, 2018 = $700,000.
Which of the following is disclosed separately in a statement of cash flows using the indirect method?
A. Cash received from customers
B. Cash paid to employees and other suppliers
C. Increase in retained earnings for the period
D. Net income
Answer:
C. Increase in retained earnings for the period
Explanation:
The Standard that deals with the Presentation and discloser of Cash flow statement (IAS7) requires that the items that do not involve the use of cash must be disclosed separately. That means item C , increases in retained earnings for the period is disclosed separately since it does not involve the use of cash.
A statement of cash flows is refer to the financial statement that shows how changes are made in the balance sheet accounts and how income affect cash and cash equivalents.
A statement of cash flows
Correct option is C.
In indirect method no general cash receipts ad cash payments in operating cash flow is shown, it relates to displaying adjustments in net income, and changes in working capital etc.
In indirect method the accountant adjust various factors like non cash transactions from the net income of the year.
Therefore, Correct option is C.
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Issued 30,000 shares of common stock in exchange for $300,000 in cash. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a notes payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. Paid $5,000 in rent on the warehouse building for the month of March. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. Paid $70,000 on account for the merchandise purchased in 3. Collected $55,000 from customers on account. Recorded depreciation expense of $1,000 for the month on the equipment. Post the above transactions to the below T-accounts.
Answer:
T-accounts:
Cash
Accounts Titles Debit Credit
Common Stock $300,000
Equipment $10,000
Rent Expense 5,000
Prepaid Insurance 6,000
Accounts Payable 70,000
Accounts Receivable 55,000
Equipment
Accounts Titles Debit Credit
Cash $10,000
Notes Payable 30,000
Notes Payable
Accounts Titles Debit Credit
Equipment $30,000
Inventory
Accounts Titles Debit Credit
Accounts Payable $90,000
Cost of Goods Sold $70,000
Accounts Payable
Accounts Titles Debit Credit
Inventory $90,000
Cash $70,000
Accounts Receivable
Accounts Titles Debit Credit
Sales Revenue $120,000
Sales Revenue
Accounts Titles Debit Credit
Accounts Receivable $120,000
Cost of Goods Sold
Accounts Titles Debit Credit
Inventory $70,000
Rent Expense
Accounts Titles Debit Credit
Cash $5,000
Prepaid Insurance
Accounts Titles Debit Credit
Cash $6,000
Common Stock
Accounts Titles Debit Credit
Cash $300,000
Depreciation Expense
Accounts Titles Debit Credit
Acc Depreciation $1,000
Accumulated Depreciation - Equipment
Accounts Titles Debit Credit
Depreciation Expense $1,000
Explanation:
T-account consists of the following. An account title to record the corresponding account where the double-entry transaction is completed. A debit side on the left to enter the dollar value of the transaction, if the concerned account receives the value. A credit side on the right, also, to enter the dollar value of the transaction, if the concerned account gives out the value.
Which of the following is not a method of numerical descriptive analytics? Multiple Choice factor analysis cluster analysis bullet graphs association learning
Answer:
bullet graphs
Explanation:
Descriptive analytics can be regarded as a process involving parsing of historical data so that any changes that has taken place in the business could be understood better. It make use of historic data as well as benchmarking in order to get view of performance where one can base his/her Businesses strategy.
The method of numerical descriptive analytics could includes;
✓ factor analysis
✓ cluster analysis
✓association learning
At December 31, 2017, Ayayai Corporation has the following account balances: Bonds payable, due January 1, 2021$6,500,000 Premium on bonds payable132,000 Interest payable290,000 Show how the above accounts should be presented on the December 31, 2017, balance sheet, including the proper classifications. (Enter account name only and do not provide descriptive information.)
Answer:
See below
Explanation:
Balance sheet as at December 31, 2017
Current liabilities
Bond interest payable
$290,000
Long term liabilities
Bonds payable
$6,500,000
Less: premium on bonds payable
($132,000)
Net bonds payable
$6,368,000
Say we change the ceteris paribus assumption to allow each employee to be more productive. For example, we add a zero-cost management technique that allows for the division of labor based on specialization. As a result, each employee's marginal product increases by one. Should the car wash hire more employees
Answer:
The car wash should hire more employees as long as the marginal cost (the extra money that goes to the paying the wage of the new employee) is lower or equal to the marginal benefit (the extra amount of income that the employee will generate for the company).
This is because as long as marginal cost is lower than marginal benefit, hiring an extra worker will produce economic benefits for the firm, and if marginal cost and marginal benefit are equal, the firm at least will break even.
On the other hand, when hiring an extra worker has a marginal cost that is higher than the marginal benefit the worker will produce, the firm will then face economic loss, and should therefore put off hiring any more employees.
On June 30, 2018, the Esquire Company sold some merchandise to a customer for $46,000 and agreed to accept as payment a noninterest-bearing note with an 12% discount rate requiring the payment of $46,000 on March 31, 2019. The 12% rate is appropriate in this situation. Esquire views the financing component of this contract as significant.
Required:
a. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2018 interest accrual, and the March 31, 2019 collection.
b. What is the effective interest rate on the note?
Answer:
a)
June 30, 2018
Dr Notes receivable 46,000
Cr Sales revenue 42,202
Cr Discount on notes receivable 3,798
PV of notes receivable = $46,000 / [1 + (9/12 x 12%)] = $42,202
December 31, 2018
Dr Discount on notes receivable 2,760
Cr Interest revenue 2,760
Interest revenue = $46,000 x 12% x 6/12 = $2,760
March 31, 2019
Dr Cash 46,000
Dr Discount on notes receivable 1,038
Cr Notes payable 46,000
Cr Interest revenue 1,038
b) effective interest rate = 0.96% x 12 = 11.52% annual
Jessica can produce 2 boats in a day or 100 umbrellas in a day. Paul can produce 3 boats in a day or 120 umbrellas in a day. This means that for every boat that Jessica produces, her opportunity cost is 50 umbrellas. For every boat Paul produces, his opportunity cost is 40 umbrellas. What would you illustrates the idea of comparative advantage?
Answer: B. Paul is relatively better at producing boats because he gives up fewer umbrellas per boat.
Explanation:
Comparative advantage is a notion introduced by famous economist, David Ricardo. It argues that entities should produce the goods that they have a lower opportunity cost in producing as this would prove they are better at producing said goods because they are more efficient.
In this scenario, Paul most definitely has a comparative advantage over Jessica in the production of boats because he has a lower opportunity cost of 40 umbrellas when he does so. He is therefore more efficient at it than Jessica.
The option that illustrates comparative advantage is Paul is relatively better at producing boats because he gives up fewer umbrellas per boat.
What is comparative advantage?A person has comparative advantage in production of a good or service if it produces the good at a lower opportunity cost when compared to other people.
A person has a lower opportunity cost if it gives up fewer of other goods to produce a good. Paul has a comparative advantage in the production of boats. Jessica has a comparative advantage in the production of umbrellas.
Here are the options to this question:
A. Jessica produces fewer boats in a day than Paul, so she has comparative advantage in producing boats.
B. Paul is relatively better at producing boats because he gives up fewer umbrellas per boat.
C. Paul is better at producing boats because he can produce more boats in a day.
D. There is no comparative advantage in this case because Paul can produce more goods in a day.
E. Jessica produces fewer umbrellas in a day than Paul, so she has comparative advantage in producing boats.
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A market is in equilibrium when A. the government sets the price high enough so that all producers can make profits. B. the government sets the price low enough so that all consumers can afford to purchase as much of the product as they want. C. there is a surplus of the product. D. the price is such that the amount consumers want to buy equals the amount producers want to sell. g
Answer:
D. the price is such that the amount consumers want to buy equals the amount producers want to sell.
Explanation:
A market is in equilibrium when the price is such that the amount consumers want to buy equals the amount producers want to sell.
Generally, a market is considered to be at equilibrium when the quantity of goods and services supplied by the producer is equal to the quantity of goods and services demanded by the consumers.
A direct opposite of this phenomenon is market failure. Market failure is when the market fails to produce the efficient level of output.
This ultimately implies that, a market failure arises when there is inefficiency in the distribution or allocation of goods and services in a free market. Thus, the demand of the consumer of these goods and services are not being met with the level of supply (output) required i.e the forces of demand and supply are not efficient in producing the level of output required by the economy.
Some of the causes of market failure are imperfect information, monopoly, oligopoly, externalities etc.
The Blueberry Designs ads show a lifestyle that is sophisticated and timeless. They recently launched a sportswear line with their trademark DB pattern and patented Blueberry soles on both hiking boots and casual footwear. Those who follow the Blueberry lifestyle are part of
Answer:
A reference group
Explanation:
Reference groups are are set of people who are used as a standard for how to comply with social norms thereby influencing our ideas, values, behaviour, and appearance.
For example a reference group can be a set of people that have achieved a certain level of importance in a field by following a standard.
In the given scenario Blueberry Designs ads show a lifestyle that is sophisticated and timeless.
Those that follow the standards set by Blueberry designs can be said to be a reference group
Raymond Moss, vice president of Moss Auto Parts, gets an annual bonus of 15% of any income, before deducting bonus and income taxes, above $100,000. Income before bonus and income taxes is $250,000. The effective income tax rate is 30%. Required: 1. Compute the amount of Raymond Moss's bonus. Bonus
Answer:
$22,500
Explanation:
Raymond Moss's bonus is computed as the excess of $100,000 of income before bonus and income taxes.
In other words, the income before bonus and income taxes of $250,000 minus $100,000 is the amount upon which the bonus is computed.
Bonus=excess of income before bonus and income taxes*rate of bonus
income before bonus and income taxes.=$250,000-$100,000
income before bonus and income taxes.=$150,000
bonus rate=15%
Bonus=$150,000*15%
Bonus=$22,500
The case for product differentiation does not include the fact that A) products that satisfy a real demand survive. B) standards of living rise with product innovation. C) new products satisfy people with different preferences. D) it wastes society's scarce resources.
Answer:
D) it wastes society's scarce resources.
Explanation:
Product differentiation means the products that should be different as compared with the competitor in terms of cost, quality, delivery time, attractiveness, etc
It should involve the satisfaction of the real demand, also the living standard should be rise as per the innovation of the product, and the new product would satisfy the people with their various preferences but it does not involved the wastage of the scarce resources
hence, the option D is correct
Beth, an employer, wants to hire someone for a strenuous job that requires a great deal of training, which will take place over the course of several years. The applicant who appears most qualified is 58 years old; however, Beth is concerned that the applicant will not be able to handle the physical demands of the position in the long run. Further, she is concerned that the applicant will only continue working for several more years before she retires. Does Beth hire the applicant anyway
Answer:
Beth should not hire the applicant.
Explanation:
Based on common hiring practices, Beth should not hire the applicant. Mainly due to the applicant's age. It costs a company a large amount of money to properly train an employee in order to have them be as efficient as possible when working for the company. This is regardless of their current experience, therefore if a candidate is as old as this particular candidate and is already thinking of retiring then it will be a waste of company resources to hire the individual candidate. Instead, Beth should go for someone with the same experience/skills but will instead be with the company for the long term.
In its first year of operations, Cullumber Company recognized $33,700 in service revenue, $6,700 of which was on account and still outstanding at year-end. The remaining $27,000 was received in cash from customers. The company incurred operating expenses of $17,100. Of these expenses, $13,300 were paid in cash; $3,800 was still owed on account at year-end. In addition, Cullumber prepaid $2,730 for insurance coverage that would not be used until the second year of operations.
Required:
a. Calculate the first year’s net earnings under the cash basis of accounting, and the first year’s net earnings under the accrual basis of accounting.
b. Which basis of accounting (cash or accrual) provides more useful information for decision-makers?
Answer:
A. Cash basis of accounting $10,970
Accrual basis of accounting $13,870
B. Accrual basis of accounting
Explanation:
a. Calculation of the first year net earnings under the cash basis of accounting, and the first year net earnings under the accrual basis of accounting.
Cash basis of accounting
Revenue 27,000
Less Expenses -$13,300
Less Prepaid Assets -$2,730
Total $10,970
Accrual basis of accounting
Revenue 33,700
Less Expenses -$17,100
Less Prepaid Asset -$2,730
Total $13,870
(b) Based on the above Calculation the basis of accounting that provides more useful information for decision-makers will be ACCRUAL basis of accounting of the amount of
$13,870 reason been that it help to show the complete company financial considerations.
Suppose a company is financed with $20 million of equity and $60 million of debt. That is, the company obtained $20 million from shareholders and $40 million from debtholders to finance its operations. Its capital structure is, therefore, 25% (=$20million/ ($20 million+$60 million) ) equity and 75% (=$60million/ ($20 million+$60 million) ) debt. Please provide the solutions to the following questions (a, b) in the box below.
If company issues $30 million new equity in order to retire some of its debt, what would be its new capital structure?
How do you think market would react on the announcement about the new equity issue? Why? Explain.
Answer:
Existing Equity = 20 million
Existing debt = 60 million
Total capital = 20 million + 60 million = 80 million
a. Given company issued 30 million of equity to retire debt
Equity after raise = $20 million + $30 million = $50 million
Debt = $60 million - $30 million = $30 million
Total capital size remain at $80 million
Capital structure, Equity = $50 million/$80 million = 0.625 = 62.50%
Debt = (1-0.625) = 0.375 = 37.50%
b. The market would welcome the new issue as the risk of the firm would be reduced.
Metlock Company purchased a computer for $8,800 on January 1, 2019. Straight-line depreciation is used, based on a 5-year life and a $1,100 salvage value. On January 1, 2021, the estimates are revised. Metlock now feels the computer will be used until December 31, 2022, when it can be sold for $550.
Compute the 2021 depreciation. (Round answer to 0 decimal places, e.g. 45,892.) Depreciation expense, 2021
Answer:
$2,585
Explanation:
carrying value on December 31, 2020 = $8,800 - [($8,800 - $1,100) x 2/5] = $5,720
new depreciable value = $5,720 - $550 = $5,170
depreciation expense per year = $5,170 / 2 = $2,585
if an asset's useful life changes, the change will only influence future depreciation rates, not past ones.
Robin Hood's statement of cash flows contained the following: Cash flows from operating activities in the amount of $29,400 Cash flows from investing activities in the amount of $30,400 Cash flows from (used by) financing activities in the amount of ($44,600) What was Robin Hood's change in cash for the period
Answer:
$15,200 increase
Explanation:
Robin Hood change in cash for the period is computed as;
= Cash flow from operating activities + Cash flow from investing activities - Cash used in financing activities
= $29,400 + $30,400 - $44,600
= $15,200
Robin Hood change in cash for the period is $15,200 increase
Kilt Company used a predetermined overhead rate of $41 per direct labor hour for the year and estimated that direct labor hours would total 6,100 hours. Assume the only inventory balance is an ending Work in Process balance of $17,700. How much overhead was applied during the year
Answer:
$205,000
Explanation:
The above is an incomplete question as we were not given actual direct labor hours. From a similar question, I picked 5,000 as the direct labor hours .
With regards to the above information, applied overhead is computed as;
Applied overhead = Overhead rate × Actual direct labor hour
Given that;
Overhead rate = $41
Actual direct labor hour = 5,000
Therefore,
Applied overhead = $41 × 5,000 = $205,000
The capital balance for Messalina is $210,000 and for Romulus is $140,000. These two partners share profits and losses 60 percent (Messalina) and 40 percent (Romulus). Claudius invests $100,000 in cash in the partnership for a 20 percent ownership. The bonus method will be used. What are the capital balances for Messalina, Romulus, and Claudius after this investment is recorded
Answer: $216,000 , $144,000 , $90,000
Explanation:
The capital balances for Messalina, Romulus, and Claudius after this investment is recorded will be calculated thus:
Messalina:
Capital balance: $210,000
Bonus share: 60% × $10000 = $6,000
New capital balance: $216,000
Romulus:
Capital balance: $140,000
Bonus share: 40% × $10000 = $4,000
New capital balance: $144,000
Claudius:
Capital balance: $100,000
Bonus share: 10% × $10000 = ($10,000)
New capital balance: $90,000
The answer is $216,000 , $144,000 , $90,000
Pension data for Sterling Properties include the following: ($ in thousands) Service cost, 2021 $ 112 Projected benefit obligation, January 1, 2021 850 Plan assets (fair value), January 1, 2021 900 Prior service cost—AOCI (2021 amortization, $8) 80 Net loss—AOCI (2021 amortization, $1) 101 Interest rate, 6% Expected return on plan assets, 10% Actual return on plan assets, 11% Required: Assume Sterling Properties prepares its financial statements according to International Financial Reporting Standards (IFRS). The interest rate on high-grade corporate bonds is 6%. Determine the net pension cost.
Answer:
Net pension cost is $82,000.
Explanation:
The net pension cost can be determined as follows:
Details ($ in thousands)
Service cost, 2021 112
Interest cost (w.1) 51
Expected return on plan assets (w.3) (90)
Amortization of prior service cost 8
Amortization of net loss 1
Net pension cost 82
Workings ($ in thousands):
w.1: Interest cost = Projected benefit obligation, January 1, 2021 * Interest rate = $850 * 6% = $51
w.2: Gain from expected return on the plan assets = (Plan assets (fair value), January 1, 2021 * Actual return rate on plan assets) - (Plan assets (fair value), January 1, 2021 * Expected return rate on plan assets) = ($900 * 11%) - ($900 * 10%) = $9
w.3: Expected return on plan assets = (Plan assets (fair value), January 1, 2021 * Actual return rate on plan assets) - Gain from expected return on the plan assets = ($900 * 11%) - $9 = $99 - $9 = $90
Which of these is a group of producers working together to raise prices and
increase profits?
A. defense contractors
B. a cartel
C. a trading bloc
D. a labor union
Answer:
B. a cartel
Explanation:
A cartel is a group of independent producers who collude to promote and protect their trade interests. Large producers in the same industry form cartels to manipulate supply and fix prices. Through the cartel, the large producers set prices that guarantee maximum profits for their members. The cartel eliminates price competition among the major producers in the industry.
Martin Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year follows.
Actual manufacturing overhead = $150,000
Estimated manufacturing overhead = $145,000
Direct labor hours incurred = 4,800
Direct labor hours estimated = 5,000
Compute the predetermined overhead rate.
Answer:
the predetermined overhead rate is $29 per direct labor hour
Explanation:
The computation of the predetermined overhead rate is shown below:
Predetermined overhead rate = Estimated manufacturing overhead ÷ estimated direct labor hours
= $145,000 ÷ 5,000 direct labor hours
= $29 per direct labor hour
Hence, the predetermined overhead rate is $29 per direct labor hour
Which of the following examples best illustrates scarcity:
a. The city of Honolulu increases the availability of parking next to an old stadium to accommodate the increase in visitors and audiences in recent years.
b. The value of land in the Central Business District of Kuala Lampur, Malaysia has been increasing as the city continues to enjoy an economic boom.
c. Due to an increase in demand for craft beer in New York City, the number of microbreweries has increased.
d. The code for a film editing software has been made open source and the software is now being replicated by a number of other companies.
Answer:
c. Due to an increase in demand for craft beer in New York City, the number of microbreweries has increased.
Explanation:
In economics, Scarcity can be regarded as paucity, it's the basic fact about life, which explain that there is finite and limited resources in life. It's a concept that explains the gap that exist between insufficient resources as well as theoretical needs that is needed to be met by the mentioned resources.
Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2020 information related to Blossom Company ($000 omitted).
Administrative expense
Officers' salaries $5,488
Depreciation of office furniture and equipment 4,548
Cost of goods sold 61,158
Rent revenue 17,818
Selling expense Delivery expense 3,278
Sales commissions 8,568
Depreciation of sales equipment 7,068
Sales revenue 97,088
Income tax 9,658
Interest expense 2,448
Required:
a. Prepare income statement for the year 2014 using the mutiple-step form. Common shares outstanding for 2014 total 40,550 (000 omitted).
b. Prepare an income statement for the year 2014 using the single-step form.
Answer:
Part a
Blossom Company
Income statement for the year 2014 - multiple-step form
$000
Sales revenue 97,088
Less Cost of goods sold (61,158)
Gross Profit 35,930
Less Operating Expenses :
Administrative expense
Officers' salaries 5,488
Depreciation of office furniture and equipment 4,548 (10,036)
Selling expense :
Delivery expense 3,278
Sales commissions 8,568
Depreciation of sales equipment 7,068 (18,914)
Operating Income (Loss) 6,980
Less Non Operating Expenses :
Income tax 9,658
Interest expense 2,448 (12,106)
Net Income (Loss) (5,126)
Part b
Blossom Company
Income statement for the year 2014 - single-step form
$000
Sales revenue 97,088
Less Cost of goods sold (61,158)
Gross Profit 35,930
Less Expenses :
Officers' salaries 5,488
Depreciation of office furniture and equipment 4,548
Delivery expense 3,278
Sales commissions 8,568
Depreciation of sales equipment 7,068
Income tax 9,658
Interest expense 2,448 (41,056)
Net Income (Loss) (5,126)
Explanation:
The multiple-step form shows the Operating Income and Net Income separately by grouping expenses as either operating and non-operating expenses.
The single-step form shows all expenses under one category and no grouping of expenses as either operating or non-operating.
For Eckstein Company, the predetermined overhead rate is 129% of direct labor cost. During the month, Eckstein incurred $109,000 of factory labor costs, of which $81,400 is direct labor and $27,600 is indirect labor. Actual overhead incurred was $109,306. (a1) Compute the amount of manufacturing overhead applied during the month. Manufacturing overhead applied
Answer:
Allocated MOH= $105,006
Explanation:
Giving the following information:
Predetermined manufacturing overhead rate= 129% of direct labor cost.
Actual direct labor= $81,400
To calculate the allocated overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 1.29*81,400
Allocated MOH= $105,006
Answer:
Allocated MOH= $105,006
Explanation:
Giving the following information:
Predetermined manufacturing overhead rate= 129% of direct labor cost.
Actual direct labor= $81,400
To calculate the allocated overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 1.29*81,400
Allocated MOH= $105,006
The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances:
Account Title Debits Credits
Cash 29,300
Accounts receivable 17,000
Equipment 29,000
Accumulated depreciation 8,700
Salaries payable 9,500
Common stock 48,000
Retained earnings 9,100
Total 75,300 75,300
The following is a summary of the transactions for the year:
Service revenue, $130,000, of which $39,000 was on account and the balance was received in cash.
Collected on accounts receivable, $26,200.
Issued shares of common stock in exchange for $15,000 in cash.
Paid salaries, $47,500 (of which $9,500 was for salaries payable at the end of the prior year).
Paid miscellaneous expense for various items, $25,600.
Purchased equipment for $17,500 in cash.
Paid $3,150 in cash dividends to shareholders.
Accrued salaries at year-end amounted to $950.
Depreciation for the year on the equipment is $2,900.
Required:
2., 5, & 8. Prepare the summary, adjusting and closing entries for each of the transactions listed.
3. Post the transactions, adjusting and closing entries into the appropriate t-accounts.
4. Prepare an unadjusted trial balance.
6. Prepare an adjusted trial balance.
7-a. Prepare an income statement for 2021.
7-b. Prepare a balance sheet as of December 31, 2021.
9. Prepare a post-closing trial balance.
Answer:
Realidades 2 WKBK page 109
Explanation:
Realidades 2 WKBK page 109
For each of the following products, indicate whether you believe demand will be relatively price elastic or relatively price inelastic. Give economic reasons for each reply. Remember that high demand does NOT imply high elasticity. High elasticity occurs if a change in quantity demanded is relatively large compared to the associated change in price regardless of how high the quantity demanded is to begin with. a. Mayonnaise in general b. A specific brand of mayonnaise c. Chevrolet automobiles d. Tesla automobiles e. Washing machines f. Beer
Answer:
Note that goods that are considered in general have a broad demand and goods with broad demand are inelastic as there are no substitutes for them. Goods that are specific by nature have narrow demand and have elastic demand because consumers can switch to others if the price is increased slightly.
Hence, Mayonnaise in general, Washing machines and beer have inelastic demand as there are no close substitutes. The remaining three, namely, specific brand of mayonnaise, Chevrolet automobiles and Tesla automobiles have elastic demand as there are substitutes and consumers/users will switch to others if the price is no more favorable.
Allyson Cooke is a union member and an employee of a company that manufactures surgical equipment. She believes she has a grievance because her supervisor made her work an hour longer than usual for several days and has refused to pay her any overtime. Cooke should contact her _____, who represents union members to management when workers have complaints.
Answer: national union president
Explanation:
Since she wasn't paid for overtime, Cooke should contact her national union president, who represents union members to management when workers have complaints.
The aim of the national union is to seek solution to any challenges that are faced by their members. The union also make sure that their members have a comfortable working environment that is safe and also help on negotiating for better pay.
For each of the following citations, identify the type of authority (statutory, administrative, or judicial) and explain the citation.
a. Reg. Sec. 1.111-1(b)
b. IRC Sec. 469(c)(7)(B)(i)
c. Rev. Rul. 82-204, 1982-2 C.B. 192
d. Amdahl Corp., 108 TC 507 (1997)
e. PLR 9727004
f. Hills v. Comm., 50 AFTR2d 82-6070 (11th Cir., 1982)
Answer:
Explanation:
Administrative
Statutory
Administrative
Judicial
Administrative
Judicial