Answer:
Provide accounting information that serves external users.
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB). The financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors.
Financial reporting can be defined as the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. Examples of financial statements includes Balance sheet, cash-flow and income statement.
Hence, the primary objective of financial accounting is to provide accounting information that serves external users so as to enable them have a good understanding of the financial inclination of a business firm and thus, make an informed decision whether or not to invest in the business firm.
Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B Type C Total 5,000 units $ 4 $ 9 $ 4 $ 17 7,500 units 4 6 3 13 If Shum produces 10,000 units, the total cost would be: Multiple Choice $90,000. $100,000. $110,000. $125,000. None of the answers is correct.
Answer:
$110,000
Explanation:
Variable cost is determined by high-low method:
Type A = $50,000
Type B = 0
Fixed cost determined using high low method is:
Type A = 0
Type B = $60,000
The total cost of high low method is $110,000.
stock sells for $100 rights-on, and the subscription price is $90. Ten rights are required to purchase one share. Tomorrow the stock of Tricki will go ex-rights. What is Tricki’s expected price when it begins trading ex-rights?
Answer:
$99.09
Explanation:
Calculation for What is Tricki's expected price when it begins trading ex-rights
Using this formula
Expected price=Stock rights-on- [ (Stock rights-on-Subscription price)÷(10 rights+ One share)]
Let plug in the formula
Expected price=$100-[($100-$90)÷(10+1)]
Expected price=$100-($10÷11)
Expected price=$100-$0.91
Expected price=$99.09
Therefore Tricki's expected price when it begins trading ex-rights will be $99.09
True or false: small server sections are more typical in fast service operations
Answer:
False
Explanation:
Bigger Servers are more typical than Small ones *for fast operations* because it has more sections,
Suppose that you are selling comic books door to door. You purchased all your comic books up front so your costs are currently all sunk. You are currently selling comic books for $3.50 apiece and you sell 25 comic books per day. You know that the elasticity of demand for comic books at your current price is -.6. Is your price too high or too low
Answer: The price can be said to be too low.
Explanation:
Since the elasticity of demand for comic books at the current price is -0.6, then we can say that the price is too low as the demand is inelastic.
An elasticity of demand that is less than one shows that a product has an inelastic demand. This simply means that the change in price would bring about a very little change to the quantity of the comic books that'll be bought.
Emily bought 200 shares of ABC Co. stock for $29.00 per share on 60% margin. Assume she holds the stock for one year and that her interest costs will be $80 over the holding period. Ignoring commissions, what is her percentage return (loss) on invested capital if the stock price went down 10%
Answer:
-19%
Explanation:
Emily 200 shares at $29. So, cost of shares = 200 * $29 = $5,800
Margin is 60%. So, cash investment = $5,800 * 60% = $3,480
Stock price went down by 10%. So selling price of stock = $29 x 90% = $26.10
Sale value of stock = 200 * $26.10
Sale value of stock = $5,220
Gross profit / (Loss) = Sale value - Cost
Gross profit / (Loss) = $5,220 - $5,800
Gross profit / (Loss) = ($580)
Net loss = Gross profit / (loss) - Interest cost
Net loss = (580) - 80
Net loss = ($660)
% of loss on cash investment = (Loss / Investment) * 100
% of loss on cash investment = (-$660/$3,480) x 100
% of loss on cash investment = -18.97%
% of loss on cash investment = -19%
Organizations sometimes choose robust strategies in which they know they will have no regrets regardless of what takes place. This route makes sense when: Select one or more: a. quantitative odds can be ascribed b. feedback occurs c. qualitative outcomes described d. technology is important
Answer:
b. feedback occurs
c. qualitative outcomes
Explanation:
In the given scenario a business is willing to take robust challenge with resultant effect that does not bother them.
The only scenario where businesses are comfortable with this is when there is feedback and when only qualitative outcomes like interventions in the job.
When a business has constant feed back strategies change accordingly to meet business needs.
When only qualitative outcomes are important, volume of production does not matter
Stranahan Company allocates overhead based on machine hours. Estimated overhead costs for the year total $217,000 and the company estimates that it will use 31,000 machine hours during the year. Actual overhead for the year was $220,000 and the company used 30,000 machine hours. If Job 45 requires 1,000 machine hours, how much overhead will be allocated to Job 45?
a) $7,097
b) $7,333
c) $7,233
d) $7,000
Answer:
Allocated MOH= $7,000
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 217,000 / 31,000
Predetermined manufacturing overhead rate= $7 per machine hour
Job 45:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 7*1,000
Allocated MOH= $7,000
In 2008, Lower Case Productions had cash flows from investing activities of $85,000 and cash flows from financing activities of $93,000. The balance in the firm's cash account was $94,000 at the beginning of 2018 and $72,000 at the end of the year. What was Lower Case's cash flow from operations for 2018
Answer:
-$200,000
Explanation:
The cash balance in the cash account at the end of the year is shown by the formula below:
Cash balance at the end of the year=cash flows from operations+cash flow investing activities+cash flows from financing activities+beginning cash balance
Cash balance at the end of the year=$72,000
cash flows from operations=X
cash flow investing activities=$85,000
cash flows from financing activities= $93,000
beginning cash balance=$94,000
cash flow investing activities+cash flows from financing activities+beginning cash balance=$85,000+$93,000+$94,000=$272,000
$72,000=X+$272,000
The above shows that cash flows from operations is a cash outflow not an inflow
X=$72,000-$272,000=-$200,000
The income statement of Dolan Corporation for 2014 included the following items: Interest revenue $121,000 Salaries and wages expense 180,000 Insurance expense 18,200 The following balances have been excerpted from Dolan Corporation's balance sheets: December 31, 2014 December 31, 2013 Interest receivable $18,200 $15,000 Salaries and wages payable 17,800 8,400 Prepaid insurance 2,200 3,000 The cash paid for insurance premiums during 2014 was
Answer:
$17,400
Explanation:
Equation to be used is as follows: Beginning Prepaid Insurance Expense balance + Cash paid for insurance premium - Ending prepaid insurance balance = Insurance expense
$3,000 + Cash paid - $2,200 = $18,200
$800 + Cash paid = $18,200
Cash paid = $18,200 - $800
Cash paid = $17,400
So, the cash paid for insurance premiums during 2014 was $17,400
Suppose that a task in a project has the following time estimates: to optimistic completion time 11 weeks tm most likely completion time 14 weeks tp pessimistic completion time 23 weeks Compute the expected task variance. The task expected task variance is weeks. (Enter your response rounded to two decimal places.)
Answer:
6 weeks
Explanation:
Optimistic Completion Time - 11 weeks
Most likely completion time - 14 weeks
Pessimistic completion time - 23 weeks
Compute the expected task variance in weeks. Recall that Variance is a measure of dispersion - a measure that shows the distance or spread between or among values of a variable.
Expected Variance is the average of the variance values.
First,
the variance between optimistic CT and most likely CT is (14 - 11) = 3 weeks
Second,
the variance between pessimistic CT and most likely CT is (23 - 14) = 9 weeks
The expected variance is the average of these two values and that's (3 + 9)/2 = 12/2 = 6 weeks
So the expected variance from the mean completion time of 14 weeks is 6 weeks before or 6 weeks after. This accommodates both the optimist and the pessimist.
Concerned by recent negative trends in economic indicators such as the consumer price index, gross domestic product, and inflation, the marketing manager of Kevin's Kayaks recommends that the company reduce its advertising spending. His recommendation is based on ________ data.
Answer:
Macroeconomics.
Explanation:
Economics can be classified into two (2) main categories, namely;
1. Microeconomics can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets. Simply stated, it focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.
2. Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Therefore, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
In this scenario, concerned by recent negative trends in economic indicators such as the consumer price index, gross domestic product, and inflation, the marketing manager of Kevin's Kayaks recommends that the company reduce its advertising spending. Thus, his recommendation is based on macroeconomics data.
This ultimately implies that, macroeconomic is a form of externality that typically affects the levels of inflation, unemployment, consumer price index, or growth in the economy as a whole (GDP).
Ed owns investment land with an adjusted basis of $35,000. Polly has offered to purchase the land from Ed for $175,000 for use in a real estate development. The amount offered by Polly is $10,000 in excess of what Ed perceives as the fair market value of the land. Ed would like to dispose of the land to Polly but does not want to incur the tax liability that would result. He identifies an office building with a fair market value of $175,000 that he would like to acquire. Polly purchases the office building and then exchanges the office building for Ed's land.
Required:
a. Calculate Ed's realized and recognized gain on the exchange and his basis for the office building
b. Calculate Polly's realized and recognized gain on the exchange and her basis in th eland.
c. How do you determine if somethng is a recognized gain or loss?
Answer:
a. Amount realized $175,000
Less: Adjusted basis ($35,000)
Realized gain $140,000
Recognized gain $0
Observation: What Ed believe is that the exchange could qualify as section 0131 postponement treatment
b. Amount realized $175,000
Less: Adjusted basis ($175,000)
Realized gain $0
Recognized gain $ -
Exchange for the land is $175,000
c. One can determine if it is recognized gain if the figure is positive and if the figure turns negative (i.e -$2,000) then, that is recognized loss.
On October 1, 2018, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business:
Oct. 1 Jay transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $32,800.
4 Paid rent for period of October 4 to end of month, $3,180.
10 Purchased a used truck for $27,000, paying $3,000 cash and giving a note payable for the remainder.
13 Purchased equipment on account, $12,790.
14 Purchased supplies for cash, $2,200.
15 Paid annual premiums on property and casualty insurance, $4,920.
15 Received cash for job completed, $13,780.
Enter the following transactions on Page 2 of the two-column journal:
21 Paid creditor a portion of the amount owed for equipment purchased on October 13, $4,560.
24 Recorded jobs completed on account and sent invoices to customers, $15,680.
26 Received an invoice for truck expenses, to be paid in November, $1,440.
27 Paid utilities expense, $1,640.
27 Paid miscellaneous expenses, $590.
29 Received cash from customers on account, $6,560.
30 Paid wages of employees, $4,360.
31 Paid dividends, $3,640.
Required:
1. Journalize and insert the posting references for each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. For a compound transaction, if an amount box does not require an entry, leave it blank.
11 Cash 31 Common Stock
12 Accounts Receivable 33 Dividends
13 Supplies 41 Fees Earned
14 Prepaid Insurance 51 Wages Expense
16 Equipment 53 Rent Expense
18 Truck 54 Utilities Expense
21 Notes Payable 55 Truck Expense
22 Accounts Payable 59 Miscellaneous Expense
Answer:
Pioneer Designs
Journal Entries:
Date Account Titles Debit Credit
Oct. 1 11 Cash $32,800
31 Common Stock $32,800
To record the transfer of cash for common stock.
Oct. 4 53 Rent Expense $3,180
11 Cash $3,180
To record the payment of October rent.
Oct. 10 18 Truck $27,000
11 Cash $3,000
21 Notes Payable $24,000
To record the purchase of truck for cash and with a note for the remainder.
Oct. 13 16 Equipment $12,790
22 Accounts Payable $12,790
To record the purchase of equipment on account.
Oct. 14 13 Supplies $2,200
11 Cash $2,200
To record the purchase of supplies for cash.
Oct. 15 14 Prepaid Insurance $4,920
11 Cash $4,920
To record the prepayment of annual insurance premium.
Oct. 15 11 Cash $13,780
41 Fees Earned $13,780
To record the receipt of cash for job completed.
Page 2:
Oct. 21 22 Accounts Payable $4,560
11 Cash $4,560
To record the part-payment on account.
Oct. 24 12 Accounts Receivable $15,680
41 Fees Earned $15,680
To record the jobs completed and billed to customers.
Oct. 26 55 Truck Expense $1,440
22 Accounts Payable $1,440
To record the receipt of invoice for truck expenses.
Oct. 27 54 Utilities Expense $1,640
11 Cash $1,640
To record the payment of utilities expense.
Oct 27 59 Miscellaneous Expense $590
11 Cash $590
To record the payment of miscellaneous expense.
Oct. 29 11 Cash $6,560
12 Accounts Receivable $6,560
To record the receipt of cash from customers on account.
Oct. 30 51 Wages Expense $4,360
11 Cash $4,360
To record the payment of wages.
Oct. 31 33 Dividends $3,640
11 Cash $3,640
To record the payment of dividends to stockholders.
Explanation:
a) Data and Calculations:
Chart of accounts:
11 Cash
12 Accounts Receivable
13 Supplies
14 Prepaid Insurance
16 Equipment
18 Truck
21 Notes Payable
22 Accounts Payable
31 Common Stock
33 Dividends
41 Fees Earned
51 Wages Expense
53 Rent Expense
54 Utilities Expense
55 Truck Expense
59 Miscellaneous Expense
b) Journal entries are used to record business transactions as they occur on a daily basis. They show the accounts involved in each transaction and the ones to be debited and the ones to be credited as the case may be.
Bob makes his first deposit into an IRA earning compounded annually on his th birthday and his last deposit on his birthday ( equal deposits in all). With no additional deposits, the money in the IRA continues to earn interest compounded annually until Bob retires on his th birthday. How much is in the IRA when Bob retires
Answer:
$187,881.52
Explanation:
The computation is shown below:
The future value would be
= PMT × ((1 + rate of interest)^number of years -1) ÷ (rate of interest)
= $1,500 × ((1 + 0.066)^13 - 1) ÷ (0.066)
= $1,500 × 19.626
= $29,439.14
Now when bob retired, the amount is
= $29,439.14 × (1 + 0.066)^29
= $29,439.14 × 6.383
= $187,881.52
g A company is considering a project with an initial cost of $8.5 million. The project will produce cash inflows of $1.93 million per year for 6 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.67% and a cost of equity of 11.31%. The debt-equity ratio is 0.62 and the tax rate is 40%. What is the net present value of the project
Answer:
$345,941
Explanation:
The computation of the net present value is given below:
But before that the WACC is
Weight of equity is
= 1 ÷ (1 + 0.62)
= 0.61728
And,
Weight of debt is
= 1 - 0.6173
= 0.38275
Now
WACC is
= 0.61728 × 0.1131 + 0.38275 × 0.0567 × ( 1 - 0.4)
= 0.069814 + 0.013021
= 0.082835 or 8.2835%
Now the net present value is
= All year cash flows × PVIFA factor at 8.2835% for 6 years - initial investment made
= $1,930,000 × 4.583389 - $8,500,000
= $345,941
Suppose the following information was taken from the 2022 financial statements of pharmaceutical giant Merck and Co. (All dollar amounts are in millions.) Retained earnings, January 1, 2022 $46,600.0 Cost of goods sold 8,900.0 Selling and administrative expenses 8,100.0 Dividends 4,000.0 Sales revenue 35,800.0 Research and development expense 5,500.0 Income tax expense 2,300.0 After analyzing the data, prepare an income statement for the year ending December 31, 2022.
Answer and Explanation:
The preparation of the income statement is presented below:
Revenue:
Sales $35,800
Less: Expenses:
Cost of Goods Sold -$8,900
Selling & Adm. Exp. -$8,100
Research & Dev. Exp. -$5,500
Income Tax -$2,300
Net Income $11,000
We simply deduct all the expenses from the revenue so that the net income could arrive
Which 2 statements regarding Bank Feed best practice workflows are correct?
Answer: • You should complete Match transactions first, then move on to Add transactions.
• You should match downloaded Bank Feed transactions to Invoice Payments, Sales Receipts, Deposits, or open invoices.
Explanation:
The statements regarding Bank Feed best practice workflows involves the matching of transaction first, after which the transactions can then be added.
Also, one should ensure that the Bank Feed transactions that are downloaded should be matched to to their respective book of account such as deposits, Invoice, Sales Receipts, etc.
Justin Slugger is about to sign a contract with the Columbus Homers. The professional baseball team has given him two options of joining the team with a lumpsum of $20,000,000 or an annuity of $2,500,000 for 15 years. The lumpsum will be paid one year after the signing day if Paul takes the first option. The first annuity will be paid on the signing day if he instead takes the second option. Which is the better option for Paul if an annual interest rate of 10% is utilized for the annuity? Do not consider taxes.
Answer:
Option 1 Present value = $18,181,818.18
Option2 Present value = $20,916,718.64
Option 2 which is an annuity for 15 years is a better option as it has a higher present value than option 1.
Explanation:
To decide the better option, we need to calculate the present value of option 1 which is the lumpsum and the present value of option 2 which is an annuity and compare these values.
The present value of option 1 can be calculated as follows,
Option 1 Present value = Future value / (1 + r)^t
Where,
r is the rate of return of interest or discount ratet is the time in yearsOption 1 Present value = 20,000,000 / (1+0.1)^1
Option 1 Present value = $18,181,818.18
The present value of option 2 can be calculate using the formula of present value of annuity due as the payments will be made at the start of the period. The formula for present value of annuity due is attached.
Option2 Present value = 2,500,000 + 2,500,000 * [(1 - (1+0.1)^-14) / 0.1]
Option2 Present value = $20,916,718.64
Option 2 which is an annuity for 15 years is a better option as it has a higher present value than option 1.
Classical economists believe that the producer can produce more of the product at the same price. the economy was never at full employment of resources. the economy is approaching full employment as wages and prices increase. the economy will adjust to at full employment of resources. there are many unemployed resources.
Answer:
the economy will adjust to full employment of resources.
Explanation:
Of course, that was one of the primary views of classical economists such as J.B. Say and Alfred Marshal.
They held that it was possible to do what many modern economists would call the impossible: full employment, One where the economy uses its resources to the full.
Select the correct answer.
Occupational codes are:A. A Career clusters
B. Personality types
C. Personality traits
D. Types of jobs
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
Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal Bank. The bank requested financial statements from Rhino Enterprises as a basis for granting the loan. Colleen has told her accountant to provide the bank with a balance sheet. Colleen has decided to omit the other financial statements because there was a net loss during the past year
Discuss the following questions:
a. Is Colleen behaving in a professional manner by omitting some of the financial statements?
b. What types of information would business owners be willing to provide bankers? Why types of information would business owners not be willing to provide?
c. What types of information would bankers want before extending a loan?
d. What common interests are shared by bankers and business owners?
Answer:
No ; kindly check explanation
Explanation:
1.)
Colleen's decision to provide incomplete document is unprofessional and collen has literally tried to conceal useful information required by the bank before making a decision. Hence, Colleen's act is unprofessional.
. What types of information would business owners be willing to provide bankers?
2.) Business owners will only be willing to disclose to banks information which showcase ands acknowledge that their business is prospering as this will fast track their loan application and worth.
3.) Banks wants information which will disclose the performance of the business making the loan application, information including business worth and periodic revenue or profit.
4.)
* Flexibility on repayment plan
* Balanced interest charge
* Less risk
* steady repayment when due
In a certain manufacturing industry, some amount of air pollution is
unavoidable. What would be a reasonable CSR approach for a business to
take in light of this fact?
A. Limit the pollution as much as possible, and invest in research into
new production methods that would be more environmentally
friendly.
B. Because some pollution is unavoidable, the business need not
concern itself with spending money in better equipment and
technology.
C. Because the air pollution is unavoidable, the business should
move into a different field of industry if they are truly committed to
CSR values.
D. Because the pollution is unavoidable, consumers will not holly the
company responsible; the company has no need to implement any
costly practices.
Answer:
Limit the pollution as much as possible, and invest in research into
new production methods that would be more environmentally
friendly.
Blue Dog Manufacturing Corp. just reported a net income of $7,000,000, and its current stock price is $23.00 per share. Blue Dog is forecasting an increase of 25% for its net income next year, but it also expects it will have to issue 1,900,000 new shares of stock (raising its shares outstanding from 5,500,000 shares to 7,400,000 shares).
Required:
If Blue Dog’s forecast turns out to be correct and its price-to-earnings (P/E) ratio does not change, what does management expect its stock price to be one year from now?
Answer:
$21.41
Explanation:
The computation of the stock price one year from now is as follows:
As we know that
Earnings per share = Earnings after tax ÷ Number of shares
= $7,000,000 ÷ 5,500,000 shares
= $1.27 per share
And,
P/E ratio = Current price per share ÷ Earnings per share
= $23 ÷ $1.27
= 18.11
Next Year:
Earnings after tax is
= $7,000,000 × 1.25
= $8,750,000
Now
Earnings per share = Earnings after tax ÷ Number of shares
= $8,750,000 ÷ 7,400,000 shares
= $1.18 per share
And,
P/E ratio = Current price per share ÷ Earnings per share
18.11 = Current price per share ÷ $1.18
So, the current price per share is
= $1.18 × 18.11
= $21.41
McCanless Co. recently purchased an asset for $2,550,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. What is the amount of depreciation in Year 2
Answer:
the depreciation expense in year 2 is $1,133,475
Explanation:
The computation of the depreciation expense in year 2 is given below:
depreciation in Year 2 is
= Asset amount × Depreciation percentage in year 2
= $2,550,000 × 44.45%
= $1,133,475
Hence, the depreciation expense in year 2 is $1,133,475
You have graduated from college but unfortunately have $39,000 in outstanding loans. The loans require payments of $3,435 per year, which covers interest and principal repayment (that is, the loan has the same basic features as a mortgage). If the interest rate is 4 percent, how long will it take you to repay the debt
Answer:
15.44 years
Explanation:
Using both excel rate function and financial calculator, the time taken to repay the debt can be computed thus:
Excel rate function:
=nper(rate,pmt,-pv,fv)
rate= interest rate=4%
pmt=yearly payment=c
pv=loan oustanding=-39000
fv=the balance after all payments should be zero=0
=nper(4%,3435,-39000,0)= 15.44 years
Financial calculate
PMT= 3435
RATE=4
PV=-39000
FV=0
CPT N=15.44 years
This means a payment of $3,435 per year for 15 years and $ 1,511.40 ($3,435*0.44) in the sixteenth year
If you start investing a little money now you will most likely have a lot more
money than those who start investing later on in life.
A.True.
B.False
Need Help!!! Plz Brainliest
The following data pertains to Lam Co.'s manufacturing operations: Inventories 4/1 4/30 Direct Materials $ 18,000 $ 15,000 Work in Process 9,000 6,000 Finished Goods 27,000 36,000 Additional information for the month of April: Direct materials purchased $ 32,000 Direct labor 30,000 Direct labor rate per hour 10.00 Factor overhead incurred 40,000 Overhead is applied at $12 per direct labor hour. For the month of April, conversion cost incurred was:
Answer: $65000
Explanation:
For the month of April, the conversion cost that was incurred would be calculated as:
Beginning inventory of Direct Materials = $18000
Add: Purchase = $32000
Total cost of Direct Materials available = $50000
Less: Ending inventory of Direct Material = $15000
Therefore, Direct material used:
= $50000 - $15000 = $35000
Add: Direct labor = $30000
Conversion cost incurred = $35000 + $30000 = $65000
Dawg Town produces dog tags and bowls with the name of your dog permanently etched into a stainless steel label. Indirect etching costs are allocated to tags and bowls based on the amount of time spent on the laser etching machine. The company has budgeted etching costs of $4,224 per month and expects to spend 4,800 hours on the etching labels each month. Each dog tag uses 24 minutes and each bowl uses 6 minutes of laser etching time. How much of the etching costs will be allocated to each dog tag
Answer:
the amount of etching cost that should be allocated to each dog tag is $0.35
Explanation:
The computation of the amount of etching cost that should be allocated to each dog tag is as followS:
= (Budgeted etching cost ÷ (spending hours × 60)) × number of minutes used
= ($4,224 ÷ (4,800 hours × 60)) × 24 minutes
= $0.35
Hence, the amount of etching cost that should be allocated to each dog tag is $0.35
Review the transactions and determine the accounts, the account types (use assets, liabilities, equity, dividends, revenue, and expenses), if they increase/decrease and if they are DR/CR.
Assets Liabilities
Beginning of the year: $27,000 $16,000
End of Year: $61,000 $25,000
1) What is the equity at the beginning of the year?
2) What is the equity at the end of the year?
3) If the company issues common stock of $5,300 and pay dividends of $44,200, how much is net income (loss)?
4) If net income is $3,800 and dividends are $6,600, how much is common stock?
5) If the company issues common stock of $16,500 and net income is $18,700, how much is dividends?
6) If the company issues common stock of $42,900 and pay dividends of $3,100, how much is net income (loss)?
Answer and Explanation:
The computation is shown below:
1.
Beginning Equity = Beginning Assets – Beginning Liabilities
= $27,000 - $16,000
= $11,000
2.
Ending Equity = Ending Assets – Ending Liabilities
= $61,000 - $25,000
= $36,000
3.
Increase in Equity = Ending Equity – Beginning Equity
= $36,000 - 11,000
= $25,000
Now
Increase in Equity = Issue of Common Stock + Net Income - Dividend
$25,000 = $5,300 + Net Income - $44,200
Net Income = $63,900
4.
Increase in Equity = Issue of Common Stock + Net Income - Dividend
$25,000 = Issue of Common Stock + $3,800 - $6,600
Issue of Common Stock = $27,800
5.
Increase in Equity = Issue of Common Stock + Net Income – Dividend
$25,000 = $17,200 + $19,600 - Dividend
Dividend = $11,800
6.
Increase in Equity = Issue of Common Stock + Net Income – Dividend
$25,000 = $42,900 + Net Income - $3,100
Net Income (loss) = -$14,800