Answer and Explanation:
The computation is shown below:
Predetermined overhead rate is
= Variable overhead cost per direct labor hours + Fixed overhead cost ÷ Direct labor-dollars
= $0.17 + $4,956,000 ÷ 8,260,000
= $0.17 + $0.6
= $0.77
Now the total cost is
= Direct material cost + direct labor cost + manufacturing cost
= $1,386,000 + $2,478,000 + ($2,478,000 × $0.77)
= $5,772,060
We assume that in a village there are farmers, carpenters, and tailors, who provide the three essential goods: food, housing, and clothing. Suppose the farmers consume 2/5 of the food (produced by farmers), 1/3 of the housing (produced by carpenters) and 1/2 of the clothes (produced by tailors). The carpenter consumes 2/5 of the food, 1/3 of the housing, and 1/2 of the clothes. The tailors consume 1/5 of the food, 1/3 of the housing, and no clothes. Assume this is a closed Leontief model.
If we know that the tailors produce 560 units of clothes, then the farmers produce ___________units of food, and the carpenters produce_________ units of housing.
Answer:
The farmers produce 746 units.
The carpenters produce 746 units.
Explanation:
Leontief model is a model of economics for whole country. It helps to understand the effects of increased production on the economy. In the given scenario the farmers, carpenters and tailor maintain a ratio in which they produce goods. The equilibrium condition will be Ap = p. The ratio of farmer, carpenter and tailor will be 4:4:3 to achieve the equilibrium. If the tailor produces 560 units then farmer will produce 560 * 4 /3 and carpenter will produce 560 *4/3.
How has cuba changed torughtout history
Answer:
After the revolutionary government nationalized all U.S. property in Cuba in August 1960, the American Eisenhower administration froze all Cuban assets on American soil, severed diplomatic ties and tightened its embargo of Cuba. The Key West–Havana ferry shut down.
Explanation:
Determine the taxable income for a firm as described here: The firm recorded revenues of $46,000 and recaptured depreciation of $2,000 for the year just ended During the year, the firm incurred cash expenses of $27,500 and depreciation expenses of $15,575.
Answer:
Taxable Income = $4,925
Explanation:
Computation of taxable income
Particulars Amount
Revenue $46,000
Add: Recaptured depreciation $2,000
Less: Cash expenses $27,500
Less: Depreciation expenses $15,575
Taxable Income $4,925
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement, which follows:Sales $1,584,000Variable expenses $610,020Contribution margin $973,980Fixed expenses $1.071,000Net operating income (loss) $(97,020)In an effort to isolate the problem, the president has asked for an income statement segmented by division. Accordingly, the Accounting Department has developed the following information:East DivisionSales $434,000Variable expenses as a percentage of sales 53%Traceable fixed expenses $261,000Central DivisionSales $650,000Variable expenses as a percentage of sales 20%Traceable fixed expenses $357,000West DivisionSales $500,000Variable expenses as a percentage of sales 50%Traceable fixed expenses $204,0001. Prepare a contribution format income statement segmented by divisions, as desired by the president.2-a. As a result of a marketing study, the president believes that sales in the West Division could be increased by 14% if monthly advertising in that division were increased by $29,000. Calculate the incremental net operating income.2-b. Would you recommend the increased advertising?
Answer:
Required 1.
Contribution format income statement
East Central West
Division Sales $434,000 $650,000 $500,000
Less Variable Expenses ($230,020) ($130,000) ($250,000)
Controllable Contribution $203,980 $520,000 $250,000
Less Controllable Fixed Costs :
Traceable fixed expenses ($261,000) ($357,000) ($204,000)
Controllable Profit/(Loss) ($57,020) $163,000 $46,000
Required 2.
2a. Calculation of Incremental Net Income - West Division
Incremental Sales ($500,000 × 14%) $70,000
Less Incremental Variable Expenses ($29,000)
Incremental Contribution $41,000
Less Incremental Fixed Expenses $0
Incremental Net Income/ (loss) $41,000
2b. Recommendation
Yes. The Increase in advertising is bringing a positive contribution towards the Company`s loss.
Explanation:
The Company`s loss will reduce by $41,000 to ($56,020) due to increase in advertising.
For each of the following scenarios, indicate whether we would use time series or cross-sectional data.
ITEMS
A. TO DETERMINE IF ENROLLMENT IN HIGHER EDUCATION IS INCREASING.
B. TO COMPARE THE CURRENT PRICE OF A GALLON OF GASOLINE ACROSS DIFFERENT GAS STATIONS IN LOS ANGELES, CA.
C. TO SEE IF THERE ARE DIFFERENCES IN THE AVERAGE NUMBER OF CALORIES CONTAINED IN SCHOOL LUNCHES SERVED IN EACH OF THE FIFTY STATES ON DECEMBER 1, 2015.
D. TO COMPARE THE INSECT POPULATION IN A GEOGRAPHIC REGION BEFORE AND AFTER AN INSECTICIDE WAS APPLIED.
Answer:
A. Time-Series data
B. Cross-sectional data
C. Cross-sectional data
D. Time-Series data
Explanation:
For Your Understanding:
If the time period is single then use Cross-sectional data.
If their are multiple time periods then use time-series.
A. To determine whether or not the enrollment in higher education is increasing we will use time-series data because enrollment of students is a periodical event and occurs every year. So this means periodic study would be better with time-series data.
B. For comparing the current price of a gallon of gasoline across different gas stations in Los Angeles, CA: we are considering prices in a single time period. Thus the we will use cross-sectional data.
C. For finding see any differences in the average number of calories contained in school lunches served in each of the fifty states on December 1, 2015: we are considering a single time period. Thus we will use here cross-sectional data.
D. To find out the insect population and comparing them with insect population in a geographic region before and after insecticide was used: we will consider two time periods. As the time periods are more than one, hence we will use time-series data here.
Portions of the financial statements for Peach Computer are provided below.
PEACH COMPUTER
Income Statement
For the year ended December 31, 2021
Net sales $1,800,000
Expenses:
Cost of goods sold $1,050,000
Operating expenses 560,000
Depreciation expense 50,000
Income tax expense 40,000
Total expenses 1,700,000
Net income $100,000
PEACH COMPUTER
Selected Balance Sheet Data
December 31
2021 2020 Increase (I) or Decrease (D)
Cash $102,000 $85,000 $17,000 (I)
Accounts receivable 45,000 49,000 4,000 (D)
Inventory 75,000 55,000 20,000 (I)
Prepaid rent 3,000 5,000 2,000 (D)
Accounts payable 45,000 37,000 8,000 (I)
Income tax payable 5,000 10,000 5,000 (D)
Required:
Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method.
Answer:
Net cash flows from Operating activities = $139,000
Explanation:
Statement of Cash Flows
Cash-flows from Operating activities
Net income for the year $100,000
Adjustment for non-cash effects
Depreciation expenses $50,000
Decrease in Accounts receivables $4,000
Increase in Inventory -$20,000
Decrease in Prepaid rent $2,000
Increase in Accounts payable $8,000
Decrease in Income tax payable -$5,000 $39,000
Net cash flows from Operating activities $139,000
Present and future value tables of $1 at 3% are presented below:
N FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1
1 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000
2 1.06090 0.94260 2.0300 1.91347 2.0909 1.97087
3 1.09273 0.91514 3.0909 2.82861 3.1836 2.91347
4 1.12551 0.88849 4.1836 3.71710 4.3091 3.82861
5 1.15927 0.86261 5.3091 4.57971 5.4684 4.71710
6 1.19405 0.83748 6.4684 5.41719 6.6625 5.57971
7 1.22987 0.81309 7.6625 6.23028 7.8923 6.41719
8 1.26677 0.78941 8.8923 7.01969 9.1591 7.23028
9 1.30477 0.76642 10.1591 7.78611 10.4639 8.01969
10 1.34392 0.74409 11.4639 8.53020 11.8078 8.78611
11 1.38423 0.72242 12.8078 9.25262 13.1920 9.53020
12 1.42576 0.70138 14.1920 9.95400 14.6178 10.25262
13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400
14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496
15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607
16 1.60471 0.62317 20.1569 12.56110 20.7616 12.93794
You want to invest $20,000 today to accumulate $22,500 to buy a car. If you can invest at an interest rate of 3% compounded annually, how many years will it take to accumulate the required amount?
Answer:
binder: Liquid substance used in paint and other media to bind particles of pigment together.
fresco: Where pigments are mixed with water and then applied to a plaster support, usually a wall or a ceiling.
gouache: A type of watercolor in which white pigment is added creating a duller effect, and a tinted feel.
oil: Painting medium where pigments are binded using oils, usually linseed oil.
painting media: Material made of three components; pigment,vehicle, and binder
pigment: Ground up solids that contain color the color in paint.
tempera: A water based painting medium made with egg yolk, often used to paint frescos and panels.
vehicle: Adjusts the viscosity of the paint.
watercolor: Pigment that is mixed with arabic and gum, and mostly water before it is applied to the paper.
Painting Media
Direct Instruction Active
Highlighter
CyanMagentaGreeenClear Highlights
Headphones
Explanation:
On June 30, 2021, Georgia-Atlantic, Inc. leased a warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $464,149 over a four-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2021. Georgia-Atlantic's incremental borrowing rate is 8%, the same rate IC uses to calculate lease payment amounts. Amortization is recorded on a straight-line basis at the end of each fiscal year. The fair value of the equipment is $3.2 million. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required:1. Determine the present value of the lease payments at June 30, 2021 that Georgia-Atlantic uses to record the right-of-use asset and lease liability.2. What pretax amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2021?3. What pretax amounts related to the lease would Georgia-Atlantic report in its income statement for the year ended December 31, 2021?(For all requirements, enter your answers in whole dollars and not in millions. Round your final answers to the nearest whole dollar.)
Answer:
A) = $3,249,995
B) pretax amount for for liability = $2,433,131
Depreciation amount for right of use = = $406,249
C) pretax amount for interest expense = $111,434
pretax amount for amortization expense = $406,249
Explanation:
1) Determining the present value of the lease payments at June 30 2021
semi-annual payments = $464149 for 4 - year lease term
total payments = 2 * 4 = 8
Yearly incremental borrowing = 8%
semi-annual incremental borrowing = 8/2 = 4%
hence present value of the lease payments
= semi annual lease payments * cumulative PV factor of annuity for the period
= $464149 * 7.00205 = $3,249,995
2) Determining The pretax amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31 2021
first we calculate the pretax amount of liability on 30.06.2021
= present value of lease payments - semi annual lease payments
= $3,249,995 - $464,149 = $2,785,846
next we calculate the Interest expense for 31.12.2021
= pretax amount * semi-annual incremental borrowing
= $2,785,846 * 4% = $111,434
Semiannual lease payment on 31.12.2021 = semiannual lease payment on 30.06.2021 which is = $464,149
Pre tax amount for liability for 31.12.2021
= pretax amount of liability + interest expense - semi annual lease payment
= $2,785,846 + $111,434 - $464,149 = $2,433,131
Depreciation on right to use assets for 2021
= present value of lease payments / 4 * ( 6/12 )
= ($3,249,995 / 4) * (6/12) = $406,249
Pre tax amount of right to use asset to be reported for 2021
= (present value of lease payments) - (depreciation on right to use assets)
= $3,249,995 - $406,249 = $2,843,746
3) Determine pretax amounts related to the lease would Georgia-Atlantic report in its income statement for the year ended December 31, 2021
Pre tax amount of interest expense Georgia Atlantic Inc. reports in its income statement will be
semi-annual lease payments * semi-annual incremental borrowing
= $2,785,846 * 4% = $111,434
Pre tax amount of amortization expenses Georgia Atlantic Inc. reports in its income statement will be
= (present value of lease payments / 4) * (6/12)
= $3,249,995 / 4 * 6/12 = $406,249
PLS HELP!!!!
1. Based on the profit-loss statement, does Rings and Things have a positive or negative cash flow?
Why?
Based on the profit loss statement rings and things has a negative cash flow because they're not
operating activities is not breaking even and they are losing money.
2. Based on the profit-loss statement, name two ways Janet and Omar can improve their cash flow.
3. Omar and Janet decide to revise their budget for Rings and Things. What suggestions about labor
costs would you make, if the goal is to improve the business's cash flow?
4. Omar and Janet are also trying to forecast what their federal and state income taxes will at the end
of the year. If Rings and Things had a negative cash flow of $150.00 per month from January
through April, but a positive cash flow of $1,000.00 per month (after expenses) from May through
December, on what dollar amount will they determine their income taxes? What expenses could be
used for tax deductions?
Answer:
1. They have a negative cash flow.
Because their net operating activities is not breaking even, in other words, they are losing money.
2.Omar and Janet should reduce the budget for labor
The labor budget for Janet and Omar is $1000, approximately 57 percent of their total cost. Labor costs are 62 percent of the total income earned. This indicates that Janet and Omar's labor budget is on the upper side.
As a rule of thumb, labor should range between 25 to 35 percent of the totals costs. Another school of thought suggests that labor should not exceed 30 percent of total revenue. For Janet and Omar to be profitable, they must revise their budget downwards. The ideal labor cost should be below $400.
3. Review labor costs downwards.
4. They will determine their income taxes based on their positive cash flow of $1,000.00 per month. This is because this cash flow spans across more months than their negative cash flow of -$150.00 per month. Expenses that could be used for their tax deductions is sales tax.
Answer:They have a negative cash flow.
Because their net operating activities is not breaking even, in other words, they are losing money
Explanation:
hope this helped!
The following is selected information from Bonita Corporation for the fiscal year ending October 31, 2018
Cash received from customers $301000
Revenue recognized 376000
Cash paid for expenses 184000
Cash paid for computers on November 1, 2017 that will be used for 3 years (annual depreciation is $16100) 48300
Expenses incurred, including interest, but excluding any depreciation 218000
Proceeds from a bank loan, part of which was used to pay for the computers 95000
Based on the accrual basis of accounting, what is Monty Corporation’s net income for the year ending October 31, 2018?
Answer:
Net Income = $141,900
Explanation:
Accrual Basis of Accounting
Net income of Monty Corporation’s for the
year ending October 31, 2018
Particulars Amount
Revenue recognized $376,000
Less: Expenses incurred, including interest, $218,000
but excluding any depreciation
Depreciation $16,100
Net Income $141,900
Discuss MSOs corporate governance. Has the company been able to separate the ownership and managerial control
Answer:
The corporate governance of Martha Stewart Living Omnimedia MSO has failed.
Explanation:
The reason for failure of corporate governance at MSO was the lack of transparency. The owner of the company was the largest shareholder. There was lack of separation of ownership and control in the company. The management of the company has not been effective in managing the operations and there were lack of internal controls in place. The company has gone to produce lower category products such as cleaning fluid and so, this has lead the company to deteriorate its brand image.
A General Power bond carries a coupon rate of 8%, has 9 years until maturity, and sells at a yield to maturity of 7%. (Assume annual interest payments.) a. What interest payments do bondholders receive each year
Answer:
$80
Explanation:
The computation fo the amount of the interest payment that bondholders received each year is shown below:
= face value of the bond × coupon rate
= $1,000 × 8%
= $80
We assume the face value of the bond be $1,000
We simply applied the above formula
And, the same is to be considered
Jeremy Pruitt Ltd is considering the replacement of a delivery truck. The current truck could last for 3 more years. Operating costs are 5000 per year. We are currently depreciating it at 4000 per year. We could sell it at the end of the 3 years for 2000 with a book value of zero. If we purchase the new truck for 32000, we could use three year MACRS. We could sell the old truck now for 7000. Operating costs would drop to 1000 per year. We can sell the new truck for 15000 at the end of the 3rd year. Tax rate is 40%, WACC is 10%. Should we replace the truck?
Answer: NPV = - 4433
As the NPV of the replacement project is negative,
the truck should not be replaced.
Explanation:
0 1 2 3
Savings in operating costs (5000-1000): 4000 4000 4000
Incremental depreciation:-
Depreciation on the new truck 10666 14224 4739
Depreciation on the old truck 4000 4000 4000
Incremental depreciation 6666 10224 739
Incremental NOI -2666 -6224 3261
Tax at 40% -1066 -2490 1304
Incremental NOPAT -1599 -3734 1956
Add: Incremental depreciation 6666 10224 739
Incremental OCF 5066 6490 2696
Capital expenditure:-
Cost of new truck 32000
Less: After tax salvage value of old
NOTE THAT, the book value = 4000*3 =
$12,000 (depreciation per annum is 4000
and three years life is left for the old machine)
truck = 7000 + (12000-7000) × 40% = 9000
Net initial investment 23000
Incremental terminal salvage value:-
After tax salvage value of new
truck = 15000 - (15000-2371)× 40% = 9948
Less: After tax salvage value lost on old
truck = 2000 × (1 - 40%) = 1200
Incremental net residual value 8748
After tax annual cash flows -23000 5066 6490 11444
PVIF at 10% 1 0.90909 0.82645 0.75131
PV at 10% -23000 4606 5363 8598
NPV -4433
CONCLUSION:
As the NPV of the replacement project is negative,
the truck should not be replaced.
scope definition is among the first tasks that must happen in projects. how is project scope defined
Explanation:
Project scope could be defined as a concise foreknowledge of what work needs to be done in other to accomplish the objectives of a specific project.
Therefore, it may involve having answers to some of these question:
what do want to accomplish with this project?what are the requirements, skills, or tools needed for this project?how long would the project take to complete?how much would it cost to complete the project?who should do this task or that task?Consider the following information for stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.)
Stock Expected Return Standard Deviation Beta
A 8.50% 16% 0.8
B 9.50 16 1.2
C 10.50 16 1.6
Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 6.5%, and the market is in equilibrium. (That is, required returns equal expected returns.)
Required:
a. What is the market risk premium?
b. What is the beta of Fund P?
c. What is the required return of Fund P?
d. Would you expect the standard deviation of Fund P to be less than 15%, equal to 15% or greater than 15%? Explain.
Answer:
a. $2.5
b. 1.20
c. 9.5%
Explanation:
We can calculate the market risk premium and the required return according to the CAPM model by using the simple expected return formula given below. Average beta can be calculated by dividing the sum of all beta with the number of betas
(a) Computation of the market risk premium
According to the CAPM model
Expected Return = Risk-free rate of return + Beta (Risk premium )
8.50 = 6.5 + 0.8(Risk premium )
Risk Premium = (8.50 - 6.5) / 0.8
Risk Premium = $2.5
(b) Computation of the beta of Fund P.We have,
Average of beta = ( 0.8 + 1.2 + 1.6) / 3
Average of beta = 1.20
(c) Computation of the required return of Fund P
Required Return = Risk-free rate of return + Beta x Risk premium
Required Return = 6.5 + 1.20 (2.50 )
Required return = 9.5%
(d) If the correlation coefficient of the portfolio shall be 1. In this situation, unsystematic risk can not be diversified. So, The standard deviation of the fund P is equal to 15%.
If the correlation coefficient of the portfolio shall be a range of 0 to 1. In this situation, unsystematic risk can be a little bit diversified. So, The standard deviation of the fund P should be less than 15%.
The performance plan will include a section that identifies all of the following EXCEPT
Answer:
where are the choices please so I can help you
The Excellent Agency specializes in developing advertising campaigns for smaller retail clients. Excellent is hired by Shadowleaf Shoes, a small regional chain of six shoe stores, to develop a slogan and specific ads to be used in a three-month newspaper campaign. Shadowleaf’s marketing director, Manuel Margolis, is adamant while meeting with Excellent's account executive, Kia Chin, that the campaign must be catchy and modern to appeal to a target audience that has an active lifestyle and is between the ages of 18 and 35. More importantly, Margolis wants the slogan to be memorable and unique. Kia Chin, representing Excellent, develops a campaign and presents it to Margolis. The campaign is based on the slogan "Do What You Do in a Shadowleaf Shoe." Visuals depict men’s legs—different sizes, skin colors, etc.—walking, jogging, dancing, and otherwise moving in every type of Shadowleaf’s shoes. Margolis feels that this campaign will target young male consumers, but will also get the attention of others regarding the comfort of the shoes, raising awareness of the Shadowleaf brand. After running the ads, the Excellent Agency wins an advertising effectiveness award. It seems that the surprising and appealing visuals gave the slogan unexpectedly positive social meaning for people of all ages, not just men aged 18 to 35. When Manuel Margolis insists on a measuring stick for the creativity of the campaign, what will the Xcellent Agency tell him, if Kia Chin is smart?
A. "The award alone proves that this ad is loaded with creativity."
B. "If people like the ad, they’ll buy the product."
C. "We met the technical standards for this advertising effort."
D. "Great brands do more than just get attention, they make emotional connections."
Answer:
D. "Great brands do more than just get attention, they make emotional connections."
Explanation:
In the given scenario the aim of Manuel Margolis was to catch attention of clients aged 18 - 35 years. However Kia Chin developed campaign is based on the slogan "Do What You Do in a Shadowleaf Shoe." Visuals depict men’s legs—different sizes, skin colors, etc.—walking, jogging, dancing, and otherwise moving in every type of Shadowleaf’s shoes. After running the ads, the Excellent Agency wins an advertising effectiveness award.
This initiative created an emotional connection with the customer where the visuals attracted them and the comfort of Shadowleaf shoes made them loyal customers.
So the best statement Kia Chin can tell Manuel is "Great brands do more than just get attention, they make emotional connections."
12.
Planning is a
a. Useless Function
b. Obsolete Concept
c. Mental Exercise
d. One time process
In its first year of operations, Pharoah Company recognized $34,000 in service revenue, $8,100 of which was on account and still outstanding at year-end. The remaining $25,900 was received in cash from customers. The company incurred operating expenses of $17,100. Of these expenses, $12,940 were paid in cash; $4,160 was still owed on account at year-end. In addition, Pharoah prepaid $2,780 for insurance coverage that would not be used until the second year of operations.
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.
Cash Basis Accrual Basis
Net Income $enter net income in dollars $enter net income in dollars
Answer:
Cash Basis =$10,180
Accrual Basis=$16,900
Explanation:
Calculation for the net earnings under the cash basis and accrual basis of accounting
CASH BASIS
Cash Basis: $25,900 - $12,940 -$2,780
Cash Basis =$10,180
ACCRUAL BASIS
Accrual Basis: $34,000 - $17,100
Accrual Basis=$16,900
Therefore the net earnings under the cash basis and accrual basis of accounting are:
Cash Basis =$10,180
Accrual Basis=$16,900
be5-4, Prepare the journal entries to record the following transactions on Novy Company’s books using a perpetual inventory system. (a) On March 2, Novy Company sold $900,000 of merchandise to Opps Company, terms 2/10, n/30. The cost of the merchandise sold was $590,000. (b) On March 6, Opps Company returned $90,000 of the merchandise purchased on March 2. The cost of the returned merchandise was $62,000. (c) On March 12, Novy Company received the balance due from Opps Company.
be5-5, From the information in BE5-4, prepare the journal entries to record these trans- actions on Opps Company’s books under a perpetual inventory system.
Answer:
a: March 2
Dr Accounts Receivable 900,000
Cr Sales Revenue 900,000
March 2
Dr Cost of Good Sold 590,000
Cr Inventory 590,000
b. March 6
Dr Sales Returns and Allowances 90,000
Cr Accounts Receivable 90,000
March 6
Dr Inventory 62,000
Cr Cost of Goods Sold 62,000
c. March 12
Dr Cash 793,800
Dr Sales Discount 16,200
Cr Accounts Receivable 810,000
Explanation:
Preparation of Journal entries using a perpetual inventory system
a. March 2
Dr Accounts Receivable 900,000
Cr Sales Revenue 900,000
(To record sale of merchandise)
March 2
Dr Cost of Good Sold 590,000
Cr Inventory 590,000
b. March 6
Dr Sales Returns and Allowances 90,000
Cr Accounts Receivable 90,000
(To record sale of merchandise)
March 6
Dr Inventory 62,000
Cr Cost of Goods Sold 62,000
c. March 12
Dr Cash 793,800
(98%*810,000)
Dr Sales Discount 16,200
(2%*810,000)
Cr Accounts Receivable 810,000
(900,000-90,000)
A: March 2
Dr assets 900,000
Cr Sales Revenue 900,000
March 2
Dr Cost of excellent Sold 590,000
Cr Inventory 590,000
B. March 6
Dr Sales Returns and Allowances 90,000
Cr assets 90,000
March 6
Dr Inventory 62,000
Cr Cost of products Sold 62,000
C. March 12
Dr Cash 793,800
Dr Sales Discount 16,200
Cr assets 810,000
Journal entriesPreparation of Journal entries employing a perpetual inventory system
A. March 2
Dr assets 900,000
Cr Sales Revenue 900,000
(To record sale of merchandise)
March 2
Dr Cost of fine Sold 590,000
Cr Inventory 590,000
B. March 6
Dr Sales Returns and Allowances 90,000
Cr assets 90,000
(To record sale of merchandise)
March 6
Dr Inventory 62,000
Cr Cost of products Sold 62,000
C. March 1
Dr Cash 793,800
(98%*810,000)
Dr Sales Discount 16,200
(2%*810,000)
Cr assets 810,000
[tex](900,000-90,000)[/tex]
Find out more information about Journal entries here:
https://brainly.com/question/8913038
Lane Stevens is to retire from the partnership of Stevens and Associates as of March 31, the end of the current fiscal year. After closing the accounts, the capital balances of the partners are as follows: Lane Stevens, $150,000; Cherrie Ford, $70,000; and LaMarcus Rollins, $60,000. They have shared net income and net losses in the ratio of 3:2:2. The partners agree that the merchandise inventory should be increased by $22,300 and the allowance for doubtful accounts should be increased by $1,300. Stevens agrees to accept a note for $100,000 in partial settlement of his ownership equity. The remainder of his claim is to be paid in cash. Ford and Rollins are to share equally in the net income or net loss of the new partnership.
a. Journalize the entry to record the adjustment of the assets to bring them into agreement with current market prices.
b. Journalize the entry to record the withdrawal of Stevens from the partnership.
Answer: See attachment
Explanation:
a. Journalize the entry to record the adjustment of the assets to bring them into agreement with current market prices.
The journal entry has been prepared and attached.
b. Journalize the entry to record the withdrawal of Stevens from the partnership.
The journal entry has been prepared and attached.
A machine with a useful life of six years and a residual value of $3,000 was purchased at the beginning of year 1 for $30,000. The machine was sold for $15,000 on April 1 in year 4. a. What was the book value of the machine at the end of year 3 assuming the straight-line method of depreciation is used
Answer:
Book value= $16,500
Explanation:
Giving the following information:
Useful life= 6 years
Purchase value= $30,000
Residual value= $3,000
First, we need to calculate the annual depreciation using the straight-line method:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (30,000 - 3,000) / 6
Annual depreciation= $4,500
Now, the accumulated depreciation at the end of year 3:
Accumulated depreciation= 3*4,500= $13,500
Finally, the book value:
Book value= purchase price - accumulated depreciation
Book value= 30,000 - 13,500
Book value= $16,500
A pie graph uses _________to represent information. a. Lines c. Odd numbers b. Dots d. Percentages
Answer:
the answer is D.
Explanation:
Builders Corporation (Builders) is a general contractor. Builders wished to bid on a construction project and solicited bids from a variety of subcontractors. Four electrical subcontractors, Alpha, Beta, Gamma, and Delta, submitted bids to Builders. The bids were as follows: Alpha- $75,000; Beta- $85,000; Gamma- $90,000; Delta- $95,000. As Builders was preparing its bid on the construction project based upon the low bid submitted by Alpha, Builders’ president called Alpha and told him, "We won’t be able to do it with your present bid, but if you can shave off $5,000, I’m sure that the numbers will be there for us to get that project." Alpha responded, "No way! In fact, that bid we submitted was based on a $15,000 error; we can’t do it for a cent less than $90,000." Nevertheless, Builders submitted its bid for the construction project using Alpha’s original $75,000 bid. Builders was not awarded the construction job and subsequently sued Alpha. Alpha is liable for:________.
Answer:
Alpha is liable for nothing.
Explanation:
Builders requested Alpha to make a discount (which is considered a counteroffer) but Alpha rejected it. At this point there was no valid offer anymore, and luckily for Builders, they lost the bid. Since a counteroffer invalidates an original offer, Alpha didn't have any type of obligation with Builders to perform at $75,000. The new price between them was $90,000, take it or leave it. Builder's president made a mistake when he made his counteroffer and if they had won the contract, then they would have needed to look at the other offers.
Builders asked Alpha for a discount, however, Alpha declined. At this moment, there's no longer a legitimate offer, as well as fortunately for Builders, they dropped the bid.
Because a counteroffer nullifies an earlier commitment, Alpha was under no duty to Contractors to execute at $75,000. They agreed on new pricing of $90,000, accept or reject it.This same president make mistake when before he submitted his counteroffer because if they will indeed have just been awarded the contract, they would've had to examine the other proposals.Thus the statement above is correct.
Learn more about the contract here:
https://brainly.com/question/20350854
20. Which one of the following statements about national income is correct?
O A. National income is the income earned by US resource suppliers plus taxes on production and imports.
O B. National income is the market value of the annual output net of consumption of fixed capital.
C. National income is the income received by households less personal taxes,
D. National income is the before-tax income received by households.
Answer:
national income is the income received by households less personal taxes,,
When your roommate does not consider your external costs in the absence of external costs from playing music, the number of hours played is
Answer:
the number of hours music played is too high
Explanation:
When the roommate does not consider the external cost in absence of external benefit then the hours of music played is too high. The roommate has bought the expensive stereo system so his marginal benefit is lower than the marginal costs. The marginal benefit will equal to the marginal cost when the stereo system is played for many hours.
i dont have to pay for this right?
Answer:
no
Explanation:
Darden Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 21,400 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $24,700. An additional 101,000 units were started into production during the month. There were 34,000 units in the ending work in process inventory of the Welding Department that were 70% complete with respect to conversion costs. A total of $853,880 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:_______
a. $8.486
b. $9.965
c. $8.738
d. $9.200
Answer:
$7.830
Explanation:
Calculation for the cost per equivalent unit for conversion costs for the month
First step is to compute for the Unit transferred out =
Unit transferred out = 21,400+101,000-34,000
Unit transferred out = 88,400
Second step is to compute for the Equivalent unit of conversion
Equivalent unit of conversion = 88,400+(34,000*70%)
Equivalent unit of conversion = 88,400+23,800
Equivalent unit of conversion = 112,200
Last step is to compute for the Cost per equivalent unit of conversion
Cost per equivalent unit of conversion = (24,700+853,880)/112,200 = 7.931
Cost per equivalent unit of conversion = 878,580/112,200
Cost per equivalent unit of conversion = $7.830
Therefore the cost per equivalent unit for conversion costs for the month is closest to $7.830
Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Overhead
Measures Cost Product Z9 Product N0 Total
Labor-related DLHs $328,018 6,800 3,400 10,200
Product testing tests 47,747 600 700 1,300
Order size MHs 473,108 4,400 4,700 9,100
$848,873
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:______.
a. $28.88 per DLH.
b. $48.81 per DLH.
c. $53.94 per DLH.
d. $431.44 per DLH.
Answer:
Privott, Inc.
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:______.
$32.16
Explanation:
a) Data and Calculations:
Estimated Expected Activity
Activity Overhead
Measures Cost Product Z9 Product N0 Total
Labor-related DLHs $328,018 6,800 3,400 10,200
Product testing tests 47,747 600 700 1,300
Order size MHs 473,108 4,400 4,700 9,100
$848,873
The activity rate for the Labor-Related activity cost pool:
= Labor Overhead Cost divided by Total Direct Labor Hours
= $328,018/10,200
= $32.16
Forest Components makes aircraft parts. The following transactions occurred in July. Purchased $16,950 of materials on account. Issued $16,780 in direct materials to the production department. Issued $1,340 of supplies from the materials inventory. Paid for the materials purchased in transaction (1) using cash. Returned $2,020 of the materials issued to production in (2) to the materials inventory. Direct labor employees earned $32,500, which was paid in cash. Purchased miscellaneous items for the manufacturing plant for $17,250 on account. Recognized depreciation on manufacturing plant of $36,700. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $434,600. Estimated overhead for the year was $412,870. The following balances appeared in the inventory accounts of Forest Components for July.
Beginning Ending
Materials Inventory ? $12,490
Work-in-Process Inventory ? 10,560
Finished Goods Inventory $2.700 6.930
Cost of Goods Sold ? 75,1000
a. Prepare Journal Entries to record these transactions (1-9)
b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold
Answer:
Forest Components
Journal Entries:
1. Debit Materials Inventory $16,950
Credit Accounts Payable $16,950
To record the purchase of materials on account.
2. Debit Work in Process Inventory $16,780
Credit Materials Inventory $16,780
To record the issue of materials to the production department.
3. Debit Manufacturing Overhead $1,340
Credit Materials Inventory $1,340
To record the issue of materials to the service department.
4. Debit Accounts Payable $16,950
Credit Cash Account $16,950
To record the payment for the materials purchased on account.
5. Debit Materials Inventory $2,020
Credit Work In Process $2,020
To record the record of materials.
6. Debit Work in Process $32,500
Credit Factory Wages $32,500
To record the direct labor cost.
7. Debit Manufacturing Overhead $17,250
Credit Accounts Payable $17,250
To record the purchase of miscellaneous items for the plant.
8. Debit Manufacturing Overhead $36,700
Credit Depreciation Expense $36,700
To record depreciation expense on manufacturing plant.
9. Debit Work In Process $30,875
Credit Manufacturing Overhead $30,875
To apply overhead for the month.
b. T-accounts:
Materials Inventory
Accounts Titles Debit Credit
Balance $12,320
Accounts Payable $14,930
Work in Process 2,020
Work in Process Inventory $16,780
Balance $12,490
Work-in-Process Inventory
Accounts Titles Debit Credit
Balance $11,755
Materials Inventory 16,780
Materials Inventory $2,020
Factory Wages 32,500
Overhead 30,875
Finished Goods Inventory 79,330
Balance 10,560
Manufacturing Overhead
Accounts Titles Debit Credit
Materials Inventory $1,340
Accounts Payable 17,250
Depreciation Expense 36,700
Work In Process $30,875
Finished Goods Inventory
Accounts Titles Debit Credit
Balance $2,700
Work in Process 79,330
Cost of goods sold 75,100
Balance $6,930
Cost of Goods Sold
Accounts Titles Debit Credit
Finished Goods 75,100
Explanation:
a) Data and Calculations:
Materials Inventory ? $12,490
Work-in-Process Inventory ? 10,560
Finished Goods Inventory $2,700 6,930
Cost of Goods Sold ? 75,1000
Predetermined overhead rate = $412,870/$434,600 = $0.95
Overhead applied = $30,875 ($0.95 * $32,500)