ABC Manufacturing Inc. ends the month with two jobs still in progress. Job 5 has $10,000 of materials, $2,000 of direct labor and $8,000 of manufacturing overhead allocated. Job 6 has $30,000 of materials, $2,000 of direct labor and $12,000 of manufacturing overhead allocated. The cost of goods sold for the month was $40,000 and there was no finished goods in stock as the month ended. If the manufacturing overhead was underallocated by $10,000, which of the following choices would be the correct way to prorate it based on ending balances before proration?

a. Job 6 should be allocated another​ $6,000 of cost
b. Job 5 should be allocated another​ $6,000 of cost
c. Cost of goods sold should be reduced by​ $4,000
d. Cost of goods sold should be increased by​ $4,000

Answer:

B. ​$6,150 of the underallocated manufacturing overhead should be allocated to​ work-in-process

Explanation:

Calculation to determine what would be the correct way to prorate it based on ending balances before proration

First step is to calculate the Balance of work in process before proration

Balance of work in process before proration= ($10,000 + $2,000 + $8,000) + ($30,000 + $2,000 + $12,000)

Balance of work in process before proration= $64,000

Now let calculate the Underallocated overhead to be allocated to WIP

Underallocated overhead to be allocated to WIP= $10,000 * $64,000 / ($64,000+$40,000)

Underallocated overhead to be allocated to WIP = $10,000 * $64,000 / $104,000

Underallocated overhead to be allocated to WIP = $6,150

Therefore Based on the above calculation what would be the correct way to prorate it based on ending balances before proration is that $6,150 of the underallocated manufacturing overhead should be allocated to​ work-in-process

Sheridan Company uses a periodic inventory system. Details for the inventory account for the month of January, 2020 are as follows: Units Per unit price Total Balance, 1/1/20 200 $5.00 $1000 Purchase, 1/15/20 120 5.40 648 Purchase, 1/28/20 120 5.50 660 An end of the month (1/31/20) inventory showed that 160 units were on hand. If the company uses FIFO and sells the units for $8 each, what is the gross profit for the month

This activity is important because marketing students should be aware of career opportunities in sales, how sales people create value for customers, and how the sales function contributes to the overall success of the organization.
Mark will be a junior in college this fall, but is undecided about his major. Over the summer, he visited with an old family friend, Brad Donavan, who has had a lengthy and successful career selling business software and services. He suggests that sales might be a great match for Mark’s personality, interests, and lifestyle. Mark is encouraged and begins looking at job listings and responsibilities associated with various types of sales positions advertised in his area.
The goal of this exercise is to assist Mark by categorizing each of the eight (8) listed job descriptions into one of five sales job category types: (1) new business salesperson, (2) order-taker, (3) missionary salespeople, (4) sales management and support, and (5) other.
Select the appropriate sales job category for each example.
2. The goal of the Channel Sales Manager (CSM) position is to create and manage successful revenue-generating relationships with reseller partners who affect the movement of our products to end user customers.
(Click to select) New Business Salespeople Order-Takers Missionary Salespeople Sales Management and Support Other
4. A primary responsibility of the Route Sales Representative will be to drive a company vehicle to deliver coffee, tea, and other products to customers in assigned territory.
(Click to select) New Business Salespeople Order-Takers Missionary Salespeople Sales Management and Support Other
8. The Key Account Manager is responsible for nurturing key customer relationships and the development of account-specific promotional activities.
(Click to select) New Business Salespeople Order-Takers Missionary Salespeople Sales Management and Support Other

Determine if the given people are demanders, suppliers, or not involved in the market for loanable funds. a. Latisha wants to save up for a new laptop to use in her business, so she puts aside $100 a month in a bank account until she can save up for it. Latisha is in the market for loanable funds. b. Gerardo borrows $30,000 from his local bank for a new addition to his warehouse. Gerardo is in the market for loanable funds. c. Dana buys $1,200 of stocks every year in her IRA. Dana is in the market for loanable funds.

You've graduated from college and are now working in an investment firm where you advise clients on investment decisions. Here is the information on a proposed project. Up-front cost: $300,000 Next year's revenue: $15,000 Real interest rate: 8% Depreciation rate: 10% How much profit does the project yield, and should your client invest in the project

Shining Cookie Company, Inc., in Murfreesboro, TN bought a new ice cream maker at the beginning of the year at a cost of $12,000. The estimated useful life was four years, and the residual value was $960. Assume that the estimated productive life of the machine was 9,200 hours. Actual annual usage was 3,680 hours in year 1; 2,760 hours in year 2; 1,840 hours in year 3; and 920 hours in year 4.
Required:
1. Complete a separate depreciation schedule for each of the alternative methods. (Do not round intermediate calculations.)
a. Straight-line.
b. Units-of-production (use four decimal places for the per unit output factor).
c. Double-declining-balance.

1. Suppose two types of firms wish to borrow in the bond market. Firms of type A are in good financial health and are relatively low risk. The appropriate premium over the risk-free rate of lending to these firms is 2%. Firms of type B are in poor financial health and are relatively high risk. The appropriate premium over the risk-free rate of lending to these firms is 6%. As an investor, you have no other information about these firms except that type A and type B firms exist in equal numbers. a. At what interest rate would you be willing to lend if the risk-free rate were 5%

Services Marketing Differs from Product Marketing
Two national firms, the Prestige Hotel and Pro Fitness chains, strive to deliver quality service to their customers. To do so, they address the four core differences between services and goods. In the following scenario, you will be asked to categorize statements about the customer's experiences and the firm's marketing efforts by the core difference they represent.
Economies of developed countries like the United States have become increasingly dependent on services. For example, service industries like retail and information services account for about two-thirds of the U.S. gross domestic product (GDP) and the lion's share of U.S. jobs. The marketing of services differs from goods marketing because of the four fundamental ways in which services differ from goods: they are intangible, inseparable, variable, and perishable.
You will be shown eight statements describing customer experiences and marketing efforts. Read each statement and categorize the item according to the difference between goods and services that it represents by placing the letter of the item in the correct box in the table below.
Customer Experience Marketing Efforts
Intangibility
Inseparability
Preishability
Variability
a. Hotel Stay
b. Use guest pass
c. Hard to convey value
d. Uses Flexipass
e. Satisfaction guarantee?
f. Off-peak rates
g. Managing staff
h. Conflicting experiences

A businessperson is setting up a new automatic car wash and is choosing between two fully automated machines. The first machine can process up to 2,000 cars per month at a marginal cost of $1 per car. The second machine can also process up to 2,000 cars per month but at a marginal cost of $0.50 per car. The monthly lease for the machine with the higher marginal cost is $1,200. The monthly lease for the machine with the lower marginal cost is $1,590 The car wash can sell car washes for $8 per car. 1. Suppose the businessperson chooses to lease the machine with the higher marginal cost for the first month and does indeed wash 2,000 cars that month. The businessperson earned profits of____________ $ in the first month. 2. Suppose now the businessperson chooses to lease the machine with the lower marginal cost for the second month and again washes 2,000 cars that month. The businessperson earned profits of __________$ in the second month. 3. The car wash would have to wash ____________cars or more per month in order to justify paying the higher-priced machine lease.

Assume Purity Ice Cream Company, Inc., in Ithaca, NY, bought a new ice cream maker at the beginning of the year at a cost of $9,000. The estimated useful life was four years, and the residual value was $1,000. Assume that the estimated productive life of the machine was 16,000 hours. Actual annual usage was 5,500 hours in Year 1; 3,800 hours in Year 2; 3,200 hours in Year 3; and 3,500 hours in Year 4.
Required:
Complete a separate depreciation schedule for each of the alternative methods.
A. Straight-line.
B. Units-of-production (use four decimal places for the per unit output factor).
C. Double-declining-balance.

On May 7, Hatch Company purchased on account 490 units of raw materials at $20 per unit. During May, raw materials were requisitioned for production as follows: 211 units for Job 200 at $16 per unit and 186 units for Job 305 at $20 per unit.Journalize the entry on May 7 to record the purchase. If an amount box does not require an entry, leave it blank. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTSBergan CompanyGeneral Ledger
ASSETS
110 Cash
121 Accounts Receivable
125 Notes Receivable
126 Interest Receivable
131 Materials
132 Work in Process
133 Factory Overhead
134 Finished Goods
141 Supplies
142 Prepaid Insurance
143 Prepaid Expenses
181 Land
191 Factory
192 Accumulated Depreciation-Factory
LIABILITIES
210 Accounts Payable
221 Utilities Payable
231 Notes Payable
236 Interest Payable
241 Lease Payable
251 Wages Payable
252 Consultant Fees Payable
EQUITY
311 Common Stock
340 Retained Earnings
351 Dividends
390 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Wages Expense
531 Selling Expenses
532 Insurance Expense
533 Utilities Expense
534 Office Supplies Expense
540 Administrative Expenses
560 Depreciation Expense-Factory
590 Miscellaneous Expense
710
Interest Expense
Journalize the entry on May 7 to record the purchase and on May 31 to record the requisition from the materials storeroom. Refer to the Chart of Accounts for exact wording of account titles.

When happens when demand exceeds supply?

In an economy with no government and no foreign sector, autonomous consumer spending is $250 billion, planned investment spending is $350 billion, and the marginal propensity to consume is 2/3. What is the income-expenditure equilibrium GDP (i.e. Y*)

Question 2 (Multiple Choice Worth 5 points)
(05.02 LC)
The smallest, most local type of economy is a
O market economy
O traditional economy
O mixed economy
command economy

Ben and Molly are married and will file jointly. Ben generates $300,000 of qualified business income from his single-member LLC (a law firm). He reports his business as a sole proprietorship. Wages paid by the law firm amount to $40,000; the law firm has no significant property. Molly is employed as a tax manager by a local CPA firm. Their modified taxable income is $386,600 (this is also their taxable income before the deduction for qualified business income). Determine their allowable QBI deduction for 2020. $fill in the blank 1

Assume that Simple Co. had credit sales of $248,000 and cost of goods sold of $148,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $2, 800. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $230. What amount of Bad Debt Expense would the company record as an end-of-period adjustment?

Fuqua Company’s sales budget projects unit sales of part 198Z of 10,000 units in January, 12,000 units in February, and 13,000 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $2 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2019.

Requried:
a. Prepare a projected budget for Jan and Feb 2017.
b. Prepare a direct material budget for Jan 2017.

what effect does a rise in fuel prices have on product prices​

Jamison Company purchased the assets of Booker Company at an auction for $5,600,000. An independent appraisal of the fair value of the assets is listed below: Land $1,900,000 Building 2,800,000 Equipment 2,100,000 Trucks 3,400,000 Assuming Jamison allocates the purchase price on the basis of the relative fair values, what amount would be allocated to the Trucks?

A company normally sells it products for $20 per unit, which includes a profit margin of 25%. However, the

selling price has fallen to $15 per unit. This company's current inventory consists 200 units purchased at $16

per unit. Replacement cost has now fallen to $13 per unit. Calculate the value of inventory at the lower of

cost or market. ​

You have been given the following information about the production of Horatio Co., and are asked to provide the plant manager with information for a meeting with the vice president of operations.Standard Cost CardDirect materials (7 pounds at $4 per pound) $28.00Direct labor (0.8 hours at $7) 5.60Variable overhead (0.8 hours at $4 per hour) 3.20Fixed overhead (0.8 hours at $8 per hour) 6.40$43.20The following is a variance report for the most recent period of operations.VariancesCosts Total Standard Cost Price QuantityDirect materials $405,900 $6,577 F $9,660Direct labor 81,178 5,670 U 7,060 U(a) How many units were produced during the period? (Round answers to 0 decimal places, e.g. 125.)(b) How many pounds of raw material were purchased and used during the period? (Round answers to 0 decimal places, e.g. 125.)(c) What was the actual cost per pound of raw materials? (Round to 2 decimal places, e.g. 1.25.)(d) How many actual direct labor hours were worked during the period? (Round answers to 0 decimal places, e.g. 125.)(e) What was the actual rate paid per direct labor hour? (Round to 2 decimal places, e.g. 1.25.)

Southern Fields has an inventory of 838,000 pounds of sugar. The firm placed a partial hedge on this inventory by selling 6 futures contracts at 9.56. The futures contracts are based on 112,000 pounds and are quoted in cents per pound. At the time the firm sold the sugar, the spot rate was 9.63. How much profit did the firm lose because of the hedge

Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations:Selling price $ 122Units in beginning inventory 290Units produced 6,600Units sold 6,590Units in ending inventory 300Variable costs per unit:Direct materials $ 42Direct labor $ 26Variable manufacturing overhead $ 2Variable selling and administrative expense $ 21Fixed costs:Fixed manufacturing overhead $ 151,800Fixed selling and administrative expense $ 46,130The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.Required:a. Prepare a contribution format income statement for the month using variable costing.b. Prepare an income statement for the month using absorption costing.

I tell you that if you rake all the leaves in my yard, I will show up to Business Law class next week. You immediately come over and start raking the leaves. Halfway through the job you decide to leave to do some extra Business Law reading for fun. I run after you and say, "you didn’t finish, I will sue you for this!" Your best defense is:

Current Attempt in Progress Nash's Trading Post, LLC developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value(LCNRV) basis in valuing inventories: Product Cost MarketA $84000 $89000 B 59000 56000 C 118000 120000 After Nash's Trading Post, LLC applies the LCNRV rule, the value of the inventory reported on the balance sheet would be:___________. a. $261000. b. $265000. c. $258000. d. $268000.

"Jack owns a local trucking company. With fuel costs being expensive, Jack wants to evaluate how much fuel, on average, he should store in his 6,800 gallon fuel tank. Each year Jack uses 68,000 gallons of diesel (usage is spread evenly throughout the year). Jack knows with certainly that he can have a load of fuel delivered in 5 days. The price of fuel is $2.04 per gallon and there is a separate $50 ordering fee per order. Jack thinks his holding cost per unit is 40%. If Jack orders at EOQ, what will be the average inventory of fuel in his 6,800 gallon tank?"

On January 1, 2019, Lightfoot Corporation issues 10%, 5-year bonds with a face value of $275,000 when the effective interest rate is 9%. Interest is to be paid semiannually on June 30 and December 31. Prepare calculations to prove that the selling price of the bonds is $285,880.07. Click here to access the tables to use with this exercise. Round your answers to two decimal places, if necessary.

Pension Plan Entries Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $182,100 for the quarter ended December 31. Journalize the entry to record the accrued pension liability payment to the funding agent on January 15.

A sales representative lives in Bloomington and must be in Indianapolis next Thursday. On each of the days Monday, Tuesday, and Wednesday, he can sell his wares in Indianapolis, Bloomington, or Chicago. From past experience, he believes that he can earn $12 from spending a day in Indianapolis, $16 from spending a day in Bloomington, and $17 from spending a day in Chicago. Where should he spend the first three days

Yoyodyne is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Yoyodyne is using ________ to generate new product ideas.

Prepare journal entries to record each of the following sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the gross method. Oct. 1 Sold fair trade merchandise for $2, 600, with credit teres n/30; invoice dated October 1. The cost of the nerchandise is $1,450 which had cost $145, is returned to inventory of the merchandise is $890 6 The customer in the October 1 sale returned $260 of fair trade merchandise for full credit. The merchandise, 9 Sold recycled leather merchandise for $1, 250, with credit terms of 1/10, n/30; invoice dated October 11 Received payment for the amount due from the October 1 sale less the return on 0ctober 6.