Answer:
Straight line depreciation Method
Year Depreciation Cumulative depreciation Net Book value
1. $2000 $2000 $7000
2 $2000 $4000 $5000
3 $2000 $6000 $3000
4. $2000 $8000 $1000
Unit of production
Year Depreciation Cumulative depreciation Net Book value
1 $2,750 $2750 $6250
2. $1,900 $4,650 $4,350
3. $1,600 $6,250 $2,750
4. $1,750 $8,000 $1,000
Double declining method
Year Depreciation Cumulative depreciation Net Book value
1 $4500 $4500 $4500
2. $2250 $6,750 $2250
3. $1125 $7,875 $1125
4. $562.50 $8437.5 $562.50
Explanation:
Book value in year in subsequent years = previous book value - that year's depreciation expense
Accumulated depreciation is sum of depreciation expense
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($9000 - $1000) / 4 = $2000
Depreciation expense each year would be $2000
Accumulated depreciation would increase each year by the depreciation expense, which is $2000.
Net book value in year 1 = $9000 - $2000 = $7000
Net book value in year 1 = $7000 - $2000 = $5000
Net book value in year 1 = $5000 - $2000 = $3000
Net book value in year 1 = $3000 - $2000 = $1000
B. Unit of production = (hours worked that year / total hours of the machine) x (Cost of asset - Salvage value)
Depreciation expense
Year 1 = (5,500 / 16,000) x ($9000 - $1000) = $2,750
Year 2 = (3,800 / 16,000) x ($9000 - $1000) = $1900
Year 3 = (3,200 / 16,000) x ($9000 - $1000) = $1600
Year 4 = (3,500 / 16,000) x ($9000 - $1000) = $1750
Accumulated depreciation in year 1 = $2750
Accumulated depreciation in year 2 = $2750 + $1900 = $4,650
Accumulated depreciation in year 3 = $4,650 + $1600 = $6,250
Accumulated depreciation in year 4 = $6,250 + $1750 = $8000
Book value in year 1 = $9000 - $2,750 = $6250
Book value in year 2 = $6250 - $1900 = $4,350
Book value in year 3 = $4,350 - $1600 = $2750
Book value in year 4 = $2750 - $1750 = $1000
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2x (1/4 ) = 0.5
Depreciation expense in Year 1 = 0.5 x $9000 = $4500
Book value in year 1 = $9000 - $4500 = $4500
Depreciation expense in Year 2 = 0.5 x $4500 = $2250
Book value in year 2 = $4500 - $2250 = $2250
Depreciation expense in Year 3 = 0.5 x $2250 = $1125
Book value in year 3 = $2250 - $1125 = $1125
Depreciation expense in Year 4 = 0.5 x $1125 = $562.50
Book value in year 4 = $1125 - $562.50 = $562.50
Accumulated depreciation in year 1 = $4500
Accumulated depreciation in year 2 = $4500+ $2250 = $6,750
Accumulated depreciation in year 3 = $6,750 + $1125 = $7,875
Accumulated depreciation in year 4 = $7,875 + $562.50 = $8437.5
Woolsey Corporation, a U.S. company, expects to sell goods to a British customer at a price of 250,000 pounds, with delivery and payment to be made on October 24. On July 24, Woolsey purchased a three-month put option for 250,000 British pounds and designated this option as a cash flow hedge of a forecasted foreign currency transaction expected to be completed in late October. The following exchange rates apply:
Option Strike Price = $2.17
Option Cost : $4,000
July 24th Spot Rate : $2.17
October 24th Spot Rate :$2.13
October 24th Option Premium : $.04
What amount will Woolsey include as Adjustment to Net Income for the period ended October 31?
A. $6,000 positive.
B. $6,000 negative.
C. $10,000 positive.
D. $10,000 negative.
E. $14,000 positive.
Answer:
C. $10,000 positive.
Explanation:
The computation of the amount that should be included is shown below:
= (Option strike price - spot rate) × purchased put options
= ($2.17 - $2.13) × 250,000
= $10,000
As the spot rate is less than the strike price so automatically there is a gain of $10,000
Hence, the option c is correct
Beyoncé Corporation factors $175,000 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2014.Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments.Instructions:(a) What conditions must be met for a transfer of receivables with recourse to be accounted for as a sale?(b) Assume the conditions from part (a) are met. Prepare the journal entry on August 15, 2014, for Beyoncé to record the sale of receivables, assuming the recourse obligation has a fair value of $2,000.
Answer:
(a) What conditions must be met for a transfer of receivables with recourse to be accounted for as a sale?
The transferrer losses control over the transferred assets. The transferees possess the right collect, pledge or exchange the transferred assets. The transferred assets are separate form the transferrer.
(b) Assume the conditions from part (a) are met. Prepare the journal entry on August 15, 2014, for Beyoncé to record the sale of receivables, assuming the recourse obligation has a fair value of $2,000.
Dr Cash 164,500
Dr Factor receivables 7,000
Dr Loss from factoring dues 5,500
Cr Accounts receivables 175,000
Cr Recourse liability 2,000
Tri-State Mill uses a special sander to finish lumber. Data on the sander and its usage follow. Cost Driver Rate Cost Driver Volume Resources used Energy $ 0.90 per machine-hour 6,000 machine-hours Repairs $ 16.00 per job 600 jobs Resources supplied Energy $ 6,900 Repairs 12,000 Required: Compute unused resource capacity in energy and repairs for Tri-State Mill.
Answer and Explanation:
The computation of the unused resource capacity in energy and repairs for Tri-State Mill. is shown below;
For energy
= $6,900 - 6,000 × $0.90
= $6,900 - $5,400
= $1,500
For repairs
= $12,000 - 600 × $16
= $12,000 - $9,600
= $2,400
Hence, the unused resource capacity in energy and repairs for Tri-State Mill. is $1,500 and $2,400 respectively
Smith & Sons uses the allowance method of handling its credit losses. It estimates credit losses at two percent of credit sales, which were $2,000,000 during the year. On December 31, the Accounts Receivable balance was $300,000 and the Allowance for Doubtful Accounts had a credit balance of $21,400 before adjustments.
Show how accounts receivable and the allowance for doubltful accounts would appear in the December 31 Balance Sheet.
Answer:
$238,600
Explanation:
Firstly, we need to compute the amount of bad debt
= Credit sale × Bad debt expense
= $2,000,000 × 2%
= $40,000
The adjusted balance of allowance will be the addition of unadjusted balance of allowance account and the bad debt expense
= $21,400 + $40,000
= $61,400
The , the balance will be :
Accounts receivables = $300,000
Less: Allowance for doubtful account = ($61,400)
Net realizable value of account receivable = $238,600
what are the market trends and growth of netflix
Which of the statements is true of the prisoner's dilemma? In the game that includes two prisoners, from which this game derives its name, neither prisoner will confess and they will both walk free. The prisoner's dilemma is an example of a cooperative equilibrium. In the prisoner's dilemma, firms could do better if they both did exactly the opposite of what they ultimately choose to do. One player has a dominant strategy and the other has a mixed strategy.
Answer: In the prisoner's dilemma, firms could do better if they both did exactly the opposite of what they ultimately choose to do.
Explanation:
The prisoner's dilemma is simply an analysis in the game theory which reveals the reasons for the lack of cooperation between two rational individuals.
We should note that in the prisoners dilemma, it'll have been in the best interest of the parties to agree and cooperate. The firms choose the strategies which makes them better off at the expense of the other firm who's worse off but they could have been better if they both did exactly the opposite of what they ultimately choose to do.
Its prevailing technique of both the inmates and the Nash equilibrium inside the prisoner's conundrum was (cheat, cheat). Both would be worse off with only one year in prison if they had chosen the opposite conclusion, that is, not confessing.
This prisoner's dilemma was essentially an analysis of game theory, that reveals the reasons for the absence of collaboration among two rational individuals.It mentions a prisoner's dilemma, or how it would've been in the best interests of all parties agreeing and cooperating. Firms choose methods that benefit them at the expense of other firms. It might've been better if they would have done the exact opposite of what they finally opted to do.Therefore, the final answer is "Third choice".
Learn more:
brainly.com/question/12513560
somebody help pls name two business ethics that the Snack Corner failed to adhere to.
Answer:
create a news report paragraph by using active and passive verb forms fictional or real about an environmental event about earthquakes select a location city or country
Explanation:
員員員員員員員員Which of the following illustrates Forward Vertical Integration? a. Subway sandwich company buying a bakery to make the bread for their sandwiches b. Sony buying trucks to deliver their finished goods inventories to their customers' warehouses c. Ford automotive buying additional machines for production d. Microsoft starting a new division that designs and manufactures clothing
Answer:
a
Explanation:
Vertical integration is when a firm acquires a business further in its production chain. For example, a sandwich company purchasing a bakery
Subway sandwich company buying a bakery to make the bread for their sandwiches illustrates Forward Vertical Integration. Thus, Option (A) is correct.
Forward vertical integration occurs when a company acquires or integrates a business that is closer to the end consumer or customer in the supply chain.
In the case of the Subway sandwich company buying a bakery to make the bread for their sandwiches, it represents forward integration because it involves bringing a crucial part of the supply chain, the bakery, under Subway's ownership.
By owning the bakery, Subway can have direct control over the production of bread, ensuring quality, consistency, and timely supply of their sandwiches.
This integration allows Subway to streamline its operations, reduce dependency on external suppliers, and potentially gain cost savings. It also strengthens Subway's brand identity and customer experience by offering freshly baked bread made in-house
Thus, Option (A) best illustrates the concept of Forward Vertical Integration among the options given.
Learn more about Vertical Integration here:
https://brainly.com/question/33489281
#SPJ6
Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy:Direct materials: 6 microns per toy at $1.50 per micron Direct labor: 1.3 hours per toy at $21 per hourDuring July, the company produced 3,000 Maze toys. Production data for the month on the toy follow:Direct materials: 25,000 microns were purchased at a cost of $1.48 per micron. 5,000 of these microns were still in inventory at the end of the month.Direct labor: 4,000 direct labor-hours were worked at a cost of $88,000.Required: 1. Compute the following variances for July:a. The materials price and quantity variances.b. The labor rate and efficiency variances.
Answer:
1. a. The materials price and quantity variances
Material price variance: Standard cost per micron is $1.50 and actual cost per micron is $1.48. So, price variance is 1.48 - 1.5 = $(0.02) per micron
Quantity variance: Based on standard bill of material, Dawson Toys need 3,000 x 6 = 18,000 microns to produce 3,000 Maze toys. Actual consumption volume is 25,000 - 5,000 = 20,000 microns. So, quantity variance is 20,000 - 18,000 = 2,000 microns.
1. b. The labor rate and efficiency variances
Actual labor rate = Actual labor cost / Actual hour = 88,000/4,000 = $22 per hour.
Efficiency variance = Actual labor rate - Standard labor rate = 22 - 21 = $1 per hour.
2. Prepare a brief explanation of the possible causes of each variance.
Direct material cost variance: Total actual material cost is 20,000 x 1.48 = $29,600, higher than standard material cost of 18,000 x 1.5 = $27,000. This is mainly due to higher production waste as compared to standards.
Direct labor cost variance: Total actual labor cost is $88,000, higher than standard labor cost of 4,000 x 21 = $84,000. This is mainly due to lower labor rate per hour than expected.
Explanation:
A policy maker argues that congestion on the roads can be solved by private ownership of the roads. He argues that if the roads were privately owned, then the externality of congestion would be fully internalized and solved by the market. Discuss this by first explaining the externality problem that leads to congestion, and then explain whether the private market would deliver the efficient level of roads.
Answer:
Externalities can be defined as those activities that incurs cost on another party.
Road congestion creates externalities such as increased time for travel, more pollution in a city, more likelihood of accidents, more stress for road users.
This externaliity is caused because road users think of the private benefits that they can get from using the road but they do not take the social cost into account. We have lots of drivers on the road and non of these drivers takes cognizance of the cost that other drivers get because of this.
If road are private, congestion is going to fall and there would be excludability. But this is a public good, turning it to a private good would cause issues. Private markets benefits out is positive externalities.
The term "externality" refers to elements and situations that occur off-road and cause congestion.
In this regard, we can say that:
The externality of congestion is created by the lack of urban infrastructure, the excess of vehicles on the streets, the lack of traffic inspection, and the lack of road maintenance.All of this allows for an accumulation of vehicles on urban roads, generating congestion, which affects the city in an imposing way.These problems have been treated as public order problems as roads are a public asset managed by the government. Many people believe that government management is the main problem and that if the roads were managed by private companies, these problems would be eliminated.
Although we can recognize that many of these externalities would be solved by private companies, treating the use of roads as a private asset would not solve the problem of congestion, as it would create other externalities, especially about the freedom to use roads.
With this, we can conclude that the externality of congestion would not be reduced with the use of private companies, but maintained with other factors.
More information:
https://brainly.com/question/1361751?referrer=searchResults
Division A offers its product to outside markets for $30. It incurs variable costs of $11 per unit and fixed costs of $75,000 per month based on monthly production of 4,000 units. Division B can acquire the product from an alternate supplier for $31 per unit or from Division A for $30 plus $2 per unit in transportation costs in addition to the transfer price charged by Division A.Required:a. What are the costs and benefits of the alternatives available to Division A and Division B with respect to the transfer of Division A's product? Assume that Division A can market all that it can produce.b. How would your answer change if Division A had idle capacity sufficient to cover all of Division B's needs?
Answer:
a. See part a below for the analysis.
b. We have:
1. Division A total cost = $1,131,000
2. Division A total profit or benefit = $1,509,000
3. Division B total cost = $1,320,000
4. Division A total profit or benefit = $44,000
Explanation:
Note: See the attached excel file for the calculation of calculation of costs and benefits of options available to Divisions A and B.
a. What are the costs and benefits of the alternatives available to Division A and Division B with respect to the transfer of Division A's product? Assume that Division A can market all that it can produce.
Under this condition, each analysis is based on the condition that either Division A or Division B will pay for the transportation cost.
From part a the attached excel file, we have:
1. Division A will incur a total cost of of $559,000 and gets a profit or benefit of $761,000 if it sells to the outside market.
2. Division A will incur a total cost of of $647,000 and gets a profit or benefit of $673,000 if it sells to Division B.
3. Division B will incur a total cost of $1,408,000 if it buys from Division A.
4. Division B will incur a total cost of $1,364,000 if it buys alternate supplier. It thereby saves the transportation cost of $88,000 of buying from A as a benefit.
b. How would your answer change if Division A had idle capacity sufficient to cover all of Division B's needs?
Under this condition, it is assumed that Division A will pay for the transportation cost. Therefore, Division A will sell to both the outside market and Division B.
From part b of the attached excel file, we will have the following based on this condition:
1. Division A total cost = Total cost of selling to the outside market + Total cost of selling to Division B = $559,000 + $572,000 = $1,131,000
2. Division A profit or benefit cost = Total profit or benefits of selling to the outside market + Total profit or benefits of selling to Division B = $761,000 + $748,000 = $1,509,000
3. Division B will incur a total cost of $1,320,000 by buying from Division A. It thereby saves $44,000 (i.e. $1,364,000 - $1,320,000 = $44,000) as a benefit for not buying from alternate supplier.
Assume you are the internal controls expert for your company. Your boss has read about Madoff’s Ponzi scheme described in our textbook. Your boss is now worried that your own company, which invests a significant amount of retirement funds for its employees, could fall victim to a similar scheme. He has just sent you a memo asking: "Which specific internal controls should our company adopt to avoid falling for a scheme like this?" Respond with a memo to your boss detailing at least three internal controls that you would recommend implementing at your company, assuming none are in place right now, to minimize the risk of becoming the victim of an investment fraud. For each internal control you recommend provide: A detailed description of the policy or procedure to be implemented. An explanation of how specifically it would mitigate the risk of being defrauded. A description of any disadvantages the internal control may have. After submitting your own initial post, change hats! Now assume you are the boss; read your classmates recommendations and question/challenge them as an effective boss would.
Answer:
There are many measures a company can undertake to uplift the standards of internal controls, however few of those are enumerated as under -
1. Due Diligence - almost everyone would suggest it but the implementation differs from company to company. The term encompasses wide activities i.e. from improving quality of internal audit to upkeeping of financial records etc. Keeping a check on existing & old investment pattern would certainly help in analyzing the response of investments as per prevailing market condition. Disadvantages of the process include involvment of additional manpower and cost.
2. Choosing right Investment firms and/or Fund Manager - In the complex business market which prevails today, finding the right guy seems to be a difficult job. It is important that we carefully study not only the investment patterns and subsequent returns of the Investment firms / Fund Manager but also background, qualifications and previous legal records to arrive at suitable guy for suitable job. Sometimes we choose a skeptical but a honest guy, which may lead to sacrifice in short term gains but particulary in retirement funds with long term goals, security of funds assume priority.
3. Selecting the financial products - Today there are numerous financial products available in the market, many of them offer fancy returns but the goals of such financial products must be re-aligned to the goals of the company and its employees. For the company a decent return over long run with high degree of security is the objective when it comes to retirement funds. The financial product must have an appropriate mix of debt, equity and liquid funds and particularly the component of debt must increase with the age of an employee which will ensure security of funds by the time he attains superannuation. Disadvantage majorly includes loss of returns due to less investment in equity during the final stages of career.
Explanation:
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. Cash Receipts Cash payments January $ 518,000 $ 461,500 February 403,000 346,500 March 467,000 523,000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $50,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $50,000 on the last day of each month. The company has a cash balance of $50,000 and a loan balance of $100,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.)
Answer:
a. Ending Cash Balance:
January = 50,000
February = 61,555
March = 50,000
b. Loan Balance End of Month:
January = 44,500
February = $0
March = $44,445
Explanation:
Note: The merged data given in the question are sorted before answering the question as follows:
Cash Receipts Cash payments
January $ 518,000 $ 461,500
February 403,000 346,500
March 467,000 523,000
Explanation of the answer is now given as follows:
Note: See the attached excel file for the cash budget.
In the attached excel file, the following calculations are made:
January loan repayment = January Preliminary cash balance - Minimum required cash balance = $105,500 - $50,000 = $55,500
March Additional loan = Minimum required cash balance - March Preliminary cash balance = $50,000 - $5,555 = $44,445
From the attached excel file, we have:
a. Ending Cash Balance:
January = 50,000
February = 61,555
March = 50,000
b. Loan Balance End of Month:
January = 44,500
February = $0
March = $44,445
Expected cash dividends are $4.00, the dividend yield is 8%, flotation costs are 6% of price, and the growth rate is 5%. Compute the approximate cost of new common stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Explanation:
[tex]\text { Dividend, } \mathrm{D}= 4 \\\text { Dividend yield rate }=\mathrm{D} / \text { Current price }=8 % \\\text { Current price }, \mathrm{P} 0=\mathrm{D} / 8 \%=\$ 4 / 8 \%=$ 50[/tex]
[tex]\text { Flotation cost, } \mathrm{F}=8 \% \text { of current price }=\$ 50 * 8 \%=\$ 4 \\ \text { Growth rate,g }=4 % \\ \text { Cost of new common stock, } \mathrm{Ke}=[\mathrm{D} 1 /(\mathrm{P} 0-\mathrm{F})]+\mathrm{g} \\ =[\$ 4 /(\$ 50-\$ 4)]+4 \% \\ =0.086956522+0.04 \\ =0.126956522=12.7 \% \text {(Rounded) }[/tex]
12.7%
In 2006, Lego laid off 1,200 workers and ended production in the U.S.. The company contracted out production of basic Lego bricks to Singapore-based electronics manufacturer Flextronics, which operates factories in Mexico and eastern Europe. Which two of the ten operations management decision types were addressed by this decision
Question Completion:
Ten Operations Management Decision Types:
a. Design of goods and services
b. Managing quality
c. Process and capacity design
d. Location strategy
e. Layout strategy
f. Human resources and job design
g. Supply chain management
h. Inventory management
i. Scheduling
j. Maintenance
Answer:
Lego
The two types of operations management decisions that were addressed by Lego's decision to end production in the US are:
d. Location strategy
g. Supply chain management
Explanation:
Lego decided to close its production facilities in the U.S.A because of the shifting customer demand. There has been a growing demand for electronics by children as against plastic toys. This is why it was able to contract out its production activities to a Singapore-based manufacturer with factories in Mexico and eastern Europe. So the company is strategically moving its production to countries that have high demand for its products and, at the same time, enjoying some tax benefits.
The amount of resources used in an activity-based costing (ABC) system for a specific activity is computed by multiplying the ______________ (chapter 10) A. cost driver rate and the actual cost driver volume B. cost driver rate and the planned cost driver volume C. overhead rate and the actual cost driver volume D. overhead rate and the planned cost driver volume
Answer: A. cost driver rate and the actual cost driver volume
Explanation:
When using activity-based costing, the cost for an activity is based on the cost driver rate, which is the cost per unit of the activity, and the actual cost driver volume which is how many units was used in the activity.
For instance, if the cost driver rate for marketing is $8 per unit and 50 units were produced - actual cost driver volume- then the cost of marketing would be:
= 8 * 50
= $400
plies manufacturing overhead at the rate of $40 per machine hour. Budgeted machine hours for the current period were anticipated to be 120,000; however, a lengthy strike resulted in actual machine hours being worked of only 90,000. Budgeted and actual manufacturing overhead figures for the year were $4,800,000 and $4,180,000, respectively. On the basis of this information, the company's year-end overhead was:
Answer:
$580,000 under applied.
Explanation:
The computation of the company's year end overhead is seen below;
The applied overhead is
= Predetermined overhead rate × actual machine hours
= $40 × 90,000
= $3,600,000
Then, the applied overhead
= $4,180,000 - $3,600,000
= $580,000
Hence, the ending overhead is $580,000 under applied
Identify which of the following statements is true. Group of answer choices All of the above are false. If a C corporation does not distribute its income to its shareholders annually, double taxation cannot occur. C corporation operating losses are deductible by the individual shareholders. Capital losses incurred by a C corporation can be used to offset the corporation's ordinary income.
Answer:
All of these are false
Explanation:
The c corporation is a corporation that is entered if the investors or shareholders are large. That is they exceed 100. The investors or shareholders pay taxes on dividends. They are subjected to what is called double taxation and are taxed separately from the owners. The obligations of the corporation are not personal to any individual and liability of the owners, workers or shareholders are limited
If business property or property held for the production of income is destroyed, the loss is equal to the adjusted basis of the property at the time of destruction.
a. True
b. False
Answer:
A) true
Explanation:
Business property could be of different types such as Real property(real estate) which comprises building as well as land. As regards to business real property could be property such as warehouses, offices as well as factories which is been owned by the business. If these properties are been held for income production, the loss can be attributed to adjusted basis during the destruction of the property. It should be noted If business property or property held for the production of income is completely destroyed, the loss is equal to the adjusted basis of the property at the time of destruction.
How can you make positive economic choices?
Answer:
All choices require giving up something in your life whether that is friends or family, or things that you really want. Economic choices require you to think do you really want this and what is the benifit out of it, like what do you get out of making this decision. The economic things are what will be produced, how will it be produced, and how will the output society produces be distributed
Explanation:
R. Stetson contributed $14,000 in cash plus office equipment valued at $7,000 to the SJ Partnership. The journal entry to record the transaction for the partnership is:
a. Debit Cash $14,000; debit Office Equipment $7,000; credit R Stetson, Capital $21,000.
b. Debit Cash $14,000; debit Office Equipment $7,000; credit SJ Partnership, Capital $21,000.
c. Debit SJ Partnership $21,000; credit R. Stetson, Capital $21,000.
d. Debit R. Stetson, Capital $21,000; credit SJ Partnership, Capital $21,000.
e. Debit Cash $14,000; debit Office Equipment $7,000; credit Common Stock $21,000.
Answer:
A
Explanation:
Got question and got it right
Hubert lives in New York City and runs a business that sells boats. In an average year, he receives $723,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $423,000; he also pays wages and utility bills totaling $267,000. He owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Hubert does not operate this boat business, he can work as a financial advisor, receive an annual salary of $20,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. No other costs are incurred in running this boat business.
Identify each of Darnell's costs given below as either an implicit cost or an explicit cost of selling pianos.
a. The rental income Darnell could receive if he chose to rent out his showroom
b. The wages and utility bills that Darnell pays
c. The salary Darnell could earn if he worked as a financial advisor
d. The wholesale cost for the pianos that Darnell pays the manufacturer
Answer:
A. the rental incomw darnell could receive if he choose to rent out his showroom
The process of developing budget estimates by requiring all levels of management to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as a.master budgeting b.continuous budgeting c.zero-based budgeting d.flexible budgeting
Answer:
Zero-based budgeting
Explanation:
Zero-based budgeting can be regarded as approach used to make budget right from scratch, it doesn't have to base on previous budgets i.e a budget starting from zero and every expenses must be justify before it can be added to official budget. It should be noted that The process of developing budget estimates by requiring all levels of management to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as Zero-based budgeting
The aggregate demand curve is downward sloping because production costs decline as real GDP increases. is upward sloping because a higher price level is necessary to make production profitable as production costs rise. shows the amount of expenditures required to induce the production of each possible level of real GDP. shows the amount of real GDP that will be demanded at each possible price level. g
Answer: shows the amount of real GDP that will be demanded at each possible price level.
Explanation:
The Aggregate Demand curve shows how much of real GDP is demanded at each possible price level which means that is shows the effect of the price level on real GDP.
If the price level rises, real GDP will decrease and if the price level falls, real GDP rises. This is why the aggregate demand curve is downward sloping, to reflect this inverse relationship between real GDP and price level.
Davis Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for September when Davis produced 5,000 units: Standard: DLH per unit 3.00 Variable overhead per DLH $1.80 Fixed overhead per DLH $3.25 Budgeted variable overhead $27,250 Budgeted fixed overhead $49,500 Actual: Direct labor hours 16,000 Variable overhead $31,325 Fixed overhead $49,750 Refer to Davis Company. Using the four-variance approach, what is the variable overhead efficiency variance
Answer:
$1,800
Explanation:
Calculation to determine the variable overhead efficiency variance
Using this formula
VOH Efficiency Variance = Budgeted VOH based on Actual - Budgeted VOH/Standard Qty
Let plug in the formula
VOH Efficiency Variance = ((16,000 * $1.80/hr) - ((5,000 * 3.00hrs/unit * $1.80/hr))
VOH Efficiency Variance = $(28,800.00 - $27,000.00)
VOH Efficiency Variance = $1.800
Therefore Using the four-variance approach, what is the variable overhead efficiency variance will be $1,800
If two countries have identical production possibility frontiers, then A. there is no scope for trade B. they have different opportunity costs of production. C. there is a set of prices at which both countries will gain from trade D. they have identical marginal products of labor
The following data were gathered to use in reconciling the bank account of Lays Company: Balance per bank $ 18,550 Balance per company records 10,030 Bank service charges 40 Deposit in transit 3,050 Note collected by bank with $190 interest 4,750 Outstanding checks 6,860 a. What is the adjusted balance on the bank reconciliation
Answer:
$13,840
Explanation:
Bank reconciliation Statement
Balance per company records $10,030
Add unpresented checks $ 6,860
Less Lodgements ($3,050)
Balance as per Bank Statement $13,840
the adjusted balance on the bank reconciliation is $13,840
The Rob Wallace Corporation has a sales budget for next month of $400,000. Cost of goods sold is expected to be $250,000. All goods are paid for in the month following their purchase. The beginning inventory of merchandise is $16,000, and an ending inventory of $12,000 is desired. Beginning accounts payable is $52,000. How much merchandise inventory will The Rob Wallace Corporation need to purchase next month
Answer: $246000
Explanation:
The amount of merchandise inventory that The Rob Wallace Corporation need to purchase next month will be:
Expected Cost of goods sold = $250000
Less: Beginning Inventory = $16000
Add: Desired Ending Inventory = $12000
The, the Required Purchase of merchandise inventory will be:
= $250000 + $12000 - $16000
= $246000
Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)
Case A Case B Case C
Direct materials used $ (a) $91,200 $69,000
Direct labor 52,200 143,800 (h)
Manufacturing overhead applied 42,804 (d) (i)
Total manufacturing costs 149,800 (e) 216,100
Work in process 1/1/14 (b) 21,300 18,400
Total cost of work in process 208,600 (f) (j)
Work in process 12/31/14 (c) 11,900 (k)
Cost of goods manufactured 193,500 (g) 232,600
Answer:
(a) $54796 (b) $58,800 (c) $ 15100 (d) $117916 (e) $ 352916 (f) $ 374216
(g) $326316 (h) $ 82824.18 (i) $ 64276.82 (j) $234500 (k) $1900
Explanation:
The calculations are as follows.
Case A Case B Case C
Direct materials used $ (a) 54796 $91,200 $69,000
Direct labor 52,200 143,800 (h) 82824.18
Manufacturing overhead applied 42,804 (d)117916 (i)64276.82
Total manufacturing costs 149,800 (e) 352916 216,100
Working
The following formula is used to find the missing values :
Total MFG Cost= DM + DL+ MFG OH
a) 149800- 42804-52200= 54796
d) Ratio of MfgOH to DL= 42,804/52,200= 0.82
Mfg Overhead for Case 2= 0.82* 143,800= 117916
e) 91,200+ 143,800+ 117916= 352916
h+i) Conversion Costs for Case 3= 216100-69000=147100
Mfg OH is 82% of DL
Total Conversion Cost will be 1.82
1.82x= 147100
x= 147100/1.82
x= 82,824.18
h)DL= 82824.18
i) MFG OH= CC- DL= 147100- 82824.18= 64276.82
Work in process 1/1/14 (b) 58,800 21,300 18,400
Total cost of work in process 208,600 (f) 374216 (j)234500
Working
The following formula is used to find the missing values
Total WIP Cost- Total MFG Cost= Opening WIP
b)Total WIP Cost- Total MFG Cost= 208600-149800= 58,800
f) Total MFG Cost+ WIP= 352916 + 21,300 =374216
j) Total MFG Cost+ WIP=216,100 + 18,400= 234500
Work in process 12/31/14 (c) 15100 11,900 (k)1900
Cost of goods manufactured 193,500 (g) 326316 232,600
Working
The following formula is used to find the missing values
Total WIP-CGS= Ending WIP
c) Total WIP-CGS= 208600-193500 = 15100
g) Total WIP- Ending WIP= 374216- 11,900 = 326316
k) Total WIP-CGS=234500- 232,600 = 1900
After filling in the blanks:
Case A Case B Case C
Direct materials used $ (a) 54796 $91,200 $69,000
Direct labor 52,200 143,800 (h) 82824.18
Manufacturing overhead applied 42,804 (d)117916 (i)64276.82
Total manufacturing costs 149,800 (e) 352916 216,100
Work in process 1/1/14 (b) 58,800 21,300 18,400
Total cost of work in process 208,600 (f) 374216 (j)234500
Work in process 12/31/14 (c) 15100 11,900 (k)1900
Cost of goods manufactured 193,500 (g) 326316 232,600
Nutcracker, Inc has forecast sales for the next three months as follows: July 4,000 units, August 6,000 units, September 7,500 units. Nutcracker's policy is to have an ending inventory of 40% of the next month's sales needs on hand. July 1 inventory is projected to be 1,500 units. Selling and administrative costs are budgeted to be $15,000 per month plus $5 per unit sold. What are budgeted selling and administrative expenses for July
Answer:
$35,000
Explanation:
Use the provided cost formula :
Selling and administrative expense = $15,000 + $5y
where,
y is the number of units sold
Therefore,
Selling and administrative expense = $15,000 + $5 x 4,000 units
= $35,000