Answers
The correct term for each of the missing labels in that diagram is a. input and b. transformation.
What is input, transformation, and output?The input-transformation-output is a production process to produce new product.
The input is all required resources to operate production process and produce a product. This include human, material, financial, and information inputs.
The transformation is all required to use the input and give them the additional value. This include technology such as machine, manufacturing, etc.
The output is the result of input that has been given added value. This include product, profit, new information, etc.
Since, the missing a labels is in beginning of process so a labels is for input, and the b labels that in the between of input and output is transformation.
You question is incomplete, but most probably your full question was
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Related Questions
The Maryville Construction Company occupies 105,800 square feet for construction of mobile homes. There are two manufacturing departments, finishing and assembly, and four service departments labeled S1, S2, S3, and S4. Information relevant to Maryville is as follows: Allocation Department Area used S1 S2 S3 S4 Finishing Assembly S1 18,600 --- 0.20 0.10 --- 0.10 0.60 S2 5,050 --- --- 0.40 0.40 --- 0.20 S3 10,100 0.20 0.20 --- 0.30 0.20 0.10 S4 5,050 0.20 0.10 0.20 --- 0.30 0.20 Finishing 30,150 --- --- --- --- --- --- Assembly 36,850 --- --- --- --- --- --- Rent paid for the area used is $736,000. How much rent is allocable to the assembly department using the direct method of allocation
Answers
Answer:
$404,800
Explanation:
Calculation to determine How much rent is allocable to the assembly department using the direct method of allocation
Using this formula
Rent =Area used by Assembly department / Total Area used by Manufacturing Departments x Total Rent paid
Let plug in the formula
Rent =36,850/ (36,850+30,150) x $736,000
Rent=36,850/67,000*$738,000
Rent=0.55*$736,000
Rent= $404,800
Therefore How much rent is allocable to the assembly department using the direct method of allocation is $404,800
Rizio Co. purchases a machine for $12,500, terms 2/10, n/60, FOB shipping point. The seller prepaid the $360 freight charges, adding the amount to the invoice and bringing its total to $12,860. The machine requires special steel mounting and power connections costing $895. Another $475 is paid to assemble the machine and get it into operation. In moving the machine to its steel mounting, $180 in damages occurred. Also, $40 of materials is used in adjusting the machine to produce a satisfactory product. The adjustments are normal for this machine and are not the result of the damages.
Required:
Compute the cost recorded for this machine.
Answers
Answer:
$14,020
Explanation:
The amount included in the cost of equipment:
The Invoice price of the machine $ 12.500
Less: Discount 250
Net purchase price 12,250
Assembly 475
Freight charges 360
Materials used in adjusting 40
Mounting and power connections 895
0
0
Total cost to be recorded $14,020
To compute the cost recorded for the machine, we need to add up all the relevant costs incurred in its acquisition and preparation. Here's the breakdown:
Purchase price: $12,500
Freight charges: $360
Special steel mounting and power connections: $895
Assembly and installation: $475
Damages during movement: $180
Materials for adjustments: $40
Now, let's calculate the total cost recorded for the machine:
Purchase price + Freight charges + Steel mounting + Assembly + Damages + Materials
= $12,500 + $360 + $895 + $475 + $180 + $40
= $14,450
Therefore, the cost recorded for the machine is $14,450.
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Jervis sells $3,000 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 4% factoring fee. What entry should Jervis make to record the transaction? Multiple Choice Debit Cash $2,880; debit Factoring Fee Expense $120; credit Accounts Receivable $3,000 Debit Accounts Receivable $2,880; debit Factoring Fee Expense $120; credit Cash $3,000. Debit Cash $3,000; credit Factoring Fee Expense $120; credit Accounts Receivable $3,000 Debit Cash $2,880; credit Accounts Receivable $2,880 Debit Accounts Receivable $3,000; credit Factoring Fee Expense $120; credit Cash $2,880
Answers
Answer: Debit Cash $2,880; debit Factoring Fee Expense $120; credit Accounts Receivable $3,000
Explanation:
Based on the information given, cash will be debited in the amount of:
= (100% - 4%) × $3000
= 96% × $3000
= 0.96 × $3000
= $2880
There'll also be a debit in the factoring fee in the amount of:
= 4% × $3000
= 0.04 × $3000
= $120
There'll be a credit in account receivable by $3000.
Therefore, the journal entry will be:
Debit Cash $2880
Debit Factoring fee = $120
Credit Account receivable = $3000
Colonnade Corporation purchased a machine for use in the firm's manufacturing process. The original cost of the machine was $1,800,000. The machine has a class life of 15 years, but after 13 years, the firm has decided to sell the machine for $320,000. If Colonnade has a marginal tax rate of 34%, what is the tax effect associated with the decision
Answers
Answer: $27,200
Explanation:
Machine depreciation:
There is no salvage value so depreciation is:
= 1,800,000 / 15
= $120,000
Gain on the machine when sold was:
= Selling price - Book Value of asset
= Selling price - (Cost price - Accumulated depreciation for 13 years)
= 320,000 - (1,800,000 - (120,000 * 13))
= $80,000
Tax on gain:
= 80,000 * 34%
= $27,200
How can camera footage help?
Answers
Answer:
camera footage are there not to invade a person's privacy but to protect the public by deterring criminal activity and by providing material evidence when a crime has been caught on film.
Explanation:
The debits to Work in Process—Assembly Department for May, together with data concerning production, are as follows: May 1, work in process: Materials cost, 3,000 units $ 8,000 Conversion costs, 3,000 units, 66.7% completed 6,000 Materials added during May, 10,000 units 30,000 Conversion costs during May 31,000 Goods finished during May, 11,500 units 0 May 31 work in process, 1,500 units, 50% completed 0 All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. The materials cost per equivalent unit for May is a.$3.00 b.$2.92 c.$3.80 d.$2.31
Answers
Answer:
a.$3.00
Explanation:
The computation of the material cost per equivalent unit is shown below:
But before that equivalent units should be
= 3,000 ×0%+ (11,500 - 3,000) ×100% + 1,500 × 100%
= 0 + 8,500+ 1,500
= 10,000 units
Now the material cost per equivalent cost is
= $30,000 ÷ 10,000 units
= $3
Hence, the first option is correct
4. What do you think would happen if patents did not exist? Why?
Answers
Answer:
if parents didnt exist we wouldn't exist- but um we would be able to do anything we want but we gotta raise ourselves
Problem 8-27A (Static) Computing standard cost and analyzing variances LO 8-5, 8-6 Spiro Company manufactures molded candles that are finished by hand. The company developed the following standards for a new line of drip candles. Amount of direct materials per candle 1.6 pounds Price of direct materials per pound $ 1.50 Quantity of labor per unit 1 hour Price of direct labor per hour $ 20 /hour Total budgeted fixed overhead $ 390,000 During Year 2, Spiro planned to produce 30,000 drip candles. Production lagged behind expectations, and it actually produced only 24,000 drip candles. At year-end, direct materials purchased and used amounted to 40,000 pounds at a unit price of $1.35 per pound. Direct labor costs were actually $18.75 per hour and 26,400 actual hours were worked to produce the drip candles. Overhead for the year actually amounted to $330,000. Overhead is applied to products using a predetermined overhead rate based on estimated units.
Answers
This question asks us to:
a. Determine the standard cost per candle for direct products, direct labor, and overhead.
b. Calculate the total standard cost of one drip candle.
c. Determine the direct materials, direct labor, and overhead actual costs per candle.
d. The total actual cost of each candle
Answer:
Explanation:
a.
Cost Computation Standard cost per unit
Direct material [tex]\$1.50 \times 1.6[/tex] 2.4
Direct Labor [tex]\$20 \times 1[/tex] 20
Overhead [tex]\dfrac{\$390,000}{30000}[/tex] 13
b.
To find the total average standard cost for 1 drip candle
The total standard cost per dip candle = $(2.4+20+13)
=$35.40
c. The actual cost per candle for direct materials, direct labor, and overhead can be computed as:
Cost Computation Standard cost per unit
Direct material [tex](\dfrac{40000}{24000}\times 1.35)[/tex] 2.25
Direct Labor [tex]\dfrac{26400}{24000} \times 18.75[/tex] 20.63
Overhead [tex]\dfrac{\$330,000}{24000}[/tex] 13.75
d. The total actual cost per candle = $(2.25 + 20.63 + 13.75)
= $36.63
Bonita Equipment Co. closes its books regularly on December 31, but at the end of 2020 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes. Cash receipts and disbursements for the first 10 days of January were recorded as December transactions. The information is given below.
1. January cash receipts recorded in the December cash book consisting of:
Cash sales $28,000
Collections on account, for which $360 of cash discounts were given 17,640
$45,640
2. January cash disbursements recorded in the December check
register liquidated accounts $22,450
Discounts taken 250
3. The ledger has not been closed for 2017.
4. The amount shown as inventory was determined by physical count on December 31, 2017.
The company uses the periodic method of inventory.
Instructions
(A) Prepare any entries you consider necessary to correct Francis’s accounts at December 31.
(B) To what extent was Francis Equipment Co. able to show a more favorable balance sheet at December 31 by holding its cash book open? Assume that the balance sheet that was prepared by the company showed the following amounts:
Debit Credit
Cash $39,000
Accounts receivable 42,000
Inventory 67,000
Accounts payable $45,000
Other current liabilities 14,200
Answers
Answer:
Bonita Equipment Co.
A. Entries to correct Bonita's accounts at December 31:
Debit Sales revenue $28,000
Credit Cash $28,000
To reverse the cash sales of January recorded in December.
Debit Accounts Receivable $18,000
Credit Cash $17,640
Credit Cash Discounts $360
To reverse the cash receipts of January recorded in December.
Debit Cash $22,450
Debit Cash Discounts $250
Credit Accounts Payable $22,700
To reverse the cash payment of January recorded in December.
B. To some extent, Bonita was able to show a more favorable balance sheet at December 31 by holding its cash book open. This becomes more pronounced when the working capital elements of the balance sheet are analyzed with ratios.
For example, the current and quick ratios before the above adjustments shows 2.4 and 1.4 respectively. After the adjustments, the current and quick ratios reduced to 1.74 and 0.92 respectively.
Explanation:
a) Data and Analysis:
Cash Sales $28,000
Collections on account $17,640
Total $45,640
Cash Discounts on collections = $360
Total collections on account $18,000
Cash Disbursements:
Check for payment on account = $22,450
Discounts $250
Total disbursement $22,700
Sales revenue $28,000
Cash $28,000
Accounts Receivable $18,000
Cash $17,640
Cash Discounts $360
Cash $22,450
Cash Discounts $250
Accounts Payable $22,700
Before Adjustments After Adjustments
Debit Credit Debit Credit
Cash $39,000 $15,450($39,000 - $28,000 - $18,000 + $22,450)
Accounts receivable 42,000 60,000 ($42,000 + $18,000)
Inventory 67,000 67,000
Accounts payable $45,000 $67,450 ($45,000 + $22,450)
Other current liabilities 14,200 14,200
Total $148,000 $59,200 $142,450 $81,650
Working capital ratios:
Before Adjustments After Adjustments
Current ratio = $148,000/$59,200 $142,450/$81,650
= 2.5 1.74
Quick ratio = $81,000/$59,200 $75,450/$81,650
= 1.4 0.92
two obstacles you may face in your attempt to achieve your goals
Answers
Answer: Perfectionism, Expectations, Distrations, etc.
Explanation:
An act of Procrastinating and viewing of mistakes as failure are obstacles one might face in your attempt to achieve goals.
What is a goals?A goals refers to a predetermined aim that an entity or group plans to to achieve in a set period of time.
However, some obstacles that one might face in an attempt to achieve your goals includes:
Procrastination: This obstacle delays the act of carrying out an action.Viewing mistakes as failure: This makes people to fear making mistake whereas they should stand as stepping stone for success.Read more about goals
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Question II - Tina Technology is looking to raise $85,000 worth of capital, and she is looking to raise that money through the internet and still fall under an SEC exemption. How should Tina go about raising that money? Due to the amount of capital she is looking to raise, will Tina be subject to any other special requirements?
Answers
Answer and Explanation:
In the given case Tina Technology could use the funding as crowd funding and also can claim exemption from SEC
The provisions are shown below:
The Guideline Crowdfunding could empowered the organizations that should be qualified can offer and sell the protections via crownfunding
The principles are
1. It needs all exchanges that are under Regulation Crowdfunding to arise occur via SEC i.e. enrolled delegation it should be merchant vendor or a financing entrance
2. Permission made to organization for raising a highest measure of $1,070,000 via contributions related to the crownfunding
3. Control the sum of individual specialist that can put total contributions related to the crownfunding
4. It needs the data exposure in order to file with the commission, financial specialist & the middle person for motivating the contribution
The protection that could be purchased in the crowdfunding exchange could not be exchange also the guidelines related to Crowdfunding contributions are based upon the troublemaker that have exclusion arrangement
what is meant by price discrimination and why is it important to monopolies?
Answers
Answer:
A discriminating monopoly is a single entity that charges different prices—typically, those that are not associated with the cost to provide the product or service—for its products or services for different consumers. Non-discriminating monopolies, on the other hand, do not engage in such a practice.
The Allied Corporation analyzes a project that requires an immediate investment of $440. Allied estimates that at the end of the first year the project will generate a cash flow of $660, but that at the end of the second year, when the project ends, it will generate a negative cash flow of $85. The project's required rate of return is estimated to be 7.50%. Calculate the NPV of Allied's project.
Answers
Answer:
NPV = $100.4002 rounded off to $100.40
Explanation:
The NPV or net present value is the present value of a project or business's cash flows which are calculated by deducting the cash outflows from the cash inflows. NPV is a tool or criteria used for investment and project appraisal. The NPV can be calculated as follows,
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + .... + CFn / (1+r)^n - Initial Outlay
Where,
CF1, CF2, ... represents the cash flows in Year 1, Year 2 and so on.r represents the discount rateNPV = 660 / (1+0.075) + [ -85 / (1+0.075)^2] - 440
NPV = $100.4002 rounded off to $100.40
Logistics Solutions provides order fulfillment services for dot merchants. The company maintains warehouses that stock items carried by its dot clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours.
In the most recent month, 160000 items were shipped to customers using 6,500 direct labor-hours. The company incurred a total of $20,800 in variable overhead costs. According to the company's standards, 0.03 direct lab0Fhours are required to fulfill an order for one item and the variable overhead
Required:
a. What is the Standard labor-hours allowed (SHI to ship 160,000 terms to customers?
b. What is the standard variable overhead cost allowed (SH SR) to ship 160,000 items to customers?
c. What is the variable overhead spending variance?
4. What is the variable overhead rate variance and the variable Overhead efficiency variance?
Answers
Answer: See explanation
Explanation:
a. What is the Standard labor-hours allowed (SHI to ship 160,000 terms to customers?
Actual output = 160,000 items
Standard labour hour per time = 0.03 per time
Standard labor hour allowed = 160,000 × 0.03 = 4800 hours
b. What is the standard variable overhead cost allowed (SH SR) to ship 160,000 items to customers?
Standard variable overhead rate per hour = $3.25
Standard variable overhead cost allowed = 4800 × $3.25 = $15600
c. What is the variable overhead spending variance?
= $15600 - $20800
= $5200 Unfavorable
d. What is the variable overhead rate variance and the variable Overhead efficiency variance
Variable overhead rate variance:
= (Actual hours × Standard rate per hour ) - Actual variable overhead
= (6500 hours × 3.25) - $20800
= $21125 - $20800
= $325 F
Variable overhead efficiency variance:
= $3.25 (4800 - 6500)
= $3.25 (-1700)
= $5525 Unfavorable
On January 1, 2021, Cori Ander Herbs granted restricted stock units (RSUs) representing 300,000 of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $12 per share on the grant date. At the date of grant, the company anticipated that 6% of the recipients would leave the firm prior to vesting. In 2022, 2% of the options are forfeited due to executive turnover. The company chooses the option not to estimate forfeitures. What amount should the company record as compensation expense for the year ended December 31, 2022
Answers
Answer: $1,152,000
Explanation:
Compensation Expense = [(No. of RSUs * Market Value per share) * Years elapsed / Total period] - Compensation expense already recorded
Year 1 - 2021
= [ ( 300,000 * 12) * 1/3] - 0
= $1,200,000
Year 2 - 2020
2% of the options have been forfeited so the RSUs left are:
= 300,000 * ( 1 - 2%)
= 294,000 RSUs
Compensation expense = [ (294,000 * 12) * 2/3] - 1,200,000
= $1,152,000
At December 31 of the current year, Sunland Corporation had a number of items that were not reflected in its accounting records. Maintenance and repair costs of $900 were incurred but not paid. Utilities costing $370 were used but not paid, and use of a warehouse space worth $2,070 was provided to a tenant who had not been billed as of the end of the month. Record the required adjusting entries related to these events.
Answers
Answer:
Dr Maintenance and repair expense $900
Cr Accrued expense $900
Being entries to record maintenance and repair costs incurred
Utilities costing $370 were used but not paid
Dr Utilities expense $900
Cr Accrued expense $900
Being entries to record utilities used but unpaid for
use of a warehouse space worth $2,070 was provided to a tenant who had not been billed as of the end of the month
Dr Unbilled receivables $2,070
Cr Rental Income $2,070
Being entries to recognize income from warehouse space unbilled
Explanation:
When an expense is incurred but unpaid for, an accrual is recognized to capture the cost. For income earned but unbilled, unbilled receivable is recognized. This is based on the accrual concept.
Considering the transactions given
Maintenance and repair costs of $900 were incurred but not paid
Dr Maintenance and repair expense $900
Cr Accrued expense $900
Being entries to record maintenance and repair costs incurred
Utilities costing $370 were used but not paid
Dr Utilities expense $900
Cr Accrued expense $900
Being entries to record utilities used but unpaid for
use of a warehouse space worth $2,070 was provided to a tenant who had not been billed as of the end of the month
Dr Unbilled receivables $2,070
Cr Rental Income $2,070
Being entries to recognize income from warehouse space unbilled
Rusty Hardware makes only cash sales. It began 2021 with a credit balance of $33,400 in the refund liability account. Sales during 2021 were $740,000. Rusty estimates that 7% of all sales will be returned. During 2021, customers returned merchandise for credit of $30,800 to their accounts. What is the balance in the refund liability account at the end of 2021
Answers
Answer:
$54,400
Explanation:
The balance in the refund liability account would be calculated as;
Ending balance of sales return allowance = Opening balance of allowance + Expected sales return - Actual sales return
Given that;
Opening balance = $33,400
Expected return = $740,000 × 7% = $51,800
Actual return = $30,800
Therefore,
Ending balance of sales returns = $33,400 +$51,800 - $30,800 = $54,400
The balance in the refund liability account at the end of 2021 is $54,400
Calculate free cash flow for 2017 for Monarch Textiles, Inc., based on the financial information that follows. Assume that all current liabilities are non-interest-bearing liabilities and that no fixed assets were sold or disposed of during 2017. (Enter your answer in 1000s.) Monarch Textiles, Inc. ($ thousands) Income statement Selected balance sheet items 2017 2016 2017 Sales 1,580 Current assets 460 640 Cost of sales 860 Net fixed assets 164 328 Operating expenses 180 Current liabilities 280 360 Depreciation 82 Interest expense 50 Earnings before taxes 408.00 Tax 163.20 Net income 244.80
Answers
Answer:
See below
Explanation:
Computation of free cash flow for Monach textiles, 2017
EBIT = EBT + Interest expense EBIT
EBIT = $408 + $50
EBIT = $458
Tax rate = Tax / EBT
Tax rate = $163.20 / $408
Tax rate = 0.4 = 40%
Operating cash flow = EBIT × (1 - Tax rate) + Depreciation - Change in net working capital - Capital expenditure
= $458 × (1 - 0.4) + $82 - ($640 - $360) - ($460 - $280)
= $274.8 + $82 - $280 - $180
= $274.8 + $92 - $100
= $256.8
Mutual aid agreements
Answers
Crane Sporting Goods expects to have earnings per share of $6 in the coming year. Rather than reinvest these earnings and grow, the firm plans to pay out all of its earnings as a dividend. With these expectations of no growth, Crane's current share price is $60 and the cost of equity capital is 10%. Suppose Crane could cut its divident payout rate to 75% for the foreseeable future and use the retained earnings to open new stores. The return on investment in these stores is expected to be 12%. if we assume that the risk of these new investments is the same as the risk of its existing investments, then the firm's equity cost of capital is unchanged. What effect would this new policy have on Crane's stock price
Answers
Answer:
Stock price increases
Explanation:
We need to determine the stock price with the new policy
Stock price can be determined using the constant growth dividend model
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
growth rate = retention rate x Return on investment
Retention rate = 1 - payout ratio = 1 - 0.75 = 0.25
growth rate = 0.25 x 12 = 3%
Stock price = 6/(0.10 - 0.03) = $85.71
Under the new policy, stock price increases
Roth Inc. experienced the following transactions for Year 1, its first year of operations: Issued common stock for $80,000 cash. Purchased $240,000 of merchandise on account. Sold merchandise that cost $154,000 for $306,000 on account. Collected $252,000 cash from accounts receivable. Paid $225,000 on accounts payable. Paid $54,000 of salaries expense for the year. Paid other operating expenses of $43,000. Roth adjusted the accounts using the following information from an accounts receivable aging schedule:______.
Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance
Current $ 32,400 0.01
0−30 13,500 0.05
31−60 2,700 0.10
61−90 2,700 0.20
Over 90 days 2,700 0.50
a. Record the above transactions in general journal form and post to T-accounts.
b. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Roth Inc. for Year 1.
Answers
Answer:
Roth Inc.
a. General Journal Debit Credit
1. Cash $80,000
Common stock $80,000
To record issuance of common stock for cash.
2. Inventory $240,000
Accounts payable $240,000
To record the purchase of goods on account.
3. Cost of goods sold $154,000
Inventory $154,000
To record the cost of goods sold.
3. Accounts receivable $306,000
Sales revenue $306,000
To record the sale of goods on account.
4. Cash $252,000
Accounts receivable $252,000
To record the receipt of cash on account.
5. Accounts payable $225,000
Cash $225,000
To record the payment of cash on account.
6. Salaries expense $54,000
Cash $54,000
To record the payment of salaries.
7. Operating expenses $43,000
Cash $43,000
To record the payment of other operating expenses.
8. Bad Debts Expense $3,159
Allowance for Doubtful Accounts $3,159
To record bad debts expense for the year.
T-accounts:
Cash
Account Titles Debit Credit
Common stock $80,000
Accounts receivable $252,000
Accounts payable $225,000
Salaries expense 54,000
Operating expenses 43,000
Balance 10,000
Accounts receivable
Account Titles Debit Credit
Sales revenue $306,000
Cash $252,000
Balance 54,000
Inventory
Account Titles Debit Credit
Accounts payable $240,000
Cost of goods sold $154,000
Balance 86,000
Accounts payable
Account Titles Debit Credit
Inventory $240,000
Cash $225,000
Balance 15,000
Common stock
Account Titles Debit Credit
Cash $80,000
Sales revenue
Account Titles Debit Credit
Accounts receivable $306,000
Cost of goods sold
Account Titles Debit Credit
Inventory $154,000
Salaries expense
Account Titles Debit Credit
Cash $54,000
Operating expenses
Account Titles Debit Credit
Cash $43,000
Bad Debts Expense
Account Titles Debit Credit
Allowance for
Doubtful Accounts $3,159
Allowance for Doubtful Accounts
Account Titles Debit Credit
Bad Debts Expense $3,159
b. Income Statement for the year 1 ended December 31:
Sales revenue $306,000
Cost of goods sold 154,000
Gross profit $152,000
Expenses:
Salaries expense 54,000
Operating expense 43,000
Bad debts expense 3,159 $100,159
Net operating income $51,841
Statement of changes in stockholders' equity:
Common Stock $80,000
Net operating income 51,841
Total Equity $131,841
Balance Sheet as of December 31:
Assets:
Cash $10,000
Accounts receivable 54,000
Allowance for
doubtful accounts 3,159 50,841
Inventory 86,000
Total assets $146,841
Liabilities and Equity:
Accounts payable $15,000
Equity $131,841
Total liabilities and equity $146,841
Statement of Cash Flows for the year 1 ended December 31:
Operating activities:
Net operating income $51,841
Add non-cash expense 3,159
Working-capital:
Accounts receivable -54,000
Inventory -86,000
Accounts payable 15,000
Net operating cash flow $(70,000)
Financing activities:
Common stock $80,000
Net cash flows $10,000
Reconciliation:
Ending cash balance $10,000
Beginning cash balance 0
Increase in net cash flows $10,000
Explanation:
a) Data and Transaction Analysis:
1. Cash $80,000 Common stock $80,000
2. Inventory $240,000 Accounts payable $240,000
3. Cost of goods sold $154,000 Inventory $154,000
3. Accounts receivable $306,000 Sales revenue $306,000
4. Cash $252,000 Accounts receivable $252,000
5. Accounts payable $225,000 Cash $225,000
6. Salaries expense $54,000 Cash $54,000
7. Operating expenses $43,000 Cash $43,000
8. Bad Debts Expense $3,159 Allowance for Doubtful Accounts $3,159
Aging of Accounts Receivable:
Number of Days Amount Percent Likely to Allowance
Past Due Be Uncollectible Balance
Current $ 32,400 0.01 $324
0−30 13,500 0.05 675
31−60 2,700 0.10 270
61−90 2,700 0.20 540
Over 90 days 2,700 0.50 1,350
Total $54,000 $3,159
Trial balance
Cash $10,000
Accounts receivable 54,000
Allowance for doubtful accounts $3,159
Inventory 86,000
Accounts payable 15,000
Common stock 80,000
Sales revenue 306,000
Cost of goods sold 154,000
Salaries expense 54,000
Operating expense 43,000
Bad debts expense 3,159
Totals $404,159 $404,159
The argument advanced by Milton Friedman for adopting a monetary growth rule is that A. the growth rate of M1 has been unstable. B. a constant rate of growth in the money supply would eliminate the booms and recessions that make up the business cycle. C. active monetary policy potentially destabilizes the economy. D. the Fed can control the money supply, but not the level of interest rates.
Answers
Answer:
C. active monetary policy potentially destabilizes the economy.
Explanation:
Budgeted Actual Sales volume 100 units 110 units Sales price $50 per unit $55 per unit Unit VC $30 per unit $33 per unit Input price for DL $10 per hour $12 per hour Input quantity per unit for DL 1.5 hours per unit 2 hours per unit Compute input efficiency variance for DL Group of answer choices $100 favorable $550 favorable $550 unfavorable 0.5 hours unfavorable $100 unfavorable
Answers
Answer:
Direct labor time (efficiency) variance= $550 unfavorable
Explanation:
Giving the following formula:
DL $10 per hour $12 per hour
Input quantity per unit for DL 1.5 hours per unit 2 hours per unit
To calculate the direct labor efficiency variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (110*1.5 - 110*2)*10
Direct labor time (efficiency) variance= $550 unfavorable
At the end of June, the Marquess Company factored $200,000 in accounts receivable with Homemark Finance. Homemark immediately remitted to Marquess cash equal to 90% of the factored amount. Factor will remit the excess to Marquess, an the remaining receivables has the estimated fair value of $15,000. The transfer is made without recourse. Homemark charges a fee of 3% of receivables factored. What amount of loss on sale of receivables would Marquess record in June?
a. $6,000.
b. $4.500.
c. $1,500.
d. $0.
Answers
Answer:
a. $6,000
Explanation:
Calculation to determine What amount of loss on sale of receivables would Marquess record in June
Using this formula
Loss on sale of receivables=Accounts receivable factored *Fee percentage of receivables factored
Let plug in the formula
Loss on sale of receivables =$200,000 × 3%
Loss on sale of receivables = $6,000
Therefore the amount of loss on sale of receivables that Marquess would record in June is $6,000
Using the rule of 72 how many years will it take to double $5,000 earning 4 percent interest
Answers
The rule says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years.
i HOPE IT'S HELPAnswer:
Explanation:
it’s 12 %
Assume the following: The standard price per pound is $2.00. The standard quantity of pounds allowed per unit of finished goods is 4 pounds. The actual quantity of materials purchased and used in production is 50,800 pounds. The actual purchase price per pound of materials was $2.20. The company produced 13,000 units of finished goods during the period. What is the materials price variance
Answers
Answer:
Direct material price variance =$10,160 unfavorable
Explanation:
Direct material price variance occurs when the actual quantity of materials are purchased at an actual price per unit higher or lower than the standard price.
Direct material price variance $
50,800 pounds should have cost (50,800× $2) = 101,600
but did cost (50,800× $2.20) = 111,760
Direct material price variance 10,160 unfavorable
Direct material price variance =$10,160 unfavorable
The materials price variance is $10,160 Unfavorable.
The difference between the standard cost and actual cost for the purchased actual quantity of material is the direct material price variance
The formulae for the direct Materials price variance is (Standard price – Actual price) * Actual quantity purchasedDirect Materials price variance = ($2.00 per pound – $2.20per pound) * 50800 pounds
Direct Materials price variance = ($0.20 * 50,800 pounds) Unfavorable
Direct Materials price variance = $10,160 Unfavorable
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On January 1, 2021, the Dayton Auto Parts Company acquired nine identical assembly robots for a total of $594,000 cash. The robots had an expected useful life of 10 years and an expected residual value of $54,000 in total. Dayton uses straight-line depreciation.1. What is the journal entry for the acquisition
Answers
Answer:
the journal entry for the acquisition
Debit : Assembly Robots $594,000
Credit: Cash $594,000
Explanation:
First, identify if the item is an asset, liability, equity or income. The assembly robots represents Assets as economic benefits will flow into the entity as a result of their use.
Next, assets are initially measured at their cost which is purchase price plus any costs directly related to placing the asset in the location and condition intended for use by management.
Cost of the Assembly Robots is $594,000
Selected financial data for Quick Sell, Inc., a retail store, appear as follows.
Year 2 Year 1
Sales (all on account) $ 750,000 $ 610,000
Cost of goods sold 495,000 408,000
Average inventory during the year 110,000 102,000
Average receivables during the year 150,000 100,000
a-1. Compute the gross profit percentage for both years. (Round your percentage answers to the nearest whole number. i.e. 0.1234 as 12%.)
a-2. Compute the inventory turnover for both years. (Round your answers to 1 decimal place.)
a-3. Compute the accounts receivable turnover for both years. (Round your answers to 1 decimal place.)
b. Which of the following show a positive or negative trend?
Year 1 Year 2
Gross profit percentage % %
Inventory turnover times times
Accounts receivable turnover times times
Trend
Gross profit rate
Inventory turnover
Accounts receivable turnover
Growth in net sales
Answers
Answer:
a-1
Year 2 34%
Year 1 33%
a-2
Year 2 4.5
Year 1 4.0
a-3
Year 2 5.0
Year 1 6.1
b. Year 2
Explanation:
a-1. Computation for the gross profit percentage for both years using this formula
Gross profit percentage = Gross profit / Sales
Let plug in the formula
Year 2 =( $ 750,000-495,000)/$ 750,000 = 34%
Year 1 = ($ 610,000-$408,000)/$ 610,000 = 33%
a-2. Computation for the inventory turnover for both years using this formula
Inventory turnover = Cost of goods sold / Average inventory during the year
Let plug in the formula
Year 2 = 495,000 /110,000 = 4.5
Year 1 = 408,000/102,000= 4.0
a-3. Computation for the accounts receivable turnover for both years using this formula
Accounts receivable turnover = Sales (on account) / Average receivables during the year
Let plug in the formula
Year 2 = $ 750,000 /150,000 = 5.0
Year 1 = $ 610,000 /100,000 = 6.1
b. Based on the above calculation Year 2 show a positive trend.
Based on the segment income statement below, Chips, Inc. is considering eliminating its Barbecue Division line. Revenue from Barbecue Division sales $ 510,000 Salaries for Barbecue Division workers (110,000 ) Direct material (315,000 ) Sunk costs (equipment depreciation) (77,500 ) Allocated company-wide facility-sustaining costs (55,000 ) Net loss $ (47,500 ) If Barbecue Division were eliminated, profitability would
Answers
Answer: Decrease by $70000
Explanation:
Before the Barbecue Division is eliminated, the profit gotten will be:
Revenue from Barbecue Division sales = $510,000
Less: Salaries = $110000
Less: Direct material = $315000
Profit = $70000
Therefore, based on the analysis above, If Barbecue Division were eliminated, profitability would decrease by $70000
iRobot Company is analyzing two machines to determine which one it should purchase. Whichever machine is purchased will be replaced at the end of its useful life. The company requires a 14 percent rate of return and uses straight-line depreciation to a zero book value over the life of the machine. Machine A has a cost of $487,000, annual operating costs of $29,000, and a 6-year life. Machine B costs $315,000, has annual operating costs of $51,200, and a 4-year life. The firm currently pays no taxes. Which machine should be purchased and why
Answers
Answer:
Machine A should be purchased because it has a lower equivalent annual cost . Hence, it is cheaper.
Explanation:
Equivalent Annual cost is the Present Value of the total cost over the investment period divided by the appropriate annuity factor.
Step 1 : Equivalent Annual cost of Machine A
PV of cash flows
PV of purchase cost = 487,000
PV of annual operating cost of $29,000
= 29,000× (1-(1+0.14)^(-6))/0.14
= 112,771.35
Total PV = 487,000 + 112,771.35= 599,771.35
Equivalent annual cost = 599,771.35 /3.889
Equivalent annual cost = 154,235.70
Step 2: Equivalent Annual cost of Machine B
PV of purchase cost = 315,000
PV of annual operating cost of $51,200
= 51,200× (1-(1+0.14)^(-4))/0.14
= 149,182.07
Total PV = 315,000+ 149,182.07
= 464,182.07
Equivalent annual cost = 464,182.07/2.9137
Equivalent annual cost = 159,309.51
Step 3: Compare equivalent Annual cost
Comparing the two equivalent costs, we conclude that Machine A should be purchased because it has a lower equivalent annual cost and therefore it is cheaper.