Answer:
Decline
Explanation:
Answer:
Decline
Explanation:
Producer surplus is best defined as _________________. Select the correct answer below: the profit of producers when they make more goods than are demanded the profit of producers when there are too many producers for a certain demand in a market the profit that producers make above the cost of production the intangible profits producers make in addition to the goods they sell
Answer:
the profit that producers make above the cost of production.
Explanation:
Producer surplus is best defined as the profit that producers make above the cost of production.
Basically, it is the total amount of money that a particular producer of goods and services benefits (gains) from selling at the market price.
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.
11
Jeanne Crawford had $10,675.50 deposited in an account paying 6.5% interest compounded semiannually.
a) What is the amount in her account 2 years later?
b) What is the compound Interest?
Answer and Explanation:
The computation is shown below:
a. The amount in 2 years later is
As we know that
Amount = Principal × (1 + rate)^time period
= $10,675.50 × (1 + 6.5% ÷ 2)^2× 2
= $10,675.50 × (1 + 0.03125)^4
= $10,675.50 × 1.130982
= $12,073.80
b. Now the compound interest is
= Final Amount - principal amount
= $12,073.80 - $10,675.50
= $1,398.30
The above formulas should be applied
Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While departmental supervisors have been happy with the system, the factory manager has expressed considerable dissatisfaction with the information being generated by the system.
A report for the company's Assembly Department for the month of March follows:
Assembly Department
Cost Report
For the Month Ended March 31
Actual Results Planning Budget Variances
Machine-hours 15,000 20,000
Variable costs:
Supplies $9,300 $ 9,900 $600F
Scrap 32,200 34,500 2,300F
Indirect materials 93,800 111,000 17,200F
Fixed costs:
Wages and salaries 77,500 73,000 4,500 U
Equipment depreciation 103,000 103,000 -
Total cost $315,800 $331,400 $15,600F
After receiving a copy of this cost report, the supervisor of the Assembly Department stated, "These reports are super. It makes me feel really good to see how well things are going in my department. I can't understand why those people upstairs complain so much about the reports."
For the last several years, the company's marketing department has chronically failed to meet the sales goals expressed in the company's monthly budgets.
Required:
1. The company's president is uneasy about the cost reports, identify at least two reasons.
2. What kind of reports should be used to give better insight into how well departmental supervisors are controlling costs?
3. Complete the new performance report for the quarter, based on the Flexible Budget Performance approach.
4. Were costs well controlled in March?
Answer:
Westmont Corporation
1. One reason is that the actual results shows that budget performance was not more than 75% but the actual variable costs were more than 75%. Two, despite the above, the variance reports show a favorable outcome instead of an unfavorable one.
2. Using a flexible budget report will draw out better insight into the performance of the departmental supervisors and how they are controlling costs.
3. Assembly Department
Cost Report
For the Month Ended March 31
Actual Results Flexible Budget Variances
Machine-hours 15,000 20,000
Variable costs:
Supplies $9,300 $ 7,425 $1,875 U
Scrap 32,200 25,875 6,325 U
Indirect materials 93,800 83,250 10,550 U
Fixed costs:
Wages and salaries 77,500 73,000 4,500 U
Equipment depreciation 103,000 103,000 -
Total cost $315,800 $292,550 $23,250 U
4. The above report shows that costs were not well controlled in March. This contrasts with how performance was showed with the planning budget.
Explanation:
a) Data and Calculations:
Assembly Department
Cost Report
For the Month Ended March 31
Actual Results Planning Budget Variances
Machine-hours 15,000 20,000
Variable costs:
Supplies $9,300 $ 9,900 $600 F
Scrap 32,200 34,500 2,300 F
Indirect materials 93,800 111,000 17,200 F
Fixed costs:
Wages and salaries 77,500 73,000 4,500 U
Equipment depreciation 103,000 103,000 -
Total cost $315,800 $331,400 $15,600 F
Flexing the budget:
Machine-hours 15,000 20,000
Variable costs:
Supplies $9,900 *15,000/20,000 = $7,425
Scrap 34,500 *15,000/20,000 = $25,875
Indirect materials 111,000 *15,000/20,000 = $83,250
b) The flexible budget of the Assembly Department of Westmont Corporation shows that costs were overrun and overall variance was unfavorable unlike the report presented under the planning budget.
location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of 0.50, transportation cost, which has a weight of 0.40, and labor cost, which has a weight of 0.10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:____.
a. build a plant in both cities.
b. be indifferent between these locations.
c. choose Boston.
d. choose Akron.
e. reject both locations.
Answer:
e. reject both locations.
Explanation:
Akron's weighted score:
supply of raw materials = 0.5 x 60 = 30
transportation costs = 0.4 x 80 = 32
labor costs = 0.1 x 70 = 7
total composite score = 69
Boston's weighted score:
supply of raw materials = 0.5 x 70 = 35
transportation costs = 0.4 x 50 = 20
labor costs = 0.1 x 90 = 9
total composite score = 64
Phelps, Inc. had assets of $71,028, liabilities of $16,084, and 11,130 shares of outstanding common stock at December 31, 2017. Net income for 2017 was $8,236. The company had assets of $83,529, liabilities of $19,293, 10,897 shares of outstanding common stock, and its stock was trading at a price of $10 per share at December 31, 2018. Net income for 2018 was $10,114.
Required:
a. Calculate EPS for 2018.
b. Calculate ROE for 2018.
c. Calculate the Price/Earnings Ratio for 2018.
Answer:
a. Earning per share = Net income / Average no of shares outstanding
Average no of shares outstanding = (Beginning shares + Ending share)/2 = (11,130 + 10,897) / 2 = 11,013.5.
Earning per share = $10,114/11,013.5 shares = $0.9183
b. Return on equity = Net income / Average stockholders equity
Stockholders equity 2017 = $71,028-$16,084 = $54,944
Stockholders equity 2018 = $83,529-$19,293 = $64,236
Average Stockholders equity = ($54,944+$64,236)/2 = $59,590
Return on equity = $10,114/$59,590
Return on equity = 0.1697265
Return on equity = 16.97%
c. Price earnings ratio = Market price per share / Earnings per share
Price earnings ratio = $10/$0.9183
Price earnings ratio = 10.88968746596973
Price earnings ratio = 10.89
Samra lives in and attends a university in Brazil. Next semester, she plans to study abroad in Mongolia.
Therefore, Samra will demand and will supply_________ .
WatchMe is a manufacturer of designer watches based in Brazil. Though the watches are produced exclusively in Brazil, they are sold throughout the world. WatchMe does an especially robust business in Mongolia. Therefore, WatchMe will demand and will supply_________.
Answer:
A.) Mongolian tögrög , Brazilian real
B.) Brazilian real, Mongolian tögrög
Explanation:
Currency of Brazil is Brazilian real
Currency of Mongolia is Mongolian tögrög
A.)
Samra lives in and attends a university in Brazil. Next semester, she plans to study abroad in Mongolia.
Therefore, Samra will demand Mongolian tögrög and will supply Brazilian real.
B.)
Watch Me is a manufacturer of designer watches based in Brazil. Though the watches are produced exclusively in Brazil, they are sold throughout the world. Watch Me does an especially robust business in Mongolia. Therefore, Watch Me will demand Brazilian real and will supply Mongolian tögrög
Reason -
For the first part, samra is in need of Mongolian currency in order to make her plan in action to study abroad but at present she is holding with her Brazilian currency, so hereby the demand is considered of Mongolian currency and supply accordingly will be of Brazilian currency to complete the transaction.
For the second part, Watch Me is manufacturer based in Brazil and all the operations related to manufacture occurred exclusively in Brazil , so when sale of watches done in Mongolian currency , there is need to remit the sale consideration to the Brazil . Accordingly he has to change the Mongolian currency to Brazilian currency and as a result he is in demand of Brazilian real by way of supplying Mongolian currency in exchange.
Many influential economists, politicians, and business leaders think that a shift toward a more integrated and interdependent global economy is a good thing.
a. True
b. False
Answer:
A) true
Explanation:
Globalization can be regarded as process involving interaction as well as integration that exist among firms, peopl as well as government and companies worldwide. As a result of Globalization national as well as international companies has become stable and increased in competency and thriving in giving their very best in terms of their produced products.quality in technology as well as quality in education and health sector has also been increased as a result of Globalization. It should be noted that Many influential economists, politicians, and business leaders think that a shift toward a more integrated and interdependent global economy is a good thing.
Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing.
2019 2020 2021
Sales revenue $292,090 _________ $413,950
Sales returns and allowances (10,530) (13,790) (17847)
Net sales 281560 345,615 396103
Beginning inventory 19,340 34,400 _________
Ending inventory 34400 43065 49896
Purchases 247720 260,690 297,524
Purchase returns and allowances (4,760) (7,410) (10,070)
Freight-in 8,790 _________ 11,900
Cost of goods sold (236,690) (252735) (292,523)
Gross profit on sales 44,870 92,880 _________
Answer:
2020:
Sales revenue = Net Sales + Sales returns
= 345,615 + 13,790
= $359,405
Freight-In = Cost of goods sold - Beginning inventory - Purchases + Purchase returns + Ending inventory
= 252,735 - 34,400 - 260,690 + 43,065 + 7,410
= $8,120
2021:
Beginning inventory = Ending inventory 2020 = $43,065
Gross Profit on sales = Net sales - Cost of goods sold
= 396,103 - 292,523
= $103,580
Pittman Framing's cost formula for its supplies cost is $1,110 per month plus $11 per frame. For the month of November, the company planned for activity of 621 frames, but the actual level of activity was 611 frames. The actual supplies cost for the month was $8,250. The spending variance for supplies cost in November would be closest to:
Answer:
See below
Explanation:
Spending variance for supplies = Standard cost - Actual cost
Standard cost formulae = $1,110 per month + $11 per frame
Standard cost for actual output = $1,110 + ($11 × 611)
= $1,110 + $6,721
= $7,831
But actual cost = $8,250
Therefore,
Spending variance would be
= $7,831 - $8,250
= $419 unfavourable
The spending variance for supplies cost in November is closest to $419 unfavourable
Alex is an avid ornithologist and bird-watcher. He received a tweet from a colleague that the "pink-tufted warbler," a rare and exotic bird, was sighted only ten miles away from his workplace in a remote area. Disregarding the signs indicating "Private Road" and "Private Property", Alex drives to the site.
Answer:
trespass to land
Explanation:
how can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?
Answer:
The more electricity, communications, and transportation used in a nation's economy, it will give them a more developed country and a greater potential for increased industrialization
Bella Donna Company has 100,000 shares of $2 par common stock issued and outstanding as of January 1, 2018. The shares were originally issued for $8 per share. On February 3, 2018, Bella Donna repurchased 3,590 shares at $6 per share for the purposes of retiring them. What will be the balance in Paid in capital in excess of par after February 3rd transaction?
Answer:
$585,640
Explanation:
Paid in capital in excess of on January 1 , 2018
= 100,000 × ($8 - $2)
= $100,000 × $6
= $600,000
Paid in capital in excess of par on repurchased share for retiring
= 3,590 × ($6 - $2)
= 3,590 × $4
= $14,360
Therefore,
Balance in paid in capital in excess of par after February 3rd transaction
= $600,000 - $14,360
= $585,640
The following information describes production activities of Mercer Manufacturing for the year.
Actual direct materials used 31,000 1bs. at $5.80 per lb
Actual direct labor used 10,600 hours for a total of $217,300
Actual units produced . 63,000
Budgeted standards for each unit produced are 0.50 pounds of direct material at $5.75 per pound and 10 minutes $21.50 per hour.
AQ = Actual Quantity
SQ=Standard Quantity
AP =Actual Price
SP =Standard Price
AH =Actual Hours
SH= Standard Hours
AR= Actual Rate
SR= Standard Rate
(1) Compute the direct materials price and quantity variances
(2) Compute the direct labor rate and efficiency varian rect labor rate and efficiency variances.
Answer:
Results are below.
Explanation:
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (5.75 - 5.8)*31,000
Direct material price variance= $1,550 unfavorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (63,000*0.5 - 31,000)*5.75
Direct material quantity variance= $2,875 favorable
To calculate the direct labor rate and efficiency variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (10,500 - 10,600)*21.5
Direct labor time (efficiency) variance= $2,150 unfavorable
Standard quantity= (10/60)*63,000= 10,500 hours
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (21.5 - 20.5)*10,600
Direct labor rate variance= $10,600 favorable
Actual rate= 217,300 / 10,600= $20.5
The trial balance for Splish Brothers Inc. appears as follows: Splish Brothers Inc. Trial Balance December 31, 2022 Cash $340 Accounts Receivable 595 Prepaid Insurance 93 Supplies 205 Equipment 4560 Accumulated Depreciation, Equipment $680 Accounts Payable 438 Common Stock 1370 Retained Earnings 1600 Service Revenue 3415 Salaries and Wages Expense 1140 Rent Expense 570 $7503 $7503 If as of December 31, 2022, rent of $171 for December had not been recorded or paid, the adjusting entry would include a: debit to Rent Expense for $171 debit to Rent Payable for $171 credit to Cash for $171. credit to Accumulated Rent for $171.
Answer:
debit to Rent Expense for $171
Explanation:
The adjusting entry would be
Rent Expense $171
To Rent expenses payable $171
(Being Rent expense accounted is recorded)
Here the rent expense is debited as it increased the assets and credited the rent expense payable as it also increased the liabilities
Therefore the a option is correct
ANd, the rest of the options would be wrong
rdan Corporation expects to incur indirect overhead costs of $172,550 per month and direct manufacturing costs of $18 per unit. The expected production activity for the first four months of the year are as follows. January February March April Estimated production in units 5,300 7,300 4,800 6,400 Required Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. Allocate overhead costs to each month using the overhead rate computed in Requirement a. Calculate the total cost per unit for each month using the overhead allocated in Requirement b.
Answer:
Results are below.
Explanation:
Giving the following information:
Total estimated overhead costs= (172,550*4)= $690,200
Total estimated units= 23,800
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 690,200 / 23,800
Predetermined manufacturing overhead rate= $29 per unit
Now, we can allocate overhead to each month:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
January= 29*5,300= $153,700
February= 7,300*29= $211,700
March= 29*4,800= $139,200
April= 29*6,400= $185,600
Finally, the unitary total cost:
Unitary cost= 18 + 29= $47
In 2020, Bertha Jarow had a $28,000 loss from the sale of a personal residence. She also purchased from an individual inventor for $7,000 (and resold in two months for $18,000) a patent on a rubber bonding process. The patent had not yet been reduced to practice. Bertha purchased the patent as an investment. In addition, she had the following capital gains and losses from stock transactions:
Long-term capital loss ($6,000)
Long-term capital loss carryover from 2019 (12,000)
Short-term capital gain 21,000
Short-term capital loss (7,000)
Required:
What is Bertha's net capital gain or loss?
Answer:
Bertha has a net long-term capital loss of $ 7,000. Bertha has a net short-term capital gain of $ 14,000 As a result, Bertha has an overall net short-term capital gain of $ 7,000.
Explanation:
Bertha Jarrow had a $28,000 loss from the sale of a personal residence. She also purchased from an individual inventor for $7,000 (and resold in two months for $18,000) a patent on a rubber bonding process. The patent had not yet been reduced to practice. Bertha purchased the patent as an investment. In addition, she had the following capital gains and losses from stock transactions: Long-term capital loss carryover from 2018 ($6,000) (12,000) 21,000 (7,000) Short-term capital gain Short-term capital loss a. What is Bertha's net capital gain or loss? Bertha has a net long-term capital loss of $ 7,000. Bertha has a net short-term capital gain of $ 14,000 As a result, Bertha has an overall net short-term capital gain of $ 7,000.
b. Complete the letter to Bertha, explaining the tax treatment of the sale of her personal residence. Assume Bertha's income from other sources puts her in the 24% bracket. Nellen, Young, Raabe, & Maloney, CPAs 5191 Natorp Boulevard Mason, OH 45040 March 17, 2020, Ms. Bertha Jarow 120 West Street Ashland, OR 97520 Dear Ms. Jarow: This letter is in response to your request for an explanation of the tax treatment of the sale of your residence. As you know, the residence was sold for less than your cost. Thus, you had a $ loss on the residence sale. Because the home was a personal use asset, tax law does not allow that loss to be deducted on your tax return. Thank you for the opportunity to be of service. Please telephone me if you have additional questions.
At December 31, 2021 and 2020, P Co. had 58,000 shares of common stock and 5,800 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2021 or 2020. Net income for 2021 was $620,000. For 2021, basic earnings per common share amounted to: (Round your answer to 2 decimal places.)
Answer:
$10.19 per share
Explanation:
With regards to the above, the basic earnings per common share is seen below;
Preferred dividend = Shares × Par value × Shares percentage
= 5,800 × $100 × 5%
= $29,000
So, basic earning per share = (Net income - Preferred dividend) ÷ Common shares
= ($620,000 - $29,000) ÷ 58,000
= $10.19 per share
Therefore, for 2021, basic earnings per common share amounted to $10.19
how can a writer be grief when writing professional letters
A. By adding a writer be brief when writing professional letters
B. By adding background information
C. By avoiding words that end in " Ize or ton"
D. By writing a concise letters that addresses your purpose
Answer:
D. By writing a concise letters that addresses your purpose
Explanation:
Got it right.
Why is compound interest preferable to simple interest?
Compound interest pays at least double the interest on the principal
Compound interest is paid by the week or by the month, not only on
O Compound interest is based on the entire principal, not just a percer
O Compound interest pays interest on the principal and the interest ea
Answer:
Compound Interest, when it comes to investing, compound interest is better since it allows funds to grow at a faster rate than they would in an account with a simple interest rate. Compound interest comes into play when you're calculating the annual percentage yield.
Explanation:
I hope this helped a lot bro. Hope you make a 100 on your test or quiz. Can I get brainiest.
Answer:
D.) Compound interest pays interest both on the principal and the interest earned in each period.
Explanation:
On Edg
ALL the questions in this assignment will be assessed using a rubric with marks awarded for
displaying logic and coherence: sound knowledge of content, including at least three academie
articles - sourced from credible sources, application of theory, and adherence to SBS referencing
guidelines
Question 1 [30]
Write an essay to demonstrate your understanding of the economies of scale in a supply chain with
reference to cycle inventory by arguing whether a toothpaste manufacturer wanting to offer quantity
discounts to maximise its profit should offer lot-size-based or volume-based quantity discounts if it
wants to maximise total supply chain profits at the same time. Discuss the concepts of lot-size-based
and volume-based quantity discounts and summarise under what circumstances lot-size-based and
volume-based quantity discounts are applicable before you argue the case of the toothpaste
nanufacturer
uestion 2 [35]
Explanation:
Material prices, ordering costs, and keeping costs are the three major expense groups for the supermarket's inventory strategy. The money spent to Proctor and Gamble on the materials themselves is known as the material expense. Ordering prices, also known as procurement costs, are charged when a customer requests supplies from a retailer and are fixed so that they do not change depending on the scale of the order. Fixed examples include the following:
The costs include the time it takes to put the order, deal with the paperwork that comes with it, and the cost of shipping the order. The holding cost is the cost of keeping a single unit in inventory for a set amount of time, normally a year. This expense is subjective and covers the cost of capital as well as all of the costs of physically handling material, such as shrinkage, spoilage, or obsolescence, insurance, the cost of capital, the cost of storage space, and so on.
An airline is considering a project of replacement and upgrading of machinery that would improve efficiency. The new machinery costs $400 today and is expected to last for 5 years with no salvage value. Straight line depreciation will be used. Project inflows connected with the new machinery will begin in one year and are expected to be $200 each year for 5 consecutive years and project outflows will also begin in one year and are expected to be $90 each year for 5 consecutive years. The corporate tax rate is 32% and the required rate of return is 9%. Calculate the project's net present value.
$-9.48
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow = (revenue - cost - depreciation) (1 - tax rate) + depreciation
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
(400 - 0) / 5 = 80
(200 - 90- 80) x (1 - 0.32) + 80 = $100.40
Cash flow in year 0 = $-400
Cash flow each year from year 1 to 5 = $100.40
I = 9%
NPV = $-9.48
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Selling Something People Could Get for FREE". Is it possible? Comment with example.
Answer:
yes its possible. You could sell dirt
A company issues $90,000 of 9%, 10-year bonds dated January 1 that pay interest semiannually on June 30 and December 31 each year. If bonds are sold at par value, the issuer records the payment of principal at maturity with a (debit/credit) ________ to bond payable in the amount of _______. Multiple choice question. debit; $171,000 credit; $171,000 debit; $90,000 credit; $90,000 Need help
Answer:
Debit; $90,000
Explanation:
Based on the information given in a situation where the company issues the amount of $90,000 on January 1 which means that assuming the bonds are sold at par value, the issuer of the bonds will records the payment of principal at maturity with a DEBIT to bond payable in the amount of $90,000.
You are a manager at Baroque Space, a costume design company. Recently, your boss asked you to hire a new seamstress. You are now ready to begin recruiting. You know that if you useexternal recruiting, you will be likely to bring new skills into the company, so you decide to use that approach. Which of the following actions could you take to implement your decision?
a. Design a career path
b. Publish an advertisement on an Internet job site
c. Contact a local college recruiting office
Answer: Design a career path
Explanation:
The action that can be taken to implement the decision is having a career path.
A career path simply refers to the path taken by employees in an organization. This is essential as it'll make the worker have a smooth transition while performing their roles.
Which transaction involves a good?
A. Selling desk chairs
B. Washing windows
C. Providing technology support
D. Displaying an advertisement
Answer:
Providing technology support
Answer:
Explanation:
selling desk chairs, just got it right
Stockholders of Hudson Enterprises recently received an annual dividend of $2.50 per share. Three analysts are trying to determine the value of this stock based on expected future dividends. Each analyst uses a required return of 14%. Use appropriate dividend valuation models to find the value of Hudson stock under each of the following sets of assumptions:
a. Analyst A assumes dividends will remain constant at $2.50 for the indefinite future. Show D0, D1, r, g and Analyst A's price.
b. Analyst B assumes dividends will grow at a constant rate of 7% per year for the indefinite future. Show D0, D1, r, g and Analyst B's price.
c. Analyst C assumes dividends will grow at 14% for the next 2 years and will thereafter grow at a constant rate of 7% for the indefinite future. Show D0, D1, D2, D3, r, g and Analyst C's price.
d. Analyst D uses the market multiple approach to value a company's stock. Hudson has had an average P/E of 15 and an average P/S of 2 over the last few years. Earnings per share of $3 and sales per share of $20 are forecast for next year. What is Analyst D's price based on earnings? Based on Sales?
Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $158,000 Credit sales, $458,000 Selling and administrative expenses, $118,000 Sales returns and allowances, $38,000 Gross profit, $498,000 Accounts receivable, $185,000 Sales discounts, $22,000 Allowance for doubtful accounts credit balance, $2,000 Flyer estimates bad debt expense assuming that 1.5% of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded
Answer:
$8,870
Explanation:
Calculation to determine the balance in the allowance for doubtful accounts after bad debt expense is recorded
Using this formula
Balance in the allowance for doubtful accounts=
(Credit sales* Percentage of Credit sales)+Allowance for doubtful accounts credit balance
Let plug in the formula
Balance in the allowance for doubtful accounts= ($458,000*1.5%)+$2,000
Balance in the allowance for doubtful accounts=$6,870+$2,000
Balance in the allowance for doubtful accounts=$8,870
Therefore the balance in the allowance for doubtful accounts after bad debt expense is recorded will be $8,870
Cost behavior for variable overhead is more difficult to predict than the behavior of direct materials or direct labor cost for all the following reasons except: A. Multiple cost drivers are involved with variable overhead. B. Direct material and direct labor contain no semi-variable component. C. The variable portion of overhead must first be separated from the fixed portion. D. Variable overhead is a relatively small part of total overhead.
Answer:
D. Variable overhead is a relatively small part of total overhead.
Explanation:
The variable overhead of the cost behavior would become more difficult for estimation as compared with the behavior of direct materials or direct labor for all the given reasons but it should not be valid for the variable overhead that contains small part of the total overhead
Therefore according to the given situation, the option D is correct
Job Order Cost Accounting Entries for a Service Business Media Connect Inc. provides advertising services for clients across the nation. Media Connect is presently working on four projects, each for a different client. Media Connect accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 40% of media purchases. On April 1, the four advertising projects had the following accumulated costs:
April 1 Balances
First Bank $40,000
Reliable Airlines 18,000
Motel 26 33,000
Blue Mountain Beverages 27,000
During April, Media Connect incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts:
Direct Labor Media Purchases
First Bank $115,000 $ 480,000
Reliable Airlines 84,000 320,000
Motel 26 110,000 200,000
Blue Mountain Beverages 125,000 300,000
At the end of April, both the First Bank and Reliable Airlines campaigns were completed. The costs of completed campaigns are added to the cost of services account. Determine each of the following for the month:
a. Direct labor costs.
b. Media purchases.
c. Overhead applied.
d. Cost of completed First Bank and Reliable Airlines campaigns.
Total Costs
First Bank $
Reliable Airlines $
Answer:
A. $434,000
B. $1,300,000
C. $520,000
D. First bank $827,000
Reliable Airlines $550,000
Explanation:
A. Calculation to determine the Direct labor costs.
Direct Labor
First Bank $115,000
Reliable Airlines 84,000
Motel 26 110,000
Blue Mountain Beverages 125,000
Total $434,000
B. Calculation to determine the Media purchases
Media Purchases
First Bank $ 480,000
Reliable Airlines 320,000
Motel 26 200,000
Blue Mountain Beverages 300,000
Total $1,300,000
C. Calculation to determine the Overhead applied
Overhead applied=$1,300,000*40%
Overhead applied=$520,000
D. Calculation to determine the Total cost for First bank and Reliable Airlines
First bank=$40,000+$115,000+$ 480,000+($ 480,000*40%)
First bank=$40,000+$115,000+$ 480,000+$192,000
First bank=$827,000
Reliable Airlines=$18,000+84,000+320,000+(320,000*40%)
Reliable Airlines=$18,000+84,000+320,000+$128,000
Reliable Airlines=$550,000
Therefore Total cost for is First bank $827,000 and Reliable Airlines is $550,000
All of the following are cash and cash equivalents, EXCEPT *
Savings deposit
Money maker placement
Cash to be paid by a debtor
Currency that is legal tender
Answer:
money maker placements