Answer:
True Cash Balance $7,688
Explanation:
The computation of the true cash balance is shown below:
Unadjusted Cash Balance as of May 31 $7,176
Add: Interest Earned $14
Note Collected by Bank $600
Less: NSF check ($67)
Less Bank charges ($35)
True Cash Balance $7,688
Hence, the true cash balance is $7,688 and the same is to be considered
Larkspur Incorporated factored $124,300 of accounts receivable with Cullumber Factors Inc. on a without-recourse basis. Cullumber assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable for possible adjustments.
Required:
Prepare the journal entry for Larkspur Incorporated and Cullumber Factors to record the factoring of the accounts receivable to Cullumber.
DR Cash 115,599
Due from Factor (Cullumber) 6,215
Loss on Sale of Receivables 2,486
CR Accounts Receivable 124,300
Working
Due from Factor = 5% * 124,300
= $6,215
Loss on sale of receivables = 2% * 124,300
= $2,486
Cash = 124,300 - 6,215 - 2,486
= $115,599
Cullumber Factors Inc.DR Accounts Receivable 124,300
CR Due to Larkspur 6,215
Financing Revenue 2,486
Cash 115,599
You recommend the following: We should discontinue our policy of reimbursing employees for meals and incidental expenses. In place of this policy, we should provide $100 daily stipends. This recommendation is best classified as what
Answer:
the options are missing:
Specific, actionable, and justified
Specific but not actionable and not justified
Specific and actionable but not justified
The answer is:
Specific, actionable, and justifiedThis proposition is very specific (it is the only thing that all three options agree upon).
In order for a recommendation to be actionable, it must be relevant and feasible.
This recommendation is feasible since 83% of the employees prefer the $100 stipend. It is also relevant because the company can save approximately $61 per employee per day.
This $61 savings per day per employee also makes this proposition justifiable since the company's employees travel a lot.
Reimbursement is the payment that the company does to its employees for their service. The proposal is Specific, actionable, and justified.
What is Reimbursement ?It is the money paid to the employees/customer/parties for their services provided. It's a business expense and paid after complying with the tax rules.
The proposal is Specific, actionable, and justified.
The recommendation should be feasible to be actionable. It is feasible because 83% of employees agreed to the $100 stipend daily for meals and incidental expenses. And it is at the same time beneficial to the company, as it would save $61 per employee per day.
Therefore, it can be said that the above explanation aptly describes the statement.
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Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $722. Selected data for the company’s operations last year follow:
Units in beginning inventory 0
Units produced 23,000
Units sold 20,000
Units in ending inventory 3,000
Variable costs per unit:
Direct materials $180
Direct labor $340
Variable manufacturing overhead $51
Variable selling and administrative $18
Fixed costs:
Fixed manufacturing overhead $940,000
Fixed selling and administrative $820,000
Required:
a. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan.
b. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.
Answer:
Results are below.
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Absorption costing:
Unitary fixed overhead= 940,000/23,000= $40.87
Unitary production cost= 180 + 340 + 51 +40.87
Unitary production cost= $610.87
Variable costing:
Unitary production cost= 180 + 340 + 51
Unitary production cost=$571
The absorption costing method includes all costs related to production and variable costs includes all variable production costs.
What are absorption costs?
Absorption costs, also known as absorption costs, are a management calculation method that combines both highly flexible and adjusted cost to produce a particular product.
Knowing the full cost of production per unit enables manufacturers to price their products.
Calculation of Production costs assuming that the method of Absorption costing:
[tex]\rm\,Unitary \;Fixed \;Overhead= \dfrac{\$940,000}{23,000}\\\\Unitary \;Fixed \;Overhead== \$40.87 \;per \;unit\\\\Unitary \;Production \;Cost= (180 + 340 + 51 +40.87)\\\\Unitary \; Production \;Cost= \$610.87[/tex]
b) Calculation of production costs by variable costing method:
[tex]\rm\,Unitary \; Production \;Cost= (\$180 +\$340 + \$51)\\\\Unitary \;Production \;Cost=\$571[/tex]
Hence, The unit product cost for one gamelan by applying absorption costing is $610.87 and by variable costing is $571.
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Potential Market – the set of consumers who profess some level of interest in a defined market offer Mass Market – the set of consumers who profess some level of interest in and have the requisite income to a defined market offer Available Market – the set of consumers with the interest, requisite income and access to a defined marketQualified Available Market – the set of consumers with the interest, requisite income, access and qualifications for a defined market offer offerHonda Ltd. of Japan is reviewing the motorcycle market of a Mid-Pacific island. A recent study revealed twenty percent (20%) of the island's 1,000,000 population exhibited an interest in owning a motorcycle. Of those interested, only fifty percent (50%) have the requisite income to purchase a Honda motorcycle. Three (3) Honda dealerships provide the island’s entire population with access to the defined market offer. However, twenty-five percent (25%) of the interested individuals with the requisite income and access to the defined market offer do not meet the island's minimum license age requirement of eighteen (18) years of age.Calculate the number, not percentage, of the people in each of the following levels of market definition. (Show calculations)a. Potential Marketb. Mass Marketc. Available Marketd. Qualified Available Market
Answer:
A
Potential market
Interested percentage of people x total population
1000000x20%
= 200000
B.
Mass market is potential market x those with requisite income in percentage
= 200000x50%
= 200000x0.5
= 100000
C
Available market is also mass market
= 100000
D.
Qualified market
Available market x minimum qualification in percentage
Percentage of Minimum qualification = 100 - 25%
= 75%
Qualified market = 100000x0.75
= 75000
If 60% of the population is female and 30% of females buy physical therapy services, and 70% of men buy physical therapy services, is there more demand for physical therapy from women or men?
Answer:
Men.
Explanation:
Well, 70% of 40% (100% - 60%) = 28% total population demand.
30% of 60% = 18%
28% > 18%
Clearly, men have more demand for physical therapy as compared with women.
What is the importance of population distribution?Multiple uses can be made of population distribution data among administrative areas. They often serve as the foundation for choosing the electoral districts. They offer fundamental information for population estimates and are helpful in relation to social, economic, and administrative planning.
Because out of the total 40% population of men 70% required therapy which is greater than, the total 60% of women population 30% required therapy.
Physical therapists are experts in the movement who enhance patients' quality of life by giving them individualized treatment plans, providing direct care, and educating them. Physical therapists provide diagnosis and care for patients of all ages, including those nearing the end of their lives.
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Which government tax incentive retirement account allows a person to contribute after-tax earnings?
a. Contribution matching
b. Roth IRA
c. Traditional IRA
d. 529 plan
Answer:
B.
Explanation:
If you look this question up on your main search engine, it should give you this answer. Let me know if it's wrong.
The tax incentive being provided by government to eligible taxpayers at the time of retirement that allows an individual for contributing after tax income is the Traditional IRA.
Option C is correct.
What is the after tax-income?After tax income is the amount being earned by individual after paying off the taxes on the basis of their filing status. It is determined by deducting tax expense from the amount of gross income.
Traditional IRA is one of the retirement account that permits a person for making contributions of gross revenues or after-tax revenues for investment. If the amount invested is complied with the rules as framed by tax authorities, then it can be considered for tax deductions. This leads to lowering of tax liability to some extent.
Therefore, the traditional IRA is the tax incentive allowing an individual on after tax income.
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Alice and Bob entered into a forward contract some time ago. Alice has the long position, while Bob has the short position. The forward contract will mature in three months and has a delivery price of $40. The current forward price for the contract is $42. The three-month risk-free interest rate (with continuous compounding) is 8%. What is the value Bob's position?
Answer:
$ - 1.96
Explanation:
After three months, Alice (long the contract) can buy the underlying by paying the delivery price of $40 which is $2 less than $42 the long position would have to pay if the contract was entered today.
DATA
Delivery price = $40
The three-month risk-free interest rate (with continuous compounding) =8%.
The current forward price = $42
Solution
So based on the present situation, Alice would be in $2 profit at the end of 3 months and Bob would be in $2 loss
Present value of Bob's loss (with continuous compounding) = 2\times e^{-0.08\times 0.25}
Present value of Bob's loss (with continuous compounding) = $1.96
The value of Bob's position is $ - 1.96
Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12-month and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2019, Bigham sold the following customer contracts:
Length of contract Total Proceeds
12 months $40,000
24 months $80,000
Determine the income to be recognized in taxable income in 2019 and 2020.
Length of Contract 2019 Income 2020 Income
12 months $ $
24 months $ $
Answer: See explanation
Explanation:
Length of contract: 12 months
Income recorded in 2019:
= $40,000 × 6/12
= $40,000 × 1/2
= $20,000
Income recorded in 2020:
= $40,000 × 6/12
= $40,000 × 1/2
= $20,000
Length of contract: 24 months
Income recorded in 2019:
= $80,000 × 6/24
= $80,000 × 1/4
= $20,000
Income recorded in 2020:
= $80,000 × 18/24
= $80,000 × 3/4
= $60,000
Part of implementing Quality Windows Limited new enterprise resource planning (ERP) software is ensuring all workstations and servers run secure applications. Since the ERP software is new, Quality Windows Limited needs a new policy to set security requirements for the software. This policy will guide administrators in developing procedures to ensure all client and server software is as secure as possible. The goal is to minimize exposure to threats to any part of the new ERP software or resources related to it.
Describe the goals that define a secure application. Specifically, you will write two policies to ensure Web browsers and Web servers are secure. All procedures and guidelines will be designed to fulfill the policies you create.
Answer the following questions for Web browser and Web server software:
a. What functions should this software application provide?
b. What functions should this software application prohibit?
c. What controls are necessary to ensure this applications software operates as intended?
d. What steps are necessary to validate that the software operates as intended?
Answer:
A)i) web browser software :
ii) web server software :
B) i) Web browser software: Auto-download updates and Tracking functionality
ii) web server software : unauthorized access and unsecure connection from web browse
C) i) Legal and regulatory controls
ii) Access controls
D) i) Validation process -
ii) Define Requirements-
iii) Develop:
iv)Testing: Test what has been developed
v) Review/Management :
Explanation:
A ) Functions that the software application should provide
i) web browser software : This functions requires the software to make requests from the relevant web pages and sending them to the web server software application and serve it up to customers
ii) web server software : This function means that the software should be able to store, process and deliver web pages to web browser applications’.
B) Functions that this software application should prohibit
i) Web browser software: Auto-download updates and Tracking functionality
ii) web server software : unauthorized access and unsecure connection from web browser
C) Controls that are necessary to ensure application software operates as intended
i) Legal and regulatory controls such as privacy laws, and copyright policies will help the software operate smoothly
ii) Access controls such as user authentication when a user is trying to login is very vital for the security of the user
D Steps necessary to validate that the software operates as intended
i) Validation process - The validation process is the first step which is intended to implement plans that identifies who has access to the software, what is been done on the software, and where the software is going to be accessed from.
ii) Define Requirements- defining the functions of the software and what the system can't do as well
iii) Develop: after Defining the requirements the next step is to develop the software in line with the defined requirements
iv)Testing: Test what has been developed
v) Review/Management : After successful testing of the product/software a review of the whole process before commercializing it is required as well
Analyzing Unearned Revenue Disclosures
The following disclosures (excerpted) are from the August 28, 2016, annual report of Costco Wholesale Corporation.
Revenue Recognition: We generally recognize sales, net of estimated returns, at the time the member takes possession of merchandise or receives services. When we collect payment from customers prior to the transfer of ownership of merchandise or the performance of services, the amount recieved is generally recorded as deferred revenue on the consolidated balance sheets until the sales or service is completed. Membership fee revenue represents annual membership fees paid by our memberships. We account for membership fee revenue, net of estimated refunds, on a deferred basis, whereby revenue is recognized ratably over the one-year membership period.
Revenue
($ millions) August 28, 2016 August 30, 2015 August 31, 2014
Net Sales $116,073 $113,666 $110,212
Membership fees 2,646 2,533 2,428
Total revenue $118,719 $116,199 $112,640
Current Liabilities ($ millions) August 28, 2016 August 30, 2015
Accounts payable $7,612 $9,011
Current portion of long-term debt 1,100 1,283
Accrued salaries and benefits 2,629 2,468
Accured member rewards 869 813
Deferred membership fees 1,362 1,269
Other current liabilities 2,003 1,695
Total current liabilities $15,575 $16,539
(a) Which of the following statements best explains in layman terms how Costco accounts for the cash received for its membership fees?
Because Costco does not know how many of its members will continue to the end of the year, cash received from members is recorded as a liability and recognized as revenue only at year-end.
When it receives cash, the company records it as a current liability. Then, it recognizes revenue evenly over the year.
The company records revenue when the cash is received.
Because Costco has a refund policy, the company records revenue when the cash is received, less an allowance for expected membership terminations.
Mark 1.00 out of 1.00
(b) Use the balance sheet information on Costco's Deferred Membership Fees liability account and its income statement revenues related to Membership Fees earned during 2016 to compute the cash that Costco received during 2016 for membership fees.
Total cash received (in $ millions) = $Answer
(c) Use the financial statement effects template to show the effect of the cash Costco received during 2016 for membership fees and the recognition of membership fees revenue for 2016.
Use negative signs with answers, when appropriate.
Balance Sheet
Transaction ($ millions)
Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital
Receive cash in advance for membership fees Answer Answer Answer Answer Answer
Recognized membership fees earned Answer Answer Answer Answer Answer
Income Statement
Revenue - Expenses = Net Income
Answer Answer Answer
Answer Answer Answer
Feedback
You have correctly selected 15.
Partially correct
Marks for this submission: 15.00/18.00.
Answer:
(a) Which of the following statements best explains in layman terms how Costco accounts for the cash received for its membership fees?
When it receives cash, the company records it as a current liability. Then, it recognizes revenue evenly over the year.(b) Use the balance sheet information on Costco's Deferred Membership Fees liability account and its income statement revenues related to Membership Fees earned during 2016 to compute the cash that Costco received during 2016 for membership fees.
beginning membership fees + cash received - membership fee revenue = ending membership fee balance
$1,269 + cash received - $2,646 = $1,362
cash received = $1,362 + $2,646 - $1,269 = $2,739 million
(c) Use the financial statement effects template to show the effect of the cash Costco received during 2016 for membership fees and the recognition of membership fees revenue for 2016.
Use negative signs with answers, when appropriate.
Balance Sheet
Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital
Receive cash in advance for membership fees ⇒ $2,739 + na = $2,739 + na + na
Recognized membership fees earned ⇒ na + na = -$2,646 + na + $2,646
Income Statement
Revenue - Expenses = Net Income
na na na
$2,646 na $2,646
In 2009, an 1893 Morgan silver dollar sold for $6,450. Required: What was the rate of return on this investment? (Do not include the percent sign (%). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Answer: 7.86%
Explanation:
Using the Future Value formula;
= Amount * ( 1 + r)^n
The question is looking for the rate so making that the subject would be;
Assuming the car was $1 in 1893,
And n = 2009 - 1893 = 116 years
FV = Amount * ( 1 + r)^n
( 1 + r)^n = FV/ Amount
1 ^n + r^n = FV / Amount
r = n√((FV/ Amount) / 1^n)
r = n√(FV/ Amount)
r = 116√(6,450/ 1)
= 1.07855
Subtract 1 for the percentage;
= 1.07855 - 1
= 7.86%
The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.:
Salaries:
Sales salaries: $402,000
Warehouse salaries 210,000
Office salaries 165,000
$777,000
Deductions:
Income tax withheld $135,975
Social security tax withheld 46,620
Medicare tax withheld 11,655
Retirement savings 17,094
Group insurance 13,986
$225,330
Tax rates assumed:
Social security 6%
Medicare 1.5%
State unemployment (employer only) 5.4%
Federal unemployment (employer only) 0.6%
Required:
Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
a. December 30, to record the payroll.
b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $40,000 is subject to unemployment compensation taxes.
Full question attached
Answer and Explanation:
Please find attached
By using focus group feedback, Kraft was able to develop a positioning strategy. Focus groups are what type of research?
Answer:
qualitative research
Explanation:
qualitative research deals with non-numerical data, it involves collection and analysing of data by open question method to gather in-depth information about the service/product situation from the respondent.
It should be noted that, Focus groups are qualitative research type research.
Focus groups can be as well regarded as market research, it is base on the logic of seeking the opinion, view, of people about a particular concept, product/services. It involves sourcing some number of people with purchase history or idea about a product to give "feedback".
Karen, an automobile mechanic employed by an auto dealership, is considering opening a fast-food franchise. If Karen decides not to acquire the fast-food franchise, any investigation expenses are:
Answer:
The right solution is "Not Deductible".
Explanation:
If everyone's investigation for a company or starting a company fails, costs classified into two broad categories besides you:
Unless you're a person and your effort to start a company isn't successful, there are 2 kinds of investments you have had in attempting to develop yourself in the company.The expenses clients used to have before you made an intention to open a particular business. These would be personal but non-deductible charges. They include other expenses incurred throughout a regular search for something like a company or equity investment opportunity or perhaps a thorough investigation into it. The expenditures you have in your effort to purchase or launch a particular venture. Such charges are capital expenditures, and that as a capital loss, you will subtract them.Robert needs his daily fix of coffee in the mid-afternoon and visits different coffee shops that will give him as much utility as possible, given his $20/month food budget. On Monday, the Blue Coffee Shop was selling espresso shots for $3 each and Robert added 3 shots to his cappuccino. By Friday, the Purple Coffee Shop offered espresso shots for $2 each, while all other prices remained the same, so Robert was bold and added 4 espresso shots to his hot beverage.
Required:
Given this information, plot Robert's demand curve for espresso shots.
Answer:
I drew Robert's demand curve for espresso shots assuming that it was a linear curve since the information contained in the question is limited to that.
A demand curve generally is downward sloping, since an increase in price will usually result in a higher quantity demanded (at least for normal goods).
What are the limitations and risks of a marketing strategy that does not contemplate the responses of your competitors
Answer:
Throughout the clarification section following, the definition of the given query is explained.
Explanation:
Right, businesses face fierce competition through competitiveness throughout today's time, because it has become extremely necessary for organizations to develop a marketing campaign that makes companies contemplate consumer response.
After all, if any business marketing plan doesn't somehow anticipate competition reaction, then all these threats can occur:
Someone's brand sales should decline as consumers should choose the brand of their rivals. Your company's market position as well as business growth would decline as well as the brand's rivals will rise. Throughout the life cycle of the product, your company will hit the decline point. Your business's share price could decline.Jupiter Explorers has $8,800 in sales. The profit margin is 4 percent. There are 5,300 shares of stock outstanding. The market price per share is $1.60. What is the price-earnings ratio
Answer:
Price earnings ratio = 24.09 (Approx)
Explanation:
Given:
Sale = $8,800
Profit margin = 4% = 0.04
Number of share = 5,300
Market price per share = $1.60
Find:
Price-earnings ratio
Computation:
Earnings Per share = Profit / Number of shares
Earnings Per share = [8,800 x 0.04] / 5300
Earnings Per share = $0.0664
Price earnings ratio = Market price per share / Earnings Per share
Price earnings ratio = 1.60/0.0664
Price earnings ratio = 24.09 (Approx)
Daily demand for a certain product is normally distributed with a mean of 138 and a standard deviation of 13. The supplier is reliable and maintains a constant lead time of 7 days. The cost of placing an order is $17 and the cost of holding inventory is $0.40 per unit per year. There are no stock-out costs, and unfilled orders are filled as soon as the order arrives. Assume sales occur over 358 days of the year.
Your goal here is to find the order quantity and reorder point to satisfy a 73 percent probability of not stocking out during the lead time.
a. To manage inventory, the company is using
Continuous review system
Periodic review system
b. Find the order quantity. (Round your answer to the nearest whole number.)
Order quantity books
c. Find the reorder point. (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.)
Reorder point
Answer:
A. Continuous review system
B. Order quantity = 2,049 Books
C. Reorder point=987
Explanation:
a. In order To manage inventory, the company is using what is called Continuous review system
b. Calculation to find the order quality
Using this formula
Order quantity = √((2DS)/H)
Let plug in the morning
Order quantity=√ ((2 x 49,404 x 17)/0.40)
Order quantity = 2,049 Books
(138*358=49,404)
C. Calculation for reorder point
First step is to find the σL
73 % S.L. - z = 0.613
Using this formula to find the σL
σL = (Lσ^2)
Let plug in the formula
σL=√(7(13)^2)
σL= 34.39
Second step is to find the Reorder point using this formula
R = d bar(L) + zσL
Let plug in the formula
Reorder point = (138)(7) + 0.613(34.39)
Reorder point = 966+21
Reorder point=987
Following are account balances (in millions of dollars) from a recent FedEx annual report, followed by several typical transactions. Assume that the following are account balances on May 31, 2014:
Property and equipment (net) $15,543
Retained earnings 12,716
Accounts payable 1702
Prepaid expenses 329
Accrued expenses payable 1894
Long-term notes payable 1667
Other noncurrent assets 3557
Common stock ($0. 10 par value) 32
Receivables $4,581
Other current assets 610
Cash 2328
Spare parts, supplies, and fuel 437
Other noncurrent liabilities 5616
Other current liabilities 1286
Additional paid-in capital 2472
These accounts are not necessarily in good order and have normal debit or credit balances. Assume the following transactions (in millions) occurred the next year ending May 31, 2015:
a. Provided delivery service to customers, receiving $21,704 in accounts receivable and $17,600 in cash.
b. Purchased new equipment costing $3,434; signed a long-term note.
c. Paid $13,864 cash to rent equipment and aircraft, with $10,136 for rental this year and the rest for rental next year.
d. Spent $3,864 cash to maintain and repair facilities and equipment during the year.
e. Collected $24,285 from customers on account.
f. Repaid $350 on a long-term note (ignore interest).
g. Issued 20 shares of additional stock for $16.
h. Paid employees $15,276 during the year.
i. Purchased for cash and used $8,564 in fuel for the aircraft and equipment during the year.
j. Paid $784 on accounts payable. Ordered $88 in spare parts and supplies.
Question Completion:
Prepare the necessary journal entries without the narration.
Answer:
FedEx
a. Debit Cash $17,600
Debit Accounts Receivable $21,704
Credit Service Revenue $39,304
b. Debit Equipment $3,434
Credit Note Payable (long-term) $3,434
c. Debit Rent Expense $10,136
Debit Prepaid Rent $3,728
Credit Cash Account $13,864
d. Debit Maintenance Expense $3,864
Credit Cash Account $3,864
e. Debit Cash Account $24,285
Credit Accounts Receivable $24,285
f. Debit Long-term Notes Payable $350
Credit Cash Account $350
g. Debit Cash Account $320
Credit Common Stock $2
Credit Additional paid-in capital $318
h. Debit Salaries and Wages Expense $15,276
Credit Cash Account $15,276
i. Debit Spare parts, supplies, and fuel Expense $8,564
Credit Cash Account $8,564
j. Debit Accounts Payable $784
Credit Cash Account $784
k. No journal is required.
Explanation:
With the above journal entries, the accountants at FedEx have recorded the listed business transactions for the first time in the accounts of FedEx. From the entries, these transactions will then be posted to the general ledger where accounts, transactions, and business events are summarized.
ogan Products computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 40,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $466,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Logan's actual manufacturing overhead for the year was $713,400 and its actual total direct labor was 41,000 hours.
Required:
Compute the company's pre-determined overhead rate for the year.
Answer:
Predetermined manufacturing overhead rate= $14.65 per direct labor hour
Explanation:
Giving the following information:
Estimated direct labor hours= 40,000
Estimated fixed overhead= $466,000
Estimated variable overhead rate= $3.00 per direct labor-hour.
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= (466,000/40,000) + 3
Predetermined manufacturing overhead rate= $14.65 per direct labor hour
g Phil rented out his home for 12 days and collected $50,000 of rental income. How much should Phil include in his gross income for the 12 rental days
Answer:
$0
Explanation:
The rules regarding rental income of your house are simple. You must include all income that you earn from renting your house, condo, etc., if the total rental period for the year is more than 14 days (15 days or more). Since Phil only rented his house for 12 days, then he does not need to include it in his gross income.
coomer co had net sales of 600000 net income of 35260 and average total assets of 680000 what is the return on total assets
Answer:Return on Total assets ==5.19%
Explanation:
Return on Total assets shows one the idea of the profitability of a company's assets in generating revenue before interest and taxes. it is expressed in percentage and its formula is given as
Return on Assets = Net Income (Earning before interest and taxes) / Average total assets
= 35,260/ 680,000 = 0.05185 x 100
=5.19%
Answer:
coomer heehee
Explanation:
Fort Corporation had the following transactions during its first month of operations: 1. Purchased raw materials on account, $85,000. 2. Raw Materials of $30,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,000 was classified as indirect materials. 3. Factory labor costs incurred were $175,000 of which $145,000 pertained to factory wages payable and $30,000 pertained to employer payroll taxes payable. 4. Time tickets indicated that $145,000 was direct labor and $30,000 was indirect labor. 5. Overhead costs incurred on account were $198,000. 6. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 7. Goods costing $115,000 are still incomplete at the end of the month; the other goods were completed and transferred to finished goods. 8. Finished goods costing $100,000 to manufacture were sold on account for $130,000.
Answer:
Follows are the solution to this question:
Explanation:
Services Names and descriptions of the accounts Dr. Cr.
1 Stock of raw resources 85000
Cash-able Accounts 85000
2 Stock of processes (30000-6000) 24000
Overhead of development 6000
Stock of raw materials 30000
3 employment manufacturer 175000
manufacturing plant wages 145000
Payroll Taxes 30000
4 Inventory job in process 145000
Overhead production 30000
Labor Plant 175000
5 Overhead production 198000
Cash-able Accounts 198000
6 Inventory of jobs in the process 217500
[tex](145000 \times 150 \%)[/tex]
Overhead of development 217500
7 Inventory of finished products 271500
Inventory job in process 271500
[tex](24000+145000+217500-115000)[/tex]
8 receivable Account 130000
Sales 130000
Wars sold at discount 100000
Inventory of finished products 100000
Mcmurtry Corporation sells a product for $250 per unit. The product's current sales are 13,600 units and its break-even sales are 10,608 units. The margin of safety as a percentage of sales is closest to:
Answer:
22%
Explanation:
Margin of Safety is the amount by which sales can fall before making a loss.
Margin of Safety = Expected Sales - Break-even Sales ÷ Expected Sales
= (13,600 - 10,608) ÷ 13,600
= 0.22 or 22%
Lahey Advertising Company’s trial balance at December 31 shows Supplies $8,800 and Supplies Expense $0. On December 31, there are $1,100 of supplies on hand.
Required:
Prepare the adjusting entry at December 31.
Answer: See attachment
Explanation:
The adjusting entries for Lahey Advertising Company has been solved and attached. It should be noted that the supplies expenses was calculated as:
= $8800 - $1100
= $7700
Kindly check the attachment for further analysis.
If an investment triples in value in seven years, the rate of return on the investment is nearest to:
Answer: 17%
Explanation:
Note that in the attachment
FV = future value
PV = present value
R = rate
n = number of years
After the calculation the answer is 17%
Kindly check the attachment for further details
Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
1. Stockholders invest $40,000 in cash in starting a real estate office operating as a corporation.
2. Purchased $500 of supplies on credit.
3. Purchased equipment for $25,000, paying $3,500 in cash and signed a 30-day, $21,500, note payable.
4. Real estate commissions billed to clients amount to $4,000.
5. Paid $700 in cash for the current month's rent.
6. Paid $250 cash on account for office supplies purchased in transaction 2.
7. Received a bill for $800 for advertising for the current month.
8. Paid $2,500 cash for office salaries.
9. Paid $1,200 cash dividends to stockholders.
10.Received a check for $2,000 from a client in payment on account for commissions billed in transaction 4.
Answer and Explanation:
The journal entries are shown below:
1. Cash $40,000
To Common stock $40,000
(Being invested amount is recorded)
2. Supplies Dr $500
To Account payable $500
(Being supplies purchased on account is recorded)
3. Equipment $25,000
To Cash $3,500
To Note payable $21,500
(Being equipment purchased is recorded)
4. Account receivable Dr $4,000
To Commission revenue $4,000
(being the commission revenue is recorded_
5. Rent expenses $700
To Cash $700
(Being rent paid in cash is recorded)
6. Accounts payable $250
To cash $250
(being cash paid is recorded)
7. Advertising expense Dr $800
To Account payable $800
(Being advertising expense is recorded)
8. Salaries expense $2,500
To cash $2,500
(being cash paid is recorded)
9. Dividend Dr $1,200
To cash $1,200
(being cash paid is recorded)
10. Bank Dr $2,000
To Account receivable $2,000
(being receiving of check is recorded)
Jeremy is married to Amy, who abandoned him in 2019. He has not seen or communicated with her since April of that year. He maintains a household in which their son, Evan, lives. Evan is age 25 and earns over $6,000 each year. For tax year 2020, Jeremy's filing status is: a.Head of household. b.Surviving spouse. c.Married, filing jointly. d.Married, filing separately.
Answer: d. Married, filing separately.
Explanation:
From the question, we are informed that Jeremy is married to Amy, who abandoned him in 2019 and that he has not seen or communicated with her since April of that year.
We are further told that he maintains a household in which their son, Evan, lives and that Evan is age 25 and earns over $6,000 each year.
For tax year 2020, Jeremy's filing status is married, filling separately. This is because we are told that Jeremy hasn't has not seen or communicated with her since April. Since they're not divorced, it means they're still married but filing separately.
A Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $26,900. The South Division's divisional segment margin is $42,800 and the West Division's divisional segment margin is $29,900. What is the amount of the common fixed expense not traceable to the individual divisions
Answer:
$45,800
Explanation:
Common fixed expense not traceable to the individual divisions = South division's divisional segment margin + west division's divisional segment - corporation's net operating income
Common fixed expense not traceable to the individual divisions = $42,800 + $29,900 - $26,900
Common fixed expense not traceable to the individual divisions = $45,800
Carol wants to invest money in a 6% Certificate of Deposit (CD) that compounds semiannually. Carol would like the account to have a balance of $50,000 five years from now. How much must Carol deposit to accomplish her goal
Answer:
the present value is $37,230.10
Explanation:
The computation of the present value is shown below:
As we know that
Future value = Present value × (1 + rate of interest)^time period
$50,000 = Present value × (1 + 0.06 ÷ 2)^5 × 2
$50,000 = Present value × (1.03)^10
$50,000 = Present value × 1.343
So, the present value is $37,230.10
hence, the present value is $37,230.10
We simply applied the above formula