Answer:
Results are below.
Explanation:
To calculate the production budget for January, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
January:
Production= 10,000 + (12,000*0.2)
Production= 12,400 units
February:
Production= 12,000 + 13,000*0.2 - (12,000*0.2)
Production= 12,200
Now, the raw material budget:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 12,400*4 + (12,200*4)*0.4
Purchases= 69,120 pounds
Total cost= 69,120*2= $138,240
The Rob Wallace Corporation has a sales budget for next month of $400,000. Cost of goods sold is expected to be $250,000. All goods are paid for in the month following their purchase. The beginning inventory of merchandise is $16,000, and an ending inventory of $12,000 is desired. Beginning accounts payable is $52,000. How much merchandise inventory will The Rob Wallace Corporation need to purchase next month
Answer: $246000
Explanation:
The amount of merchandise inventory that The Rob Wallace Corporation need to purchase next month will be:
Expected Cost of goods sold = $250000
Less: Beginning Inventory = $16000
Add: Desired Ending Inventory = $12000
The, the Required Purchase of merchandise inventory will be:
= $250000 + $12000 - $16000
= $246000
R. Stetson contributed $14,000 in cash plus office equipment valued at $7,000 to the SJ Partnership. The journal entry to record the transaction for the partnership is:
a. Debit Cash $14,000; debit Office Equipment $7,000; credit R Stetson, Capital $21,000.
b. Debit Cash $14,000; debit Office Equipment $7,000; credit SJ Partnership, Capital $21,000.
c. Debit SJ Partnership $21,000; credit R. Stetson, Capital $21,000.
d. Debit R. Stetson, Capital $21,000; credit SJ Partnership, Capital $21,000.
e. Debit Cash $14,000; debit Office Equipment $7,000; credit Common Stock $21,000.
Answer:
A
Explanation:
Got question and got it right
Vegas Corp. is a U.S. firm that exports most of its products to Canada. It historically invoiced its products in Canadian dollars to accommodate the importers. However, it was adversely affected when the Canadian dollar weakened against the U.S. dollar. Since Vegas did not hedge, its Canadian dollar receivables were converted into a relatively small amount of U.S. dollars. After a few more years of continual concern about possible exchange rate movements, Vegas called its customers and requested that they pay for future orders with U.S. dollars instead of Canadian dollars. At this time, the Canadian dollar was valued at $.81. The customers decided to oblige, since the number of Canadian dollars to be converted into U.S. dollars when importing the goods from Vegas was still slightly smaller than the number of Canadian dollars that would be needed to buy the product from a Canadian manufacturer. Based on this situation, has transaction exposure changed for Vegas Corp.
Answer: See explanation
Explanation:
Transaction exposure is the uncertainty
which is faced by businesses that are involved in international trade. It occurs when there's fluctuation in the exchange rates after a financial obligation has been done by a firm.
From the question above, we can agree that there will be a change in transaction exposure for the company as there'll be a reduction in the transaction exposure. This is because future orders will be in U.S. dollars instead of Canadian dollars.
Identify which of the following statements is true. Group of answer choices All of the above are false. If a C corporation does not distribute its income to its shareholders annually, double taxation cannot occur. C corporation operating losses are deductible by the individual shareholders. Capital losses incurred by a C corporation can be used to offset the corporation's ordinary income.
Answer:
All of these are false
Explanation:
The c corporation is a corporation that is entered if the investors or shareholders are large. That is they exceed 100. The investors or shareholders pay taxes on dividends. They are subjected to what is called double taxation and are taxed separately from the owners. The obligations of the corporation are not personal to any individual and liability of the owners, workers or shareholders are limited
What are the steps to creating a query with the simple query wizard?
Answer:
1. With the database open, click the create tab.
2. In the Queries group, click Query Wizard.
3. Select the Simple Query Wizard, and click ok
4.In the Simple Query Wizard dialog box, select the tables to use, and use the arrow buttons to choose the fields to use in the query. Click Next.
5. Name the query and click finish.
Explanation:
just did it on edge
A simple query is a query that uses search with one parameter.
What do you know about Query Wizard?Query Wizard is a tool that allows you to automatically generate QueryPairs from Connections.
This is useful for Business Analysts, SMEs or other team members who have data and knowledge of business law, but who have recently participated in SQL.
A query Wizard can be created by following steps:
Click the create tab, once the database is open.Click Query Wizard in the Queries group.Select the Simple Query Wizard, and click okInside the Simple Query Wizard dialog box, select the tables to be used and use the arrow buttons to choose the fields to use in the query. Click Next.Name the query and click on finish.Thus,these are the steps for creating query wizard.
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Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. Accounts not yet due = $121,000; estimated uncollectible = 15%. Accounts 1–45 days past due = $16,800; estimated uncollectible = 20%. Accounts more than 45 days past due = $6,700; estimated uncollectible = 25%. Before recording any adjustments, Dhaliwal has a debit balance of $30,200 in its allowance for uncollectible accounts.
Required:
1. Estimate the appropriate 12/31/2021 balance for Dhaliwal’s allowance for uncollectible accounts.
2. What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts?
EXPLANATION:
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. 1. Accounts not yet due $285,000; estimated uncollectible 5 % . 2. Accounts 1-45 days past due $39,600; estimated uncollectible 10 % 3. Accounts more than 45 days past due $15,800; estimated uncollectible 15 % Before recording any adjustments, Dhaliwal has a debit balance of $71,100 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts. 2. What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts? Required 1 Required 2 Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts. Balance in allowance for uncollectible accounts Required 2
Dhallwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. 1. Accounts not yet due $285,000; estimated uncollectible 5 %. 2. Accounts 1-45 days past due $39,600; estimated uncollectible 10 %. 3. Accounts more than 45 days past due $15,800; estimated uncollectible 15 % Before recording any adjustments, Dhaliwal has a debit balance of $71,100 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31/2021 balance for Dhalwal's allowance for uncollectible accounts. 2. What journal entry should Dhallwal record to adjust its allowance for uncollectible accounts? Required 1| Required 2 What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts? (If no entry is required for a transaction/event, select "No jounal entry required" in the first account field.) View transaction list Journal entry worksheet Record the adjustment to allowance for uncollectible accounts. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal
Where would you rather invest and why?
A. Bonds
B. Mutual Funds
C. Stocks
D. Real Estate
E. CDs
F. others
Answer:
d
Explanation:
because you get payed more
Place each of the items listed below in the appropriate subdivision of the stockholders' equity section of a balance sheet. Common stock, $10 stated value Retained earnings 8% Preferred stock, $100 par value Paid-in capital in excess of par Paid-in capital in excess of stated value Treasury stock—common Paid-in capital from treasury stockStockholders' equityPaid-in capitalCapital stockAdditional paid-in capitalTotal additional paid-in capitalTotal paid-in capitalRetained earningsTotal paid-in capital and retained earningsTotal stockholders' equity
Answer and Explanation:
The placing of each item would be shown below:
Stockholder's Equity
Paid-in Capital
Capital Stock
8% Preferred stock, $100 par value
Common Stock, $10 stated value
Additional Paid-in Capital
In excess of par value- Preferred stock
In excess of stated Value - Common stock
Total Additional Paid-in Capital
Total Paid-in Capital
Retained Earnings
Total paid-in Capital and Retained Earnings
Less: Treasury Stock- common
Total Stockholder's Equity
Pearsall Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $113,000; benefits paid to retirees, $14,500; interest cost, $7,500. The discount rate applied by the actuary was 10%. What was the service cost for the year
Answer:
$45,000
Explanation:
Calculation to determine the service cost for the year
PBO, $113,000
Add benefits paid to retirees, $14,500
Less interest cost ($7,500)
Less Beginning PBO ($75,000)
($7,500/0.1)
Service cost $45,000
($113,000+$14,500-$7,500-$75,000)
Therefore the service cost for the year will be $45,000
The aggregate demand curve is downward sloping because production costs decline as real GDP increases. is upward sloping because a higher price level is necessary to make production profitable as production costs rise. shows the amount of expenditures required to induce the production of each possible level of real GDP. shows the amount of real GDP that will be demanded at each possible price level. g
Answer: shows the amount of real GDP that will be demanded at each possible price level.
Explanation:
The Aggregate Demand curve shows how much of real GDP is demanded at each possible price level which means that is shows the effect of the price level on real GDP.
If the price level rises, real GDP will decrease and if the price level falls, real GDP rises. This is why the aggregate demand curve is downward sloping, to reflect this inverse relationship between real GDP and price level.
Which of these production practices promotes sustainable development?
A. Bidding for government contracts
B. The use of renewable resources
C. Offshoring production
D. An assembly line
SUOMI
The production practice that will promote sustainable development is The use of renewable resources.
What is meant by the term renewable resources?Renewable resources are resources that have natural occurrence and overtime they can be replenished.
A major example of renewable resources coal, solar energy.
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Over a six-month period in 2007, the price of corn increased by almost 70% as a result of increased demand for ethanol biofuel.
a. As a result of the price increase in corn, the of corn would . At the same time, the amount of acreage used in corn production would
b. Which of the following would be the most likely cause of the change in the amount of acreage used in corn production?
A. The higher price signals suppliers that corn is becoming more valuable.
B. Consumers directly inform suppliers of the increased demand for corn.
C. The government mandates that U.S. corn producers increase the acreage they devote to corn production to keep up with demand.
D. Economists publish reports in trade magazines informing farmers of the increased demand for corn.
Answer:
a. As a result of the price increase in corn, the supply of corn would increase. At the same time, the amount of acreage used in corn production would increase.
b. The most likely cause of the change in the amount of acreage used in corn production is:
A. The higher price signals suppliers that corn is becoming more valuable.
Explanation:
With corn as the major ingredient for the production of ethanol biofuel the demand and supply of corn increase to match with the increasing price. Suppliers, on their part, increase production by utilizing more acreage of land devoted for corn production. This is the typical interplay between the market forces that drive market equilibrium.
Answer:
a. As a result of the price increase in corn, the quantity supplied of corn would increase. At the same time, the amount of acreage used in corn production would increase.
The most likely cause of the change in the amount of acreage used in corn production is the higher price signals suppliers that corn is becoming more valuable.
Explanation:
Corn is an input for ethanol biofuel. An increase in demand for ethanol biofuel results in an increase in the demand for corn. As more ethanol is being produced, more corn is used in the production process.
The increase in the demand for corn increases the price of corn. As the price of corn increases, there is an increase in the quantity supplied of corn. Farmers are growing larger quantities of corn, which results in an increase in the acreage used for corn production.
An increase in price causes a movement along the supply curve. It does not cause a shift of the supply curve.
Consumers do not directly inform farmers of their increase in the demand for corn. Price serves as the market signal. Consumers are willing to pay a higher price for corn, showing that they value corn more.
The government does not generally regulate what specific crop is grown on private farmland. Furthermore, economists may publish predictions, but farmers are most responsive to changes in market price.
At the end of April, Cavy Company had completed Jobs 766 and 765. The individual job cost sheets reveal the following information:Job Direct Materials Direct Labor Machine HoursJob 765 $6,160 $1,848 22Job 766 13,338 4,212 78Job 765 produced 132 units, and Job 766 consisted of 234 units.Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $107 per hour.a. Determine the balance on the job cost sheets for each job.
Answer: See explanation
Explanation:
The balance on the job cost sheets for each job will be:
Job 765:
Direct materials = $6160
Direct labor = $1848
Overhead cost = 22 × $107 = $2354
Total job cost = $6160 + $1848 + $2354 = $10362
Job 766:
Direct materials = $13338
Direct labor = $4212
Overhead cost = 78 × $107 = $8346
Total job cost = $13338 + $4212 + $8346 = $25896
When the original poverty line was created, even some people living above the poverty line did not have access to a phone or running water in their homes.
Today, running water is expected. Beyond that, the norm for our contemporary society includes having cell phones and internet access. In fact, the U.S. government provides grants to bring high-speed in-home internet access to underserved rural areas.
Consider both the benefits and the shortcomings of the U.S. poverty line as a means of assessing poverty today.
The U.S. poverty line was originally set at
a. an income level of $1.90 per day.
b. sufficient income to provide for a family of four.
c. one-third of the median income in the United States.
d. three times the cost of a low-cost food plan.
Answer:
d. three times the cost of a low-cost food plan.
Explanation:
The U.S. poverty line is measured based on three times the cost of low-cost food plan. The people in the rural areas are considered more poor and they are provided with basic necessities. The U.S. government takes initiatives to encourage rural population to contribute their expertise and strengths in some projects. They provide welfare benefit to those who are needy and can not survive on their earnings.
Hamlet has monotonic, strictly convex, quasilinear preferences over widgets,x, and money to spend on other goods,m, wheremis the linear term. Consider a $1 increase in the price of widgets. Hamlet knows that he if he were given $20 after the price change, his new optimal bundle would give him exactly the same utility that he had before the price change. Which of the following can be concluded from this information? (You may assume that Hamlet's income is large enough that however many widgets he might want to buy, he'll still have money left over for other goods.)
A) Hamlet's compensating variation is $20.
B) Hamlet's equivalent variation is $20.
C) Hamlet's (net) consumer surplus falls by $20 due to the price change.
D) All of the above are true.
E) None of the above are true.
Answer:
A) Hamlet's compensating variation is $20.
Explanation:
Hamlet is expecting pay rise of $20 but he thinks that his utility will remain the same. Hamlet is not getting any extra benefit due to his pay rise and his utility is same, this is compensating variation because his initial utility is not changed. Compensating variation is the extra amount of money which is needed to reach to initial utility.
somebody help pls name two business ethics that the Snack Corner failed to adhere to.
Answer:
create a news report paragraph by using active and passive verb forms fictional or real about an environmental event about earthquakes select a location city or country
Explanation:
員員員員員員員員A company’s production budget requires the following units of a single product for the upcoming year: 1st quarter 60,000 units 2nd quarter 80,000 units 3rd quarter 90,000 units 4th quarter 70,000 units Each unit requires two pounds of material. The company has a policy of keeping a stock of material on hand at the end of each quarter equal to 25% of the next quarter's production needs for material. A total of 30,000 pounds of material are on hand to start the year. Budgeted purchases of material for the second quarter would be:
Answer:
165,000 pounds
Explanation:
A Purchase Budget is required to determine the quantities and cost of purchases required for use in production.
Materials Purchase Budget for Second Quarter (Pounds)
Budgeted Production Materials (80,000 x 2) 160,000
Add Budgeted Closing Materials (90,000 x 2 x 25%) 45,000
Total Materials 205,000
Less Budgeted Opening Materials (80,000 x 2 x 25%) (40,000)
Budgeted Material Purchase (pounds) 165,000
Therefore,
Budgeted purchases of material for the second quarter would be 165,000 pounds
Beyoncé Corporation factors $175,000 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2014.Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments.Instructions:(a) What conditions must be met for a transfer of receivables with recourse to be accounted for as a sale?(b) Assume the conditions from part (a) are met. Prepare the journal entry on August 15, 2014, for Beyoncé to record the sale of receivables, assuming the recourse obligation has a fair value of $2,000.
Answer:
(a) What conditions must be met for a transfer of receivables with recourse to be accounted for as a sale?
The transferrer losses control over the transferred assets. The transferees possess the right collect, pledge or exchange the transferred assets. The transferred assets are separate form the transferrer.
(b) Assume the conditions from part (a) are met. Prepare the journal entry on August 15, 2014, for Beyoncé to record the sale of receivables, assuming the recourse obligation has a fair value of $2,000.
Dr Cash 164,500
Dr Factor receivables 7,000
Dr Loss from factoring dues 5,500
Cr Accounts receivables 175,000
Cr Recourse liability 2,000
Given the following model of the economy C = + YD I = G = T = Note: Answer all parts, a-k: a) What is the equilibrium value of Y? b) What is the value of autonomous consumption (c0)? c) What is the value of MPC? d) What is the value of MPS? e) What is the value of APC? f) What is the value of APS? g) Calculate private saving, public saving and national saving. h) Calculate the multiplier. i) What happens to the equilibrium value of Y if G increases by $150? j) What happens to the equilibrium value of Y if T increases by $150, and G remains at its original value of ? k) What happens to the equilibrium value of Y if both G & T increase by $150 from their original amounts? If your answer is not a whole number, round at 2 decimal places. If your answer is negative, enter a minus sign before the number. a) The equilibrium value of Y = $ nothing b) Autonomous consumption = $ nothing c) MPC = nothing d) MPS = nothing e) APC = nothing f) APS = nothing g) Private Saving = $ nothing Public Saving = $ nothing National Saving = $ nothing h) The multiplier = nothing i) The change in the equilibrium value of Y is $ nothing , and the new equilibrium value of Y = $ nothing
Answer:
a) The equilibrium value of Y is 41,180.
b) The value of autonomous consumption (c0) is 12557.
c) The value of MPC is 0.5.
d) The value of MPS is 0.5.
e) The value of APC is 0.70
f) The value of APS is 0.30
g) Private saving is 32286; Public saving is -1305; and National saving is 30981
h) Multiplier = 2
i) The equilibrium value of Y increases by $300.
j) The equilibrium value of Y decreases by $150.
k) The equilibrium value of Y increases by $150.
Explanation:
Note: The model is not complete as the figures in it are omitted. The complete model of the economy is therefore provided before answering the question as follows:
C = 12557 + 0.5YD
I = 2281
G = 10199
T = 8894
The explanation of the answers is now given as follows:
a) What is the equilibrium value of Y?
YD = Y - T .............. (1)
Equilibrium value of Y can be obtained using the following formula:
Y = C + G + I ............................ (2)
Substituting all the values into equation (2), we have:
Y = 12557 + 0.5YD + 2281 + 10199 ………………….. (3)
Substituting equation (1) into equation (3), we have:
Y = 12557 + 0.5(Y – T) + 2281 + 10199 ……………… (4)
Substitute T = 8894 into equation (4) and solve for Y, we have:
Y = 12557 + 0.5(Y – 8894) + 2281 + 10199
Y = 12557 + 0.5Y – (0.5 * 8894) + 2281 + 10199
Y – 0.5Y = 12557 – (0.5 * 8894) + 2281 + 10199
(1 - 0.5)Y = 20590
0.5Y = 20590
Y = 20590/0.5
Y = 41,180
b) What is the value of autonomous consumption (c0)?
From C = 12557 + 0.5YD, the value of autonomous consumption (c0) is 12557.
c) What is the value of MPC?
From C = 12557 + 0.5YD, the value of MPC is 0.5.
d) What is the value of MPS?
MPS = 1 – MPC = 1 – 0.5 = 0.5
e) What is the value of APC?
YD = Y – T = 41180 – 8894 = 32286
C = 12557 + 0.5YD = C = 12557 + (0.5 * 32286) = 28,700
APC = C / Y = 28700 / 41,180 = 0.70
Note: This is not part of the answer but just additional information. Sometimes, YD is used. Then, we have:
APC = C / YD = 28700 / 32286 = 0.89
f) What is the value of APS?
APS = 1 – APC = 1 – 0.70 = 0.30
Note: This is not part of the answer but just additional information. If YD is used to calculate APC as it can be done sometimes, then we have:
APC = C / YD = 28700 / 32286 = 0.89
APS = 1 – APC = 1 – 0.89 = 0.11
g) Calculate private saving, public saving and national saving.
Private saving = Y – T = 41180 – 8894 = 32286
Public saving = T – G = 8894 – 10199 = -1305
National saving = Private saving + Public saving = 32286 -1305 = 30981
h) Calculate the multiplier.
Multiplier = 1 / MPS = 1 / 0.5 = 2
i) What happens to the equilibrium value of Y if G increases by $150?
Change in Y = Increase in G * Multiplier = $150 * 2 = $300
Since it is positive, it implies that the equilibrium value of Y increases by $300
j) What happens to the equilibrium value of Y if T increases by $150, and G remains at its original value of ?
Tax multiplier = - MPC/MPS =-0.5/0.5 = -1.0
Change in Y = Increase in T * Tax multiplier = $150 * (-1.0) = -$150
Since it is negative, it implies that the equilibrium value of Y decreases by $150.
k) What happens to the equilibrium value of Y if both G & T increase by $150 from their original amounts?
Change in Y = Change in Y as a result of change in G + Change Y as a result change in T = $300 + (-$150) = $300 - $150 = $150
Since it is positive, it implies that the equilibrium value of Y increases by $150.
A liquid asset is one that is easy to cash in.
What is the most liquid asset?
Which is more liquid, a savings account or a loan to a business?
On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The first three are to be $37,000 each, and will be paid on December 31, 2021, 2022, and 2023. The last three are to be $52,000 each and will be paid on December 31, 2024, 2025, and 2026. Montgomery borrowed other money at a 11% annual rate. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. At what amount should Montgomery record the note payable and corresponding cost of the building on January 1, 2021
Answer:
cost of the building = $183,331.14
Explanation:
we have to calculate the present value of all the future annual payments using the 11% discount rate:
$37,000 x 2.4437 (PVIFA, 11%, 3 periods) = $90,416.90
($52,000 x 2.4437) / (1 + 11%)³ = $92,914.24
total present value = $183,331.14
Nutcracker, Inc has forecast sales for the next three months as follows: July 4,000 units, August 6,000 units, September 7,500 units. Nutcracker's policy is to have an ending inventory of 40% of the next month's sales needs on hand. July 1 inventory is projected to be 1,500 units. Selling and administrative costs are budgeted to be $15,000 per month plus $5 per unit sold. What are budgeted selling and administrative expenses for July
Answer:
$35,000
Explanation:
Use the provided cost formula :
Selling and administrative expense = $15,000 + $5y
where,
y is the number of units sold
Therefore,
Selling and administrative expense = $15,000 + $5 x 4,000 units
= $35,000
A cost center manager: Multiple Choice often oversees divisional operations. may be involved with the sale of new marketing programs to clients. may be the manager who oversees the operations of a retail store. does not have the ability to produce revenue. would normally be held accountable for producing an adequate return on invested capital.
Answer:
does not have the ability to produce revenue.
Explanation:
Cost center managers have the responsibility to manage all the transactions within the center. Cost center budget per year and all the expenses are also managed by the manager only. The manager also takes of the costs following the given budget and does not have any responsibility regarding the revenue.
A cost center manager does not have the ability to produce revenue.
External failure activities A. seek to prevent defects in the products or services being produced. B inspect inputs and attributes of individual units of products or services to detect whether they conform to specifications or customer expectations. C. correct defective processes or products and services before they are delivered to customers. D. are activities required after defective products or services are delivered to customers.
Answer:
D. are activities required after defective products or services are delivered to customers.
Explanation:
Six Sigma is a quality business management strategy which helps business organizations to improve the quality of processes, products and services by discovering and eliminating defects, variations or errors. It is a strategic business concept that was developed in 1986 by Motorola.
Under the six sigma approach, any process that doesn't provide customer satisfaction or causes challenges in an organisation's process should be eliminated from the system in order to produce quality products and services. It allows only 3.4 defective features for every million opportunities and as such expects processes to be defect free 99.99966 percent of the time.
The following activities are carried out in accordance with the Six Sigma model;
External failure activities are activities required after defective products or services are delivered to customers.
The other terminologies used in the manufacturing process includes;
- Prevention: seek to prevent defects in the products or services being produced.
- Appraisal: inspect inputs and attributes of individual units of products or services to detect whether they conform to specifications or customer expectations.
- Internal failure activities: correct defective processes or products and services before they are delivered to customers.
Assume you are the internal controls expert for your company. Your boss has read about Madoff’s Ponzi scheme described in our textbook. Your boss is now worried that your own company, which invests a significant amount of retirement funds for its employees, could fall victim to a similar scheme. He has just sent you a memo asking: "Which specific internal controls should our company adopt to avoid falling for a scheme like this?" Respond with a memo to your boss detailing at least three internal controls that you would recommend implementing at your company, assuming none are in place right now, to minimize the risk of becoming the victim of an investment fraud. For each internal control you recommend provide: A detailed description of the policy or procedure to be implemented. An explanation of how specifically it would mitigate the risk of being defrauded. A description of any disadvantages the internal control may have. After submitting your own initial post, change hats! Now assume you are the boss; read your classmates recommendations and question/challenge them as an effective boss would.
Answer:
There are many measures a company can undertake to uplift the standards of internal controls, however few of those are enumerated as under -
1. Due Diligence - almost everyone would suggest it but the implementation differs from company to company. The term encompasses wide activities i.e. from improving quality of internal audit to upkeeping of financial records etc. Keeping a check on existing & old investment pattern would certainly help in analyzing the response of investments as per prevailing market condition. Disadvantages of the process include involvment of additional manpower and cost.
2. Choosing right Investment firms and/or Fund Manager - In the complex business market which prevails today, finding the right guy seems to be a difficult job. It is important that we carefully study not only the investment patterns and subsequent returns of the Investment firms / Fund Manager but also background, qualifications and previous legal records to arrive at suitable guy for suitable job. Sometimes we choose a skeptical but a honest guy, which may lead to sacrifice in short term gains but particulary in retirement funds with long term goals, security of funds assume priority.
3. Selecting the financial products - Today there are numerous financial products available in the market, many of them offer fancy returns but the goals of such financial products must be re-aligned to the goals of the company and its employees. For the company a decent return over long run with high degree of security is the objective when it comes to retirement funds. The financial product must have an appropriate mix of debt, equity and liquid funds and particularly the component of debt must increase with the age of an employee which will ensure security of funds by the time he attains superannuation. Disadvantage majorly includes loss of returns due to less investment in equity during the final stages of career.
Explanation:
Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies $278,900 Depreciation expense 69,800 Utilities 29,800 Nurse salaries 259,300 Technician wages 118,200 Total operating room overhead $756,000 The overhead costs will be assigned to procedures, based on the number of surgical room hours. Poehling Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.1. Determine the predetermined operating room overhead rate for the year.
2. Bill Harris has a five-hours procedure on Jan 22. How much operating room overhead would be charged to his procedure, using the rate determined in part 1?
3. During January, the operating room was used 240 hours. The actual overhead costs incurred for January were $67,250. Determine the overhead under or over applied for the period.
Answer:
Results are below.
Explanation:
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
Total number of surgical room hours= (8*7)*52= 2,912 hours
Predetermined manufacturing overhead rate= 756,000 / 2,912
Predetermined manufacturing overhead rate= $259.61 per surgical room hour
Now, we can allocate costs using the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 259.61*5
Allocated MOH= $1,298.05
Finally, the under/over allocation for January:
Under/over applied overhead= real overhead - allocated overhead
Allocated overhead= 259.61*240= $62,306.4
Under/over applied overhead= 67,250 - 62,306.4
Underapplied overhead= $4,943.6
A policy maker argues that congestion on the roads can be solved by private ownership of the roads. He argues that if the roads were privately owned, then the externality of congestion would be fully internalized and solved by the market. Discuss this by first explaining the externality problem that leads to congestion, and then explain whether the private market would deliver the efficient level of roads.
Answer:
Externalities can be defined as those activities that incurs cost on another party.
Road congestion creates externalities such as increased time for travel, more pollution in a city, more likelihood of accidents, more stress for road users.
This externaliity is caused because road users think of the private benefits that they can get from using the road but they do not take the social cost into account. We have lots of drivers on the road and non of these drivers takes cognizance of the cost that other drivers get because of this.
If road are private, congestion is going to fall and there would be excludability. But this is a public good, turning it to a private good would cause issues. Private markets benefits out is positive externalities.
The term "externality" refers to elements and situations that occur off-road and cause congestion.
In this regard, we can say that:
The externality of congestion is created by the lack of urban infrastructure, the excess of vehicles on the streets, the lack of traffic inspection, and the lack of road maintenance.All of this allows for an accumulation of vehicles on urban roads, generating congestion, which affects the city in an imposing way.These problems have been treated as public order problems as roads are a public asset managed by the government. Many people believe that government management is the main problem and that if the roads were managed by private companies, these problems would be eliminated.
Although we can recognize that many of these externalities would be solved by private companies, treating the use of roads as a private asset would not solve the problem of congestion, as it would create other externalities, especially about the freedom to use roads.
With this, we can conclude that the externality of congestion would not be reduced with the use of private companies, but maintained with other factors.
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Mark and Lucy owned two stocks, Tinker Inc., and Chance Inc., that became worthless during year 8. The adjusted basis in Tinker was $300,000. Tinker was incorporated in year 2, and Mark and Lucy purchased their stock in year 4. Their adjusted basis in Chance was $200,000. Chance was incorporated in year 2, and Mark and Lucy were original stockholders. Both stocks were purchased for cash, and each corporation had total capital of $500,000. How much ordinary loss can Mark and Lucy deduct on their joint year 8 tax return as a result of these transactions
Answer:
$20,000
Explanation:
Adjusted basis in Tinker = $300,000
Tinker was incorporated in year 2 and Mark and Lucy purchased their stock in Year 4
adjusted basis in chance was $200,000, each corporation had total capital of $500,000
Determine how much ordinary loss can mark and Lucy deduct on their joint year 8 tax return
If your value of share falls and you suffer loss, due to section 1244 stock the taxpayer is allowed to deduct loss as an ordinary loss up to maximum of $50,000 for single and $100,000 if MFJ
Hence the loss to be calculated
sales consideration $---
less adjusted tax basis/ loss = ($20,000 )
based on section 1244 mark and Lucy loss of complete $20,000 will be allowed since it is below $100,000
Tar Heel Auto Parts owns a manufacturing facility that is currently sitting idle. The facility is located on a piece of land that cost $134,000 at the time Tar Heel Auto Parts bought it (several years ago). The facility itself cost $700,000 to build. The current book values of the land and the facility are $134,000 and $214,000, respectively. Tar Heel Auto Parts received a bid of $640,000 for the land and facility last week. They rejected this bid even though they were told that it is a reasonable offer in today's market. If Tar Heel Auto Parts were to consider using this land and facility in a new project, what cost, if any, should they include in the project analysis?
Answer:
Tar Heel Auto Parts
The cost that Tar Heel Auto Parts should include in their new project analysis for the land and facility should be:
= $640,000.
Explanation:
a) Data and Analysis:
Cost Book Value
Cost of a piece of land $134,000 $134,000
Cost of idle manufacturing facility $700,000 $214,000
Current market value of the land and facility = $640,000
b) The current market value of Tar Heel's land and facility is the relevant cost for project analysis. The book value and the cost prices are no longer relevant as they relate to the past and are sunk and historical costs. Sunk and historical costs do not make any difference in decision making. The fair or current market value is a future value that is useful for Tar Heel's project analysis and decision making.
Before year-end adjusting entries, Dunn Company's account balances at December 31, 2010, for accounts receivable and the related allowance for uncollectible accounts were $600,000 and $45,000, respectively. An aging of accounts receivable indicated that $62,500 of the December 31 receivables are expected to be uncollectible. The net realizable value of accounts receivable after adjustment is
Answer: $537500
Explanation:
The net realizable value of accounts receivable after adjustment will be the difference between the account receivable at December 31st and the expected uncollectible. This will be:
= $600,000 - $62,500
= $537500
Therefore, the answer is $537500