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
Triec, Inc., is a small electrical contracting company in Springfield, Ohio, owned by its executives Yeazell, Jones, and Heaton. Employees contacted the International Brotherhood of Electrical Workers, which began an organizing drive, and 6 of the 11 employees in the bargaining unit signed authorization cards. The company declined to recognize the union, which petitioned the NLRB to schedule an election. The company then granted several new benefits for all workers, including higher wages, paid vacations, and other measures. When the election was held, only 2 of the 11 bargaining unit members voted for the union. Did the company violate the NLRA?
Answer:
Triec, inc., violated the National Labor Relations Act (NLRA) because it directly interfered with the organization of a union within the company.
The NLRA allows private employees to join or form a union, and the company cannot interfere in any of these. E.g. a company cannot fire or punish in any way an employee for joining a union. A company cannot interfere with the creation of a union.
In this case, the company granted the new benefits in order to convince its workers to not form the union.
Wave Marine Products had sales revenue of $850,000 for the year-ended December 31, 2017.
a. December revenue totaled $120,000, and in addition, Big Wave collected sales tax of 5%. The tax amount will be sent to the state of Florida early in January.
b. On August 31, Big Wave signed a six-month, 4% note payable to purchase a boat costing $85,000. The note requires payment of principal and interest at maturity
c. On August 31 Big Wave received cash of S2,400 in advance for service revenue. This revenue will be earned evenly over six months.
d. Revenues of $850,000 were covered by Big Wave service warranty. At January 1, estimated warranty payable was $11,600. During the year, Big Wave recorded warranty expense of $34,000 and paid warranty claims of $34,800.
e. Big Wave owes $70,000 on a long-term note payable. At December 31, 12% interest for the year plus $35,000 of this principal are payable within one year.
Required:
For each item, indicate the account and the related amount to be reported as a current liability on the Big Wave Marine balance sheet at December 31.
Answer: Check explanation
Explanation:
a. Sales tax payable
Amount = $120,000 × 5%
= $120,000 × 0.05
= $6000
b. Notes payable, short term
Amount = $85000
Interest payable = $85000 × 4% × 4/12
= $1133.3
c. Unearned revenue
Amount: $2400 × 2/6
= $800
d. Accrued Warranty Payable
Amount = $11600 + $34000 - $34800
= $10800
e. Current portion of long term note payable
Amount = $35,000
Interest payable
Amount = $70000 × 12%
= $8400
The following selected transactions were completed by Capers Company during October of the current year:
Oct. 1 Purchased merchandise from Hoagie Co., $9,950, terms FOB shipping point, 2/10, n/eom.
2 Prepaid freight of $220 was added to the invoice.
4 Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30.
6 Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4.
13 Paid Hoagie Co. for invoice of October 3.
14 Paid Taco Co. for invoice of October 4 less debit memo of October 6.
19 Purchased merchandise from Veggie Co., $27,300, terms FOB shipping point, n/eom.
19 Paid freight of $400 on October 19 purchase from Veggie Co.
20 Purchased merchandise from Caesar Salad Co., $22,000, terms FOB destination, 1/10, n/30.
30 Paid Caesar Salad Co. for invoice of October 20.
31 Paid UK Imports Co. for invoice of October 1.
31 Paid Veggie Co. for invoice of October 19.
Required:
Journalize the entries to record the transactions of Capers Company for October.
Answer and Explanation:
Answer and explanation attached
Sheridan Company pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Sheridan accrues salaries expense only at its December 31 year end. Data relating to salaries earned in December 2020 are as follows: Last payroll was paid on 12/26/20, for the 2-week period ended 12/26/20. Overtime pay earned in the 2-week period ended 12/26/20 was $24000. Remaining work days in 2020 were December 29, 30, 31, on which days there was no overtime. The recurring biweekly salaries total $444000.
Assuming a five-day workweek, Sheridan should record a liability at December 31, 2020 for accrued salaries of:_________.
a. $266400
b. $290400
c. $133200
d. $157200
Answer:Sheridan should record a liability at December 31, 2020 for accrued salaries of =d. $157200
Explanation:
Since there are 5 workdays in a week
we consider First, Workdays Biweekly (Two weeks)
= 5 work days per week X 2 = 10 days
then the Remaining work days in 2020 for December 29,30 and 31 = 3 days
Accrued salaries = Recurring biweekly salaries/10 days X 3 days + Overtime pay earned in the 2-week period ended 12/26/20
$444,000/10 days x 3 days + $24000
$133,200 +$24000
= $157,200
What term means an explosive and seemingly uncontrollable inflation in which money loses value rapidly and may even go out of use? A. deflation B. hyperinflation C. stagflation D. maginflation
Answer:
hyperinflation
Explanation:
Hyperinflation is a term in economics that denotes an out-of-control, rise in prices of goods and services . When the inflation rate is rapidly rising, say by more than 50% per month, then it is a case of hyperinflation.
Hence, hyperinflation is an explosive and seemingly uncontrollable inflation in which money loses value rapidly and may even go out of use.
Thirteen students entered the business program at Sante Fe College 2 years ago. The following table indicates what each student scored on the high school SAT math exam and their grade-point averages (GPAs) after students were in the Sante Fe program for 2 years.
Student A B C D E F G
SAT Score 421 375 585 693 608 392 418
GPA 2.93 2.87 3.03 3.42 3.66 2.91 2.12
Student H I J K L M
SAT Score 484 725 506 613 706 366
GPA 2.50 3.24 1.97 2.73 3.88 1.58
The least-squares regression equation that shows the best relationship between GPA and the SAT score is:________ (round your responses to four decimal places)
Answer:
ŷ = 0.0035X + 1.0030
Explanation:
Given the data :
Student A B C D E F G H I J K L M
SAT Score: 421 375 585 693 608 392 418 484 725 506 613 706 366
GPA: 2.93 2.87 3.03 3.42 3.66 2.91 2.12 2.50 3.24 1.97 2.73 3.88 1.58
We can obtain the Least square regression calculator, we can obtain the least square regression equation in the Format :
y = mx + c
Where ; m = gradient / slope
x = predictor variable ; c = intercept
y = Independent variable.
The model equation produced by the calculator is :
ŷ = 0.0035X + 1.0030
y predicted variable ; x = explanatory variable
0.0035 = slope or gradient ; 1.0030 = intercept
Find out more information about sat score here:
https://brainly.com/question/2264831
A processor makes two components, A and B, which are then packaged together as the final product (each product sold contains one A and one B). The processor can do only one component at a time: either it can make As or it can make Bs. There is a setup time when switching from A to B.
Current plans are to make 100 units of component A, then 100 units of component B, then 100 units of component A, then 100 units of component B, and so forth, where the setup and run times for each component are given below.
COMPONENT SETUP/CHANGEOVER TIME RUN TIME/UNIT
A 5 minutes 0.2 minute
B 10 minutes 0.1 minute
Assume the packaging of the two components is totally automated and takes only two seconds per unit of the final product. This packaging time is small enough that you can ignore it.
Require:
What is the average hourly output, in terms of the number of units of packaged product (which includes one component A and one component B)?
Answer:
133 Packets per hour
Explanation:
Component Setup time A Run time B Total time A+B
A 5 20 25 minute
(0.2*100)
B 10 10 20 minute
(0.1*100)
Production time for 100 units of A+B 45 Minutes
Average hourly output = 60/45 * 100
Average hourly output = 1.33 * 100
Average hourly output = 133 Packets per hour
Liam Wallace is general manager of moonwalk salons. during 2016 while this works for the company all year at a $13600 monthly salary he also earned a year end bonus = 15% of his annual salary. Wallace's federal income tax withheld during 2016 was $952 per month plus $3672 on his bonus check. state income tax withheld came to a $150 per month plus $90 on bonuses. FICA tax was withheld on annual earnings. Wallace authorized the following payroll deductions charity fund contribution of 3% of total earnings and life insurance of $50 per month.
1. Compute Wallace's gross pay, payroll deductions, and net pay for the full year 2016. Round all amounts to the nearest dollar
2. Compute Moonwalk's total 2016 payroll expense for Wallace
3. Make the journal entry to record Moonwalk's expense for Wallace's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required
4. Make the journal entry to record the accrual of Moonwalk's payroll tax expense for Wallace's total earnings.
Answer:
1. Gross Pay = Salary + Bonus
= (13,600 * 12) + (15% * (13,600 * 12))
= 163,200 + 24,480
= $187,680
2.Wallace 2016 Payroll = Gross Pay - Deductions
Deductions
= FICA-Social security tax + FICA-Medicare tax + Federal income tax + State income tax + Charity Fund contribution + Life insurance contribution
= (6.2% x 117,000) + (1.45% x 187,680) + {(952 x 12) + 3,672} + {(150 x 12) + 90} + (3% x 187,680) + (50 x 12)
= 7,254 + 2,721.36 + 15,096 + 1,890 + 5,630.40 + 600
= $33,191.76
Wallace 2016 Payroll = 187,680 - 33,191.76
= $154,488.24
3.
DR Salaries Expense 163,200
Bonus Expense 24,480
CR FICA-Social Security Tax Payable 7,254
FICA- Medicare Tax Payable 2,721.36
Federal Income tax payable 15,096
State Income tax payable 1,890
Charity Fund Payable 5,630.90
Life Insurance Payable 600
Cash 154,488.24
4. Moonwalk's payroll tax expense for Wallace's total earnings.
DR Payroll Tax Expense 10,395.36
CR FICA-Social Security Tax Payable 7,254
FICA- Medicare Tax Payable 2,721.36
FUTA Payable (0.6% * 7,000) 42
SUTA Payable ( 5.4% * 7,000) 378
Here are comparative statement data for Crane Company and Sheridan Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016.
Crane Company Sheridan Company
2017 2016 2017 2016
Net sales $1,855,000 $596,000
Cost of goods sold 1,063,000 291,000
Operating expenses 265,000 89,000
Interest expense 8,600 3,200
Income tax expense 74,900 35,000
Current assets 534,599 $512,352 136,671 $130,326
Plant assets (net) 863,952 820,000 229,154 206,332
Current liabilities 08,773 124,337 57,971 49,661
Long-term liabilities 186,944 147,600 48,577 41,000
Common stock, $10 par 820,000 820,000 196,800 196,800
Retained earnings 282,834 240,416 62,477 49,197
Prepare a vertical analysis of the 2017 income statement data for Crane Company and Sheridan Company.
Answer:
Please see attached.
Explanation:
Please see attached vertical analysis of the 2017 income statement data for Crane company and Sheridan company.
Note: The percent for each company - Crane and Sheridan is arrived at by dividing each item( expense or income) by sales multiplied by 100.
For instance for Crane, the percentage for Gross profit is = ($792,000 / $1,855,000 ) × 100
= 42.7%
Sanborn Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year.
Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity
Ordering and Receiving Orders $120,000 500 orders
Machine Setup Setups 297,000 450 setups
Machining Machine hours 1,500,000 125,000 MH
Assembly Parts 1,200,000 1,000,000 parts
Inspection Inspections 300,000 500 inspections
If overhead is applied using traditional-based costing on direct labor hours, the overhead application rate is:___________.
a) 9.60
b) 12.00
c) 15.00
d) 34.17
Answer:
Predetermined manufacturing overhead rate= $34.17 per direct labor hour
Explanation:
Giving the following information:
Direct labor hours are estimated at 100,000 for the year.
Ordering and Receiving $120,000
Machine Setup $297,000
Machining $1,500,000
Assembly $1,200,000
Inspection $300,000
Total estimated overhead= $3,417,000
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= 3,417,000/100,000
Predetermined manufacturing overhead rate= $34.17 per direct labor hour
Hector was prosecuted following police seizure of 80 pounds of drugs from his airplane. The seizure was held to be unlawful, the evidence was sup- pressed, and the suit against Hector was dismissed. He sued the government officials involved in his arrest and prosecution to recover $3,500 in bail bond expenses, $23,000 in attorney's fees, and $2,000 in travel costs. The district court held he could not recover the costs incurred during the criminal prosecution. Hector appealed. Can he recover the costs? (Hector v. Watt, 235 F.3d 154, 3rd Cir. (2000)]
Answer:
Hector will lose.
Explanation:
If someone suffers an illegal search or seizure, he/she can recover any costs associated with that incident, e.g. property damage, injuries (both physical or to their reputation, lawyers, etc.). But if the illegal search actually results in some criminal evidence being discovered, then you cannot recover any costs. Anything seized illegally will be dismissed, but the reward is not going to jail even if they committed a crime, they get no money back.
Why only ask for a refund of his lawyer's fees, he should also ask for a refund for the value of the drugs? This lawsuit is absolutely ridiculous.
CVP, Not for profit Monroe Classical Music Society is a not-for-profit organization that brings guest artists to the community’s greater metropolitan area. The Music Society just bought a small concert hall in the center of town to house its performances. The mortgage payments on the concert hall are expected to be $2,000 per month. The organization pays its guest performers $1,000 per concert and anticipates corresponding ticket sales to be $2,500 per event. The Music Society also incurs costs of approximately $500 per concert for marketing and advertising. The organization pays its artistic director $50,000 per year and expects to receive $40,000 in donations in addition to its ticket sales.Required1. If the Monroe Classical Music Society just breaks even, how many concerts does it hold?2. In addition to the organization’s artistic director, the Music Society would like to hire a marketing director for $40,000 per year. What is the breakeven point? The Music Society anticipates that the addition of a marketing director would allow the organization to increase the number of concerts to 60 per year. What is the Music Society’s operating income/(loss) if it hires the new marketing director?3. The Music Society expects to receive a grant that would provide the organization with an additional $20,000 toward the payment of the marketing director’s salary. What is the breakeven point if the Music Society hires the marketing director and receives the grant?
Answer:
1. If the Monroe Classical Music Society just breaks even, how many concerts does it hold?
break even = $34,000 / $1,000 = 34 concerts per year
2. In addition to the organization’s artistic director, the Music Society would like to hire a marketing director for $40,000 per year. What is the break even point?
break even = $74,000 / $1,000 = 74 concerts per year
The Music Society anticipates that the addition of a marketing director would allow the organization to increase the number of concerts to 60 per year. What is the Music Society’s operating income/(loss) if it hires the new marketing director?
loss = (60 x $1,000) - $74,000 = $60,000 - $74,000 = -$14,000
3. The Music Society expects to receive a grant that would provide the organization with an additional $20,000 toward the payment of the marketing director’s salary. What is the break even point if the Music Society hires the marketing director and receives the grant?
break even = $54,000 / $1,000 = 54 concerts per year
Explanation:
fixed costs = $24,000 (mortgage) + $50,000 (artistic director) = $74,000
variable costs per concert = $1,000 (artist) - $500 (marketing) = $1,500
revenue = $2,500 per concert
contribution margin per concert = $2,500 - $1,500 = $1,000
other revenues = $40,000 per year
net fixed costs = $74,000 - $40,000 = $34,000
Explain why different things are important for journalists from different media, with specific reference to radio, television and daily newspapers journalists. (9 marks)
Answer:
Because each of those mediums has a different logic.
Explanation:
For journalists in television, time is a great constraint, and therefore, they are interested in news reporting that is succint, and even entertaining.
In newspapers, what is limited is not time, but word space. Journalists are worried about presenting a newstory with the right words, but without an excessive amount of them.
Finally, in radio, journalists are worried about presenting a newscast with clear words, and in a way that the listener can understand, because radio lacks the visual clues that are present in newspapers and television.
What aspect does line weight represent? A. angle of a line B. color of a line C. length of a line D. thickness of a line
Answer:
D
Explanation:
Franklin Glass Works’ production budget for the year ended November 30 was based on 200,000 units. Each unit requires 2 standard hours of labor for completion. Total overhead was budgeted at $900,000 for the year, and the fixed overhead rate was estimated to be $3.00 per unit. Both fixed and variable overhead are assigned to the product on the basis of direct labor hours.
The actual data for the year ended November 30 are presented as follows.
Actual production in units 198,000
Actual direct labor hours 440,000
Actual variable overhead $352,000
Actual fixed overhead $575,000
The fixed overhead applied to Franklin’s production for the year is:______
Answer:
Allocated Fixed MOH= $660,000
Explanation:
The fixed overhead rate was estimated to be $3.00 per unit.
Actual direct labor hours 440,000
To allocate fixed manufacturing overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 3*(440,000/2)
Allocated MOH= $660,000
What is the best application to chart the average temperature for the year?
PowerPoint
Access
Word
Excel
The Titanic Shipbuilding Company has a noncancelable contract to build a small cargo vessel. Construction involves a cash outlay of $273,000 at the end of each of the next two years. At the end of the third year the company will receive payment of $650,000. Assume the IRR of this option exceeds the cost of capital. The company can speed up construction by working an extra shift. In this case there will be a cash outlay of $595,000 at the end of the first year followed by a cash payment of $650,000 at the end of the second year. Use the IRR rule to show the (approximate) range of opportunity costs of capital at which the company should work the extra shift.
The company should work the extra shift if the cost of capital is between ___________ % and ___________ %
Answer:
19% to 19.7%
Explanation:
Cost of capital is the firm cost of sources of financing. It includes debt, equity and all other sources of finance with keeping the track of their required rate of return. The cost of capital is the expected return which is required by the lenders of fund.
As far as GOODS (compared to services) are concerned, there is ___ opportunity to correct problems due to ___ customer contact. A. less, low B. more, low C. less, high D. more, high
Answer:
More , High ( D )
Explanation:
As far as GOODS (compared to services) are concerned, there is More opportunity to correct problems due to High customer contact.
and this is because when dealing with Services instead of Goods the direct customers of services are people hence the level of accessibility to enable the prompt correction of problems that might arise is very high and its faster as well to do that
If the AD shortfall is $700 billion and the MPC is 0.95, Instructions: Enter your responses rounded to one decimal place. a. How large is the desired fiscal stimulus
Answer:
a. The desired fiscal stimulus is $35.0 billion.
b. The income tax cut is $36.8 billion.
c. The amount of government spending that would achieve the target is $35.0 billion.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
If the AD shortfall is $700 billion and the MPC is 0.95, Instructions: Enter your responses rounded to one decimal place.
a. How large is the desired fiscal stimulus?
b. How large an income tax cut is needed?
c. Alternatively, how much government spending would achieve the target?
The explantion of the answers is now provided as follows:
From the question, we have:
Aggregate demand (AD) shortfall = $700 billion
Marginal Propensity to Consume (MPC) = 0.95
a. How large is the desired fiscal stimulus?
To calculate the the desired fiscal stimulus, we need to first calculate the multiplier as follows:
Multipliers = 1 (1 - MPC) ................... (1)
Substituting the value into equation (1), we have:
Multipliers = 1 (1 - 0.95) = 1 / 0.05 = 20
The formula for calculating the fiscal stimulus is as follows:
Fiscal stimulus = AD shortfall / Multiplier ..................... (2)
Substituting the values into equation (2), we have:
Fiscal stimulus = $700 billion / 20 = $35.0 billion.
Therefore, the desired fiscal stimulus is $35.0 billion.
b. How large an income tax cut is needed?
This can be calculated using the following formula:
Income tax cut = Fiscal stimulus / MPC .............. (3)
Substituting the values into equation (3), we have:
Income tax cut = $35 billion / 0.95 = $36.8421052631579 billion
Rounding to one decimal place, we have
Income tax cut = $36.8 billion
Therefore, the income tax cut is $36.8 billion.
c. Alternatively, how much government spending would achieve the target?
The amount of increase in government spending that would achieve the target is the same thing as the desired fiscal stimulus already obtained in part a above.
Therefore, the amount of government spending that would achieve the target is $35.0 billion.
Department Alpha had no beginning inventory. The department added direct materials costing $55,040 and conversion costs of $88,660 during the month of July. Materials are added at the beginning of the process and conversion costs are added evenly throughout the process in this department. During the month, 40,000 units were completed. At the end of July, 3,000 units remained which were 10% complete with respect to conversion costs. What is the correct cost per equivalent unit for materials for July?
Answer:
Cost per equivalent unit of materials = $1.28
Explanation:
Materials Cost = $55,040
Number of completed units = 40,000
Total units for material = 40,000 + 3,000 = 43,000 units
Cost per equivalent unit of materials = $55,040 / 43,000
Cost per equivalent unit of materials = $1.28
Journalize the following transactions for Cullumber Company.
Sept. 1 Purchased supplies for $1,100 cash.
5 Paid $490 cash dividend to stockholders.
7 Received $6,300 down payment from customer for services to be provided in the future.
16 Received $850 cash from a previously billed customer for payment of services provided in the prior month.
22 Purchased equipment for $3,800 by paying $1,500 cash and issued a note payable for the balance.
Answer:
Sept. 1 DR Supplies $1,100
CR Cash $1,100
Sept 5. DR Retained Earnings $490
CR Cash $490
Sept 7 DR Cash $6,300
CR Unearned Service Revenue $6,300
Sept 16 DR Cash $850
CR Accounts Receivable $850
Sept 22 DR Equipment $3,800
CR Cash $1,500
Notes Payable (3,800 - 1,500) $2,300
Pargo Company is preparing its master budget for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 1,900,000 units. Quarterly sales are 22%, 27%, 25%, and 26%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $45 per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be 10% higher than the budgeted sales for the first quarter of 2020.
Production Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $11 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2021 are 495,000 pounds me Prepare the sales, production, and direct materials budgets by quarters for 2020
Answer:
Pargo Company
1. Sales Budget
Quarterly sales 1st 2nd 3rd 4th 2021
Sales 22% 27% 25% 26%
Sales in quantity 418,000 513,000 475,000 494,000 459,800
Sales price $40 $40 $40 $45 $45
Sales value ('000) $16,720 $20,520 $19,000 $22,2300 $20,691
2. Production Budget
Quarterly production 1st 2nd 3rd 4th 2021
Sales in quantity 418,000 513,000 475,000 494,000 459,800
Ending inventory 128,250 118,750 123,500 114,950
Beginning inventory 0 128,250 118,750 123,500
Total Production 546,250 503,500 479,750 485,450
3. Direct Materials Budget
Quarterly production 1st 2nd 3rd 4th
Total Production (units) 546,250 503,500 479,750 485,450
Materials per unit (pounds)1,092,500 1,007,000 959,500 970,900
Ending Inventory 100,700 95,950 97,090 49,500
Beginning Inventory 109,250 100,700 95,950 97,090
Purchases 1,083,950 1,002,250 960,640 923,310
Cost of purchases $11,923,450 $11,024,750 $10,567,040$10,156,410
Explanation:
a) Data and Calculations:
Expected sales = 1,900,000
Quarterly sales 1st 2nd 3rd 4th 2021
Sales 22% 27% 25% 26%
Sales in quantity 418,000 513,000 475,000 494,000 459,800
Sales price $40 $40 $40 $45 $45
Sales value ('000) $16,720 $20,520 $19,000 $22,2300 $20,691
Ending inventory 128,250 118,750 123,500 114,950 units
At the beginning of the month, the Forming Department of Martin Manufacturing had 17,000 units in inventory, 30% complete as to materials, and 15% complete as to conversion. During the month the department started 67,000 units and transferred 72,500 units to the next manufacturing department. At the end of the month, the department had 11,500 units in inventory, 85% complete as to materials and 60% complete as to conversion. If Martin Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Forming Department.
A) 82,275 materials; 79,400 conversion
B) 65,275 materials; 62,400 conversion
C) 64,450 materials; 69,550 conversion
D) 77,175 materials; 79,400 conversion
E) 77,175 materials; 76,850 conversion
Answer:
A) 82,275 materials; 79,400 conversion
Explanation:
Calculation of the Equivalent Units of Production with respect to Raw Materials and Conversion Costs
1. Raw Materials
Ending Work In Process (11,500 × 85%) = 9,775
Completed and Transferred (72,500 × 100%) = 72,500
Equivalent Units of Production with respect to Materials = 82,275
2. Conversion Costs
Ending Work In Process (11,500 × 60%) = 6,900
Completed and Transferred (72,500 × 100%) = 72,500
Equivalent Units of Production with respect to Materials = 79,400
You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends. Year Beginning of Year Price # of Shares Bought or Sold 2011 $50.00 100 Bought 2012 $55.00 50 Bought 2013 $51.00 75 Sold 2014 $54.00 75 Sold What is the geometric average return for the period?
Answer:
The geometric average return for the period 2.60%.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
Also note: See the attached excel file for the calculation of the return for each year.
In the attached excel file, return is calculated using the following formula:
Return = (Current year price - Previous year price) / Previous year price
The formula for calculating the geometric average return is given as follows:
Geometric average return = [(1 + R1)(1 + R2)(1 + R3)...(1 + Rn)]^(1/n) – 1 ……….. (1)
Where;
Ri = Return over the years I, where i = 1, 2, 3, …. n
n = number of years = 3
R1 = 2012 return = 0.10
R2 = 2013 return = -0.0727272727272727
R3 = 0.0588235294117647
Substituting the values into equation (1), we have:
Geometric average return = ((1 + 0.10)(1 - 0.0727272727272727)(1 + 0.0588235294117647))^(1/3) – 1
Geometric average return = (1.10 * 0.927272727272727 * 1.0588235294117647)^(1/3) – 1
Geometric average return = 1.07999999999999^0.333333333333333 - 1
Geometric average return = 1.02598556800602 - 1
Geometric average return = 0.02598556800602 = 0.0260, or 2.60%
Therefore, the geometric average return for the period 2.60%.
The stock of Static Corporation has a beta of 0.7. If the expected return on the market increases by 6%, the expected return on Static Corporation should increase by
Answer: 4.2%
Explanation:
Beta is a measure of sensitivity of a stock in that it measures how the stock reacts to a movement in market return. The Beta of the Market is 1.
If a Stock's Beta is 2, this means that if expected market return increases by 1%, the stock's expected return will increase by 2%. If a Stock's beta is 0.5 then if the expected return on the market increases by 1%, the stock's expected return will increase by 0.5%.
In this case the expected return on the market increases by 6% so the expected return on Static Corporation should increase by;
= 0.7 * 6%
= 4.2%
Blight Financial has an investment in bonds issued by Searing Industries that are classified as trading securities. At December 31, Year 2, the Investment in Searing bonds account had a debit balance of $500,000, and the bonds were purchased at par so the $500,000 equals amortized cost. The Fair Value Adjustment account had a debit balance of $20,000. On December 31, Year 3, the amortized cost of those bonds has not changed, but the fair value of those bonds was $515,000. Which of the following will be included in the related journal entry dated December 31, Year 3?
a. Debit to Fair value adjustment for $5,000.
b. Credit to Fair value adjustment for $5,000.
c. Debit to Fair value adjustment for $25,000.
d. Credit to Fair value adjustment for $25,000.
Answer:
b. Credit to Fair value adjustment for $5,000.
Explanation:
Particulars Amount
Beginning balance of fair value adjustment $20,000
Less: Unrealized gain on Dec 31 $15,000
(515,000 - 500,000)
Credit to fair value adjustment $5,000
Megan McCoy has a Bachelor's degree in business management and human resources. She has 5 years of HR experience as an HR assistant with her current employer. Megan thinks that with her education and experience, she is qualified for the position of HR manager. After observing her own boss, she feels confident that she could do that job. However, Megan knows that she does not see everything that her boss does, and may not be aware of all the tasks, duties, and responsibilities (TDRs) of the job, and the knowledge, skills, abilities, and other characteristics (KSAOs) necessary to do the job. To get more information about the occupation of an HR Manager, Megan did some research using the Occupational Information Network.
The general description of the job of HR manager includes
a. supervising and coordinating the activities of clerical and administrative support workers.
b. maintaining record of assets, liabilities, tax liability, and other financial activities.
c. maintaining functions such as employee compensation, recruitment, and personnel policies.
d. interacting with customers and handling and resolving customer complaints.
e. providing high-level administrative support by conducting research and preparing reports.
Answer:
c. maintaining functions such as employee compensation, recruitment, and personnel policies.
Explanation:
The human resources department in a company is increasingly important, since HR is the area where the company's human capital is managed, and more and more people must be valued in an organization, which currently assume the role promoters of human development both internally and externally.
The general job description of the HR manager includes maintaining roles such as employee compensation, recruitment and personnel policies.
To be an effective manager, there must be an understanding that employees have specific needs that must be met in the company, there must be policies that protect and value the employee according to the law, as well as the establishment of positions and fair remuneration and consistent with the function performed, preparation of training and development, etc.
Organizations are composed of people, therefore they are not rigid entities, it is necessary that the manager has flexibility to deal with people and their demands, always seeking to build positive professional relationships that contribute to an organizational culture favorable to the development of the skills and competences of the people.
Janice’s Dress Delivery operates a mail-order business that sells clothes designed for frequent travelers. It had sales of $560,000 in December. Because Janice’s Dress Delivery is in the mail-order business, all sales are made on account. The company expects a 30 percent drop in sales for January. The balance in the Accounts Receivable account on December 31 was $96,400 and is budgeted to be $73,600 as of January 31. Janice’s Dress Delivery normally collects accounts receivable in the month following the month of sale. Required: Determine the amount of cash Janice’s Dress Delivery expects to collect from accounts receivable during January.
Answer:
$414,800
Explanation:
First, calculate the sales revenue for January
Sales Budget
December = $560,000
January = ($560,000 × 0.70) = $392,000
Then, Prepare a Trade Receivables Schedule
Cash Trade Receivables Schedule
January
Balance b/d $96,400
Add Credit Sales $392,000
Less Balance c/d ($73,600)
Cash Received from Trade Receivables $414,800
Therefore, Dress Delivery expects to collect $414,800 from accounts receivable.
Luke offered to sell his farm to Kent at $75,000, an offer which Kent declined. A week later, Luke offered to sell the farm for $65,000, stating that it was the final offer, it was valid for one month, and that he would not alter it. Two days later, Kent replied by saying that he was willing to pay $60,000 for the farm. A week after Luke received Kent's offer, Luke declined it. Ten days after that, Kent agreed to buy the farm for $65,000, but Luke refused to sell the farm. Kent decided to sue Luke for a breach of contract. The judge ruled in favor of Luke. Which one of the following is the reason for the ruling in Luke's favor?
a. Luke's original offer of $75,000 is still valid, even though rejected.
b. Kent acted in an incompetent manner with regards to the offer.
c. Kent's acceptance was past the set time period in the offer.
d. Kent's counteroffer of $60,000 had rendered the offer for $65,000 invalid.
Answer:
Option D
Explanation:
Kent's counteroffer of $60,000 had rendered the offer for $65,000 invalid
Reason- Whenever a counteroffer is made, it voids the earlier offers That's because real estate laws in all 50 states say that a seller who makes a written counteroffer automatically renders the buyer's original offer null and void.
Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2017, the general ledger for Case Inc. contains the following data.
Raw Materials Inventory $4,200 Manufacturing Overhead Applied $32,640
Work in Process Inventory $5,540 Manufacturing Overhead Incurred $31,650
Subsidiary data for Work in Process Inventory on June 1 are as follows.
Job Cost Sheets
Customer Job
Cost Element Rodgers Stevens Linton
Direct materials $600 $800 $900
Direct labor 320 540 580
Manufacturing overhead 400 675 725
$1,320 $2,015 $2,205
During June, raw materials purchased on account were $4,900, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $900 and miscellaneous costs of $400 incurred on account.
A summary of materials requisition slips and time tickets for June shows the following.
Customer Job Materials Requisition Slips Time Tickets
Rodgers $800 $850
Koss 2,000 800
Stevens 500 360
Linton 1,300 1,200
Rodgers 300 390
4,900 3,600
General use 1,500 1,200
$6,400 $4,800
Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labor cost. The patios for customers Rodgers, Stevens, and Linton were completed during June and sold for a total of $18,900. Each customer paid in full.
Instructions
Journalize the June transactions: (1) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead cost incurred; (2) assignment of direct materials, labor, and overhead to production; and (3) completion of jobs and sale of goods.
Post the entries to Work in Process Inventory.
Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.
Prepare a cost of goods manufactured schedule for June.
Answer and Explanation:
Please find answer and explanation attached