Answer:
They try to “spin” the news by manipulating
Explanation:
Answer:
Hope it helps
Explanation:
because they are tools that can be used to inform and mobilize users in new ways. Users are able to connect directly to politicians and campaign managers and engage in political activities in new ways.They try to "spin" the news by manipulating how reporters interpret events
Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1.25 coming 3 years from today. The dividend should grow rapidly - at a rate of 32% per year - during Years 4 and 5; but after Year 5, growth should be a constant 6% per year. If the required return on Computech is 17%, what is the value of the stock today? Round your answer to the nearest cent. Do not round your intermediate calculations.
Answer:
P₀ = $12.23
Explanation:
Div₃ = $1.25
Div₄ = $1.65
Div₅ = $2.178
Div₆ = $2.30868
first we must calculate the terminal value using the dividend discount model = $2.30868 / (17% - 6%) = $20.988
now we must discount all the future dividends + terminal value
P₀ = $1.25/1.17³ + $1.65/1.17⁴ + $2.178/1.17⁵ + $20.988/1.17⁵ = $12.23
Sunland Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $1,440 per month. One of the barbers serves as the manager and receives an extra $520 per month. In addition to the base rate, each barber also receives a commission of $9.15 per haircut. Other costs are as follows.
Advertising $240 per month
Rent $1,100 per month
Barber supplies $0.35 per haircut
Utilities $185 per month plus $0.10 per haircut
Magazines $35 per month Sunland currently charges $16 per haircut.
Vin currently charges $10 per haircut.
Required:
a. Determine the variable costs per haircut and the total monthly fixed costs.
b. Compute the break-even point in units and dollars.
c. Prepare a CVP graph, assuming a maximum of 1,800 haircuts in a month. Use increments of 300 haircuts on the horizontal axis and $3,000 on the vertical axis.
d. Determine net income, assuming 1,600 haircuts are given in a month.
Answer:
a. Variable costs = $9.60 and Fixed Costs = $7,840
b. 1,225 haircuts and $19,600
c. See attachment
d. $2,400
Explanation:
Variable Costs per haircut Calculations
Barber supplies $0.35
Utilities $0.10
Commission $9.15
Total Variable Costs per haircut $9.60
Total Monthly Fixed Costs Calculation
Base Salary (1,440 × 4 + 520) $6,280
Advertising $240
Rent $1,100
Utilities $185
Magazines $35
Total Monthly Fixed Costs $7,840
Contribution per unit = Selling price per unit - Variable Cost per unit
= $16.00 - $9.60
= $6.40
Contribution Margin Ratio = Contribution ÷ Selling Price
= $6.40 ÷ $16.00
= 0.40
Break-even point (units) = Fixed Cost ÷ Contribution per unit
= $7,840 ÷ $6.40
= 1,225 haircuts
Break-even point (dollars) = Fixed Cost ÷ Contribution Margin Ratio
= $7,840 ÷ 0.40
= $19,600
Net income, assuming 1,600 haircuts are given in a month [calculation]
Contribution (1,600 × $6.40) $10,240
Less Fixed Costs ($7,840)
Net Income/(loss) $2,400
Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming year. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,000 units. Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree to reimburse the supplier. Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use. The following data have been collected:
Requirements (annual forecast) 12,000 units
Weight per engine 22 pounds
Order processing cost $125 per order
Inventory carry cost 20 percent of the average value of inventory per year
Assume that half of lot size is in inventory on average (1,000/2 = 500 units).
Two qualified suppliers have submitted the following quotations:
ORDER QUANTITY SUPPLIER 1 UNIT PRICE SUPPLIER 2 UNIT PRICE
1 to 1,499 units/order $510.00 $505.00
1,500 to 2,999 units/order 500.00 505.00
3,000 + units/order 490.00 488.00
Tooling costs $22,000 $20,000
Distance 125 miles 100 miles
Your assistant has obtained the following freight rates from your carrier:
Truckload (40.000 lbs. each load): $0.80 per ton-mile
Less-than-truckload: $1.20 per ton-mile
Required:
a. Calculate the total cost for each supplier.
b. Which supplier would you select?
c. If you could move the lot size up to ship in truckload quantities, calculate the total cost for each supplier.
d. Would your supplier selection change?
Answer:
a. Cost of Supplier 1 : $6,214,300 per year
Cost of Supplier 2 : $6,147,840
b. Supplier 2 will be selected as it costs $66,460 less than supplier 1.
c. 1,818
d. No.
Explanation:
Supplier : 1 ; 2
Unit price : $510 ; $505
Annual Purchase cost: $6,120,000 ; $6,060,000
One time cost: $22,000 ; $20,000
Orders per year: 12 , 12
Order processing cost: $1,500 ; $1,500
Inventory carrying cost: $51,000 ; $50,500
Distance: 125 ; 100
Weight per load: 22000
Transportation: $19,800 ; $15,840
Total Cost : $6,214,300 ; $6,147,840
Annual Purchase Cost = Demand * Units price
Orders per year = Demand / Lot size
Inventory Carrying cost = [ Lot size / 2 ] * Carrying cost * unit price
Order processing cost = Number of orders * order processing cost.
c. Required lot size for truck : 40,000 / 22 ≈ 1,818
Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $900,000 of total manufacturing overhead for an estimated activity level of 75,000 machine-hours.
During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:
Machine-hours 76,000
Manufacturing overhead cost $637,000
Inventories at year-end:
Raw materials $20,000
Work in process (includes overhead applied of $36,480) $115,800
Finished goods (includes overhead applied of $91,200) $289,500
Cost of goods sold (includes overhead applied of $480,320) $1,524,700
Required:
a. Compute the underapplied or overapplied overhead.
b. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
c. Assume that the company allocates any underapplied or over appliedoverhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
d. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?
Answer:
Please solution below
Explanation:
a. Compute the under applied or over applied overhead
First, we need to determine the predetermined overhead rate.
Predetermined overhead rate = Estimated total manufacturing overhead / Estimated total machine hours
= $900,000 / 75,000 hours
= $12.0 per hour
But;
Actual manufacturing overhead = $637,000
Manufacturing overhead applied to work in process during the year = 76,000 actual MHs × $12.00 per MH $912,000
Over applied overhead cost = $275,000
b. Journal entry
Cost of goods sold Dr $275,000
To Manufacturing over head applied Cr $275,000
c. The over applied over head would be allocated using the following percentages;
Overhead applied during the year ;
Work in process = $36,480. 6%
Finished goods = $91,200. 15%
Cost of goods sold = $480,320 79%
Total = $608,000 100%
The entry to record the allocation of the overhead applied would be ;
Work in process [6% × $275,000] = $16,500
Finished goods [15% × $275,000] = $41,250
Cost of goods sold [79% × $275,000] = $217,250
d. Comparing the two method;
Cost of goods sold if the over applied overhead is closed to the cost of goods sold [$1,524,700 + $275,000] = $1,799,700
Cost of goods sold if the overhead applied is closed to work in process, finished goods, and cost of goods sold = [$1,524,700 + $217,250] =
$1,741,950
Difference in cost of goods sold = $57,750
On January 1, 20X8, L Corporation acquired all of the common stock of S Company for $300,000. On that date, S Company's identifiable net assets had a fair value of $250,000. The assets acquired in the purchase of S are considered to be a separate reporting unit of L Corporation. The carrying value of S Company's net assets at December 31, 20X8, is $310,000. The fair value of the reporting unit is determined to be 260,000. Determine the amount, if any, of impairment loss to be recognized at December 31, 20X8.
a. 40,000
b. 50,000
c. 10,000
d. 60,000
Answer:
b. 50,000
Explanation:
According to the given situation, the computation of impairment loss is shown below:-
The Amount of impairment loss to be recognized at December 31, 20X8 is
= Net assets - Fair value of reporting unit
= $310,000 - $260,000
= $50,000
Therefore we applied the above formula to determine the amount of impairment loss to be recognized at December 31, 20X8.
__________ provides a snapshot of the financial condition of the firm at a particular time. Multiple Choice The balance sheet The income statement The statement of cash flows All of the options are correct. None of the options are correct.
Answer:
The balance sheet
Explanation:
In a balance sheet, one can see the information on the assets of the company, their liabilities and the equity brought by the shareholders at any particular point in time.
In some cases, it can be referred to as statement of net worth because one can be able to see what the company owns and owes and how the assets are financed either as equity or debt.
Seiko’s current salary is $85,000. Her marginal tax rate is 32 percent and she fancies European sports cars. She purchases a new auto each year. Seiko is currently a manager for an Idaho Office Supply. Her friend, knowing of her interest in sports cars, tells her about a manager position at the local BMW and Porsche dealer. The new position pays only $75,000 per year, but it allows employees to purchase one new car per year at a discount of $15,000. This discount qualifies as a nontaxable fringe benefit. In an effort to keep Seiko as an employee, Idaho Office Supply offers her a $10,000 raise. Answer the following questions about this analysis.
Problem 12-41
Part a a. Assuming it has a 21 percent marginal tax rate, what is the annual after-tax cost to Idaho Office Supply to provide Seiko with the $10,000 increase in salary?
Answer:
$7,900
Explanation:
Calculation for the annual after-tax cost
Additional salary = $ 10,000
Marginal tax rate=21%
First step is to find the income tax benefit
Income tax benefit = $ 10,000 x 21%
Income tax benefit= $ 2,100
Second step is to find the Annual after tax cost of additional salary
Annual after tax cost of additional salary = $ 10,000 - $2,100
Annual after tax cost of additional salary = $7,900
Therefore the annual after-tax cost will be $7,900
Major League Bat Company manufactures baseball bats. In addition to its goods in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and direct labor and factory overhead are applied uniformly throughout the production process.Required:You are to maintain records and produce measures of inventories to reflect the July events of this company. The June 30 balances are as follows: Raw Materials Inventory, $25,000; Goods in Process Inventory, $10,520 ($2,800 of direct materials, $3,800 of direct labor, and $3,920 of overhead); Finished Goods Inventory, $116,000; Sales, $0; Cost of Goods Sold, $0; Factory Payroll, $0; and Factory Overhead, $0.1. Prepare journal entries to record the following July transactions and events.a. Purchased raw materials for $132,000 cash (the company uses a perpetual inventory system).b. Used raw materials as follows: direct materials, $49,900; and indirect materials, $15,000.c. Incurred factory payroll cost of $173,650 paid in cash (ignore taxes).d. Assigned factory payroll costs as follows: direct labor, $142,650; and indirect labor, $31,000.e. Incurred additional factory overhead costs of $42,795 paid in cash.f. Allocated factory overhead to production at 50% of direct labor costs.2. Information about the July inventories follows. Use this information with that from part 1 to prepare a process cost summary, assuming the weighted-average method is used. (Round "Cost per EUP" to 2 decimal places.)3. Using the results from part 2 and the available information, make computations and prepare journal entries to record the following:g. Total costs transferred to finished goods for July.h. Sale of finished goods costing $132,010 for $650,000 in cash.4. Post entries from parts 1 and 3 to the following general ledger accounts5. Compute the amount of gross profit from the sales in July. (Add any underapplied overhead too, or deduct any overapplied overhead from, the cost of goods sold.)
Question Completion:
Information about the July inventories follows:
Beginning inventory 8,000 units
Started 17,000 units
Ending inventory 11,000 units
Beginning inventory
Materials—Percent complete 100%
Conversion—Percent complete 80%
Ending inventory
Materials—Percent complete 100%
Conversion—Percent complete 30%
Answer:
Major League Bat Company
1. Journal Entries:
a. Debit Raw Materials Inventory $132,000
Credit Cash Account $132,000
To record the purchase of raw materials.
b. Debit Work in Process $49,900
Debit Manufacturing Overhead $15,000
Credit Raw Materials $64,900
To record materials used.
c. Debit Factory Wages $173,650
Credit Cash Account $173,650
To record factory payroll incurred.
d. Debit Work in Process $142,650
Debit Manufacturing Overhead $31,000
Credit Factory Wages $173,650
To assign factory payroll costs.
e. Debit Manufacturing Overhead $42,795
Credit Cash Account $42,795
To record additional factory overhead costs.
f. Debit Work In Process $71,325
Credit Manufacturing Overhead $71,325
To allocate factory overhead to production at 50% of direct labor costs.
2. Computation of Equivalent Units of Production:
Materials Conversion Total
Beginning inventory 8,000 units 8,000 6,400
Started 17,000 units 17,000 17,000
Ending inventory 11,000 units 11,000 3,300
Total equivalent unit 28,000 20,300
3. Costs of Production:
Beginning Inventory $2,800 $7,720
Raw materials 49,900 213,975
Total costs $52,700 $221,695
Total equivalent unit 28,000 20,300
Cost per equivalent unit $1.88 $10.92
Total costs:
Started 17,000 $31,960 17,000 $185,640 $217,600
Ending inventory 11,000 20,680 3,300 36,036 $56,716
4. Journal Entries:
Debit Finished Goods Inventory $217,600
Credit Work In Process $217,600
To record the transfer of goods.
Debit Cost of Goods Sold $132,010
Credit Finished Goods Inventory $132,010
To record the cost of goods sold.
Debit Cash Account $650,000
Credit Sales Revenue $650,000
To record the sale of goods for cash.
5. Ledger accounts:
Raw Materials Inventory
Accounts Titles Debit Credit
Balance $25,000
Cash Account 132,000
Work in Process $49,900
Manufacturing Overhead 15,000
Work In Process
Accounts Titles Debit Credit
Balance $10,250
Raw materials 49,900
Factory Wages 142,650
Manufacturing
Overhead 71,325
Finished Goods Inventory $217,600
Balance 56,716
Manufacturing Overhead
Accounts Titles Debit Credit
Raw materials $15,000
Factory wages 31,000
Other overheads 42,795
Work in Process applied $71,325
Underapplied overhead 17,470
6. Income Statement:
For July
Sales Revenue $650,000
Cost of goods sold 132,010
Underapplied overhead 17,470 $149,480
Gross profit $500,520
Explanation:
a) Data and Calculations:
June 30 Balances:
Raw Materials Inventory, $25,000;
Goods in Process Inventory, $10,520 ($2,800 of direct materials, $3,800 of direct labor, and $3,920 of overhead);
Finished Goods Inventory, $116,000;
Sales, $0;
Cost of Goods Sold, $0;
Factory Payroll, $0; and
Factory Overhead, $0.1.
Tawna Reed was hired for a top managerial position in Nike Corporation because she had creative ability and a good overall feel for the athletic shoe industry. Reed is said to have good _____ skills.
Answer:
C) conceptual.
Explanation:
Conceptual skills are essential in managers of large companies, such as that of the multinational Nike.
This ability means that the manager has a vision of the organization as an integrated system, where each part has its relevance in the organizational whole and must be considered in the processing, evaluation and planning of the strategies that will lead to organizational success.
Having conceptual skills means having the skills to have a diffuse and analytical thinking of the organization and all the parts that involve it, which makes the entire management decision-making process much more efficient and aligned with the organization's objectives and goals.
A company issues $50 million of bonds at par on January 1, 2018. The bonds pay 10% interest semi-annually on 12/31 and 6/30 and mature in 20 years. The journal entry when the bonds are sold is:
Answer: Please see explanation for answer
Explanation:
Journal entry to record sale of bonds
Account titles Debit Credit
Cash $50,000,000
Bonds Payable $50,000,000
Assume a par value of $1,000. Caspian Sea plans to issue a 9.00 year, semi-annual pay bond that has a coupon rate of 8.04%. If the yield to maturity for the bond is 7.79%, what will the price of the bond be
Answer:
$1,015.96
Explanation:
The Price of the Bond (PV) can be calculated as follows :
Fv = $1,000
Pmt = ($1,000 × 8.04%) ÷ 2 = $40.20
n = 9 × 2 = 18
p/yr = 2
i = 7.79%
pv = ?
Using a financial calculator to input the values as shown above, the Price of the Bond (PV) is $1,015.96
Prepare a bank reconciliation as of October 31 from the following information:
a. The October 31 cash balance in the general ledger is $806.
b. The October 31 balance shown on the bank statement is $350.
c. Checks issued but not returned with the bank statement were No. 462 for $24 and No. 483 for $42.
d. A deposit made late on October 31 for $433 is included in the general ledger balance but not in the bank statement balance.
e. Returned with the bank statement was a notice that a customer's check for $80 that was deposited on October 25 had been returned because the customer's account was overdrawn.
f. During a review of the checks that were returned with the bank statement, it was noted that the amount of Check No. 471 was $65 but that in the company's records supporting the general ledger balance, the check had been erroneously recorded as a payment of an account payable in the amount of $56.
Answer:
Bank Reconciliation Statement as of October 31
Particulars Amount Particulars Amount
Balance as per bank $350 Balance as per books $806
Add: Late deposit $433 Less: Returned checks $80
Less: Outstanding check $66 Less: Error recordings $9
($24+$42) ($65-$56)
Reconciled Balance $717 Reconciled Balance $717
The revenues budget identifies: a. expected cash flows for each product b. actual sales from last year for each product c. the expected level of sales for the company d. the variance of sales from actual for each product
Answer:
c. the expected level of sales for the company
Explanation:
Revenue/Sales Budget is the first budget to be prepared by most companies because most businesses are sales led.
This Budget shows, the expected level of sales for the company.
Label the following hypothetical demand scenarios. Use the midpoint method.
Contain Yourself!, a plastic container company, raises the price of its signature "lunchbox" container from $3.00 to $4.00. As a result, the quantity sold drops from 20,000 to 15,000. ..........
Economists working for the United States have determined that the elasticity of demand for gasoline is 0.5. ..................
CapCityMetro decides to increase bus fare rates from $2.00 to $2.21. Consequently, the number of passengers who decide to take the bus in Austin drops from an average of 70,000 riders a day to an average of 61,000 riders a day. ...............
Inelastic unit-elastic Elastic perfectly elastic
Answer:
Contain Yourself!, a plastic container company, raises the price of its signature "lunchbox" container from $3.00 to $4.00. As a result, the quantity sold drops from 20,000 to 15,000.
UNIT ELASTIC ⇒ when the price elasticity of demand is unit elastic, a change in price will result in a proportionally equal change in the quantity demanded.
PED = % change in quantity / % change in price = {(15 - 20) / [(15 + 20)/2]} / {($4 - $3) / [($4 + $3)/2]} = -0.2857 / 0.2857 = -1 or |1| in absolute terms
Economists working for the United States have determined that the elasticity of demand for gasoline is 0.5.
INELASTIC DEMAND ⇒ when the price elasticity of demand is inelastic, a change in price will result in a proportionally lower change in the quantity demanded.
CapCityMetro decides to increase bus fare rates from $2.00 to $2.21. Consequently, the number of passengers who decide to take the bus in Austin drops from an average of 70,000 riders a day to an average of 61,000 riders a day.
ELASTIC DEMAND ⇒ when the demand for a good is elastic, a change in price will result in a proportionally higher change in quantity demanded.
PED = % change in quantity / % change in price = {(61,000 - 70,000) / [(61,000 + 70,000)/2]} / {($2.21 - $2) / [($2.21 + $2)/2]} = -0.1374 / 0.1 = -1.374 or |1.374| in absolute terms
Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2005). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $1,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $5,500 in federal income taxes withheld from their paychecks during the course of the year. (use the 2016 tax rate schedules).
1. What is the total amount of Marc and Michelle’s deductions from AGI?
2. What is Marc and Michelle’s taxable income?
3. What is Marc and Michelle’s taxable income?
Answer:
$24750
$47750
Explanation:
Total amount of Marc and Michelle's deduction. From AGI:
MAX of (ITEMIZED DEDUCTION or MARRIED FILING JOINTLY)
2016 TAX SCHEDULE :
STANDARD DEDUCTION FOR MARRIED FILING JOINTLY = $12600
Personal and dependency deduction = 4,050
(4050 * 3). = $12,150
Deduction from AGI = $12,600 + $12,150 = $24750
Taxable income :
Gross income = (Marc and Michelle's salary + corporate bond)
= $(64000 + 12000 + 500) = $76500
Contribution + alimony = ($2500 + $1500) = 4000
Taxable income = ($76500 - 4000 - 24750) = $47750
Suppose the following data were taken from the 2017 and 2016 financial statements of American Eagle Outfitters. (All numbers, including share data, are in thousands.)
2017 2016
Current assets $ 890,400 $999,600
Total assets 1,950,000 1,878,000
Current liabilities 424,000 357,000
Total liabilities 573,300 552,132
Net income 166,830 337,600
Net cash provided by operating activities 300,000 452,600
Capital expenditures 271,000 246,500
Dividends paid on common stock 85,000 76,500
Weighted-average shares outstanding 201,000 211,000
a. Calculate the current ratio for each year. (Round answers to 2 decimal places, e.g. 15.25.)
2017 2016
Current ratio
b. Calculate earnings per share for each year. (Round answers to 2 decimal places, e.g. 15.25.)
2017 2016
Earnings per share $
c. Calculate the debt to assets ratio for each year. (Round answers to 1 decimal place, e.g. 29.5%)
2017 2016
Debt to assets ratio
d. Calculate the free cash flow for each year. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).)
2017 2016
Free cash flow
Answer:
Please see below
Explanation:
a. Current ratio
= Total current asset / Total current liabilities
2017
Current asset. 890,400
Current liabilities 424,000
Current ratio = 890,400/424,000
= 2.1
2016 Current ratio
Current asset. 999,600
Current liabilities 357,000
Current ratio = 999,600/357,000
= 2.8
b. Earnings per share
= (Net income - Preference dividend) / Weighted average number of shares outstanding
2017
Net income. 166,830
Weighted Average number of shares outstanding 201,000
Earnings per share = $166,830/201,000
= $0.83
2016 Earnings per share
Net income $337,600
Weighted Average number of shares outstanding 211,000
Earnings per share = $337,600/211,000
= $1.6
c. Debt to asset ratio
= Total liabilities / Total assets
2017
Total liabilities 573,300
Total assets 1,950,000
= 573,300/1,950,000
= 0.29
2016 Debt to asset ratio
Total liabilities 552,132
Total assets 1,878,000
Debt to asset ratio = 552,132/1,878,000
= 0.29
d. Free cash flow
2017
Cash flow from operating activities 300,000
Less: capital expenditure (271,000)
Free cash flow 29,000
2016 free Cash flow from operating activities
Free cash flow 452,600
Less: capital expenditure (246,500)
Free cash flow. 206,100
The following inventory information is available for Ricci Manufacturing Corporation for the year ended December 31, 2017:
Beginning Ending
Inventories: Raw materials $17,000 $19,000
Work in process 9,000 14,000
Finished goods 11,000 8,000
Total $37,000 $41,000
In addition, the following transactions occurred in 2017:
1. Raw materials purchased on account, $75,000.
2. Incurred factory labor, $80,000, all is direct labor. (Credit Factory Wages Payable).
3. Incurred the following overhead costs during the year: Utilities $6,800, Depreciation on manufacturing machinery $8,000, Manufacturing machinery repairs $9,200, Factory insurance $9,000 (Credit Accounts Payable and Accumulated Depreciation).
4. Assigned $80,000 of factory labor to jobs.
5. Applied $36,000 of overhead to jobs. Instructions
Required:
a. Journalize the above transactions.
b. Reproduce the manufacturing cost and inventory accounts.
c. From an analysis of the accounts, compute the following:
1. Raw materials used.
2. Completed jobs transferred to finished goods.
3. Cost of goods sold.
4. Under- or overapplied overhead.
Answer:
Ricci Manufacturing Corporation
a. Journal Entries;
1. Debit Raw Materials Inventory $75,000
Credit Accounts Payable $75,000
To record the purchase of materials on account.
2. Debit Factory Wages $80,000
Credit Factory Wages Payable $80,000
To record factory labor incurred on account.
3. Debit Manufacturing Overhead:
Utilities $6,800
Depreciation $8,000
Machinery Repairs $9,200
Factory Insurance $9,000
Credit: Accounts Payable $25,000
Accumulated Depreciation $8,000
To record manufacturing overhead costs incurred.
4. Debit Work in Process $80,000
Credit Factory Wages $80,000
To record the assignment of factory labor to jobs.
5. Debit Work in Process $36,000
Credit Manufacturing Overheads $36,000
To apply overhead to jobs.
b. Manufacturing cost and Inventory Accounts:
Raw Materials
Accounts Titles Debit Credit
Balance $17,000
Accounts payable 75,000
Work in Process 73,000
Balance $19,000
Work in Process
Accounts Titles Debit Credit
Balance $9,000
Raw materials 73,000
Factory Wages 80,000
Manuf. Overhead 36,000
Finished Goods $184,000
Balance $14,000
Finished Goods
Accounts Titles Debit Credit
Balance $11,000
Work in Process 184,000
Cost of goods sold $187,000
Balance $8,000
c. Computation of:
1. Raw materials used
= Beginning Inventory + Purchases - Ending Inventory
= $17,000 + $75,000 - $19,000
= $73,000
2. Completed jobs transferred to finished goods
= Beginning WIP + Raw materials used + Labor + Overhead - Ending WIP
= $9,000 + $73,000 + $80,000 + $36,000 - $14,000
= $184,000
3. Cost of goods sold
= Beginning Finished Goods + Manufacturing Costs - Ending Finished Goods
= $11,000 + $184,000 - $8,000
= $197,000
4. Under- or overapplied overhead
= Total Incurred manufacturing overhead - applied manufacturing overhead
= $33,000 - $36,000
= $3,000 over-applied
Explanation:
a) Data:
Beginning Ending
Inventories:
Raw materials $17,000 $19,000
Work in process 9,000 14,000
Finished goods 11,000 8,000
Total $37,000 $41,000
Below is the Retained Earnings account for the year 2020 for Swifty Corp. Retained earnings, January 1, 2020 $261,300 Add:_______.
Gain on sale of investments (net of tax) $44,900
Net income 88,200
Refund on litigation with government, related to the year 2017 (net of tax) 25,300
Recognition of income earned in 2019, but omitted from income statement in that year (net of tax) 29,100 187,500 448,800
Deduct:
Loss on discontinued operations (net of tax) 38,700
Write-off of goodwill (net of tax) 63,700
Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2020 (net of tax) 26,900
Cash dividends declared 35,700 165,000
Retained earnings, December 31, 2020 $283,800
Prepare a corrected retained earnings statement. Waterway Corp. normally sells investments of the type mentioned above. FIFO inventory was used in 2020 to compute net income. (List items that increase adjusted retained earnings first.)
Answer:
Swifty Corp.
Retained Earnings Statement
Retained earnings, January 1, 2020 $261,300
Correction of error from prior period $29,100
Adjustment for change in accounting principle - $26,900
Retained earnings, January, Adjusted $263,500
Add Net Income $56,000
Less Cash dividend -$35,700
Retained earnings, December 31, 2020 $283,800
Workings
Net Income $88,200
+ Gain on sale of investments (net of tax) $44,900
Refund on litigation with government $22,530
$158,400
- Loss on discontinued operation $38,700
Write-off of goodwill $63,700
Net Income $56,000
This activity is important because as world trade has grown, more companies have entered the global market. Once a firm decides to enter the global market, it must choose which means of market entry is the most appropriate. The global market entry strategies vary greatly on the dimensions of financial commitment, risk, marketing control, and profit potential.
The goal of this exercise is to demonstrate your understanding of the different types of global market entry strategies: exporting, licensing, joint venture, and direct investment. Roll over each company name to read the description of the firm's strategy, then drop it onto the correct global market entry strategy within the graphic.
1. Yoplait
2. Moodmatcher lipstick
3. McDonald's
4. Ericsson and CGCT
5. Boeing
6. Nissan
A. Indirect Exporting
B. Direct Exporting
C. Licensing
D. Franchising
E. Joint Venture
F. Direct Investment
Answer:
1. Yoplait ⇒ C. Licensing . Yoplait is the largest yogurt license in the world.
2. Moodmatcher lipstick ⇒ A. Indirect Exporting . It produces their products in the US and then sells them abroad through trading companies.
3. McDonald's ⇒ D. Franchising . McDonald's is one of the largest franchises in the world and it operates in a similar manner everywhere.
4. Ericsson and CGCT ⇒ E. Joint Venture . Ericsson is a Swedish telecommunications company and CGCT is a French company.
5. Boeing ⇒ B. Direct Exporting . Boeing is America's largest exporter. It opened its first overseas facility on December 15, 2018, in response to the trade dispute between China and the US. But the vast majority of its planes are still built int eh US.
6. Nissan ⇒ F. Direct Investment. Nissan is part of a French-Japanese car company that produces its cars on their own plants located around the world.
Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the current period, the company reports the following data.
Rounded Edge Squared Edge Total
Direct materials $ 9,500 $ 21,600 $ 31,100
Direct labor 6,200 11,800 18,000
Overhead (300% of direct labor cost) 18,600 35,400 54,000
Total cost $ 34,300 $ 68,800 $ 103,100
Quantity produced 10,500 ft. 14,000 ft.
Average cost per ft. (rounded) $ 3.27 $ 4.91
Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $54,000 of overhead costs incurred by the two product lines to see whether cost per foot would change markedly from that reported above. She has collected the following information.
Overhead Cost Category (Activity Cost Pool) Cost
Supervision $ 2,160
Depreciation of machinery 28,840
Assembly line preparation 23,000
Total overhead $ 54,000
She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.)
Usage
Overhead Cost Category (Activity Cost Pool) Driver Rounded Edge Squared Edge Total
Supervision Direct labor cost ($) $ 6,200 $ 11,800 $ 18,000
Depreciation of machinery Machine hours 400 hours 800 hours 1,200 hours
Assembly line preparation Setups (number) 32 times 93 times 125 times
Required:
Use this information to (1) assign these three overhead cost pools to each of the two products using ABC, (2) determine average cost per foot for each of the two products using ABC, and (3) compare the average cost per foot under ABC with the average cost per foot under the current method for each product. For part 3, explain why a difference between the two cost allocation methods exists.
Answer:
Overhead Cost Category (Activity Cost Pool) Cost
Supervision $2,160
Depreciation of machinery $28,840
Assembly line preparation $23,000
Total overhead $54,000
Supervision
Direct labor cost ($) $6,200 $11,800 $18,000
Depreciation of machinery
Machine hours 400 hours 800 hours 1,200 hours
Assembly line preparation Setups (number)
32 times 93 times 125 times
1)
overhead costs assigned to Rounded Edge
supervision = $2,160 x ($6,200 / $18,000) = $744
depreciation = $28,840 x (400 / 1,200) = $9,613
assembly line preparation = $23,000 x (32/125) = $5,888
total overhead costs = $16,245
overhead costs assigned to Squared Edge
total overhead costs = $54,000 - $16,245 = $37,755
2)
total costs assigned to Rounded Edge
materials $9,500
direct labor $6,200
overhead $16,245
total $31,945
cost per foot = $31,945 / 10,500 = $3.0424 per foot
total costs assigned to Squared Edge
materials $21,600
direct labor $11,800
overhead $37,755
total $71,155
cost per foot = $71,155 / 14,000 = $5.0825 per foot
3)
The average cost per foot of Rounded Edge decreased because lower overhead costs were allocated to their production.
The average cost per foot of Squared Edge increased because higher overhead costs were allocated to their production.
A stock has an average expected return of 10.8 percent for the next year. The beta of the stock is 1.22. The T-Bill rate is 5% and the T-Bond rate is 3.4 %. What is the market risk premium
Answer: 4.7%
Explanation:
Expected return is calculated as:
= Risk free return + Beta ( Market risk premium)
10.8% = 5% + (1.22 × Market risk premium)
10.8% - 5% = 1.22market risk premium
5.8%/1.22 = market risk premium
Market risk premium = 0.058/1.22
Market risk premium = 0.047
Market risk premium = 4.7%
Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 73,000 chairs. During the month, the firm completed 78,000 chairs, and transferred them to the Finishing Department. The firm ended the month with 10,000 chairs in ending inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is used by Comfort. Beginning work in process was 30% complete as to conversion costs, while ending work in process was 80% complete as to conversion costs.
Beginning inventory:
DIrect materials $24,000
Conversion costs $35,000
Manufacturing costs added during the accounting period:
Direct materials $168,000
Conversion costs $278,000
1. What were the equivalent units for conversion costs during February? (HINT: The answer is 81,500, but I need work to support this)
2. What is the amount of direct materials cost assigned to ending work-in-process inventory at the end of February? (HINT: The answer is $23,000, but I need work to support this)
Answer:
1) total equivalent units:
materials = 73,000
conversion = 81,500
2) costs assigned to ending WIP:
materials = $23,013.70
conversion = $27,288.32
Explanation:
beginning WIP 78,000 + 10,000 - 73,000 = 15,000
materials = 100% (0 added during the period)
conversion = 30% (70% added during the period, 10,500 EU)
units started 73,000
units finished 78,000
units started and finished = 63,000
ending WIP 10,000
materials = 100%
conversion = 80%, 8,000 EU
Beginning WIP
Materials $24,000
Conversion $35,000
Costs added during the period:
Materials $168,000
Conversion $278,000
total equivalent units:
materials = 73,000
conversion = 10,500 + 63,000 + 8,000 = 81,500
cost per EU:
Materials = $168,000 / 73,000 = $2.30137
Conversion = $278,000 / 81,500 = $3.41104
costs assigned to ending WIP:
materials = 10,000 x $2.30137 = $23,013.70
conversion = 8,000 x $3.41104 = $27,288.32
"Ayres Services acquired an asset for $80 million in 2021." The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). Ayers deducted 100% of the asset's cost for income tax reporting in 2021. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2021, 2022, 2023, and 2024 are as follows: ($ in millions)
2021 2022 2023 2024
Pretax accounting income $330 $350 $365 $400
Depreciation on the income statement 20 20 20 20
Depreciation on the tax return (80 ) (0 ) (0 ) (0 )
Taxable income $270 $370 $385 $420
For December 31 of each year, determine:
a. The cumulative temporary book-tax difference for the depreciable asset.
b. The balance to be reported in the deferred tax liability account.
Answer:
a. The cumulative temporary book-tax difference for the depreciable asset are as follows:
December 31, 2021 = $60 million
December 31, 2022 = $40 million
December 31, 2023 = $20 million
December 31, 2024 = $0
b. The balance to be reported in the deferred tax liability account are as follows.
December 31, 2021 = $15 million
December 31, 2022 = $10 million
December 31, 2023 = $5 million
December 31, 2024 = $0
Explanation:
Note: See the attached excel file for the calculation of cumulative temporary book-tax difference for the depreciable asset and the balance to be reported in the deferred tax liability account for December 31 of years 2021, 2022, 2023 and 2024 in bold red color.
In the attached excel file, the following formula are used:
Cumulative Temporary differences at December 31 of the current year = Cumulative Temporary differences at December 31 of the previous year + (Depreciation on the tax return at December 31 of the current year - Depreciation on the income statement at December 31 of the current year)
Balance to be reported in deferred tax liability account at December 31 of the current year = Cumulative Temporary differences at December 31 of the current year * Tax rate
Which section of a CAR Residential Purchase Agreement is a provision divided into three sections: mediation, arbitration of disputes, and additional terms?
Answer: Appraisal contingency and Removal.
Explanation:
The appraisal contingency, is a kind of CAR residential purchase agreement, which allows a buyer to back out of the deal if the house appraises for less than the already agreed-upon value. and the loan contingency, this term lets the buyer back out if he/she can't get their loan approved for the said purposes.
The section of a car residential purchase agreement that separates it into three sections would be:
Section 9C
The section titled 9C functions to separate the property purchase provisions into three varied divisions. These divisions include mediation followed by arbitration of disputes, and the external terms that fulfill the remaining ones.The other options are present in order to fulfill if either of them fails to resolve the dispute.Thus, "section 9C" is the correct answer.
Learn more about "Residential Agreement" here:
brainly.com/question/10539028
What is a sum of money that is borrowed and is expected to be paid back with interest?
Selected Information from Balance Sheets (As of Year End for Years 0 and 1)
Year 0 Year 1
Cash 1,000 2,000
Accounts Receivables 1,000 5,000
Inventory 5,000 4,000
Property, Plant and Equipment (net) 12,000 11,000
Accounts Payable 5,000 4,000
Unearned Revenue 2,000 1,000
Bonds Payable 5,000 6,000
Common Stock 3,000 4,000
Retained Earnings 5,000 7,000
Income Statement (Year 1)
Sales 20,000
Costs of Goods Sold (8,000)
Wage Expense (4,000)
Depreciation Expense (2,000)
Loss from PP&E Sale (1,000)
Net Income Before Tax 5,000
Tax Expense (2.000)
Net Income 3.000
In the space provided, prepare the Operating section of the statement of cash flow for Year 1, using the indirect approach.
Answer:
The Operating Activities section of the Statement of Cash Flow for Year 1:
Net Income $3,000
Add non-cash expenses:
Depreciation Expense 2,000
Loss from PP&E Sale 1,000
Operating cash flow 6,000
Changes working capital -5,000
Net cash flow from operating activities 1,000
Explanation:
Changes in working capital items:
Year 0 Year 1 Changes
Accounts Receivables 1,000 5,000 -4,000
Inventory 5,000 4,000 1,000
Accounts Payable 5,000 4,000 -1,000
Unearned Revenue 2,000 1,000 -1000
Net changes in working capital -5,000
Read the following sentences, and identify the error.
a. Paolo recruited job applicants for the company that showed promise.
The error in this sentence is a:_________ .
b. We will be visiting our accounts in California, Oregon, and visiting our accounts in Washington.
The error in this sentence is a:________ .
Before you decide whether to use passive or active voice, you should consider the purpose of your message and the nature of the situation. Read the scenario, and then fill in the blanks.
You work for a printing company, and you realize that your colleague sent incorrect price quotes to a client. You begin to write an e-mail to the client to apologize for the mistake. You want to remedy the situation without criticizing your colleague. The sentence excerpted from the e-mail uses ______________ voice. Given the purpose of your message, this voice ___________ appropriate.
Answer:
a. Paolo recruited job applicants for the company that showed promise.
The error in this sentence is a: AMBIGUITY.
Who showed promise? The company or the job applicants? This sentence is not specific and you really cannot tell whether the job applicants or the company showed promise.
b. We will be visiting our accounts in California, Oregon, and visiting our accounts in Washington.
The error in this sentence is a: LACK OF PARALLELISM.
In order to show parallelism you should include the dates of the visits, since you cannot visit all 3 states in the same day and do your work properly.You work for a printing company, and you realize that your colleague sent incorrect price quotes to a client. You begin to write an e-mail to the client to apologize for the mistake. You want to remedy the situation without criticizing your colleague.
The sentence is missing, so I looked for a similar question:
"Bill made an error when he was processing your invoice."
The sentence excerpted from the e-mail uses ACTIVE voice. Given the purpose of your message, this voice IS NOT appropriate.
The whole purpose of this message is to solve a problem without criticizing Bill, but by using active voice, you are directly criticizing him.How much would the Gerrards have to put down if the lender required a minimum 20 percent down payment
Answer:
the first part of the question is missing, so I looked for similar questions to fill in the blanks:
Ben and Marie Gerrard, both in their mid-20s, have been married for 4 years and have two preschool-age children. Ben has an accounting degree and is employed as a cost accountant at an annual salary of $63,000. They're now renting a duplex but wish to buy a home in the suburbs of their rapidly developing city. They've decided they can afford a $210,000 house and hope to find one with the features they desire in a good neighborhood.
If the Gerrards are required to make a minimum 20% down payment, then they need to pay at least $210,000 x 20% = $42,000.
Many lenders require a minimum down payment for a mortgage loan and others charge different interest rates depending on the down payment percentage, e.g. if your down payment represents 30% of the house's value, the interest rate will be lower than a loan with a 20% down payment. The logic behind this is that the higher the down payment, the safer the loan.
Your firm has taken out a 521,000 loan with 8.6% APR (compounded monthly) for some commercial property. As is common in commercial real estate, the loan is a 5-year loan based on a 15-year amortization. This means that your loan payments will be calculated as if you will take 15 years to pay off the loan, but you actually must do so in 5 years. To do this, you will make 59 equal payments based on the 15-year amortization schedule and then make a final 60th payment to pay the remaining balance.
A. What will your monthly payments be?
B. What will your final payment be?
Answer:
A. What will your monthly payments be?
$5,161.08B. What will your final payment be?
$419,650Explanation:
loan = $521,000
interest rate = 8.6% compounded monthly
loan schedule = 15 years
monthly payment = loan amount / PV annuity factor, 0.7167%, 180 periods* = $521,000 / 100.94786 = $5,161.08
No annuity table will give you the annuity factor for 0.7167%, so you must search for an annuity calculator on the web.
Then I prepared an amortization schedule to determine the balance after the 59th payment (attached file). The balance after the 59th payment is $416,649 + $3,001 in interests = $419,650.
What is the main goal of the creation of the federal budget?
A,) to allow the economy to run on its own
B.) to slow most economic progress
C.) to manage businesses and increase spending on all programs
D.) to decide how to manage the government’s tax revenue and expenditures
Answer: the answer is D
Explanation: on Ed2020
Answer:
D is the Answer
Explanation:
Edge