Question Completion:
The beginning inventory of merchandise at Keats Office Supplies and data on purchases and sales for a three-month period are as follows:
Date Transaction No. of Units Per Unit Total
March 3 Inventory 66 $225 $14,850
March 8 Purchase 132 270 35,640
March 11 Sale 88 750 66,000
March 30 Sale 55 750 41,250
April 8 Purchase 110 300 33,000
April 10 Sale 66 750 49,500
April 19 Sale 33 750 24,750
April 28 Purchase 110 330 36,300
May 5 Sale 66 790 52,140
May 16 Sale 88 790 69,520
May 21 Purchase 198 360 71,280
May 28 Sale 99 790 78,210
Answer:
Keats Office Supplies
Total sales (495 units) = $381,370
Cost of goods sold $147,510
Gross profit $233,860
Explanation:
a) Data and Calculations:
Date Transaction No. of Units Per Unit Costs Revenue
March 3 Inventory 66 $225 $14,850
March 8 Purchase 132 270 35,640
March 11 Sale -88 750 66,000
March 30 Sale -55 750 41,250
April 8 Purchase 110 300 33,000
April 10 Sale -66 750 49,500
April 19 Sale -33 750 24,750
April 28 Purchase 110 330 36,300
May 5 Sale -66 790 52,140
May 16 Sale -88 790 69,520
May 21 Purchase 198 360 71,280
May 28 Sale -99 790 78,210
Total:
Cost of goods available 616 -495 = 121 $191,070 $381,370
May 31 Ending Inventory, using FIFO = 121 units 360 $43,560
Cost of goods sold = Cost of goods available for sale Minus Ending Inventory = $191,070 - $43,560 = $147,510
Celery Company has assets of $150,000, liabilities of $90,000, and equity of $60,000. It buys supplies for cash $5,000. What effect would this transaction have on the accounting equation?
Answer:
Assets increase by $5,000 increase, equity decrease by $5000
Explanation:
The accounting equation is expressed as below.
Assets = Liabilities + shareholders equity
Assets are valuable items that the business owns.Liabilities are the debts of the business.Shareholder equity is the owner's capital, plus the retained earnings.The transaction by Celery Company involves buying supplies valued at $5000 by cash.
Since celery paid cash, no liabilities were incurred. The shareholder money (Equity) decreased by $5000. Supplies worth $5000 were acquired. The suppliers belong to the business; they are valuable items( assets) to the business.Maya likes to take a lot of notes in class, but she's not always sure how to structure what she writes. She's tried different methods of taking notes, but they've all been too difficult for her. What type of notes would you recommend Maya use if she doesn't like to conform to a strict structure?
A.
concept map method
B.
outline method
C.
free-form method
D.
concept map and outline combination
B. outline method
good luck
Kenya performs research and creates reports for her boss, the company's Chief Executive, Kenya's job title is best
described as
Liz responds to people who contact a company. She deals with people who visit the office in person and people who
call or e-mail the company. Her job title is best described as
Neil handles important paperwork that his office needs to keep track of. He sorts paperwork and keeps it handy so he
can retrieve information whenever it is needed. His job title is best described as
Salvador organizes information and appointments for a department manager. He also reviews and sorts e-mail for his
boss. His job title is best described as
Answer:
Kenya performs research and creates reports for her boss, the company's Chief Executive, Kenya's job title is best
described as an Executive Administrative Assistant
Liz responds to people who contact a company. She deals with people who visit the office in person and people who
call or email the company. Her job title is best described as a Receptionist
Neil handles important paperwork that his office needs to keep track of. He sorts paperwork and keeps it handy so he
can retrieve information whenever it is needed. His job title is best described as a File Clerk.
Salvador organizes information and appointments for a department manager. He also reviews and sorts e-mail for his
boss. His job title is best described as an Administrative Assistant.
Explanation:
The administrative assistants, receptionists, and file clerks perform important functions. In their various capacities and roles, they help their bosses to function more efficiently and effectively by relieving them of routine tasks. As they perform these duties, their bosses are enabled to concentrate their efforts and time in managing their assigned responsibilities. However, these job titles are not universally uniform, as it depends on the organization.
Answer:
1. Executive Administrative Assistant
2. Receptionist
3. File Clerk
4. Administrative Assistant
Explanation:
The Video Privacy Protection Act was a direct result of over zealous reporters checking on the "personal viewing habits" (information privacy) of a political nominee for whom the Act was named:_______
a. Maloney Bill
b. Rutledge Bill
c. Pork Bill
d. Bork Bil
Answer:
d. Bork Bill
Explanation:
The Video Privacy Protection Act was a direct result of over zealous reporters checking on the "personal viewing habits" (information privacy) of a political nominee for whom the Act was named Bork Bill.
It was a bill passed (enacted) by the 100th Congress of the United States of America and signed into law by President Ronald Reagan on the 5th of November, 1988. The Video Privacy Protection Act (VPPA) was signed as a public law in reaction to the wrongful disclosure of the video rental records of Robert Heron Bork in a newspaper publication. Robert Heron Bork is a former Chief Judge of the court of appeal and was a Supreme Court nominee at the time when his video rental records were published by a newspaper. Therefore, due to the fact that US Congress passed (enacted) the Video Privacy Protection Act (VPPA) during the period; it was nicknamed as Bork Bill.
A double-entry accounting system is an accounting system: Multiple Choice That records each transaction twice. That records the effect of each transaction in at least two accounts with equal debits and credits. In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits. That allows total credits to be greater than total debits. That allows total debits to be greater than total credits.
Answer:
That records the effect of each transaction in at least two accounts with equal debits and credits.
Explanation:
A double-entry accounting system is the accounting system in which it shows the impact of each transaction in terms of debit and credit. In this the amount of credit should be equivalent to the amount of credit that means both the amount should be equivalent to each other
hence, the second option is correct and the same is to be considered
A construction company entered into a fixed-price contract to build an office building for $20 million. Construction costs incurred during the first year were $6 million and estimated costs to complete at the end of the year were $9 million. The company recognizes revenue over time according to percentage of completion. How much revenue and gross profit or loss will appear in the company’s income statement in the first year of the contract? (Enter your answer in whole dollars.)
Answer:
$2 million or $2,000,000
Explanation:
The computation of the revenue and gross profit or loss will appear in the company’s income statement in the first year is shown below:
= revenue recognized - cost incurred
The Total cost is
= $6 + $9
= $15
And, the revenue recognized is
= $6 ÷ $15 × $20
= $8
So, the gross profit is
= $8 - $6
= $2
hence, the gross profit is $2 million
You want $1.5M to retire in 45 years. You have $15,000 today. If you can deposit the funds in a money market account which earns 4.5% interest per year, and say you plan to make yearly deposits, how large should the annual deposits be? Group of answer choices
Answer:
$10,020
Explanation:
The computation of the large amount that should be deposited is shown below:
Future value of annuity is
= Annuity × [(1+rate)^time period-1] ÷ rate
= Annuity × [(1.045)^45-1] ÷ 0.045
= Annuity × 138.8499651
Future value = Present value (1 +interest rate)^number of years
where
= $15,000 × (1.045)^45
Now
The total future value: is
$1,500,000 = $15,000 × (1.045)^45 + Annuity × 138.8499651
$1,500,000 = ($15,000 ×7.24824843) + Annuity × 138.8499651
Annuity = ($1,500,000 - $108,723.7264) ÷ 138.8499651
= $10,020
Minden, Mel, and Montana decide to liquidate their partnership. All assets are sold, and the liabilities are paid. Following these transactions, the capital balances are as follows: Minden, $27,400; Mel, $(12,600); Montana, $43,500. The income-sharing ratio for Minden, Mel, and Montana is 3:4:3. Mel is unable to contribute any assets to reduce the deficiency. How much cash will Montana receive as a result of the partnership liquidation
Answer:
Minden, Mel, and Montana
Montana will receive $37,200 following the partnership liquidation.
Explanation:
Capital balances Income-sharing ratios New sharing ratios
Minden, $27,400; 3/10 1/2
Mel, $(12,600); 4/10 0
Montana, $43,500 3/10 1/2
The negative balance of Mel's capital will be shared equally between Minden and Montana, thus:
Minden = $12,600/2 = $6,300
Montana = $12,600/2 = $6,300
Montana is now entitled to receive $37,200 ($43,500 - $6,300)
Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze. Allocate the joint cost to L-Ten, Triol, and Pioze using the constant gross margin percentage method.
Answer:
L-Ten, Triol and Pioze
Revenue $1,000,000 ; $2,000,000 ; $700,000
Total Costs $750,000 ; $750,000 ; $510,000
Gross Profits $250,000 ; $1,250,000 $190,000
Explanation:
Gross Margin percentage = Gross margin / Revenue
Gross Margin Percentage = Total Gross Margin of all products / Total revenue
Gross Margin Percentage = $1,690,000 / $3,700,000 = 0.45
Gross margin percentage is 45%
The DeVille Company reported pretax accounting income on its income statement as follows:_____.
2018 $440,000
2019 360,000
2020 430,000
2021 470,000
Included in the income of 2018 was an installment sale of property in the amount of $66,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $26,400 in 2019, $33,000 in 2020, and $6,600 in 2021. Included in the 2020 income was $28,000 interest from investments in municipal bonds. The enacted tax rate for 2018 and 2019 was 30%, but during 2019 new tax legislation was passed reducing the tax rate to 25% for the years 2020 and beyond.
Required:
Prepare the year-end journal entries to record income texes for the year 2018-2021.
Answer:
Entries and their narrations are posted below
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
Journal Entries
2018
Dr Tax Expenses 132000
Cr Deferred Tax Liability (66000*30%) 19800
Cr Tax Payable (374000*30%) 112200
2019
Dr Tax Expenses 106,020
Dr Deferred Tax Liability (66000-26400)*25% 9,900
Cr Tax Payable (386400*30%) 115,920
2020
Dr Tax Expenses 100500
Dr Deferred Tax Liability (33000*25%) 8250
Cr Tax Payable (430000-28000+33000)*25% 108750
2021
Dr Tax Expenses 117750
Dr Deferred Tax Liability (5600*25%) 1400
Cr Payable (470000+6600)*25% 119150
Working
2018
Accrued Income 440000
Less: Instalment Revenue -66000
Taxable Income 374000
2019
Accrued Income 360000
Add: Instalment collection 26400
Taxable Income 386400
2020
Accrued Income 430000
Less: Interest from municipal Bonds -23000
Add: Instalment collection 28000
Taxable Income 435000
2021
Accrued Income 470000
Add: Instalment collection 6600
Taxable Income 476600
Suppose you are interviewing someone for the position of sales representative. Which of these personality traits might be a useful predictor of performance?
a. High Machiavellianism
b. High authoritarianism
c. External locus of control
d. Low self-efficacy
e. High extraversion
Answer:
e. High extraversion
Explanation:
The personality trait that can be a useful performance indicator for the position of a sales representative would be the trait of high extraversion.
Extroversion is a personality trait of more sociable people, that is, they are people who have the ability to maintain relationships with other people, have socialization facilities and have high energy to deal with social situations, such as parties, meetings and negotiations.
An outgoing sales rep could be helpful in personally dealing with customers and convincing customers with helpful arguments to buy the product.
The personality traits that might be a useful predictor of performance is option e. High extraversion
What is a personality trait?
It should be treated as a useful performance indicator for the position of the sales representative. Here the extroversion represent the trait for the sociable people where they are capable for maintaining a relationship with other people, have socialization facilities also deals in social situations like parties, meeting, etc
Therefore, the option e is correct.
Learn more about performance here: https://brainly.com/question/24323492
Delta Diamonds uses a periodic inventory system. The company had five one-carat diamonds available for sale this year: one was purchased on June 1 for $800, two were purchased on July 9 for $900 each, and two were purchased on September 23 for $950 each. On December 24, it sold one of the diamonds that was purchased on July 9. Using the specific identification method, its ending inventory (after the December 24 sale) equals:
Answer: $2650
Explanation:
Using the specific identification method, its ending inventory (after the December 24 sale) will be:
Units for sale = 5 units
Units sold = 1
It should be noted that the unit that was sold was the one that was bought on July 9th.
Ending units will now be:
= $800 + ($2 × $900) + $950 - $900
= $800 + $1800 + $950 - $900
= $3550 - $900
= $2650
Type the correct answer in the box, Spell all words correctly.
What is the name given to the path goods take to go from the manufacturer to the consumer?
The path goods take to go from the manufacturer to the consumer is called the
Answer:
It's called the channel of distribution
Answer:
The answer is: Distribution channel
Explanation:
I got it right.
An investment offers a total return of 14.0 percent over the coming year. Janice Yellen thinks the total real return on this investment will be only 5.5 percent.
Required:
What does Janice believe the inflation rate will be over the next year?
Answer:
8.06%
Explanation:
According to the Fisher equation
( 1 + Total rate of return) = (1 + real rate of return) x ( 1 + inflation rate)
(1.14) = (1.055) x ( 1 + inflation rate)
Inflation rate = 1.080569 - 1 = 0.080569 = 8.06%
Mr. and Mrs. Anderson own three shares of Magic Tricks Corporation's common stock. The market value of the stock is $60. The Andersons also have $48 in cash. They have just received word of a rights offering. One new share of stock can be purchased at $48 for each three shares currently owned (based on three rights). (Do not round intermediate calculations and round your answers to the nearest whole dollar.) a. What is the value of a right?
Answer:
$2
Explanation:
According to the given situation, the computation of the value of a right is shown below:-
Value of a right = (Market value of right + Subscription right) ÷ Number of rights 1
= ($60 - $48) ÷ (5 + 1)
= $12 ÷ 6
= $2
Therefore for computing the value of a right we simply applied the above formula and the same is to be considered
You observed the bid rate of a New Zealand dollar is $.3324 while the ask rate is $.3342 at Bank X. The bid rate of the New Zealand dollar is $.3232 while the ask rate is $.3249 at Bank Y. What would be your dollar amount profit if you use $1,000,000 to execute locational arbitrage?
Answer:
The amount of profit is $23,084
Explanation:
First of all we need to convert the $1,000,000 to NZ$ as follow
Amount in NZ$ = Amount / Ask rate at Bank Y
Amount in NZ$ = $1,000,000 / $0.3249 per NZ$
Amount in NZ$ = NZ$ 3,077,870.11
Now sell the amount in the Bank X
Amount of Dollar available after sale = Amount in NZ$ x bid rate at Bank X
Amount of Dollar available after sale = NZ$ 3,077,870.11 x $0.3324 per NZ$
Amount of Dollar available after sale = $1,023,084.03
Now calculate the arbitrage profit
Arbitrage profit = $1,023,084.03 - $1,000,000
Arbitrage profit = $23,084.03
Arbitrage profit = $23,084
Make way for India - the next China China grows at around 9 percent a year, but its one-child policy will start to reduce the size of China's working-age population within the next 10 years. India, by contrast, will have an increasing working-age population for another generation at least. Then answer the following questions: According to classical growth theory, restricting China's population ______ economic growth. According to new growth theory, restricting China's population growth ______ economic growth.
Answer:
The answer is "India and increases".
Explanation:
Since its working-age population is rising, India will have a higher economic growth rate, and according to traditional thinking, restricting China's people would boost economic growth.
The modernization theory includes reducing population growth in China would reduce economic growth. In India, real GDP per person has a growth of 8-1.6 = 6.4% as well as that of China is 9-0.6 = 8.4% in 2005. In India, the doubling time is 70/6.4% = 11 years or 2016 and in China, 8.33 or 2014.On April 30, one year before maturity, Middleton Company retired $200,000 of its 9% bonds payable at the current market price of 101 (101% of the bond face amount, or $200,000 1.01 3 5 $202,000). The bond book value on April 30 is $196,600, reflecting an unamortized discount of $3,400. Bond interest is currently fully paid and recorded up to the date of retirement. What is the gain or loss on retirement of these bonds
Answer:
Loss on retirement of these bonds = $5,400
Explanation:
Particulars Amount
Amount paid $202,000
Book value of bonds $196,600
Loss on retirement of bonds $5,400
However, this is not a real economic gain
Exercise 17-5 Assigning costs using ABC LO P3 Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go-karts: Deluxe and Basic. Activity Expected Costs Expected Activity Handling materials $ 625,000 100,000 parts Inspecting product 900,000 1,500 batches Processing purchase orders 105,000 700 orders Paying suppliers 175,000 500 invoices Insuring the factory 300,000 40,000 square feet Designing packaging 75,000 2 models Assume that the following information is available for the company’s two products for the first quarter of this year. Deluxe Model Basic Model Production volume 10,000 units 30,000 units Parts required 20,000 parts 30,000 parts Batches made 250 batches 100 batches Purchase orders 50 orders 20 orders Invoices 50 invoices 10 invoices Space occupied 10,000 sq. ft. 7,000 sq. ft Models 1 model 1 model Required: Compute activity rates for each activity and assign overhead costs to each product model using activity-based costing (ABC). What is the overhead cost per unit of each model? (Round activity rate and average OH cost per unit answers to 2 decimal places.)
Answer:
Instructions are below.
Explanation:
First, we need to calculate the activity rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Handling materials= 625,000/100,000= $6.25 per part
Inspecting product= 900,000/1,500= $600 per batch
Processing= 105,000/700= $150 per order
Paying suppliers= 175,000/500=$350 per invoice
Insuring the factory= 300,000/40,000= $7.5 per square feet
Designing packaging= 75,000/2= $37,500 per model
Now, we can allocate overhead to each model:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Deluxe:
Handling materials= 6.25*20,000= 125,000
Inspecting product= 600*250= 150,000
Processing= 150*50= 7,500
Paying suppliers= 350*50= 17,500
Insuring the factory= 7.5*10,000= 75,000
Designing packaging= 37,500*1= 37,500
Total allocated overhead= $412,500
Basic:
Handling materials= 6.25*30,000= 187,500
Inspecting product= 600*100= 160,000
Processing= 150*20= 3,000
Paying suppliers= 350*10= 3,500
Insuring the factory= 7.5*7,000= 52,500
Designing packaging= 37,500*1= 37,500
Total allocated overhead= $444,000
Finally, the unitary overhead:
Deluxe= 412,500/10,000= $41.25
Basic= 444,000/30,000= $14.8
When considering an investment, which of the following is not one of the three critical factors used to evaluate future earnings potential of that investment?
a. Global event factors.
b. Economy-wide factors.
c. Industry factors.
d. Individual company factors.
Answer:
A) Global event factor
Explanation:
What are the 3 activities that took place during the forming stages
Explanation:
The three activities that took place in the forming stages are:
Team members introduce to each other, they share their backgrounds and information about their interests and experience and develop impressions towards each other. Team members come to know about each other strengths, interests, and challenges. Team members learn about the project they are doing work and they discuss the project's goals and they conceive about what contribution and role they are going to perform on the particular project.A year after buying her car, Anita has been offered a job in Europe. Her car loan is for $27,000 at a 6% nominal interest rate for 48 months. If she can sell the car for $20,000, how much does she get to keep after paying off the loan
Answer:
Instead of keeping a balance she would rather need to pay the remaining mortgage balance of $843.51
Explanation:
The first task here is to compute the monthly payment of the car loan using the formula below:
PMT=P(r/n)/1-(1+r/n)^(-nt)
P=loan amount= $27,000
r=interest rate=6 %
n=number of monthly payments in a year=12
t= duration of loan=4 years ( 48/12)
PMT=27000*(6%/12)/(1-(1+6%/12)^(-4*12)
PMT=27000*(6%/12)/(1-(1+6%/12)^(-48)
PMT=27000*(6%/12)/(1-(1.005)^-48
PMT=135 /(1-0.787098411 )
PMT=634.10
The balance of the loan after one year is the present value of the remaining 36 monthly payments as computed thus:
PV=monthly payment*(1-(1+r)^-n/r
monthly payment=634.10
r=monthly interest rate=6%/12=0.5%
n=number of monthly payments left=36
PV=634.10*(1-(1+0.5%)^-36/0.5%
PV=634.10*(1-0.835644919 )/0.5%
pv=$20,843.51
balance left after paying the loan=$20,000-$20,843.51 =-$843.51
You are mentoring a new female manager who has asked you for your advice on getting ahead in your organization. What advice to women should you be prepared to discuss with your mentee?
a. Women who plan to have children should approach their careers less ambitiously, since whatever gains they work for will be lost when they begin to prioritize child rearing.
b. Women should adopt traditionally feminine body language, such as tilting the head, to avoid being seen as too aggressive.
c. Women should seize opportunities to shine and insist on being recognized for their successes rather than wait and hope to be rewarded
d. Women should seek out a mentor early in their careers because having one will make success come easier.
Answer: C. Women should seize opportunities to shine and insist on being recognized for their successes rather than wait and hope to be rewarded
Explanation:
Out of the options, the advice that should be given to women on getting ahead in an organization is to seize opportunities to shine, work hard and give their all towards the achievement of the organizational goals and objectives.
Women should not see themselves as been inferior to their male counterparts in their organizations, they should believe that they're equal and always perform well so that they'll be easily recognized.
Women
Lusk Corporation produces and sells 15,500 units of Product X each month. The selling price of Product X is $25 per unit, and variable expenses are $19 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $74,000 of the $105,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the monthly financial advantage (disadvantage) for the company of eliminating this product should be: Multiple Choice $43,000 $12,000 ($43,000) ($62,000)
Answer:
($62,000)
Explanation:
Calculation for the monthly financial advantage (disadvantage) for the company of eliminating this product
Keep Product X Drop Product X Difference
Sales $387,500 $0 $(387,500)
($25 per unit *15,500=$387,500)
Variable expenses $294,500 $0 $294,500
($19 per unit*15,500=$294,500)
Contribution margin $93,000 $0 $(93,000)
Fixed expenses $105,000 $74,000 $31,000
Net operating income (loss)$(12,000)$(74,000)$(62,000)
Therefore the monthly financial advantage (disadvantage) for the company of eliminating this product will be decrease in Net operating amount of ($62,000).
Greenwood Company manufactures two products—14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:
Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity
Machining Machine-hours $200,000 10,000 MHs
Machine setups Number of setups $100,000 200 setups
Production design Number of products $84,000 2 products
General factory Direct labor-hours $300,000 12,000 DLHs
Activity Measure Product Y Product Z
Machining 8,000 2,000
Number of setups 40 160
Number of products 1 1
Direct labor-hours 9,000 3,000
1. What is the company’s plantwide overhead rate?
2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?
3. What is the activity rate for the Machining activity cost pool?
4. What is the activity rate for the Machine Setups activity cost pool?
5. What is the activity rate for the Product Design activity cost pool?
6. What is the activity rate for the General Factory activity cost pool?
7. Which of the four activities is a batch-level activity?
8. Which of the four activities is a product-level activity?
9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y?
10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z?
11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z?
12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z?
13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)
14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?
15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z?
Answer:
Greenwood Company
1. Company's plantwide overhead rate = $57
2. Allocation of Manufacturing overhead based on plantwide overhead rate:
Product Y = $57 * 9,000 = $513,000
Product Z = $57 * 3,000 = $171,000
3. Activity rate for the Machining activity cost pool = $20 per MHs.
4. Activity rate for the Machine Setups activity cost pool = $500 per setup.
5. Activity rate for the product Design activity cost pool = $42,000 per product.
6. Activity rate for the General Factory activity cost pool = $25
7. The batch-level activity = Machine setup
8. The product-level activity = Product Design
9. Using the ABC system, Manufacturing overhead cost assigned to Product Y = $447,000
10. Using the ABC system, Manufacturing overhead cost assigned to Product Z = $237,000
11. Using the plantwide overhead rate, the percentage of the total overhead costs allocated to product Y and Product Z is:
Product Y = 75% ($513,000/$684,000 * 100)
Product Z = 25% ($171,000/$684,000 * 100)
12. Using the ABC system, the percentage of the Machining costs assigned to Product Y and Product Z is:
Product Y = 80% ($160,000/$200,000 * 100)
Product Z = 20% ($40,000/$200,000 * 100)
13. Using the ABC system, the percentage of the Machine Setups cost assigned to Product Y and Product Z is:
Product Y = 20% ($20,000/$100,000 * 100)
Product Z = 80% ($80,000/$100,000 * 100)
14. Using the ABC system, what percentage of the product design cost assigned to Product Y and Product Z is:
Product Y = 50% ($42,000/$84,000 * 100)
Product Z = 50% ($42,000/$84,000 * 100)
15. Using the ABC system, what percentage of the General Factory cost assigned to Product Y and Product Z is:
Product Y = 75% ($225,000/$300,000 * 100)
Product Z = 25% ($75,000/$300,000 * 100)
Explanation:
a) Data and Calculations:
Activity Cost Activity Measure Estimated Expected
Pool Overhead Cost Activity
Machining Machine-hours $200,000 10,000 MHs
Machine setups Number of setups $100,000 200 setups
Production design Number of products $84,000 2 products
General factory Direct labor-hours $300,000 12,000 DLHs
Total $684,000
Activity Measure Product Y Product Z
Units produced 14,000 6,000
Machining 8,000 2,000
Number of setups 40 160
Number of products 1 1
Direct labor-hours 9,000 3,000
Plantwide overhead rate = Total overhead costs/direct labor-hours
= $684,000/12,000 = $57 per DLHs
Overhead Rate =
Machining $20 ($200,000/10,000) per MHs
Machine setup $500 ($100,000/200) per setup
Production design $42,000 ($84,000/2) per product
General factory $25 ($300,000/12,000) per DLHs
Assignment of Manufacturing Overhead:
Product Y Product Z Total Product Y Product Z
Machining $160,000 $40,000 $200,000 80% 20%
Machine setup 20,000 80,000 100,000 20% 80%
Production design 42,000 42,000 84,000 50% 50%
General factory 225,000 75,000 300,000 75% 25%
Total overhead $447,000 $237,000 $684,000
During April, the Meade Enterprises had the following operating results: Sales revenue $ 1,570,000 Gross margin $ 635,000 Ending work-in-process inventory $ 53,500 Beginning work-in-process inventory $ 87,000 Ending finished goods inventory $ 103,500 Beginning finished goods inventory $ 132,000 Marketing costs $ 257,000 Administrative costs $ 157,000 What is the cost of goods manufactured for April
Answer:
$906,500
Explanation:
The computation of cost of goods manufactured for April is shown below:-
Cost of goods manufactured = (Sales revenue - Gross margin) + Ending finished good - Beginning finished goods
= ($1,570,000 - $635,000) + $ 103,500 - $132,000
= $935,000 + $103,500 - $132,000
= $906,500
Hence, the correct answer is $906,500
is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Present value Investment X $ Investment Y $ (b) Which of these cash flow streams has the higher present value at 5 percent? (Click to select) Requirement 2: (a) If the discount rate is 23 percent, what is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Present value Investment X $ Investment Y $ (b) Which of these cash flow streams has the higher present value at 23 percent?
Answer and Explanation:
1A. For investment X, given 6% discount rate, 6700 PMT, N= 9 years
Present value of investment X= 6700* PVIF using 6%, 9 years
= $45751.34
For investment Y, given 6% discount rate, 9200 PMT, N= 5 years
Present value of investment Y =9200*PVIF using 6%, 9 years
=$38753.75
1B. Investment X from the above has higher present value
2A. For investment X, given 22% discount rate, 6700 PMT, N = 9 years
Present value of investment X
=6700*PVIF using 22% ,9 years
= $25368.11
For investment Y, given 22% discount rate, 9200 PMT, N = 5 years
Present value of investment X
=9200*PVIF using 22% ,N = 5 years
= $26345.49
2B. Investment Y from the above has higher present value.
Vango, Inc. sold its van for $6,000 cash. The van's original cost was $40,000, and its Accumulated depreciation was $32,000. When recording the sale, Vango should record a ______.
Answer:
Loss on disposal of $2,000
Explanation:
Since the Van's original cost the amount of $40,000 in which the van was sold for $6,000 cash while the Accumulated depreciation was the amount of $38,000 which means that when recording the sale of the Vango, Inc should record a LOSS ON DISPOSAL of the amount of $2,000 calculated as:
Loss on disposal=Original cost -(Accumulated depreciation+Cash
Loss on disposal=$40,000-($32,000+$6,000)
Loss on disposal=$40,000-$38,000
Loss on disposal =$2,000
Therefore Vango, Inc should record a LOSS ON DISPOSAL of $2,000
A share of Lash Inc.'s common stock just paid a dividend of $2.10. If the expected long-run growth rate for this stock is 5%, and if investors' required rate of return is 18.5%, what is the stock price
Answer:
P0 = $16.333333333 rounded off to $16.33
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 * (1+g) is dividend expected for the next period g is the growth rate r is the required rate of return
P0 = 2.1 * (1+0.05) / (0.185 - 0.05)
P0 = $16.333333333 rounded off to $16.33
The value of what a Canadian-owned Tim Hortons produces in South Korea is included in the Canadian ________ and the South Korean ________
Answer: GNP; GDP
Explanation:
The value of what a Canadian-owned Tim Hortons produces in South Korea is included in the Canadian GNP and the South Korean GDP.
Gross National Product refers to the total amount of domestic production and foreign production that can be attributed to the residents of a nation.
This means that GNP includes the GDP and income earned by residents of the country in other countries but less the income earned by foreigners in the country. For Canada therefore, the value of goods produced by the Canadian company in South Korea will be added to the GNP.
Gross Domestic Product (GDP) on the other hand is simply the total final value of goods and services produced in a country regardless of if it was foreigners or residents doing the production. The value of what a Canadian-owned Tim Hortons produces in South Korea is therefore included in South Korea's GDP.
