Answer:
Material price variance = $25,000 Unfavorable
Explanation:
A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. A favorable variance is recorded where the actual total cost of materials is lower that the standard cost. While an adverse variance implies the opposite
$
200,000 pounds should have cost (200,000× $4.50)= 900,000
but did cost 925,000
Material price variance 25,000Unfavorable
Material price variance = $25,000 Unfavorable
I know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings Company’s Office Products Division. "But I want to see the numbers before I make any move. Our division’s return on investment (ROI) has led the company for three years, and I don’t want any letdown."
Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who have the highest ROIs. Operating results for the company’s Office Products Division for this year are given below:
Sales $10,000,000
Variable expenses 6,000,000
Contribution margin 4,000,000
Fixed expenses 3,200,000
Net operating income $800,000
Divisional operating assets $4,000,000
The company had an overall return on investment (ROI) of 15% last year (considering all divisions).The Office Products Division has an opportunity to add a new product line that would require an additional investment in operating assets of $1,000,000. The cost and revenue characteristics of the new product line per year would be:
Sales $2,000,000
Variable expenses 60% of sales
Fixed expenses $640,000
Requirement:
Compute the Office Products Division's ROI for the most recent year; also compute the ROI as it would appear if the new product line is added.
Answer:
1. 20.0%
2. 16.0%
Explanation:
1. Computation for the Office Products Division's ROI for the most recent year
Using this formula
ROI = Net operating income /Divisional average operating assets
Let plug in the formula
ROI= $800000/$4000000
ROI= 20.0%
Therefore the Office Products Division's ROI for the most recent year will be 20%
2. Computation for the ROI as it would appear if the new product line is added.
First step is to calculate the Net operating income using this formula
Net operating income = Sales - Variable expenses - Fixed expenses
Let plug in the formula
Net operating income= $2000000 - (60% x $2000000) - $640000
Net operating income= $160000
Now let compute the ROI
ROI = $160000/$1000000
ROI = 16.0%
Therefore the ROI as it would appear if the new product line is added is 16.0%
The fraction between the net revenue and the investment is called return on investment (ROI). A high ROI rate indicates investment profit above its generation value.
ROI can be calculated by:
[tex]\text{ROI} &= \dfrac{\text{Profit earned}}{\text{Cost of investment}}[/tex]
The Products Division's ROI will be 20% and ROI if the new product is added would be 16.0%.
1. Estimate for the Office Products Division's ROI for the most current time can be calculated as follow:
Using the formula:
[tex]\text{ROI} &= \dfrac{\text{Net operating income}}{\text{Divisional average operating assets}}[/tex]
[tex]\text{ROI} & = \dfrac{\$ 800000}{\$ 4000000}[/tex]
ROI= 20.0%
The Office Products Division's ROI for the most current time will be 20%.
2. Calculation for the ROI if the new product range is added.
The Net operating income can be calculated by using the formula:
[tex]\text{Net operating income} = \text{Sales} - \text{Variable\;expenses} - \text{Fixed expenses}[/tex]
[tex]\text{Net operating income} = \text{\$2000000} - \text{60\%} \times {\$2000000}} - \text{\$640000}[/tex]
Net operating income= $160000
Calculation of ROI:
[tex]\text{ROI} &= \dfrac{\$160000}{\$1000000}[/tex]
ROI = 16.0%
If the new product line is added then ROI will be 16.0%.
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Gary Radio Corporation is a subsidiary of Salem Companies. Gary makes car radios that it sells to retail outlets. It purchases speakers for the radios from outside suppliers for $56 each. Recently, Salem acquired the Hyden Speaker Corporation, which makes car radio speakers that it sells to manufacturers. Hyden produces and sells approximately 200,000 speakers per year, which represents 70 percent of its operating capacity. At the present volume of activity, each speaker costs $48 to produce. This cost consists of a $32 variable cost component and an $16 fixed cost component. Hyden sells the speakers for $60 each. The managers of Gary and Hyden have been asked to consider using Hyden's excess capacity to supply Gary with some of the speakers that it currently purchases from unrelated companies. Both managers are evaluated based on return on investment. Hyden's manager suggests that the speakers be supplied at a transfer price of $60 each (the current selling price). On the other hand, Gary's manager suggests a $56 transfer price, noting that this amount covers total cost and provides Hyden a healthy contribution margin.
a. What transfer price would you recommend?
b. Discuss the effect of the intercompany sales on each manager's return on investment.
c. Should Hyden be required to use more than excess capacity to provide speakers to Gary? In other words, should it sell to Gary some of the 200,000 units that it is currently selling to unrelated companies? Why or why not?
Answer:
Salem Companies
a. I recommend a transfer price of $56 per unit (in view of the excess capacity).
b. The intercompany sales at $56 per unit will increase Hyden's return on investment because it will use excess capacity to produce the required units while still selling to outside customers at $60 per unit. With regard to Gary's return on investment, there will be no change as this is the same price it buys from outside suppliers. However, if the price were to be $60 per unit, the return on investment will reduce while skyrocketing Hyden's.
c. Hyden can still sell some of the 200,000 units that it currently sells to unrelated companies at $56 if the outside demand is less than 200,000 units or if Gary will buy at $60 per unit.
Explanation:
a) Data and Calculations:
Purchase price from outside suppliers = $56 each
Production units of Hyden = 200,000
Capacity of Hyden = 285,714
Unit cost at present volume of activity = $48
Variable cost = $32
Fixed cost = $16
Transfer price by Hyden at $60:
Profit per unit = $12 ($60 - $48)
Return on investment = 25% ($12/$48 * 100)
Transfer price at $56 using excess capacity:
Incremental profit per unit = $24 ($56 - $32)
Incremental return on investment = 75% ($24/$32 * 100)
Transfer price at $56 producing below capacity:
Profit per unit = $8 ($56 - $48)
Return on investment = 16.7% ($8/$48 * 100)
35. Porter's national diamond can be used to:
Answer:
The Porter Diamond model explains the factors that can drive competitive advantage for one national market or economy over another. It can be used both to describe the sources of a nation's competitive advantage and the path to obtaining such an advantage.
Petrus Framing's cost formula for its supplies cost is $1,890 per month plus $9 per frame. For the month of March, the company planned for activity of 629 frames, but the actual level of activity was 634 frames. The actual supplies cost for the month was $7,860. The activity variance for supplies cost in March would be closest to: Multiple Choice $309 F $309 U $45 F $45 U
Answer:
Activity variance= $310 unfavorable
Explanation:
To calculate the activity variance, we need to use the standard costs and planned activity:
Activity variance= standard cost*planned activity - actual costs
Activity variance= (1,890 + 9*629) - 7,860
Activity variance= 7,551 - 7,860
Activity variance= $310 unfavorable
Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information: Activity Cost Driver Amount M XY Production setups Number of setups $ 73,000 12 18 Material handling Number of parts 49,000 68 23 Packaging costs Number of units 246,000 96,000 60,000 $ 368,000 What is the total overhead per unit allocated to Product XY using activity-based costing (ABC)
Answer:
Results are below.
Explanation:
First, we need to calculate the allocation rates:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Production setups= (73,000 / 30)= $2,433.33 per setup
Material handling= (49,000 / 91)= $538.46 per number of part
Packaging costs= (246,000 / 156,000)= $1.58 per unit
Now, we need to allocate costs to Product XY:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Production setups= 2,433.33*18= 43,799.94
Material handling= 538.46*23= 12,384.58
Packaging costs= 1.58*60,000= $94,800
Total allocated costs= $150,984.52
Finally, per unit basis:
Unitary cost= 150,984.52 /60,000= $0.27
M&M's Proposition II suggests that in a world of no taxes and no bankruptcy, ________. A. in simple terms, as the firm adds more debt to the financing mix, the shareholders require a higher and higher return on equity such that it exactly offsets the use of the cheaper debt B. no matter what the debtequity ratio is, the Ra or WACC of the firm increases with debt C. the value of the firm is sensitive to the funding choice between debt and equity D. Statements A, B, and C are all incorrect.
Answer:
A
Explanation:
Which of these are mathematical laws that help us solve numerical problems? O A decimals O B. graphs O C. formulas OD. percentages O E. tractions
Answer:
The answer is C. Formulas.
Explanation:
Formulas: It is just a mathematical rule that is expressed in numerals or some other symbols and is used to solve a numerical problem.
The following transactions occurred during June: June 1 Purchased two new maintenance carts (noncurrent assets) on account at $750 each. Payment is due in 30 days. June 8 Accepted $500 of advance payments from customers for services to be provided next month. June 15 Received the June utility bill for $300. Payment is due and made in 30 days. June 20 Billed customers for $1,500 services provided. Payment is due in 30 days. June 30 Received $500 from customers who were billed on June 20. What journal entry is required to record the purchase of the carts on June 1
Answer:
Journal Entry to record the purchase of the carts on June 1:
June 1:
Debit Maintenance Equipment $1,500
Credit Accounts Payable $1,500
To record the purchase of 2 maintenance carts on account.
Explanation:
a) Data and Analysis:
June 1 Maintenance Equipment $1,500 Accounts Payable $1,500
June 8 Cash $500 Unearned Service Revenue $500
June 15 Utility Expense $300 Utility Payable $300
June 20 Accounts Receivable $1,500 Service Revenue $1,500
June 30 Cash $500 Accounts Receivable $500
who is she what’s her product and company??
Answer:Harpo Productions (or Harpo Studios) is an American multimedia production company founded by Oprah Winfrey and based in West Hollywood, California. It is the sole subsidiary of her media and entertainment company Harpo, Inc.
Explanation:
Break-Even Sales and Sales to Realize Operating Income For the current year ending December 31, McAdams Industries expects fixed costs of $1,860,000, a unit variable cost of $105, and a unit selling price of $125. a. Compute the anticipated break-even sales (units). fill in the blank 1 units b. Compute the sales (units) required to realize operating income of $500,000. fill in the blank 2 units
Answer:
a.
Break even sales in units = 93000 Units
b.
Sales in units required for Target Income = 118000 units
Explanation:
a. Anticipated Break even sales in units
The break even in units is the number of units that a business must sell in order to for its total revenue to be equal to total costs and for it to break even. The break even in units is calculated as follows,
Break even in units = Fixed Costs / Contribution margin per unit
Where,
Contribution margin per unit = Selling price per unit - Variable cost per unit
Break even sales in units = 1860000 / (125 - 105)
Break even sales in units = 93000 Units
b. Operating income
To calculate the number of units required to earn a certain income or profit, we simply use the break even equation and add the income or profit amount required in the fixed cost. Thus the sales in units required to earn an operating income of $500000 is,
Sales in units required for Target Income = (1860000 + 500000) / (125 - 105)
Sales in units required for Target Income = 118000 units
8. What is an example of a situation in which a shortage is caused by a change in
supply?
Answer:
Temporary supply constraints, e.g. supply disruption due to weather or accident at a factory.
Fixed prices – and unexpected surge in demand, e.g. demand for fuel in cold winter.
Government price controls, such as maximum prices.
Monopoly which restricts supply to maximise profits.
A popular, local coffeeshop in one of the suburbs of New York City (NYC) estimates they use 3,000 pounds of coffee annually. They have to determine how many pounds to order each time in order to minimize their total annual cost. a. Determine the optimal size of the order assuming an EOQ model with a holding cost of $10 per pound annually and an ordering cost of $100. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
EOQ = 244.948974 rounded off to 244.95 pounds
Explanation:
The EOQ or economic order quantity is the quantity of goods that must be ordered to reduce and minimize the inventory related costs. The EOQ can be calculated using the formula provided in attachment.
Using the formula in the attachment, we calculate the EOQ to be,
EOQ = √[(2 * 3000 * 100) / 10]
EOQ = 244.948974 rounded off to 244.95 units
a. The optimal size of the order where we assume that the Economic Order Quantity model should be considered as the 244.95 pounds.
Calculation of the optimal size:Since
It estimates they use 3,000 pounds of coffee annually.
The holding cost is $10 per pound
And the ordering cost of $100
So,
EOQ
= √[(2 * Annual demand * ordering cost) / carrying cost]
= √[(2 * 3000 * 100) / 10]
EOQ = 244.948974
= 244.95 units
Hence a. the optimal size of the order assuming an EOQ model should be 244.95 pounds.
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\AllCity, Inc., is financed 40% with debt, 8% with preferred stock, and 52% with common stock. Its cost of debt is 5.7%, its preferred stock pays an annual dividend of $2.49 and is priced at $30. It has an equity beta of 1.15. Assume the risk-free rate is 1.7%, the market risk premium is 7.3% andAllCity's tax rate is 35%. What is its after-tax WACC? [Note: Assume that the firm will always be able to utilize its full interest tax shield.]
Answer:
WACC = 6.38%
Explanation:
Cost of equity = 1.7% + (1.15 x 5.6%) = 8.14%
Weight of equity = 52%
After tax cost of debt = 5.7% x (1 - 35%) = 3.705%
Weight of debt = 40%
Cost of preferred stock = $2.49 / $30 = 8.3%
Weight of preferred stock = 8%
WACC = (8.14% x 0.52) + (3.705% x 0.4) + (8.3% x 0.08) = 6.3788% ≈ 6.38%
Monopsonistic exploitation is A. the difference between the number of workers employed by a competitive firm and those employed by a monopsonist. B. the difference between the marginal revenue product of labor and the wage paid by the monopsonist. C. equal to the marginal factor cost of the monopsonist. D. the difference between the monopsony wage and the competitive wage.
Answer:
B. the difference between the marginal revenue product of labor and the wage paid by the monopsonist.
Explanation:
An employee can be defined as an individual who is employed by an employer of labor to perform specific tasks, duties or functions in an organization.
Basically, an employee is saddled with the responsibility of providing specific services to the organization or company where he is currently employed while being paid a certain amount of money hourly, daily, weekly, or monthly depending on the contractual agreement between the two parties (employer and employee).
Hence, while an employer may be the owner of a business firm or company, an employee is a subordinate employed to provide unwavering services to the employer while also, being professional and diligent at all times.
Monopsony involves a situation in which an employer has numerous employees who are seeking to gain employment. Thus, this phenomenon avails employers the ability or opportunity to take undue advantage of the employees through exploitations by setting lower wages while employing fewer employees or workers.
Hence, monopsonistic exploitation is the difference between the marginal revenue product of labor and the wage paid by the monopsonist.
Problem 10-39 (LO. 2, 3, 4, 5, 6, 7) Linda, who files as a single taxpayer, had AGI of $280,000 for 2020. She incurred the following expenses and losses during the year: Medical expenses (before the 7.5%-of-AGI limitation) $33,000 State and local income taxes 4,800 State sales tax 1,300 Real estate taxes 6,000 Home mortgage interest 5,000 Automobile loan interest 750 Credit card interest 1,000 Charitable contributions 7,000 Casualty loss (before 10% limitation but after $100 floor; not in a Federally declared disaster area) 34,000 Unreimbursed employee business expenses 7,600 Calculate Linda's allowable itemized deductions for the year. $fill in the blank 1 .
Answer: $34,000
Explanation:
As of the Tax Cuts and Jobs Act of 2017, Unreimbursed employee business expenses and Casualty loss can no longer be deducted.
Linda's itemized deductions are:
= Medical expenses + State and local taxes + Home mortgage interest + Charitable contributions.
Medical expenses after 7.5% of AGI limitation:
= 33,000 - (7.5% * 280,000)
= $12,000
State and local taxes have a maximum deduction of $10,000.
Linda's allowable itemized deductions for the year:
= 12,000 + 10,000 + 5,000 + 7,000
= $34,000
Engler Company purchases a new delivery truck for $55,000. In addition, the sales taxes are $4,000. Engler also paints on the logo of the company on the side of the truck for $1,600. The truck license is an additional $160. The truck also undergoes a one-time safety testing for $290. Finally, the truck also requires a tune up and oil change for $500. What does Engler record as the cost of the new truck
Answer:
$61,390
Explanation:
Calculation to determine What does Engler record as the cost of the new truck
Using this formula
Cost of new truck=Purchase price+Sales tax, painting +Logo on the side of the truck +Safety testing +Tune up and oil change
Let plug in the formula
Cost of new truck=$55,000 + $4,000 + $1,600 + $290 +$500
Cost of new truck= $61,390
Therefore what Engler will record as the cost of the new truck is $61,390
QUESTION ONE (1)
Unibic India: From Fastest Growing Niche Cookie Brand to a Challenger?
In 2007, Lighthouse Funds acquired a 25% stake in Unibic from Unibic Australia for Rs. 200 million. In 2010, Unibic Australia started making losses and wanted to withdraw from the Indian market. At that time, Unibic operated solely in the premium, high-margin cookies segment in India, with a share of around 8%. It had a market presence primarily in south India and was exporting to the Middle East and Hong Kong. It had strategic alliances to make cookies for various private players. However, it was not yet making profits and was cash- strapped...
Over the next few years, Unibic grew rapidly. Its growth was primarily fueled by the changes sweeping through the Indian biscuit industry, wherein glucose biscuits that had dominated the market, gradually lost out to cream biscuits and cookies. The reasons for the shift included rising disposable incomes leading to an increase in consumption of premium biscuits; a larger number of manufacturing facilities of premium biscuits; growing health awareness; innovation bringing in attractive new products; rising affordability of cookies; and increase in eye-catching packaging...
Over the years, Unibic regularly introduced fresh and unique flavors, ultimately producing over 30 variants of cookies. Its products could be broadly categorized into chocolate, butter, milk, savory, and health. The company considered its target market to be between the ages of 14 and 40. It continued its efforts at innovation and produced new products which would appeal to its target market...
In 2015, Unibic had used celebrity endorsement by signing on south Indian actor Shruti Hassan, for over a year. It stated that it wanted someone who was relevant and would give the brand a boost to get to the numbers it wanted in the South...
Unibic didn’t advertise much in print media; TV remained the company’s core focus and got the largest chunk of its advertising spend, followed by digital and OOH. Instead of following the traditional strategy of having a similar marketing campaign across markets, Unibic employed a unique strategy in each market, thereby playing to its strengths in each market while keeping in mind the market conditions and consumption patterns...
From 2019 onward, Unibic started feeling the heat of the economic slowdown in India. The Indian economic slowdown of 2019 led to a serious and continuing decline in the country’s real estate, automobile and construction sectors and in overall consumption demand. The second quarter (July- September) of the financial year (April 2019-March 2020) witnessed a drastic fall in the gross domestic product (GDP) growth rate to 4.5%. The main reasons attributed to the fall in the GDP growth rate were – contraction in manufacturing activity, weakened investments, and lower consumption demand.
As of 2020, Unibic had the largest wire cut cookie manufacturing plant in India. The plant had the capability to manufacture 100 tonnes of cookies each day, with five production lines. While it used 98% of its production capability to produce its own brand, the rest was used to manufacture for private label brands – six in India and 10 across the world. It had annual revenu7 es of Rs. 5 billion. It also exported its products to more than 21 countries including across Australia, North America, the UK, and Europe, Asia, the Middle East, and New Zealand. It derived 45% of its earnings from the south of India.
Questions:
a) Explain three factors that had a negative impact on the financial performance of Unibic in its early years.
b) Which environmental force did Unibic use in segmenting its market? What is this force about? (6 marks)
c) What does the following statement suggest to you about Unibic: “It continued its efforts at innovation and produced new products which would appeal to its target market”? (3 marks)
DC: ACD01-F004
d) Which marketing strategy did Unibic use in 2015 and explain any two (2) reasons why firms adopt that strategy? (9 marks)
e) What main media did Unibic use to implement its marketing strategy? State one advantage of this media. (6 marks)
Answer:
don't know how much they were going home from my phone number is a good day of the year and I'm sorry I'm sorry I'm sorry but he did I say anything else and I'm sure it to you and I have a great day of the us to be a great day of the us and we are you ready for the first time ever you want to see you soon I don't know how much you love you all for you to be a great day of the us and we are you ready for the first time ever you ready for the first time ever you ready for the first time ever you ready for some reason to get the best way I can see you soon and I am a very happy birthday is a good day for me and my family and I have to be in my heart and soul mate and we will not let you soon and I am a very happy birthday is your answer me and my heart and soul mate and I have a good time with you and
In a college-level course, Mrs. Smith gives the lectures, sets the due dates, and is the expert on the material. Mr. Doe helps grade papers, offers tutoring sessions for the students, and attends the lectures. Which best describes the two instructors?
Mrs. Smith is a postsecondary teacher, and Mr. Doe is a teaching assistant.
Mr. Doe is a postsecondary teacher, and Mrs.Smith is a teaching assistant.
Mrs. Smith is a high school teacher, and Mr. Doe is a teaching assistant.
Mr. Doe is a high school teacher, and Mrs. Smith is a teaching assistant.
Answer:
Mrs. Smith is a postsecondary teacher, and Mr. Doe is a teaching assistant.
Explanation:
Mrs. Smith gives the lectures, sets the due dates, and is an expert on the material of a "college-level course", therefore, she has to be a postsecondary teacher, as the teacher is responsible for giving the lectures, and has to be an expert on the material.
Mr. Doe helps grade papers, offers tutoring sessions for the students, and attends the lectures. From my experience and the phrase "helps grade papers" rather than just "grades the papers", we can conclude that Mr. Doe is the teaching assistant.
Answer:
A
Explanation:
Barbella purchased a wedding ring for $15 at a yard sale in May. She thought the ring was costume jewelry, but it turned out to be a real diamond ring. She is not in the business of buying and selling anything. She researched the ring on the internet and discovered that it was worth at least $1,000. She sold it on an internet auction site for $1,100 in July. Was the ring a capital asset
Answer:
a. Yes, the ring is a capital asset.
b-1. The amount the gain from its sale by Barbella is $1,085.
b-2. Since the ring was held by Barbella for less than a year, the nature of the gain is therefore a short term capital gain.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Barbella purchased a wedding ring for $15 at a yard sale in May. She thought the ring was costume jewelry, but it turned out to be a real diamond ring. She is not in the business of buying and selling anything. She researched the ring on the Internet and discovered that it was worth at least $1,000. She sold it on an Internet auction site for $1,100 in July.
a. Was the ring a capital asset?
b. What were the amount and nature of the gain or loss from its sale by Barbella?
Explanation of the answers is now given as follows:
a. Was the ring a capital asset?
Yes, the ring is a capital asset.
Despite that Barbella purchased the wedding ring for personal use, the ring still has to be treated as a capital that it is actually is.
b. What were the amount and nature of the gain or loss from its sale by Barbella?
b-1. The amount of the capital gain can be calculated as follows:
Capital gain = Sales proceed - Cost of purchase = $1,100 - $15 = $1,085
Therefore, the amount the gain from its sale by Barbella is $1,085.
b-2. Since the ring was held by Barbella for less than a year, the nature of the gain is therefore a short term capital gain.
The net income reported on the income statement is $97,309. However, adjusting entries have not been made at the end of the period for the
supplies expense of $2,135 and accrued salaries of $1,163. Net income, as corrected, is
a. $96,146
b. $97,309
c. $94,011
d. $95,174
Inventories Raw materials $ 42,000 $ 32,000 Work in process 9,100 18,300 Finished goods 57,000 34,300 Activities and information for May Raw materials purchases (paid with cash) 172,000 Factory payroll (paid with cash) 100,000 Factory overhead Indirect materials 6,000 Indirect labor 23,000 Other overhead costs 103,000 Sales (received in cash) 1,000,000 Predetermined overhead rate based on direct labor cost 55 %
Compute the following amounts for the month of May using T-accounts
1. Cost of direct materials used
2. Cost of direct labor used
3. Cost of goods manufactured
4. Cost of goods sold.
5. Gross profit
6. Overapplied or underapplied overhead
Prepare journal entries for the above transactions for the month of May. View transaction list Journal entry worksheet Record the application of overhead to work in process
Note: Enter debits before credits.
Transaction General Journal Debit Credit
Record entry Clear entry View general journal
Answer:
a. Computation of the following amounts for the month of May using T-accounts:
1. Cost of direct materials used = $176,000
2. Cost of direct labor used = $77,000
3. Cost of goods manufactured = $286,150
4. Cost of goods sold = $308,850
5. Gross profit = $691,150
6. Overapplied or underapplied overhead = $89,650 (underapplied)
b. Journal Entries:
Debit Raw materials $172,000
Credit Cash $172,000
To record the purchase of raw materials for cash.
Debit Factory payroll $100,000
Credit Cash $100,000
To record the payroll paid in cash.
Debit Factory overhead:
Indirect materials $6,000
Indirect labor $23,000
Other overhead costs 103,000
Credit Raw materials $6,000
Credit Factory payroll $23,000
Credit Cash $103,000
To record indirect materials, labor and other costs.
Debit Work in process $42,350
Credit Factory overhead $42,350
To apply overhead based on direct labor cost 55%.
Debit Cash $1,000,000
Credit Sales Revenue $1,000,000
To record the sale of goods for cash.
Explanation:
a) Data and Calculations:
Inventories:
Raw materials $ 42,000 $ 32,000
Work in process 9,100 18,300
Finished goods 57,000 34,300
Activities for May:
Raw materials purchases (paid with cash) 172,000
Factory payroll (paid with cash) 100,000
Factory overhead:
Indirect materials 6,000
Indirect labor 23,000
Other overhead costs 103,000
Sales (received in cash) 1,000,000
Predetermined overhead rate based on direct labor cost 55%
T-accounts:
Raw materials
Beginning balance $ 42,000
Cash 172,000
Manufacturing overhead 6,000
Work in process 176,000
Ending balance $ 32,000
Work in process
Beginning balance 9,100
Raw materials 176,000
Payroll 77,000
Overhead applied 42,350
Finished goods 286,150
Ending balance 18,300
Finished goods
Beginning balance 57,000
Work in process 286,150
Cost of goods sold 308,850
Ending balance 34,300
Manufacturing overhead
Indirect materials 6,000
Indirect labor 23,000
Other overhead costs 103,000
Work in process 42,350
Underapplied overhead 89,650
Sales revenue $1,000,000
Cost of goods sold 308,850
Gross profit $691,150
Analysis of Transactions:
Raw materials $172,000 Cash $172,000
Factory payroll $100,000 Cash $100,000
Factory overhead:
Indirect materials $6,000 Raw materials $6,000
Indirect labor $23,000 Factory payroll $23,000
Other overhead costs 103,000 Cash $103,000
Work in process $42,350 Factory overhead $42,350
Predetermined overhead rate based on direct labor cost 55%
Cash $1,000,000 Sales Revenue $1,000,000
Harry, Hermione, and Ron formed an S corporation called Bumblebore. Harry and Hermione both contributed cash of $30,000 to get things started. Ron was a bit short on cash but had a parcel of land valued at $70,700 (basis of $60,000) that he decided to contribute. The land was encumbered by a $40,700 mortgage. What tax bases will each of the three have in his or her stock of Bumblebore
Answer:
Harry and Hermione $30,000
Ron’s $19,300
Explanation:
Calculation to determine What tax bases will each of the three have in his or her stock of Bumblebore
Based on the information given we were told that both Harry and Hermione contributed cash of the amount of $30,000 to get things started which means that Harry and Hermione TAX BASES will be $30,000
Calculation for Ron’s Tax bases
Using this formula
Ron’s Tax bases=Basis of the property contributed-Mortgage
Let plug in the formula
Ron’s Tax bases=$60,000-$40,700
Ron’s Tax bases=$19,300
Therefore Harry and Hermione tax based will be $30,000 and Ron’s Tax bases will be $19,300
Suppose your company is considering exporting to a new market and needs to determine whether it should sell a basic or luxury version of its product there. Data on all of the following EXCEPT _____ would best help answer that question. Group of answer choices per capita GDP general consumption patterns GDP demographic trends
Answer:
whats qustion
Explanation:
At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 914,000 Credit sales 314,000 Its year-end unadjusted trial balance includes the following items. Accounts receivable $ 139,000 debit Allowance for doubtful accounts 6,400 debit Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 5% of credit sales, (2) 3% of total sales and (3) 8% of year-end accounts receivable.
Answer:
a.
Date Account Title Debit Credit
Dec, 31 Bad debt expense $15,700
Allowance for doubtful expense account $15,700
Working
= 5% * 314,000
= $15,700
b.
Date Account Title Debit Credit
Dec, 31 Bad debt expense $36,840
Allowance for doubtful expense account $36,840
Working
= 3% * (Cash sales + Credit sales)
= 3% * (914,000 + 314,000)
= $36,840
c.
Date Account Title Debit Credit
Dec, 31 Bad debt expense $17,520
Allowance for doubtful expense account $17,520
Working
= (8% * Year end accounts receivable) + Debit balance for Allowance for doubtful account
= (8% * 139,000) + 6,400
= $17,520
Lara uses the standard mileage method for determining auto expenses. During 2020, she used her car as follows: 21,800 miles for business, 4,360 miles for personal use, 6,540 miles for a move to a new job, 2,180 miles for charitable purposes, and 1,090 miles for medical visits. Presuming that all the mileage expenses are allowable (i.e., not subject to percentage limitations), what is Lara's deduction for:
Answer:
A. Business $11,881
B. Charitable $305.2
C. Medical $196.2
Explanation:
Calculation to determine Lara's deduction for:
a. Deduction for Business= (21,800 miles x .545)
Deduction for Business= $11,881
b. Deduction for Charitable= (2,180 miles x .14)
Deduction for Charitable= $305.2
c. Deduction for Medical=(1,090 miles x .18)
Deduction for Medical=$196.2
Therefore Lara's deduction are:
A. Business $11,881
B. Charitable $305.2
C. Medical $196.2
Which of the following distinguishes why farmers of commodities are referred to as price takers?
The producer will not take a profit from the commodity if the price changes yearly.
The producer has no control over the market price and must take the price offered
The producer must seek out a fair price from buyers and take the price they all agree on
The producer is not legally allowed to take a price over the value created by the government
Answer:The producer has no control over the market price and must take the price offered
Explanation: it says it in the article
On January 2, 2018, Ava Co. issued at face value $119,600 of 7% bonds convertible in total into 13,686 shares of Ava's common stock. No bonds were converted during 2018. Throughout 2018, Ava had 10,000 shares of common stock outstanding. Ava's 2018 net income was $110,936. The income tax rate is 30%. No potential common shares other than the convertible bonds were outstanding during 2018. The numerator in the diluted earnings per share calculation for 2018 would be:
Answer:
$116,796.4
Explanation:
The computation of the numerator in diluted earning per share is given below
As we know that
Diluted earning per share = Net income + ( interest expense × (1 - tax rate)) ÷ diluted potential common stock
Now the numerator is
= Net income + ( interest expense × (1 - tax rate))
= $110,936 + ($119,600 ×0.07 × (1 - 0.30))
= $110,936 + $5,860.4
= $116,796.4
On December 31, 2018, a company had assets of $20 billion and stockholders' equity of $16 billion. That same company had assets of $40 billion and stockholders' equity of $13 billion as of December 31, 2019. During 2019, the company reported total sales revenue of $13 billion and total expenses of $11 billion. What is the company's debt-to-assets ratio on December 31, 2019
Answer:
62.50 %
Explanation:
Debt-to-assets ratio = Interest bearing debt / total assets x 100
where,
Accounting Equation :
Assets = Equity + Liability
also stated,
Liability = Assets - Equity
therefore
Interest bearing debt = Assets - Equity
Equity = Stocks + Retained Earnings
for 2019
Equity = $13 billion + ($13 billion - $11 billion) = $15 billion
Interest bearing debt = $40 billion - $15 billion = $25 billion
therefore,
Debt-to-assets ratio = $25 billion / $40 billion x 100 = 62.50 %
Conclusion
The company's debt-to-assets ratio on December 31, 2019 is 62.50 %
discuss the nature of COIDA
Answer:
please give me brainlist and follow
Explanation:
The main objective of the COIDA is to facilitate a process which provides for payment of medical treatment and compensation for disablement caused by occupational injuries and diseases sustained by employees in the course of their employment, or for death resulting from such injuries or diseases;
A consulting engineering firm wants to make a preliminary cost estimate for the design/construct of an e-commerce warehouse facility in the south of the country. The firm completed a similar project in 2012 that had a construction cost of $70 million, and it wants to use the ENR Construction Cost Index (CCI) to update the cost. If the index value in 2012 was 8802 and today it is 12,250, determine the estimated cost of the facility today. (Note: CCI values may be different on its website.)
Answer: $97,421,041
Explanation:
Cost for the facility in 2012 = $70 million
Construction Cost Index in 2012 = 8802
Construction Cost Index today = 12250
The estimated cost of the facility today will be:
= Cost of facility in 2012 × (CCI today / CCI in 2012)
= 70,000,000 × 12250/8802
= $97,421,041
The estimated cost of the facility today is $97,421,041.
