Answer:
firms anticipate rival firms' decisions when they make their own decisions.
Explanation:
Game theory assumes that firms anticipate rival firms' decisions when they make their own decisions. It is very important and necessary for understanding firms operating in an oligopolistic market.
An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.
Hence, it is a market structure that is distinguished by several characteristics, one of which is either similar or identical products and dominance by few firms.
This ultimately implies that, under the game theory, when firms makes a decision about their business, it is expected that they consider how the other firms would react to such decisions.
55. The first step in the market segmentation process is to
a. Define the market
b. Position offer in the market.
c. Segment the market.
d. Target the market.
Answer:
Hello There!!
Explanation:
I think the answer is possibly c. Segment the market.
hope this helps,have a great day!!
~Pinky~
[tex]\huge{\textbf{\textsf{{\color{navy}{An}}{\purple{sw}}{\pink{er}} {\color{pink}{:}}}}}[/tex]
C. Segment the market.
ThanksHope it helps.Pipelines rank third after railroads and motor carriers in ton-miles transported, but most people do not recognize pipelines as a major mode of transportation. Nevertheless, pipelines are the preferred method used for transporting crude oil, diesel fuel, kerosene, and gasoline in the United States. What are some drawbacks to transporting via pipeline
Answer: See explanation
Explanation:
Some of the drawbacks to transportation via pipeline include:
1. Pipeline transportation isn't flexible, it's typically a one way system and can be used for certain fixed points only. It's flexibility is poor.
2. Once it has been laid, the capacity of the pipeline cannit be increased further.
3. Once there is leakage, repairing it is a challenge as it may not be easily detected.
4. It requires huge investment to set up and maintaining it is challenging.
5. It can lead to illegal pilferage which may being about accidents and death.
Currently, Forever Flowers Inc. has a capital structure consisting of 20% debt and 80% equity. Forever's debt currently has an 7% yield to maturity. The risk-free rate (rRF) is 3%, and the market risk premium (rM - rRF) is 8%. Using the CAPM, Forever estimates that its cost of equity is currently 13.5%. The company has a 40% tax rate. What is Forever's current WACC
Answer:
WACC = 11.6%
Explanation:
The weighted average cost of capital (WACC) is the average cost of all the various sources of long-term finance used by a business weighted according to the proportion which each source of finance bears to the the entire pool of fund.
To calculate the weighted average cost of capital, follow the steps below:
Step 1: Calculate cost of individual source of finance
Cost of Equity= 13.5%
After-tax cost of debt:
= (1- T) × before-tax cost of debt
= 7%× (1-0.4)= 4.2%
Step 2 : calculate the proportion or weight of the individual source of finance . (This already given)
Equity = 80%
Debt= 20%
Step 3:Work out weighted average cost of capital (WACC)
WACC = ( 13.5%× 80%) + ( 4.2%× 20%) = 11.64%
WACC = 11.6%
Differential Analysis for Further Processing
The management of Dominican Sugar Company is considering whether to process further raw sugar into re-fined sugar. Re-fined sugar can be sold for $2.20 per pound, and raw sugar can be sold without further processing for $1.40 per pound. Raw sugar is produced in batches of 42,000 pounds by processing 100,000 pounds of sugar cane, which costs $0.35 per pound of cane. Re-fined sugar will require additional processing costs of $0.50 per pound of raw sugar, and 1.25 pounds of raw sugar will produce 1 pound of re-fined sugar.
1. Prepare a differential analysis as of March 24 to determine whether to sell raw sugar (Alternative 1) or process further into refined sugar (Alternative 2)
2. Briefly report your recommendations.
Answer:
Dominican Sugar Company
1. Differential Analysis as of March 24:
Raw Sugar Refined Sugar
Alternative 1 Alternative 2 Difference
Sales volume 42,000 33,600
Selling price per pound $1.40 $2.20
Sales revenue $58,800 $73,920 $15,120
Materials requirement 100,000 42,000
Output from process 42,000 33,600
Unit cost $0.35
Cost of materials $35,000 $35,000
Cost of further refining $21,000
Total costs $35,000 $56,000 ($21,000)
Net income $23,800 $17,920 ($5,880)
2. Based on cost implications, Dominican Sugar should not refine the raw sugar further. Further refining will cause the company $5,880 in lost income. This means that it costs more to refine the raw sugar.
Explanation:
a) Data and Calculations:
Raw Sugar Refined Sugar
Alternative 1 Alternative 2
Sales volume 42,000 33,600 (42,000/1.25)
Selling price per pound $1.40 $2.20
Sales revenue $58,800 $73,920
Materials requirement 100,000 42,000
Output from process 42,000 33,600 (42,000/1.25)
Unit cost $0.35
Cost of materials $35,000 $35,000
Cost of further refining $21,000 (42,000 * $0.50)
Total costs $35,000 $56,000
Net income $23,800 $17,920
The federal funds rate is the interest rate that banks charge each other.
T or f
Answer: F
Explanation: The fed funds rate is the interest rate that depository institutions—banks, savings and loans, and credit unions—charge each other for overnight loans. The discount rate is the interest rate that Federal Reserve Banks charge when they make collateralized loans—usually overnight—to depository institutions.
Jeff Heun, president of Splish Always, agrees to construct a concrete cart path at Dakota Golf Club. Splish Always enters into a contract with Dakota to construct the path for $200,000. In addition, as part of the contract, a performance bonus of $34,000 will be paid based on the timing of completion. The performance bonus will be paid fully if completed by the agreed-upon date. The performance bonus decreases by $8,500 per week for every week beyond the agreed-upon completion date. Jeff has been involved in a number of contracts that had performance bonuses as part of the agreement in the past. As a result, he is fairly confident that he will receive a good portion of the performance bonus. Jeff estimates, given the constraints of his schedule related to other jobs, that there is 55% probability that he will complete the project on time, a 30% probability that he will be 1 week late, and a 15% probability that he will be 2 weeks late.
Required:
Determine the transaction price that Concrete Always should compute for this agreement.
Answer:
$234,000
Explanation:
Calculation to determine the transaction price that Concrete Always should compute for this agreement
Using this formula
Transaction price=Contract Price* Estimated performance bonus
Let plug in the formula
Transaction price=$200,000+$34,000
Transaction price=$234,000
Therefore the transaction price that Concrete Always should compute for this agreement are $234,000
At the beginning of the month, the Forming Department of Martin Manufacturing had 29,000 units in inventory, 40% complete as to materials, and 15% complete as to conversion. During the month the department started 98,000 units and transferred 100,000 units to the next manufacturing department. At the end of the month, the department had 27,000 units in inventory, 90% complete as to materials and 60% complete as to conversion. How many units did the Forming Department start and complete in the current month
Answer:
71,000 units.
Explanation:
Units started and completed = Units Completed - Units in Opening Inventory
therefore
Units started and completed = 100,000 units - 29,000 units = 71,000 units
thus,
Units started and completed in the current month for the Forming Department is 71,000 units.
1.1.2. Name the type of energy classified as solids.
(1)
Answer: Crystalline solids
Ionic solids
Molecular solids
Network covalent solids
Metallic solids
Amorphous solids
Explanation:
Under the consumer Credit Protection Act, if you report your credit card
lost or stolen within 30 days, your liability is limited to:
A. $25
B. $50
C. $100
D. $200
LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.4 hours of direct labor at the rate of $20.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June. The company plans to sell 43,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 550 and 110 units, respectively. Budgeted direct labor costs for June would be:
Answer:
Total direct labor hours= 102,144
Total direct labor costs= $2,042,880
Explanation:
Giving the following formula:
Standard quantity= 2.4 hours
Standard rate= $20 per hour
First, we need to calculate the production required:
Production= sales + desired ending inventory - beginning inventory
Production= 43,000 + 110 - 550
Production= 42,560 units
Now, the direct labor budget:
Total direct labor hours= 42,560*2.4= 102,144
Total direct labor costs= 102,144*20= $2,042,880
Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $58,000 and $2,700, respectively. During Year 2, Allegheny wrote off $4,800 of Uncollectible Accounts. Using the percent of receivables method, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $4,400. What amount will Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement
Answer:
The amount of the allowance for the year to be reported in income statement is $6,500.
Explanation:
The amount of the allowance for the year to be reported in income statement can be calculated as follows:
Allowance for the year to be reported in income statement = Ending ending Allowance for Doubtful Accounts balance + Uncollectible written off during the year - Opening Allowance for Doubtful Accounts balance = $4,400 + $4,800 - $2,700 = $6,500
Therefore, the amount of the allowance for the year to be reported in income statement is $6,500.
Which of the following currencies are not involved in affecting the revenue your company receives on shipment of action-cameras and UAV drones to buyers in the four geographic regions where it competes?
Answer: Indian rupees and Russian rubles
Explanation:
The options are:
a. Singapore dollars and euros.
b. Indian rupees and Russian rubies
c. US dollars and Taiwan dollars
d. The Brazilian real and Taiwan dollars
e. US dollars and euros
Explanation:
It should noted that the currencies that affects the revenues received by the company on the shipments of camera to the retailers in the four geographic regions where it markets cameras include the U.S. dollars, euros, Singapore dollars, Taiwan dollars, and Brazilian real.
Therefore, based on the options given, we can see that option B "Indian rupees and Russian rubles" is the correct answer as the currencies arr not involved in affecting the revenue.
What is Gnp gap? in economics
Answer:
Gross National Product (GNP) is the total value of all finished goods and services produced by a country's citizens in a given financial year, irrespective of their location.
Hope that helps! :)
Explanation:
The minimum amount of total quality costs is achieved when the: A. marginal voluntary expenditures are less than the marginal savings on failure costs. B. marginal voluntary expenditures equal the marginal savings on failure costs. C. marginal voluntary expenditures exceed marginal failure costs. D. none of the other answers are correct.
Answer:
B. marginal voluntary expenditures equal the marginal savings on failure costs.
Explanation:
In Accounting, Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
The various type of costs involved in the manufacturing or business processes are;
1. Product cost is the expenses incurred when a product is sold.
2. Period cost refers to the period in which costs are incurred.
3. Fixed cost refers to costs that remains constant over variations in production activity, irrespective of amount of goods.
3. Variable cost refers to cost which are the same per unit of production but vary directly with level of output.
4. Direct costs refer to the costs that are peculiar to a particular department or area while indirect cost can't be traced to any.
5. Manufacturing overhead are all indirect cost required in producing a good that isn't associated with direct materials or direct labor.
A total quality cost include the overall cost of producing products with poor qualities. The minimum amount of total quality costs is achieved when the marginal voluntary expenditures equal the marginal savings on failure costs.
Below are descriptions of internal control problems. Identify the one best internal control principle that is related to the problem described.
1. The same person opens incoming mail and posts the accounts receivable subsidiary ledger. select principle of internal control.
2. Three people handle cash sales from the same cash register drawer. select principle of internal control.
3. A clothing store is experiencing a high level of inventory shortages because people try on clothing and walk out of the store without paying for the merchandise.
4. The person who is authorized to sign checks approves purchase orders for payment.
5. Some cash payments are not recorded because checks are not pre-numbered.
6. Cash shortages are not discovered because there are no daily cash counts by supervisors.
7. The treasurer of the company has not taken a vacation for over 20 years.
A. Establishment of responsibility
B. Segregation of duties
C. Physical control devices
D. Documentation procedures
E. Independent internal verification
F. Human resource controls
Answer and Explanation:
The matching is as follows:
1. B Segregation of duties as the duties are separated
2. A Establishment of responsibility as there is a responsibility
3. C. Physical control devices as the given situation represent the physical control devices
4. B. Segregation of duties as the duties are separated
5. D. Documentation procedures as the given situation represent there is some produres carried out for documentation
6. E. Independent internal verification as the given situation represent that there is an internal verification that to be done independently
7. F. Human resource controls as the given situation represent that there is a control of the human resource
Caughlin Company needs to raise $75 million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 75 percent common stock, 5 percent preferred stock, and 20 percent debt. Flotation costs for issuing new common stock are 11 percent, for new preferred stock, 8 percent, and for new debt, 3 percent.
What is the true initial cost figure the company should use when evaluating its project? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567. Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.)
Initial cost $
Answer: $82,644,628
Explanation:
The true initial cost figure that the company should use when evaluating its project will be calculated as:
First we calculate the weighted average flotation which will be:
= (0.75 × 0.11) + (0.05 × 0.08) + (0.20 × 0.03)
= 9.25%
Therefore, the amount raised will be:
= 75 million / (1 - 9.25%)
= 75 million / (1 - 0.0925)
= $82,644,628
Therefore, the true initial cost is $82,644,628.
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $940,000, and it would cost another $25,000 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $624,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in net working capital (inventory) of $19,000. The sprayer would not change revenues, but it is expected to save the firm $301,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 25%.
Required:
a. What is the Year 0 net cash flow?
b. What are the net operating cash flows in Years 1, 2, 3?
c. What is the additional Year 3- cash flow (i.e. after tax salvage and the return of working capital)?
d. If the project's cost of capital is 12%, should the machine be purchased
Answer:
a. Year 0 Net Cash Flows = $984,000
b. We have:
Year 1 net operating cash flows = $306,159
Year 2 net operating cash flows = $332,986
Year 3 net operating cash flows = $261,479
c. Additional Year 3- cash flow = $504,877
d. The machine should be purchased.
Explanation:
We start by first calculating the following:
Initial Investment = Base Price + Modification Cost = $940,000 + $25,000 = $965,000
Useful Life = 3 years
Depreciation in Year 1 = 0.3333 * $965,000 = $321,634.50
Depreciation in Year 2 = 0.4445 * $965,000 = $428,942.50
Depreciation in Year 3 = 0.1481 * $965,000 = $142,916.50
Book Value at the end of Year 3 = $965,000 - $321,634.50 - $428,942.50 - $142,916.50 = $71,506.50
After-tax Salvage Value = Salvage Value - (Salvage Value - Book Value) * Marginal tax rate = $624,000 – ($624,000 - $71,506.50) * 25% = $485,877
Initial Investment in NWC = $19,000
We can now proceed as follows:
a. What is the Year 0 net cash flow?
Year 0 Net Cash Flows = Initial Investment + Initial Investment in NWC = $965,000 + $19,000 = $984,000
b. What are the net operating cash flows in Years 1, 2, 3?
Year 1 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 1) = ($301,000 * (1 – 0.25)) + (0.25 * $321,634.50) = $306,159
Year 2 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 2) = ($301,000 * (1 – 0.25)) + (0.25 * $428,942.50) = $332,986
Year 3 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 3) = ($301,000 * (1 – 0.25)) + (0.25 * $142,916.50) = $261,479
c. What is the additional Year 3- cash flow (i.e. after tax salvage and the return of working capital)?
Additional Year 3- cash flow = NWC recovered + After-tax Salvage Value = $19,000 + $485,877 = $504,877
d. If the project's cost of capital is 12%, should the machine be purchased?
This can be determined from the net present value (NPV) calculated as follows:
NPV = -$984,000 + ($306,159/1.12^1) + ($332,986/1.12^2) + ($261,479/1.12^3) + ($504,877/1.12^3) = $100,287.71
Since the NPV of the machine of $100,287.71 is positive, the machine should be purchased.
Crane Company deducts insurance expense of $174000 for tax purposes in 2021, but the expense is not yet recognized for accounting purposes. In 2022, 2023, and 2024, no insurance expense will be deducted for tax purposes, but $58000 of insurance expense will be reported for accounting purposes in each of these years. Crane Company has a tax rate of 20% and income taxes payable of $156000 at the end of 2021. There were no deferred taxes at the beginning of 2021. What is the amount of the deferred tax liability at the end of 2021
Answer: $34800
Explanation:
Based on the information given in the question, the amount of the deferred tax liability at the end of 2021 will be:
= Tax rate × Insurance expense
= 20% × $174000
= 0.2 × $174000
= $34800
Therefore, the amount of the deferred tax liability at the end of 2021 is $34800.
Excel does not allow you to copy and paste formulas with AutoFill. true or false
Answer:
True
Explanation:
In excel, after entering a formula in a cell if we drag the cursor through the horizontal cells (row) or the vertical cells (columns), the formula is copied itself with the help of fill handle
Hence, the given statement is true
In Step 4, the EUP from Step 2 and the cost per EUP from Step 3 are used to assign costs to the:___.
a. units in beginning inventory.
b. units completed and transferred to finished goods.
c. units in ending work in process inventory.
d. units sold.
Indirect labor includes:____.
a. labor of employees working directly on the product.
b. labor of the maintenance employees.
c. labor of the clerical staff.
Answer:
b. units completed and transferred to finished goods.
c. units in ending work in process inventory.
b. labor of the maintenance employees.
c. labor of the clerical staff.
Explanation:
EUP stands for the "equivalent units of production". It is the largest number of the units a factory can produce during the period for a given cost if all the efforts were used for one type of unit only.
The assigned cost relates to the unites that is completed as well as transferred to the finished goods. It also refers to the units in the ending work in the process inventory.
Indirect labor cost is the cost that is associated with the cost of the labors which is not directly associated to the production of goods. It includes the cost of the labor for the clerical staff and also for the maintenance employees.
Two mutually exclusive alternatives are being considered. Both have lives of 10 years. Alternative A has a first cost of $10,000 and annual7-65 benefits of $4500. Alternative B costs $25,000 and has annual benefits of $8800. If the minimum attractive rate of return is 6%, which alternative should be selected
Answer:
Alternative B should be selected since its NPV is higher
Explanation:
year cash flow alternative A cash flow alternative B
0 -10000 -25000
1 4500 8800
2 4500 8800
3 4500 8800
4 4500 8800
5 4500 8800
6 4500 8800
7 4500 8800
8 4500 8800
9 4500 8800
10 4500 8800
discount rate 6% 6%
NPV 23120 39769
what is the difference between general and applied ethics
Answer:
The answer is below
Explanation:
Both General ethics and Applied Ethics are part of philosophical knowledge in understanding humans and their society.
Hence, the difference between general and applied ethics is:
General ethics is a philosophical term that is used to describe the theory of values in human activities. It deals with answering the controversial questions of human morality by establishing the idea of good and evil, right and wrong.
On the other hand, Applied Ethics is a term used in philosophy to describe a branch of ethics that is established to answer the issue of moral dilemmas, strategies, and operations in individuals' life, organizations, technology, and state.
Materials used by the Instrument Division of T_Kong Industries are currently purchased from outside suppliers at a cost of $301 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $250 per unit.
Question Completion:
a. If a transfer price of $280 per unit is established and 50,000 units of materials transferred, with no reduction in the Components Division’s current sales, how much would T_Kong Industries’ total income from operations increase?
$
b. How much would the Instrument Division's income from operations increase?
$
c. How much would the Components Division's income from operations increase?
Answer:
T_Kong Industries
1. T_Kong Industries’ total income from operations would increase by;
= $2,550,000.
2. The Instrument Division's income from operations would increase by:
= $1,050,000.
3. The Components Division's income from operations would increase by:
= $1,500,000.
Explanation:
a) Data and Calculations:
Outside supply price = $301 per unit
Variable cost per unit = $250
Transfer price = $280
Units transferred = 50,000
Increase in total income for T_Kong Industries = $2,550,000 ($301 - $250)50,000
Instrument Division's income would increase by $1,050,000 ($301 - $280)50,000
Increase in total income for the Components Division = $1,500,000 ($280 - $250)50,000
how do occupancy rate and potential gross rate relate
Explanation:
Occupancy rate is the ratio of rented or used space to the total amount of available space.
The potential gross rate is the total rental income a property can produce if all units were fully leased and rented at market rents with a zero vacancy rate.
They relate through that they both allow for renting?
Divisibility" refers to the fact that money is divided into denominations for ease in completing transactions
O a. True
O b. False
If a Florida strawberry wholesaler operates in a perfectly competitive market, that wholesaler will have a _____ share of the market, and consumers will consider her strawberries and her competitors' strawberries to be _____. Therefore, _____ advertising will take place in this market. small; standardized; little or no
Answer:
b) small; standardized (commodity); little, if any
Explanation:
THESE ARE THE OPTIONS FOR THE QUESTION
a] large; standardized (commodity); no
b] small; standardized (commodity); little, if any
c] small; differentiated; no
d] large; differentiated; extensive
Pure or perfect competition can be regarded as theoretical market structure whereby some of criterias are met. Such criteria are;
✓ identical product( homogeneous) are been sold by
all firms
✓All the firms involved are price takers(
market price of their product cannot be influenced by them)
✓ There is no influence of Market on prices. Therefore, in a scenerio whereby a Florida strawberry wholesaler operates in a perfectly competitive market, that wholesaler will have a small share of the market, and consumers will consider her strawberries and her competitors' strawberries to be standardized (commodity) Therefore, no advertising will take place in this market.
Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company.
Jan. 1 Inventory 100 units at $5 each
Jan. 4 Sale 80 units at $8 each
Jan. 11 Purchase 150 units at $6 each
Jan. 13 Sale 120 units at $8.75 each
Jan. 20 Purchase 160 units at $7 each
Jan. 27 Sale 100 units at $9 each
Fong Sai-Yuk uses the FIFO cost flow assumption. All purchases and sales are on account.
Required:
a. Assume Fong Sai-Yuk uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 110 units.
b. Compute gross profit using the periodic system.
c. Assume Fong Sai-Yuk uses a perpetual system. Prepare all necessary journal entries.
d. Compute gross profit using the perpetual system.
Answer:
Fong Sai-Yuk Company
a. Journal Entries:
Debit Purchases $2,020
Credit Accounts payable $2,020
To record purchases of goods on account for the month.
Debit Accounts receivable $2,590
Credit Sales revenue $2,590
To record the sale of goods on account for the month.
Debit Sales revenue $2,590
Credit Income Summary $2,590
To close the account to the income summary.
Debit Income Summary $2,790
Credit Purchases $2,020
Credit Ending Inventory $770
To close the accounts to the income summary.
b. Computation of the Gross Profit using the periodic system:
Sales revenue $2,590
Cost of goods:
Opening inventory $500
Purchases 2,020
Less Ending inventory 770 1,750
Gross profit $840
c. Using the Perpetual system:
Journal Entries:
Jan. 4 Debit Accounts receivable $640
Credit Sales revenue $640
To record the sale of goods on account.
Jan. 4 Debit Cost of goods sold $400
Credit Inventory $400
To record the cost of goods sold.
Jan. 11 Debit Inventory $900
Credit Accounts payable $900
To record the purchase of goods on account.
Jan. 13 Debit Accounts receivable $1,050
Credit Sales revenue $1,050
To record the sale of goods on account.
Jan. 13 Debit Cost of goods sold $700
Credit Inventory $700
To record the cost of goods sold.
Jan. 20 Debit Inventory $1,120
Credit Accounts payable $1,10
To record the purchase of goods on account.
Jan. 27 Debit Accounts receivable $900
Credit Sales revenue $900
To record the sale of goods on account.
Jan. 27 Debit Cost of goods sold $650
Credit Inventory $650
To record the cost of goods sold.
Jan. 31:
Debit Income Summary $1,750
Credit Cost of goods sold $1,750
To close the account to the income summary.
Debit Sales Revenue $2,590
Credit Income Summary $2,590
To close the account to the income summary.
d. Computation of the gross profit:
Sales revenue $2,590
Cost of goods 1,750
Gross profit $840
Explanation:
a) Data and Calculations:
Date Description Units Unit Cost Unit Price Total Cost Total Revenue
Jan. 1 Inventory 100 $5 $500
Jan. 4 Sale 80 $8 $640
Jan. 11 Purchase 150 $6 900
Jan. 13 Sale 120 $8.75 1,050
Jan. 20 Purchase 160 $7 1,120
Jan. 27 Sale 100 $9 900
Total goods available 410 $2,520
Total goods sold 300 $2,590
Ending inventory 110
Using FIFO under periodic system:
Ending inventory = 110 * $7 = $770
Cost of goods sold = Cost of goods available minus cost of ending inventory
= $2,520 - $770
= $1,750
Using FIFO under perpetual system:
Cost of goods sold:
Jan. 4 Sale $400 (80 * $5)
Jan. 13 Sale 700 (20 * $5 + 100 * $6)
Jan. 27 Sale 650 (50 * $6 + 50 * $7)
Total cost of goods sold $1,750
Ending inventory = $2,520 - $1,750 = $770
On July 1, 2020, Riverbed Inc. made two sales.
1. It sold land having a fair value of $912,330 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,435,565. The land is carried on Riverbed's books at a cost of $597,200.
2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $401,660 (interest payable annually).
Riverbed Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest.
Record the two journal entries that should be recorded by Agincourt Inc. for the sales transactions above that took place on July 1, 2014.
Answer:
Riverbed Inc.
Journal Entries:
1. Debit 0% 4-year Promissory Notes Receivable $1,435,565
Credit Land $597,200
Credit Gain on Sale of Land $315,130
Credit Interest Revenue $523,235
To record the sale of land in exchange for a note with face value of $1,435,565
2. Debit 3% 8-year Promissory Note Receivable $401,660
Credit Service Revenue $162,224
Credit Interest Revenue $239,436
To record the rendering of service in exchange for a note with face value of $401,660.
Explanation:
a) Data and Analysis:
July 1, 2020:
1. 0% 4-year Promissory Notes Receivable $1,435,565 Land $597,200 Gain on Sale of Land $315,130 Interest Revenue $523,235
From an online financial calculator, the PV and Interest:
N (# of periods) 4
I/Y (Interest per year) 12
PMT (Periodic Payment) 0
FV (Future Value) 1435565
Results
PV = $912,330
Total Interest $523,235
Gain on Sale of Land:
Fair value of the land = $912,330
Book value of the land 597,200
Gain on sale of land = $315,130
2. 3% 8-year Promissory Note Receivable $401,660 Service Revenue $162,224 Interest Revenue $239,436
From an online financial calculator, the PV and Interest:
N (# of periods) 8
I/Y (Interest per year) 12
PMT (Periodic Payment) 0
FV (Future Value) 401660
Results
PV = $162,224
Total Interest $239,436
Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments.
The second department (Polishing) had the following physical flow schedule for December:
Units to account for:
Units, beginning work in process 4,000 (40% complete)
Units started ?
Total units to account for ?
Units accounted for:
Units, ending work in process 8,000 ( 50% complete)
Units completed ?
Units accounted for ?
Costs in beginning work in process for the Polishing Department were direct materials, $5,000; conversion costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.
Assume the company uses the FIFO method.
Required:
1-a. Prepare a schedule of equivalent units.
1-b. Compute the unit cost for the month of December.
Answer:
Fordman Company
1-a. A Schedule of Equivalent Units (Weighted-Average Method)
Equivalent units of production:
Units Direct Materials Conversion
Units completed 16,000 16,000 16,000
Ending WIP 8,000 4,000 4,000
Total equivalent units 20,000 20,000
1-b. The unit cost for the month of December is:
= $7.05
Explanation:
a) Data and Calculations:
Units transferred from Grinding Department = 20,000
Cost of units transferred = $40,000
Polishing Department's
Physical Flow Schedule for December:
Units to account for:
Units, beginning work in process 4,000 (40% complete)
Units started 20,000
Total units to account for 24,000
Units accounted for:
Units, ending work in process 8,000 (50% complete)
Units completed 16,000 (100% complete)
Units accounted for 24,000
Cost of production:
Direct Conversion Transferred Total
Materials In
Beginning work in process $5,000 $6,000 $8,000 $19,000
Current period 32,000 50,000 40,000 122,000
Total costs of production $37,000 $56,000 $48,000 $141,000
Equivalent units of production:
Units Direct Materials Conversion
Units completed 16,000 16,000 16,000
Ending WIP 8,000 4,000 4,000
Total equivalent units 20,000 20,000
Cost per equivalent units:
Direct Materials Conversion Total
& Transferred In
Total costs of production $85,000 $56,000 $141,000
Total equivalent units 20,000 20,000
Cost per equivalent units $4.25 $2.80
Cost assigned to: Direct Materials Conversion Total
& Transferred In
Units completed $68,000 $44,800 $112,800
($4.25 * 16,000) ($2,80 * 16,000)
Ending WIP 17,000 11,200 28,200
($4.25 * 4,000) ($2.80 * 4,000)
Total $85,000 $56,000 $141,000
Unit cost for the month of December:
Total cost of completed units = $112,800
Total units completed = 16,000
Unit cost = $7.05 ($112,800/16,000
The standardized shipping container, along with the BLANK to enable it to be integrated into companies’ processes, made it much easier to transport goods around the world, by eliminating the need to repack them every time the mode of transportation changed. This illustrates the key role of BLANK and integrated systems for managing it as factors of production.
Fill in the blanks.
Options:
supply chain management
consumption
inspect
physical capital
natural resources
human capital
transport ship
Answer:
1. supply chain management and 2nd blank is physical capital
Explanation:
The standardized shipping container, along with the supply chain management enables it to be integrated into companies’ processes, making it much easier to transport goods around the world, by eliminating the need to repack them every time the mode of transportation changes. This illustrates the key role of physical capital and integrated systems in managing it as a factor of production.
What is Supply Chain Management?SCM is the integrated planning and execution of processes needed to control the flow of goods, information, and capital investments in activities that broadly include demand planning, product sourcing, production, inventory management and storage, transportation — or logistics — and exchanging overstock or defective goods.
Today's supply chains must be managed using technology, and ERP suppliers provide modules that concentrate on important SCM tasks. There are additional vendors of business software who specialize in SCM.
To learn more about Supply Chain Management follow the link.
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