Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heitger identified three overhead activities and related drivers. Budgeted information or the year is as follows:
Activity Cost Driver Amount of Driver
Materials handling $72,000 Number of moves 3,000
Engineering 165,000 Number of change orders 10,000
Other overhead 280,000 Direct labor hours 50,000
Heitger worked on four jobs in July. Data are as follows:
Job 13-43 Job 13-44 Job 13-45 Job 13-46
Beginning balance $20,300 $19,800 $2,300 $0
Direct materials $6,500 $8,900 $12,700 $9,800
Direct labor cost $18,000 $20,000 $32,000 $2,400
Number of moves 44 52 29 5
Number of change orders 30 40 20 20
Direct labor hours 900 1,000 1,600 120
By July 31, Jobs 13-43 and 13-44 were completed and sold. Jobs 13-45 and 13-46 were still in process.
Required:
1. Calculate the activity rates for each of the three overhead activities.
2. Prepare job-order cost sheets for each job showing all costs through July 31.
3. Calculate the balance in Work in Process on July 31.
4. Calculate the cost of goods sold for July.
5. What if Job 13-46 required no engineering change orders? What is the new cost of Job 13-46? How would the cost of other jobs be affected?
Answers
Answer:
Kindly check attached picture
Explanation:
1. Calculate the activity rates for each of the three overhead activities.
2. Prepare job-order cost sheets for each job showing all costs through July 31.
3. Calculate the balance in Work in Process on July 31.
4. Calculate the cost of goods sold for July.
5. What if Job 13-46 required no engineering change orders? What is the new cost of Job 13-46? How would the cost of other jobs be affected?
Kindly check attached picture for detailed explanation
Related Questions
A company borrowed $500,000 cash from a bank and used it to purchase $500,000 of new manufacturing equipment.Which of the following items would be increased by the bank loan and equipment purchase transactions?
1) Total Liabilities
2) Cash from Financing
3) Cash from Investing
4) Equipment
5) Depreciation
Answers
Answer: Cash from financing
Explanation: Hope this helps
In an industry that is dominated by a few large companies, incentives are
used to attract customers rather than price changes. What type of business
market is this?
O
A. An oligopoly
B. An entrepreneurship
O
C. A subsidiary
O
D. A conglomerate
SUBMIT
Answers
Answer:
An Oligopoly
Explanation:
An Oligopoly is a type of business in which a few number of large organisations have total control over the market. In this type of business, the price of each goods sold in the market depends mostly on the conduct of each companies this factor can prevent new competitors from entry into the market, this is done to protect the amount of profit generated by each firm.
There is a high rate of competition in the market as each companies are bringing up new ways to advertise their products. Therefore, if a particular firm reduces their price another firm will follow suit by futher reducing their products, this is why incentives is used in this type of business to attract customers. This can be done by giving discounts on the purchase of a product or giving out free samples of the product to customers. All these are carried out to increase sales.
On January 1, 2021, purchased $100,000 of Anand Company bonds at face value. The Anand bonds pay 6% coupon rate. On the purchase date, the market interest rate was 6% for bonds of similar risk and maturity. The bonds pay interest semiannually on June 30 and December 31 of each year. Rupar accounts for the bonds as a held-to-maturity investment, and uses the effective interest method. On June 30, 2021, Rupar would record a credit to interest revenue of:
Answers
Answer: $3,000
Explanation:
On June 30, 2021, Rupar would have held the bond for 6 months. The coupon rate is an annual figure and so must be translated to a semi annual figure.
To do that simy divide by 2.
= 6% /2
= 3%.
The bond is paid interest on at face value as well.
Therefore the interest on June 30 is,
= 100,000 * 3%
= $3,000
Schumpeter’s process of "creative destruction" challenges Porter’s five forces of competition framework by:_______. A. Introducing concepts of renewal and rebirth into the analysis of industrial change.B. Recognizing that cooperation is as important in business as competition.C. Proposing that competitive behavior determines industry structure rather than the other way round.D. Viewing competition is essential for the renewal of mature and declining industries.
Answers
Answer:
C. Proposing that competitive behavior determines industry structure rather than the other way round.
Explanation:
The Porter’s five forces of competition is a framework developed by Michael E. Porter in 1979, it is used to measure and analyze an organization's competitiveness in a business environment.
The Porter's five forces of competition framework are:
1. The bargaining power of suppliers.
2. The bargaining power of customers.
3. Threat posed by substitute products.
4. Threats posed by new entrants.
5. Threats posed by existing rivals in the industry.
Joseph Alois Schumpeter was born on the 8th of February 1883 in Moravia, and he later became an Austrian political economist.
Joseph Schumpeter’s process of "creative destruction" challenges Porter’s five forces of competition framework by proposing that competitive behavior determines industry structure rather than the other way round.
From Schumpeter’s perspective, competition among organizations is a process of "creative destruction." He argued that, the essential fact about capitalism is the process of "creative destruction."
Hence, the competitiveness of a business environment causes market dominating organizations to face constant challenges from their counterparts through innovations.
Suppose Big Bank offers an interest rate of 10.0% on both savings and loans, and Bank Enn offers an interest rate of 10.5% on both savings and loans. a. What profit opportunity is available? b. Which bank would experience a surge in the demand for loans? Which bank would receive a surge in deposits? c. What would you expect to happen to the interest rates the two banks are offering? a. What profit opportunity is available? A. Take a loan from Big Bank at 10.0% and save the money in Bank Enn at 10.5%. B. Take a loan from Bank Enn at 10.5% and save the money in Big Bank at 10.0%. C. Take a loan from Big Bank at 10.5% and save the money in Big Bank at 10.0%. D. Save at both banks.
Answers
Answer:
Option A. Take a loan from Big Bank at 10.0% and save the money in Bank Enn at 10.5%.
Explanation:
Take a loan from Big Bank and deposit in Bank Enn. This activity can lead to a profit of 0.5% on the amount.
Assuming you take a Loan of $3000 from Big Bank at 10% interest rate. Present cash in hand is $3000 and the interest to be paid will be 10% of $3000 which is $300 every period.
If you deposit this amount with Bank Enn who pays an interest of 10.5%. You will receive $315 (10.5% of $3000) every period.
Doing this, you have a gain of $15 by the gap in the interest rates.
Two types of institutional purchasers exist: one type operates similarly to governments, in that the purchasing process is influenced, determined, or administered by government units. The other type of purchasers ____________.
Answers
Answer:
are organized more like corporations
Explanation:
These other institutional purchasers are non-government organizations that are more organized like corporations. They buy goods and services for the support of their internal operations. The function of institutions is to better their communities, not to essentially make a profit. Examples are churches, hospitals, and colleges.
Describe how to make an electronic payment
Answers
urn on eifiAnswer:
just t
Explanation:
Answer:
Each bank as similar ways when it comes to making an electronic payment. Once you are in your bank information on your phone or computer, you can set up a payment in the payments/bills section. You add the information to the bill you wish to pay and then you send the amount you want to pay ont he date you schedule it for
Explanation: Set up an account - register your details and follow the instructions.
Connect a bank card - enter your credit or debit card details.
The seven criteria for describing a nation’s economy introduced can be combined in a number of different ways. For example, the United States can be characterized as follows:
Type of economy: advanced industrial state Type of government: democracy with a multiparty system.
Trade and capital flows: incomplete free trade and part of a trading bloc.
The commanding heights: mix of state and private ownership.
Services provided by the state and funded through taxes: pensions and education, but not health care
Institutions: transparency, standards, no corruption, a free press, and strong courts
Markets: free market system characterized by high-risk/high-reward entrepreneurial dynamism.
Required:
a. Use these seven criteria to develop a profile of one of the BRICS nations, or any other country that interests you.
b. What implications does this profile have for marketing opportunities in the country?
Answers
Answer:
A. BRICS is an acronym for for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa.
For this study, i,ll work with China.
China:
Type of economy: advanced industrialType of government: Unitary one-party socialist republicTrade and capital flow: incomplete free trade and part of a trading blocThe commanding heights: mix of state and private ownershipServices provided through state and funded through taxes: Transportation, education, pension, but not healthcare.Institution: Non-transparency, highly corruption until recent death penalty for corruption, no protection of human right, no political freedom or freedom, a strong court.Markets: mixed market system characterized by high-risk/high-reward entrepreneurial dynamismB. China's profile promises a good marketing opportunity so long as one goes in line with the nation's strict laws and business codes.
The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following: If sales for the current year were $753,500 and accounts receivable decreased by $48,400 during the year, what was the amount of cash received from customers
Answers
Answer:
The answer is $801,900
Explanation:
Cash received from customers is a line item under operating activities in the cash flow. It is the total amount of money collected from customers for the period.
Cash received from customers equals sales plus decrease in accounts receivable.
Sales = $753,500
Decrease in accounts receivable = $48,400.
Therefore, Cash received from customers = $753,500 + $48,400
$801,900
Choose the most accurate statement concerning the workplace: If wages conform with the law, they are fair wages. Employers have no obligation to dismiss workers as painlessly as possible. An employer's financial capabilities affect what constitutes a fair wage scale for that employer's employees. All instances of nepotism raise serious moral concerns.
Answers
Answer:
An employer's financial capabilities affect what constitutes a fair wage scale for that employer's employees.
Explanation:
It is known by a lot of workers who are aquainted with their working ethics logs even if you’re not given a written contract, you are entitled to a written statement that contain your main employment terms. This basically gives you details of your:
*job title
*pay
*hours of work
*access to in work benefits such as sick pay and holiday entitlement.
That is why in the written statements above, it is noted that an employer's financial capabilities affect what constitutes a fair wage scale for that employer's employees. This is because, no matter your employment status, if you’re working, you are entitled to an employment contract.
These contracts at some points could be verbal agreements, though they have the same legal authority and can sometimes be hard to prove.
The most accurate statement concerning the workplace among the options provided is: An employer's financial capabilities affect what constitutes a fair wage scale for that employer's employees. Hence, option C is the correct answer.
This statement acknowledges that an employer's financial capabilities play a role in determining what can be considered a fair wage scale for their employees.
Different employers may have varying financial capacities, and they may need to take into account factors such as the industry, market conditions, and their own financial situation when setting wages. Fairness in wages is subjective and can be influenced by these factors.
Learn more about employers here:
brainly.com/question/31049435
#SPJ6
Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 ½. The straight-line method is used to allocate interest expense. 1. Using the implied selling price of 87 ½, what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these bonds? 3. What is the amount of bond interest expense recorded on the first interest payment date?
Answers
Answer: 1. $218750 ; 2. $231, 250 ; 3. $11562.50
Explanation:
1. The bonds with a par value of $250,000 and implied selling price of 87 ½.
Cash proceed = 250,000 × 87.5%
= $218,750
2. Since it's semiannual interest payments, the total amount of bond interest expense that will be recognized over the life of these bonds will be:
[20 × (250,000 × 8% × 6/12)]+ $250,000 - $218,750
= $200,000 + $250,000 - $218,750
= $231, 250
3. The amount of bond interest expense recorded on the first interest payment date will be:
= Total bond interest expense/number of payments
= $231,250/20
= $11562.50
1. The issuer cash proceed should be $218,750.
2. The total amount of bond interest expense is $231,250.
3 The amount of bond interest expense is $11,562.50.
The calculation is as follows:1. Cash proceed = 250,000 × 87.5%
= $218,750
2. The total amount of bond interest expense is
= [20 × (250,000 × 8% × 6/12)]+ $250,000 - $218,750
= $200,000 + $250,000 - $218,750
= $231, 250
3. The amount of bond interest expense is
= Total bond interest expense ÷ number of payments
= $231,250 ÷ 20
= $11,562.50
Therefore we can conclude that
1. The issuer cash proceed should be $218,750.
2. The total amount of bond interest expense is $231,250.
3 The amount of bond interest expense is $11,562.50.
Learn more: brainly.com/question/13549064
Alpha Company has sales revenue of $5,000,000, cost of goods sold of $2,000,000, and net income of $750,000. For the last three years, the company has 1,000,000 shares of common stock authorized and 200,000 shares of common stock issued and outstanding. The company does not have any preferred stock. What is basic EPS for Alpha Company
Answers
Answer:
The basic EPS for Alpha Company is $3.75 per share
Explanation:
The earnings per share are the net income for the year divided by the weighted average number of common stock issued and outstanding.
Net income here belongs to only common stockholders since the company has no debt finance nor preferred stock.
the net income is $750,000
The weighted average number of common stock issued and outstanding is 200,000
earnings per share=$750,000/200,000=$3.75 per share
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. "The total manufacturing costs added during the period are _____________.
Answers
Answer:
debit factory wages payable $150,000 credit cash, $150,000
Types of Businesses a. Indicate whether each of the following companies is primarily a service, retail, or manufacturing business. If you are unfamiliar with the company, use the Internet to locate the company's home page or use the finance Web site of Yahoo. 1. Alcoa Inc. 2. Boeing 3. Caterpillar 4. Citigroup Inc. 5. CVS 6. Dow Chemical Company 7. eBay Inc. 8. FedEx 9. Ford Motor Company 10. Gap Inc. 11. H&R Block 12. Hilton Hospitality, Inc. 13. Procter & Gamble 14. SunTrust 15. Wal-mart Stores, Inc. b. For which of these businesses is the accounting equation relevant? Merchandise Manufacturing Service All of the above
Answers
Answer:
a) Indicating whether the companies are a service, retail, or manufacturing business.
1. Alcoa Inc. : Manufacturing Business
2. Boeing : Manufacturing Business
3. Caterpillar : Manufacturing Business
4. Citigroup Inc. : Service Business
5. CVS : Retail Business
6. Dow Chemical Company : Manufacturing Business
7. eBay Inc. : Service Business
8. FedEx : Service Business
9. Ford Motor Company : Manufacturing Business
10. Gap Inc. : Retail business
11. H&R Block : Service Business
12. Hilton Hospitality, Inc. : Service Business
13. Procter & Gamble : Manufacturing Business
14. SunTrust : Service Business
15. Wal-mart Stores, Inc. : Retail business
b) The accounting equation serves as a foundational block for the accounting system of all companies therefore it is relevant to all businesses.
Explanation:
a) Indicating whether the companies are a service, retail, or manufacturing business.
1. Alcoa Inc. : Manufacturing Business
2. Boeing : Manufacturing Business
3. Caterpillar : Manufacturing Business
4. Citigroup Inc. : Service Business
5. CVS : Retail Business
6. Dow Chemical Company : Manufacturing Business
7. eBay Inc. : Service Business
8. FedEx : Service Business
9. Ford Motor Company : Manufacturing Business
10. Gap Inc. : Retail business
11. H&R Block : Service Business
12. Hilton Hospitality, Inc. : Service Business
13. Procter & Gamble : Manufacturing Business
14. SunTrust : Service Business
15. Wal-mart Stores, Inc. : Retail business
b) The accounting equation should be for all companies therefore it is relevant to all businesses.
Learn more: https://brainly.com/question/10283285?referrer=searchResults
Mountain View Resorts purchased equipment at the beginning of 2021 for $46,000. Residual value at the end of an estimated four- year service life is expected to be $6,100. The machine operated for 2,100 hours in the first year and the company expects the machine to operate for a total of 12,000 hours over its four-year life. Calculate depreciation expense for 2021, using each of the following depreciation methods: (1) straight-line, (2) double-declining- balance, and (3) activity-based. (Round your intermediate calculations to 2 decimal places.) Depreciation Expense Straight-line Double-declining-balance Activity-based
Answers
Answer:
(1) straight-line = $9,975
(2) double-declining- balance = $23,000
(3) activity-based = $6,982.50
Explanation:
purchase cost $46,000
useful life 4 years
residual value $6,100
total operating hours 12,000
(1) straight-line = ($46,000 - $6,100) / 4 years = $9,975 fo 2021
(2) double-declining- balance = 2 x ($46,000 / 4 years) = $23,000 fro 2021
(3) activity-based = 2,100 hours x [$46,000 - $6,100) / 12,000 hours] = 2,100 x $3.325 = $6,982.50
The double declining method is considered an accelerated depreciation method, that is why it is so high.
g Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2021, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $33,900 on a future date. Unless informed otherwise, assume that Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 8%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Assume the note indicates that Seneca is to pay Arctic the $33,900 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021. Assume the same facts as in requirement 1, and prepare the journal entry for Arctic to record collection of the payment on December 31, 2021. Assume instead that Seneca is to pay Arctic the $33,900 due on the note on December 31, 2022. Prepare the journal entry for Arctic to record the sale on January 1, 2021. Assume instead that Arctic does not view the time value of money component of this arrangement to be significant, and that the note indicates that Seneca is to pay Arctic the $33,900 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021.
Answers
Answer:
Assume the note indicates that Seneca is to pay Arctic the $33,900 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021.
Dr Notes receivable 33,900
Cr Sales revenue 31,389
Cr Discount on notes receivable 2,511
Discount on notes receivable is a contra asset account that decreases the net amount of notes receivable.
Assume the same facts as in requirement 1, and prepare the journal entry for Arctic to record collection of the payment on December 31, 2021.
Dr Cash 33,900
Cr Notes receivable 31,389
Cr Interest revenue 2,511
Assume instead that Seneca is to pay Arctic the $33,900 due on the note on December 31, 2022. Prepare the journal entry for Arctic to record the sale on January 1, 2021.
Dr Notes receivable 33,900
Cr Sales revenue 29,064
Cr Discount on notes receivable 4,836
Discount on notes receivable is a contra asset account that decreases the net amount of notes receivable.
Assume instead that Arctic does not view the time value of money component of this arrangement to be significant, and that the note indicates that Seneca is to pay Arctic the $33,900 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021.
Dr Notes receivable 33,900
Cr Sales revenue 33,900
Explanation:
Non interest bearing notes must be recorded at present value, so we need to determine the present value of the payment:
Payment due December 21, 2021, PV = $33,900 / (1 + 8%) = $31,389
Payment due December 21, 2022, PV = $33,900 / (1 + 8%)² = $29,064
We use the discount on notes receivable account (contra asset account) to decrease the net value of notes receivable.
Odeletta Corporation is considering an investment of $ 506 comma 000 in a land development project. The investment will yield cash inflows of $ 212 comma 000 per year for five years. The company uses a discount rate of 9%. What is the net present value of the investment? Present value of an ordinary annuity of $1: 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 4 3.312 3.24 3.17 5 3.993 3.89 3.791
Answers
Answer:
$318,680
Explanation:
initial investment ($506,000)
cash flow year 1 = $212,000
cash flow year 2 = $212,000
cash flow year 3 = $212,000
cash flow year 4 = $212,000
cash flow year 5 = $212,000
discount rate 9%
present value of an ordinary annuity for 5 years and 9% discount rate = 3.89
the net present value = (yearly cash flow x annuity value) - initial investment = ($212,000 x 3.89) -$506,000 = $824,680 - $506,000 = $318,680
The net present value of an investment equals the difference between the present value of the cash flows generated by the investment minus the initial cost of the investment.
Northern Optical ordinarily sells the X-lens for $50. The variable production cost is $10, the fixed production cost is $18 per unit, and the variable selling cost is $1. A customer has requested a special order for 10,000 units of the X-lens to be imprinted with the customer’s logo. This special order would not involve any selling costs, but Northern Optical would have to purchase an imprinting machine for $60,000. What is the rock bottom minimum price below which Northern Optical should not go in its negotiations with the customer? *
Answers
Answer:
$34
Explanation:
The minimum price to accept for the special order is the one that takes into consideration the cost of buying imprinting machine at the cost of $60,000.
The minimum price would contain variable cost of $10,fixed production cost of $18 ,$0 variable selling cost but includes $6 per unit of the imprinting machine cost i.e $60,000/10,000
The cost sums to be $34 i.e $10+$18+$0+$6.
The fixed cost per unit would also have been excluded if it was confirmed that the company has idle capacity
Dmitri and Frances Cuttner live in Swarthmore, PA. Frances's father, Jake, lives in Sweden.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M).
Transaction CIGXM
Dmitri's employer upgrades all of its computer systems
using U.S.-made parts.
Frances gets a new refrigerator made in the United States.
Dmitri buys a bottle of Italian wine.
The state of Pennsylvania repaves highway PA 320, which
goes through the center of Swarthmore.
Frances's father in Sweden orders a bottle of Vermont
maple syrup from the producer's website.
Answers
Answer and Explanation:
As we know that
Gross domestic product = Consumption + Investment + Government purchase + Net exports
where,
Net exports = Exports - imports
It is the finailzed value of all goods and services that are produced and consumed within the boundary
These are the 5 parts of the gross domestic product. by this we can easily calculate the gross domestic product
Based on the above, the classifications are as follows
Dmitri's employer upgrades all of its computer systems using U.S.-made parts. = Investment as it upgrades all the computer system
Frances gets a new refrigerator made in the United States. = Consumption. As the new refrigerator consume accrodinhg to the need
Dmitri buys a bottle of Italian wine. = Import and consumption. It is an import plus consumption first it is purchased and then after purchasing it is consumed
The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. = Government purchase as it is for the benefit of the general public
Frances's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. = export as it is for the third party so the same come under the export
On December 31, 2020, Grand Company had $1,232,000 of short-term debt in the form of notes payable due February 2, 2021. On January 21, 2021, the company issued 25,500 shares of its common stock for $48 per share, receiving $1,224,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2021, the proceeds from the stock sale, supplemented by an additional $8,000 cash, are used to liquidate the $1,232,000 debt. The December 31, 2020, balance sheet is issued on February 23, 2021. Show how the $1,232,000 of short-term debt should be presented on the December 31, 2020, balance sheet. (Enter account name only and do not provide descriptive information.)
WileyPlus
Answers
Answer:
Current liabilities:
Notes payable $8,000
Non-current/long-term liabilities:
Notes payable $1,224,000
Explanation:
The actual amount of notes payable at 31st December is the difference between the short-term debt and the amount of cash realized from the issue of common stock whose proceeds are meant to be used in liquidating the short-term debt.
The actual amount of notes payable=$1,232,000-$1,224,000=$8,000
By issuing common stock of $1,224,000 to repay the short-term debt,the $1,224,000 is effectively converted to funding of long-term nature,hence classified as long-term liabilities
Item 13Item 13 Jacques relies on a cost-benefit analysis to decide if moving operations overseas is better than increasing the size of the current manufacturing facility in the United States. He is using the ________ approach to ethics to determine his answer.
Answers
Answer:
Utilitarian approach.
Explanation:
Utilitarian approach evaluates actions to be taken in terms of its consequences and outcomes.
The aim of the utilitarian approach is to ensure the largest number of people benefit while the lowest number of people are harmed.
In this scenario Jacques uses a cost-benefit analysis to decide if moving operations overseas is better than increasing the size of the current manufacturing facility in the United States.
Cost benefit tries to determine if the benefit of an action outweighs it's cost. Based on findings the best option that has the greatest benefit is selected.
If tea and coffee are substitute goods, which of the following is likely to occur if the price of coffee has increased?
A. The demand curve for tea shifts to the right.
B. A rightward or downward movement along the demand curve for tea.
C. The supply curve for coffee shifts to the right.
D. The demand curve for coffee shifts to the right.
Answers
Answer:
A. The demand curve for tea shifts to the right
Explanation:
Demand is defined as the measure of sensitivity of quantity demanded is a group with changes in price.
However when there is an increase or decrease in demand as a result of other factors except for price it is called shift in demand.
In the given scenario if the price of coffee increases, it will result in less amount of coffee being demanded. People will look for a substitute (tea).
Demand for tea will increase as a result of shift of the demand curve for real to the right.
This is illustrated in the attached diagram.
Answer:
A. The demand curve for tea shifts to the right.
Explanation:
In the above condition where tea and coffee are substitute goods amongst themselves, it is easily to explain according to the supply and demand theories that when price of coffee increases, the demand curve for tea shifts to the right.
It can be easily seen that a relation showing the amounts of a commodity
there is an increase or decrease in demand as a result of other factors that buyers purchase at alternative prices during a given period of time, and the fact that these goods are substituted against each other made it possible.
Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (108); Office Equipment (163); Automobiles (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); Common Stock (307); Dividends (319); Fees Earned (402); Salaries Expense (601); and Utilities Expense (602).
Answers
Answer:
Eric Pense Journal Entries:
a. Dr Cash$23,000
Dr Office Equipment12,000
Cr Pense, Capital$35,000
b. Dr Land $8,000
Dr Building $33,000
Cr Cash$15,000
Cr Notes payable$26,000
c.Dr Supplies 600
Cr Accounts payable$600
d.Dr Automobile$7,000
Cr Capital$7,000
e.Dr Office Equipment$1,100
Cr Accounts payable$1,100
f.Dr Salary $800
Cr Cash$800
g.Dr Cash$2,700
Cr Fees Earned$2,700
h. Dr Utilities Expense$430
Cr Cash$430
i.Dr Account payable$600
Cr Cash$600
J. Dr Office Equipment $4,000
Cr Cash$4,000
k. Dr Accounts receivables$2,400
Cr Fees Earned$2,400
l. Dr Salary$800
Cr Cash$800
m. Dr Cash$1,000
Cr Accounts Receivable$1,000
n.Dr Pense, Withdrawal$1,050
Cr Cash$1,050
Explanation:
Tructuring a Special-Order Problem Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ4 at a price of $3.80 each. The new customer is geographically separated from the company's other customers, and existing sales would not be affected. Harrison normally produces 75,000 units of IJ4 per year but only plans to produce and sell 60,000 in the coming year. The normal sales price is $12 per unit. Unit cost information for the normal level of activity is as follows:
Direct materials: $1.75
Direct labor: 2.50
Variable overhead: 1.50
Fixed overhead: 3.25
Total: $9.00
Fixed overhead will not be affected by whether or not the special order is accepted. By how much will operating income increase or decrease if the order is accepted?
Answers
Answer:
Effect on income= $19,500 decrease
Explanation:
Giving the following information:
Offer:
Purchase 10,000 units of its model IJ4 for $3.80 each.
Direct materials: $1.75
Direct labor: 2.50
Variable overhead: 1.50
Unitary variable cost= $5.75
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs:
Effect on income= 10,000* (3.8 - 5.75)= $19,500 decrease
Farmers rotate their crops between corn and soybean to increase crop yields. This behavior exhibits a. Economies of scale b. Diseconomies of scale c. Economies of scope d. Diseconomies of scope
Answers
Answer:
c. Economies of scope
Explanation:
In business, economies of scope refers to producing more than one product or service because you can earn higher profits by diversifying your production. The cost of producing these products together or one after another is lower or yields more benefits than producing them separately.
In agriculture economies of scope refers to producing as many different crops as you can on the same fields. In the case of soybean and corn (or wheat), the crops are rotated because each crop required different nutrients from the soil.
The journal entry to record the cost of goods sold in process costing is a(n):______
a) decrease in assets and a decrease in liabilities
b) decrease in an asset and an increase in an expense
c) increase in assets and an increase in an expense
d) increase in assets and an increase in equity
Answers
Answer: b) decrease in an asset and an increase in an expense
Explanation:
In process costing when recording the Cost of Goods sold, goods are to be transferred from the finished goods account to the Costs of Goods sold account to signify that the goods are ready for sale.
In such a situation the account to be debited is the Cost of Goods Sold account. The Account to be credited is the Finished Goods account.
The Cost of Goods sold is an Expense Account and Expense accounts increase when debited so this will result in an increase in Expenses.
The Finished Goods account is an Asset account and asset accounts reduce when they are credited. This will therefore reduce the Assets in the firm.
March 1, 2014 Cardullo's purchased an order of German chocolate from a supplier for $250, but didn't pay cash for the order until March 31, 2014. How would you record this transaction at the time of the purch
Answers
Answer:
Dr Inventory Purchases $250
Cr Trade Payables $250
Explanation:
At the time of the purchase, Inventory purchases which is an asset in nature has been increased and hence must be debited by $250 and similarly the Payable has been increased which is liability in nature and hence must be credited with $250. The entry would be as under:
Dr Inventory Purchases $250
Cr Trade Payables $250
Northwest Catering owns and operates several restaurant services in Oregon, Washington, and Idaho. One restaurant chain has experienced sharply declining profits. The company's management has decided to test the operational assets for possible impairment. The relevant information for these assets is presented:Book value $4.3 millionEstimated total future cash flows 5.4 millionFair value 3.0 million. Determine the amount of the impairment loss, if any.
Answers
Answer:
1.3 million Impaired asset is the determined amount
Explanation:
Asset impaired as the estimated fair value cash flows is lower than book value
Impairment loss = Fair value - Book value
= 3.0 million - 4.3 million
= 1.3 million Impaired asset
An impaired asset is an asset that has a market value less than the value which was disclosed on the organisation balance sheet. When an asset is said to be impaired, it will need to be written down on the company's balance sheet to its current market value.
An employee of JHT Holdings, Inc., a trucking company, was responsible for resolving roadway accident claims under $25,000. The employee created fake accident claims and wrote settlement checks of between $5,000 and $25,000 to friends or acquaintances acting as phony "victims." One friend recruited subordinates at his place of work to cash some of the checks. Beyond this, the JHT employee also recruited lawyers, whom he paid to represent both the trucking company and the fake victims in the bogus accident settlements. When the lawyers cashed the checks, they allegedly split the money with the corrupt JHT employee. This fraud went undetected for two years.Answer the following True or False questions concerning the fraud.1. Frauds that are perpetrated with multiple parties in different positions of control make detecting fraud more difficult.2. Claims should be authorized and verified before payment is made.3. The employee made sure each claim had a phony "victim."4. Corrupt lawyers were brought into the fraud to act as attorneys for the claimants.
Answers
Answer:
1) true
2) False
3) True
4) True
Explanation:
When multiple parties collaborate to make a fraud successful, it is extremely difficult to detect and prove the fraud.
Claims were authorized and verified. Each individual's background can't be verified in depth.
The employee made sure each claim had a phony victim to verify claims
Only corrupt lawyers would let this fraud be undetected. Lawyers while questionning are able to find out the truthfulness in the claim.
Ellen's tax client, Tom, is employed at a large company that offers health care flexible spending accounts to its employees. Tom must decide at the beginning of the year whether he wants to put as much as $2,700 of his salary into the health care flexible spending account. He expects that he will have to pay for at least $8,000 of medical expenses for his family during the year since his wife is seeing a psychiatrist every week and his daughter and son are both having their teeth straightened. Tom does not itemize deductions. Should Ellen recommend that Tom put the maximum in his medical flexible spending account, and if so, why?
Karen is a wealthy retired investment advisor who is in the 35 percent tax bracket. She has a choice between investing in a high-quality municipal bond paying 5 percent or a high-quality corporate bond paying 7 percent. Which investment do you think she will make and why?
Answers
Answer: 1. Yes he should
2. Municipal.
Explanation:
1. Tom seems to have a lot of medical expenses coming up and so he should set aside as much as he can to cover them.
Another reason he should is that contributions to this type of account are treated as tax deductible. This means that not only does he get to cover his medical expenses, they can also reduce the taxes that he pays for the year.
2. Municipal Bonds are tax exempt and so Karen stands to gain by investing in Municipal Bonds given her tax bracket.
With her tax bracket, the interest earned on the Corporate bond would be,
After tax interest earned = 7% ( 1 - 0.35)
= 4.55%.
This is less than the 5% she would receive from the high quality Municipal bond so she should invest in the Municipal Bond.
