Answer:
The correct answer is the option C: This case is considered a civil law case.
Explanation:
To begin with, the fact that the case is considered to be a civil law case is due to the fact that the relationship between the both parties is comercial and therefore that they are intented to operate inside the civil area of the law according to what they do. Moreover, the contract will be favourable in court because of the statements that were written on it, and thats why the most probably is that Jonathan will win the case.
During 2019, Lincoln Company hires 20 individuals who are certified to be members of a qualifying targeted group. Each employee works in excess of 600 hours and is paid wages of $16,600 during the year. Determine the amount of Lincoln's work opportunity credit.
Answer:
$48000
Explanation:
because employees work an excess of 600 hours which is more than 400 hour and they are certified, Lincoln company can take the full credit.
first $6,000 at 40% for each worker
= (6,000 X 40 percent) x 20 workers
= 6000 x 0.40 x 20
= 48000
The amount of Lincoln's work opportunity credit is $48000
At January 1, 2008, Ceatric, Inc. has beginning inventory of 2,000 surfboards. Ceatric estimates it will sell 5,000 units during the first quarter of 2008 with a 12% increase in sales each quarter. Ceatric’s policy is to maintain an ending inventory equal to 25% of the next quarter’s sales. Each surfboard costs $100 and is sold for $150. How much is budgeted sales revenue for the third quarter of 2008?
Answer:
Sales= $940,800
Explanation:
Giving the following information:
At January 1, 2008, Ceatric, Inc. has beginning inventory of 2,000 surfboards. Ceatric estimates it will sell 5,000 units during the first quarter of 2008 with a 12% increase in sales each quarter. Each surfboard costs $100 and is sold for $150.
First, we need to calculate the number of units sold in the third quarter:
1stQ= 5,000
2ndQ= 5,000*1.12= 5,600
3rdQ= 5,600*1.12= 6,272
Now, the sales revenue:
Sales= 6,272*150= $940,800
Variable costs= 6,272*100= (627,200)
Gross profit= $313,600
If the aggregate supply curve is flat:_________
a. contractionary fiscal or monetary policy will cause significantly less inflation.
b. expansionary fiscal or monetary policy will add significantly to real GDP will little effect on inflation.
c. expansionary fiscal or monetary policy will add little to real GDP but will increase inflation significantly.
d. contractionary fiscal or monetary policy will reduce inflation with little effect on real GDP.
Answer:
b. expansionary fiscal or monetary policy will add significantly to real GDP will little effect on inflation.
Explanation:
The Keynesian aggregate supply curve is mostly horizontal (flat) because a decline in aggregate demand will always result in a decline in aggregate production (supply). In other words, during a recession, companies are willing to supply (produce and sell) all the products and services that their consumers demand at a given price. Even if the price does not change, if aggregate demand decreases, aggregate supply will also decrease.
That is why Keynesian economists argue that governments must intervene during economic recessions.
A legal written promise to pay borrowed money back at a fixed rate of interest over a fixed period of time is a
The answer is Promissory Note
Explanation:
The most common document used to register a loan and guarantee this is paid back is a Promissory Note. In this, the parties involved register the amount of money that was borrowed and the borrower promises through the document to pay this amount of money before a fixed specific date. Also, promissory notes register the rate of interest that will be paid by the borrower. Besides this, a promissory note is a legal document that registers the loan and can be used as a legal instrument in case the money is not paid back.
leutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours. The Assembly Department's factory overhead rate is
Answer:
$5.28 per direct labor hour
Explanation:
The computation of the assembly department factory overhead rate is shown below:
The Assembly Department's factory overhead rate = Estimated total factory overhead ÷ Total Direct Labor hours
where,
Estimated total factory overhead for Assembly Department = $71,800.
And,
Total Direct Labor hours is
= [910 units × 6 hours per unit] + [2,710 × 3 hours per unit]
= 5,460 hours + 8,130 hours
= 13,590 direct labor hour
So, the assembly department factory overhead rate is
= $71,800 ÷ 13,590 direct labor hour
= $5.28 per direct labor hour
1. A country’s national saving is 20% of its national income and it needs $4 worth of capital for producing $1 worth of goods and services on the average. The economic planners want the country to grow at the rate of 10% per annum and expect that there will be no shortage of labor in the growth process. Is this growth rate consistent with what you have learned from the Harrod Domar Model? If not, how can the planners make a plan to achieve a 10% growth rate?
Answer: No. The growth rate inconsistent with what was learned from the Harrod Domar Model.
Explanation:
The Harrod–Domar model is a model of economic growth that is used to explain the growth rate of an economy in terms of the level of capital and saving. The Harrod-Domar models assumes that a full-employment level of income exist and that there is no government interference in the economy.
Based on the question, the growth rate will be: = 20% ÷ 4= 5%.
To achieve a 10 % growth rate in the economy, the savings must either rise to 40% or capital output ratio drop to 2. For example, when growth rate rises to 40%, this will be= 40% ÷ 4 = 10%.
The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 26,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $62,100 consisted of $46,000 of direct material costs and $16,100 of conversion cost.
During the month, the forming department started 320,000 units. At the end of the month, the forming department had 32,000 units in ending inventory, 90% complete as to materials and 40% complete as to conversion. Units completed in the forming department are transferred to the painting department.
Cost information for the forming department is as follows:
Beginning work in process inventory $ 62,100
Direct materials added during the month 1,393,760
Conversion added during the month 800,900
1. Calculate the equivalent units of production for the forming department. Direct Materials Conversion
2. Calculate the costs per equivalent unit of production for the forming department. (Round your answer to 2 decimal places.) EUP EUP Direct Materials Conversion
Answer:
1. Direct Materials = 342,800, Conversion = 326,800
2. Direct Materials = $4.20, Conversion = $2.50, Total = $6.70
Explanation:
Calculation of equivalent units of production for the forming department.
First Calculate the Units Completed and Transferred to the Painting department.
Units Completed and Transferred to the Painting department = 26,000 + 320,000 - 32,000 = 314,000
Direct Materials
Units Completed and Transferred to the Painting department = 314,000
Units in Closing Work In Process (32,000 × 90%) = 28,800
Total Equivalent Units = 342,800
Conversion
Units Completed and Transferred to the Painting department = 314,000
Units in Closing Work In Process (32,000 × 40%) = 12,800
Total Equivalent Units = 326,800
Calculation of the costs per equivalent unit of production for the forming department.
First calculate the costs incurred during the period for both Direct Materials and Conversion.
Direct Materials
Costs in Opening Work In Process = $46,000
Costs Added during the Period = $1,393,760
Total Costs = $1,439,760
Conversion
Costs in Opening Work In Process = $16,100
Costs Added during the Period = $800,900
Total Costs = $817,000
Then calculate the cost per equivalent unit of production for both Direct Materials and Conversion.
Cost per equivalent unit = Total Costs / Total Equivalent Units
Direct Materials ($1,439,760 / 342,800) = $4.20
Conversion ($817,000 / 326,800) = $2.50
Total = $6.70
You are an entrepreneur starting a biotechnology firm. If your research is successful, the technology can be sold for $ 30$30 million. If your research is unsuccessful, it will be worth nothing. To fund your research, you need to raise $2.02.0 million. Investors are willing to provide you with $2.02.0 million in initial capital in exchange for 50 %50% of the unlevered equity in the firm. a. What is the total market value of the firm without leverage? b. Suppose you borrow $1.01.0 million. According to MM, what fraction of the firm's equity will you need to sell to raise the additional $1.01.0 million you need? c. What is the value of your share of the firm's equity in cases (a) and (b)? a. What is the total market value of the firm without leverage?
Answer:
a. What is the total market value of the firm without leverage?
= $2 million / 50% = $4 millionb. Suppose you borrow $1.0 million. According to MM, what fraction of the firm's equity will you need to sell to raise the additional $1.0 million you need?
= 33.33%c. What is the value of your share of the firm's equity in cases (a) and (b)?
a) = $4 x 50% = $2 millionb) = $2 millionExplanation:
if successful price = $30 million
if unsuccessful price = $0
investment required = $2 million
in exchange of 50% of the firm
if you borrow $1 million, you will have to give up 33.33% of the company in exchange for the other $1 million needed
= $1 / ($4 - $1) = $1 / $3 = 33%
according to Modigliani and Miller (MM), the value of a firm is determined by its profit.
Rich, Inc. acquired 30% of Doane Corporation's voting stock on January 1, 2018 for $1,000,000. During 2018, Doane earned $400,000 and paid dividends of $250,000. Rich's 30% interest in Doane gives Rich the ability to exercise significant influence over Doane's operating and financial policies. On January 1, 2019, Rich sold half of its stock in Doane for $660,000 cash.
a. What accounting should be made by Rich, Inc. for dividends received from Doane subsequent to the date of investment?
b. What amount should Rich include in its 2018 income statement as a result of the investment?
c. What should be the carrying amount of this investment reported on Rich's December 31, 2018 balance sheet?
d. What should be the gain on sale of this investment in Rich's 2019 income statement?
Answer: a) Reduce by $75,000
b) $120,000
c) $1,045,000
d) $137,500
Explanation:
a) Dividends reduce the investment amount by an investor in the business.
Rich owns 30% in stock so they are entitled to 30% in Dividends.
= 30% * 250,000
= $75,000
Rich's investment account should reduce by $75,000.
b) Doane Corporation earned $400,000 in earnings for the year 2018. Rich should include their share of this earnings in their income statement. Income also increases the investment account. As he owns 30%, they should include 30% of this in their statement.
= 30% * 400,000
= $120,000
c) The Carrying amount of an investment refers to what the investment is worth in the current period which is the end of 2018. Remember that dividends reduce the amount of the investment and income increases the amount.
The Carrying amount therefore is,
= Cost of Investment + Income attributed to Investment - Dividends
= 1,000,000 + 120,000 - 75,000
= $1,045,000
d) As the earnings and the cash dividends for the year 2019 re not available, assume that it is the same as 2018.
This will mean that the carrying value on July 1 will still be $1,045,000.
Rich sold half of their stake so half of the carrying value is
= 1,045,000/2
=$522,500
They sold it for $660,000 but it was worth $522,500. The Gain is therefore,
= 660,000 - 522,500
= $137,500
In Step 4, the EUP from Step 2 and the cost per EUP from Step 3 are used to assign costs to the:______ (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
a. units in beginning inventory
b. units completed and transferred to finished goods
c. units in ending work in process inventory
d. units sold
Answer:
Option B. Units completed and transferred to finished goods
&
Option C. Units in ending work in process inventory
Explanation:
The reason is that the Equivalent units of Production that include number of units that would have been completed if all the efforts required were applied to the product completion which are the products started and finished during the period. The definition clearly states that the units considered would be the one that are shifted to finished goods from work in progress state in the current year or the one which is at work in progress state.
In the nutshell, the only units that would be considered in the assignment of the cost in the Step 4 will be either Work in Progress (Option C) or the Finished Goods that is shifted to Work in Progress (Option B).
Your firm needs a machine which costs $240,000, and requires $39,000 in maintenance for each year of its 7 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 7-year class life category. Assume a tax rate of 40% and a discount rate of 12%. If this machine can be sold for $24,000 at the end of year 7, what is the after tax salvage value
Answer:
The after tax salvage value would be of $18,681.6
Explanation:
In order to calculate the after tax salvage value we would have use and calculate the following formula:
After tax salvage value = selling price*(1-tax rate)+book value*tax rate
Book value = 8 year depreciation amount of 7 year MACR*purchase price
After tax salvage value = $24,000*(1-0.4)+$240,000*4.46/100*0.4
After tax salvage value = $18,681.6
The after tax salvage value would be of $18,681.6
Cawley Company makes three models of tasers. Information on the three products is given below. Sales Variable expenses Contribution margin Fixed expenses Net income Tingler Shocker Stunner $304,000 $496,000 $200,000 149,800 193,300 139.400 154,200 302,700 60,600 119.984 226,816 93,200 $34.216 $75,884 $(32,600) Fixed expenses consist of $296,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $30,000 (Tingler), $80,000 (Shocker), and $34.000 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. (a) Compute current net income for Cawley Company. Net income $ 77500 (b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $296,000 common costs to the two remaining product lines based on their relative sales.)
Answer:
Explanation:
Computation of current net income for Cawley Company
Particulars Tingler Shocker Stunner Total
Sales $304,000.00 $496,000.00 $200,000.00 $1,000,000.00
Variable expense $149,800.00 $193,300.00 $139,400.00 $482,500.00
Contribution Margin (Sales - Variable
expenses) $154,200.00 $302,700.00 $60,600.00 $517,500.00
Fixed expenses $119,984.00 $226,816.00 $93,200.00 $440,000.00
Net Income (Contribution Margin - Fixed
expenses) $34,216.00 $75,884.00 -$32,600.00 $77,500.00
Computation of net income by product line and in total for Cawley Company if the company discontinues the Stunner product line
Particulars Tingler Shocker Total
Sales $304,000.00 $496,000.00 $800,000.00
Variable expense $149,800.00 $193,300.00 $343,100.00
Contribution Margin
(Sales - Variable expenses) $154,200.00 $302,700.00 $456,900.00
Fixed expenses:
Common Fixed expenses
(296000*304000/800000)
(296000*496000/800000) $112,480.00 $183,520.00 $296,000.00
Direct fixed expenses $30,000.00 $80,000.00 $110,000.00
Total Fixed expenses $142,480.00 $263,520.00 $406,000.00
Net Income (Contribution Margin
- Fixed expenses) $11,720.00 $39,180.00 $50,900.00
Tingler Net Income $11,720.00
Shocker Net Income $39,180.00
Total Net Income $50,900.00
=============
Should Cawley eliminate the stunner produc tline?
NO
Net income would decrease from $ 77,500 to $ 50900
The following transactions occurred for Lantana Company during its first month of operations and have been recorded in the T-accounts.
a. Received $50,000 cash from owners in exchange for common stock.
b. Purchased land for $20,000, paid $5,000 in cash and signed a 2-year note for the remainder.
c. Bought $900 of supplies on account.
d. Purchased $10,000 of equipment, paying cash.
e. Paid $500 on account for supplies purchased in transaction (c).
Required:
1. Determine the T-account balances.
2. Using the information in the transactions, prepare a classified balance sheet for Lantana Company.
(List long-term assets in alphabetical order)
Answer:
1. T-account balances.
Common stock
$50,000
Land
$20,000
Cash
$34,500
Note Payable
$15,000
Supplies
$900
Trade Payable
$400
Equipment
$10,000
2. A classified balance sheet for Lantana Company
Non - Current Assets
Land $20,000
Equipment $10,000
Total Non - Current Assets $30,000
Current Assets
Supplies $900
Cash $34,500
Total Current Assets $35,400
Total Assets $65,400
Equity and Liabilities
Equity
Common stock $50,000
Total Equity $50,000
Current Liabilities
Trade Payable $400
Total Current Liabilities $400
Non - Current Liabilities
Note Payable $15,000
Total Non - Current Liabilities $15,000
Total Equity and Liabilities $65,400
Explanation:
T-account balances.
Common stock
$50,000
Land
$20,000
Cash
$50,000 - $5,000 - $10,000 - $500 = $34,500
Note Payable
$15,000
Supplies
$900
Trade Payable
$900 - $500 = $400
Equipment
$10,000
The T-accounts and the classified balance sheets are the financial statements or the annual reports of the company that provides information regarding the health and wealth of the firm or the corporate.
The T-account balances and the classified balance sheet have been attached below.
To know more about the T account balances and the classified balance sheet, refer to the link below:
https://brainly.com/question/14695345
The ambitious sprinkler system project was finally over and it was hard to believe that it took only two years. The project manager leaned back in his office chair and admired his emerald green lawn and flower garden that was filling in nicely He was amused by the birds that had gathered to bathe and drink at a persistent puddle just outside his window, a harbinger of the first major repair of his own shoddy workmanship. His review of receipts for the job was less entertaining; between trips to the local home improvement store, consultations with plumbers, city inspectors, and some hired labor, he had sunk a small fortune into his lawn. The manager's:_________
A) Historical records made for interesting reading.
B) Post-project analysis would someday appear in Better Housekeeping.
C) Financial closeout would be forever hidden from his wife.
D) Project plan was a document for the ages.
Answer:
Option C
Explanation:
In simple words, the given case relates to the indiscipline if work performed by a manager. The manager was completely unaware of the fact that he had sunk a good amount of money on the project that he is admiring a lot.
From the given case, we can estimate that the manager was also shocked for the first time after reading the receipt, therefore, he will definitely hide his financial reports from his wife or it would lead into a conflict.
Dawn is a manager for a pet grooming shop. She has decided to engage in planning by creating goals for her employees. Dawn has created a plan to increase revenues at the store by setting goals for each employee to up-sell customers into dog pedicures and hair dyeing services, which bring in higher revenues than dog bathing and trimming. Which of the following are likely results of the plan that Dawn has created?
A. Dawn's employees work harder during their shifts
B. Dawn notices her employees staying past their shifts all month in order to meet their goals
C. The pet groomers become more efficient at bathing and trimming dogs so they have more time for dog pedicures and hair dyeing
D. After not hitting the revenue goals the first month, Dawn's employees stop trying to up-sell customers and just focus on bathing and trimming
Answer: A. Dawn's employees work harder during their shifts
B. Dawn notices her employees staying past their shifts all month in order to meet their goals
C. The pet groomers become more efficient at bathing and trimming dogs so they have more time for dog pedicures and hair dyeing
Explanation:
By setting goals for each employee, Dawn has given the employees a reason to work faster and hard so that they may be able to reach their targets.
They will most likely work harder during their shifts so that they make be able to upsell the dog pedicures and hair dying.
If they have not met their quotas she will also notice that they will be staying past the time they are supposed to just so they can meet the target for the day.
She will notice that they start doing dog trimming and bathing faster and more efficiently so that they may have time to convince and then to actually engage in pedicure and hair dying for the dogs.
Project managment strategy depends on which of the followings?
a. The number of days that the project manager is allowed to complete the project.
b. The number of employees one person supervises.
c. The number of levels from top to bottom in an organization.
d. The number of departments involved in a project.
Answer:
a
Explanation:
The first step in any project management strategy is to build a timeline of all the necessary steps required in execution of the project.
In January 2020, the management of Sheridan Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred. Feb. 1 Purchased 500 shares of Muninger common stock for $27,500. Mar. 1 Purchased 700 shares of Tatman common stock for $17,500. Apr. 1 Purchased 40 $1,050, 6% Yoakem bonds for $42,000. Interest is payable semiannually on April 1 and October 1. July 1 Received a cash dividend of $0.50 per share on the Muninger common stock. Aug. 1 Sold 167 shares of Muninger common stock at $65 per share. Sept. 1 Received a $1 per share cash dividend on the Tatman common stock. Oct. 1 Received the semiannual interest on the Yoakem bonds. Oct. 1 Sold the Yoakem bonds for $41,000. At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.
Prepare the adjusting entry at December 31, 2020, to report the investment securities at fair value. All securities are considered to be trading securities. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer: kindly check attached picture
Explanation:
Kindly check attached picture
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?
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
In terms of public offerings of bonds, what is an indenture? A) a list of the duties of a trust company representing the bondholders' interests B) a memorandum that must be produced to describe the details of a bond offering C) a formal contract that specifies a firm's obligations to the bondholders D) a schedule of the fees charged by an underwriting company
Answer:
C) a formal contract that specifies a firm's obligations to the bondholders.
Explanation:
In terms of public offerings of bonds, an indenture is a formal contract that specifies a firm's obligations to the bondholders. It is typically a legal and binding contract between a firm (bond issuer) and its bondholders, which provides detailed information on terms and clauses.
The indenture specifies the essential features of a bond, these includes callabilty of bonds, interest payments time, maturity date of the bond, interest calculation method etc.
Hence, in case there's a conflict between the bond issuer and the bondholders; the indenture would be the reference document to be used for conflict resolution.
Manley Co. manufactures office furniture. During the most productive month of the year, 5,000 desks were manufactured at a total cost of $87,000. In its slowest month, the company made 2,000 desks at a cost of $49,500. Using the high-low method of cost estimation, total fixed costs are:
Answer:
$24,500
Explanation:
For computing the total fixed cost first we have to determine the total fixed cost which is shown below:
Variable cost per desk = (Total high cost - total low cost) ÷ (High number of desk manufactured - low number of desk manufactured)
= ($87,000 - $49,500) ÷ (5,000 desks - 2,000 desks)
= $37,500 ÷ 3,000 desk
= $12.5
Now the fixed cost equal to
= Total high cost - (High number of desk × Variable cost per hour)
= $87,000 - (5,000 desks × $12.5)
= $87,000 - $62,500
= $24,500
A new factory manager was hired for a company that was experiencing slow production rates and lower production volumes than demanded by management. Uponinvestigation, the manager found that the workers were poorly motivated and not closely supervised. Midway through the quarter, an incentive program was initiated, and cash bonuses were given when workers hit their production targets. Within a short time, production output increased, but the bonuses had to be charged to the direct labor budget, and the manager was worried about the impact of these costs on operating income. This could produce a(n) ________.
A. unfavorable direct labor efficiency variance
B. unfavorable direct materials cost variance
C. unfavorable direct labor cost variance
D. unfavorable direct materials efficiency variance
Answer:
C. unfavorable direct labor cost variance
Explanation:
The payment of cash bonuses would result in an unfavorable direct labor cost variance
. The Direct labor cost variance is unfavorable if the actual cost per hour is higher than the standard cost which in this question is as a result of bonuses charged to the direct labor budget. In other word, the factory paid more per hour of labor than what it has estimated
Boone Co.'s sales, based on past experience, are 20% cash and 80% credit. Credit sales are typically collected as follows: 40% in the month of sale, 50% in the month after the sale, and 10% in the second month following month of sale. On December 31, the accounts receivable balance is $64,500, of which $21,000 is from November sales. Total sales for January and February are budgeted to be $107,000 and $127,000, respectively.
What are Boone Co.'s budgeted cash receipts for February?
a) $102,130.
b) $120,000.
c) $108,370.
d) $134,880.
e) $116,090.
Answer:
Total= $113,190
Explanation:
Giving the following information:
Boone Co.'s sales, based on experience, are 20% cash and 80% credit.
Credit sales are typically collected as follows:
40% in the month of sale
50% in the month after the sale
10% in the second month.
Sales:
On account December= 64,500 - 21,000= 43,500
Cash January= 107,000
Cash February= 127,000
We need to calculate the cash collected in February:
Cash collection:
From December= 43,500*0.1= 4,350
From January= (107,000*0.8)*0.5= 42,800
Cash From February= (127,000*0.2)= 25,400
On account February= (127,000*0.8)*0.4= 40,640
Total= $113,190
Perine Company has 5,460 pounds of raw materials in its December 31, 2019, ending inventory. Required production for January and February of 2020 are 4,200 and 6,000 units, respectively. 5 pounds of raw materials are needed for each unit, and the estimated cost per pound is $6. Management desires an ending inventory equal to 26% of next month’s materials requirements.
Prepare the direct materials budget for January.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Beginning inventory= 5,460 pounds of raw materials
Production:
January= 4,200 units
February= 6,000 units
5 pounds of raw materials are needed for each unit, and the estimated cost per pound is $6.
Management desires an ending inventory equal to 26% of next month’s materials requirements.
Direct material budget= production + desired ending inventory - beginning inventory
Direct material budget (in pounds):
Production= 4,200*5= 21,000
Desired ending inventory= (6,000*5)*0.26= 7,800
Beginning inventory= (5,460)
Total= 23,340
Total cost= 23,340*6= $140,040
Madrid Company plans to issue 8% bonds with a par value of $4,000,000. The company sells $3,600,000 of the bonds at par on January 1. The remaining $400,000 sells at par on July 1. The bonds pay interest semiannually on June 30 and December 31. 1. Record the entry for the first interest payment on June 30. 2. Record the entry for the July 1 cash sale of bonds.
Answer:
The first interest payment:
Dr interest expense $144,000
Cr cash $144,000
The issuance of the remaining bonds"
Dr cash $400,000
Cr bonds payable $400,000
Explanation:
The first interest paid on the bonds on 30 June is $144,000 ($3,600,000*8%*6/12) which is debited to interest expense account and credited to cash account as outflow of cash from the company.
The cash received from selling the remaining bonds is par value of $400,000 which is debited to cash account and credited to bonds payable account.
Cowboy, Inc., an American corporation that produces cowboy hats contract with a manufacturing plant in France, Beret, Inc. The contract provides that Beret, Inc. will produce the cowboy hats in France to be distributed back in the United States by Cowboy, Inc. The contract does not provide which country’s law will apply if a dispute arises between Cowboy and Beret. Eventually, Cowboy discovers that Beret is not producing the hats under the specifications agreed upon in the contract. Which will American or French law be used in settling the dispute? Why?
Explanation:
When companies from different countries get into a contract, it is quite desirable that they stipulate which country's laws that they will abide by should the need arise.
However, if this is not done, there is still a method of enforcing. When not specifically listed, contract between companies from different countries falls under a branch of Private International law which is International Contract Law which is synonymous with International Sales law.
This law falls under the jurisdiction of the United Nations Convention on Contracts for the International Sale of Goods (CISG) which came into effect in January 1988.
Both France and the United States of America have ratified the law and so Cowboy Hats is free to take legal action within this framework if they so please.
Serial Problem Business Solutions LO P4 Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices are $1,310 per desk unit and $560 per chair. The variable costs are $810 per desk unit and $310 per chair. Fixed costs are $180,000. Required: 1. Compute the selling price per composite unit. 2. Compute the variable costs per composite unit. 3. Compute the break-even point in composite units. 4. Compute the number of units of each product that would be sold at the break-even point.
Answer:
Instructions are below.
Explanation:
Giving the following information:
The selling prices are $1,310 per desk unit and $560 per chair. The variable costs are $810 per desk unit and $310 per chair. Fixed costs are $180,000.
The company sells 3 deks per 2 chairs.
Sales proportion:
Desks= 3/5= 0.6
Chairs= 2/5= 0.4
1) Selling price per composite unit= sales proportion*selling price
Selling price per composite unit= 0.6*1,310 + 0.4*560
Selling price per composite unit= $1,010
2) Variable cost per composite unit= sales proportion*unitary variable cost
Variable cost per composite unit= 0.6*810 + 0.4*310
Variable cost per composite unit= 610
3) Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 180,000/ (1,010 - 610)
Break-even point (units)= 450 units
4) Number of units for each product:
Desks= 0.6*450= 270
Chairs= 0.4*450= 180
Grefrath Corporation is developing direct labor standards. A particular product requires 0.71 direct labor-hours per unit. The allowance for breaks and personal needs is 0.04 direct labor-hours per unit. The allowance for cleanup, machine downtime, and rejects is 0.12 direct labor-hours per unit. The standard direct labor-hours per unit should be: Select one: a. 0.71 b. 0.87 c. 0.67 d. 0.55
Answer:
Direct labor hour per unit= 0.87 hours
Explanation:
Giving the following information:
A particular product requires 0.71 direct labor-hours per unit.
The allowance for breaks and personal needs is 0.04 direct labor-hours per unit. The allowance for cleanup, machine downtime, and rejects is 0.12 direct labor-hours per unit.
The total direct labor hour per unit is the time required to produce one unit.
Direct labor hour per unit= 0.71 + 0.04 + 0.12
Direct labor hour per unit= 0.87 hours
The following financial statements and additional information are reported
IKIBAN INC
Comparative Balance Sheets
June 30, 2017 and 2016
2017 2016
Assets
Cash $ 73,100 $ 68,000
Accounts receivable, net 101,000 75,000
Inventory 87,800 122,500
Prepaid expenses 6,800 10,200
Total current assets 268,700 275,700
Equipment 148,000 139,000
Accum. depreciation-Equipment 39,000 21,000
Total assets $377,700 $393,700
Liabilities and Equity
Accounts payable $49,000 $66,000
Wages payable 8,400 19,800
Income taxes payable 5,800 8,600
Total current liabilities 63,200 94,400
Notes payable (long term) 54,000 84,000
Total liabilities 117,200 178,400
Equity
Common stock, $5 par value 268,000 184,000
Retained earnings 7,500 31,300
Total liabilities and equity $377,700 $393,700
A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired for $81,600 cash. Received cash for the sale of equipment that had cost $72,600, yielding a $4,400 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. All purchases and sales of inventory are on credit
Answer:
The closing cash balance is $ 93,100.00
The missing financial statements and partial cash flow are attached
Explanation:
The cash flow statement is the requirement of this question and hereby attached.
Which of the following is not correct?a. If the inflation rate exceeds the nominal interest rate, then the purchasing power of an interest-earning deposit falls over time.b. If there is deflation, then the purchasing power of an interest-earning deposit rises by more than the nominal interest rate over time.c. The higher the rate of inflation, the smaller the increase in the purchasing power of an interest-earning deposit.d. The purchasing power of an interest-earning deposit can increase or decrease over time, but it cannot stay the same.
Answer:
The options which is NOT correct is C.
Purchasing power does not increase with inrease in the rate of inflation. There is an inverse relationship between inflation and purchasing power of money.
Explanation:
Inflation refers to the overall increase in prices of goods and services and the erosion of the power of the currency to purchase those goods and services. In otherwords, when inflation happens, one requires more dollar bills to purchase same unit of goods or services.
Deflation is the opposite of inflation. It refers to the decrease in the prices of goods and services and is usually accompained by an increase in the purchasing power of the currency.
Nominal interest rate simply put is the interest payable on a loan without considering processing fees, compounding interest payable and the erosion of the value of such money.
Cheers!
Stone Company produces carrying cases for CDs. It has compiled the following information for the month of June: Physical Units Percent Complete for Conversion Beginning work in process 70,000 55% Ending work in process 92,000 70 Stone adds all materials at the beginning of its manufacturing process. During the month, it started 180,000 units. Required: 1. Using the weighted-average method, reconcile the number of physical units. 2. Using the weighted-average method, calculate the number of equivalent units.
Answer:
Required 1.
Reconciling the number of physical units
Inputs
Units in Opening Work In Process = 70,000
Units Started During the Period = 180,000
Totals = 250,000
Outputs
Units in Ending Work In Process = 92,000
Units Completed (Balancing Figure) = 158,000
Totals = 250,000
Required 2.
Direct Materials = 250,000 units, Conversion Costs = 222,400 units
Explanation:
Calculation of the number of equivalent units.
Direct Materials
These are added at beginning of manufacturing and are thus 100% complete for Ending Work In Process Units and Units Completed and Transferred to Finished Goods.
Ending Work In Process Units = 92,000
Transferred to Finished Goods = 158,000
Total = 250,000
Conversion
Are 100% in terms of Units Completed and Transferred to Finished Goods and 70% in terms of Ending Work In Process Units.
Ending Work In Process Units (92,000 × 70%) = 64,400
Transferred to Finished Goods (158,000 × 100%) = 158,000
Total = 222,400
