Answer:
d. Received cash for services to be performed in the future.
Explanation:
This form of biddings can easily be found in a double entry or a cash journal for credit received or cash for services been done or also services performed in the nearest future.
This is used in ledger management to balance and make cash entry and journals a great positive result in checks and balances.
It is also noted that the credit to the income statement for the service revenue gives rise to the net income. This generally increases accumulated money in the course of the business.
A firm sells two products, Regular and Ultra. For every unit of Regular the firm sells, two units of Ultra are sold. The firm's total fixed costs are $1,612,000. Selling prices and cost information for both products follow. The contribution margin per composite unit is:______
Product Unit Sales Price Variable Cost Per Unit
Regular $20 $8
Ultra 24 4
a. 62,000 of A and 31,000 of B.
b. 31,000 of A and 62,000 of B.
c. 10,333 of A and 20,667 of B.
d. 31,000 of A and 31,000 of B.
e. 36,167 of A and 72,333 of B.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Sales proportion:
Regulas= 1/3= 0.33
Ultra= 2/3= 0.67
Fixed costs= $1,612,000.
Product Unit Sales Price Variable Cost Per Unit
Regular $20 $8
Ultra 24 4
To calculate the contribution margin per composite unit, we need to use the following formula:
Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)
weighted average selling price= (0.33*20) + (0.67*24)
weighted average selling price= $22.68
weighted average unitary variable cost= (0.33*8) + (0.67*4)
weighted average unitary variable cost= $5.32
Weighted average contribution margin= 22.68 - 5.32
Weighted average contribution margin= $17.36
Now, we can calculate the break-even point for the company as a whole:
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 1,612,000/17.36= 92,857
Finally, for each product:
Regular= 92,857*0.33= 30,643
Ultra= 92,857*0.67= 62,214
Which of the following is a difference between leased employees and part-time employees? a. Unlike leased employees, part-time employees are usually covered by benefits from the organization. b. Unlike part-time employees, leased employees are regularly expected to work less than 40 hours a week. c. Unlike part-time employees, leased employees provide considerable scheduling flexibility to the organization that hires them. d. Unlike leased employees, part-time employees reduce the labor costs of an organization.
Answer:
D. Unlike leased employees, part-time employees reduce the labor costs of an organization.
Explanation:
Employee leasing is a contractual arrangement where a leasing company, is the official employer. And Employment responsibilities are shared between the leasing company and the business owner.
A part-time employee is a type of worker whose employment carries fewer hours per week than a full-time job. They work in shifts.
Part-time employees reduce the labor costs of an organization. They do not receive certain benefits as full-time employees.
1. The discount rate is the:________. a. lowest interest rate that banks can charge for loans to their most creditworthy customers. b. interest rate at which banks can borrow reserves from the Federal Reserve. c. lowest interest rate that banks can charge for lending reserves to other banks or financial institutions. d. interest rate at which banks can borrow reserves from other banks. 2. If the Fed were to decrease the discount rate, banks will borrow:______. a. more reserves, causing an increase in lending and the money supply. b. fewer reserves, causing an increase in lending and the money supply. c. fewer reserves, causing a decrease in lending and the money supply. d. more reserves, causing a decrease in lending and the money supply.
Answer(1)
b. interest rate at which banks can borrow reserves from the Federal Reserve
Explanation:
The discount rate is known in America as the rate of interest which a central bank charges on its loans and advances to a commercial bank. This loans and advances are from the federal reserve.
Answer (2)
a. more reserves, causing an increase in lending and the money supply
Explanation:
Excess lending from the national reserve due to a lowered discount rate will lead to a reserve supply excess into commercial banks throughout the economy and expands the money supply .
Answer:
Michelle needs to calculate the interest for the length of each loan. Bank A will charge $2430 in interest and Bank B will charge $1980 in interest. She will save by borrowing from Bank B.
Explanation:
Barry is the branch manager of a large toy store. He has been given the responsibility to communicate with, coach, and motivate supervising managers. In this scenario, Barry most likely requires _____ to perform his role efficiently.
Answer:
Human skills
Explanation:
As the branch manager Barry requires human skills to perform his roles well. The human skills can also be referred to as interpersonal skills. These are those skills that would present Barry's ability to interact, work or relate effectively with people.
Human skills would enable Barry to make use of human potential in the company and also motivate the supervising managers for better results
Determine which moral standard of social responsibility the business is observing. Meg's company decided to build an additional factory in a small community. When the community started a protest because of the negative impact the factory would potentially have, Meg's company promised to prevent and pay for any negative impact to the community. It also offers to build a community park to balance out the negative impact the factory might cause.a) Indeterminable b) Moral Minimum Standard c) Profit-Maximizing Moral Standard d) Stakeholder Theory Moral Standard e) Corporate Citizenship Moral Standard
Answer:
e) Corporate Citizenship Moral Standard
Explanation:
Social responsibility is defined as the ethical framework that guides companies and individuals to give back to the environment in which they operate. It is a balance between pursuing economic benefits and protecting the ecosystem.
In this secanrio when the community started a protest because of the negative impact the factory would have, Meg's company promised to prevent and pay for any negative impact to the community. It also offers to build a community park to balance out the negative impact the factory might cause.
The moral used here is corporate citizenship moral standard. Where a company is ameliorating negative effect of its processes and also building a community park for the community
Answer:
The correct answer is: b) Moral Minimum Standard
Explanation:
In the scenario exemplified by the above question, it can be said that Meg's company acted according to a moral minimum standard.
That is, the company was responsible for the negative impacts that it could bring to the small community, acting in accordance with the law and exhibiting ethical behavior, as the company proposed to prevent and pay for any negative impact on the community, as well as to build a community park to balance the negative impact that the plant can cause.
Therefore, this is an ethical standard whose principle is not to cause intentional damage, considered only the minimum necessary to maintain ethical behavior.
Anthony is 17 years of age and attending college in Maine. One day, while skiing he breaks his leg and is taken to the emergency room of the local hospital. When filling out the necessary paperwork, whom should Anthony name as the party responsible for the charges incurred?
Answer:
his parents
Explanation:
Anthony is a minor, so his parents are legally responsible for any costs he may incur. Anthony should name his parents as the party responsible.
Lauer Corporation provided the following information about one of its laptop computers: Date Transaction Number of Units Cost per Unit 1/1 Beginning Inventory 290 $ 990 5/5 Purchase 390 $ 1,090 8/10 Purchase 490 $ 1,190 10/15 Purchase 295 $ 1,240 During the year, Lauer sold 1,225 laptop computers. What was cost of goods sold using the FIFO cost flow assumption
Answer:
Cost of Goods sold under FIFO is $1,363,500
Explanation:
The FIFO or First In First Out method is a method for closing inventory or Cost of goods sold valuation. It values the inventory based on the assumption that the units that are purchased first will be the ones to be sold first and the closing inventory consists of the most recently purchased inventory which is not sold yet.
The total units that are available for sale for the month are,
Total units available for sale = 290 + 390 + 490 + 295 = 1465 laptops
The units sold are 1225.
The closing inventory is thus = 1465 - 1225 = 240 laptops
Units sold from 10/15 Purchase = 295 - 240 = 55 units
As we are using FIFO, the 240 laptops left as closing inventory will be from the last purchase made on 10/15. Thus, the cost of goods sold will consist of the cost of,
Cost of goods sold
Beginning inventory (290 * 990) 287100
5/5 Purchase (390 * 1090) 425100
8/10 Purchase (490 * 1190) 583100
10/15 Purchase (55 * 1240) 68200
Total 1,363,500
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years.
Year 1 2 3 4 5
FCF($million) 52.1 68.6 78.3 74.4 81.1
After then, the free cash flows are expected to grow at the industry average of 4% per year. Using the discounted free cash flow model and a weighted average cost of capital of 14%:
A. Estimate the enterprise value of Heavy Metal.
B. If Heavy Metal has no excess cash, debt of $304 million, and 41 million shares outstanding, estimate its share price.
Answer:
Enterprise value of Heavy Metal= $1,080.766
Share price = $18.945 per unit
Explanation:
The value of a firm is the present value of the free cash flow discounted at the weighted average cost of capital
Year PV
1 52.1 × 1.14^(-1) = 45.70175439
2 68.6 × 1.14^(-2) = 52.40073869
3 78.6 × 1.14^(-3) = 53.05276117
4 74.4× 1.14^(-4) = 44.05077264
5 81.1 × 1.14^(-5) = 42.12079868
Year and beyond
81.1 × 1.04/(0.14-0.04) = 843.44
Total value = 45.70+ 52.40+53.052 + 44.050 +42.120+ 843.44 = 1080.766826
Enterprise value of Heavy Metal= $1,080.766
Share price = Total value - Debt value / number of shares
= (1,080.766 - 304 )/ 41 million units= $18.945 per unit
Share price = $18.945 per unit
During the planning process, if there is a gap between future desired sales and projected sales, corporate management will need to develop or acquire new businesses to fill it. Identify and describe the three strategies that can be used to fill the strategic gap.
Answer:
They are:
1) Intensive growth
2) Integrative growth
3) Diversification growth
Explanation:
1. Intensive growth:
This involves identifying further growth opportunities that are available within existing businesses. It identifies new customer groups for growth within current businesses, develop additional distribution channels or selling in new markets such as those in other countries. If this is insufficient the company may look into Integrative growth.
2. Integrative growth:
The second involves involves backward, forward, or horizontal integration. Horizontal integration involves buying smaller competitors.
Backward integration reaches into value chain to get suppliers. Forward involves buying distribution channels in the value chain closest to the customer. Integrative growth identifies opportunities to acquire businesses that are in relation to current businesses.
3. Diversification:
Diversification growth is to identify opportunities so as to add attractive unrelated businesses
Balance Sheet
Assets:
Cash and marketable $600,000
securities
Accounts receivable 900,000
Inventories 1,500,000
Prepaid expenses 75,000
Total current assets $3,075,000
Fixed assets 8,000,000
Less: accum. depr. (2,075,000)
Net fixed assets $5,925,000
Total assets $9,000,000
Liabilities:
Accounts payable $800,000
Notes payable 700,000
Accrued taxes 50,000
Total current liabilities $1,550,000
Long-term debt 2,500,000
Owner's equity (1 million 4,950,000
shares of common stock outstanding)
Total liabilities and $9,000,000
owner's equity
Net sales (all credit) $10,000,000
Less: Cost of goods sold (3,000,000)
Selling and (2,000,000)
administrative expense
Depreciation expense (250,000)
Interest expense (200,000)
Earnings before taxes 4,550,000
Income taxes (1,820,000)
Net income $2,730,000
a. Calculate the current ratio
b. Calculate the average collection period.
c. Calculate the debt ratio.
d. Calculate the total asset turnover ratio.
e. Calculate the operating profit margin
f. Calculate the inventory turnover ratio
Answer:
a. current ratio = 1.98
b. average collection period = 32.85 days
c. debt ratio = 35,56%
d. total asset turnover ratio = 1.11 times
e. operating profit margin = 47,50%
f. inventory turnover ratio = 2 times
Explanation:
a. current ratio
Current ratio = Current Assets / Current Liabilities
= 3,075,000 / 1,550,000
= 1.98
b. average collection period.
Average collection period = Accounts Receivable / (Sales / 365)
= 900,000 / (10,000,000 / 365)
= 32.85 days
c. debt ratio.
Debt ratio = Interest bearing debt / Total Assets × 100
= (700,000+2,500,000)/ 9,000,000 × 100
= 35,56%
d. total asset turnover ratio.
Total asset turnover ratio = Sales / Total Assets
= 10,000,000 / 9,000,000
= 1.11 times
e. operating profit margin
Operating profit margin = Operating Profit / Sales × 100
= (4,550,000+200,000) / 10,000,000 × 100
= 47,50%
f. inventory turnover ratio
Inventory turnover ratio = Cost of Sales / Inventory
= 3,000,000 / 1,500,000
= 2 times
Henry Ford invented mass production. In doing so, he perfected the assembly line concept in which each worker does only one job or a handful of jobs and is given little other responsibility. This worked well for 70 years; however, it became apparent in the 1990s that an increasing number of U.S. companies could not produce a high-quality product by sticking to the assembly line model. What has changed?
The correct answer to this open question is the following.
Although there are no options provided or another reference, we can say that what has changed from that old conception to produce goods is the customization of products and attention to detail to differentiate the product from the competition and the more efficient production line with the use of robots and modern technology. That is what is making the difference today, in a competitive market full of companies that try to capture the loyalty of the consumer.
No more production line in the old way. Today, companies are asking consumers what they want and how they want it and are making every single effort possible to provide the exact product.
The company's adjusted trial balance as follows includes the following accounts balances:
Cash: $15,000
Equipment: $85,000
Accumulated Depreciation: $25,000
Accounts Payable: $10,000
Retained earnings: $59,000
Dividends: $2,000
Fees Earned: $56,000
Depreciation Expense: $25,000
Salaries Expense: $23,000.
All accounts have normal balances.
Required:
Prepare closing entry.
Answer:
Closing Journal Entries:
1. Debit Fees Earned $56,000
Credit Income Statement $56,000
To close the account for the period.
2. Debit Income Statement $25,000
Credit Depreciation Expense $25,000
To close the account for the period.
3. Debit Income Statement $23,000
Credit Salaries Expense $23,000
To close the account for the period.
4. Debit Income Statement (Retained Earnings) $2,000
Credit Dividends $2,000
To close the account for the period.
Explanation:
Closing entries are journal entries that are made to close temporary (periodic) accounts, revenue and expenses to the Income Statement. This paves the way for only permanent accounts to remain for the Balance Sheet. Temporary accounts are not carried forward to the next period unlike permanent accounts.
Closing entries transfer all revenue and expense accounts at the end of an accounting period to an income summary account, for the purpose of calculating the financial performance results (called gross profit and net income or loss) for the period.
RKO Company sold bonds with a face value of $890,000 for $955,501. The bonds have a coupon rate of 7 percent, mature in 10 years, and pay interest annually every December 31. All of the bonds were sold on January 1 of this year. Record the sale of the bonds on January 1 and the payment of interest on December 31 of this year, without the use of a premium account. RKO uses the effective-interest amortization method. Assume an annual market rate of interest of 6 percent.
Answer:
June 1
Dr cash $955,501
Cr Discount on bond payable $65,501
Cr Bond payable $890,000
June 30
Dr Interest expense $26,700
Dr Discount on bonds 4,450
Cr Cash $31,150
Explanation:
RKO Company Journal entry
June 1
Dr cash $955,501
Cr Discount on bond payable $65,501
($955,501-$890,000)
Cr Bond payable $890,000
June 30
Dr Interest expense $26,700
($890,000×6%×1/2)
Dr Discount on bonds 4,450
Cr Cash $31,150
($890,000×7%×1/2)
Which of the following statements about portfolio diversifications are correct? Check all that apply. The risk of a portfolio declines as the number of stocks in the portfolio increases. By adding enough partially correlated stocks, risk can be completely eliminated. The higher the stocks’ correlation coefficients, the lower the portfolio’s risk. Stocks with perfectly negatively correlated returns do not exist.
Answer:
The risk of a portfolio declines as the number of stocks in the portfolio increases.
Explanation:
In simple words, diversification refers to the benefit of lesser risk that a manager gets by adding negatively or less correlates securities in the portfolio.
However, it is a fact that risk can only be minimized and cannot be eliminated completely. The risk that is specific to the business is called systematic risk and due to its unpredictability it cannot be diversified away.
Thus, from the above we can conclude that the correct option is A.
1B) Akwamba made this statement ‘organisations cannot be successful if managers fail to pay attention to the forces in the external environment’. Do you agree or not? Justify using practical examples (9 marks)
Answer:
I agree
Explanation:
One needs to pay attention
example firms based on technology will be at risk when other competitors upgrade.
Prepare a double spaced memo to the company president, John Smith (who has an engineering background but no financial or accounting training) recommending the best choice in the following scenario:
Smith Construction Inc. has just purchased several major pieces of road building equipment. Because the purchase price is so large, the supplier is giving Smith the option of choosing among three payment plans:
Option 1 - $600,000 immediately in cash;
Option 2 - $200,000 down payment now and $65,000 per year for each of the next 12 years beginning at the end of the current year;
Option 3 - $90,000 at the end of each of the next 14 years.
Please assume that the cost of capital for Smith Construction is 12%.
Answer:
The best option is the third option because it has the lowest present value
Explanation:
The best choice of the options can be found by calculating the present value of the options.
Present value can be calculated using a financial calculator.
The present value of the first option would be $600,000
Present value of the second option
Cash flow in year 0 = $200,000
Cash flow each year from year 1 to 12 = $65,000
I = 12%
Present value = $602,634.33
Present value of the third option
Cash flow each year from year 0 to 13 = $90,000
I = 12%
Present value = $596,535.14
To find the PV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Benaflek Co. purchased some equipment 3 years ago. The company's required rate of return is 12%, and the net present value of the project was $(1,800). Annual cost savings were: $20,000 for year 1; $16,000 for year 2; and $12,000 for year 3. The amount of the initial investment wasYear Present Value PV of an Annuity of 1 at 12% of 1 at 12%1 .893 .893 2 .797 1.6903 .712 2.402A. $40,232.B. $37,356.C. $40,956.D. $36,632.
Answer:
The correct option is C,$40,956
Explanation:
NPV=present value annual cost savings-initial investment
NPV is -$1800
present value of annual savings=$20,000/(1+12%)^1+$16,000/(1+12%)^2+$12,000/(1+12%)^3=$39,153.61
-$1800= $39,153.61 -initial investment
initial investment=$ 39,153.61+$1800=$40953.61
The correct option is the option C,$40,956 which is closest to $40953.61 ,the difference arose from rounding errors when the discount factors were rounded to to three decimal places instead of using the exact figures
Eastwood Cake Factory sells chocolate cakes, birthday cakes, and specialty cakes. The factory is experiencing a bottleneck and is trying to determine which cake is most profitable. Even though Eastwood may have to limit its orders, it is concerned about customer service and satisfaction.
Chocolate Cake Birthday Cake Specialty Cake
Sales price $20.00 $45.00 $60.00
Variable cost per cake $5.00 $12.00 $20.00
Hours needed to bake, frost, and decorate 1 hour 2.5 hours 2 hours
Required:
a. Calculate the contribution margin per hour per cake.
b. Determine which cakes the company should try to sell more of first, second, and then last.
Answer:
a.
Chocolate Birthday Specialty
Cake Cake Cake
Contribution per hour $15 / hour $13.2 / hour $20 per hur
b.
Chocolate Birthday Specialty
Cake Cake Cake
Contribution per hour Second Third First
Explanation:
a.
Contribution margin is the net of sales price and variable cost of an product.
Contribution margin per hour is the rate of contribution margin earned by a product in an hour.
Chocolate Birthday Specialty
Cake Cake Cake
Sales price $20.00 $45.00 $60.00
Variable cost per cake $5.00 $12.00 $20.00
Contribution Margin $15.00 $33.00 $40.00
Hours to bake, frost & decorate 1 hour 2.5 hours 2 hours
Contribution per hour $15 / hour $13.2 / hour $20 per hur
(Contribution / Numbers of hours)
b.
Company should try to sell the cask with highest contribution per hour rate.
In this given question Speciality cake have highest contribution per hour rate of $20. So, company should sell it more.
The should should try to sell cholcolate cake at second place and birthday cake in third place.
Exercise 06-2 Computing unit and inventory costs under variable costing LO P1 Trio Company reports the following information for the current year, which is its first year of operations. Assume instead that Trio Company uses variable costing. Direct materials $15 per unit Direct labor $16 per unit Overhead costs for the year Variable overhead $4 per unit Fixed overhead $160,000 per year Units produced this year 20,000 units Units sold this year 14,000 units Ending finished goods inventory in units 6,000 units1. Compute the product cost per unit using variable costing. Cost per unit of finished goods using: Variable costing Cost per unit of finished goods 2. Determine the cost of ending finished goods inventory
Answer:
Trio Company
1. Using Variable Costing:
a. Product Cost per unit = $35 (see below)
b. Cost per unit of finished goods = $35 (see below)
2. Using variable cost, the cost of ending finished goods inventory = 6,000 * $35 = $210,000
b. Using total cost, the cost of ending finished goods inventory =
6,000 * $43 = $258,000
Explanation:
a) Calculation of Costs:
Cost per unit Total Costs
Direct materials $15 $300,000
Direct labor $16 $320,000
Variable overhead $4 $80,000
Total Variable $35 $700,000
Fixed Cost $8 $160,000
Total Cost $43 $860,000
b) Cost of Goods sold 14,000 x $43 = $602,000 using total cost per unit.
c) Cost of Goods sold 14,000 x $35 = $490,000 using variable cost per unit.
d) Variable costing is a method of assigning only variable costs to a product while the fixed overheads are treated as period expenses.
Alvarado Company sells a machine for $7,400 with a 12-month warranty agreement that requires the company to replace all defective parts and to provide the repair labor at no cost to the customers. With sales being made evenly throughout the year, the company sells 600 machines in 2017 (warranty expense is incurred half in 2017 and half in 2018). As a result of product testing, the company estimates that the total warranty cost is $390 per machine ($170 parts and $220 labor).
Required:
Assuming that actual warranty costs are incurred exactly as estimated, what journal entries would be made relative to the following facts?
a. Sale of machinery and warranty expense incurred in 2017.
b. Warranty accrual on December 31, 2017.
c. Warranty costs incurred in 2018.
d. What amount, if any, is disclosed in the balance sheet as a liability for future warranty costs as of December 31, 2017?
Answer:
a.
Sale of machinery
Cash $4,440,000 (debit)
Revenue $4,440,000 (credit)
When Warranty expense incurrs 2017
Warranty Provision $117,000 (debit)
Parts Inventory $51,000 (credit)
Salaries and Wages $66,000 (credit)
b.
Warranty expense recognised 2017
Warranty Expense $117,000 (debit)
Warranty Provision $117,000 (credit)
c.
When Warranty expense incurrs 2018
Warranty Provision $117,000 (debit)
Parts Inventory $51,000 (credit)
Salaries and Wages $66,000 (credit)
d.
No future warranty costs are disclosed as of December 31, 2017
Explanation:
Sale of machinery and warranty expense incurred in 2017
Sale of machinery
Cash $4,440,000 (debit)
Revenue $4,440,000 (credit)
Being Sale of Machine in ordinary course of business
Revenue Calculation = $7,400 × 600 machines
= $4,440,000
Warranty expense recognised 2017
Warranty Expense $117,000 (debit)
Warranty Provision $117,000 (credit)
Being Recognition of Warranty Expense and Provision
Warranty Expense Calculation = $390 × 600 machines
= $234,000
Warranty Expense Calculation 2017 = $234,000 / 2
= $117,000
When Warranty expense incurrs 2017
Warranty Provision $117,000 (debit)
Parts Inventory $51,000 (credit)
Salaries and Wages $66,000 (credit)
Warranty expense recognised 2018
Warranty Expense $117,000 (debit)
Warranty Provision $117,000 (credit)
Being Recognition of Warranty Expense and Provision
Warranty Expense Calculation = $390 × 600 machines
= $234,000
Warranty Expense Calculation 2018 = $234,000 / 2
= $117,000
When Warranty expense incurrs 2018
Warranty Provision $117,000 (debit)
Parts Inventory $51,000 (credit)
Salaries and Wages $66,000 (credit)
Disclosure
The Provision for Warranty is already utilised in full when actual warranty costs are incurred exactly as estimated, thus No future warranty costs as of December 31, 2017 are disclosed
Elliott Engines Inc. produces three products—pistons, valves, and cams—for the heavy equipment industry. Elliott Engines has a very simple production process and product line and uses a single plantwide factory overhead rate to allocate overhead to the three products. The factory overhead rate is based on direct labor hours. Information about the three products for 20Y2 is as follows: Budgeted Volume (Units) Direct Labor Hours Per Unit Price Per Unit Direct Materials Per UnitPistons 5000 0.50 $45 $8 Valves 12,500 0.30 17 3Cams 1,500 0.20 60 40 The estimated direct labor rate is s30 per direct labor hour Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Elliott Engines is $163,750 If required, round all per unit answers to the nearest cent a. Determine the plantwide factory overhead rate. per dih b. Determine the factory overhead and direct labor cost per unit for each product.
Answer:
Kindly see attacked picture
Explanation:
Elliott Engines Inc. produces three products—pistons, valves, and cams—for the heavy equipment industry. Elliott Engines has a very simple production process and product line and uses a single plantwide factory overhead rate to allocate overhead to the three products. The factory overhead rate is based on direct labor hours. Information about the three products for 20Y2 is as follows: Budgeted Volume (Units) Direct Labor Hours Per Unit Price Per Unit Direct Materials Per UnitPistons 5000 0.50 $45 $8 Valves 12,500 0.30 17 3Cams 1,500 0.20 60 40 The estimated direct labor rate is s30 per direct labor hour Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Elliott Engines is $163,750 If required, round all per unit answers to the nearest cent a. Determine the plantwide factory overhead rate. per dih b. Determine the factory overhead and direct labor cost per unit for each product.
Kindly check attached picture for solution
Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 60,000 shares of cumulative preferred 2% stock, $60 par and 300,000 shares of $20 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $51,000; second year, $105,000; third year, $81,000; fourth year, $120,000. Determine the dividends per share on each class of stock for each of the four years. Round your answers to two decimal places. If no dividends are paid in a given year, enter "0".
Answer:
Year 1: Dividend paid to cumulative preferred stock = $51,000; Dividend paid to common stock = 0.
Year 2: Dividend paid to cumulative preferred stock = $93,000; Dividend paid to common stock = $12,000.
Year 3: Dividend paid to cumulative preferred stock = $72,000; Dividend paid common stock = $9,000.
Year 4: Dividend paid to cumulative preferred stock = $72,000; Dividend paid common stock = $48,000.
Explanation:
Year 1
Dividend distributed = $51,000
Cumulative preferred stock dividend payable = 60,000 * $60 * 2% = $72,000
Dividend paid to cumulative preferred stock = $51,000
Carried forward cumulative preferred stock dividend = $72,000 - $51,000 = $21,000
Dividend paid to common stock = 0
Year 2
Dividend distributed = $105,000
Year 2 cumulative preferred stock dividend due = 60,000 * $60 * 2% = $72,000
Cumulative preferred stock dividend payable = Due in year 2 + Carried down from year 1 = $72,000 + $21,000 = $93,000
Dividend paid to cumulative preferred stock = $93,000
Dividend paid to common stock = $105,000 - $93,000 = $12,000
Year 3
Dividend distributed = $81,000
Cumulative preferred stock dividend payable = 60,000 * $60 * 2% = $72,000
Dividend paid to cumulative preferred stock = $72,000
Dividend paid common stock = $81,000 - $72,000 = $9,000
Year 4
Dividend distributed = $120,000
Cumulative preferred stock dividend payable = 60,000 * $60 * 2% = $72,000
Dividend paid to cumulative preferred stock = $72,000
Dividend paid common stock = $120,000 - $72,000 = $48,000
Compute cost of goods sold, assuming Waterway uses: (Round average cost per unit to 4 decimal places, e.g. 2.7631 and final answers to 0 decimal places, e.g. 6,548.) Cost of goods sold (a) Periodic system, FIFO cost flow $ (b) Perpetual system, FIFO cost flow $ (c) Periodic system, LIFO cost flow $ (d) Perpetual system, LIFO cost flow $ (e) Periodic system, weighted-average cost flow $ (f) Perpetual system, moving-average cost flow
Answer:
The average cost per unit is = 24.7917
The Periodic FIFO =163000
The Perpetual FIFO=163000
The Periodic FIFO = 195600
The Perpetual LIFO =186800
The Periodic weighted average cost flow= 176021
The Perpetual moving average cost flow= 169669
Explanation:
Solution
Given that:
The first step to take is to compute average cost per unit
Unit Unit cost Total cost
Beginning inventory 2200 16 35200
Purchase 1 3200 24 76800
Purchase 2 4200 30 126000
The Total 9600 238000
Hence,
The Average cost per unit = 238000/9600 = 24.7917 per unit
Now, we calculate for the cost of goods sold which is given as :
The Periodic FIFO (35200+76800+1700*30) =163000
The Perpetual FIFO=163000
The Periodic LIFO (4200*30+2900*24)=195600
The Perpetual LIFO (76800+500*16+3400*30)=186800
The Periodic average (7100*24.7917)= 176021
The Perpetual (3700*20.7407+3400*27.3320)= 169669
Note: Kindly find an attached document of the complete question for this solution.
Question 8 (1 point)
is a classless social system in which property is collectively owned and income
from labor is equally and indiscriminately divided among members.
Socialism
Capitalism
Anarchism
Fascism
Answer:
Socialism; a sociaty that is regulated by the community as a whole
If your company’s product is mobile phones, do you think it would make better strategic sense to employ a multidomestic strategy, a transnational strategy, or a global strategy? Multiple Choice A transnational strategy would be appropriate since the same strategic theme could be employed, but country-to-country customization is necessary to accommodate consumer preferences in mobile phone features. A global strategy makes best strategic sense since country-to-country customization to fit local market conditions is necessary. A global strategy would be appropriate since most mobile phones are constructed to work globally and buyer needs across the world are relatively universal. A multidomestic strategy is called for since mobile phone features must be tailored to the specific market conditions and buyer preferences in each country market. A transnational strategy would make better strategic sense since it would be difficult to employ essentially the same strategic theme in all country markets.
Answer:
The correct answer is the third option: A global strategy would be appropiate since most mobile phones are constructed to work globally and buyer needs across the world are relatively universal.
Explanation:
To begin with, in order to understand that using a global strategy is better and more suitable for the company first we need to understand that the company is working in the industry of mobile phones and therefore that is makes great sense to employ a global strategy that is focus on launching the products to the whole world or at least to the greater amount of countries that the company can because when it comes to mobile phones the needs of the consumers in every part tend to be the same and therefore it would no need much customization and the company will be able to release their product globally.
Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS At the beginning of March, Mendez Company had two jobs in process, Job 86 and Job 87, with the following accumulated cost information: Job 86 Job 87 Direct materials $4,800 $1,600 Direct labor 1,200 3,000 Applied overhead 888 2,220 Balance, March 1 $6,888 $6,820 During March, two more jobs (88 and 89) were started. The following direct materials and direct labor costs were added to the four jobs during the month of March: Job 86 Job 87 Job 88 Job 89 Direct materials $3,000 $7,000 $2,100 $1,500 Direct labor 800 6,000 900 500 At the end of March, Jobs 86, 87, and 89 were completed. Only Job 87 was sold. On March 1, the balance in Finished Goods was zero.
Answer and Explanation:
1. The computation of overhead rate based on direct labor cost is shown below:-
Overhead rate = Overhead applied × 100 ÷ Direct labor cost
= 888 × 100 ÷ 1,200
= 74%
2. The Preparation of job-order cost sheet for the four jobs is shown below:
Particulars Job 86 Job 87 Job 88 Job 89
Beginning balance $6,888 $6,820
Direct materials $3,000 $7,000 $2,100 $1,500
Direct labor $800 $6,000 $900 $500
Applied overhead
is 74% of direct labor $592 $4,440 $666 $370
Total $11,280 $24,260 $3,666 $2,370
3. The computation of ending balances of Work in Process and Finished Goods is shown below:-
Work in process of Job 88 = $3,666
Finished goods = Total of Job 86 + Total of Job 89
= $11,280 + $2,370
= $13,650
4. The computation of the Cost of Goods Sold for March is shown below:-
Cost of goods sold is
= Job 87
= $24,260
Capital One produces a single product, which it sells for $8.00 per unit. Variable costs per unit equal $3.20. The company expects short-term fixed costs to be $7,200 for the coming month, at the projected sales level of 20,000 units. Management is considering several alternative actions designed to improve operating results. In conjunction with this, they have created a profit-planning (that is, a CVP) model, which can be used to evaluate different scenarios. What is Capital One's current break-even point in terms of number of units for the month? a) 1,500 units. b) 2,250 units. c) 4,000 units d) 3,330 units.
Answer:
Capital One's current break-even point in terms of number of units for the month is 1500 units
Explanation:
Break-even point in terms of number of units is the sales units required such that the company makes neither gain nor loss
break-even point in sales units=fixed costs/contribution margin per unit
fixed costs is $7,200
contribution margin=sales price per unit-variable cost per unit
sales price per unit is $8
variable cost per unit is $3.20
contribution margin=$8-$3.20=$4.80
break-even point=$7,200/$4.80=1,500 units
The correct option is A ,1500 units
You graduate and get a $10,000 check from your grandparents. You decide to save it toward a down payment on a house. You invest it earning 10% per year and you think you will need to have $20,000 saved for the down payment. How long will it be before the $10,000 has grown to $20,000?
The predetermined manufacturing overhead rate is $10.00 per direct labor hour ($16.00 ÷ 1.6). It was computed from a master manufacturing overhead budget based on normal production of 8,000 direct labor hours (5,000 units) for the month. The master budget showed total variable costs of $60,000 ($7.50 per hour) and total fixed overhead costs of $20,000 ($2.50 per hour). The actual costs for October in producing 4,800 units were as follows.
Direct materials (5,100 pounds) $ 36,720
Direct labor (7,400 hours) 92,500
Variable overhead 59,700
Fixed overhead 21,000
Total manufacturing costs $209,920
The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.
a. Compute all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.)
b. Compute the total overhead variance.
Suppose you have $200,000 in a bank term account. You earn 5% interest per
annum from this account.
You anticipate that the inflation rate will be 4% during the year. However, the
actual inflation rate for the year is 6%.
Calculate the impact of inflation on the bank term deposit you have and
examine the effects of inflation in your city of residence with attention to food
and accommodation expenses.
Answer:
Kindly check explanation
Explanation:
Account balance or principal = $200,000
Interest rate per annum = 5% = 0.05
Actual inflation rate for the year = 6% = 0.06
Period = 1 year
Amount at the end of one year:
Principal × ( period + interest rate)
$200,000 × ( 1 + 0.05)
$200,000 × (1.05) = $210,000
With anticipated inflation rate of 4% :
$200,000 × ( 1 + 0.04)
$200,000 × (1.04) = $208,000
Purchasing power = $208,000
At this rate of inflation, $208,000 will buy us what $200,000 can buy today.
Excess amount = $210,000 - $208,000 = $2000
$2000 will be earned if the principal is placed in bank.
With actual inflation rate of 6% :
$200,000 × ( 1 + 0.06)
$200,000 × (1.06) = $212,000
Purchasing power = $212,000
With inflation rate of 6%, $200,000 today will be equivalent to $212,000 after one year and as such will be required to purchase the same items $200,000 can today.
Deficit amount = $210,000 - $212,000 = $(2000) deficit
