Answer:
4.0 times
Explanation:
Given that,
2016:
Accounts receivables = $400,000
Inventory = 320,000
Net credit sales = 1,400,000
Cost of goods sold = 1,060,000
Net income = 170,000
2017:
Accounts receivables = $360,000
Inventory = 280,000
Net credit sales = 3,000,000
Cost of goods sold = 1,200,000
Net income = 300,000
Inventory turnover ratio refers to the ratio between the cost of goods sold and average inventory.
Average inventory:
= (Beginning inventory + Ending inventory) / 2
= ($320,000 + $280,000) / 2
= $300,000
Therefore, the inventory turnover ratio for 2017 is as follows:
= Cost of goods sold / Average inventory
= 1,200,000 / 300,000
= 4.0 times
Shipments of product X from a plant to a wholesaler are made in lots of 600 units. The wholesaler's average demand for product X is 150 units per week. Lead time from plant to wholesaler is 4 weeks. The wholesaler pays for the shipments when they leave the plant. What is the total of the wholesaler's cycle inventory and pipeline inventory?
Answer:
The total of the wholesaler's cycle inventory and pipeline inventory is 900 units.
Explanation:
In order to calculate the total of the wholesaler's cycle inventory and pipeline inventory we would have to make the following calculations:
Cycle inventory=lot size/2 = 600 / 2
Cycle inventory= 300 units
Pipeline inventory=leadtime*average demand=4*150
Pipeline inventory=600 units.
Therefore, Total Cycle + Pipeline inventory = 300 + 600
Total Cycle + Pipeline inventory =900 units
The total of the wholesaler's cycle inventory and pipeline inventory is 900 units.
Dexter Industries purchased packaging equipment on January 8 for $135,000. The equipment was expected to have a useful life of three years, or 27,000 operating hours, and a residual value of $5,400. The equipment was used for 10,800 hours during Year 1, 8,100 hours in Year 2, and 8,100 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. Round the final answers for each year to the nearest whole dollar.
Answer:
Straight line depreciation method : $43,200, $43,200, $43,200
Unit of activity deprecation method = $51,840, $38,880, $38,880
Double declining method = $90,000, $30,000, $10,000
Total depreciation expense
Straight line depreciation and unit of activity method = $129,600
Double declining method = $130,000
Explanation:
Depreciation is a method used in expensing the cost of an asset.
the straight-line method = (Cost of asset - Salvage value) / useful life
( $135,000 - $5,400) / 3 = $43,200
The straight line depreciation method allocates the same deprecation expense for each year of the useful life of the asset. So, the depreciation expense for the 3 years is $43,200.
Total depreciation expense = $43,200 × 3 = $129,600
the units-of-activity method =( hours used in year / total hours of the machine) x (Cost of asset - Salvage value)
Deprecation expense in the first year =
( $135,000 - $5,400) × (10,800 / 27,000) =
$129,600 × 0.4 = $51,840
Deprecation expense in the second year
( $135,000 - $5,400) × (8,100 / 27,000) = $129,600 × 0.3 = $38,880
Deprecation expense in the third year
( $135,000 - $5,400) × (8,100 / 27,000) = $129,600 × 0.3 = $38,880
Total depreciation expense = $129,600
Double declining method = depreciation factor × cost of the asset
Depreciation factor = 2 x (1/useful life)
Deprecation factor = 2 / 3 = 0.666667
Depreciation in the first year =
0.666667 x $135,000 = $90,000
Book value = $135,000 - $90,000 = $45,000
Deprecation expense in the second year =
0.666667 x $45,000 = $30,000
Book value = $45,000 - $30,000 = $15,000
Deprecation expense in the third year =
0.666667 x $15,000 = $10,000
Total depreciation expense = $130,000
I hope my answer helps you
Super Saver Groceries purchased store equipment for $44,500. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $4,500. During the 10-year period, the company expects to use the equipment for a total of 10,000 hours. Super Saver used the equipment for 1,400 hours the first year.Required:Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.)1. Straight-line.2. Double-declining-balance.3. Activity-based.
Answer:
1) Using straight line method , depreciation for first year is $4,000
2) Using double declining balance , depreciation for first year is $8,900
3) Using activity based method, depreciation for first year is $5,600
Explanation:
Given:
Cost = $44,500
Useful life = 10 years
Salvage value = $4,500
Useful life in hours = 10,000 hours
Super Saver used the equipment for 1,400 hours the first year.
1) Straight line method
Depreciation for first year = (cost - salvage value) ÷ useful life
= $(44,500 - 4,500) ÷ 10
= $4,000 per year
2) Double declining balance
Depreciation rate = (100 ÷ useful life) × 2
= (100 ÷ 10) × 2
= 20%
Depreciation for first year = $44,500 × 20%
= $8,900
3) Activity based
Rate = cost - salvage value ÷ useful life in hours
= ($44,500 - $4,500) ÷ 10,000
= 4 per hour
Depreciation for first year = 1,400 × 4
= $5,600
Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded. Assume Wright Services began the year with the following balances: Cash, $59,000; Accounts receivable, $11,800; and Common stock, $70,800. Jan. 1 Kay Wright invested $21,800 cash in the company in exchange for common stock. Jan. 2 The company provided services to a client and immediately received $6,300 cash. Jan. 3 The company received $11,800 cash from a client in payment for services to be provided next year. Jan. 4 The company received $7,100 cash from a client in partial payment of accounts receivable. Jan. 5 The company borrowed $14,000 cash from the bank by signing a note payable.
Answer:
Jan. 1
Cash $21,800 (debit)
Common Stock $21,800 (credit)
Effect : Assets = Increase $21,800, Equity = Increase $21,800, Liabilities = No Effect
Jan. 2
Cash $6,300 (debit)
Service Revenue $6,300 (credit)
Effect : Assets = Increase $6,300, Equity = Increase $6,300, Liabilities = No Effect
Jan. 3
Cash $11,800 (debit)
Deferred Revenue $11,800 (credit)
Effect : Assets = Increase $11,800, Equity = No Effect, Liabilities = Increase $11,800
Jan. 4
Cash $7,100 (debit)
Trade Payable $7,100 (credit)
Effect : Assets = Increase $7,100, Equity = No Effect, Liabilities = Decrease $7,100
Jan. 5
Cash $14,000 (debit)
Trade Payable $7,100 (credit)
Effect : Assets = Increase $14,000, Equity = No Effect, Liabilities = Increase $14,000
Explanation:
The following items will appear in Balance Sheet :
AssetsLiabilityEquityThe following items will appear in Income Statement :
RevenueIncomeExpensesThe Following Items will Appear in Statement of Cash flow :
Common StocksConsider two bonds, a 3-year bond paying an annual coupon of 5.90% and a 10-year bond also with an annual coupon of 5.90%. Both currently sell at a face value of $1,000. Now suppose interest rates rise to 9%. a. What is the new price of the 3-year bonds
Answer:
First bond new price= $921.53
Second bond new price =$801.05
Explanation:
a. Face value= future value= $1,000
Coupon rate= 5.90%
Coupon payment= 0.0590*1,000= 59
Time= 3 years
Yield to maturity= 9%
Enter the below in a financial calculator to calculate the present value of the bond:
FV= 1,000
PMT= 59
N= 3
I/Y= 9
The value obtained is 921.53.
Therefore, the new price of the bond is $921.53.
b. Face value= future value= $1,000
Coupon rate= 5.90%
Coupon payment= 0.0590*1,000= 59
Time= 10 years
Yield to maturity= 9%
Enter the below in a financial calculator to calculate the present value of the bond:
FV= 1,000
PMT= 59
N= 10
Interest rate per annum= 9
The value obtained is 801.05.
Therefore, the new price of the bond is $801.05.
All of the following are true regarding ethics except: Multiple Choice Ethics are beliefs that distinguish right from wrong. Ethics rules are often set for CPAs. Ethics do not affect the operations or outcome of a company. Are critical in accounting. Ethics can be difficult to apply.
Answer:
Ethics do not affect the operations or outcome of a company.
Explanation:
The statement above is wrong. Ethics do affect the operations or outcome for a company. A lack of ethics can even bring down a company.
For example, unethical accountants in a company could report the wrong financial statements. Financial statements are like the diagnosis for a company, if they are wrong, wrong decisions will be taken, and those wrong decisions could bring down the company.
Organizations often have different kinds of rules and regulations.The false statement regarding ethics is that Ethics do affect the operations or outcome of a company.
Firms often have ethics that are used in the running of their business. Ethics can also be called moral philosophy. It is commonly known as that which is morally good and bad and that which is morally right and wrong.
It is often used in any firm, system or theory of moral values or principles. It influences the day to day running of a frim/business as the business is build based on the ethics of that organization.
Learn more about Ethics from
https://brainly.com/question/13969108
When using capital rationing, unfunded proposals a.may be reconsidered if funds later become available. b.are discarded for purposes of decision making for all future plans. c.are always considered to be unacceptable. d.None of these choices are correct.
Answer:
A) may be reconsidered if funds later become available.
Explanation:
Capital rationing is a strategy used by businesses (firms, companies, organisations, investors etc) in restricting the number of investments or projects that a company can presently undertake. The projects chosen are those that have the greatest potential to bring in the highest marginal profit to the business. In this strategy, companies prioritise and delve into projects that have a high rate of returns on investments much more readily than projects with a lesser rate of return on investment (ROI).
Unfunded proposals refers to projects or propositions that did not make the cut for the capital released or were not considered as 'great profit opportunities' to be invested into at the present time based on the current strategy (capital rationing). Unfunded proposals are good ideas (as no business deliberately wants to make a loss) but they were not considered by the management to be investments to delve into immediately for various reasons (ranging from low ROI to low funds to wrong timing etc.)
Knowing this, we will therefore see that under the right circumstances, unfunded proposals could be picked up again and invested into.
As such, Option A (unfunded proposals may be reconsidered if funds later become available) is the correct answer
Information related to Kerber Co. is presented below.1. On April 5, purchased merchandise from Wilkes Company for $23,000, terms 2/10, net/30, FOB shipping point.2. On April 6, paid freight costs of $900 on merchandise purchased from Wilkes.3. On April 7, purchased equipment on account for $26,000.4. On April 8, returned damaged merchandise to Wilkes Company and was granted a $3,000 credit for returned merchandise.5. On April 15, paid the amount due to Wilkes Company in full.Collapse question partPrepare the journal entries to record these transactions on the books of Kerber Co. under a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answer and Explanation:
The journal entries are as follows
1. On April 5
Merchandise Inventory $23,000
To Accounts Payable $23,000
(Being the merchandise purchased on the account is recorded)
For recording this we debited the merchandise inventory as it increased the assets and credited the account payable as it increased the liabilities
2. On April 6
Merchandise Inventory $900
To Cash $900
(Being freight cost is paid is recorded)
For recording this we debited the merchandise inventory as it increased the assets and credited the cash as it decreased the assets
3. On April 7
Equipment $26,000
To Accounts Payable $26,000
(Being equipment purchased on the account is recorded)
For recording this we debited the equipment as it increased the assets and credited the account payable as it increased the liabilities
4. On April 8
Accounts Payable $3,000
To Merchandise Inventory $3,000
(Being returned inventory is recorded)
For recording this we debited the account payable as it decreased the liabilities and credited the merchandise inventory as it decreased the assets
5. On April 15
Accounts Payable ($23,000 - $3,000) $20,000
To Cash $19,600
To Merchandise Inventory ($20,000 × 2%) $400
(Being payment is made is recorded)
For recording this we debited the account payable as it decreased the liabilities and credited the merchandise inventory and cash as it decreased the assets
An article presents a study that investigated the effect of varying the type of fertilizer on the height of certain Mediterranean woody tree species. In one experiment, three samples, each consisting of ten trees, were grown with three different fertilizers. One, the control group, was grown with a standard fertilizer. Another was grown with a fertilizer containing only half the nutrients of the standard fertilizer. The third was grown with the standard fertilizer to which a commercial slow-release fertilizer had been added. Following are the heights of the trees after one year.
Height Fertilizer Control 17.9 12.2 14.9 13.8 26.1 15.4 20.3 16.9 20.8 14.8 Deficient 7.5 74 13.8 116 115 17 132 129 176 9.5 Slow-releasel 19.8 20.3 16.1 179 124 12.5 174 19.9 27.3 14.4
a) If you want to construct a hypothesis to test for heights of the trees, state your null and alternative hypothesis.
b) Is the experiment a factorial balanced CR design?
c) What is the degree of freedom of treatment sum of square and error sum of square? If SSTrt and SSE is given: SSTrt=192.374 SSE=439.389, what is the value of your test statistics?
d) Compute the SST?
e) We get a p-value of 0.007 and we have significance level 0.05 for this case, state your conclusion of the test.
Answer:
Explanation:
a.
The experiment under study from the article involves a single factor fertilizer type, at three levels.
Hence, this is a completely randomized design with p=3 treatments.
Assuming :
[tex]\mu_ 1 ; \mu_2 \ and \ \mu_3[/tex] are mean heights for three types of fertilizer. Therefore, the null and alternative hypotheses are:
Null hypothesis:
[tex]H_o : \mu_ 1 = \mu_2 \ = \ \mu_3[/tex] ( i.e all type of population mean heights for three different fertilizers f are equal )
Alternative hypothesis:
[tex]H_1 :\mu_ 1 \neq \mu_2 \ \neq \ \mu_3[/tex] ( at least one of the fertilizer is not equal )
b.
This is a completely randomized design as p=3 treatment means are compared, where treatments are randomly assigned to the experimental units.
c.
[tex]SSTr(df)=p-1 \\ \\ =3-1 \\ \\=2, \\ \\ df(SSE)=n-p \\ \\ =30-3 \\ \\ =27 \\ \\ MSTr=SSTr/df(SSTr) \\ \\=192.374/2 \\ \\ =96.187; MSE=SSE/df(SSE) \\ \\ =439.389/27 \\ \\ =16.2737 \\ \\ F=MSTr/MSE \\ \\ =96.187/16.2737 \\ \\ =5.91[/tex]
d.
[tex]SST=SSTr+SSE \\ \\ =192.374+439.389\\ \\ =631.763[/tex]
e.
Given that the p-value is 0.007 and F = 5.91
Also;
p-value 0.007 is less than the level of significance 0.05.
Thus ; we reject the null hypothesis and conclude that there is difference in mean of all types of the fertilizers.
For each item listed below, indicate the effect on net income in arriving at cash flows from operations by choosing one of the following code letters. Code Cash Flows from Operating Activities Add to Net Income A Deduct from Net Income D 1. A decrease in accounts receivable 2. Increase in inventory 3. Increase in prepaid expenses 4. A decrease in accounts payable 5. Decrease in accrued liabilities 6. Increase in income taxes payable 7. Depreciation expense 8. Loss on sale of investment 9. Gain on disposal of equipment 10. Depletion expense2) Please complete the following:Net Income......................................................................................... $177,000Adjustments to reconcile net income to net cash provided by operating activities:Depreciation expense, $15,000........................................................ _______Increase in accounts receivable, $45,000........................................... _______Increase in inventory, $22,000......................................................... _______Decrease in accounts payable, $11,800............................................. _______Increase in income taxes payable, $1,500.......................................... _______Gain on sale of land, $5,000............................................................ _______
Net cash provided (used) by operating activities.................................. _______
The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions's job cost sheets show the following total costs accumulated on three furniture jobs
Job 602 Job 603 Job 604
Direct Materials $1,700 $3,100 $2,600
Direct labor 1,000 1,340 1,800
Overhead 500 670 900
Job 602 was started in production in May, and these costs were assigned to it in May: direct materials, $500; direct labor, $250; and overhead, $125. Jobs 603 and 604 were started in June. Overhead cost is applied with a predetermined rate based on direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 is expected to be finished in July. No raw materials are used indirectly in June. (Assume this company’s predetermined overhead rate did not change over these months).
1. What predetermined overhead rate is used in June?
2. How much cost is transferred to finished goods inventory in June?
Answer:
1. 50%
2. $8,310
Explanation:
1. The computation of predetermined overhead rate is used in June is shown below:-
Predetermined overhead rate = Overhead Cost ÷ Direct labor Cost
= $125 ÷ $250
= 50%
2. The computation of cost is transferred to finished goods inventory in June is shown below:-
Job Raw Direct Overhead Total Cost transferred
material labor applied Cost to finished goods
602 $1,700 $1,000 $500 $3,200 $3,200
603 $3,100 $1,340 $670 $5,110 $5,110
604 $2,600 $1,800 $900 $5,300
Total
cost $7,400 $4,140 $2,070 $13,610 $8,310
The total cost is comprise of raw material, direct labor and overhead applied
And since Job 602 and 603 are finished in June so the same is to be considered and The job 604 is expected to finished in July so the same is not relevant
Market efficiency Financial theorists have identified two different types of efficiency in financial markets. The first, informational efficiency, contributes to the existence and strength of the other, economic efficiency. The degree of informational efficiency exhibited by a market refers to the types of information incorporated into the prices observed in the market and the speed with which prices adjust when new relevant information is released into the market. Markets are said to exhibit one of three levels of informational efficiency: weak-form efficiency, semistrong-form efficiency, or strong-form efficiency. At any level, a market’s informational efficiency is likely to be stronger when there is a number of market participants receiving and analyzing relevant security and market information in search of the most profitable investments. The potential for a security to generate returns is what generates a profitable investment, since these returns result from price increases and decreases that are larger than they should be based on the riskiness of the investment. True or False: The degree of economic efficiency observed in a market is strongly influenced by the degree of informational efficiency that exists in the same market. False True
Answer: 1. Large
2. Abnormal
3. True
Explanation:
1. At any level, a market’s informational efficiency is likely to be stronger when there is a Large number of market participants.
When there is a larger number of participants, this means that there is a large number of people able to acquire and analyse information about securities and the financial markets.
As a result of this, information is more wide ranging and easily available such that they market has very good information efficiency.
2. The potential for a security to generate Abnormal returns is what generates a profitable investment.
When a security is potentially able to generate abnormal returns, there is a chance of making very profitable returns if those returns are higher or lower than estimated. When returns are estimated, these are usually reflected in the market price already because they are expected, when the returns are better or worse than expected though, this means that the prices were wrong therefore giving a chance of a positive gain on the security.
3. True.
Information efficiency is very important in the market. It can mean the difference between the market being manipulated and used for unfair gains and the market being used fairly by all. Information efficiency gives every market player the same Opportunity to find out about a security and act accordingly instead of select people taking advantage of hidden Opportunities.
Nicky makes $25,000 a year as a sales clerk. He then decides to quit his job to enter a MBA program full-time (assume Nicky doesn't work in the summer or hold any part-time jobs). His tuition, books, living expenses, and fees total $15,000 a year. Given this information, the annual total cost of Nicky's MBA studies is:________. a. $10,000 b. $30,000 c. $40,000 d. $15,000. e. $25,000
Answer:
40,000
Explanation:
There is no alternative
So the correct answer for this question is 40,000
Total cost= explicit cost + implicit cost=15,000+25,000=$40,000
1: 15,000+25,00 =
2: Answer found
Answer: 40,000
Hope this helps.
The price of trade Suppose that Greece and Austria both produce jeans and wine. Greece's opportunity cost of producing a bottle of wine is 3 pairs of jeans while Austria's opportunity cost of producing a bottle of wine is 11 pairs of jeans. By comparing the opportunity cost of producing wine in the two countries, you can tell that production of wine and ______ has a comparative advantage in the has a comparative advantage in the production of jeans Suppose that Greece and Austria consider trading wine and jeans with each other. Greece can gain from specialization and trade as long as it receives more than _______ of jeans for each bottle of wine it exports to Austria. Similarly, Austria can gain from trade as long as t receives more than ________ of wine for each pair of jeans it exports to Greece. Based on your answer to the last question, which of the following prices of trade (that is, price of wine in terms of jeans) would allow both Austria and Greece to gain from trade? a) 13 pairs of jeans per bottle of wine b) 6 pairs of jeans per bottle of wine c) 2 pairs of jeans per bottle of wine d) 1 pair of jeans per bottle of wine
Answer: The answers are given below
Explanation:
a. Greece has a comparative advantage in the production of wine because Greece has a lower opportunity cost of wine and, therefore Austria has a comparative advantage in the production of jeans.
(b) Greece can gain from the specialization as long as Greece gets more than 3 pair of jeans per bottle of wine and Austria can gain from the specialization as long as it gets more than 0.09 (= 1/11) bottle of wine per a pair of jeans.
(c) Trade is mutually beneficial when terms of trade lies in between the opportunity costs in both countries.
3 jeans < TOT < 11 jeans
So, the permissible terms of trade are:
6 pairs of jeans
Answer:
(1). Greece has comparative advantage in wine while Austria has comparative advantage in jeans.
(2). Greece can gain from specialization as long as it gets more than 5 pair of jeans per bottle of wine.
Austria can gain from specialization as long as it gets more than 1/11 bottle of wine per pair of jeans.
(3). Trade is mutually beneficial as long as terms of trade lies in between opportunity costs in both countries.
Explanation:
So, for the first gap in the question, it can be filled as follows;
(1). Greece has comparative advantage in wine while Austria has comparative advantage in jeans.
Reason: this is because of the lower opportunity cost in Greece for wine will make the country have a comparative advantage in wine.
(2). Greece can gain from specialization as long as it gets more than 5 pair of jeans per bottle of wine.
Austria can gain from specialization as long as it gets more than 1/11 bottle of wine per pair of jeans.
(3). Trade is mutually beneficial as long as terms of trade lies in between opportunity costs in both countries.
3 jeans < TOT < 11 jeans
So, the permissible terms of trade are:
Between 4 pairs of jeans to 10 pairs of jeans.
Presented below is information related to Coronado Corporation for the month of January 2020.
Cost of goods sold $221,450 Salaries and wages expense $62,960
Delivery expense 6,300 Sales discounts 8,320
Insurance expense 11,900 Sales returns and allowances 12,540
Rent expense 18,370
Sales revenue 364,700
Prepare the necessary closing entries. (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:
1.
Cost of Goods Sold $221,450 (debit)
Trading Account $221,450 (credit)
2.
Salaries and Wages $62,960 (debit)
Income Statement $62,960 (credit)
3.
Delivery Expenses $6,300 (debit)
Income Statement $6,300 (credit)
4.
Sales Revenue $8,320 (debit)
Sales Discounts $8,320 (credit)
5.
Insurance expense $11,900 (debit)
Income Statement $11,900 (credit)
6
Sales Revenue $12,540 (debit)
Sales returns and allowances $12,540 (credit)
7.
Rent expense $18,370 (debit)
Income Statement $18,370 (credit)
8.
Income Statement $364,700 (debit)
Sales revenue $364,700 (credit)
Explanation:
When Closing entries it is important to first close contra entries to their respective ledger accounts. Such contra entries include Sales Returns closed off to Sales Account.
Then the ledger accounts are closed off to financial statements.
Morrow Corporation had only one job in process during May—Job X32Z—and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below: Job X32Z Beginning balance $ 5,800 Charged to the job during May Direct materials $ 9,100 Direct labor $ 2,800 Manufacturing overhead applied $ 4,800 Units completed 180 Units in process at the end of May 0 Units sold during May 80 In May, overhead was overapplied by $380. The company adjusts its cost of goods sold every month for the amount of the overhead that was underapplied or overapplied. Required: 1. Using the direct method, what is the cost of goods sold for May?
Answer:
Cost of goods sold is $9,620
Explanation:
First step prepare the Cost of Goods Manufactured Account
Direct materials $ 9,100
Direct labor $ 2,800
Manufacturing overhead applied $ 4,800
Total Manufacturing Costs $16,700
Add Opening Work In Process $ 5,800
Less Closing Work In Process $ 0
Cost of Goods Manufactured $22,500
Next we need to calculate the cost of goods sold as follows :
Opening Finished Goods Inventory $0
Add Cost of Goods Manufactured $22,500
Less Closing Finished Goods Inventory ($12,500)
Cost of goods sold $10,000
Less Over-applied Overheads ($380)
Adjusted Cost of goods sold $9,620
Finished Goods Inventory = $22,500 × 100/180
= $12,500
Thus Cost of goods sold is $9,620
Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 8.4 grams $ 3.00 per gram Direct labor 0.5 hours $ 30.00 per hour Variable overhead 0.5 hours $ 8.00 per hour The company produced 6,200 units in January using 40,310 grams of direct material and 2,480 direct labor-hours. During the month, the company purchased 45,400 grams of the direct material at $2.70 per gram. The actual direct labor rate was $29.30 per hour and the actual variable overhead rate was $7.80 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for January is:
Answer:
Variable manufacturing overhead rate variance= $496 favorable
Explanation:
Giving the following information:
Standard:
Variable overhead 0.5 hours $ 8.00 per hour
The company produced 6,200 units using 2,480 direct labor-hours. The actual variable overhead rate was $7.80 per hour.
To calculate the variable overhead rate variance, we need to use the following formula:
Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Variable manufacturing overhead rate variance= (8 - 7.8)*2,480
Variable manufacturing overhead rate variance= $496 favorable
FAO Schwarz is unique children's toy store where customers can play with toys in each department prior to purchasing them, can step on an over-sized piano, can walk through elaborate Lego castles, and can meet characters from their favorite cartoons during their visit. Families typically visit the store together and stay for several hours to get the complete experience. The store can best be described as a:
a) Destination store
b) Omnichannel store
c) Direct distribution channel
d) Pop-up store
e) Parasite store
Answer:
Destination store
Explanation:
A destination store is a retail store that attracts lots of customers due to the unique features that the have. These features could include: affordable price, a good customer service that attends to the customers needs efficiently, rare items that cannot be found in any other shop.
Destination shop can also be described as a large store that is well known for the high-quality products that they sell, they are also able to attract the customers with different recreational activities.
In the scenario described above, FAO Schwarz is described as a destination store because the customers are able to test out the toys before purchasing them.
Consider the following information pertaining to Pagoda's inventory: Product Quantity Cost Net Realizable Value Gloves 16 $ 121 $ 155 Shoes 26 26 21 Hats 13 52 42 At what amount should Pagoda report its inventory?
Answer:
$3,028
Explanation:
As we know that
The inventory should be valued at cost or net realizable value which ever is lower
(A) (B) (A × B)
Product Quantity Lower value of cost or NRV Amount
Gloves 16 $121 $1,936
Shoes 26 $21 $546
Hats 13 $42 $546
Total amount $3,028
Hence, the inventory recorded amount is $3,028
(c) One recent cost analysis report indicates that electricity from hydroelectric power can be produced for about $0.05 per kWh , while electricity from conventional coal-fired power plants can be produced for an average of about $0.11 per kWh . Calculate the percent change in the cost of electricity for a typical house resulting from a switch between conventional coal-fired power plants to hydroelectric power. Show your work.
Answer: 54.5%
Explanation:
Hydroelectric power is said to cost $0.05 per kWh to produce. A typical house uses 10,900 kWh in a year so in a year it would cost,
= 0.05 * 10,900
= $545
Coal-fired Electricity can be produced at a cost of $0.11 per kWh so a typical house would cost,
= $0.11 * 10,900
= $1,199
Percentage change in the cost using Coal-fired as a base is,
= (1,199 - 545)/1,199
= 0.5455
= 54.5%
54.5% is the percent change in the cost of electricity for a typical house resulting from a switch between conventional coal-fired power plants to hydroelectric power.
Answer:
The percent change in the cost of electricity from coal-fired to hydroelectric power = 54.5% reduction.
Explanation:
a) The cost of coal-fired power = $0.11 per KWh
b) The cost of hydroelectric power = $0.05 per KWh
c) The reduction or savings = $0.06 ($0.11 - $0.05) per KWh
d) The % change is therefore = $0.06/$0.11 x 100 = 54.5%
e) The implication is that it will cost a typical house 54.5% less when it switches from coal-fired power plants to hydroelectric power. The house will be paying $0.06 less per KWh.
You are setting up a new aircraft repair station. The business, which is organized as a corporation, will provide avionics systems, parts, components, and modification, along with avionics inspection and maintenance services. The business has leased a hangar from the airport authority where the work will be performed. The hangar includes areas for office space, parts and tool storage, aircraft and avionics maintenance, and a customer lounge. In addition to yourself as general manager, the company's initial employees will include a secretary/receptionist, a bookkeeper, a stocks and stores clerk, and 5 A&P mechanics (one of whom holds FAA inspection authorization as well as a pilot license and will perform maintenance flight checks on customers' aircraft before approving them for return to service following maintenance). The business will not own or operate any aircraft, except for the maintenance flight check operations on customer aircraft. Describe in detail all insurance you will need to purchase for each aspect of this business.
Answer: The answer is given below
Explanation:
All the insurance needed to purchase for each aspect of the business include:
The business, which is organized as a corporation, will provide avionics systems, parts, components, and modification, along with avionics inspection and maintenance services.
1. Product liability insurance – It is also referred to as the products and completed operations coverage. It is needed by every businesses which perform aircraft inspection, its maintenance, modification, or deals in the supply of aircraft parts, lubricants and fuel. With this insurance, the corporation can cover claims from faulty workmanship, errors and defect in design, oversights in inspection, and faults in the quality, storage and the delivery of fuels.
The business has leased a hangar from the airport authority where the work will be performed. The hangar includes areas for office space, parts and tool storage, aircraft and avionics maintenance, and a customer lounge:
2. Hangarkeepers liability insurance - This covers the liability of the business for damage to the aircraft of other people’s when their aircrafts are in the care or control of the corporation. In a situation whereby the airplane of a customer is damaged by the employee, the hangar collapses due to natural disasters, this coverage pays off the airplanes’ damages and losses. Also, “Premises Liability” is required because the hangar include areas for a customer lounge. Premises liability covers customers injuries that takes place in the corporation’s hangar.
In addition to yourself as general manager, the company's initial employees will include a secretary/receptionist, a bookkeeper, a stocks and stores clerk, and 5 A&P mechanics (one of whom holds FAA inspection authorization as well as a pilot license and will perform maintenance flight checks on customers' aircraft before approving them for return to service following maintenance).
3. Compensation insurance coverage for workers - This is mandatory for employers as it compensate the employees for on-the-job injuries that occur.
The business will not own or operate any aircraft, except for the maintenance flight check operations on customer aircraft:
4. Hangarkeeper insurance - Here,.the business requires hangarkeeper’s insurance because the business will neither own nor operate any aircraft, but will do flight check and the maintenance on other people’s airplanes that are being stored or worked on in their facility.
At December 31, 2018, the Accounts Receivable balance of GPC Technology is $200,000. The Allowance for Bad Debts account has a $11,020 debit balance. GPC Technology prepares the following aging schedule for its accounts receivable: Begin by determining the target balance of Allowance for Bad Debts by using the age of each account
Total Age of Accounts 31-60 61-90 Days Days $ 65,000 $ 55,000 5.0 7.0 1-30 Days 70,000 0.6 % Balance Over 90 Days $ 10,000 50.00
1. Journalize the year-end adjusting entry for bad debts on the basis of the aging schedule. Show the T-account for the Allowance for Bad Debts at December 31, 2018
2. Show how GPC Technology will report its net accounts receivable on its December 31, 2018, balance sheet.
Answer:
1. Journalize the year-end adjusting entry for bad debts on the basis of the aging schedule. Show the T-account for the Allowance for Bad Debts at December 31, 2018}
Dr Bad debt expense 23,540
Cr Allowance for doubtful accounts 23,540
2. Show how GPC Technology will report its net accounts receivable on its December 31, 2018, balance sheet.
Accounts receivable $200,000
Allowance for doubtful accounts ($12,520)
Net accounts receivable $187,480
Explanation:
Total Age of Accounts
1-30 Days $70,000 x 0.6 % = $420
31-60 Days $65,000 x 5% = $3,250
61-90 Days $55,000 x 7% = $3,850
Balance Over 90 Days $10,000 x 50% = $5,000
total $12,520 + $11,020 (debit balance) = $23,540
The trial balance columns of the worksheet for Flint at March 31, 2019, are as follows.
Flint Worksheet
For the Month Ended March 31, 2019
Trial Balance
Account Titles Dr. Cr.
Cash 4,900
Accounts Receivable 3,400
Supplies 1,800
Equipment 11,176
Accumulated Depreciation—Equipment 1,270
Accounts Payable 2,500
Unearned Service Revenue 700
Common Stock 10,266
Retained Earnings 2,700
Dividends 1,200
Service Revenue 6,700
Salaries and Wages Expense 1,300
Miscellaneous Expense 360
24,136 24,136
Other data:
1. A physical count reveals only $700 of roofing supplies on hand.
2. Depreciation for March is $254.
3. Unearned service revenue amounted to $200 at March 31.
4. Accrued salaries are $600.
A. Enter the trial balance on a worksheet and complete the worksheet.B. Prepare an income statement for the month of March.C. Prepare a retained earnings statement for the month of MarchD. Prepare a classified balance sheet at March 31.E. Journalize the adjusting entries from the adjustments columns of the worksheet.F. Journalize the closing entries from the financial statement columns of the worksheet.
Answer:
Flint
A. See worksheet.
B. Income Statement for the month of March 2019:
Service Revenue $7,200
Supplies Expense -1,100
Depreciation Exp. -254
Salaries Expense -1900
Miscellaneous Exp. -360
Net Income $3,586
C. Retained Earnings Statement for the month of March
Beginning Retained Earnings $2,700
Net Income 3,586
Dividends -1,200
Closing Retained Earnings $5,086
D. A Classified Balance Sheet at March 31:
Assets:
Current Assets:
Cash $4,900
Accounts Receivable 3,400
Supplies 700 $9,000
Long-term Assets:
Equipment $11,176
less Acc. Depreciation 1,524 $9,652
Total Assets $18,652
Liabilities::
Current Liabilities:
Accounts Payable $2,500
Unearned Revenue 200
Salaries & Wages Payable 600 $3,300
Equity:
Common Stock $10,266
Retained Earnings 5,086 $15,352
Total Liabilities + Equity $18,652
E. Journal of Adjusting Entries:
March 31, 2019:
1. Debit Supplies Expense $1,100
Credit Supplies $1,100
To record supplies used in March.
2. Debit Depreciation Expense $254
Credit Accumulated Depreciation $254
To record depreciation expense for the month
3. Debit Unearned Service Revenue $500
Credit Service Revenue $500
To record revenue earned.
4. Debit Salaries & Wages $600
Credit Salaries & Wages Payable $600
To record accrued salaries.
F. Journal for closing entries:
March 31:
Debit Income Summary $3,614
Credit Supplies Expense $1,100
Credit Depreciation Expense $254
Credit Salaries & Wages Expense $1,900
Credit Miscellaneous Expense $360
To close temporary accounts to the income summary.
Debit Service Revenue $7,200
Credit Income Summary $7,200
To close temporary accounts to the income summary.
Debit Retained Earnings $1,200
Credit Dividends $1,200
To close the account to the Retained Earnings.
Explanation:
a) A Trial Balance is a list of debit and credit balances extracted from the ledger. It is a tool for checking if the two sides agree in total. It also forms the basis for preparing financial statements after adjusting entries have been made.
b) Adjusting entries are journal entries made to recognize some accrued expenses and income for the period, in line with the accrual concept and the matching principle of generally accepted accounting principles.
c) Closing entries are journal entries made to close temporary accounts to the income summary; thus leaving only permanent accounts, which are carried over to the next accounting period.
For calendar year 2018, Stuart and Pamela Gibson file a joint return reflecting AGI of $350,000. Their itemized deductions are as follows: Note: All expenses are before any applicable limitations, unless otherwise noted.
Casualty loss in a Federally declared disaster area after $100 floor (not covered by insurance) $48,600
Home mortgage interest (loan qualifies as acquisition indebtedness) 19,000
Credit card interest 800
Property taxes on home 16,300
Charitable contributions 28,700
State income tax 18,000
Tax return preparation fees 1,200
Round your intermediate computations to nearest whole dollar.
The amount of itemized deductions the Gibsons may claim for the year is?
Answer:
$71,300
Explanation:
Stuart and Pamela Gibson
Casualty loss $13,600
[$48,600 – (10% × $350,000)]
Home mortgage interest 19,000
State tax 10,000
(18,000 income and 16,300 property
Limited to 10,000)
Charitable Contributions 28,700
Total itemized deductions 71,300
Manhattan Enterprises manufactures cookware sets and sells the sets to department stores. Manhattan expects to sell 2,400 cookware sets for $200 each in April and 3,500 cookware sets for $215 each in May. Sales are 15% cash and 85% on account. Compute the total budgeted sales for May. Group of answer choices
Answer:
Budgeted sales ($)= $752,500
Explanation:
Giving the following information:
Manhattan expects to sell 2,400 cookware sets for $200 each in April and 3,500 cookware sets for $215 each in May.
To calculate the budgeted sales, we need to use the following formula:
Budgeted sales ($)= number of units sold*selling price per unit
Budgeted sales ($)= 3,500*215= $752,500
Answer:
752,500
Explanation:
What amount would a person with actual cash value (ACV) coverage receive for two-year-old furniture destroyed by a fire? The furniture would cost $1,000 to replace today and had an estimated life of five years.
Answer:
$600
Explanation:
The actual cash value coverage to be received for the two-year old furniture is equivalent to the replacement cost today minus estimated depreciation amount that would have been charged on the furniture till date.
replacement cost is $1,000
estimated depreciation till date=$1000/useful life*number of years the furniture has been put to use
estimated depreciation=$1,000/5*2=$400
actual cash value coverage =$1000-$400=$600
All in all,the amount that a person with actual cash value coverage would receive today on the furniture is $600
Vertical analysis (common-size) percentages for Sandhill Co.’s sales revenue, cost of goods sold, and expenses are listed here. Vertical Analysis 2017 2016 2015 Sales revenue 100 % 100 % 100 % Cost of goods sold 61.2 63.6 66.1 Expenses 24.8 27.8 28.7 Collapse question part (a1) Calculate Sandhill’s net income as a percent of sales. (Round answers to 1 decimal place, e.g. 5.2%.) 2017 2016 2015 Net income % % %
Answer:
2015 Net income is 5.2%
2016 Net income is 8.6%
2017 Net income is 14.0%
Explanation:
Net income %=sales%-cost of goods sold %-expenses%
2015:
Sales is 100%
cost of goods sold is 66.1%
expenses is 28.7%
In 2015 net income %=100%-66.1%-28.7%=5.2%
2016:
Sales is 100%
cost of goods sold is 63.6%
expenses is 27.8%
In 2016 net income as % of sales=100%-63.6%-27.8%=8.6%
2017:
Sales is 100%
cost of goods sold is 62.1%
expenses is 24.8%
In 2017 net income as % of sales=100%-61.2%-24.8%=14.0%
Heidi says that Camp Bow Wow needs to have "a very strong culture." A strong organizational culture is made up of different components, both visible and invisible. When analyzing the fit between an organization’s culture and the environment, it is important to consider all the components of that culture.
Which of these expresses a value of Camp Bow Wow's culture?
a. Having all employees wear red shirts with the Camp Bow Wow logo
b. Organizing the business as a system of franchises.
c. Sending a condolence card signed by all the employees of Sue's franchise to any customer whose dog dies.
d. Heidi's statement that she is laid back until someone "messes with the safety of the animals
Answer: Sending a condolence card signed by all the employees of Sue's franchise to any customer whose dog dies
Explanation:
An organization's culture is.made up of the beliefs, values, attitudes, and the behaviors which employees share and is used on daily basis in their workplace. The culture helps employees determine how they work, and understand the organization.
Sending a condolence card signed by every employees of Sue's franchise to the customer whose dog dies expresses a value of Camp Bow Wow's culture. Camp Bow Wow expresses the service of the organization and its value through empathizing with the customer on their loss.
A corporation had the following assets and liabilities at the beginning and end of this year. Assets Liabilities Beginning of the year $ 57,000 $ 24,436 End of the year 115,000 46,575
a. Owner made no investments in the business, and no dividends were paid during the year.
b. Owner made no investments in the business, but dividends were $1,400 cash per month.
c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock.
d. Dividends were $1,400 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock.
Determine the net income earned or net loss incurred by the business during the year for each of the above separate cases.
Answer and Explanation:
The computation of the net income earned or net loss incurred is shown below
Particulars a b c d
Equity beginning $32,564 $32,564 $32,564 $32,564
balance
Add:
Owner investment $45,000 $35,000
Less:
Dividend $16,800 $16,800
Add: Net income $35,861 $52,661
or net loss ($9,139) $17,661
Equity ending
balance $68,425 $68,425 $68,425 $68,425
Working notes
The beginning and ending equity balance is
Beginning equity balance is
= Total assets beginning - total liabilities beginning
= $57,000 - $24,436
= $32,564
Ending equity balance is
= Total assets ending - total liabilities ending
= $115,000 - $46,575
= $68,425
The annual year dividend is
= $1,400 × 12 months
= $16,800
Noncallable bonds that mature in 10 years were recently issued by Sternglass Inc. They have a par value of $1,000 and an annual coupon of 5.5%. If the current market interest rate is 7.0%, at what price should the bonds sell
Answer:
Price of Bond= $907.766
Explanation:
The price of the bond is the present value of its future cash flow discounted at the required rate of return of 5.5%.
Price of Bond = PV of interest payment +PV of redemption value
PV of interest payment:
interest payment = 5.5%× 1000= 55
PV = A × (1+r)^(-n)/r
A- 55, r - 7%, n- 10 years
PV = 55, r- 5.5%, n- 10
PV = 55× 1.07^(-10)/0.07= 399.417301
Present Value of redemption
PV = F× (1+r)^(-n)
F= 1000, r- 7%, n- 10 years
PV = 1,000× 1.07^(-10)= 508.3492921
Price of Bond = 508.3492921 + 399.417301= 907.7665931
Price of Bond= $907.766
