Answer:
a. Yes yes
Explanation:
The primary focus for financial accounting information is to provide useful information to investors for decision making. This is to enable both present and potential investors have prior knowledge and state of affairs of the company or business they want to spend their money on.
However, in the long run, the focus for financial accounting would also include providing useful information for credit decisions. The aforementioned would only occur if a company is able to generate profit hence providing rate of returns to their investors.
Answer:
MAYBE
Explanation:
yes + no = maybe
Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $470,000. Shipping costs totaled $14,100. Foundation work to house the centrifuge cost $7,700. An additional water line had to be run to the equipment at a cost of $2,600. Labor and testing costs totaled $7,000. Materials used up in testing cost $3,700. (Leave no cells blank. Enter 0 where needed.) a. What is the total cost of the equipment
Answer:Total Cost of equipment=$502,500
Explanation:
Total Cost of equipment= This is gotten by addition of Cost of Purchase +Shipping costs +Foundation work+ Testing expense
=$470,000+$14,100+$7,700+($7,000+$3,700.)
=$502,500
a. Why do some price controls help create black markets?
b. What is a black market you have personally seen?
Answer:
Price ceiling creates black markets
Price ceiling is when the government or an agency of the government sets the maximum price of a good or service. Price ceiling is binding if it is set below equilibrium price.
When a binding price floor is established, producers would earn less profits and as a result they would stop selling their products in the free markets. This would lead to scarcity and a result a black market can emerge. Goods would be sold at a higher price in the black markets than it would in the free markets.
So, black markets can arise as a result of price ceiling and the need of producers to earn higher profits
b. During the war, when there was a rationing of meat. Farmers declared less animal births to authorities and sold the undeclared livestock in the black market.
Also, in less developed countries e.g. Nigeria, when there is scarcity of fuel. Black markets arise where fuel are sold for higher prices
Explanation:
you can acquire an existing business for $2 million. You are uncertain about future demand. There is a 40% chance of high demand, in which case the present value of the business will be $3 million. There is a 25% chance of moderate demand, and the associated present value is $1.5 million. Finally, there is a 35% chance of low demand, in which case the present value is $1 million. Draw a decision tree for this problem. What is the expected net present value of the business
Answer:
Expected net present value of the project = $1,925,000
Explanation:
The cost of acquiring business = $2,000,000
Expected net present value of the project = High demand NPV*High demand percent + Moderate demand NPV*Moderate demand percent + Low demand NPV*Low demand percent
Expected net present value of the project = $3,000,000 *40% + $1,500,000*25% + $1,000,000*35%
Expected net present value of the project = $1,200,000 + $375,000 + $350,000
Expected net present value of the project = $1,925,000
Conclusion: The cost of acquiring business is more than expected net present value, it is advisable not to invest in the project.
Hy-Vee (grocery store) would most accurately be classified as
Answer:
distributer
Explanation:
Which statement is correct? In the short run, the pure monopolist will maximize total profits by producing at that level of output where the difference between price and average total cost is greatest. Pure monopolists do not always realize economic profits. Because of its ability to administer prices, the pure monopolist can increase its price and increase its volume of sales simultaneously. In the short run, the pure monopolist will charge the highest price it can get for its product.
Answer: Pure monopolists do not always realize economic profits.
Explanation:
Even though Pure Monopolies are the only sellers or makers of a good in a market and can therefore set their own prices, this does not mean that they will always make a profit talk more an economic one.
In the short run for instance, a Pure monopoly could see its average cost higher than its average revenue because some factors of production could not be varied. In this scenario, the monopolist would realize economic losses.
Competitive firms' profits are ______________ monopolistically competitive firms' profits in the long run.
Answer and Explanation:
Competitive firms' profits (economic profit) are same as monopolistically competitive firms' profits in the long run. Both competitive firms and monopolistic firms have zero profit in the long run. This is because for competitive firms, increased competition by entry of new firms creates high competition therefore infinitely homogenous divisible products hence zero economic profit in the long run. Also in monopolistically competitive firms, there is economic profit in short run but it soon becomes zero profit in the long run
Tyrone wants to spend $15,000 on a new car three years from now. He opens a savings account and deposits $3,250 today. One year from now, he plans to deposit $3,000 in the account, and one year after that, he plans to deposit another $3,000. If the account earns 6% interest per year, how much additional money will Tyrone need to meet his $15,000 goal?
Answer:
Tyrone will need $4578.4 to meet his $15,000 goal
Explanation:
Tyrone wants to spend amount on a new car three years from now=$15,000
Formula : [tex]A=P(1+\frac{r}{100})^n[/tex]
Where A=future value
P=present value
r=rate of interest
n=time period.
Future value of deposits=[tex]3250 \times(1.06)^3+3000 \times(1.06)^2+3000 \times (1.06)[/tex]
Future value of deposits= 10421.60
So, additional money needed=15000-10421.60=4578.4
Hence Tyrone will need $4578.4 to meet his $15,000 goal
Make way for India - the next China China grows at around 9 percent a year, but its one-child policy will start to reduce the size of China's working-age population within the next 10 years. India, by contrast, will have an increasing working-age population for another generation at least. Then answer the following questions: According to classical growth theory, restricting China's population ______ economic growth. According to new growth theory, restricting China's population growth ______ economic growth.
Answer:
The answer is "India and increases".
Explanation:
Since its working-age population is rising, India will have a higher economic growth rate, and according to traditional thinking, restricting China's people would boost economic growth.
The modernization theory includes reducing population growth in China would reduce economic growth. In India, real GDP per person has a growth of 8-1.6 = 6.4% as well as that of China is 9-0.6 = 8.4% in 2005. In India, the doubling time is 70/6.4% = 11 years or 2016 and in China, 8.33 or 2014.Pension data for David Emerson Enterprises include the following: ($ in millions) Discount rate, 10% Projected benefit obligation, January 1 $ 360 Projected benefit obligation, December 31 465 Accumulated benefit obligation, January 1 300 Accumulated benefit obligation, December 31 415 Cash contributions to pension fund, December 31 150 Benefit payments to retirees, December 31 54 Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
Answer:
$123
Explanation:
Calculation to determine the service cost component of pension expense for the year ended December 31.
PENSION BENEFIT OBLIGATION
Beginning of the year Projected benefit obligation $360
Service cost ?
Interest cost $36
(10%*360)
Loss (gain) on PBO $0
Less: Retiree Benefits ($54)
End of the year Projected benefit obligation $465
Hence,
SERVICE COST= ($465-$360-$36+$54)
SERVICE COST= $123
Therefore the service cost component of pension expense for the year ended December 31 will be $123
Lonergan Company occasionally uses its accounts receivable to obtain immediate cash. At the end of June 2021, the company had accounts receivable of $1,060,000. Lonergan needs approximately $640,000 to capitalize on a unique investment opportunity. On July 1, 2021, a local bank offers Lonergan the following two alternatives:________.
a. Borrow $640,000, sign a note payable, and assign the entire receivable balance as collateral. At the end of each month, a remittance will be made to the bank that equals the amount of receivables collected plus 9% interest on the unpaid balance of the note at the beginning of the period.
b. Transfer $690,000 of specific receivables to the bank without recourse. The bank will charge a 2% factoring fee on the amount of receivables transferred. The bank will collect the receivables directly from customers. The sale criteria are met.
Required:
1. Prepare the journal entries that would be recorded on July 1 for
a. alternative a.
b. alternative b
2. Assuming that 80% of all June 30 receivables are collected during July, prepare the necessary journal entries to record the collection and the remittance to the bank for
a. alternative a
b. alternative b.
Answer:
Please see attached detailed solution to the above question
Explanation:
Please find attached journal entries prepared the two alternatives.
What is the profit margin for a firm with the following: dividend payout ratio of 55 percent, capital intensity ratio of 1.4, debt-equity ratio of .68, and sustainable growth rate of 6.2 percent
Answer:
2.33%
Explanation:
Capital intensity ratio=total assets /sales=1.4
debt-equity ratio=debt/equity=0.68 ( debt is 0.68 while equity is 1 since 0.68/1=0.68)
total assets=debt+equity=0.68+1=1.68
return on equity=sustainable growth rate*retention rate
sustainable growth rate=6.2%
retention rate=1-dividend payout ratio=1-55%=45%
return on equity=6.2%*45%=2.79%
Using the point formula , the return on equity formula is given below:
return on equity=profit margin*asset turnover*assets/equity
return on equity=2.79%
profit margin is the unknown
asset turnover=sales/total assets=1/Capital intensity ratio=1/1.4
assets/equity=1.68/1=1.68
2.79%=profit margin*1/1.4*1.68
2.79%=profit margin*1.20
2.79%/1.20=profit margin
profit margin=2.33%
Mills Corporation acquired as an investment $225 million of 8% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Mills paid $250 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $240 million. Required: 1. & 2. Prepare the journal entry to record Mills’ investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate. 3. Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December 31, 2021. 4. Suppose Moody’s bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2, 2022, for $266 million. Prepare the journal entries required on the date of sale.
Answer:
Please see solution below.
Explanation:
1.
July 1, 2021
Dr Investment in bonds $225,000,000
Dr Premium on investment in bonds $25,000,000
Cr Cash $250,000,000
December 31, 2021
Dr Cash $18,000,000
Cr Interest revenue $15,000,000
Cr Premium on investments in bonds
$3,000,000
2.
Investment in bonds. $225,000,000
Premium on investment in bonds $22,000,000
3.
January 2, 2022
Dr. Cash $266,000,000
Cr Investment in bonds $225,000,000
Cr Premium on investment in bonds $22,000,000
Cr Gain on sale of investments $19,000,000
Workings:
Effective interest rate on first coupon received = [ $225,000,000 × 8%] - [ $250,000,000 × 6%]
= $18,000,000 - $15,000,000
= $3,000,000
Premium on investment in bonds = $25,000,000 - $3,000,000
= $22,000,000
You are the marketing analyst for Better Beans Coffee Company, which has nine stores nationwide. The company wants to build two additional stores. Your executive team has decided that rather than expand to new markets, they want Better Beans to begin opening additional stores in existing markets. While this will create cannibalization in the short term, it will create marketing and operating efficiencies as more stores are opened in each city.As a scrappy and growing startup, Better Beans does not yet have access to complex marketing analytics software. Fortunately, you are an expert at gathering market data from inside and outside the company and crunching accurate numbers with nothing more than an Excel spreadsheet.You have been tasked with calculating the two best markets for opening an additional store. You have already calculated two things that allow you to estimate the net additional revenue in each market after adding a second store:Revenue for a second store in each marketThe revenue lost from estimated cannibalization at the first store.Important note: Due to the high investments already made in existing stores, management has specified that any market where cannibalization is 25% or more should be eliminated from consideration.1. Ignoring cannibalization rates for now, what two markets have the highest net revenue increases when adding a second store?a. Dallas and Portlandb. Los Angeles and Orlandoc. Chicago and Dallasd. Orlando and Dallase. Los Angeles and Portland2. What two markets should be chosen for a second store based on management's criteria that the cannibalization rate for the existing store should be less than 25%?Note: Cannibalization rates and net revenue increase amounts need to be considered when making this determination.a. Los Angeles and Orlandob. Atlanta and Houstonc. Atlanta and Portlandd. Los Angeles and Portlande. Los Angeles and Houston
Question Completion:
Existing Store Revenue 2nd Store Cannibalization Revenue Net Revenue
Revenue Estimate Drop Increase for
Market
Los Angeles 1,450,000 1,570,000 10% 145,000 1,425,000
Houston 1,400,000 1,475,000 25% 350,000 1,125,000
Orlando 2,100,000 2,155,000 30% 630,000 1,525,000
Atlanta 1,600,000 1,780,000 55% 880,000 900,000
Chicago 1,950,000 1,730,000 40% 780,000 950,000
San Diego 3,400,000 3,090,000 10% 340,000 2,750,000
Portant 1,000,000 1,075,000 25% 250,000 825,000
Dallas 2,000,000 1,850,000 60% 1,200,000 650,000
Boston 2,300,000 2,200,000 50% 1,150,000 1,050,000
1. Ignoring cannibalization rates for now, what two markets have the highest net revenue increases when adding a second store?
San Diego and Orlando
Atlanta and Dallas
Orlando and Dallas
San Diego and Portland
Dallas and Portland
2. What two markets should be chosen for a second store based on management's criteria that the cannibalization rate for the existing store should be less than 30%
Note: Cannibalization rates and net revenue increase amounts need to be considered when making this determination.
San Diego and Orlando
San Diego and Los Angeles
Chicago and Los Angeles
Chicago and Portland
San Diego and Portland
Answer:
Better Beans Coffee Company
1. San Diego's $2,750,000 and Orlando's $1,525,000 presented the highest net revenue increases when adding a second store.
2. Based on management's criteria that the cannibalization rate for the existing store should be less than 30%, San Diego with 10% and Los with 10% Cannibalization rates should be chosen.
Explanation:
Cannibalization Rate is a measure of the impact of new products or the presence of new stores on sales revenue for existing products or stores. Cannibalization happens when a business, like the Better Beans Coffee Company, opens a new store in a town where there is an existing store. It can also happen when Better Beans releases new coffee products. Consumers' attention and demand for existing products can decrease, as a switch to new products or new stores takes place.
Decaprio Inc. produces and sells a single product. The company has provided its contribution format income statement for June.
Sales (5,500 units) $ 192,500
Variable expenses 82,500
Contribution margin 110,000
Fixed expenses 86,500
Net operating income $ 23,500
If the company sells 5,700 units, its net operating income should be closest to:__________
Answer:
Net income= $27,500
Explanation:
Giving the following information:
Sales (5,500 units) $ 192,500
Variable expenses 82,500
Contribution margin 110,000
Fixed expenses 86,500
First, we need to calculate the unitary contribution margin:
unitary contribution margin= 110,000/5,500= $20
Now, the net operating income for 5,700 units:
Net income= 5,700*20 - 86,500
Net income= $27,500
Kenya performs research and creates reports for her boss, the company's Chief Executive, Kenya's job title is best
described as
Liz responds to people who contact a company. She deals with people who visit the office in person and people who
call or e-mail the company. Her job title is best described as
Neil handles important paperwork that his office needs to keep track of. He sorts paperwork and keeps it handy so he
can retrieve information whenever it is needed. His job title is best described as
Salvador organizes information and appointments for a department manager. He also reviews and sorts e-mail for his
boss. His job title is best described as
Answer:
Kenya performs research and creates reports for her boss, the company's Chief Executive, Kenya's job title is best
described as an Executive Administrative Assistant
Liz responds to people who contact a company. She deals with people who visit the office in person and people who
call or email the company. Her job title is best described as a Receptionist
Neil handles important paperwork that his office needs to keep track of. He sorts paperwork and keeps it handy so he
can retrieve information whenever it is needed. His job title is best described as a File Clerk.
Salvador organizes information and appointments for a department manager. He also reviews and sorts e-mail for his
boss. His job title is best described as an Administrative Assistant.
Explanation:
The administrative assistants, receptionists, and file clerks perform important functions. In their various capacities and roles, they help their bosses to function more efficiently and effectively by relieving them of routine tasks. As they perform these duties, their bosses are enabled to concentrate their efforts and time in managing their assigned responsibilities. However, these job titles are not universally uniform, as it depends on the organization.
Answer:
1. Executive Administrative Assistant
2. Receptionist
3. File Clerk
4. Administrative Assistant
Explanation:
Which education degree does a Guidance Counselor usually hold?
has a master's degree, but some could have a doctorate or bachelor's degree.
has a doctorate degree, but some could have a master's or bachelor's degree.
has a bachelor's degree, but some could have a master's degree.
has a master's degree, but some could have a doctorate degree.
Answer:
I would say has a bachelor's degree, but some could have a master's degree.
But from what I know I believe they need both a master's and a bachelor's degree.
Explanation:
Answer:
c / has a bachelor’s degree, but some could have a masters degree
Explanation:
An equivalent description of the holding of a receive-floating pay-fixed swap is as follows: A. An exchange of a long position in a fixed-rate bond for a short position in a floating-rate note. B. A portfolio of long positions in forward-rate agreements (FRAs) for each swap payment date, all at the same fixed rate as the swap. C. All of the above. D. A bond that pays the fixed rate minus the floating rate each period.
Answer:
The correct answer is
A) An exchange of a long position in a fixed-rate bond for a short position in a floating-rate note.
Explanation:
Swapping a fixed interest for a floating one can occur if the fixed interest tenure in comparison to a floating exchange rate becomes less expensive for the entity who took the loan.
Also executing a swap in interest rates (that is giving up the fixed tenure for the floating tenure) helps to ensure that liabilities are kept at minimum whilst assets are maximised.
It is important to note that the capital remains unmodified.
Cheers
Type the correct answer in the box, Spell all words correctly.
What is the name given to the path goods take to go from the manufacturer to the consumer?
The path goods take to go from the manufacturer to the consumer is called the
Answer:
It's called the channel of distribution
Answer:
The answer is: Distribution channel
Explanation:
I got it right.
A company, which is currently operating at full capacity, has sales of $2,480, current assets of $820, current liabilities of $510, net fixed assets of $1,670, and a 5 percent profit margin. The company has no long-term debt and does not plan on acquiring any. The company does not pay any dividends. Sales are expected to increase by 10 percent next year. If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year
Answer:
$61.60
Explanation:
Equity funding need = Projected assets - Projected liabilities - Current equity - Projected increase in retained earnings
Equity funding need = $2,739 - $561 - $1,980 - $136.40
Equity funding need = $61.60
Workings
Projected assets = (Current assets + Fixed assets) * 1.10 = 820+1,670 * 1.10 = $2,739
Projected liabilities = Current liabilities * 1.10 = 510 * 1.10 = $561
Current equity = Current assets + Fixed assets - Current liabilities = 820 + 1,670 - 510 = $1,980
Projected increase in retained earnings = Sales*5% * 1.10 = $2,480*5% * 1.10 = 124*1.10 = $136.40
The DeVille Company reported pretax accounting income on its income statement as follows:_____.
2018 $440,000
2019 360,000
2020 430,000
2021 470,000
Included in the income of 2018 was an installment sale of property in the amount of $66,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $26,400 in 2019, $33,000 in 2020, and $6,600 in 2021. Included in the 2020 income was $28,000 interest from investments in municipal bonds. The enacted tax rate for 2018 and 2019 was 30%, but during 2019 new tax legislation was passed reducing the tax rate to 25% for the years 2020 and beyond.
Required:
Prepare the year-end journal entries to record income texes for the year 2018-2021.
Answer:
Entries and their narrations are posted below
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
Journal Entries
2018
Dr Tax Expenses 132000
Cr Deferred Tax Liability (66000*30%) 19800
Cr Tax Payable (374000*30%) 112200
2019
Dr Tax Expenses 106,020
Dr Deferred Tax Liability (66000-26400)*25% 9,900
Cr Tax Payable (386400*30%) 115,920
2020
Dr Tax Expenses 100500
Dr Deferred Tax Liability (33000*25%) 8250
Cr Tax Payable (430000-28000+33000)*25% 108750
2021
Dr Tax Expenses 117750
Dr Deferred Tax Liability (5600*25%) 1400
Cr Payable (470000+6600)*25% 119150
Working
2018
Accrued Income 440000
Less: Instalment Revenue -66000
Taxable Income 374000
2019
Accrued Income 360000
Add: Instalment collection 26400
Taxable Income 386400
2020
Accrued Income 430000
Less: Interest from municipal Bonds -23000
Add: Instalment collection 28000
Taxable Income 435000
2021
Accrued Income 470000
Add: Instalment collection 6600
Taxable Income 476600
Lincoln’s landlord has included a clause in the rental contract that makes it possible for him to increase Lincoln’s monthly rent if taxes on the property go up. Which clause was included in the contract?
a. tariffs clause.
b. variable costs clause.
c. escalator clause.
d. elastic demand clause.
e. elevator clause.
Answer:
The appropriate answer is Option c (Escalator clause).
Explanation:
The landlord of Lincoln also put a disclaimer throughout the rental lease which allows him to raise the mortgage payment of Lincoln if property wages increase. The deal had an escalator clause.An Escalator clause would be a clause inside a leasing contract as well as rent disclosure that ensures the improvement in rent sum regardless of the reasons which were not under influence of all the participants. Throughout this situation the taxation on land is raised by that of the government therefore adjustment in taxes wasn't in the jurisdiction of all entities.The other options given aren't connected to just the given case. In such a way that the response above is right.
Look in a recent issue of The Wall Street Journal at "NYSE-Composite Transactions."a. What is the latest price of IBM stock? b. What are the annual dividend payment and the dividend yield on IBM stock? c. What would the yield be if IBM changed its yearly dividend to $1.50? d. What is the P/E on IBM stock? e. Use the P/E to calculate IBM’s earnings per share. f. Is IBM’s P/E higher or lower than that of Exxon Mobil? g. What are the possible reasons for the difference in P/E?
Answer:
A) $191.08
B) The annual dividend = $0.85 per share
dividend yield = 1.78%
C) 3.14%
D) 13.74
E) $13.91
F) IBM's P/E at 13.74 is higher than Exxon Mobil P/E at 11.29
G) The possible reasons for the difference in P/E is due to the difference in EPS earned by each company and also the difference in stock price of each company's stock
Explanation:
Referring the the recent issue of the wall street Journal at NYSE-Composite Transactions
A) The Latest price of IBM stock = $191.08
B) What are the annual dividend payment and the dividend yield on IBM stock
The annual dividend = $0.85 per share
dividend yield = 1.78%
C) calculate what the yield will become if yearly dividend is moved up to $1.50
first we find the price per share
price per share = annual dividend per share / current dividend yield
= 0.85 / 1.78% = 0.85 / 0.0178 = $47.75
since we now have the price per share value we can now calculate the dividend yield
dividend yield = annual dividend / price per share
= $1.50 / $47.75 = 0.0314
= 3.14 %
D) Calculate the P/E on IBM stock
= 13.74 times as it was traded for the last 12 months
E) calculate IBM's earnings per share using P/E
earnings per share = Price / P/E
Latest price of IBM stock = $191.08
P/E = 13.74
earnings per share = 191.08 / 13.74 = $13.91
F) IBM's P/E at 13.74 is higher than Exxon Mobil P/E at 11.29
G) The possible reasons for the difference in P/E is due to the difference in EPS earned by each company and also the difference in stock price of each company's stock
The value of what a Canadian-owned Tim Hortons produces in South Korea is included in the Canadian ________ and the South Korean ________
Answer: GNP; GDP
Explanation:
The value of what a Canadian-owned Tim Hortons produces in South Korea is included in the Canadian GNP and the South Korean GDP.
Gross National Product refers to the total amount of domestic production and foreign production that can be attributed to the residents of a nation.
This means that GNP includes the GDP and income earned by residents of the country in other countries but less the income earned by foreigners in the country. For Canada therefore, the value of goods produced by the Canadian company in South Korea will be added to the GNP.
Gross Domestic Product (GDP) on the other hand is simply the total final value of goods and services produced in a country regardless of if it was foreigners or residents doing the production. The value of what a Canadian-owned Tim Hortons produces in South Korea is therefore included in South Korea's GDP.
. If a T-bill promises to repay $10,000 in one year and the market interest rate is 6 percent, how much will the bill sell for in the market?
Answer:
market price = $9,433.96
Explanation:
a T-bill is basically a zero coupon bond, and the formula we can use to calculate its market price is:
market price = face value / (1 + i)ⁿ
face value (value at maturity) = $10,000i = 6%n = 1market price = $10,000 / (1 + 6%) = $10,000 / 1.06 = $9,433.96
The beginning balance in the raw materials inventory account was $25,000. During the month, the company made raw materials purchases amounting to $54,000. At the end of the month, the balance in the raw materials inventory account was $37,000. Direct labor cost was $25,000 and manufacturing overhead cost was $62,000. The beginning balance in the work in process account was $22,000 and the ending balance was $23,000. The beginning balance in the finished goods account was $44,000 and the ending balance was $50,000. Selling expense was $21,000 and administrative expense was $38,000. The prime cost for November was:
Answer:
$67,000
Explanation:
The computation of prime cost is shown below:-
Total conversion cost = Direct labor + Manufacturing overhead
= $25,000 + $62,000
= $87,000
Total prime cost = Beginning raw material + Raw material purchased - Ending raw material + Direct labor
= $25,000 + $54,000 - $37,000 + $25,000
= $67,000
hence, the prime cost is $67,000
Delta Diamonds uses a periodic inventory system. The company had five one-carat diamonds available for sale this year: one was purchased on June 1 for $800, two were purchased on July 9 for $900 each, and two were purchased on September 23 for $950 each. On December 24, it sold one of the diamonds that was purchased on July 9. Using the specific identification method, its ending inventory (after the December 24 sale) equals:
Answer: $2650
Explanation:
Using the specific identification method, its ending inventory (after the December 24 sale) will be:
Units for sale = 5 units
Units sold = 1
It should be noted that the unit that was sold was the one that was bought on July 9th.
Ending units will now be:
= $800 + ($2 × $900) + $950 - $900
= $800 + $1800 + $950 - $900
= $3550 - $900
= $2650
A double-entry accounting system is an accounting system: Multiple Choice That records each transaction twice. That records the effect of each transaction in at least two accounts with equal debits and credits. In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits. That allows total credits to be greater than total debits. That allows total debits to be greater than total credits.
Answer:
That records the effect of each transaction in at least two accounts with equal debits and credits.
Explanation:
A double-entry accounting system is the accounting system in which it shows the impact of each transaction in terms of debit and credit. In this the amount of credit should be equivalent to the amount of credit that means both the amount should be equivalent to each other
hence, the second option is correct and the same is to be considered
Lusk Corporation produces and sells 15,500 units of Product X each month. The selling price of Product X is $25 per unit, and variable expenses are $19 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $74,000 of the $105,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the monthly financial advantage (disadvantage) for the company of eliminating this product should be: Multiple Choice $43,000 $12,000 ($43,000) ($62,000)
Answer:
($62,000)
Explanation:
Calculation for the monthly financial advantage (disadvantage) for the company of eliminating this product
Keep Product X Drop Product X Difference
Sales $387,500 $0 $(387,500)
($25 per unit *15,500=$387,500)
Variable expenses $294,500 $0 $294,500
($19 per unit*15,500=$294,500)
Contribution margin $93,000 $0 $(93,000)
Fixed expenses $105,000 $74,000 $31,000
Net operating income (loss)$(12,000)$(74,000)$(62,000)
Therefore the monthly financial advantage (disadvantage) for the company of eliminating this product will be decrease in Net operating amount of ($62,000).
The Josey Company uses the weighted average method. The beginning work in process consists of 6,000 units (100% completed as to materials and 50% complete as to conversion costs). The number of units completed was 130,000. The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs). What are the equivalent units of production for conversion costs
Answer:
Total equivalent units= 135,000 units
Explanation:
The weighted average method blends the costs and units of the previous period with the costs and units of the current period.
Conversion costs:
Units completed and transferred out= 133,000 units
Ending WIP= 10,000*0.2= 2,000 units
Total equivalent units= 135,000 units
You estimate that by the time you retire in 35 years, you will have accumulated savings of $2 million. If the interest rate is 8% and you live 15 years after retirement, what annual level of expenditure will those savings support?
Answer:
We can use the present value of an annuity formula to determine the annual distribution. I'm assuming that your distributions will be made in a similar manner to an annuity due (the first payment happens when you retire).
annual distribution = principal balance / PV annuity factor
principal balance = $2,000,000PV factor annuity due, 8%, 15 periods = 9.24424annual distribution = $2,000,000 / 9.24424 = $216,350.94
if instead, the first distribution is received at the end of the first year of retirement, then the annual distribution will be:
annual distribution = principal balance / PV annuity factor
principal balance = $2,000,000PV factor ordinary annuity, 8%, 15 periods = 8.55948annual distribution = $2,000,000 / 8.55948 = $233,659.05
