Answer:
We find the equivalent units for both Weighted Average Method and FIFO separately for cost calculations . These are given along as required.
Explanation:
Titon Sports
Equivalent Units
Weighted Average Method
Particulars Units % of Completion Equivalent Units
Materials --Conversion Materials --Conversion
Completed and
Transferred 52,000 100% 100% 52,000 52,000
Ending work
in process 21,500 0% 20% Zero 4300
Equivalent Units 52,000 56,300
Particulars Units % of Completion Equivalent Units
Transferred In Transferred In
Completed and
Transferred 52,000 100% 52,000
Ending work
in process 21,500 100% 21,500
Equivalent Units 73500
Particulars Transferred In Materials Conversion Total
Costs
Beginning WIP $ 45,360 $0 $17,660
Total costs added $154,560 $28,080 $89,310
Total Costs 199920 $28,080 106970 $334970
b. Conversion cost per equivalent unit during March
Total Conversion Costs/ Total Equivalent Units Conversion
= 106970/56,300 = $1.9 per Equivalent Unit
Materials cost per equivalent unit during March
Total Materials Costs/ Total Equivalent Units Materials
= 28080/52000 = $ 0.54 per Equivalent Unit
Transferred In cost per equivalent unit during March
Total Transferred In Costs / Total Transferred In Units
= 199920 / 73500 = 2.72
C. Cost Assigned To Transferred Out Goods $ 268,320
Materials = 52,000*0.54= $ 28080
Conversion = 52,000* 1.9= 98800
Transferred in Units = 2.72 * 52000= 141440
Cost Assigned To Ending Work In Process $66650
Conversion = 4300* 1.9= 8170
Transferred in Units = 2.72 * 21500= 58,480
C. Total Costs Assigned = Transferred Out + Ending = $334970
d. Conversion cost assigned to the ending work in process: $8170
Conversion = 4300* 1.9= 8170
We see the difference between the weighted average and FIFO method is that the FIFO method only accounts for the current period costs not the total the costs.Where as the weighted method includes all the costs from preceeding department and also current costs.
e.Titon Sports
Equivalent Units
FIFO Method
Particulars Units % of Completion Equivalent Units
Materials --Conversion Materials --Conversion
Completed and
Transferred 52,000 100% 100% 52,000 52,000
Ending work
in process 21,500 0% 20% Zero 4300
Less
Beg. WIP 17500 0% 60% Zero 10500
Equivalent Units 52,000 45,800
Particulars Units % of Completion Equivalent Units
Transferred In Transferred In
Completed and
Transferred 52,000 100% 52,000
Ending work
in process 21,500 100% 21,500
Less
Beg. WIP 17500 100% 17500
Equivalent Units 56000
f. Materials cost per equivalent unit during March (FIFO)
Total Materials Costs/ Total Equivalent Units Materials
= 28080/52000 = $ 0.54 per Equivalent Unit
g. Cost Assigned To WORK In Process (FIFO) $ 8385
Conversion cost per equivalent unit during March
Total Conversion Costs/ Total Equivalent Units Conversion
= 89310/ 45,800 = $1.95 per Equivalent Unit
Conversion = 4300* 1.95= $ 8385
h. Cost Assigned To Transferred Out Goods $ 273,000
Materials = 52,000*0.54= $ 28080
Conversion = 52,000* 1.95= 101,400
Transferred In cost per equivalent unit during March
Total Transferred In Costs / Total Transferred In Units
= 154560 / 56,000 = 2.76
Transferred in Units Costs = 2.76 * 52000= 143520
Joy, a sales representative, is placed in a group with an engineer from operations, a human resource specialist, and a financial manager to develop new uses for one of the company's existing products in order to increase sales. This group is a
Answer:
Cross-functional team.
Explanation:
This is explained to be a group that comprises of great experts, revolutionists, and thinkers from different work sectors that come together, brainstorm towards a collective goal. This can be seen in different working sector or parts of economy or societies. The case treated above is that of a company sourcing for ways to increase its product orders. There must have been a way this(marketing) has been done, but here, they require different and more technical approach to it; that is primarily the reason to recruit a cross-functional team.
The United States Bureau of Labor Statistics (BLS) categorizes individuals in the United States into three broad groups based on their employment status. Categorize each individual as employed, unemployed, or not in the labor force according to BLS standards. Employed Unemployed Not in the labor force
A) Brian is a 31-year-old who would like a job, is available to work, and most recently sought work six weeks ago.
B) Sarah is a 72-ycar-old retiree who has no intention of returning to work.
C) Bruce is a 57-year-old who has been without a job for two years, is available for work, and most recently sought work last week
D) James is a 35-year-old who most recently sought work two years ago.
E) Chung is a 29-year-old single parent working only 10 hours a week, but seeking more hours.
Answer: Please see below
Explanation: The Bureau of Labor Statistics (BLS) is an agency that provides monthly data by survey on 60,000 households for employed, unemployed and not in the labor force individuals using data provided by the Current Population Survey -CPS.
TheY make classifications on
1. individuals employed if they are being paid by employers, have their own business , farm, or without pay for at least 15 hours if they work in a family business, also, even if individuals here are periodically absent from work due to circumstances known and unknown they are regarded as employed.
2. individuals unemployed if not employed during the reference week , usually 4 weeks but are open to work and seek for employment within the reference week.
3. individuals not in the labor force eg---- elderly who have retired and cannot go back to work, children and those who cannot work due to medical insufficiency. It also applies for individuals who are not actively seeking for employment especially within 4weeks
A. Brian is a 31-year-old who would like a job, is available to work, and most recently sought work six weeks ago. --- Not in the labor force as he has not sought for work in the past 4weeks even though he would like a job
B) Sarah is a 72-year-old retiree who has no intention of returning to work.-- Not in the labour force as she has retired
C) Bruce is a 57-year-old who has been without a job for two years, is available for work, and most recently sought work last week----Unemployed. since he is actively looking for work in the past week and is available to work.
D) James is a 35-year-old who most recently sought work two years ago.-- Not in the labor force as its been 2 years he sought for work.
.
E) Chung is a 29-year-old single parent working only 10 hours a week, but seeking more hour--- Employed, he is a paid employee.
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
Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of 117 ¼. The effective interest method is used to allocate interest expense. 1. Using the implied selling price of 117 ¼, what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these bonds? 3. What amount of bond interest expense is recorded on the first interest payment date?
Answer:
1. Cash proceed is $281,400.
2. Total bond interest expenses over the bond llife is $318,600.
3. Bond interest expense on first interest payment date is $11,256.
Explanation:
1. Using the implied selling price of 117 ¼, what are the issuer's cash proceeds from issuance of these bonds?
Selling price = 117 ¼ / 100 = 1.1725
Cash proceed = Bond face value * Bond selling price = $240,000 * 1.1725 = $281,400.
2. What total amount of bond interest expense will be recognized over the life of these bonds?
Total interest payment = $240,000 * 10% * 15 = $360,000
Total repayment = Total interest payment + Bond par value = $360,000 + $240,000 = $600,000
Total bond interest expenses over the bond llife = Total repayment - Cash proceed/Amount borrowed = $600,000 - $281,400 = $318,600
3. What amount of bond interest expense is recorded on the first interest payment date?
Bond interest expense on first interest payment date = Cash proceed * Annual market rate on issue date * (6/12) = $281,400 * 8% * 0.5 = $11,256
Assume that the. Top level management team has accepted your recommendation how can their effectiveness be evaluated three months after implementation
The correct answer to this open question is the following.
Although the question provides no context or references, we can say that if the top-level management team has accepted your recommendation their effectiveness can be evaluated three months after implementation in the following way.
The recommendation needs to establish some goals that have to be accomplished in the short, medium, and long-range. After the first three months, you establish your exéctations and you should have included your KPIs or Key Performance Indicators in order to do the proper evaluation and knowing if the recommendations were valid or attainable. Lack of goals or KPIs to evaluate the recommendation would end up complicating the evaluation process.
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:
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
Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period that Differs from the Data Period Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:Month Labor Cost Employee HoursJanuary $7,300 410February 10,199 600March 8,440 720April 10,087 660May 8,790 530June 7,831 400July 9,790 620August 7,750 360Assume that this information was used to construct the following formula for monthly labor costs.Total Labor Cost = - $7,059 + ($1.92 X Employee Hours)Required:Assume that 3,900 employee hours are budgeted for the coming year. Use the total labor cost formula to make the following calculations:1. Calculate the total variable labor costs for the coming year.2. Calculate the total fixed labor costs for the coming year.3. Calculate total labor costs for the coming year.
Answer:
Total fixed costs= $7,059
Total variable cost= $7,488
Total cost= $14,547
Explanation:
Giving the following information:
Total Labor Cost = -7,059 + ($1.92*Employee Hours)
Required:Assume that 3,900 employee hours are budgeted for the coming year.
The total fixed costs remain constant with production:
Total fixed costs= 7,059
Total variable cost= 1.92*3,900= 7,488
Total cost= $14,547
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.
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 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.................................. _______
Consider 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.
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.
The concept of project portfolio management holds that firms should:__________.
1. Focus on short-term strategic goals.
2. Regard all projects as unified assets.
3. Focus on long-term constraints.
4. Manage projects as independent entities.
Answer:
2. Regard all projects as unified assets.
Explanation:
Project Portfolio management allows companies and enterprises a wide range for planning and resource allocation. This concept of project portfolio management holds that firms should regard all projects as unified assets. This means that they should hold and regard all of their projects as a single unified portfolio and manage it in that way. Allowing for easier decision making and fewer errors.
2-B. A farmer estimates that if he harvests his soybean crop now, he will obtain 1,000 bushels, which he can sell at $3.00 per bushel. However, he estimates that this crop will increase by an additional 1,200 bushels of soybeans for each week he delays harvesting, but the price will drop at a rate of 50 cents per bushel per week; in addition, it is likely that he will experience spoilage of approximately 200 bushels per week for each week he delays harvesting. When should he harvest his crop to obtain the largest net cash return, and how much will be received for his crop at that time
Answer:
the farmer should wait for two weeks in order to be able to obtain 3,000 bushels and sell then at $2 per bushel, total revenue $6,000
Explanation:
time to harvest bushels price revenue
today 1,000 $3 $3,000
1 week 2,000 $2.50 $5,000
2 weeks 3,000 $2 $6,000
3 weeks 4,000 $1.50 $6,000
4 weeks 5,000 $1 $5,000
5 weeks 6,000 $0.50 $3,000
net increase per week = +1,200 bushels - 200 bushels = 1,000 bushels
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
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
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.
(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.
Inventory records for Dunbar Incorporated revealed the following:Date Transaction Numberof Units UnitCost Apr. 1 Beginning inventory 550 $2.33 Apr. 20 Purchase 310 2.68 Dunbar sold 560 units of inventory during the month. Ending inventory assuming weighted-average cost would be (Do not round your intermediate calculations. Round weighted-average unit cost to four decimals if necessary. Round your answer to the nearest dollar amount):a. $737.b. $694.c. $817.d. $752.
Answer:
Ending inventory assuming weighted-average cost would be $737
Explanation:
According to the given data we have the following:
Date Transaction Number of Units Unit Cost Total
Apr. 1 Beginning inventory 550 2.33 $1,281.5
Apr. 20 Purchase 310 2.68 $830.8
Total 860 $2,112.3
Therefore, Weighted avearge cost = $2,112.3/860= $2.4562
Ending inventory units = 860-560 = 300
Therefore, Ending inventory assuming weighted-average cost=300*2.4562=$737
Ending inventory assuming weighted-average cost would be $737
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
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
Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company has the following transactions.
1. January 1 Issue 10,000 shares of common stock in exchange for $25,000 in cash.
2. January 5 Purchase land for $15,500. A note payable is signed for the full amount.
3. January 9 Purchase storage container equipment for $7,300 cash.
4. January 12 Hire three employees for $1,300 per month.
5. January 18 Receive cash of $11,300 in rental fees for the current month.
6. January 23 Purchase office supplies for $1,300 on account.
7. January 31 Pay employees $3,900 for the first month's salaries.
Required:
1. Record each transaction. Green Wave uses the following accounts: Cash, Supplies, Land, Equipment, Common Stock, Accounts Payable, Notes Payable, Service Revenue, and Salaries Expense.
2. Post each transaction to T-accounts and compute the ending balance of each account. Since this is the first month of operations, all T-accounts have a beginning balance of zero.
3. After calculating the ending balance of each account, prepare a trial balance.
Answer:
Required 1.
January 1
Cash $25,000 (debit)
Common Stock $25,000 (credit)
January 5
Land $15,500 (debit)
Notes Payable $15,500 (credit)
January 9
Equipment $7,300 (debit)
Cash $7,300 (credit)
January 12
Salaries Expense $3,900 (debit)
Accounts Payable $3,900 (credit)
January 18
Cash $11,300 (debit)
Service Revenue $11,300 (credit)
January 23
Supplies $1,300 (debit)
Accounts Payable $1,300 (credit)
January 31
Accounts Payable $3,900 (debit)
Cash $3,900 (credit)
Required 2.
Cash = = $25,100
Common Stock = $25,000
Land = $15,500
Notes Payable = $15,500
Equipment = $7,300
Salaries Expense = $3,900
Accounts Payable = $1,300
Service Revenue = $11,300
Supplies = $1,300
Required 3.
Debit Credit
Cash $25,100
Common Stock $25,000
Land $15,500
Notes Payable $15,500
Equipment $7,300
Salaries Expense $3,900
Accounts Payable $1,300
Service Revenue $11,300
Supplies $1,300
Totals $53,100 $53,100
Explanation:
Calculation of Account Balances :
Cash = $25,000 - $7,300 + $11,300 - $3,900 = $25,100
Common Stock = $25,000
Land = $15,500
Notes Payable = $15,500
Equipment = $7,300
Salaries Expense = $3,900
Accounts Payable = $3,900 + $1,300 - $3,900 = $1,300
Service Revenue = $11,300
Supplies = $1,300
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.
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
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%
Ralph Young was a commercial tour boat operator on the northern coast of Kauai, Hawaii. He was licensed by the state of Hawaii to operate his boat in Hanalei Bay. The U.S. Department of Transportation and the U.S. Coast Guard had also specifically granted Young an unrestricted license to operate his boats in Hanalei Bay. Hawaii subsequently passed a law that banned all commercial use of Hanalei Bay. The state refused to renew Young's state license and he was not allowed to operate his vessel under his federal licenses. Young filed a lawsuit against the state alleging that the state law that prohibited him from operating his boat conflicted with the federal law that authorized him to do so. What would be the court's most likely response to Ralph's lawsuit?
a. The court probably found that the state law was unconstitutional under the supremacy cause.
b. The court probably found that the state law was unconstitutional under the equal protection clause.
c. The court probably found that the state law was constitutional under the supremacy cause.
d. The court probably found that the state law was constitutional under the due process cause.
Answer:
The correct answer is option (a) The court probably found that the state law was unconstitutional under the supremacy cause.
Explanation:
Solution
From the given questions it states that, What would be the court's most likely response to Ralph's lawsuit.
The court's decision response would be that, I that when the situation arises or occurs in that case, where there is a conflict which arises between federal and state law then in that case federal law must be applied.
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.
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.
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.
