Sheffield Manufacturing spends 49 minutes per order on non-value-added activities. The total manufacturing cycle time is 1.8 hours. Calculate the manufacturing cycle efficiency. (Round answer to 1 decimal place, e.g. 5.1%.)
Answer:
The manufacturing cycle efficiency is 54.44%
Explanation:
Sheffield manufacturing spends 49 minutes per order
The total manufacturing cycle rime is 1.8 hours
Firstly we Convert 49 minutes to hours=49/60=0.82 hours, thus Sheffield manufacturing spends 49 minutes per order
Percentage of time spent on non-value added activities = 100% -Manufacturing cycle efficiency
(0.82/1.8)*100 = 100%-Manufacturing cycle efficiency
0.4555*100 = 100%-Manufacturing cycle efficiency
45.56% = 100%-Manufacturing cycle efficiency
Manufacturing cycle efficiency=100%-45.56% = 54.44%
At the end of August, Rothchild Company had completed Jobs 40 and 42. Job 40 is for 10,000 units, and Job 42 is for 11,000 units.The following data relate to these two jobs:On August 4, Rothchild Company purchased on account 12,000 units of raw materials at $14 per unit. On August 24, raw materials were requisitioned for production as follows: 5,000 units for Job 40 at $8 per unit and 6,200 units for Job 42 at $14 per unit.During August, Rothchild Company accumulated 3,500 hours of direct labor costs on Job 40 and 4,200 hours on Job 42. The total direct labor was incurred at a rate of $25.00 per direct labor hour for Job 40 and $23.50 per direct labor hour for Job 42.Rothchild Company estimates that total factory overhead costs will be $810,000 for the year. Direct labor hours are estimated to be 90,000.a. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August.Job 40 $Job 42 $b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to two decimal places.Job 40 $Job 42 $
Answer:
1.
The balance of Job 40 = $159000
The balance of Job 42 = $223300
2.
The cost per unit for job 40 = $15.90 / unit
The cost per unit for job 42 = $20.30 / unit
Explanation:
The task here is to:
1. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August.
2. Determine the cost per unit for Jobs 40 and 42 at the end of August.
Now; to start with the first question .
From the data given ; we can represents our given data in an imaginary table form and determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August.
Let's have a go on that:
Particulars Job 40 Job 42
Raw material cost
(5000 units × $8 /unit) $40,000
(6200 units × $14 /unit) $ 86,800
Direct labor cost
(3,500 hours × $25 / labor hour) $87,500
(4,200 hours × $23.50 / labor hour) $98,700
Factory Overhead Cost
($810,000/ 90,000 labor hours)×3500 $31,500
hours
(($810,000/ 90,000 labor hours)×4200 $37,800
hours
Total cost $159000 $223300
Thus;
The balance of Job 40 = $159000
The balance of Job 42 = $223300
2.
Cost per unit = Total cost of the job / Number of Units produced
For Job 40; the cost per unit will be = $159000/ 10000
= $15.90 / unit
For Job 42; the cost per unit will be = $223300/ 11000
= $20.30 / unit
Thus;
The cost per unit for job 40 = $15.90 / unit
The cost per unit for job 42 = $20.30 / unit
Roman is the chief executive officer of Salty Snax Corporation. Roman’s responsibilities include decisions on product development, marketing, and other significant business directions. Roman is subject to the approval and oversight of Salty Snax’s board of directors. Teri is a Salty Snax manager whose duties include the firm’s day-to-day hiring, firing, purchasing, and selling. Umberto is a Salty Snax salesperson, whose daily activities are controlled by Teri. Velma writes sales manuals and promotional materials for Salty Snax’s products according to Roman’s instructions and subject to Salty Snax’s control, but has no dealings with the company’s customers or suppliers. Warren writes copy on a contract-per-project basis and is not otherwise subject to Salty Snax’s control.
Who is a principal? Who is an agent? Who is an employee? Who is an independent contractor?
Answer:
The correct answers are:
Roman is a principal
Velma is an agent
Umberto is an employee
Warren is an independent contractor
Explanation:
Roman is a principal due to the fact that he is the one who is in the highest position of them all and he has no superior in the company
Velma is an agent because she is under the control of the company.
Teri is an employee because she has to deal with the day-to-day operations and has a superior. And Umberto is an employee because he is in the lowest positions and is controlled by Teri
Warren is an independet contractor because he is not subejct to the company's control
Little Bobby, who is 5 years old, finds his older brother’s "Extendo Sword", a toy sword about a foot long that is sharp and springs out to 5 feet long when a button is pushed on the handle. The label on the sword says it is safe for children over 3 years of age. Bobby pushes the button when the sword is pointed toward his face and, just as all properly functioning "Extendo Swords" do, the sword shot out. Bobby is injured and under products liability, sues the toy store that sold the toy. Bobby will most likely: lose because of contributory negligence. lose if he cannot prove negligence on the part of the toy store. win on the basis of a manufacturing defect. win on the basis of a design defect. lose if the defendant can show that the sword was a state of the art design.
Answer: Win on the basis of a manufacturing defect
Explanation:
Under Products Liability, those who are involved in making or distributing a product which causes injuries such as manufacturers, distributors, suppliers, and retailers can be held liable for said injuries.
The product was stated to be safe for children above the age of 3 to be able to play with and yet injured Bobby who is 5 years of age. This means that the product is defective in design and so if Bobby can prove this then he should win the case.
Acquired $51,000 cash from the issue of common stock. Paid $13,600 cash in advance for rent. The payment was for the period April 1, Year 1, to March 31, Year 2. Performed services for customers on account for $104,000. Incurred operating expenses on account of $43,000. Collected $79,500 cash from accounts receivable. Paid $37,000 cash for salary expense. Paid $34,400 cash as a partial payment on accounts payable. Adjusting Entries Made the adjusting entry for the expired rent. (See Event 2.) Recorded $5,600 of accrued salaries at the end of Year 1. Events for Year 2 Paid $5,600 cash for the salaries accrued at the end of the prior accounting period. Performed services for cash of $53,000. Purchased $4,400 of supplies on account. Paid $15,300 cash in advance for rent. The payment was for one year beginning April 1, Year 2. Performed services for customers on account for $120,000. Incurred operating expenses on account of $57,500. Collected $105,000 cash from accounts receivable. Paid $55,000 cash as a partial payment on accounts payable. Paid $33,100 cash for salary expense. Paid a $13,000 cash dividend to stockholders. Adjusting Entries Made the adjusting entry for the expired rent. (Hint: Part of the rent was paid in Year 1.) Recorded supplies expense. A physical count showed that $700 of supplies were still on hand. Problem 13-34A Part f f. Prepare a post-closing trial balance for December 31, Year 1.
Answer:
Post-Closing Trial Balance for December 31, Year 1:
Debit Credit
Common Stock $51,000
Cash $45,500
Rent Prepaid $3,400
Accounts Receivable $24,500
Accounts Payable $8,600
Salaries Payable $5,600
Retained Earnings $8,200
Total $73,400 $73,400
Explanation:
a) A post-closing trial balance lists balance sheet accounts containing positive balances for a financial reporting period. It agrees the total of all debit and credit balances. It includes the result from Income Statement.
b) The preparation of a trial balance may be pre-closing or post-closing. A pre-closing trial balance includes balances of both temporary and permanent accounts, and a post-closing trial balance excludes the temporary account includes the company's closing entries.
c) Cash Account:
Debit Credit Balance
Common Stock $51,000 $51,000
Rent $13,600 $37,400
Accounts Receivable $79,500 $116,900
Salaries Expense $37,000 $79,900
Accounts Payable $34,400 $45,500
d) Accounts Receivable
Debit Credit Balance
Service Revenue $104,000 $104,000
Cash $79,500 $24,500
e) Accounts Payable
Debit Credit Balance
Operating Expense $43,000 $43,000
Cash $34,400 $8,600
f) Salaries Payable
Debit Credit Balance
Salaries Expense $5,600 $5,600
g) Rent Prepaid
Debit Credit Balance
Cash $13,600 $13,600
Rent Expense $10,200 $3,400
h) Income Statement
Service Revenue $104,000
less Operating Exp 43,000
Gross Profit 61,000
less Expenses:
Rent 10,200
Salaries ($37,000 + 5,600) 42,600
Net Income $8,200
Pinnacle Corp. budgeted $259,470 of overhead cost for the current year. Actual overhead costs for the year were $209,420. Pinnacle's plantwide allocation base, machine hours, was budgeted at 49,190 hours. Actual machine hours were 56,270. A total of 102,050 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is:
Answer:
Predetermined manufacturing overhead rate= $5.275 per machine-hour
Explanation:
Giving the following information:
Pinnacle Corp. budgeted $259,470 of overhead cost for the current year.
Pinnacle's plantwide allocation base, machine hours, was budgeted at 49,190 hours.
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 259,470/49,190
Predetermined manufacturing overhead rate= $5.275 per machine-hour
10. Leon, a minor, signed a contract with Step-Up Employment Agency, in which Leon promised to pay a fee if Step-Up secured him a job as a pianist. Step-Up did find suitable employment, but Leon refused to pay the $500 fee since he was a minor. Can Step-Up recover the fee
Answer: No. Step Up can't recover the fee.
Explanation:
From the information given in the question, we are told that Leon, who is a minor, signed a contract with Step-Up Employment Agency, where he promised to pay a fee on the condition that Step-Up Employment Agency gets him a job as a pianist. Leon tyem refused to pay the $500 after h was given the job.
In this scenario, for Step Up Employment Agency to get their fee, that means they must have signed a legal contract with Leon. From them to sign a legal contract, the person must be a major but we are told that Leon is a minor. Even if there was a legal contract, it will be void since Leon is a minor. Therefore, Set -Up Employment agency will not be able to recover the fee.
Suppose on Friday night you have a choice to go either to a Katy Perry concert or a Lady Gaga concert. You won a free ticket to see Katy Perry. You would pay as much as $180 to see Lady Gaga perform, but tickets to her show cost $100 . Assume that you end up going to the Katy Perry concert. Since you went to the Katy Perry concert, you must be willing to pay at least $________to see Katy Perry.
Answer: $100
Explanation:
From the information, on a Friday night, you have the choice to either go to a Katy Perry concert or a Lady Gaga concert. You won a free ticket to see Katy Perry but you would pay as much as $180 to see Lady Gaga perform, even thought the tickets to her show cost $100.
This illustrates that the person must be willing to pay at least $100 to see Katy Perry. Since the person wa.willing to pay $180 for Lady Gaga even when the tickets were$100, then you should be able to pay at least $100 to see Perry
Find the future value of a five-year $113,000 investment that pays 10.00 percent and that has the following compounding periods: (Do not round intermediate calculations, round final answers to 2 decimal places, e.g. 15.25.)
Answer: Future Value FV = 169,500
Explanation:
The information given to us are;
Present value PV = 113000
Interest R = 10% = 0.01
number of years T = 5
Future value FV = ?
So using the formula
FV = PV * [1 + (R * T)],
We input our value
FV = 113000 * [ 1 + ( 0.1 * 5) ]
FV = 113000 * [ 1 + 0.5]
FV = 113000 * 1.5
FV = 169500
JBC Corporation is owned 20 percent by John, 30 percent by Brian, 30 percent by Charlie, and 20 percent by Z Corporation. Z Corporation is owned 80 percent by John and 20 percent by an unrelated party. Brian and Charlie are brothers. Answer each of the following questions about JBC under the constructive ownership rules of Section 267:<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />a. What is John's percentage ownership?b. What is Brian's percentage ownership?c. What is Charlie's percentage ownership? _________%d. If Brian sells property to JBC for a $6,000 loss, what amount of that loss can be recognized for tax purposes (before any annual limitations)?
Answer:
a. What is John's percentage ownership?
36%b. What is Brian's percentage ownership?
60%c. What is Charlie's percentage ownership?
60%d. If Brian sells property to JBC for a $6,000 loss, what amount of that loss can be recognized for tax purposes (before any annual limitations)?
$0Explanation:
JBC Corporation:
20 percent by John 30 percent by Brian30 percent by Charlie20 percent by Z CorporationZ Corporation:
80 percent by John 20 percent by an unrelated partyUnder constructive ownership rules of Section 267, family members included in constructive ownership are siblings, parents, grandparents, and children.
John owns = 20% + (20% x 80% of Z Corporation) = 36%
Brian = 30% + 30% (Charlie) = 60%
Charlie = 30% + 30% (Brian) = 60%
. Markets and competition Identical products, as well as a large number of buyers and sellers, are characteristics of a market. In such markets, sellers of goods influence the prevailing market price, giving them the role of price in the market. True or False: The market for lettuce does not exhibit the two primary characteristics that define perfectly competitive markets. True
Answer:
The correct answer is: false.
Explanation:
The market for lettuce does exhibit the two primary characteristics that define perfectly competitive markets that is the fact of the sellers having identical products to offer and a large number of buyers and sellers are in the market and therefore is also known as an atomized market where both buyers and sellers do not influece in the price of the market but instead this price is already given by the market and accepted by both parties.
Lois Bragg owns a small restaurant in Boston. Ms. Bragg provided her accountant with the following summary information regarding expectations for the month of June. The balance in accounts receivable as of May 31 is $53,000. Budgeted cash and credit sales for June are $148,000 and $586,000, respectively. Credit sales are made through Visa and MasterCard and are collected rapidly. Seventy percent of credit sales is collected in the month of sale, and the remainder is collected in the following month. Ms. Bragg's suppliers do not extend credit. Consequently, she pays suppliers on the last day of the month. Cash payments for June are expected to be $713,000. Ms. Bragg has a line of credit that enables the restaurant to borrow funds on demand; however, they must be borrowed on the last day of the month. Interest is paid in cash also on the last day of the month. Ms. Bragg desires to maintain a $31,000 cash balance before the interest payment. Her annual interest rate is 9 percent.
Required:
a. Compute the amount of funds Ms. Bragg needs to borrow for June.
b. Determine the amount of interest expense the restaurant will report on the June pro forma income statement.
c. What amount will the restaurant report as interest expense on the July pro forma income statement?
Answer:
a. Compute the amount of funds Ms. Bragg needs to borrow for June.
$101,800b. Determine the amount of interest expense the restaurant will report on the June pro forma income statement.
$0c. What amount will the restaurant report as interest expense on the July pro forma income statement?
$763.50Explanation:
beginning balance AR $53,000
cash sales $148,000
credit sales $586,000 (70% collected in current month and 30% collected next month)
cash outflows = ($713,000)
minimum desired cash balance $31,000
Cash balance June 30 = $31,000 (beginning cash balance) + $53,000 (collected from May's AR) + $148,000 (cash sales) + $410,200 ($586,000 x 70%) = $642,200
Ending cash balance + outflows = $31,000 + $713,000 = $744,000
June's cash deficit = $744,000 - $642,200 = $101,800
interest expense due on July 31 = $101,800 x 9% x 1/12 = $763.50
Skysong Company, a machinery dealer, leased manufacturing equipment to Mays Corporation on January 1, 2017. The lease is for a 7-year period and requires equal annual payments of $30,259 at the beginning of each year. The first payment is received on January 1, 2017.Skysong had purchased the machine during 2016 for $95,000. Collectibility of lease payments is reasonably predictable, and no important uncertainties surround the amount of costs yet to be incurred by Skysong. Skysong set the annual rental to ensure an 9% rate of return.The machine has an economic life of 8 years with no residual value and reverts to Skysong at the termination of the lease.
Compute the amount of the lease receivable.The amount of the lease receivable $
Answer:
$ 165,998.41
Explanation:
The amount lease receivable is the present value of annual lease rental which is $30,259 per for 7 years.
The present value can be determined using the present value formula in excel given below:
=-pv(rate,nper,pmt,fv,type)
rate is the 9% rate of return per year
nper is the number of years the payment would be made which is 7
pmt is the regular lease payment per year which is $30.259
fv is the total payments payable by the leasee which is unknown
type is 1 since payment is received at the beginning of the year,it would have been zero if payments are expected end of the year
=-pv(9%,7,30259,0,1)=$165,998.41
Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.50 percent, a par value of $1,000 per bond, matures in 8 years, has a total face value of $3.6 million, and is quoted at 109 percent of face value. The second issue has a coupon rate of 5.94 percent, a par value of $2,000 per bond, matures in 21 years, has a total face value of $7.9 million, and is quoted at 95 percent of face value. Both bonds pay interest semiannually. The company's tax rate is 40 percent. What is the firm's weighted average aftertax cost of debt
Answer:
2.9652%
Explanation:
to determine the cost of debt we must use the FMV of the bonds plus the YTM:
first bond:
FMV = 1.09 x $1,000 = $1,090 x 3,600 bonds = $3,924,000
YTM = {C + [(F - P)/n]} / [(F + P)/2] = {17.5 + [(1000 - 1090)/16]} / [(1000 + 1090)/2] = (17.5 - 5.625) / 1045 = 1.136% x 2 = 2.27% annual
second bond:
FMV = 0.95 x $2,000 = $1,900 x 3,950 bonds = $7,505,000
YTM = {C + [(F - P)/n]} / [(F + P)/2] = {59.4 + [(2000 - 1900)/42]} / [(2000 + 1900)/2] = (59.4 + 2.38) / 1950 = 3.168% x 2 = 6.34% annual
total debt = $3,924,000 + $7,505,000 = $11,429,000
weighted average after tax cost of debt:
{($3,924,000/$11,429,000 x 2.27%) + ($7,505,000/$11,429,000 x 6.34%)} x (1 - 0.40) = (0.779% + 4.163%) x 0.6 = 4.942% x 0.6 = 2.9652%
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.
Match each of the following formulas and phrases with the term it describes.
Clear All
(Actual Direct Labor Hours - Standard Direct Labor Hours) × Standard Rate per Hour
(Actual Rate per Hour - Standard Rate per Hour) × Actual Hours
(Actual Price - Standard Price) × Actual Quantity
(Actual Quantity - Standard Quantity) × Standard Price
Standard variable overhead for actual units produced
Direct labor time variance
Direct labor rate variance
Direct materials price variance
Budgeted variable factory overhead
Direct materials quantity variance
Answer:
Results are below.
Explanation:
Match each of the following formulas and phrases with the term it describes.
A) (Actual Direct Labor Hours - Standard Direct Labor Hours) × Standard Rate per Hour
This is the formula for Direct labor time (efficiency) variance
B) (Actual Rate per Hour - Standard Rate per Hour) × Actual Hours
This is the formula for Direct labor rate variance
C) (Actual Price - Standard Price) × Actual Quantity
This is the formula for Direct materials price variance
D) (Actual Quantity - Standard Quantity) × Standard Price
This is the formula for Direct materials quantity variance
E) Standard variable overhead for actual units produced
Budgeted variable factory overhead
Removal for cause is a device used to prevent a prospective juror who is biased from serving on a case. true or false
Answer:
True
Explanation:
A Juror is a member of a jury in a court of law. It is expected that a Juror carries out his / her duty with a maximum objectivity without being partial or bias. For this reason , a set of criteria are used to screen potential Jurors during selection and if any is sound unqualified , such will be prevented from being part of a Jury.
The two methods of screening are peremptory where the attorney removes a Juror without giving any reason and the removal for cause where the potential Juror is removed because it is perceived that he will be impartial in the course of duty.
Security Brokers Inc. specializes in underwriting new issues by small firms. On a recent offering of Beedles Inc., the terms were as follows: Price to public: $5 per share Number of shares: 3 million Proceeds to Beedles: $14,000,000 The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $430,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price? $4.75 per share? Use minus sign to enter loss, if any. $ $5.75 per share? Use minus sign to enter loss, if any. $ $4 per share? Use minus sign to enter loss, if any. $
Answer:
a) -$180,000
b) $2,820,000
c) -$2,430,000
Explanation:
a) To calculate the profit or loss that the Security Brokers would incur if the issue were sold to the public at $4.75 per share, we have the following:
= (number of shares * price to public) - (proceeds to Beedles) - (out of pocket expenses)
= (3,000,000 * 4.75) - (14,000,000) - (430,000)
= -$180,000
The loss at $4.75 per share is $180,000
b) To calculate the profit or loss that the Security Brokers would incur if the issue were sold to the public at $5.75 per share, we have the following:
= (number of shares * price to public) - (proceeds to Beedles) - (out of pocket expenses)
= (3,000,000 * 5.75) - (14,000,000) - (430,000)
= $2,820,000
The profit at $5.75 per share is $2,820,000
c) To calculate the profit or loss that the Security Brokers would incur if the issue were sold to the public at $4 per share, we have the following:
= (number of shares * price to public) - (proceeds to Beedles) - (out of pocket expenses)
= (3,000,000 * 4) - (14,000,000) - (430,000)
= -$2,430,000
The loss at $4 per share is $2,430,000
Cite 3 reasons for and 3 reasons against rebuilding Greensburg as a “green town.”
Answer:
Following are the answer to this question:
Explanation:
3 reasons:
1. The tornado has always been something like never before in magnitude. Its city was damaged and 95% of its buildings are damaged. It gives you the chance to rebuild and green the city.
2. Building a green city would also inspire other cities to implement green technology in a tornado-ravaged area.
3. Greenburg is going to become a style icon and a model for the construction of a renewable town.
3 counter reason:
1. firstly, green technology is not inexpensive and would put public funds under pressure.
2. No one would cause a major lack of economic and private assets if Greenburg has been struck by a tornado of the very same size.
3. Its town can prioritize constructing tornado shelters that can respect and public assets rather than creating a green community.
Gramps purchased a joint survivor annuity that pays $500 monthly over his remaining life and that of his wife, Gram. Gramps is 70 years old and Gram is 65 years old. Gramps paid $97,020 for the contract. How much income will Gramps recognize on the first payment?
Answer:
$150
Explanation:
Calculation of how much income that Gramps will recognize on the first payment.
Since joint survivor annuity has 23.1 as the annual return multiple .
Calculation for Expected return
Expected return =Annual payment *Return multiple
($500*12) =$6,000
$6,000×23.1
=$138,600
Therefore :
$97,020/$138,600
=0.7×100
=70%
The 70% of each of the payment will be the return of capital while the 30%(100%-70%) will be the income.
Hence the first payment be:
30%×500
=$150
Therefore the amount of income that Gramps will recognize on the first payment will be $150
According to the efficient market hypothesis, which of the following statements is true?
1. High-beta stocks are consistently overpriced.
2. Low-beta stocks are consistently overpriced.
3. Positive alphas on stocks will quickly disappear.
4. Negative alpha stocks consistently yield low returns for arbitrageurs.
Answer:
Positive alphas on stocks will quickly disappear.
Explanation:
This is a theory that tells or show that stock prices affect or reflect in availability of the stock in the market. Stocks producing abnormal excess returns will increase in price to eliminate the positive alpha.
While in the case above, it is said that positive alphas on stock will quickly disappear.
Markets are efficient in determining the prices of financial securities.
Investors tend to be rational.
In the other hand, if the efficient market hypothesis lies or is not seen to be the truth, a larger role for regulators to intervene in stock bubbles to prevent a boom and bust is enabled.
Vista Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows. 1. Purchased 17,900 units of raw materials on account at a cost of $2.80 per unit. Standard cost was $2.60 per unit. 2. Issued 17,900 units of raw materials for jobs that required 17,520 standard units of raw materials. 3. Incurred 15,000 actual hours of direct labor at an actual rate of $4.80 per hour. The standard rate is $5.20 per hour. (Credit Factory Wages Payable.) 4. Performed 15,000 hours of direct labor on jobs when standard hours were 15,200. 5. Applied overhead to jobs at the rate of 100% of direct labor cost for standard hours allowed.
Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (Round answers to 0 decimal places, e.g. 125.)
Answer and Explanation:
The Journal entry is shown below :-
1. Raw Materials Inventory Dr, $46,540
Materials Price Variance Dr, $3,580
To Accounts Payable $50,120
(Being accounts payable is recorded)
Working note
Materials price variance = (Actual price - Standard Price) × Actual Quantity
= ($2.80 - $2.60) × 17,900
= $3,580 Unfavorable
Raw Material = Actual Quantity × Standard Price
= 17,900 × $2.60
= $46,540
Accounts Payable = Actual Quantity × Actual price
= 17,900 × $2.80
= $50,120
2. Work in Process Inventory Dr, $45,552
Materials Quantity Variance Dr, $988
To Raw Materials Inventory $46,540
(Being raw material inventory is recorded)
Working Note
Materials quantity variance = (Actual Quantity Used- Standard Quantity) × Standard Price
= (17,900 - 17,520) × $2.60
= $988 Unfavorable
Work in Process Inventory = Standard Quantity × Standard Price
= 17,520 × $2.60
= $45,552
Raw Material = Actual Quantity × Standard Price
= 17,900 × $2.60
= $46,540
3. Factory Labor Dr, $78,000
To Labor Price Variance $6,000
To Factory Wages Payable $72,000
(Being factory labor is recorded)
Working Note:-
Labor price variance = (Actual Rate - Standard Rate) × Actual Hour
= ($4.80 - $5.20) × 15,000
= $6,000 Favorable
Factory labor = Standard Rate × Actual Hour
= $5.20 × 15,000
= $78,000
Factory Wages Payable = Actual Rate × Actual Hour
= $4.80 × 15,000
= $72,000
4. Work in Process Inventory Dr, $79,040
To Labor Quantity Variance $1,040
To Factory Labor $78,000
(Being work in progress is recorded)
Working note
Labor Quantity variance = (Actual Hour - Standard Hour) × Standard Rate
= (15,000 - 15,200) × $5.20
= $1,040
Work in Process Inventory = Standard Hour × Standard Rate
= 15,200 × $5.20
= $79,040
Factory Labor = Actual Hour × Standard Rate
= 15,000 × $5.20
= $78,000
5. Work in Process Inventory Dr, $79,040
To Manufacturing Overhead $79,040
(Being manufacturing overhead is recorded)
Calculate the interest expense that Jessie Co. will show with respect to these bonds in its income statement for the fiscal year ended September 30, 2019, assuming that the premium of $82,000 is amortized on a straight-line basis.
Answer:
Find below missing part of the question:
Jessie Co issued $2 million face amount of 7%,20 years bonds on 1 April 2019.The bonds pay interest on semiannual basis on 30 September and 31 March each year.
$67,950.00
Explanation:
Interest expense=semiannual coupon-semiannual premium amortization
semiannual coupon =face value*coupon rate
face value is $2 million
coupon rate is 7%
semiannual coupon =$2,000,000*7%*6/12=$ 70,000.00
semiannual premium amortization=premium/years to maturity*2
premium is $82,000
years to maturity is 20
semiannual premium amortization=$82,000/(20*2)=$2050
interest expense=$70,000-$2,050=$67,950.00
A debt contract is said to be incentive compatible if:______.
a. the borrower's net worth reduces the probability of moral hazard.
b. restrictive covenants limit the type of activities that can be undertaken by the borrower.
c. both the A or B of the above occur.
d. neither A nor B of the above occur.
Answer:
A. the borrower's net worth reduces the probability of moral hazard
Mexican Peso Changes. In December 1994, the government of Mexico officially changed the value of the Mexican peso from 3.22 pesos per dollar to 5.53 pesos per dollar.What was the percentage change in its value? Was this adepreciation, devaluation, appreciation, or revaluation? Explain. What was the percentage change in its value? The percentage change in peso value is ____%. (Round to two decimal places.)Was this a depreciation, devaluation, appreciation, orrevaluation? Explain. (Select all the choices that apply.)
A. Anytime a government sets or resets the value of its currency, it is a managed or fixed exchange rate. If that is the case, any change in its official value must be either a "revaluation" or "depreciation." In thiscase, a revaluation.
B. Anytime a government sets or resets the value of its currency, it is a managed or fixed exchange rate. If that is the case, any change in its official value must be either an "appreciation" or "devaluation." In this case, an appreciation.
C. Anytime a government sets or resets the value of its currency, it is a managed or fixed exchange rate. If that is the case, any change in its official value must be either a"revaluation" or "devaluation." In this case, a devaluation.
D. This is evident from the fact that it now takes more pesos per U.S. dollar, so its value is less or devalued. In terms of the percentage change calculation, this is indicated by the negative percentage change.
Answer:
The correct answer is options C na d D
Explanation:
Solution
There was a difference in value of Mexican peso by the government ranging from 3.22 pesos per dollar to 5.53 pesos per dollar.
Now,
The percentage change in percentage is given as:
(beginning - ending) / ending = (3.22 - 5.53) / 5.53
Hence, the value of peso of change in percentage is = -41.77%
Thus,
The value change in currency is known as devaluation.
For floating exchange rate case, currency either depreciates or appreciates with regards to the factors of market However,
In this given question,the government has set again the value of it's currency, it is known to be either fixed or managed exchange rate.
Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $34,000. In addition to the cost of inventory, the company also pays $540 for freight charges associated with the purchase on the same day.
Required:
Record the purchase of inventory on February 2, including the freight charges.
Answer:
Dr merchandise inventory($34,000+$540) $34,540
Cr accounts payable $34,000
Cr cash $540
Explanation:
The cost of inventory purchased is shown as an increase in merchandise inventory since perpetual system of inventory requires that inventory is updated each time there is a receipt or sale of inventory.
In other words, the cost of inventory purchased is debited to merchandise inventory and credited to accounts payable.
The cost of freight is also added to the cost of inventory while it is credited to cash account.
Answer:
The Record the purchase of inventory on February 2, including the freight charges would be as follows:
Debit Credit
February 2
Merchandise Inventory $34,000
Accounts Payable $34,000
(To Record the Company Purchases Inventory on Account)
Debit Credit
February 2
Merchandise Inventory $540
Cash $540
(To Record the Freight Charges Paid by the Company)
Explanation:
The Record the purchase of inventory on February 2, including the freight charges would be as follows:
The company purchases inventory on account on February 2, for $34,000, therefore, journal entry would be:
Debit Credit
February 2
Merchandise Inventory $34,000
Accounts Payable $34,000
(To Record the Company Purchases Inventory on Account)
The company also pays $410 for freight charges associated with the purchase on the same day. Therefore journal would be:
Debit Credit
February 2
Merchandise Inventory $540
Cash $540
(To Record the Freight Charges Paid by the Company)
The manager of Belle Home Improvements purchased several cash registers for the business on June 10 but does not remember whether he paid cash for the full price or still owes a balance to the vendor. Where is the best place for the manager to get the information about this transaction?
Answer:
The best place to get information about the transaction is the general journal.
Explanation:
The best place for the manager to get information about the transaction is the general journal.
The journal in accounting is a record of financial transactions in order by date. The general journal is a day book that records transactions as it relates to adjustment entries, opening stock, accounting errors. Entries in general journal includes dates and explanation of transaction called narration.
The manager can find out if he paid fully for the transaction by going through the narration in the general journal.
Suppose you have $ 200000 in a bank term account you earn 5% interest per annum from this account you anticipate that the inflation rate will be 4% during the year . However the actual inflation rate for the year is 6%. Calculate the impact of inflation on the bank term deposit you have and examine the effects of inflation in your city of residence with attention to food and accommodation expenses.
Answer:
Explanation:350
Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Jason Payne, Capital; Jason Payne, Drawing; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.
Transactions
Oct. 1 Paid rent for the month, $2,800.
3 Paid advertising expense, $525.
5 Paid cash for supplies, $1,250.
6 Purchased office equipment on account, $9,300.
10 Received cash from customers on account, $16,600.
15 Paid creditors on account, $3,720.
27 Paid cash for miscellaneous expenses, $590.
30 Paid telephone bill (utility expense) for the month, $275.
31 Fees earned and billed to customers for the month, $50,160.
31 Paid electricity bill (utility expense) for the month, $830.
31 Withdrew cash for personal use, $1,700.
Journalize the following selected transactions for October 2019 in a two-column journal. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Oct. 1
Rent Expense $2,800 (debit)
Cash $2,800 (credit)
Oct 3.
Advertising Expense $525 (debit)
Cash $525 (credit)
Oct 5.
Supplies $1,250 (debit)
Cash $1,250 (credit)
Oct 6.
Office Equipment $9,300 (debit)
Accounts Payable $9,300 (credit)
Oct 10.
Cash $16,600 (debit)
Accounts Receivable $16,600 (credit)
Oct 15.
Accounts Payable $3,720 (debit)
Cash $3,720 (credit)
Oct 27.
Miscellaneous Expense $590 (debit)
Cash $590 (credit)
Oct 30.
Utilities Expense $275 (debit)
Cash $275 (credit)
Oct 31.
Accounts Receivable $50,160 (debit)
Fees Earned $50,160 (credit)
Oct 31.
Utilities Expense $830 (debit)
Cash $830 (credit)
Oct 31.
Capital; Jason Payne $1,700 (debit)
Cash $1,700 (credit)
Explanation:
Transactions are recorded when they occur or incur according to Matching Principle.
Note ; Cash withdrawals reduce the owners capital account and decreases the assets of cash.
"Widmer Company had gross wages of $320,000 during the week ended June 17. The amount of wages subject to social security tax was $320,000, while the amount of wages subject to federal and state unemployment taxes was $48,000. Tax rates are as follows:
Social security 6.0%
Medicare 1.5%
State unemployment 5.4%
Federal unemployment 0.8%"
The total amount withheld from employee wages for federal taxes was $46,000.
Required:
a. Journalize the entry to record the payroll for the week of June 17.
b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.
Answer:
Dr salaries expense $320,000
Cr salaries payable $250,000
Cr medicare payable $4,800
Cr social security payable $19,200
Cr federal income taxes payable $46,000
Dr payroll tax expense $26976
Cr medicare payable $4,800
Cr social security payable $19,200
Cr state unemploymet tax payable($48,000*5.4%) $2592
Cr federal uneployment tax payable($48,000*0.8%) $384
Explanation:
The payroll for week of June 17 requires that salaries expense is debited with $320,000 while social security is credited with $ 19,200.00 ($480,000*6%).
Medicare is credited with $4,800 (1.5%*$320,000)
Federal income tax payable is $46,000
salaries payable=$320,000-$4,800-$19,200-$46,000
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $21,200, direct labor $12,720, and manufacturing overhead $16,960. As of January 1, Job 49 had been completed at a cost of $95,400 and was part of finished goods inventory. There was a $15,900 balance in the Raw Materials Inventory account.
During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $ 134,200 and $ 173,800 , respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $ 99,000 on account.
2. Incurred factory labor costs of $ 77,000 . Of this amount $ 17,600 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $ 18,700 ; indirect labor $ 22,000 ; depreciation expense on equipment $ 13,200 ; and various other manufacturing overhead costs on account $ 17,600 .
4. Assigned direct materials and direct labor to jobs as follows.
Job No. Direct Materials Direct Labor
50 $ 11,000 $ 5,500
51 42,900 27,500
52 33,000 22,000
Required:
Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $924,000, direct labor costs of $770,000, and direct labor hours of 22,000 for the year.
Answer:
Predetermined manufacturing overhead rate= $42 per direct labor hour
Explanation:
Giving the following information:
Estimated manufacturing overhead= $924,000
Estimated direct labor hours= 22,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 924,000/22,000
Predetermined manufacturing overhead rate= $42 per direct labor hour
