Answer:
The correct answer is second option: Supply Chain.
Explanation:
To begin with, the concept known as "Supply Chain" in the business field refers to the combination of all the processes that a product has to go through in order to be finised and sold to the final user who is the one that ends the chain. Moreover, this term also involves the companies that are behind the production of the good as a whole and that is why that implicates to encompasses all the activities that are related with the flow and transfortmation of the good.
Viking Corporation is owned equally by Sven and his wife Olga, each of whom hold 160 shares in the company. Viking redeemed 80 shares of Sven's stock for $1,900 per share on December 31, 20X3. Viking has total E&P of $580,000. What are the tax consequences to Viking because of the stock redemption?
Answer:
A reduction of $152,000 in E&P because of the exchange
Explanation:
Solution
Recall that:
Sven and Olga hold shares of =160
Viking redeemed 80 shares of Sven's stock for the amount = $1,900
Total E&P = $580,000
Now
The redemption will be treated as a dividend so, because Viking decreases its E&P by the amount issued.
The accounting records of Tuel Electronics show the following data.
Beginning inventory 3,880 units at $8
Purchases 8,660 units at $10
Sales 9,310 units at
$13
Determine cost of goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method, and the average-cost method.(Round answers to 0 decimal places, e.g. 125.)
FIFO
LIFO
Average-cost
Cost of goods sold $Image for The accounting records of Tuel Electronics show the following data. Determine cost of goods sold during the pe $Image for The accounting records of Tuel Electronics show the following data. Determine cost of goods sold during the pe $Image for The accounting records of Tuel Electronics show the following data. Determine cost of goods sold during the pe
Answer:
Tuel Electronics
Cost of goods sold:
1. Using FIFO:
Cost of goods sold = $85,340 (3,880 x $8 + 5,430 x $10)
2. Using LIFO:
Cost of goods sold = $91,800 (8,660 x $10 + 650 x $8)
3. Using Average-Cost:
Cost of goods sold = $87,327.80 (9,310 x $9.38)
Explanation:
a) Summary of data:
Beginning inventory 3,880 $8 $31,040
Purchases 8,660 $10 86,600
Available for sale 12,540 $9.38 $117,640
Sales 9,310 $13 $121,030
b) Ending inventory = units available for sale minus units sold
= 12,540 - 9,310 = 3,230
c) FIFO (First In, First Out) inventory method is a method that assumes that goods bought first are the first to be sold in that chronological order. Ending inventory is valued based on the latest purchases, while cost of goods sold is valued on the earlier purchases.
d) LIFO (Last In, First Out) is an inventory method that assumes that goods sold are those that were bought first. Ending inventory is valued based on the earlier purchases while cost of goods sold is valued on the latest purchases.
e) Average-Cost method uses an average cost to value inventory. It is computed by adding up the costs and dividing by the units of goods available for sale. This gives an average unit cost that is used to value the ending inventory and the cost of goods sold.
f) While these methods produce different results, we must bear in mind that they are accounting estimates based on the judgement of the management of the entity.
Job-Order Costing and Decision Making [LO2-1, LO2-2, LO2-3]
Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production 225,000
Fixed manufacturing overhead cost $ 4,275,000
Variable manufacturing overhead cost per machine-hour $ 2.00
Required:
1. Compute the plantwide predetermined overhead rate.
2. During the year, Job P90 was started, completed, and sold to the customer for $3,700. The following information was available with respect to this job:
Direct materials 1,702
Direct labor cost $ 1,221
Machine-hours used 84
Compute the total manufacturing cost assigned to Job P90.
Answer:
a. $21 per machine hours
b. $4,855
Explanation:
a. The computation of the plantwide predetermined overhead rate is shown below:
Plantwide predetermined overhead rate is
= Variable overhead cost rate per machine hour + Fixed overhead cost rate per machine hour
= $2 + (fixed manufacturing overhead cost ÷ Estimated machine hours)
= $2 + ($4,275,000 ÷ 225,000 machine hours)
= $2 + $19
= $21 per machine hour
b. Now the total manufacturing cost assigned is
Particulars Amount
Direct material $1,702
Direct labor $1,221
Variable manufacturing overhead $168
(84 × $2)
Total variable cost $3,091
Add:
Fixed manufacturing overhead
(84 × $21) $1,764
Total manufacturing cost assigned
to Job P90 $4,855
eBay has become one of the most popular auction sites in the world. Each day, millions of products and services are bought and sold on the site. Because of its popularity, eBay is also a home for many different types of scams. Your business wants to start buying and selling on eBay, and you have been asked to find one type of scam that is popular on eBay. Search the Web for common eBay scams and pick one to write about. Include a description of how the scam occurs, what types of products or services it is often found on, and how it can be prevented or detected by potential buyers.
Answer:
Fake PayPal account
Explanation:
The fake PayPal account is a common scam that often occur on Ebay and this can occur in a situation where a person or an individual Sells an item after which that person receive an email notification from PayPal that the buyer has paid, and duly mail them the goods, But in reality the seller has been scammed because the email that was sent to the seller was a carefully designed hoax which means there’s no money credited in the seller account.
Therefore such person can avoid been scammed by Checking his or her PayPal balance instead of believing the email sent and the person should not click links in the email sent as well, but the person should go to PayPal separately.
Secondly the person should endeavour to check that the PayPal email doesn’t arrive mysteriously before the eBay email notifying the person of the sale which means eBay’s messages should always come through first.
The person should as well Scrutinize the emails, including that of senders address even though eBay and PayPal messages are automated, they can be convincingly be duplicated by the scammer.
Home equity line interest. Sean and Amy Anderson have a home with an appraised value of $180,000 and a mortgage balance of only $90,000. Given that an S&L is willing to lend money at a loan-to-value ratio of 75 percent, how big a home equity credit line can Sean and Amy obtain? How much, if any, of this line would qualify as tax-deductible interest if their house originally cost $100,000?
Answer:
$135,000
$75,000
Explanation:
Home value = $180,000
Loan to Value ratio = 75%
Formula: Maximum loan amount = Home value x loan to value ratio
Maximum loan amount = $180,000 x 75%
Maximum loan amount = $135,000
If the value of house is $100,000 then,
$100,000 x 75% = $75,000
$75,000 would qualify as Tax deductible interest
The journal entry to record the transfer of units from Process 1 to the Process 2 in process costing is:
Debit - work in process inventory 2 and Credit - work in process inventory 1.
What is work in process?Work in process is the accounting method of costing which is used in manufacturing where units are continuously produced in large quantities through one or more processes.
It keeps the track of the number of units passing through the production process during a given period of time.
Basically, work-in-progress (WIP) refers to the goods that are partially completed.
Learn more about work in process here:-
https://brainly.com/question/14756495
#SPJ2
A country's travel exports (good and services that international travelers buy while visiting the country) are increasing exponentially. The value of such exports, t years after 2011, can be approximated by V(t)equals111.83 e Superscript 0.088 t, where V is in billions of dollars. a) Estimate the value of the country's travel exports in 2018 and 2020. b) Estimate the growth rate of the country's travel exports in 2018 and 2020.
Answer:
(a)In 2018, V(t)=$207.05 billion
In 2020, V(t)=$246.90 billion
(b)The export growth rate in 2018 is $18.22 billion per year
The export growth rate in 2020is $21.73 billion per year
Explanation:
The value of exports, t years after 2011 can be approximated by:
[tex]V(t)=111.83 e^{0.088 t}[/tex]
(a)We want to estimate the value of the country's travel exports in 2018 and 2020.
Now, 2018-2011=7 years
Therefore, in 2018
[tex]V(7)=111.83 e^{0.088 *7}\\=\$207.05$ billion[/tex]
Now, 2020-2011=9 years
Similarly, in 2020
[tex]V(9)=111.83 e^{0.088 *9}\\=\$246.90$ billion[/tex]
(b)Growth rate
If [tex]V(t)=111.83 e^{0.088 t}[/tex], then:
[tex]V'(t)=111.83(0.088) e^{0.088 t}\\V'(t)=9.84104 e^{0.088 t}[/tex]
Growth rate in 2018 (at t=7)
[tex]V'(7)=9.84104 e^{0.088*7}\\=\$18.22$ billion per year[/tex]
Growth rate in 2020 (at t=9)
[tex]V'(9)=9.84104 e^{0.088*9}\\=\$21.73$ billion per year[/tex]
When information about two different enterprises has been prepared and presented in a similar manner, the information exhibits the characteristic of
Answer:
Comparability
Explanation:
Comparability is a characteristic of the information presentation of accounting information. It is required that the use of standardized accounting principles aid in making the accounts of two different enterprises to be compared to enable decision making among investors or for the allocation of investible resources. Without this comparability it becomes difficult to determine where resources would be put. Comparability can also be applied with the same company when it is able to compare its performance from one period to the other. This is also enabled by the use of standardized principles which have been consistently applied.
YellowCard Company manufactures accessories for iPods. It had the following selected transactions during 2017. (Note: For any part of this problem requiring an interest or discount rate, use 10%.)
1. YellowCard provides a 2-year warranty on its docking stations, which it began selling in 2017. During 2017, YellowCard spent $6,000 servicing warranty claims. At year-end, YellowCard estimates that an additional $45,000 will be spent in the future to service warranties related to 2017 sales.
2. YellowCard has a $200,000 loan outstanding from First Trust Corp. The loan is set to mature on February 28, 2018. For several years, First Trust has agreed to extend the loan, as long as YellowCard makes all its quarterly interest payments (interest is due on the last days of each February, May, August, and November) and maintains an acid-test ratio (also called "quick ratio") of at least 1.25. First Trust has provided YellowCard a "commitment letter" indicating that First Trust will extend the loan another 12 months, providing YellowCard makes the interest payment due on March 31.
3. During 2016, YellowCard constructed a small manufacturing facility specifically to manufacture one particular accessory. YellowCard paid the construction contractor $5,000,000 cash (which was the total contract price) and placed the facility into service on January 1, 2017. Because of technological change, YellowCard anticipates that the manufacturing facility will be useful for no more than 10 years. The local government where the facility is located required that, at the end of the 10-year period, YellowCard remediate the facility so that it can be used as a community center. YellowCard estimates the cost of remediation to be $500,000.
Prepare all 2017 journal entries relating to YellowCard’s warranties.
Prepare all 2017 journal entries relating to YellowCard’s loan from First Trust Corp
Prepare all 2017 journal entries relating to the new manufacturing facility YellowCard opened on January 1, 2017
Answer:
warrant expense 51,000 debit
cash 6,000 credit
warranty liability 45,000 credit
--to record warrant-related accounts--
interest payable 16,667 debit
interest expense 3,333 debit
cash 20,000 credit
--to record interest expense for the loan and installment--
Manufacturing Facilities 5,192,772 debit
Cash 5,000,000 credit
Restoration Liability 192,772 credit
-- to record the payment to contractor--
Explanation:
Warranty: the additional expected expense are considered warranty laibility
Loan: we previously recorded accrued interest from March 1st to Dec 31th
That is: 200,000 x 10% x 10/12 months = 16,667 payable
At February 28th we recognize the last two month of interest
200,000 x 10% x 2/12 months = 3,333 expense
in total we have 16,667 + 3,333 = 20,000 cash outlay
Facility: the asset should add to all the cost necessary to acquire it:
As the conversion into community center is mandatory it is part of the cost:
present value of the 500,000 in ten years:
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity $500,000.00
time 10.00
rate 0.10000
[tex]\frac{500000}{(1 + 0.1)^{10} } = PV[/tex]
PV 192,771.6447
Total cost:
5,000,000 cashg + 192,772 liability = 5,192,772
Use the following information to calculate cash received from dividends: Dividends revenue $ 32,300 Dividends receivable, January 1 3,100 Dividends receivable, December 31 4,400 Multiple Choice $27,900. $31,000. $35,400. $32,300. $33,600.
Answer:
$31,000
Explanation:
Calculation for the cash received from Dividend
Beginning dividends receivable + Dividend revenue - dividends paid = Ending dividends receivable
Hence,
Using this formula
Dividends paid = Beginging dividends receivable + dividend revenue - Ending dividends receivable
Let plug in the formula
= 3,100+32,300-4,400
=31,000
Therefore the amount of cash received from dividend will be $31,000.
Thus the dividend revenue is not the dividends which was received in cash, but instead it is the dividends which was earned during the period.
In its first year of operations, Swifty Corporation purchased available-for-sale debt securities costing $80,000 as a long-term investment. At December 31, 2022, the fair value of the securities is $76,400. Prepare the adjusting entry to record the securities at fair value.
Answer:
Dr Unrealized Gain/ Loss-Income $3,600
Cr Fair Value Adjustment-Trading $3,600
Explanation:
Preparation of the adjusting entry to record the securities at fair value for Swifty Corporation
Since the Corporation purchased available-for-sale debt securities at the cost of $80,000 as a long-term investment in which the fair value of the securities was the sum of $76,400 at December 31,2022, this means to record the transaction we have to Debit Unrealized Gain/ Loss-Income with the sum of $3,600 and Credit Fair Value Adjustment-Trading with same amount.
Hence, the transaction is calculated as:
Available-for-sale debt securities -Fair value of the securities
$80,000-$76,400= $3,600
Swifty Corporation Journal entry
Dec.31
Dr Unrealized Gain/ Loss-Income $3,600
Cr Fair Value Adjustment-Trading
( $80,000-$76,400) $3,600
On January 1, 2021, Tabitha Designs purchased a patent for $240,000 giving it exclusive rights to manufacture a new type of synthetic clothing. While the patent had a remaining legal life of 15 years at the time of purchase, Tabitha expects the useful life to be only eight more years. In addition, Tabitha purchased equipment related to production of the new clothing for $140,000. The equipment has a physical life of 10 years, but Tabitha plans to use the equipment only over the patent's service life and then sell it for an estimated $20,000. Tabitha uses straight-line for all long-term assets. The amount to expense in 2024 related to the patent and equipment should be:
Answer:
The amount to expense in 2024 related to the patent and equipment should be: $45,000.
Explanation:
Note that Tabitha uses straight-line Method for all long-term assets.
Straight lime method charges a fixed amount of expense (depreciation / amortization) over the period of use of an asset.
Depreciation / Amortization Charge = (Cost - Residual Value) / Estimated Useful Life
Patent = $240,000 / 8 years
= $30,000
Equipment = ($140,000 - $20,000) / 8 years
= $15,000
Conclusion :
The amount to expense in 2024 related to the patent and equipment should be: $45,000 ( $30,000 + $15,000).
A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable$363,000debit Allowance for uncollectible accounts 580debit Net Sales 808,000credit All sales are made on credit. Based on past experience, the company estimates that 0.6% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared
Answer:
$4,848 will be the amount that should be debited to Bad debts expense when the adjusting entry is being prepared for the year end.
Explanation:
Since the company uses percentage of sales method for calculating bad debt, it therefore means that the bad debt expense for the year will not be charged from the opening balance of allowance for uncollectible accounts but will be charged as Net credit sales × percentage of uncollectible from credit sales.
Therefore, bad debt for the period is charged as Net credit sales × Percentage of uncollectible from credit sales
= $808,000 × 0.6%
= $4,848
Therefore, the adjusting entry for bad debt expenses at year end is;
Bad debt expense Dr $4,848
Allowance for uncollectible accounts Cr $4,848
You can determine a company’s cash situation by analyzing the cash flow statement. The cash flow statement also helps determine whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets.
Which of the following is true for the statement of cash flows?
a. It reflects cash generated and used during the reporting period.
b. It reflects revenues when earned.
Answer: a. It reflects cash generated and used during the reporting period
Explanation:
The Cash flow statement is very important and is useful to various stakeholders in a company with the most important being the Company Management itself and Creditors.
Management are able to use the Cash flow statement to see how much actual cash was spent in the year as well as how much was used. This is important because the Income statement contains entries that might show revenue that have not being received or expenses such as depreciation that did not impact the actual cash the company has. The Cash flow statement fixes this by showing those actual figures thus enabling the company to plan better.
It is also useful to Creditors so that they see if a company is able to pay them for the period.
You have been appointed to lead an existing group. Your boss, who informed you of the assignment, made these comments: "These people have some real issues. They have been a problem for years. They stick together like family but never seem to get much work done." Which of these would best describe this group?
Answer:
This is a group that can be defined by its high cohesiviness and low performance norms.
Explanation:
In this case, the new leader must focus on solving this problem that already exists where team members have high cohesion, but who have a low performance with regard to compliance with internal rules and procedures.
The ideal in this case would be for the leader to review the set of company policies and standards and seek to establish new rules and procedures for living and working together.
Having a cohesive team is not a weakness for an organization, the ideal is to know how to exploit the potential of each member of that team, so that each one delivers to the company an effective job that contributes to the achievement of the objectives and organizational goals.
The manager can also invest in training, redesigning the layout of work and tasks, setting deadlines for completing activities, delivering warnings to ward off inappropriate behavior during working hours, etc.
Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 21 years Coupon rate: 9 percent Semiannual payments Calculate the price of this bond if the YTM is (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):
Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 21 years Coupon rate: 9 percent Semiannual payments Calculate the price of this bond if the YTM is 6% (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):
Answer:
Price of bond = $982.63
Explanation:
The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond for Microhard can be worked out as follows:
Step 1
PV of interest payments
Semi annul interest payment
= 9% × 1000 × 1/2 = 45
Semi-annual yield = 6%/2 = 3 % per six months
Total period to maturity (in months)
= (2 × 21) = 42 periods
PV of interest =
45 × (1- (1+0.03)^(-21)/0.03)= 693.6
Step 2
PV of Redemption Value
= 1000 × (1.03)^(-21×2) =288.95
Price of bond
= 693.6 + 288.95 =982.63
Price of bond = $982.63
g on january 1 playa company acquires 90 percent ownership in seaside corporation for 180,000 the fair value of noncontrolling interest what will be the amount of consolidated net assets that would be reported
The question is incomplete, the complete question is:
On January 1, Playa Company acquires 90 percent ownership in Seaside Corporation for $180,000. The fair value of the noncontrolling interest at that time is determined to be $20,000. Seaside reports net assets with a book value of $200,000 and fair value of $200,000. Playa Company reports net assets with a book value of $480,000 and a fair value of $525,000 at that time, excluding its investment in Seaside. What will be the amount of consolidated net assets that would be reported immediately after the combination?
Answer:
$680,000
Explanation:
Since Playa Company owns 90% of Seaside Corporation, it is considered Seaside's parent company and it must include all of Seaside's assets when it presents its consolidated balance sheet.
Total net assets reported = $480,000 (Playa's net assets at book value) + $200,000 (Seaside's net assets) = $680,000
Which of the following statements best describes how a change in a firm’s stock price would affect a stock’s capital gains yield? The capital gains yield on a stock that the investor already owns has a direct relationship with the firm’s expected future stock price. The capital gains yield on a stock that the investor already owns has an inverse relationship with the firm’s expected future stock price.
Answer: The capital gains yield on a stock that the investor already owns has a direct relationship with the firm’s expected future stock price.
Explanation:
The Capital Gains on a security refers to the increase in the price of the security from the cost that it was bought at. The Yield can therefore be calculated by dividing the difference between the Security Price now and the Security Price at cost by the Security Price at Cost.
If the price is higher than the cost, that is a Capital Gain. The reverse is a loss.
Therefore, a Company's future stock price is directly related to the Capital Gains Yield of an investor who is already holding the stock. If the future price increases, the Capital Gains Yield on that stock will go up. The reverse is true.
In 2019, Linda gave her son, Jonathan 425 shares of School Products Inc., common stock. Linda paid $9,350 for the stock in 2013. At the date of the gift, the FMV of the stock was $6,800. Assuming that there is no gift tax paid, if Jonathan sells the stock for $6,000, he will recognize:
Answer:
Lol
Explanation:
Goteem
After posting the transactions from Part A, you should have the following account balances. Use this information to prepare either a multiple step income statement or a contribution format income statement.
Account Name Debit Credit
Raw Materials $33,400
Cash $133,100
Work in Process $391,800
Salaries Expense $47,000
Rent Expense $5,100
Advertising Expense $12,000
Sales Commissions Expense $26,000
Accumulated Depreciation $21,000
Depreciation Expense $5,000
Cost of Goods Sold $203,600
Sales Revenue $51 9,000
Answer: Its B
Explanation:
a. Prepare a cost of goods manufactured statement for January.
b. Determine the cost of goods sold for January.
Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows:
Inventories January 1 January 31
Materials $314,000 $276,800
Work in process 216,000 239,800
Finished goods 163,200 189,000
January 31
Direct labor $567,000
Materials purchased during the month 606,600
Factory overhead incurred during the month:
Indirect labor 60,520
Machinery depreciation 32,000
Heat, light, and power 12,200
Supplies 8,220
Property taxes 8,880
Miscellaneous costs 16,460
Answer:
a.Cost OF Goods Manufactured $ 1324,680
b.Cost OF Goods Sold 1298,880
Explanation:
Sandusky Manufacturing Company
Cost of Goods Manufactured Statement
For the Month Ended January 31
Materials Inventories Beginning $314,000
Add Materials purchased during the month 606,600
Less Materials Inventories January 31 Ending $276,800
Total Materials Used $ 643,800
Direct labor $567,000
Factory overhead incurred during the month: $ 138280
Indirect labor 60,520
Machinery depreciation 32,000
Heat, light, and power 12,200
Supplies 8,220
Property taxes 8,880
Miscellaneous costs 16,460
Total Manufacturing Costs 1349,080
Add Work in process Beginning 216,000
Cost OF Goods Available For Manufacture $ 1565,080
Less Work in process Ending 239,800
Cost OF Goods Manufactured $ 1325,280
The Cost OF Goods Manufactured Statement is obtained by the following formula
Cost OF Goods Manufactured = Materials used+ direct labor+ FOH + WIP Beginning - WIP Ending.
Sandusky Manufacturing Company
Cost of Goods Sold Statement
For the Month Ended January 31
Cost OF Goods Manufactured $ 1325,280
Add Finished goods Beginning 163,200
Cost OF Goods Available For Sale 1488,480
Less Finished goods Ending 189,000
Cost OF Goods Sold 1299,480
The Cost OF Goods Sold Statement is obtained by the following formula
Cost OF Goods Sold = Cost OF Goods Manufactured+ FG Beginning - FG Ending.
Which of the following products is most likely to be produced in a process operations system?
A. Airplanes
B. Cereal Bridges
C. Designer bridal gowns
D. Custom cabinets
Answer:
Cereal
Explanation:
Process operations system which is also known as either process manufacturing or process production can be defined as the way of producing a product in mass, by making use of mass production method and this product are often produce in a continuous flow.
Therefore CEREAL is the products that is most likely to be produced in a process operations system because the production of Cereal is mostly carried out or produce in a process operations system.
The study of economic growth concentrates on understanding the determinants of the: Group of answer choices change in per capita GDP over time.
Answer:
the long term change in per capita GDP
Explanation:
please find attached the full question.
economic growth is the persistent rise in the amount of goods and services produced by an economy, it is the increase in the level of wealth of an economy overtime.
Per capita GDP = GDP / population
it is the GDP per person.
by understanding the factors that lead to long term changes in per capita GDP, one can determine what causes economic growth
You plan to borrow $ 3 comma 000$3,000 from a bank. In exchange for $ 3 comma 000$3,000 today, you promise to pay $ 3 comma 210$3,210 in one year. What does the cash flow timeline look like from your perspective? What does it look like from the bank's perspective? What does the cash flow timeline look like from your perspective? (Select the best choice below.)
Answer:
There are no options included in the question, but the answers should include something like:
cash flow timeline from my perspective:
today (or year 0) $3,000
year 1 -$3,210
cash flow timeline from the bank's perspective:
today (or year 0) -$3,000
year 1 $3,210
Today (year 0) you will receive $3,000, so your cash inflow will be $3,000. On the other hand, the bank will give you the money, so they have a cash outflow of -$3,000.
In one year when you payback the loan, your cash outflow will be -$3,210, but the bank's cash inflow will be $3,210.
Abburi Company's manufacturing overhead is 55% of its total conversion costs. If direct labor is $58,500 and if direct materials are $29,200, the manufacturing overhead is:
Answer:
$71,500
Explanation:
The computation of manufacturing overhead is shown below:-
We assume conversion cost = x
Conversion cost = Labor cost + manufacturing overhead
x = $58,500 + 0.55x
x = $58,500 ÷ 0.45
= $130,000
Now the manufacturing overhead is
= Conversion cost × maufacturing overhead percentage
= $130,000 × 55%
= $71,500
We simply applied the above formula
Suppose the elasticity of demand for your parking lot spaces, which are located in a downtown business district, is –1.8, and the price of parking is $7 per day. Additionally, suppose that your MC is zero, and your capacity has been 80% full at 9 AM each day over the last month. Since demand is______, and the lot is below capacity,________is the optimal pricing strategy.
Answer:
ELASTIC
DECREASING PRICE
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
The demand for your parking lot spaces is elastic. if the price of parking is reduced, the demand for parking would rise
The weather report says that a devastating and unexpected freeze is expected to hit Florida tonight during the peak of the citrus harvest. In an efficient market, one would expect the price of Florida Orange's stock to Group of answer choices increase immediately. drop immediately. gradually increase for the next several weeks. unable to determine. gradually decline for the next several weeks.
Answer:
A. drop immediately.
Explanation:
In an efficient market, assets within it are expected to accurately represent all of the knowledge that affects that asset. The market is very sensitive to and changes accordingly to new knowledge.
When the weather forecast states that it is expected that a catastrophic and unpredictable freeze will strike Florida tonight during the height of the citrus harvest, the price of Orange 's stock will instantly drop.
A later good news could trigger an increase in stock prices.
In the __________ phase of the training process, organizational and employee performance issues are considered to determine if training can help.
Answer:
needs assessment.
Explanation:
The needs assessment phase corresponds to the analysis that the company conducts on the performance of employees and identifies if there are any flaws that can be corrected with the aid of training.
Therefore, it is necessary for the company to define what are the goals and objectives that can be achieved in this process and to define which type of training will be most effective for the development of the employees' skills and competences to reach the determined objectives.
There are several reasons why companies need to assess whether there is a need for training, some are usually the result of new hires, job redesign, changes in organizational processes, new systems, technologies, etc.
It is necessary that the data collection for the needs assessment be carried out through research and constant monitoring of the tasks, in order to identify what can be improved in the company from training.
This method is effective for organizations to increase the capacity of employees by encouraging learning and motivation to work, in addition to reducing employee turnover and unnecessary expenses, in addition to being a process that encourages continuous improvement, which is essential for the processes organizations operate at their optimal capacity.
Watson Manufacturing Company employs a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of operations:
1. Direct materials requisitioned during the month:
Job 101………………………………..$20,000
Job 102…………………………………16,000
Job 103…………………………………24,000
…………………………………………$60,000
2. Direct labor incurred and charged to jobs during the month was:
Job 101…………………………………$30,000
Job 102…………………………………..28,000
Job 103…………………………………..20,000
…………………………………………..$78,000
3. Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on 75% of direct labor costs.
4. Actual manufacturing overhead costs incurred during the month amounted to $66,000.
5. Job 101 consisting of 1,000 units and Job 103 consisting of 200 units were completed during the month.
Prepare journal entries to record the above transactions.
Instructions
(a) Prepare journal entries to record the above transactions.
(b) Answer the following:
1. How much manufacturing overhead was applied to Job 103 during the month?
2. Compute the unit cost of Jobs 101 and 103.
3. What is the balance in Work In Process Inventory at the end of the month?
4. Determine if manufacturing overhead was under- or overapplied during the month. How much?
Answer:
Watson Manufacturing Company
a) Journal Entries:
Description Debit Credit
Job 101 $20,000
Job 102 16,000
Job 103 24,000
Direct materials $60,000
To record direct materials requisitioned during the month.
Job 101 $30,000
Job 102 28,000
Job 103 20,000
Direct labor $78,000
To record direct labor incurred and charged to jobs during the month.
Job 101 $22,500
Job 102 21,000
Job 103 15,000
Manufacturing Overhead $58,500
To record manufacturing overhead costs applied
Manufacturing Overhead $66,000
Cash Account $66,000
To record the payment for manufacturing overhead.
Finished Goods Inventory $131,500
Job 101 $72,500
Job 103 $59,000
To transfer Jobs 101 & 103 to finished goods inventory.
b.1) Manufacturing overhead applied to Job 103 during the month is $15,000.
b.2) Computation of unit cost of Jobs 101 and 103:
Jobs 101 Job 103
Direct materials $20,000 $24,000
Direct labor 30,000 20,000
Manufacturing overhead applied 22,500 15,000
Total production costs $72,500 $59,000
Units produced 1,000 200
Unit costs $72.50 $295
b.3) Work in Process Inventory:
Job 102:
Direct materials $`16,000
Direct labor 28,000
Overhead applied 21,000
Total $65,000
4. Under- or overapplication of Manufacturing Overhead:
Actual overhead expense = $66,000
Applied overhead costs = 58,500
Underapplied by $7,500
Explanation:
a) We used journal entries to record the transactions for the jobs as they occurred during the month. The entries showed which account was to be debited and which was to be credited, as every transaction affects the two sides of the accounting equation. One account gave value and the other account received the value. It is from the journal entries that the postings to the ledger accounts would be carried out.
b) In Watson Manufacturing Company's job costing system, each completed job is transferred out to the finished goods inventory account for sale.
c) Sometimes, the manufacturing overhead is underapplied or overapplied as Watson Manufacturing Company uses a predetermined rate of 75% of direct labor to apply overheads to the jobs. It is underapplied when the actual overhead expense is higher than the applied costs, and vice versa.
d) The unit cost of Jobs 101 and 103 is determined by summing the direct material, labor, and overhead applied costs and then dividing by the number of units produced.
e) Job 102 was not completed during the period, and its costs are transferred to the Work In Process Inventory.
Hazel owns an event planning company that specializes in very high-end events. Several years ago, Hazel purchased a magnificent chocolate fountain for $3,000 and has since taken $1,200 in depreciation deductions on the fountain. Hazel is now ready to replace the fountain with tools for creating ice sculptures, but she is not sure what the tax consequences of selling the fountain will be. Which of the following statements is true regarding the tax consequences of selling the fountain?A. If Hazel sells the chocolate fountain for $1,800, she will have a $1,200 ordinary loss.B. If Hazel sells the chocolate fountain for $1,700, she will have a $100 capital loss.C. If Hazel sells the chocolate fountain for $2,000, she will have an ordinary gain of $200 and no capital gain.D. If Hazel sells the choclate fountain for $3,300, she will have a $1,500 capital gain.
Answer:
D. If Hazel sells the chocolate fountain for $3,300, she will have a $1,500 capital gain.
Explanation:
I´m assuming that Hazel is a person that owns this event planning company.
The current book value of the chocolate fountain = purchase cost - accumulated depreciation = $3,000 - $1,200 = $1,800
If the chocolate fountain (or any asset) is sold at a higher price than book value, then a capital gain must be recognized. If the chocolate fountain is sold at a lower price than book value, then a capital loss should be recognized.
$3,300 (selling price) - $1,800 (book value) = $1,500 capital gain