Answer:
b. Offer price reductions along with generous credit terms that would (1) enable the firm to sell some of its excess inventory and (2) lead to an increase in accounts receivable.
Explanation:
Quick ratio = cash + short term marketable investment + receivables / current liabilities
To increase the quick ratio, current liabilities have to be reduced and any of the three items in the numerator should be increased.
A customer purchases $100,000 of corporate bonds at 80% in a margin account. The customer must deposit:
Answer:
$16,000
Explanation:
Computation of what the customer must deposit for purchasing $100,000 of corporate bonds at 80% in a margin account
Since the minimum maintenance is the standard that is set by FINRA is the greater of 7% of the face amount or 20% of the market value.
Hence,
The bonds are purchased at 80% of $100,000 par, thus the first step is to find the 80% of $100,000. Calculated as :
80%×$100,000= $80,000
Second step is to find the 20% of $80,000 which is calculated as:
20% ×$80,000 = $16,000.
Third step is to find the 7% of $100,000, calculated as:
7% of $100,000 face = $7,000.
Based on the above calculation the greater amount is $16,000 which means that the customer must deposit the amount of $16,000 which is the greater amount.
Fernwood Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $ 278,000 Cash dividends declared for the year 61,250 Proceeds from the sale of equipment 104,800 Gain on the sale of equipment 5,850 Cash dividends payable at the beginning of the year 26,950 Cash dividends payable at the end of the year 34,500 Net income for the year 134,750 The ending balance in retained earnings is:
Answer:
$351,500
Explanation:
Particular Amount
Retained earnings balance at $278,000
the beginning of the year
Net income for the year $134,750
Cash dividends declared ($61,250)
for the year
Ending balance in retained earnings $351,500
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.
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:
Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $28,861 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Deposit in transit 3,550 Outstanding checks 1,404 Additionally, a $48 check correctly written and recorded by the company was recorded by the bank as a $84 deduction. The adjusted cash balance per the bank records should be:
Answer:
$31,043
Explanation:
The computation of adjusted cash balance is shown below:-
Adjusted cash balance = Balance as per bank statement + Deposits in transit + Check wrongly recorded - Outstanding checks
= $28,861 + $3,550 + ($84 - $48) - $1,404
= $32,447 - $1,404
= $31,043
Therefore for computing the adjusted cash balance we simply applied the above formula.
A sales person sets a starting price of a new car that the buyer thinks is
slightly too high. What type of price might the buyer counter with?
A. An offer price
B. A firm price
C. A lowball price
O D. A bid price
Answer: D A bid price
Explanation: The buyer change change the bid
A salesperson sets a starting price for a new car that the buyer thinks is slightly too high. A bid price might the buyer counter with. The best bid is the offer price that has received the most quotes from buyers of a given security or asset. The maximum price a seller could anticipate receiving from a market order is represented by the best bid.
Why is the bid higher than the ask?Together, they show the optimum price for buying and selling stocks at a specific moment. The bid price is the most money a buyer will spend on security, like a share of stock. The asking price is the lowest sum the vendor will take in exchange for that security.
The highest price a buyer will pay to purchase a specific number of shares of stock at any particular time is referred to as the "bid." The lowest price a seller will accept for the stock is referred to as the "ask." Almost invariably, the bid price will be less than the ask, or "offer," price.
Thus, the ideal selection is option D.
Learn more about Bid Prices here:
https://brainly.com/question/24280121
#SPJ2
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.
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.
Mcmurtry Corporation sells a product for $170 per unit. The product's current sales are 10,000 units and its break-even sales are 8,100 units. The margin of safety as a percentage of sales is closest to:
Answer:
19%
Explanation:
Margin of safety = (Current sales - Break even sales) / Current sales * 100
= (10,000 - 8,100) /10,000 *100
= 1,900 / 10,000 * 100
= 19%
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
the pure expectations theory holds, which of the following statements is CORRECT? a. The maturity risk premium would be zero. b. The yield curve for Treasury securities would be flat, but the yield curve for corporate securities might be downward sloping. c. If 2-year bonds yield more than 1-year bonds, an investor with a 2-year time horizon would almost certainly end up with more money if he or she bought 2-year bonds. d. The yield curve for both Treasury and corporate bonds should be flat. e. The yield curve for Treasury securities cannot be downward sloping.
Answer: The Maturity Risk Premium would be zero.
Explanation:
The Pure Expectations Theory believes that forward rates are just a representation of what people expect Future rates to be.
For this reason therefore, it believed that the Maturity Premium is Zero amongst Long Term Treasury Securities and that the difference in interest rates attached to Treasury bonds of different maturities is simply a result of what people perceive future interest rates to look like but as for Maturity Premiums, it doesn't exist in long term Treasury Securities.
Categorization of a market area for a center is relatively simple because the size of the market area served is refleced in the centers size.
a. True
b. False
Answer: True
Explanation:
The Market Area that a Centre will serve is directly related to its size. This is because the larger the size of a Centre, the more services it offers that will bring people from further to it.
Services range from low level to high level. High level services bring people from further away while low level services are mostly for people in the area.
A large centre will have more High level services offered and so will serve people from further as opposed to a small centre that will have more low level services which will serve people in it's vicinity.
Think about Neighbourhood stores vs large Shopping Complexes.
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.
Eight years ago you bought your house for $115,000. You just sold it for $267,000. What was the average annual appreciation of your home
Answer:
$19,000
Explanation:
appreciation is the difference between the price at which the house was bought and the price at which the house was sold
$267,000 - $115,000 = $152,000.
Average annual appreciation = $152,000 / 8 =$19,000
Answer:
(C) y = 115,000(1.05)x
Explanation:
i just took the test
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]
The agent of a broker-dealer registered in State A, sells unregistered non-exempt securities to customers in State A. These customers lose a substantial sum of money on the investment. Which statement is TRUE
Answer:
The clients may initiate a civil lawsuit to recover their losses
Explanation:
It is assumed that the agent sold the securities with an intention to defraud. Under the Uniform Securities Act, the client may initiate a civil lawsuit so as to recover losses. Clients would sue based on the fact that the securities were unregistered and non-exempt while attempting to get back what they have lost in finance, attorney fees, and interest inclusive. These 3 damages are only applicable to insider trading.
Microsoft and a smaller rival often have to select from one of two competing technologies, A and B. The rival always prefers to select the same technology as Microsoft (because compatibility is important), while Microsoft always wants to select a different technology from its rival. If the two companies select different technologies, Microsoft's payoff is 4 units of utility, while the small rival suffers a loss of utility of 2. If the two companies select the same technology, Microsoft suffers a loss of utility of 2 while the rival gains 2 units of utility. Using the given information, fill in the payoffs for each cell in the matrix, assuming that each company chooses its technology simultaneously. Microsoft Technology A Technology B Rival Technology A Rival: , Microsoft Rival: , Microsoft Technology B Rival: , Microsoft Rival: , Microsoft True or False: There is an equilibrium for this game in pure strategies. True False
Answer:
True
Explanation:
Microsoft matrix along with his rivals. There are two ways to use the technology. Microsoft and its rival can move simultaneously. The equilibrium strategy can be determined y pay off matrix. The both companies use pure strategy. The criteria for pure strategy is max-min and min-max. The max-min strategy means select least case from all the best cases and min-max is selecting the best case from all the least cases.
Suppose that a flower nursery benefits from having a butterfly farm located only a few miles away, because the presence of the insects greatly improves flower pollination. Lawyers for the two companies meet to draft a legal document specifying the number of butterflies the farm promises to maintain in exchange for payments by the nursery.
The need for highly paid lawyers to work out a legal agreement between the flower nursery and the butterfly farm contradicts an important requirement of _________ namely, that the parties experiencing an externality must be able to _________ .
Private solutions to externalities do not always work. One of the primary occurrences of this is when parties must spend an excessive amount of time or money to reach an agreement. This describes the problem of ________ .
Answer:
The need for highly paid lawyers to work out a legal agreement between the flower nursery and the butterfly farm contradicts an important requirement of the case theorem namely, that the parties experiencing an externality must be able to bargain at low cost.
Private solutions to externalities do not always work. One of the primary occurrences of this is when parties must spend an excessive amount of time or money to reach an agreement. This describes the problem of transaction costs.
Explanation:
In case theorem,in the presence of externality, irrespective of which company own the right to the property, the two companies can negotiate for the optimal solution, provided the negotiation costs are negligible.
Transaction cost is said to be the cost which is involved in the form of time or money during the finalisation of a decision or reaching to an agreement.
In this case, excessive amount of money is spent in following the bargains between both parties to get the final aggrement, since they need highly paid lawyers. This is the problem of transaction cost.
Starting from a long run steady state equilibrium, a variety of expansionary fiscal and monetary policies were undertaken. The production exceeds potential GDP in short run. The resulting:
A. hyper-intense production will be unsustainable in the long run.
B. higher wages will encourage workers to produce more at high prices.
C. lower prices will lead to a lower quantity of demand.
D. downward slope in aggregate supply curve will be short run.
Answer:
A
Explanation:
Here, we want to know what happens in the long run if the production exceeds potential GDP in short run.
An expansionary gap cannot persist for a long time, as the economic activity exceeds sustainable levels. In the long run, the output level comes back to potential, though price levels may rise.
Brandon is responsible for organizing his company’s financial data. This includes a large number of data categories, some relating to personal employee information, some relating to purchasing or sales records, and others relating to salary and wage considerations. Of course some of the data needs to be included in more than one category. What type of tool is he most likely to use in order to organize all the data?
A. Relational database
B. Spreadsheet
C. Desktop publishing software
D. Analytics software
Answer:
The answer is Relational Database
Explanation:
Roan Paper Co. produces the paper used by wallpaper manufacturers.
Roan's four-stage process includes mixing, cooking, rolling and cutting.
On March 1, the Mixing Department had 300 rolls of paper in process.
During March, the Mixing Department completed the mixing process for those 300 rolls and also started and completed the mixing process for an additional 4,200 rolls of paper.
The department started but did not finish the mixing process for an additional 500 rolls, which were 20% complete with respect to both direct materials and conversion work at the end of March.
Direct materials and conversion costs are incurred evenly throughout the mixing process.
The Mixing Department compiled the following data for March:
Direct Materials Direct Labor Manufacturing Overhead Allocated Total Costs
Beginnning
inventory, Mar. 1 $350 $245 $200 $795
Costs added
during March 4,940 3,000 3,225 11,165
Total costs $5,290 $3,245 $3,425 $11,960
Required:
1. Prepare a production cost report for the Mixing Department for March.
The company uses the weighted-average method.
2. Journalize all transactions affecting the company's mixing process during March.
Assume labor costs are accrued and not yet paid.
Answer:
Roan Paper Co.
Mixing Department
Production Cost Report for March:
Direct Direct Manufacturing Total Costs
Materials Labor O/h Allocated
Beginning inventory $350 $245 $200 $795
Costs added during
March 4,940 3,000 3,225 11,165
Total costs $5,290 $3,245 $3,425 $11,960
less Ending inventory $115 $71 $74 $260
Cost of production $5,175 $3,174 $3,351 $11,700
2. General Journal:
Date Description Debit Credit
March
Cost of production $11,700
Direct Materials $5,175
Direct Labor $3,174
Manufacturing overhead $3,351
To record the cost of production for march.
Direct Materials costs $5,175
Direct Labor costs $3,174
Manufacturing overhead $3,351
Cash Account $8,526
Wages Payable $3,174
To record costs of materials, labor and overhead.
Explanation:
a) Data and Calculations for March:
Direct Direct Manufacturing Total Costs
Materials Labor O/h Allocated
Beginning inventory $350 $245 $200 $795
Costs added during
March 4,940 3,000 3,225 11,165
Total costs $5,290 $3,245 $3,425 $11,960
Total units = 5,000 ( Beginning = 300, March started = 4,200 and Ending = 500 units)
Beginning inventory of 300 and started and completed, 4,200 were 100% complete = 4,500
Ending inventory of 500 were 20% complete = 100 units.
b) Calculation of Equivalent units:
Direct Direct Manufacturing Total Costs
Materials Labor O/h Allocated
Units completed 4,600 4,600 4,600 4,600
Ending inventory 100 100 100 100
Production for March 4,500 4,500 4,500 4,500
Unit cost per
equivalent unit $1.15 $0.71 $0.74 $2.60
Cost of Ending WIP $115 $71 $74 $260
Cost of production $5,175 $3,174 $3,351 $11,700
b) Equivalent units are the units under production multiplied by their percentage of completion. Usually, completed units have 100% completion, while work in process do not have 100% completion with respect to conversion costs, especially. The purpose of calculating equivalent units is to determine accurate costs of units completed.
c) The weighted-average method in allocating production costs means that the beginning inventory, units started and completed in the period, and the equivalent units of ending inventory are added. Then the costs of materials, labor, and overhead are allocated based on the average costs.
On December 31, 2021, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $44,000 and $1,300, respectively. During 2022, Coolwear wrote off $775 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $4,100 at December 31, 2022. Bad debt expense for 2022 would be:
Answer: $3,575
Explanation:
Opening balance for Allowance for Noncollectable Accounts for 2022 is closing balance for 2021 = $1,300.
Cool wear wrote off $775 during the year which would come out of the allowance;
= 1,300 - 775
= $525
An allowance of $4,100 was determined for the year which means that the Bad debt expense is the difference between the determined allowance and the current balance because this is the amount that the account had to be increased by to cater for the bad debt expense.
= 4,100 - 525
= $3,575
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.
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
A job cost sheet of Fugate Company is given below.
Job Cost Sheet
Date Direct Materials Direct Labor Manufacturing Overhead
5/10 1,330
12 1,120
15 550 825
22 480 720
24 1,000
27 1,870
31 670 1,005
Cost of completed job:
Direct materials.
Direct labor.
Manufacturing Overhead.
Total cost.
Unit cost.
Requried:
a. What is the predetemined manufacturing overhead rate?
b. What are the total cost and the unit cost of the completed job?
c. Prepare the entry to record the completion of the job.
Answer:
A.Direct material 5,320
Direct labour 1,700
Manufacturing overhead 2,550
B. Total cost 9,570
Unit cost 6.38
C. Dr Finished goods inventory account 9,570
Cr Work in Process inventory account 9,570
Explanation:
A. Calculation for the predetemined manufacturing overhead rate
Date Direct material Direct Labour Manufacturing Overhead
5/10 1,330
12 1,120
15 550 825 825
22 480 720 720
24 1,000
27 1,870
31 670 1,005
Total 5,320 1,700 2,550
B. Calculation for the total cost and the unit cost of the completed job
Cost of Completed job :
Direct material 5,320
Direct Labour 1,700
Manufacturing Overhead 2,550
Total Cost 9,570
Unit Cost = Total Cost / Number of units
Unit cost = 9,570/1,500
Unit cost = 6.38
C.Therefore when a job is fully completed, thebFinished goods inventory account will be
debited with the correspondent credit of Work in progress account.
Journal entry
May.31
Dr Finished goods inventory account 9,570
Cr Work in Process inventory account 9,570
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
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.
tock is trading at $100 and you buy a put option on it with one year to expiration and a strike price of $110. The put premium is $15. What is the maximum profit you can make on this put option if you wait until expiration
Answer:
The answer is -$5
Explanation:
A put option gives its owner/holder the right but not the obligation to sell. The holder of a put option is expecting the price of the underlying asset(stock) to drop.
The formula is:
Profit = max(0, X - St) - P
where X is the strike or exercise price
St is the market value or the spot price of the underlying asset
P is the premium
max(0, $110 - $100) - $15
10 - $15
-$5
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.
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.