Answer:
A) The company must consume more than 666667 solenoids per year to make the in-house option least costly.
B) - quality of the product
- prompt delivery of products
- good communication & relationship with external parties.
Explanation:
A) Since if they use a subcontractor, they will share part of the equipment cost, Let the cross over point for manufacturing the solenoid in house and using a contractor be denoted as x.
Now, variable costs of labor and material are $5.00 per unit. This is 5x
Also from the subcontractor, production of the part is estimated at $8.00 per unit. This is 8x.
Thus;
6000000 + 5x = 4000000 + 8x
Rearranging, we have;
6000000 - 4000000 = 8x - 5x
3x = 2000000
x = 2000000/3
x ≈ 666667
Thus, the company must consume more than 666667 solenoids per year to make the in-house option least costly.
B) Apart from cost, other factors the company must consider are quality of the product, prompt delivery of products, good communication & relationship with stakeholders involved.
Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2020. During that time, he earned $76,000 of self-employment income. On April 1, 2020, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Inc. From April through the end of the year, Kyle earned $196,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year
Answer:
$18,943.40
Explanation:
FICA taxes when Kyle was self employed = $76,000 x 15.3% = $11,628
Social security taxes while employed = ($137,700 - $76,000) x 6.2% = $3,825.40
Medicare taxes while employed = [($200,000 - $76,000) x 1.45%] + [($196,000 + $76,000 - $200,000) x 2.35%] = $1,798 + $1,692 = $3,490
Total FICA taxes = $18,943.40
Which term refers to the interest the Federal Reserve Bank (Fed) charges banks for loans? open‑market sale fractional banking reserve ratio money multiplier discount rate Select the charge the Fed levies on banks borrowing funds that would result in the smallest increase in the money supply. two percentage points above the private level one percentage point above the private level the same as the private level one percentage point below the private level two percentage points below the private level
Answer:
Which term refers to the interest the Federal Reserve Bank (Fed) charges banks for loans?
discount ratethe discount rate is the interest rate that the Federal Reserve System charges banks for the loans it makes. The overnight rate or the federal funds rate is even lower, but it lasts a few hours only.
Select the charge the Fed levies on banks borrowing funds that would result in the smallest increase in the money supply.
two percentage points above the private levelthe higher the interest rate, the lower the increase in the money supply.
Since EBIT is not necessarily indicative of cash flow, many financial analysts adjust the formulation by: a. adding unpaid taxes to EBIT in the TIE formula b. adding unpaid taxes and interest to EBIT in the formula c. adding depreciation to EBIT in the TIE formula d. adding unpaid taxes, interest and depreciation to EBIT in the TIE formula
Answer: c. adding depreciation to EBIT in the TIE formula
Explanation:
The Times Interest Earned Ratio is used to measure the ease by which a company can pay its interest charges using its earnings before tax.
As depreciation is a non-cash expense, the amount apportioned to depreciation can be used when paying for interest so adding it back to the EBIT ensures that the cash resources of the company are included in the analysis of whether a company can pay back debt.
Miracle Green Corporation operates two garden supply stores: A and B. The following information relates to store A: Sales revenue$900,000 Variable operating expenses 400,000 Fixed expenses: Traceable to A and controllable by A 275,000 Traceable to A and controllable by others 120,000 A's segment profit margin is: Multiple Choice $505,000. $105,000. $225,000. $500,000. $380,000.
Answer:
A's segment profit margin is $105,000.
Explanation:
To measure the economic performance of the division, we include other items that the divisional manager can not influence but traceable to the division.
Miracle Green Corporation
Calculation of Store A segment profit margin
Sales revenue $900,000
Less operating expenses ($400,000)
Controllable Contribution $500,000
Less Fixed Expenses
Traceable to A and controllable by A ($275,000)
Controllable Profit $225,000
Less Fixed Expenses
Traceable to A and controllable by others ($120,000)
Segment Profit Margin $105,000
Sheffield Corp. assigned $1601000 of accounts receivable to Pharoah Company as security for a loan of $1344000. Pharoah charged a 2% commission on the amount of the loan; the interest rate on the note was 9%. During the first month, Sheffield collected $404000 on assigned accounts after deducting $1480 of discounts. Sheffield accepted returns worth $5400 and wrote off assigned accounts totaling $11910. The amount of cash Sheffield received from Pharoah at the time of the assignment was
Answer:
$1,317,120
Explanation:
Cash received by Sheffield Corporation at the time of assignment = Amount borrowed - Commission paid
= $1,344,000 - ($1,344,000 * 2%)
= $1,344,000 - $26,880
= $1,317,120
So, the amount of cash Sheffield received from Pharoah at the time of the assignment was $1,317,120
A standard measure of leverage is the debt/equity ratio. According to conventional wisdom among financial analysts, a high debt/equity ratio indicates a high risk of insolvency or ultimate bankruptcy; conversely, a low debt/equity ratio indicates that the company is relatively solvent and able to meet its long-term obligations. Please see PowerPoints 59 and 60 in chapter 3 (copied below). In the case of Apple, their debt/equity ratio actually increased from 2002 to 2020. In other words, Apple carries more debt today relative to its equity than it did in 2002. However, very few people would argue that Apple is a riskier company today than in 2002. Please make an argument, supported by data, for why Apple is at least as solvent today as it was in 2002, despite its much higher debt/equity ratio. The argument should not just be supported by data, but you also need to provide either an additional keen insight (addressed to an accounting/finance professional) or do an excellent job explaining the concept to an audience member who is not an accounting/finance professional.
To whom did you address the answer above, to a professional or non-professional?
Answer:
There are three main reasons why Apple is a less risky company in 2020 than it was in 2020:
Apple is sitting on an enormous amount of cash. Apple has over 39 billion in cash, which is a very good amount to meet interest payments and dividend payments, making it very unlikely for the company to become unsolvent in the near future.Apple has a very high market capitalization, which is the total monetary value of the company stock. In fact, Apple is the number one company in the world by market capitalization, with 2.0 trillion dollars of market cap.The value of the stock of Apple has gone up substantially since 2002, sitting currently at 121 USD per share. This represents public confidence in the company from investors, and since Apple has good fundamentals, it is unlikely that the price of the stock will go down substantially in the near future.
Jenny, who is married and the mother of three, is 25 years old and expects to work until 70. She earns $45,000 per year. Jenny expects inflation to be 3% over her working life, and the appropriate risk-free discount rate is 5%. Her personal consumption is equal to 25% of her after-tax earnings, and her combined federal and state marginal tax bracket is 15%. What is the amount of life insurance necessary for Jenny using the Human Life Value method
Answer:
$855,903.20
Explanation:
Real discounting rate=> i= [i'-f]/[1+f]. Where i is the real interest rate. i' is the nominal interest rate which is given as 5% and f is the rate of inflation
i = (5%-3%)/1+3%)
i = 2/1.3
i = 1.94%
Her after tax earnings = 45,000*(1-0.15) = $38,250
Personal consumption = 25% of this, 38,250*0.75 = $28,688.
We are discounting her earnings back 45 years at 1.94%. The equation will be: 28,688 * {1-(1+0.01940)^-45} / {0.01940}
= 28,688 * {1 - 0.42120322099] / 0.01940
= 28,688 * 29.83488551597938
= 855903.1956824165
= $855,903.20
So, the amount of life insurance necessary for Jenny using the Human Life Value method is $855,903.20
Paul Company had 100,000 shares of common stock outstanding on January 1, 2021. On September 30, 2021, Paul sold 40,000 shares of common stock for cash. Paul also had 6,000 shares of convertible preferred stock outstanding throughout 2021. The preferred stock is $100 par, 6%, and is convertible into 3 shares of common for each share of preferred. Paul also had 420, 8%, convertible bonds outstanding throughout 2021. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2021 was $270,000 with a 40% tax rate. Common shareholders received $1.20 per share dividends after preferred dividends were paid in 2021.
Required: Compute basic and diluted earnings per share for 2021. (Round your answers to 2 decimal places.)
Answer:
Basic EPS = [$270,000 - (6% * $100 * 6,000)] / [100,000 + 40,000 * 3/12]
Basic EPS = [$270,000 - $36,000] / 35,000
Basic EPS = $234,000 / 35,000
Basic EPS = 6.685714285714286
Basic EPS = 6.69
Diluted EPS = [$270,000 + ($420,00*8%*60%)] / [100000 + 40,000 * 3/12 + (420*30) + (6,000*3)]
Diluted EPS = [$270,000 + $2,016] / [35,000 + 12600 + 18,000]
Diluted EPS = $272,016 / 65,600
Diluted EPS = 4.146585365853659
Diluted EPS = $4.15
b. A Venezuelan-style economic collapse would be less likely in a mixed economy like the United States because
a. corruption is less likely when economic power is more diffused.
b. private industry has strong financial incentives to produce efficiently.
c. mixed economies like the United States usually have a more equal distribution of income.
d. inflation is always low in a mixed economy.
Answer:
a. corruption is less likely when economic power is more diffused. b. private industry has strong financial incentives to produce efficiently.Explanation:
Venezuela is a planned / command economy which means that the government directs production of goods and services in the country. This can lead to corruption as those in government would become quite powerful and engage in activities that would make them richer at the expense of the nation because they will have the required access to do so.
As the government directs most things, there is less private industry and competition. With a lack of competition, companies will not see the need to compete and would end up being inefficient.
These are what happened in Venezuela.
On August 5, 2021, Carla Vista Furniture shipped 30 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $420 each. The cost of shipping the dining sets amounted to $4300 and was paid for by Carla Vista Furniture. On December 30, 2021, the consignee reported the sale of 20 dining sets at $920 each. The consignee remitted payment for the amount due after deducting a 7% commission, advertising expense of $670, and installation and setup costs of $850. The amount cash received by Carla Vista furniture is
Answer:
$15,592
Explanation:
Calculation to determine what The amount of cash received by Carla Vista furniture is
Cash received =[(20 × $920)*(100%-7%)] - $670 - $850
Cash received=($18,400*93%)-$670-$850
Cash received=17,112-$670-$850
Cash received=$15,592
Therefore The amount of cash received by Carla Vista furniture is $15,592
RideShare offers short-term rentals of vehicles that are kept in small lots in urban neighborhoods with plenty of potential customers. With one lot, it has six cars. The interarrival time of potential demand for this lot from its base of customers is 20 minutes. The average rental period is 4 hours. If a customer checks availability of vehicles in this lot online and finds that they are all rented for the desired time, the customer skips renting and finds alternative arrangements. However, because customers pay a monthly fee to subscribe to this service, RideShare does not want customers to be disappointed too often.
Required:
a. What is the offered load?
b. What is the implied utilization?
c. What is the capacity of the process (rentals per hour)?
d. What is the probability that all eight cars are rented at the same time?
Answer:
a. Offered load = 1 lot / 4 hours = 6 cars/4 hours = 1.5 cars/hours
b. Demand rate = Total cars per 4 hours/20 minutes time
Demand rate = 6*4 / 20
Demand rate = 24/20
Demand rate = 1.2 cars/hours
Implied utilization = Demand rate / Offered load
Implied utilization = 1.2/1.5
Implied utilization = 0.8
Implied utilization = 80%
c. Capacity of the process = 1 lot / 5 hours
Capacity of the process = 6 / 5
Capacity of the process = 1.2 rentals per hours
d. Probability that all eight cars are rented at the same time
=> (1 - 0.8) * (0.8)^8
=> 0.2 * 0.1678
=> 0.03356
=> 3.36
The rational rule of consumption is to consume more today if the: marginal benefit of a dollar of consumption today is greater than (or equal to) the marginal benefit of spending a dollar plus interest in the future. price of consumption today exceeds the dollar-plus-interest in the future. marginal benefit of a dollar of consumption today is less than the marginal benefit of spending a dollar plus interest in the future. real interest rate in the future is expected to be higher than the real interest rate today.
Answer:
marginal benefit of a dollar of consumption today is greater than (or equal to) the marginal benefit of spending a dollar plus interest in the future.
Explanation:
A rational consumer should consume more today when the marginal benefit of a dollar of consumption today is greater than (or equal to) the marginal benefit of spending a dollar plus interest in the future.
A rational consumer should continue to consume up until the point where the marginal benefit of a dollar of consumption today is equal to the marginal benefit of spending a dollar plus interest in the future
If the marginal benefit of a dollar of consumption today is less than the marginal benefit of spending a dollar plus interest in the future, a rational consumer should postpone consumption until the future.
A company purchased a new pizza oven for $12,676. It will work for 5 years and has no salvage value. The tax rate is 41%, and annual revenues are constant at $7,192. For financial reporting, the straight-line depreciation method is used, but for tax purposes depreciation is 35% of original cost in years 1 and 2 and the remaining 30% in Year 3. For this question ignore all expenses other than depreciation. What is the tax payable for year one?
A. $2,535 $3,169
B. $4,657 $2,748
C. $2,748 $2,535
Answer:
straight line depreciation rate = $12,676 / 5 = $2,535.20
financial reporting income = $7,192 - $2,535.20 = $4,657 x 41% = $1,909
Accelerated depreciation = $12,676 x 35% = $4,437
taxable income = $7,192 - $4,437 = $2,755 x 41% = $1,130
tax expense for year 1 = $1,130
deferred tax liability for year 1 = $1,909 - $1,130 = $779
financial reporting income = $4,657
taxable income = $2,755
True or False: The largest companies performed the best over the past 12 months. Give evidence to support your answer.
The largest companies performed the best over the past twelve months, this given statement is false because over the last twelve months companies have faced huge losses due to pandemic.
What losses did businesses face during the Pandemic?Businesses have reduced employment, supply chain have got affected, lack of storage, less demand for products and services, human resource loss, productivity loss, and increased expenditures of the firms, these are some of the major losses faced by the companies during the pandemic.
Thus, the given statement is false.
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During May, Salinger Company accumulated 740 hours of direct labor costs on Job 200 and 900 hours on Job 305. The total direct labor was incurred at a rate of $20 per direct labor hour for Job 200 and $23 per direct labor hour for Job 305.Journalize the entry to record the flow of labor costs into production during May. If an amount box does not require an entry, leave it blank.
Answer:
May
Dr Work in Process $35,500
Cr Wages Payable $35,500
Explanation:
Preparation of the Journal entry to record the flow of labor costs into production during May
Based on the information given the Journal entry to record the flow of labor costs into production during May will be :
May
Dr Work in Process $35,500
Cr Wages Payable $35,500
Calculated as:
Labor costs = (740*20)+(900*23)
Labor costs=14,800+20,700
Labor costs=$35,500
Which of the following choices represents two consumers?
A grass and grasshopper
B.rabbit and dog
C. mushroom and frog
D.turtle and flower
I need help ASAP
Answer:
Option B
Hope it helps..
The choice that represents two types of customers is B.rabbit and dog.
What kind of customers are rabbits and dogs?Rabbits are a type of customer that will not pay very much for the goods they buy. They prefer cheap things.
Dogs on the other hand, are easier to negotiate with to make profits because they usually accept a price as it is.
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Dermody Snow Removal's cost formula for its vehicle operating cost is $3,030 per month plus $333 per snow-day. For the month of December, the company planned for activity of 15 snow-days, but the actual level of activity was 17 snow-days. The actual vehicle operating cost for the month was $8,300. The spending variance for vehicle operating cost in December would be closest to:
Answer:
391 F
Explanation:
Calculation to determine what The spending variance for vehicle operating cost in December would be closest to
Using this formula
Spending variance for vehicle operating cost = Flexible budget-Actual
Let plug in the formula
Spending variance for vehicle operating cost= (333*17+3,030)-8300
Spending variance for vehicle operating cost=(5,661+3,030)-8,300
Spending variance for vehicle operating cost=8,691-8,300
Spending variance for vehicle operating cost=391 F
Therefore The spending variance for vehicle operating cost in December would be closest to
391 F
Esquire Comic Book Company had income before tax of $1,800,000 in 2021 before considering the following material items:
1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $420,000. The division generated before-tax income from operations from the beginning of the year through disposal of $660,000.
2. The company incurred restructuring costs of $85,000 during the year.
Required:
Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25% Ignore EPS disclosures.
Answer:
Esquire Comic Book Company
Partial Income Statement
For the year ended December 31, 2021
Income from continuing operations $1,800,000
Income tax expense ($450,000)
Net income from continuing operations $1,350,000
Discontinued operations Gain/Loss
Loss from disposal ($420,000)
Income from discontinued operations $660,000
Income taxes ($60,000) $180,000
Net income $1,530,000
Two important group outcomes or consequences of the interactive
process that unfolds between a leader, follower, and the situation
include:
Answer:
task performance and group maintenance.
Explanation:
Leadership can be defined as a process which typically involves motivating, encouraging and inspiring employees working under an individual to be innovative and create positive changes that will foster growth and enhance the success of a business firm or company in the future.
This ultimately implies that, beyond an individual possessing the traits or qualities of a leader, leadership in itself is a process that revolves around the activities or happenings between the leader and those who he or she is leading, which are the followers. Thus, leadership is simply a continuous process and it's transactional in nature because it occurs between a leader and the followers.
A leader can be defined as an individual who is saddled with the responsibility of controlling, managing and maintaining a group of people under him or her.
Some types of power expressed by leaders are referent power, coercive power, etc.
Hence, two important group outcomes or consequences of the interactive process that unfolds between a leader, follower, and the situation include task performance and group maintenance.
Leaders are saddled with the responsibility of ensuring that the follower performs his or her duties or tasks as stated in the contract and to foster cohesion among the various team members.
While implementing an affirmative action plan, an employer is expected to do all of the following except:establish objectives that can be met by applying good faith efforts.set quotas for the underrepresented groups, and ensure they are met even if it is necessary to hire a less qualified candidate.make all employment decisions in a nondiscriminatory manner.ensure that hiring objectives do not establish a floor or a ceiling for employment of certain groups.
Answer:
set quotas for the underrepresented groups, and ensure they are met even if it is necessary to hire a less qualified candidate.
Explanation:
Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan.
Planning is a term used to describe the process of developing the organization's objectives and translating those into courses of action.
This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods that are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.
While implementing an affirmative action plan, an employer is expected to do all of the following;
I. Establish objectives that can be met by applying good faith efforts.
II. Make all employment decisions in a nondiscriminatory manner.
III. Ensure that hiring objectives do not establish a floor or a ceiling for employment of certain groups.
You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P, constructed with two risky securities, X and Y. The weights of X and Y in P are 0.60 and 0.40, respectively. X has an expected rate of return of 0.14 and variance of 0.01, and Y has an expected rate of return of 0.10 and a variance of 0.0081. What would be the dollar values of your positions in X and Y, respectively, if you decide to hold 40% of your money in the risky portfolio and 60% in T-bills
Answer:
The answer is "[tex]x=\$240 \ and \ y= \$160[/tex]"
Explanation:
Total amount[tex]= \$1000[/tex]
when [tex]40\%[/tex] a risky portfolio [tex]= 0.4 \times \$1000=\$400[/tex]
calculating the risky portfolio value on [tex](\$400)[/tex]
When [tex]60\%[/tex] consist of x
[tex]\to \$400 \times 0.6\\\\\to \$240[/tex]
When [tex]40\%[/tex] consist of y
[tex]\to \$400 \times 0.4\\\\\to \$160[/tex]
So, the dollar value in [tex]x=\$240 \ and \ y= \$160[/tex]
Page 577 17.2. How do banks create money? Consider this hypothetical balance sheet for YooHoo Bank, in the fictional country of Hellond. YooHoo Bank Assets (in thousands of U.S. dollars) Liabilities and owner's equity (in thousands of U.S. dollars) Government securities $1,700 Checking deposits $10,000 Required reserves $800 Owner's equity $1,500 Excess reserves $100 Loans $8,900 Total assets $11,500 Liabilities and net worth $11,500 Calculate YooHoo Bank’s required reserve ratio, as a percentage. Round to the nearest percent if necessary. Type an answer and press enter to submit%
Answer:
8%
Explanation:
Following is the require reserve ratio:
Required reserve ratio = Reserves/ Deposits
Required reserve ratio = $800/$10,000 * 100
Required reserve ratio = 0.08 * 100
Required reserve ratio = 8%
So, the required reserve ratio for YooHoo Bank’s is 8%.
Activity Expected Costs Expected Activity Handling materials $ 625,000 100,000 parts Inspecting product 900,000 1,500 batches Processing purchase orders 105,000 700 orders Paying suppliers 175,000 500 invoices Insuring the factory 300,000 40,000 square feet Designing packaging 75,000 2 models Required: 1. Compute a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. In January 2017, the Deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate.
Answer and Explanation:
The computation is shown below:
1. Plant wide overhead rate = Budgeted Overheads ÷ Budgeted Activity.
where,
Budgeted Overheads :
Handling materials 625,000
Inspecting product 900,000
Processing purchase orders 105,000
Paying suppliers 175,000
Insuring the factory 300,000
Designing packaging 75,000
Total Cost 2,180,000
And, the budgeted activity is 125,000
So, Plant wide overhead rate is
= Budgeted Overheads ÷ Budgeted Activity.
= $2,180,000/125,000
= $17.44 per direct labor hour
Now Assignment of Overheads
As Deluxe model required 2,500 direct labor hours
So, Deluxe model = 2,500 × $17.44
= $43,600
As Basic model required 6,000 direct labor hours
So, Basic model = 6,000 × $17.44
= $104,640
Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year 2,000 $ 5 For the current year: Purchase, March 21 5,000 6 Purchase, August 1 3,000 8 Inventory, December 31, current year 4,000 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods.
Answer:
Total unit sold = Opening balance + Purhase in march + Purchase in August - Closing balance
Total unit sold = 2000 + 5000 +3000 - 4000
Total unit sold = 6000 units
1. FIFO method:
So total cost of goods sold is (2000*$5) + (4000*$6)= $34,000
Ending inventory value is (1000*$6) + (3000*$8) = $30,000
2. LIFO method:
So total value of goods sold is (3000*$8) + (3000*$6) = $42,000
Ending inventory value is (2000*6) + (2000*$5) = $22,000
3. Average cost of inventory:
Opening inventory (2000* $5) + Purchase on Mar.21 (5000*$6) + Purchase on August 1 (3000*$8) = $64,000
Total units = 2000 + 5000 + 3000
Total units = 10,000
Average cost is $64,000/10,000 (units) = $6.40 per unit
So, Cost of goods sold is 6000*$6.40 = $38,400
Ending Inventory value is 4000*$6.40 = $25,600
A company using public relations sends information to media outlets such as
newspapers and radio stations. Who decides what information about the
company the outlets will publish?
A. The media outlets
B. The audience for the media outlets
C. The marketer
D. The publicity agency
N it
Answer:
A. the media outlets
Explanation:
took the test
A company using public relations sends information to the media outlets such as newspapers and radio stations because it is the media outlets who decide what information the company will publish. Hence, option A is appropriate.
What are Public Relations?Public relations or the PR sectors are very important functions for the company as well as the institution of their own. The main method of understanding is that the nature of public relations is not very well known, but can be understood to have taken place for a very long period.
The Public Relations in an organization strategically manages the relationship of that organization with that of the individuals and the public residing in their place. The main thing regarding public Relations is that everyone can be upheld for whatever they have been doing for a long period.
Public Relations is given the task to increase the consumer or the public who are more friendly with that the Company to increase. Hence, option A is correct.
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Hyu Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 52,400 labor-hours. The estimated variable manufacturing overhead was $2.82 per labor-hour and the estimated total fixed manufacturing overhead was $1,196,840. The actual labor-hours for the year turned out to be 53,000 labor-hours. The predetermined overhead rate for the recently completed year was closest to:
Answer:
The predetermined overhead rate for the recently completed year would be $25.66
Explanation:
The predetermined overhead rate is computed as;
= Total estimated manufacturing overhead / estimated direct labor
Where;
Total estimated manufacturing overhead = Estimated total fixed manufacturing overhead + estimated variable manufacturing overhead rate × estimated labor hours
= $1,196,840 + $2.82 × 52,400
= $1,196,840 + $147,768
= $1,344,608
Therefore,
Predetermined rate = $1,344,608 / 52,400 hours
Predetermined rate = $25.66
Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $86,000 and Cost of Goods Sold of $452,000.Included in Inventory (and Accounts Payable) are $13,200 of lenses SLC is holding on consignment.Included in SLC’s Inventory balance are $6,600 of office supplies held in SLC’s warehouse.Excluded from SLC’s Inventory balance are $9,600 of lenses in the warehouse, ready to send to customers on January 2. SLC reported these lenses as sold on December 31, at a price of $18,200.Included in SLC’s Inventory balance are $3,800 of lenses that were damaged in December and will be scrapped in January, with zero realizable value.Required:For each item, (a)-(d), prepare the journal entry to correct the balances presently reported. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
Seemore Lens Company (SLC)
Journal Entries to correct the balances presently reported:
a) Debit Accounts payable $13,200
Credit Inventory $13,200
To record lenses held on consignment.
b) Debit Office Supplies $6,600
Credit Inventory $6,600
To record office supplies.
c) Debit Inventory $9,600
Credit Cost of goods sold $9,600
To exclude from cost of goods sold lenses in the warehouse for January 2 delivery.
c) Debit Sales Revenue $18,200
Credit Accounts Receivable $18,200
To exclude from sales revenue lenses not yet sold.
d) Debit Cost of goods sold $3,800
Credit Inventory $3,800 (Scrap)
To record the cost of scrap.
Explanation:
a) Data and Analysis:
Reported Inventory = $86,000
Reported Cost of Goods Sold = $452,000
Transactions:
a) Accounts payable $13,200 Inventory $13,200
b) Office Supplies $6,600 Inventory $6,600
c) Inventory $9,600 Cost of goods sold $9,600
c) Sales Revenue $18,200 Accounts Receivable $18,200
d) Cost of goods sold $3,800 Inventory $3,800 (Scrap)
A pharmaceutical company in Belgium decides to expand into additional markets. It conducts research and decides to focus on marketing and delivering its products to Hungary and the Czech Republic. In order to be successful, the company recognizes it must translate its marketing, product instructions, and packaging into the local languages. In addition, the company decides to partner with local advertising companies to make sure its marketing and advertising is customized to fit the preferences of the local markets. The pharmaceutical company has chosen to use which type of marketing strategy to expand globally?
a. centralization strat
b. localization strat
c. standardization strat
Answer:
C) standardization strategy
Explanation:
standardization strategy can be regarded as one whereby a business owner or firm give same treatment to the whole world as if it's just one market that have just small meaningful variation It's base on an assumption that needs of people can be met with a product.
On January 1, 2018, Surreal Manufacturing issued 600 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $583,352. Surreal uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year.
Required:
1. Prepare a bond amortization schedule 2-5.
2. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement.
Answer:
Period Bonds Interest Cash Increase in Bonds payable
Payable Expenses Paid Bonds payable at the end
2018 583352 23334.08 18000 5334.08 588686.1
2019 588686.1 23547.44 18000 5547.44 594233.5
2020 594233.5 23766.48 18000 5766.48 600000
Journal entries
Jan 01 2018
Cash account Dr $583352
Discount on Bonds Payable Dr $16648
Bonds payable Cr $600000
Dec 31 2018
Interest expense Dr $23334.08
Cash account Cr $18000
Discount on bonds Payable Cr $5334.08
Dec 31 2019
Interest expense Dr $23547.44
Cash account Cr $18000
Discount on bonds Payable Cr $5547.44
Dec 31 2020
Interest expense Dr 23766.48
Cash account Cr $18000
Discount on bonds Payable Cr $5766.48
Dec 31 2020
Bonds Payable Dr $600000
Cash account Cr $600000
01.01.2020 (Redemption at 101)
Bonds Payable Dr $600000
Loss on redemption of bonds Dr $11766.48
Cash account (600000*101%) Cr $606000
Discount on bonds payable Cr $5766.48
1. Surrel Manufacturing's bond amortization schedule is as follows:
Bond Amortization Schedule
Date Cash Payment Interest Expense Amortization Carrying Value
Jan. 1, 2018 $583,352
Dec. 31, 2018 $18,000 $23,334 $5,334 $588,686
Dec. 31, 2019 $18,000 $23,547 $5,547 $594,233
Dec. 31, 2020 $18,000 $23,767 $5,767 $600,000
2. Journal Entries to record the bond issuance, interest payments are as follows:
January 1, 2018
Debit Cash $583,352
Debit Bonds Discounts $16,648
Credit Bonds Payable $600,000
To record the issuance of the bonds at a discount.December 31, 2018
Debit Interest Expense $23,334
Credit Bonds Discounts $5,334
Credit Cash $18,000
To record the payment of interest and discount amortization.December 31, 2019
Debit Interest Expense $23,547
Credit Bonds Discounts $5,547
Credit Cash $18,000
To record the payment of interest and discount amortization.December 31, 2020
Debit Interest Expense $23,767
Credit Bonds Discounts $5,767
Credit Cash $18,000
To record the payment of interest and discount amortization.December 31, 2020
Debit Bonds Payable $600,000
Credit Cash $600,000
To record the retirement of the bonds payable.Data and Calculations:
Face value of bonds issued = $600,000 (600 x $1,000)
Bonds proceeds = $583,352
Bonds discounts = $16,648
Coupon interest rate = 3%
Market interest rate = 4%
Maturity period = 3 years
Issuance date = January 1, 2018
Maturity date = December 31, 2020
December 31, 2018:
Cash payment = $18,000 ($600,000 x 3%)
Interest Expense = $23,334 ($583,352 x 4%)
Amortization of discounts = $5,334 ($23,334 - $18,000)
Carrying value of bond = $588,686 ($583,353 + $5,334)
December 31, 2019:
Cash payment = $18,000 ($600,000 x 3%)
Interest Expense = $23,547 ($588,686 x 4%)
Amortization of discounts = $5,547 ($23,547 - $18,000)
Carrying value of bond = $594,233 ($588,686 + $5,547)
December 31, 2020:
Cash payment = $18,000 ($600,000 x 3%)
Interest Expense = $23,767 ($594,233 x 4%)
Amortization of discounts = $5,767 ($23,767 - $18,000)
Carrying value of bond = $600,000 ($594,233 + $5,767)
Learn more: https://brainly.com/question/25524725
Steve and Holly report the following items for 2020: Dividend income $16,000 Interest income 14,000 Itemized deductions (none of the amount resulted from a casualty loss) (26,000) Business capital gains 2,000 Business capital losses (10,000) In calculating their net operating loss, and with respect to the above amounts only, what amount must be added back to taxable income (loss)
Answer: ($4000)
Explanation:
Based on the information given in the question, the amount that must be added back to taxable income (loss) in calculating their net operating loss, will be:
Dividend income = $16000
Add: Interest income = $14000
Add: Business capital gain = $2000
Less: Business loss = $10000
Less: Itemized deduction = $26000
Taxable loss = ($16000 + $14000 + $2000) - ($10000 + $26000)
= $32000 - $36000
= - $4000