Answer:
500 bottles should be ordered at a time.
20 orders should the warehouse place in a year to minimize inventory costs.
Explanation:
The number of bottles which minimizes the warehouse cost is known as the economic order quantity.
Economic Order quantity minimizes both the holding or carrying cost of inventory as well as the ordering cost.
Economic Order quantity = √((2 × Annual demand × cost per order) / Holding cost per unit)
= √((2 × 10,000 × $125) / $10)
= 500 bottles
Number of Order = Total Demand / Economic Order Quantity
= 10,000 / 500
= 20 orders
Conclusion :
500 bottles should be ordered at a time.
20 orders should the warehouse place in a year to minimize inventory costs.
Changes in tariffs and quotas are: Group of answer choices infrastructure changes. corporate strategies designed to maximize profits. efforts to stimulate choices among government agencies. government actions that reduce competition from international firms. business actions stimulating imports.
Answer:
The answer is D. government actions that reduce competition from international firms
Explanation:
A tariff is a form of tax imposed by a government on goods and services imported from other countries. A tariff may be levied either to raise revenue or to protect domestic industries. On the other hand is quotas(import quotas) is a form of trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time.
Therefore, changes in tariffs and quotas are government actions that reduce competition from international firms.
Kaye Co. issued $7 million face amount of 5%, 10-year bonds on April 1, 2013. The bonds pay interest on an annual basis on March 31 each year. Required: a. Assume that market interest rates were slightly lower than 5% when the bonds were sold. Would the proceeds from the bond issue have been more than, less than, or equal to the face amount?
Answer:
By extracting the information
Bond issued= 7 million
Maturity period= 10 years
Risk free or Interest rate = 5%
As the market interest value is lesser than 5% of the stated interest rate, thus the bond will be sold for more than its face amount. The lesser the discount rate or market interest rate, the greater the present value of the associated cash flow with the bond becomes. Buyer are ready to pay a premium for getting more interest than they may perhaps get in the marketplace intended for a bond of parallel risk and maturity.
Under which conditions, according to the Porter five-forces model, can a supplier group gain power?
a. When there is low differentiation by the supplier
b. When there is a lack of importance of the buyer to the supplier group
c. When there is not a dominance by a few suppliers
d. When the supplier group does not pose a threat of forward integration
Answer:
b. When there is a lack of importance of the buyer to the supplier group
Explanation:
According to Porter there are five forces that can cause rivalry in a production industry. These are supplier power, threat of new entrants, buyer power, threat of substitutes, and degree of rivalry.
Supplier power is when suppliers are able to benefit from the producers by increasing prices of inputs and gaining some industry profit. Since suppliers supply input and labour to the producer they have a greater control of there is lack of importance of the buyer to the supplier group.
This means that the supplier group has more control on price and quality it supplies to the buyer with buyer having little choice but to buy.
If however buyer is more important to the supplier it means they can control price and quality of inputs
Consider the following activities that take place in a veterinary clinic.
(a) Cleaning cages.
(b) Heating and air conditioning the clinic.
(c) Sending blood work to a lab.
(d) Dispensing medicine.
Which of the following statements is true?
A. Heating and air conditioning the clinic is a facility level activity.
B. Dispensing medicine is a facility level activity.
C. Cleaning cages is a facility level activity.
D. Sending blood work to a lab is a facility level activity.
E. Service entities cannot use ABC for overhead allocation.
Answer:
E. Service entities cannot use ABC for overhead allocation.
Explanation:
ABC costing is limited to use when the cost can be directly traced to a certain activity. All of the Activities are volume driven and overheads would be incurred in small proportion to the overall cost.
Karl Corporation was organized on January 2, 2018. During 2018, Karl issued 40,000 shares at $24 per share, purchased 6,000 shares of treasury stock at $26 per share, and had net income of $600,000. What is the total amount of stockholders' equity at December 31, 2018?
Answer:
The answer is $1,404,000
Explanation:
Total amount realized from the issuance: 40,000 shares x $24
= $960,000
Treasury stock repurchased:
6,000 shares x $26
=$156,000
Net income = $600,000
The total amount of stockholders' equity at December 31, 2018 is:
Net income + amount realized from issuance - amount of treasury stock
$600,000 + $960,000 - $156,000
$1,404,000
Determine which are risks that discourage international investing and which are opportunities.
a. Hot money
b. Interrelated international capital market
c. Financial services outside of regulation
d. Information gap
e. Change in government restrictions
f. Reducing risk reduction
g. Faster and more information
h. Liquidity
Answer:
Opportunities
Faster and more information
When information is bountiful and disseminated speedily, investors are more confident that the financial system is strong and will be more likely to invest.
Liquidity,
Investors love being able to change their assets to physical money as soon as possible. If this is hard in a country, they will not invest.
Change in government restrictions
When Government restrictions that limit opportunities are lifted, investors come in larger numbers to take advantage of these new opportunities.
Risks
Financial services outside of regulation
Investors would prefer that the law is able to protect their assets and so will shun opportunities outside regulation.
Hot money
If there is too much Hot money going in and out of the economy, investors will be worried that too much money could leave the country at the slightest change in interest rates.
Information gap
Information should be widely available. If it is usually concealed from international partners, this can damage portfolios.
Interrelated international capital market
Independent Capital markets are able to withstand problems going on in other capital markets. When a nation's capital market is too interrelated with others this is risky.
Reducing risk reduction
A nation acting to reduce measures that reduce risk is a red flag. Investors want the least risky asset for a certain amount of return.
which one of the following is not of much significance to company managers in deciding whether profitable opportunity exists to install additional new or refurbished production equipment in the upcoming decision round?
A. How branded pairs available for sale in each geographic region in the past year compared with forecasted branded demand in each geographic region in the most recent year--as shown on p. 4 of each year's FIR
B. The growth in branded demand and private-label demand over the next three years (as reported in the Demand Forecast section on p. 4 of each year's FIR)
C. Information in the most recent FIR indicating that more than half of the companies in the industry have expanded their production capacity since Year 10
D. Whether the data on p. 4 of the most recent year's FIR shows that there is already more than enough production capacity worldwide to supply the forecasted demand for branded footwear and private-label footwear worldwide for each of the next three years
E. The size of beginning inventories of branded footwear in each geographic region reported in the most recent FIR
Answer:
The correct answer is C)
Explanation:
Whether or not companies in the industry expanded their capacity is really not of much concern. What should concern management are the other factors:
Forecasted Demand Vs Actual Demand: This tells us what has happened in the marketForecasted Growth in Demand: This tells us what might happen in the marketIndustry-wide capacity to meet demand is critical information: This tell us what other companies are doing and how it is shaping the market. That is, is the market saturated or not.If beginning inventories are very high, in each of the regions reported, installing additional production capacity is not a very sound business decision.Cheers!
6) A factory supervisor's wages are classified as: B) C) D) A) Choice A B) Choice B C) Choice C D) Choice D Indirect labor No Yes Yes No Fixed manufacturing overhead No Yes No Yes
Answer: Choice B
Explanation:
A Factory Supervisor is considered to be Indirect Labor because they are not directly involved in the production process but are there to oversee it. They therefore contribute indirectly to the production process.
Factory Supervisors are paid a specific amount regardless of production quantity. This means their salaries do not change thereby making them Fixed Overhead costs from Manufacturing.
Select the most appropriate answer about bringing components from other continents.
A. It never affects innovation of the final product.
B. It potentially results in better products for the customer.
C. It always increases the cost of the final product.
D. It always lowers the quality of the final product.
E. It has no impact on the production lines in the home country.
Answer: B. It potentially results in better products for the customer.
Explanation:
Importation of components for the production of a good might lead to a potentially better product for consumers because the knowledge base of a superior country in manufacturing the said component would be utilized.
One benefit of Globalization is that better products than can be made locally can be sourced from outside countries so that products are better and stronger.
If a company imports components it could be because they are trying to save costs or it could be that they found Superior products than they did at home. Should the latter be the case then there is a chance that they will make better products because of these better components.
John, Jay, and Jeff each have an ownership interest in Three Guys Burgers, Inc. Based on the following information, which of them is/are considered to have materially participated the conduct of the Three Guys Burgers business this year?
-1- John dedicated more than 500 hours this year to Three Guys Burgers.
-2- Jay devoted 150 hours to Three Guys Burgers this year.
-3- Jeff devoted 115 hours to Three Guys Burgers this year, but also devoted more than 100 hours to several other activities, for a total of 520 hours in all of the activities combined.
Income Tax
Answer and Explanation:
Material participation in the business is when involvement in the business activity exceeds 500 hours during the year. Furthermore, if the activity is a significant activity of participation and the number of aggregate hours worked in all such activities exceeds 500 hours per year, of that kind participation is also construed as material participation.
Therefore, the participation of John and Jeff would be considered as material.
The affairs of the business is managed by head of the family known as karta in ?
Answer:
The affairs of business are managed by the head of the family, who is known as the Karta. In the entire Hindu joint family, the karta occupies a very important position. Karta is the eldest member of the family.
please mark me as brainliest
The payroll register of the Fox Manufacturing Company showed total employee earnings of $32,000 for the week ended April 19, 2019. Compute each of the employer's payroll taxes for the period. Use a rate of 6.2 percent for the employer’s share of the social security tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. Assume all earnings are taxable.
Social security tax
Medicare tax
FUTA
SUTA
Answer:
Social security tax =$1,984
Medicare tax=$464
FUTA tax=$192
SUTA tax=$1,728
Total =$4,368
Explanation:
Computation of each of the employer's payroll taxes for the period for Fox Manufacturing Company.
Using this formula
Tax= Base× Rate =Amount
Let plug in the formula
Social security tax=$32,000×6.2% =$1,984
Medicare tax=$32,000×1.45%=$464
FUTA tax=$32,000×0.6%=$192
SUTA tax=$32,000×5.4%=$1,728
Total=$4,368
Therefore,
Social security tax =$1,984
Medicare tax=$464
FUTA tax=$192
SUTA tax=$1,728
Total =$4,368
"A customer buys 10M of Allied Corporation 8 1/4% debentures, M '34, at 90 on Thursday, Oct 9th. The interest payment dates are Feb. 1st and Aug. 1st. The trade settled on Monday, October 13th. The amount of the next interest payment will be:"
Answer: $412.50
Explanation:
10M bonds refers to bonds that are valued at $10,000.
The interest payment on these debentures are twice in a year meaning that they are semi-annual.
The interest paid is 8 1/4% which is 8.25%.
The interest paid is therefore;
= 8.25% * 10,000
= $825
Interest is stated at an annual rate so this figure is for the year but the interest is to be paid semi-annually;
= 825/2
= $412.50
Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. Cost of goods sold $ 243,000 Merchandise inventory, January 1 71,800 Merchandise inventory, December 31 72,700 Accounts payable, January 1 69,700 Accounts payable, December 31 76,800 Multiple Choice $235,000. $236,800. $251,000. $249,200. $243,000.
Answer:
Cash paid for merchandise is $236,800
Explanation:
Particulars Amount $
Cost of goods sold 243,000
Add: Merchandise inventory, December 31 72,700
Less: Merchandise inventory, January 1 -71,800
Purchases during the period 243,900
Add: Accounts payable, January 1 69,700
Less: Accounts payable, December 31 -76,800
Cash paid for merchandise 236,800
To facilitate integrative bargaining and avoid distributive negotiation, managers should:__________
a. change the organization’s structure.
b. allow personalized conflicts.
c. change the organization’s culture.
d. focus on interests, not demands.
e. use permanent transfers.
Answer:
d. focus on interests, not demands.
Explanation:
Integrative Bargaining is a negotiation strategy in which all parties involved in a dispute agree to work together and find a solution that is beneficial to their dispute. The opposite of distributive negotiation which is a competitive bargaining strategy in which one party gains only if the other party loses something. Therefore in order to facilitate integrative bargaining, managers should focus on interests, not demands. Making sure that what is on the table is beneficial to them even if it is beneficial to the other party as well.
f there are two factors used in producing a good, the least-cost rule specifies that costs have been minimized when Group of answer choices
Answer:
Explanation:
When there are two factors used in producing a good, the least-cost rule specifies that costs have been minimized when the MPP of the first factor divided by its price is equal to the MPP of the second factor divided by its price.
The least cost rule evaluated two factors of production. Let's say labor and capital. production at least cost has the requirements that labor’s marginal product divided by its price is equal to capital’s marginal product divided by its price.
On November 27, the board of directors of Beth Company declared a $.60 per share dividend. The dividend is payable to shareholders of record on December 7 on December 24. Beth has 25,500 shares of $1 par common stock outstanding at November 27. Journalize the entries needed on the declaration and payment dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date Account Titles and Explanation Debit Credit
Nov. 27
Dec. 24
Answer:
November 27, 202x, dividends are declared $0.60 per stock and payable on December 24.
Dr Retained earnings (25,500 x $0.60) 15,300
Cr Dividends payable 15,300
December 24, 202x, dividends are distributed based on the December 7 record.
Dr Dividends payable 15,300
Cr Cash 15,300
A resident of California sells Nevada real estate in an installment sale. In the current year he receives a return of principal of $10,000, taxable gain of $2,000 and interest of $1,000. What is his California taxable income
Answer:
The taxable income is $13000
Explanation:
The sell by California resident = $10000
The taxable gains = $2000
Given interest rate = $1000
Since during the year total amount received is the return of principal, gains, and interest rate. Therefore total amount = 10000 + 2000 + 1000 = $13000
Thus, the total amount received during the years is California taxable income.
Online Store is considering a project with an initial cost of $500,000. The project will not produce any cash flows for the first two years. Starting in Year 3, the project will produce cash inflows of $95,000, Year 4 of 150,000, Year 5 of 150,000, Year 6 of $200,000, Year 7 of $225,000 and year 8 of $175,000. This project is risky, so the firm has assigned it a discount rate of 12.5 percent. What is the project's net present value
Answer:
$9,118.48
Explanation:
The calculation of the project's net present value is shown below:-
Year Cash flows Discount rate 12.5% PV of cash inflows
(in $) (in $)
0 -500,000 1 -500,000 (A)
1 0 0.8888888889 0.00
2 0 0.7901234568 0.00
3 95,000 0.7023319616 66,721.54
4 150,000 0.624295077 93,644.26
5 150,000 0.5549289573 83,239.34
6 200,000 0.4932701843 98,654.04
7 225,000 0.438462386 98,654.04
8 175,000 0.3897443431 68,205.26
Present value 509,118.48 (B)
Net present value 9,118.48 (B - A)
Therefore to reach the net present value we simply deduct the present value from the initial cost.
Englewood Company has an opportunity to produce and sell a revolutionary new smoke detector for homes. To determine whether this would be a profitable venture, the company has gathered the following data on probable costs and market potential:
New equipment would have to be acquired to produce the smoke detector. The equipment would cost $100,000 and be useable for 12 years. After 12 years, it would have a salvage value equal to 10% of the original cost.
Production and sales of the smoke detector would require a working capital investment of $40,000 to finance accounts receivable, inventories, and day-to-day cash needs. This working capital would be released for use elsewhere after 12 years.
An extensive marketing study projects sales in units over the next 12 years as follows:
Year Sales in Units
1……………. 4,000
2……………. 7,000
3……………. 10,000
4-12………… 12,000
The smoke detectors would sell for $45 each; variable costs for production, administration, and sales would be $25 per unit.
To gain entry into the market, the company would have to advertise heavily in the early years of sales. The advertising program follows:
Amount of Yearly
Year Advertising
1-2…………. $70,000
3…………… $50,000
4-12……….. $40,000
Other fixed costs for salaries, insurance, maintenance, and straight-line depreciation on equipment would total $127,500 per year. (Depreciation is based on cost less salvage value.)
The company’s required rate of return is 20%
Required:
Compute the net cash inflow (cash receipts less yearly cash operating expenses) anticipated from the sale of the smoke detectors for each year over the next 12 years.
Using the data computed in (1) above and other data provided in the problem, determine the net present value of the proposed investment. Would you recommend that Englewood Company accept the smoke detector as a new product?
Answer:
1) Compute the net cash inflow (cash receipts less yearly cash operating expenses) anticipated from the sale of the smoke detectors for each year over the next 12 years.
year net cash flow
0 -$140,000
1 ($20 x 4,000) - $70,000 - $127,500 + $7,500 = -$110,000
2 ($20 x 7,000) - $70,000 - $127,500 + $7,500 = -$50,000
3 ($20 x 10,000) - $50,000 - $127,500 + $7,500 = $30,000
4 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000
5 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000
6 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000
7 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000
8 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000
9 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000
10 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000
11 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000
12 ($20 x 12,000) - $40,000 - $127,500 + $7,500 + $40,000 +
$10,000 = $130,000
2) Using the data computed in (1) above and other data provided in the problem, determine the net present value of the proposed investment.
using a financial calculator, the NPV = -$56,801.13
3) Would you recommend that Englewood Company accept the smoke detector as a new product?
Since the NPV is negative, the project should be rejected.
Mason Company's schedule of cost of goods manufactured is as follows:
Costs incurred:
Direct labor cost $70,000
Purchases of raw materials $118,000
Manufacturing overhead $80,000
Advertising expense $90,000
Sales salaries $50,000
Depreciation, office equipment $3,000
Beginning of year End of the year
Inventories:
Raw materials $7,000 $15,000
Work in process $10,000 $5,000
Finished goods $20,000 $35,000
Required:
a. Prepare a schedule of cost of goods manufactured.
b. Prepare the cost of goods sold section of Mason Company's income statement for the year.
Answer:
Mason Company
a. A schedule of cost of goods manufactured:
Beginning inventory of raw materials $7,000
Purchases of raw materials $118,000
Less ending inventory of raw materials $15,000
Cost of raw materials used in production $110,00
Beginning Work in process $10,000
Cost of raw materials used $110,000
Direct labor costs $70,000
Manufacturing overhead $80,000
Total production cost $270,000
Ending work in process $5,000
Cost of goods manufactured $265,000
b. Cost of goods sold section of Mason Company's income statement for the year:
Beginning Finished goods inventory $20,000
Cost of goods produced $265,000
less ending finished goods inventory $35,000
Cost of goods sold $250,000
Explanation:
a) The cost of goods manufactured includes the beginning inventory of raw materials and Work in process, the purchase of raw materials during the period, direct labor costs and manufacturing overhead. Then the costs of ending inventory of raw materials and work in process are subtracted to get the cost of goods manufactured.
b) The cost of goods sold includes the cost of beginning inventory of finished goods and the cost of goods manufactured with the subtraction of the ending inventory of finished goods.
Cepeda Corporation has the following cost records for June 2017.
Indirect factory labor $5,230
Factory utilities $470
Direct materials used $21,540
Depreciation, factory equipment$1,760
Work in process, 6/1/17 $3,820
Direct labor $41,680
Work in process, 6/30/17 $3,930
Maintenance, factory equipment $1,860
Finished goods, 6/1/17 $5,210
Indirect materials $2,870
Finished goods, 6/30/17 $8,510
Factory manager's salary $3,550
Prepare a Cost of Goods manufactured schedule for June 2017.
Answer:
Cepeda Corporation
Cost of Goods manufactured schedule for June 2017
Work in process, 6/1/17 $3,820
Direct materials used $21,540
Direct labor $41,680
Work in process, 6/30/17 ($3,930 ) $63,110
Factor Overheads:
Factory utilities $470
Depreciation, factory equipment $1,760
Maintenance, factory equipment $1,860
Indirect materials $2,870
Indirect factory labor $5,230
Factory manager's salary $3,550 $15,740
Total cost of manufactured goods $78,850
Explanation:
The cost of goods manufactured is made up of the beginning work in process, direct materials cost, direct labor costs, and factory overheads minus the ending work in process. It is this figure that decides the product cost per unit, which will be a consideration in deciding the selling price in some market situations.
Data from the financial statements of Dils Brothers Co. and J. Cox, Inc. are presented below (in millions): Dils Brothers Co. J. Cox, Inc. Total liabilities, 2016 $70,914 $47,422 Total liabilities, 2015 72,208 60,092 Total assets, 2016 100,372 73,744 Total assets, 2015 94,114 70,416 Revenue, 2016 306,932 163,040 Net income, 2016 280 1,572 To the nearest hundredth, what is the 2016 debt-to-total-assets ratio for J. Cox, Inc.
Answer:
0.64
Explanation:
Debts to total asset ratio = Total liabilities / total assets
For J.Cox Inc 2016; Debts to total asset ratio = $47,422 / 73,744
Debts to total asset ratio = 0.64306
Debts to total asset ratio = 0.64
2016 debt-to-total-assets ratio for J. Cox, Inc. is 0.64
Quan operates an illegal game room in Houston. He files a tax return claiming deductions as follows: Rent $10,000, Supplies $5,000, Fines paid to the city $12,000, Bribes paid to police officers $8,000. The IRS should allow Quan to deductA. $0B. $10,000C. $15,000D. $33,000E. $35,000
Answer: $15,000
Explanation:
From the question, we are told that Quan operates an illegal game room in Houston and that he files a tax return claiming deductions as follows: Rent $10,000, Supplies $5,000, Fines paid to the city $12,000, Bribes paid to police officers $8,000.
From the above analysis, it should be noted that the brine paid to the police and fines that was paid to the city will not be part of the deduction.
Therefore, the IRS should allow Quan to deduct :
Rent = $10,000,
Supplies = $5,000
Total = $15,000
\The southeast division of a distribution company is planning on purchasing a new delivery truck for $18,500. The current truck has a book value of $5,000 and will be sold immediately. The new truck is expected to increase operating income by $6,000. Additional information is as follows: Current operating assets $800,000 Current operating income $82,500 Minimum rate of return 10% Profit margin 15% Based on the expected change in the return on investment metric, should the truck be purchased? Group of answer choices
Answer:
the company should purchase the new delivery truck
Explanation:
current rate of return without the purchase of the new truck = $82,500 / $800,000 = 10.31% ≥ required rate of return (10%)
operating income increases by $6,000
assets increase by $18,500 - $5,000 = $13,500
rate of return after purchase = $88,500 / $813,500 = 10.88% which is higher than previous rate of return and higher than the required rate of return
since the rate of return will increase if the new truck is purchased, then it should be considered a good investment.
As a Cost and Management Consultant in the banking industry in Ghana, one of your highly esteemed clients, a top tier banking institution in Ghana has required of you to advise them as to whether target costing can be applied to the banking industry in Ghana. They further require you to advise them on what products or services can target costing be applied
Answer with its Explanation:
The target costing is a costing technique that helps to reduce the cost of the company operations by setting cost targets for the operations. The first step under target costing is to set a selling price for the product and the second step is to set the target profit margin. Now at this position we are able to derive the target cost by taking the difference of profit margin and the selling price of the product. At this stage the actions and reforms required to achieve this target cost are determined and implemented in the current operating activities. The best part of the target costing is that it says that the pricing though matters but the main aspect of a product success is its cost controls. If the company is able to control the cost of the product then it can control the movement of prices in the market. So target costing specially focuses and stresses upon cost control procedures.
As Target costing is all about cost controlling and can be applied to any sector. In Ghana, target costing will help to control the cost of the services that the banking sector renders to its customers. This reduction in services cost can be achieved by automation, installation of new softwares, Investing in automated teller machines, etc. By gaining efficiencies, the banking sector will substantially reduce its cost thus achieving its target cost.
By achieving the target cost the bank will have to sell at the same rate as the bank had invested its time and money in efficiency gaining activities. There are a lot of activities and products that can be automated and that can help to achieve the target cost. For example, promoting internet banking will reduce the cost of ATM management, paper cost, management time, additional branch opening or extension of building, etc. We can see how easily internet banking will assist the banking sector to achieve its target costs.
Tesla, a vehicle manufacturer, incurs the following costs.
a. Classify each cost as either a product or a period cost. If a product cost, identify it as direct materials, direct labor, or factory overhead, and then as a prime and/or conversion cost.
b. Classify each product cost as either a direct cost or an indirect cost using the product as the cost object.
1. Factory utilities
2. Advertising
3. Amortization of patents on factory machine
4. State and federal income taxes
5. Office supplies used
6. Insurance on factory building
7. Wages to assembly workers
Answer:
a. Classify each cost as either a product or a period cost. If a product cost, identify it as direct materials, direct labor, or factory overhead, and then as a prime and/or conversion cost.
1. Factory utilities - Product cost
Factory utilities are direct materials used in the production process, therefore, they are a product cost.
2. Advertising - Period cost
Advertising is a period cost they are not directly related with the production process, but mostly with the passing of time.
3. Amortization of patents on factory machine - Period cost
Amortization is also a period cost. Amortization is the loss of value of an intangible asset over a period of time.
4. State and federal income taxes - Period cost
Taxes are not directly related to production, they are periodical payments to the state.
5. Office supplies used - Period cost
Office supplies are a general administrative expense, and general administrative expenses are considered period costs.
6. Insurance on factory building - Period cost
General administrative expenses like insurance are considered period costs.
7. Wages to assembly workers - Product cost
Wages are direct labor costs, and as a result, they are product costs.
b. Classify each product cost as either a direct cost or an indirect cost using the product as the cost object.
1. Factory utilities - direct cost
Factory utilities are directly used in the production process, it is a direct cost.
2. Advertising - indirect cost
Advertising expenses are not directly related to the production of a good, therefore, they are an indirect cost.
3. Amortization of patents on factory machine - indirect cost
Amortization on a patent is an indirect cost, because while the patent determines some characteristics of the product, it is not directly part of the production process.
4. State and federal income taxes - indirect cost
Taxes are not directly related to the production of the good, therefore, they are an indirect cost.
5. Office supplies used - indirect cost
Office supplies are administrative overhead: they are necessary, but not directly related to the production process.
6. Insurance on factory building - indirect cost
Insurance is also administrative overhead. They are an indirect cost.
7. Wages to assembly workers - direct cost
Wages to assembly workers are the cost of direct labor, as a result, they are a direct cost.
Based on its 1Q 2014 press release, what is the maximum $ amount the Coca-Cola Company expects to spend in repurchasing its shares during the current fiscal year. Please provide your answer in billions, with 1 decimal place (Ex: 6.2)
Answer: $3.0 billion.
Explanation:
According to the Press Statement released by Coca-Cola on April 15, 2014 as found on the SEC website, the company plans to spend between $2.5 billion and $3.0 billion on share repurchases by the end of the 2014 fiscal year.
As at the end of the first quarter of 2014, the Company had already spent $713 million in share repurchases and so were optimistic about their repurchases plan.
Telegraphic Solution's completed worksheet at November 30, 2018 is as follows:
Revenues:
Service Revenue $9,600
Expenses:
Salaries Expense $2,750
Rent Expense 700
Depreciation Expense-Equipment $350
Supplies Expense 550
Utilities Expense $700
Total Expenses $5,050
Net Income $4,550
Required:
a. Complete the income statement for the month ended November 30, 2018.
b. Complete the statement of owner's equity for the month ended November 30, 2018. Assume there were no contributions made by the owner during the month.
c. Complete the classified balance sheet as of November 30, 2018
Answer:
a. Complete the income statement for the month ended November 30, 2018.
Telegraphic Solution's
Income Statement
For the month ended November 30, 2018
Service Revenue $9,600
Expenses:
Salaries Expense $2,750 Rent Expense 700 Depreciation Expense-Equipment $350 Supplies Expense 550 Utilities Expense $700 ($5,050)Net Income $4,550
b. Complete the statement of owner's equity for the month ended November 30, 2018. Assume there were no contributions made by the owner during the month.
Telegraphic Solution's
Statement of Owner's Equity
For the month ended November 30, 2018
Pryor, capital, November 1, 2018 $32,900
Investments during the month $0
Net income $4,550
Subtotal $37,450
Withdrawals during the month ($2,900)
Pryor, capital, November 30, 2018 $34,550
c. Complete the classified balance sheet as of November 30, 2018
Assets:
Current assets
Cash $4,400
Accounts receivable $3,900
Prepaid rent $1,100
Office supplies $2,550
Total current assets $11,950
Non-current assets
Equipment net $28,350
Total non-current assets $28,350
Total assets: $40,300
Liabilities and equity:
Liabilities:
Current liabilities
Accounts payable $5,100
Salaries payable $650
Total current liabilities $5,750
Equity:
Pryor, capital $34,550
Total liabilities and equity: $40,300
If a borrower receives a loan with a variable interest rate, then the interest rate on the loan Multiple Choice always goes up. is subject to the price of the home. always goes down. is fixed. may go up or down.
Answer: may go up or down.
Explanation:
From the question, we are told that a borrower receives a loan with a variable interest rate, It should be noted that a variable interest rate loan is a form of loan whereby the interest rate that is charged on outstanding balance is not fixed but varies when there are changes in the market interest rates.
Based on this explanation, the payments the borrower will make will vary as they can either go up or down.
A borrower receives a loan with a variable interest rate, then the interest rate on the loan may go up or down.
A variable interest rate is an interest rate that is anchored on a benchmark interest rate or index. The variable interest rate changes with changes that occurs in the benchmark interest rate. A variable interest rate is also known as a floating interest rate.
If the underlying interest rate increases, the variable interest rate would increase. If the underlying interest rate decreases, the variable interest rate would decrease.
To learn more, please check: https://brainly.com/question/2496648