Answer:
Beta of new stock = 6.03333333335 rounded off to 6.03
Explanation:
We first need to calculate the required rate of return of the current portfolio of $20 million. We can calculate the required rate of return using the CAPM.
r = rRF + Beta * rpM
Where,
rRF is the risk free raterpM is the market risk premiumr of existing portfolio = 7% + 1.2 * 6%
r of existing portfolio = 14.2%
Using the CAPM, we need to determine the overall Beta of a portfolio whose required rate of return should be 20%. Plugging in the value for required rate of return, risk free rate and market risk premium in the CAPM equation, we calculate the overall beta to be,
20% = 7% + Beta * 6%
20% - 7% = Beta * 6%
13% / 6% = Beta
Beta = 2.16666666667 rounded off to 2.17
So the new portfolio should have a beta of 2.16666666667 n order to earn a required return of 20%.
Using the formula for portfolio beta, we can calculate the beta of the new stocks to be,
Portfolio Beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
Where,
w represents the weight of each stock in the portfolio as a proportion of the overall portfolio investmentTotal investment in new portfolio = 20 + 5 = $25 million
2.16666666667 = 20/25 * 1.2 + 5/25 * Beta of new stocks
2.16666666667 = 0.96 + 0.2 * Beta of new stocks
2.16666666667 - 0.96 = 0.2 * Beta of new stocks
1.20666666667 / 0.2 = Beta of new stocks
Beta of new stock = 6.03333333335 rounded off to 6.03
Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given below. The MARR is 18% per year. At the end of the useful life, the investment will be sold. A decision-maker can select one of these alternatives or decide to select none of them. Make a recommendation using the PW method.
A B C
Investment cost $27,000 $56,000 $42,500
Annual expenses $15,000 $13,000 $23,000
Annual revenues $23,000 $30,000 $32,000
Market value $6,500 $7,500 $9,000
Useful life 10 years 10 years 10 years
IRR 27,6% 28,1% 17,8%
Answer:
Project B has the highest PW, therefore,, it should be selected.
Explanation:
A B C
Investment cost -$27,000 -$56,000 -$42,500
Annual expenses $15,000 $13,000 $23,000
Annual revenues $23,000 $30,000 $32,000
Market value $6,500 $7,500 $9,000
NCFs (1-9) $8,000 $17,000 $9,000
NCF 10 $14,500 $24,500 $18,000
PW or NPV $10,195 $21,832 -$334
Alison has bought a new machine for her company that will speed up production. This machine cost a lot of money. Alison has decided to break this cost down to smaller
parts, which she will include in the fixed costs over a number of years so that it doesn't affect her break-even analysis. Which concept best describes Alison's method of
breaking up fixed cost?
A
disengagement
В.
disinvestment
C. depreciation
D disenfranchisement
Answer:
c; depreciation
Explanation:
it was marked as correct on Edmentum
Answer:
c) depreciation
Explanation:
Green Corporation reported pretax book income of $1,018,000. During the current year, the net reserve for warranties increased by $50,900. In addition, tax depreciation exceeded book depreciation by $104,500. Finally, Green subtracted a dividends received deduction of $25,450 in computing its current year taxable income. Green's cash tax rate is:
Answer:
19.37%
Explanation:
Calculation to determine what Green's cash tax rate is
First step is to calculate Green's taxable income
Green's taxable income = ($1,018,000 + $50,900- $104,500 - $25,450)*21%
Green's taxable income=$938,950*21%
Green's taxable income=$197,180
Now let Green's cash tax rate
Cash tax rate ={$197,180/$1,018,000}.
Cash tax rate =0.1937*100
Cash tax rate =19.37%
Therefore Green's cash tax rate is 19.37%
A state department of health is considering a public awareness campaign to encourage vaccination. It determines that the cost of this campaign would be $760,000 per year for the next 6 years. It estimates that the campaign would reduce rates of illness and communicable disease. At the end of the first year of the campaign, the resulting savings would be $1,000,000; the savings would decrease by $80,000 each of the following 5 years. Assuming a discounting factor of 5%, compute the benefit cost ratio.
Answer:
1.068
Explanation:
The benefit cost ratio is used to determine the profitability of an investor. It is determined by dividing the present value of benefit by the present value of cost
Benefit cost ratio (BC) = present value of benefits / present value of costs
if BC is greater than 1, the project is profitable
If BC is less than 1, the project is not profitable
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Present value of the costs
Cash flow each year from year 1 to 6 = $760,000
I = 5
PV = 3,857,525.97
Present value of benefits
Cash flow in year 1 = $1,000,000
Cash flow in year 2 = $1,000,000 - $80,000 = $920,000
Cash flow in year 3 = $920,000 - $80,000 = 840,000
Cash flow in year 4 = 840,000 - $80,000 = 760,000
Cash flow in year 5 = 760,000 - $80,000 = $680,000
Cash flow in year 6 = $680,000 - $80,000 = $600,000
I = 5%
PV BENEFIT = 4,118,252.57
BC ratio = 4,118,252.57 / 3,857,525.97 = 1.068
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Other financial data for the year ended December 31, 2019: Included in accounts receivable is $1,200,000 due from a customer and payable in quarterly installments of $150,000. The last payment is due December 29, 2021. The balance in the Deferred Income Tax Liability account pertains to a temporary difference that arose in a prior year, of which $20,000 is classified as a current liability. During the year, estimated tax payments of $525,000 were charged to income tax expense. The current and future tax rate on all types of income is 30%. In Lamberts December 31, 2019 balance sheet, the current assets total is
Answer:
$5,055,000
Explanation:
Note: The full question is attached below
Particulars Amount
Cash $875,000
Accounts receivable $2,695,000
Less: Installments not due in 2021 ($600,000) $2,095,000
[$1,200,000 - ($150,000 * 4)]
Inventory $2,085,000
Total of current assets $5,055,000
Personalities fit into at least one of (blank)
different categories.
A.ten
B.seven
C.three
D.five
Use the cost information below for Ruiz Inc. to determine the total manufacturing costs incurred during the year: Work in Process, January 1 $ 50,000 Work in Process, December 31 37,000 Direct materials used $ 12,500 Total factory overhead 5,500 Direct labor used 26,500 Multiple Choice $13,000. $44,500. $57,500. $94,500. $89,000.
Answer:
b. $44,500
Explanation:
Particulars Amount
Direct material used $12,500
Direct labor used $26,500
Total factory overhead $5,500
Total Manufacturing Cost $44,500
Assume that JQH’s returns are normally distributed. The expected return for JQH is 10% and standard deviation is 5%. What is the probability of JQH stock providing a return within the range 15% to 20%?Assume that JQH’s returns are normally distributed. The expected return for JQH is 10% and standard deviation is 5%. What is the probability of JQH stock providing a return within the range 15% to 20%?2.5%16%68%13.5%none
Answer:
13.5%
Explanation:
From this question we have the following information
We have mean return = 10
Standard deviation = 5
We use this formula
Z = x - mean/standard deviation
X is between 15 and 20
15< X< 20
= 15-10/5 < Z < 20-10/5
= 1 < z < 2
Using the Statistical table,
P(z < 2) = 0.9772
P(z< 1) = 0.8413
0.9772 - 0.8413 = 0.1359 x 100
= 13.5%
The probability of JQH stock providing a return within the range 15% to 20% = 13.5%
Thank you
Kohl Co. provides warranties for many of its products. The January 1, 2016 balance of Estimated Warranty Liability account was $35200. Based on an analysis of warranty claims during the past several years, this year's warranty provision was established at 0.4% of sales. During 2016 the actual cost of servicing products was under warranty was $15600 and sales were $3,600,000.
a) What amount of Warranty Expense will appear on Kohl Co's income statement for the year end December 31, 2016?
b) What amount will be reported in the Estimated Warranty Liability account on the December 31, 2016, balance sheet?
Answer:
a. $14,400, b. $34,000
Explanation:
a. Sales = $3,600,000
Warranty Provision = 0.4%
Warranty Expense = Sales * Warranty Provision
Warranty Expense = $3,600,000 * 0.4%
Warranty Expense = $14,400
b. Balance as of January 31, 2016 = $35,200
Warranty Expense = $14,400
Actual Cost of Servicing Products = $15,600
Estimated Warranty Liability = Balance as of January 31, 2016 + Warranty Expense - Actual Cost of Servicing Products
Estimated Warranty Liability = $35,200 + $14,400 - $15,600
Estimated Warranty Liability = $34,000
Suppose Aladdin has utility function:
U(W) = 8√W Ɐ W >= 0
= -W^2 Ɐ W < 0
Aladdin has just found the genie's lamp and has wished for a bag of gold since he has nothing at the moment but the clothes on his back. He knows the genie may try to trick him so he has assigned a 25% subjective probability the genie will nd a way to take away his clothes which would cost 4 gold to replace. In addition, he has assigned a 50% subjective probability to getting a medium bag of 16 gold, and a 25% probability of getting a large bag of 100 gold.
Required:
a. What is the expected value of Aladdin's gamble?
b. What is the expected utility of Aladdin's gamble?
Sage Hill Inc. wishes to lease machinery to Thiensville Company. Thiensville wants the machinery for 4 years, although it has a useful life of 10 years. The machinery has a fair value at the commencement of the lease of $47,000, and Sage Hill expects the machinery to have a residual value at the end of the lease term of $27,000. However, Thiensville does not guarantee any part of the residual value. Thiensville does expect that the residual value will be $45,000 instead of $27,000.
Required:
What would be the amount of the annual rental payments Sage Hill demands of Thiensville, assuming each payment will be made at the end of each year and Sage Hill wishes to earn a rate of return on the lease of 6%?
Answer:
bud im sorry but cay you simplify this sentance
Explanation:
$29198 / [ 1 - ( 1 + 0.06 )-4 / 0.06 ]
= $29198 / 3.46510561283
= $8426 [ Rounded off to zero decimal places ]
bud i tried but i think its wrong im only in 6th
Flint Inc. issued $3,790,000 of 10%, 10-year convertible bonds on June 1, 2020, at 99 plus accrued interest. The bonds were dated April 1, 2020, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021, $1,421,250 of these bonds were converted into 34,000 shares of $18 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) Prepare the entry to record the interest expense at October 1, 2020. Assume that accrued interest payable was credited when the bonds were issued. (b) Prepare the entry to record the conversion on April 1, 2021. (Book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made.
Answer:
A. Dr Interest Payable $63,167
Dr Interest expense $127,617
Cr Discount on Bonds payable $1,284
Cr Cash $189,500
B. Dr Bonds payable $1,421,250
Cr Discount on Bonds payable $13,008
Cr Common Stock $612,000
Cr Paid-in capital in excess of par- Common Stock $796,242
Explanation:
(a) Preparation of the entry to record the interest expense at October 1, 2020. Assume that accrued interest payable was credited when the bonds were issued.
Dr Interest Payable $63,167
[($3,790,000*.10)/2*(2/6)]
Dr Interest expense $127,617
[($3,790,000*.10)/2*(4/6) + $1,284]
Cr Discount on Bonds payable $1,284
($321*4)
Cr Cash $189,500
[ ( $3,790,000*.10)/2]
(To record interest expense at October 1, 2020.)
Calculation for the discount per month
First step is to calculate the remaining months
Months remaining= (10 years *12-2)
Months remaining=118 months
Second step is to calculate the Total discount
Total Discount= $3,790,000-($3,790,000*.99)
Total discount=$3,790,000-$3,752,100
Total discount=$37,900
Now let calculate the discount per month
Discount per month=($37,900/118)
Discount per month=$321
(b) Preparation of the entry to record the conversion on April 1, 2021
Dr Bonds payable $1,421,250
Cr Discount on Bonds payable $13,008
Cr Common Stock $612,000
(34,000*$18)
Cr Paid-in capital in excess of par- Common Stock $796,242
[$1,421,250-($13,008+$612,000)]
(To record conversion of bond into 34,000 shares.)
Calculation for Unamortized bond discount
Discount of the bonds $14,213
($37,900*(3/8))
Less Discount amortized ($1,205)
[($37,900/118)*10 years*(3/8)]
Unamortized bond discount $13,008
($14,213-$1,205)
On April 1, 2020, Republic Company sold equipment to its wholly owned subsidiary, Barre Corporation, for $40,000. At the time of the transfer, the asset had an original cost (to Republic) of $60,000 and accumulated depreciation of $25,000. The equipment has a five year estimated remaining life. Barre reported net income of $250,000, $270,000 and $310,000 in 2020, 2021, and 2022, respectively. Republic received dividends from Barre of $90,000, $105,000 and $120,000 for 2020, 2021, and 2022, respectively. What was the amount of the credit to depreciation expense on the 2020 consolidation worksheet
Answer:
$750
Explanation:
Calculation for What was the amount of the credit to depreciation expense on the 2020 consolidation worksheet
2020 Credit to depreciation expense=[($60,000/5 years )-($60,000-$25,000/5 years)]/5 years*9/12
2020 Credit to depreciation expense=[($60,000/5 years )-($35,000/5 years)]/5 years*9/12
2020 Credit to depreciation expense=[($12,000-$7,000)/5 years*9/12]
2020 Credit to depreciation expense=$5,000/5 years*9/12
2020 Credit to depreciation expense=$750
Therefore the amount of the credit to depreciation expense on the 2020 consolidation worksheet is $750
urphy Inc., which produces a single product, has provided the following data for its most recent month of operation:Number of units produced 14,600Variable costs per unit:Direct materials $ 137Direct labor $ 75Variable manufacturing overhead $ 4Variable selling and administrative expenses $ 11Fixed costs:Fixed manufacturing overhead $ 846,800Fixed selling and administrative expenses $ 233,600The company had no beginning or ending inventories.Required:a. Compute the unit product cost under absorption costing.b. Compute the unit product cost under variable costing.
Answer:
Results are below.
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Unit cost under absorption costing:
Unitary product cost= 137 + 75 + 4 + (846,800/14,600)
Unitary product cost= $274
Unit cost under variable costing:
Unitary variable product cost= 137 + 75 + 4
Unitary variable product cost= $216
After navigating the Mint application through the link provided on McGraw-Hill Connect (you will need to create a free account), identify which of the following tools is NOT provided through the use of this application.
A. Account Monitoring
B. Ways to Save
C. All of the above tools are provided through this application
D. Investment Goals
E. Spending Habits
Answer:
C. All of the above tools are provided through this application.
Schickel Inc. regularly uses material B39U and currently has in stock 456 liters of the material for which it paid $2618 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $5.20 per liter. New stocks of the material can be purchased on the open market for $5.80 per liter, but it must be purchased in lots of 1000 liters. You have been asked to determine the relevant cost of 750 liters of the material to be used in a job for a customer. The relevant cost of the 750 liters of material B39U is:
Answer:
the relevant cost of the 750 liters of material B39U is $4,350
Explanation:
The computation of the relevant cost of the 750 liters of material B39U is shown below:
Relevant cost = Purchase price per liter × Liters needed for the job
= $5.80 per liter × 750 liters
= $4,350 .
Hence, the relevant cost of the 750 liters of material B39U is $4,350
The income statement for the month of June, 2018 of Sarasota Enterprises contains the following information:
Revenues $6740
Expenses:
Salaries and Wages Expense $2900
Rent Expense 1530
Advertising Expense 740
Supplies Expense 270
Insurance Expense 110
Total expenses 5550
Net income $1190
The entry to close the expense accounts includes a:_______
a) debit to Salaries and Wages Expense for $2900.
b) credit to Rent Expense for $1530
c) debit to Income Summary for $1190.
d) credit to Income Summary for $5550.
Answer:
b) credit to Rent Expense for $1530
Explanation:
Date Accounts and Explanation Debit Credit
Income Summary $5,550
Salaries & Wages Expense $2,900
Rent Expense $1,530
Advertising Expense $740
Supplies Expense $270
Insurance Expense $110
(To Close the expense accounts)
Wilton sells softball equipment. On November 14, they shipped $3500 worth of softball uniforms to Paola Middle School, terms 1/10, n/30. On November 21, they received an order from Douglas High School for $2000 worth of custom printed bats to be produced in December. On November 30, Paola Middle School returned $400 of defective merchandise. Wilton has received no payments from either school as of month end. What amount will be recognized as net accounts receivable on the balance sheet as of November 30?
Wilton sells softball equipment. On November 14, t
A. $3500
B. $5900
C. $3100
D. $5500
Answer:
$3,100
Explanation:
Net Accounts Receivable = Received order from Douglas high school - Return from Paola middle school
Net Accounts Receivable = $3,500 - $400
Net Accounts Receivable = $3,100
So, the amount that will be recognized as net accounts receivable on the balance sheet as of November 30 is $3,100
You would like to estimate the weighted average cost of capital for a new airline business. Based on its industry asset beta, you have already estimated an unlevered cost of capital for the firm of 10%. However, the new business will be 22% debt financed, and you anticipate its debt cost of capital will be 6%. If its marginal corporate tax rate is 31% and effective tax rate is 20%.
Required:
What is your estimate of its WACC?
Answer: 9.32%
Explanation:
The cost of levered capital is needed to calculate WACC.
Cost of levered capital = Cost of unlevered capital + (Cost of unlevered capital - cost of debt)(1 - tax) * Debt to equity ratio
Debt-equity ratio
= 22% / (100% - 22%)
= 28.205%
Cost of levered capital = 10% + (10% - 6%) * (1 - 31%) * 28.205%
= 10.78%
WACC = (Weight of debt * after tax cost of debt) + (Weight of capital * cost of capital)
= (22% * 6% *(1 - 31%)) + (78% * 10.78%)
= 9.32%
Assume that you manage a risky portfolio with an expected rate of return of 16% and a standard deviation of 32%. The T-bill rate is 6%. Your risky portfolio includes the following investments in the given proportions: Stock A 28 % Stock B 34 Stock C 38 Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio will have an expected rate of return of 15%. a. What is the proportion y
Answer: 0.90 or 90%
Explanation:
The risky portfolio gives a return of 16% and the T-bill gives a 6% return.
Assume that proportion y is going into the risky portfolio and x is going into the T-bill.
The expected return for the overall portfolio = 15%
Use simultaneous equation:
x + y = 1
0.16y + 0.06x = 0.15
y = 1 - x
0.16 (1 - x) + 0.06x = 0.15
0.16 - 0.16x + 0.06x = 0.15
-0.1x = 0.15 - 0.16
x = -0.01/0.1
x = 10%
y = 1 - x
= 1 - 10%
= 90%
= 0.90
The creation of a single market through regional economic integration offers significant opportunities because markets that were formerly protected from foreign competition are increasingly open.
a. True
b. False
Answer:
true
Explanation:
A large school district notices that about 15% of its students drop out of school. A company suggests the district try its new technology software designed to improve student motivation in the high school curriculum and, thus, lower the dropout rate. The new technology software is quite expensive, so the company offers a free, one-year trial period to determine whether the dropout rate decreases. If it works, the school district will pay for continued use of the software. What would happen if the school district makes a Type II error
Answer:
C. Claim the new technology software does not decrease the number of students who drop out, when it does decrease the number.
Explanation:
Here are the options to this question :
A. Claim the new technology software decreases the number of students who drop out, when it does decrease the number of dropouts.
B. Claim the new technology software decreases the number of students who drop out, when it does not decrease the number.
C. Claim the new technology software does not decrease the number of students who drop out, when it does decrease the number.
D. Claim the new technology software does not decrease the number of students who drop out, when it does not decrease the number.
E. Claim the new technology software increases the number of students who drop out, when it decreases the number.
Type 2 error is when a false null hypothesis is not rejected. It is also known as a false negative
A null hypothesis is an hypothesis used that suggests that there is no difference between features of a population
Answer:
C. Claim the new technology software does not decrease the number of students who drop out, when it does decrease the number.
Explanation:
Got it right on the test.
so how do you make customers come and buy ur charm bracelets how do u advertise it.
Answer:
You could make advertisements and post them around your town. Ask your friends to spread the word in your school. Make a website. Read on how to start a small buisness.
Explanation: GOOD LUCK
MyPillow uses television advertising and wanted to see whether the TV ads reached more viewers during the daytime spots or the prime-time spots. MyPillow wanted to adjust its TV spots to reach the greatest number of viewers. To get real-time reactions, MyPillow decided to conduct mobile market research because _______. a. most people do not multitask using smartphones b. using a mobile app is difficult and confusing c. most people do not use their desktop computers while watching TV d. fewer respondents are reached than in conducting telephone research
Answer:
c
Explanation:
If MyPillow wants to get real time update, it means it wants to get update as people are watching tv. In order to reach its audience, it would be right to reach them on the medium they use while watching tv. If most people do not use their desktop computers while watching TV , it would not be appropriate to use desktop computers.
But if people watch tv and use their phone, the appropriate means of carrying this research is through mobile.
Managers have to consider several contingencies when deciding on the best arrangements for their organizations. One such contingency is the organization's environment, and managers must determine whether a mechanistic or an organic structure will work better under their particular circumstances. This activity is important because the type of organizational structure chosen can be critical to an organization's success. The goal of this exercise is to test your knowledge of the characteristics of these two different organizational structures. Select the most appropriate category (mechanistic or organic structure) for each step of the characteristics of organizations.
1. Few rules and procedures (Click to select)
2. Narrow span of control (Click to select)
3. Specialized tasks (Click to select)
4. Many teams or task forces (Click to select)
5. Many rules and procedures (Click to select)
6. Decentralized hierarchy of authority (Click to select)
7. Flatter structure (Click to select)
8. Informal communication (Click to select)
9. Taller structure (Click to select)
10. Centralized hierarchy of authority (Click to select)
11. Wider span of control (Click to select)
12. Shared tasks (Click to select)
13. Formalized communication (Click to select)
14. Few teams or task forces (Click to select)
15. Best for companies operating in stable environments. (Click to select)
16. Best for companies that need to respond to rapidly changing consumer tastes. (Click to select)
Answer:
Mechanistic structures are more centralized in nature. This makes them rigid as decisions come from the top but because there is little micro-management, the company will rely on clear rules for employees to get things done. Communication is vertical.
Organic structures on the other hand, are more decentralized. Communication is horizontal but goes vertical as well and rules are more flexible.
Mechanistic Structure:
Narrow span of control Specialized tasksMany teams or task forcesMany rules and proceduresTaller structureCentralized hierarchy of authorityFormalized communication Best for companies operating in stable environments.Organic Structures
Few rules and proceduresDecentralized hierarchy of authority.Flatter structure.Informal communication Wider span of controlShared tasks Few teams or task forces Best for companies that need to respond to rapidly changing consumer tastes.Beech Company produced and sold 105,000 units of its product in May. For the level of production achieved in May, the budgeted amounts were: sales, $1,300,000; variable costs, $835,000; and fixed costs, $390,000. The following actual financial results are available for May. Actual Sales (105,000 units) $ 1,273,000 Variable costs 805,500 Fixed costs 390,000 Prepare a flexible budget performance report for May. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)
Answer:
Sales$27,000 U
Variable costs $29,500 F
Contribution margin $2,500 F
Fixed costs $0
Income from operations $2,500 F
Explanation:
Preparation of a flexible budget performance report for May.
Flexible Actual Variances
Sales: $1,300,000- $ 1,273,000=$27,000 U
Less Variable costs:
$835,000-805,500=$29,500F
=Contribution margin: $465,000-$467,500=$2,500 F
Less Fixed costs: $390,000-$390,000=$0
=Income from operations: $75,000-$77,500=$2,500 F
Therefore The flexible budget performance report for May VARIANCES will be :
Sales$27,000 U
Variable costs $29,500 F
Contribution margin $2,500 F
Fixed costs $0
Income from operations $2,500 F
The sticker price for a new car takes into account the compensation made to the salesperson who managed the sale. This compensation is an example of what type of cost?
A): dealer cost
B): shipping cost
C): manufacturing cost
D): sales commission
Answer:
D
Explanation:
cuz its D
This compensation is an example of sales commission cost. Thus, option D is correct.
What is manufacturing cost?The expenses incurred during the creation of a product are known as manufacturing costs. Direct material, direct labor, and manufacturing overhead costs are included in these expenses. Normally, the costs are shown as separate line items in the revenue statement. These expenses are incurred by an entity during the production process.
The materials employed in a product's construction are referred to as direct materials. The amount of the production process's labor costs that is specifically attributed to a unit of production is known as direct labor. The application of manufacturing overhead costs to units of production depends on many alternative allocation schemes, such as the number of direct labor hours or machine hours used.
Learn more about manufacturing cost here:
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Thomlin Company forecasts that total overhead for the current year will be $11,898,000 with 156,000 total machine hours. Year to date, the actual overhead is $7,955,000 and the actual machine hours are 85,000 hours. The predetermined overhead rate based on machine hours is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a.$140 per machine hour b.$51 per machine hour c.$76 per machine hour d.$94 per machine hour
Answer:
Predetermined manufacturing overhead rate= $76.27 per machine hour
Explanation:
Giving the following information:
Thomlin Company forecasts that total overhead for the current year will be $11,898,000 with 156,000 total machine hours.
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 11,898,000 / 156,000
Predetermined manufacturing overhead rate= $76.27 per machine hour
Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange, she received stock in Plum with a fair market value of $667,500 plus $667,500 in cash. Simone's tax basis in the Purple stock was $263,000. What amount of gain does Simone recognize in the exchange and what is her basis in the Plum stock she receives
Answer: $667,500 gain recognized and a basis in Plum stock of $263000
Explanation:
The amount of gain that Simone recognize in the exchange and her basis in the Plum stock she receives will be:
Gain realized = $667500 + $667500 - $263000 = $1598000
Cash Received = $667500
The Gain recognized will be the lesser amount between the gain realized and cash received which will be $667500.
Therefore, the answer is $667,500 gain recognized and a basis in Plum stock of $263000
The following selected transactions were completed by Capers Company during October of the current year: Oct. 1. Purchased merchandise from UK Imports Co., $14,448, terms FOB destination, n/30. 3. Purchased merchandise from Hoagie Co., $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice. 4. Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30. 6. Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4. 13. Paid Hoagie Co. for invoice of October 3, less discount. 14. Paid Taco Co. for invoice of October 4, less debit memo of October 6 and discount. 19. Purchased merchandise from Veggie Co., $27,300, terms FOB shipping point, n/eom. 19. Paid freight of $400 on October 19 purchase from Veggie Co. 20. Purchased merchandise from Caesar Salad Co., $22,000, terms FOB destination, 1/10, n/30. 30. Paid Caesar Salad Co. for invoice of October 20, less discount. 31. Paid UK Imports Co. for invoice of October 1. 31. Paid Veggie Co. for invoice of October 19. Instructions Journalize the entries to record the transactions of Capers Company for October.
Answer:
Capers Company
Journal Entries:
Oct. 1: Debit Inventory $14,448
Credit Accounts Payable (UK Imports Co.) $14,448
To record the purchase of merchandise, terms FOB destination, n/30.
Oct. 3: Debit Inventory $9,950
Credit Accounts Payable (Hoagie Co.) $9,950
To record the purchase of merchandise, terms FOB shipping point, 2/10, n/eom.
Oct. 4: Debit Inventory $13,650
Credit Accounts Payable (Taco Co.) $13,650
To record the purchase of merchandise, terms FOB destination, 2/10, n/30.
Oct. 6: Debit Accounts Payable (Taco Co.) $4,550
Credit Inventory $4,550
To record the return of goods on account.
Oct. 13: Debit Accounts Payable (Hoagie Co.) $9,950
Credit Cash $9,751
Credit Cash Discounts $199
To record the payment on account.
Oct. 14: Debit Accounts Payable (Taco Co.) $9,100
Credit Cash $8,918
Credit Cash Discounts $182
To record the payment on account.
Oct. 19: Debit Inventory $27,300
Credit Accounts Payable (Veggie Co.) $27,300
To record the purchase of merchandise, terms FOB shipping point, n/eom.
Oct. 19: Debit Freight-in $400
Credit Cash $400
To record the payment of freight-in.
Oct. 20: Debit Inventory $22,000
Credit Accounts Payable (Caesar Salad Co.) $22,000
To record the purchase of merchandise, terms 1/10, n/30.
Oct. 30: Debit Accounts Payable (Caesar Salad Co.) $22,000
Credit Cash $21,780
Credit Cash Discounts $220
To record the payment on account.
Oct. 31: Debit Accounts Payable (UK Imports Co.) $14,448
Credit Cash $14,448
To record the payment on account.
Oct. 31: Debit Accounts Payable (Veggie Co.) $27,300
Credit Cash $27,300
To record the payment on account.
Explanation:
a) Data and Analysis:
Oct. 1: Inventory $14,448 Accounts Payable (UK Imports Co.) $14,448; terms FOB destination, n/30.
Oct. 3: Inventory $9,950 Accounts Payable (Hoagie Co.) $9,950; terms FOB shipping point, 2/10, n/eom.
Oct. 4: Inventory $13,650 Accounts Payable (Taco Co.) $13,650; terms FOB destination, 2/10, n/30.
Oct. 6: Accounts Payable (Taco Co.) $4,550 Inventory $4,550
Oct. 13: Accounts Payable (Hoagie Co.) $9,950 Cash $9,751 Cash Discounts $199
Oct. 14: Accounts Payable (Taco Co.) $9,100 Cash $8,918 Cash Discounts $182
Oct. 19: Inventory $27,300 Accounts Payable (Veggie Co.) $27,300; terms FOB shipping point, n/eom.
Oct. 19: Freight-in $400 Cash $400
Oct. 20: Inventory $22,000 Accounts Payable (Caesar Salad Co.) $22,000; terms 1/10, n/30.
Oct. 30: Accounts Payable (Caesar Salad Co.) $22,000 Cash $21,780 Cash Discounts $220
Oct. 31: Accounts Payable (UK Imports Co.) $14,448 Cash $14,448
Oct. 31: Accounts Payable (Veggie Co.) $27,300 Cash $27,300