Answer:
Units Unit cost Total
July 1 2700 47 126900
July 13 6700 51 341700
July 25 8700 57 495900
Total 18100 964,500
Weighted Average Cost = $964,500/18,100 = $53.28
Ending Inventory units = 18100-1,350-3,700-5,700 = 7350
a. FIFO
Cost of Goods Available for Sale = $964,500
Ending Inventory = 7,350*$52 = $382,200
Cost of Goods Sold = $964,500 - $382,200 = $582,300
b. LIFO
Cost of Goods Available for Sale = $964,500
Ending Inventory = (2,700*$47)+(4,650*$51) = $364,050
Cost of Goods Sold = $964,500 - $364,050 = $600,450
c. Weighted average cost
Cost of Goods Available for Sale = $964,500
Ending Inventory = 7350*$53.28 = $391,608
Cost of Goods Sold = $964,500 - $391,608 = $572,892
Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries. Total spending for the federal government of Lilliput for the last fiscal year was $24.19 billion. The country collected $22.9 billion in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Lilliput's budget balance?
Answer: Lilliput is a country that has closed borders and does not import or export any goods or services
Explanation:
At the beginning of April, Owl Corporation has a balance of $12,500 in the Retained Earnings account. During the month of April, Owl had the following external transactions.
1. Issue common stock for cash, $12,000.
2. Provide services to customers on account, $8,000.
3. Provide services to customers in exchange for cash, $2,700.
4. Purchase equipment and pay cash, $7,100.
5. Pay rent for April, $1,300.
6. Pay employee salaries for April, $3,000.
7. Pay dividends to stockholders, $1,750.
Required:
Using the external transactions above, compute the balance of Retained Earnings at April 30. (Decreases should be entered as a negative.)
Answer:
$17,150
Explanation:
Computation for the balance of Retained Earnings at April 30.
Retained earnings beginning balance $12,500
Add Provide services to customers on account, $8,000
Add Provide services to customers in exchange for cash $2,700
Less Pay rent for April ($1,300 )
Less Pay employee salaries for April, ($3,000)
Less Pay dividends to stockholders, ($1,750)
Balance of Retained Earnings at April 30 $17,150
Therefore the balance of Retained Earnings at April 30 will be $17,150
A building with an appraisal value of $136,787 is made available at an offer price of $157,859. The purchaser acquires the property for $34,148 in cash, a 90-day note payable for $27,610, and a mortgage amounting to $58,126. The cost basis recorded in the buyer's accounting records to recognize this purchase is
Answer:
the cost basis recorded to recognize this purchase is $119,884
Explanation:
The computation of the cost basis recorded to recognize this purchase is shown below:
= Acquired property in cash + note payable + mortgage
= $34,148 + $27,610 + $58,126
= $119,884
Hence, the cost basis recorded to recognize this purchase is $119,884
Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Beginning Inventory Ending Inventory Finished goods (units) 30,000 80,000 Raw material (grams) 60,000 50,000 Each unit of finished goods requires 3 grams of raw material. The company plans to sell 770,000 units during the year. How much of the raw material should the company purchase during the year
Answer:
See below
Explanation:
Raw materials purchased is computed as;
Raw material purchase = Ending inventory + required for production - beginning inventory
= 50,000 + ((80,000 + 770,000 - 30,000) × 3) - 60,000
= 50,000 + 2,460,000 - 60,000
= 2,450,000 grams
Charlotte's Crochet Shoppe has 11,300 shares of common stock outstanding at a price per share of $65 and a rate of return of 11.21 percent. The company also has 340 bonds outstanding, with a par value of $1,000 per bond. The pretax cost of debt is 5.93 percent and the bonds sell for 94.2 percent of par. What is the firm's WACC if the tax rate is 39 percent
Answer:
Please see below
Explanation:
Given that;
Common stock outstanding = 11,300
Price per share = $65
Number of bonds outstanding = 340
Bonds sell for $94.2 percent of par
Par value per bond = $1,000
Market value of common stock = Common stock outstanding × Price per share
= 11,300 × $65
= $734,500
Market value of debt:
Number of bonds outstanding × [Percent of par × Par value]
= 340 × [0.942 × $1,000]
= 340 × $942
= $320,280
Total market value:
= Market value of common stock + Market value of debt
= $734,500 + $320,280
= $1,054,780
WACC:
= [(Market value of debt ÷ Total market value) × Pretax cost of debt × (1 - Tax rate)] + [(Market value of common stock ÷ Total market value) × Rate of return]
= [($320,280 ÷ $1,054,780) × 0.00593 × (1 - 0.39)] + [($734,500 ÷ $1,054,780) × 0.1121]
= [(0.303646258) × 0.0036173 + [0.00780612545]
= 0.0010983796 + 0.00780612545
= 0.008904505
= 0.89%
4. What would be the best pricing strategy for a deli opening in a competitive business
district where the lunchtime rush is the bulk of the business? Explain your answer
Answer:
During the times of opening, the business can offer lucrative and attractive discounts and deals such as buy one get one free deals or opening offers or different deals and discounts to gain competitive business advantage.
Explanation:
You invest $1,000 in a risky asset with an expected rate of return of 0.17 and a standard deviation of 0.40 and a T-bill with a rate of return of 0.04. What percentages of your money must be invested in the risk-free asset and the risky asset, respectively, to form a portfolio with a standard deviation of 0.20
Answer:
50%, 50%
Explanation:
% of money invested in risky asset = Portfolio standard deviation/Standard deviation of risky asset
% of money invested in risky asset = 0.20/0.40
% of money invested in risky asset = 50.00%
% of money invested in risk free asset = 1 - 50.00%
% of money invested in risk free asset = 50.00%
The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation:
Cash and cash equivalents $5,800
Accounts receivable (net) 28,000
Inventory 68,000
Property, plant, and equipment (net) 160,000
Accounts payable 47,000
Salaries payable 19,000
Paid-in capital 140,000
The only asset not listed is short-term investments. The only liabilities not listed are $38,000 notes payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.6:1.
Required:
Determine the following at December 31, 2021:
1. Total current assets.
2. Short-term investments.
3. Retained earnings.
Answer and Explanation:
The calculations are given below:
1. Total current assets
we know that
Current ratio = Current assets ÷ current liabilities
where,
Current liabilities is
= Accounts payable + Accrued interest + Salaries payable
= $47,000 + $1,000 + $19,000
= $67,000
And,
Current ratio = 1.6:1
So,
Total current assets is
= 1.6 × $67,000
= $107,200
b. Short term investment is
Short term investment = Total current assets - Cash and cash equivalents - Accounts receivables - Inventories
= $107,200 - ($5,800 + $28,000 + $68,000)
= $5,400
c. Now retained earning is
Total assets
= Total current assets + Property, plant and equipment
= $107,200 + $160,000
= $267,200
Total liabilities is
= Current liabilities + Notes payable
= $67,000 + $38,000
= $105,000
Now Retained earnings is
= Total assets - Total liabilities - Paid in capital
= $267,200 - $105,000 - $140,000
= $22,200
A(n) _____ is a situation in which moral implications shape an individual’s decisions.
ethical issue
revelatory issue
moral dilemma
situational imperative
What does a sticky CTA do?
Answer:
It encourages users to revisit your website.
Barnes Company uses a job order cost system. The following data summarize the operations related ...
Barnes Company uses a job order cost system. The following data summarize the operations related to production for October:
October 1 Materials purchased on account, $315,500.
2 Materials requisitioned, $290,100, of which $8,150 was for general factory use.
31 Factory labor used, $489,500, of which $34,200 was indirect.
31 Other costs incurred on account for factory overhead, $600,000; selling expenses, $150,000; and administrative expenses, $100,000.
31 Prepaid expenses expired for factory overhead were $18,000; for selling expenses, $6,000; and for administrative expenses, $5,000.
31 Depreciation of office building was $30,000; of office equipment, $7,500; and of factory equipment, $60,000.
31 Factory overhead costs applied to jobs, $711,600.
31 Jobs completed, $1,425,000.
31 Cost of goods sold, $1,380,000.
Required:
Journalize the entries to record the summarized operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. ONLY 26 LINES CAN BE USED
Answer:
Journal Entries
October 1
Materials Dr $315,500
Accounts payable Cr $315,500
October 2
Work in process Dr $281,950
Factory overhead Dr $8,150
Materials Cr $290,100
October 31
Work in process Dr $455,300
Factory overhead Dr $34,200
Wages payable Cr $489,500
October 31
Factory overhead Dr $600,000
Selling expense Dr $150,000
Administrative expense Dr $100,000
Accounts payable Cr $850,000
October 31
Factory overhead Dr $18,000
Selling expense Dr $6,000
Administrative expense Dr $5,000
Prepaid expense Cr $29,000
October 31
Depreciation expense - Office Building Dr $30,000
Depreciation expense - Office Equipment Dr $7,500
Factory overhead Dr $60,000
Accumulated depreciation- Buildings and equipment Cr $97,500
October 31
Work in process Dr $711,600
Factory overhead Cr $711,600
October 31
Finished goods $1,425,000
Work in process Cr $1,425,000
October 31
Cost of goods Dr $1,380,000
Finished goods Cr $1,380,000
On May 7, Bergan Company purchased on account 10,000 units of raw materials at $8 per unit. During May, raw materials were requisitioned for production as follows: 7,500 units for Job 200 at $8 per unit and 1,480 units for Job 305 at $5 per unit.
Required:
Journalize the entry on May 7 to record the purchase
Answer:
The entry on May 7 to record the purchase
Debit : Raw Materials $80,000
Credit : Accounts Payable $80,000
Explanation:
The entry on May 7 to record the purchase is prepared above.
"Betty has been working for Bright Fires for about five years. She compares herself to different managers, such as Meg, who works for the competitor in a similar work position. Betty feels disheartened when she finds out that she is significantly underrewarded at Bright Fires. From Betty's view in this situation, Meg is a(n)"
Answer:
External comparison
(occupational equity)
Explanation:
Motivation is commonly defined as a set of distinct energetic forces that occurs as a result of both within and outside an employee; start with work-related effort; and set its direction, intensity, and constancy.
Equity theory is simply a theory of motivation. It shows that motivation is based on an individual's views of his/her life and what happens in lives of other people.
comparison others
Based on the theory of equity, this is the act of viewing or examination our own efforts and results and them comparing them to the efforts and results of others people. Therefore we use the other individuals as a comparison other.
External comparison
Is simply defined as the act by which an individual or employee of a company is compared of himself or herself to an employee from another company . That is When an employee from another company is known as the "comparison other," .
Answer:
External competitor
Explanation:
External competitiveness can be described as a pay relationship that exists between two competitors. It is what an organization pays in comparison to what other organizations who are their competitors pay.
Meg is an external competitor because she works in a similar position as Betty in a different organization. So betty is comparing her pay in bright fires in relation to meg's pay in her organization
Flood damage in the Brush Creek area averages $7,000 annually. Civil engineers with floodplain expertise have designed a series of small dams to restrain the flow. They will cost $25,000 and will involve annual maintenance charges of $500. What is the anticipated benefit/cost ratio if the interest rate is 6 %, the service life is 10 years, and the salvage value is $5,000
Answer:
1.89
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 benefitsCash flow each year from year 1 to 9 = $7,000
Cash flow in year 10 = $7000 + 5000 = $12,000
I = 6%
PV = $54,312.58
Present value of costsCash flow in year 0 = $25,000
Cash flow each year from year 1 to 10 = $500
I = 6%
PV = $28,680.04
Benefit cost ratio = $54,312.58 / $28,680.04 = 1.89
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
Which is the most important factor on which motor carriers compete?
Answer:
The correct response is "railroad". A further explanation is given below.
Explanation:
The other passenger transport market is railways, is because rail services are easier and have already been commonly used instead of motor carriers as well as providers.Railways don't always occupy all geographic locations of the nation, but in certain areas of the country, they were a theme or a trend.Bluestone Company had three intangible assets at the end of the current year:
a. A patent purchased this year from Miller Co. on January 1 for a cash cost of $3,200. When purchased, the patent had an estimated life of 16 years.
b. A trademark was registered with the federal government for $7,500. Management estimated that the trademark could be worth as much as $190,000 because it has an indefinite life.
c. Computer licensing rights were purchased this year on January 1 for $70,000. The rights are expected to have a five-year useful life to the company.
Required:
1. Compute the acquisition cost of each intangible asset.
Acquisition Cost
Patent
Trademark
0
2. Compute the amortization of each intangible for the current year ended December 31. (Do not round intermediate calculations.)
Amortization Expenses
Patent
Trademark
0
3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year.
BLUESTONE COMPANY
Income Statement (partial)
For the year ending December 31
BLUESTONE COMPANY
Balance sheet (partial)
At December 31
Intangibles:
Answer:
Bluestone Company
1. Acquisition cost of each intangible asset:
Patent $3,200
Trademark = $0
Licensing Rights = $70,000
2. Amortization for the current year ended December 31:
Amortization Expenses:
Patent = $200 ($3,200/16)
Trademark = $7,500 (expensed in full)
Licensing Rights = $14,000 ($70,000/5)
3. BLUESTONE COMPANY
Income Statement (partial)
For the year ending December 31
Amortization Expenses:
Patent $200
Licensing Rights $14,000
Trademark expense $7,500
BLUESTONE COMPANY
Balance sheet (partial)
At December 31
Intangibles:
Patent $3,200
Acc. Amortization 200 $3,000
Licensing Rights $70,000
Acc. Amortization 14,000 $56,000
Explanation:
a) Data and Calculations:
a. Purchased patent on January 1 for $3,200 Estimated life 16 years
b. Internally developed trademark is expensed: $7,500
c. Purchasing Licensing Rights on January 1 for $70,000 for 5 years
The risk-free rate of return is 8%, the expected rate of return on the market portfolio is 15%, and the stock of Xyrong Corporation has a beta coefficient of 1.2. Xyrong pays out 40% of its earnings in dividends, and the latest earnings announced were $10 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 20% per year on all reinvested earnings forever. (LO 13-2) a. What is the intrinsic value of a share of Xyrong stock
Answer:
$101.82
Explanation:
the intrinsic value of the stock can be determined by determining the value of the stock using the constant growth dividend model
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = required return
g = growth rate
growth rate = retention rate x ROE
Retention rate = 1 - payout ratio = 1 - 0.4 = 0.6
0.6 x 20% = 12%
dividend = 0.4 x $10 = $4
the required return can be determined using the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
0.08 + 1.2(0.15 - 0.08) = 0.164 = 16.4%
Intrinsic value = 4 ( 1.12) / (0.164 - 0.12) = 4.48/0.044 = $101.82
Stewart Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plant-wide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. From the following information, using a single plant-wide rate, determine the overhead rate per unit for Product A:
Overhead Direct Labor Product
Hours (dlh) A B
Painting Dept. $248,000 10,000 dlh 16 dlh 4 dlh
Finishing Dept. 72,000 10,000 4 16
Totals $320,000 20,000 dlh 20 dlh 20 dlh
======== ========== ====== ======
a. $496.00 per unit
b. $320.00 per unit
c. $144.00 per unit
d. $640.00 per unit
Answer:
Allocated MOH= $320
Explanation:
Giving the following information:
Overhead Direct Labor Product
Hours (dlh) A B
Painting Dept. $248,000 10,000 dlh 16 dlh 4 dlh
Finishing Dept. 72,000 10,000 4 16
Totals $320,000 20,000 dlh 20 dlh 20 dlh
First, we need to calculate the plantwide overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 320,000 / 20,000
Predetermined manufacturing overhead rate= $16 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 16*20
Allocated MOH= $320
Indigo Company sold 10,000 Super-Spreaders on during 2017, at a total price of $885,200, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $350,500. The assurance warranties extend for a 3-year period and are estimated to cost $65,100. During 2017, warranty related costs amounted to $15,600. Indigo also sold extended warranties (service-type warranties) related to 3,000 spreaders for 2 years beyond the 2-year period for $25,200. Given this information, determine the amounts to report for the following at December 31, 2017: sales revenue, cost of goods sold, warranty expense, unearned warranty revenue, warranty liability, and cash.
Answer:
Indigo Company
Sales Revenue = $885,200
Cost of goods sold = $350,500
Warranty Expense = $65,100
Unearned warranty revenue = $25,200
Warranty liability = $49,500 ($65,100 - $15,600)
Cash = $544,300 ($885,200 + $25,200 - $350,500 - $15,600)
Explanation:
a) Data and Calculations:
Income Statement for the year ended December 31, 2017 (Partial)
Sales Revenue $885,200
Cost of goods sold 350,500
Gross profit $534,700
Warranty Expense 65,100
Net income $469,600
Balance Sheet as of December 31, 2017 (Partial)
Assets:
Cash $544,300
Liabilities:
Retained earnings $469,600
Unearned warranty revenue 25,200
Warranty liability 49,500
Total liabilities $544,300
When the government imposes an excise tax in a market with a downward-sloping demand curve and an upward-sloping supply curve: _________.
a. consumer surplus falls, producer surplus falls, and a deadweight loss occurs.
b. consumer surplus falls.
c. producer surplus falls.
d. a deadweight loss occurs.
Answer:
A
Explanation:
Tax is a compulsory sum levied on the price of goods and services. It increases the price of goods and services
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
If tax increases the price of the good, consumer surplus would reduce
For example, willingness to pay is $20, price before tax is $5 and price after tax is $10. consumer surplus becomes $10 when it was $15 initially
Tax reduces the amount that would be received by the seller. This reduces consumer surplus.
Deadweight loss is the decrease in quantity demanded as a result of tax. Because tax increases price, the quantity demanded would reduce
ims Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 5,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 68,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 33,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month
Answer:
60,300
Explanation:
Calculation to determine the equivalent units for conversion costs in the Assembly Department for the month
Conversion
Units transferred to the next department 40,500
(5,000 + 68,500 - 33,000 )
Add Ending work in process 19,800
Conversion: (33,000 units × 60%)
Equivalent units of production 60,300
(40,500+19,800)
Therefore the equivalent units for conversion costs in the Assembly Department for the month is 60,300
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity:
Sales (350,000 units) $4,375,000
Cost of goods sold 2,600,000
Gross profit 1,775,000
Operating expenses 840,000
Net income $ 935,000
Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam receives a special order for 15,000 toasters at $7.60 each from Luna Company. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs.
Instructions
a. Prepare an incremental analysis for the special order.
b. Should Moonbeam accept the special order?
Answer:
Moonbeam Company
a) Incremental Analysis for the Special Order:
Sales (15,000) at $7.60 $114,000
Variable cost of sales 5.20 78,000
Variable overhead 1.92 28,800
Total variable costs ($106,800)
Contribution $7,200
b) Moonbeam should accept the special order. It makes a contribution of $7,200 to the defraying of the fixed costs.
Explanation:
a) Data and Calculations:
operating results while operating at 75% of plant capacity:
Total Unit
Sales (350,000 units) $4,375,000 $12.50
Cost of goods sold 2,600,000
Variable (70%) $1,820,000 5.20
Fixed (30%) 780,000
Gross profit 1,775,000
Operating expenses 840,000
Variable (80%) $672,000 1.92
Fixed (20%) 168,000
Net income $ 935,000
Incremental Analysis for the Special Order:
Sales (15,000) at $7.60 $114,000
Variable cost of sales 5.20 78,000
Variable overhead 1.92 28,800
Total variable costs ($106,800)
Contribution $7,200
b) Incremental analysis concentrates on the variable elements of costs. The method disregards all fixed costs as they are regarded as sunk or past costs, and therefore, irrelevant to the decision at hand.
Ana and Shen need to decide which one of them will need to take time off work to complete the rather urgent task of shearing their llamas. Ana is pretty good with a pair of shears; she can shear the llamas in one hour. Shen is somewhat slow; it takes him six hours to shear the llamas. Ana earns $120 per hour as a business consultant, while Shen earns $15 per hour as a lifeguard.
Keeping in mind that either Ana or Shen must take time off work to shear the llamas, who has the lowest opportunity cost of completing the task?
A. Ana
B. Shen
C. Ana and Shen face identical opportunity costs
Answer:
B
Explanation:
We have to consider the opportunity cost of both parties
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
If Ana chooses to shear, she would be forgoing an income $120
If Shen chooses to shear for 6 hours, she would be forgoing an income ($15 x 6) = 90
Shen has a lower opportunity cost and should shear
Market Inc. has two divisions, Talbot and Heather. Following is the income statement for the past month: Talbot Heather Total Sales$280,000 $168,000 $448,000 Variable Costs 168,000 67,000 235,000 Contribution Margin 112,000 101,000 213,000 Fixed Costs (allocated) 112,500 67,500 180,000 Profit Margin$(500) $33,500 $33,000 What would Market's profit margin be if the Talbot division was dropped and all fixed costs are unavoidable
Answer:
$(79,000)
Explanation:
Calculation to determine What would Market's profit margin be if the Talbot division was dropped and all fixed costs are unavoidable
Using this formula
Market's profit margin =Contribution margin - Fixed costs
Let plug in the formula
Market's profit margin=$101,000-$180,000
Market's profit margin=$(79,000)
Therefore What would Market's profit margin be if the Talbot division was dropped and all fixed costs are unavoidable is $(79,000)
The dictator of Turan has recently begun to arbitrarily seize farms belonging to his political opponents, and he has given the farms to his friends. His friends don't know much about farming. The courts in Turan have ruled that the seizures are illegal, but the dictator has ignored the rulings. Other things equal, we would expect that the growth rate in Turan will:_______.
a. fall and remain lower for a long time.
b. increase because the total amount of human capital in the country will increase as the new owners learn how to farm.
c. fall temporarily, but will return to where it was when the new owners learn how to farm.
d. not be affected unless widespread civil disorder or civil war results.
Answer:
A
Explanation:
Lopez Corporation incurred the following costs while manufacturing its product.
Materials used in product $122,200 Advertising expense $49,900
Depreciation on plant 69,200 Property taxes on plant 17,600
Property taxes on store 8,590 Delivery expense 28,300
Labor costs of assembly-line workers 113,100 Sales commissions 44,400
Factory supplies used 34,000 Salaries paid to sales clerks 51,300
Work in process inventory was $13,300 at January 1 and $17,200 at December 31. Finished goods inventory was $68,800 at January 1 and $47,900 at December 31.
Required:
a. Compute cost of goods manufactured.
b. Compute cost of goods sold.
Answer:
a. $352,200
b. $372,100
Explanation:
The cost of goods manufactured
Consider only the manufacturing costs
Cost of goods manufactured = $122,200 + $69,200 + $17,600 + $113,100 + $34,000 + $13,300 - $17,200
=$352,200
Cost of goods sold
Add Cost of goods manufactured to the net of Finished inventory balance
Cost of goods sold = $47,900 $68,800 + $352,200 - $47,900
= $372,100
Energy Manufacturing Inc. provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry $320,000 16,000 hours Account billing $200,000 4,000,000 lines Account verification accounts $173,250 70,000 accounts Correspondence letters $24,000 4,000 letters Total costs $717,250 The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 4,200 hours 2,700 hours Account billing lines 900,000 lines 750,000 lines Account verification accounts 8,000 accounts 6,000 accounts Correspondence letters 1,400 letters 1,800 letters How much of the account inquiry cost will be assigned to Department A
Answer: $84,000
Explanation:
Cost per hour for Account inquiry = Account inquiry cost / Activity cost - drivers
= 320,000 / 16,000 hours
= $20 per hour
Department A has 4,200 hours of account inquiry. Cost will be:
= 4,200 * 20
= $84,000
Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $54,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 10 percent of your annual salary in an account that will earn 9.4 percent per year. Your salary will increase at 4 percent per year throughout your career. How much money will you have on the date of your retirement 45 years from today
Answer:
I will have $5,319,216.16 on the date of retiremnet.
Explanation:
First, we need to calculate the amount of deposit
Amount of annual deposit = Annual salary x Deposit rate
Amount of annual deposit = $54,000 x 10%
Amount of annual deposit = $5,400
Now use the following formula to calculate the balance in the account after 45 years from today
Future value of annuity = [ Periodic Annuity payment x ( 1 + growth rate ) / ( Interst rate - growth rate ) ] x [ ( 1 + interest rate )^numbers ofyears - ( 1 + growth rate )^numbers of years ]
Where
Periodic Annuity payment = Amount of annual deposit = $5,400
Periodic interest rate = 9.4%
Periodic growth rate = 4%
Numbers of years = 45 years
Future value of annuity = Balance after 45 years = ?
Placing values in the formula
Balance after 45 years = [ $5,400 x ( 1 + 4% ) / ( 9.4% - 4% ) ] x [ ( 1 + 9.4% )^45 - ( 1 + 4% )^45 ]
Balance after 45 years = [ $5,616 / 5.4% ] x [ ( 1.094^45 ) - ( 1.04^45) ]
Balance after 45 years = $104,000 x [ 56.987484867 - 5.841175681 ]
Balance after 45 years = $104,000 x 51.146309186
Balance after 45 years = $5,319,216.155344
Balance after 45 years = $5,319,216.16
A sales manager, Dev, is facing an ethical situation wherein his bicycle company that specializes in mountain bikes sold a bicycle with a defective component. If he informs the customer and issues a recall, it would cost him a substantial amount of money. If the bike malfunctions, there is a very small chance that it could cause serious injury to a cyclist who might use it on rough terrain. He decides to use the egoism approach to decision making and remain silent about the defect, because he:________.
A) is motivated by self-interest.
B) is looking to accomplish the greatest good for the greatest number of people.
C) wants to first consult with his insurer.
D) is motivated to protect the interests of his employees.
E) wants to first consult with others whom he respects.
Answer:
A) is motivated by self-interest.
Explanation:
He decides to use the egoism approach to decision making and remain silent about the defect, because he is motivated by self-interest.
Self-interest refers to some actions that elicit personal benefit.
The egoist approach to ethics is based on the principles of self-interest, individual good, and satisfaction.
Therefore the correct answer is that sales manager, Dev is motivated by self-interest.
There are 20 AAA batteries in a box and 7 are defective. Two batteries are selected without replacement. What is the probability of selecting a defective battery followed by another defective battery?
Answer: 0.11
Explanation:
There are 20 AAA batteries in a box and 7 are defective. If two batteries are selected without replacement, the probability of selecting a defective battery will be 7/20.
The probability of selecting another defective battery will be 6/19 as there will be 19 batteries left and 6 defective.
Then, the probability of selecting a defective battery followed by another defective battery will be:
= 7/20 × 6/19
= 42/380
= 0.11