Solution :
Correcting the errors by reversing the incorrect entry and then preparing the correct entry :
Sl. No. Description Debit Credit
1. Cash $600
Equipment $600
Salary and wages $600
Cash $600
2. Service revenue $450
Cash $450
Cash $4500
Account receivable $4500
3. Accounts payable $250
Equipment $250
Equipment $520
Accounts payable $520
Choco Chocolata is a cookie company in Juarez, Mexico that produces and sells American-style chocolate chip cookies with extremely high quality and service. The owner would like to identify the various costs incurred during each year in order to plan and control the costs in the business. Chocolata's costs are the following (in thousands of pesos): Utilities for the bakery $ 2,100 Paper used in packaging product 180 Salaries and wages in the bakery 23,500 Cookie ingredients 43,500 Bakery labor fringe benefits 1,300 Administrative costs 2,300 Bakery equipment maintenance 800 Depreciation of bakery plant and equipment 2,200 Uniforms for bakers 750 Insurance for the bakery 900 Rent for administration offices 18,500 Advertising 3,500 Boxes, bags, and cups used in the bakery 1,100 Office Manager's salary 13,000 Overtime premiums 2,600 Idle Time 500 Required (you may scan/email your supporting documentation for your answers but put final answers in box below): (1) What is the total amount of product costs
Answer:
(1) The total amount of product costs is $79,430.
(2) The total amount of period costs is $37,300.
Explanation:
Note: There are two requirements in this question as follows:
(1) What is the total amount of product costs?
(2) What is the total amount of period costs?
These two are answered as follows:
(1) What is the total amount of product costs?
Product cost can be described as the expenses that are incurred in order to produce a product. These types of expenses are charged to cost of goods sold and include direct materials, direct labor, factory overhead, and consumable production supplies.
Therefore, the total amount of product costs of Choco Chocolata can be calculated as follows:
Choco Chocolata
Computation of Total Product Costs
Details Amount ($)
Utilities for the bakery 2,100
Paper used in packaging product 180
Salaries and wages in the bakery 23,500
Cookie ingredients 43,500
Bakery labor fringe benefits 1,300
Bakery equipment maintenance 800
Depreciation of bakery plant and equipment 2,200
Uniforms for bakers 750
Insurance for the bakery 900
Boxes, bags, and cups used in the bakery 1,100
Overtime premiums 2,600
Idle Time 500
Total 79,430
Therefore, the total amount of product costs is $79,430.
(2) What is the total amount of period costs?
Period costs are costs that are related to passage of time but cannot not be charged to the cost of goods sold.
Therefore, the total amount of period costs of Choco Chocolata can be calculated as follows:
Choco Chocolata
Computation of Total Period Costs
Details Amount ($)
Administrative costs 2,300
Rent for administration offices 18,500
Advertising 3,500
Office Manager's salary 13,000
Total 37,300
Therefore, the total amount of period costs is $37,300.
∑⊂⊃⊃⊆⊇⊄⊅∀⇵←→∨∧∉∈⇔∛ what do this means
[tex]\left[\begin{array}{ccc}1&2&3\\4&5&6\\7&8&9\end{array}\right][/tex]
Answer:
hello
Explanation:
hi
In January, Tongo, Inc., a branding consultant, had the following transactions. Indicate the accounts, amounts, and direction of the effects on the accounting equation under the accrual basis.
a. (Sample) Received $10,600 cash for consulting services rendered in January.
b. Issued common stock to investors for $15,500 cash.
c. Purchased $17,600 of equipment, paying 25 percent in cash and owing the rest on a note due in two years.
d. Received $7,750 cash for consulting services to be performed in February.
e. Bought and received $1,100 of supplies on account.
f. Received utility bill for January for $2,070, due February 15.
g. Consulted for customers in January for fees totaling $16,500, due in February.
h. Received $13,500 cash for consulting services rendered in December.
i. Paid $550 toward supplies purchased in (e).
Answer:
Cash + Supplies = Accounts Payable + common stock - dividends + sales commission - Rent expense.
$10,600 + 1,100 = $13,125 - $15,500 +$7,750 - $2,070 - $550 +13,500 + $16,500
Explanation:
Tongo Inc. has incurred transaction in business for the routine business activities. These transaction have impact on asset, liabilities and equity side of the balance sheet. The effect of each transaction is given through the equation based on accrual concept.
Thomlin Company forecasts that total overhead for the current year will be $15,000,000 with 300,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. If Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is
Answer:
$50,000 overapplied
Explanation:
The computation of the overhead is shown below:
The predetermined overhead rate is
= $15,000,000 ÷ 3,000,0000 machine hours
= $50
Now the applied overhead is
= $50 × 330,000 hours
= $16,500,000
Now the overapplied overhead is
= $16,500,000 - $16,000,000
= $50,000 overapplied
Ethnocentric managers believe that their native country, culture, language, and behavior need to be changed. are equal to all other cultures. make them citizens of the world. are hurtful to others. are superior to all others.
Answer:
are superior to other cultures.
Explanation:
Ethnocentrism is the belief that indigenous culture, customs, and way of life are more important than other cultures. Ethnographers believe that their own culture, country, language and all other characteristics are superior to other cultures.so correct answer are superior to other cultures.name any two money associated instruments??
Answer:
discount window and swaps
PC Company uses the weighted-average method in its process costing system, in which all materials are added at the beginning of the process, and conversion costs are incurred uniformly. The Painting Department started the month with 800 units in a process that was 40% complete, transferred 2,500 units to Finished Goods Inventory, and had 500 units in process at the end of the period, 70% complete. The amount of direct materials cost in beginning inventory was $16,320, and the amount of direct materials cost added this period totaled $121,440.
What is the direct material cost per equivalent unit?
a. $45.92 per equivalent unit
b. $48 per equivalent unit
c. $48.34 per equivalent unit
d. $55.20 per equivalent unit
Answer:
a. $45.92 per equivalent unit
Explanation:
Calculation for direct material cost per equivalent unit
First step is to calculate the Total units
Total units = 2,500 + 500 - 800
Total units = 2,200
Now let calculate direct material cost per equivalent unit
Direct material cost per equivalent unit=($16,320+$121,440)/(2,200+$800)
Direct material cost per equivalent unit=$137,760/3,000
Direct material cost per equivalent unit=$45.92 per equivalent unit
Therefore the Direct material cost per equivalent unit will be $45.92 per equivalent unit
Assume that the price of a pizza at your local pizza parlor is $12. Illustrate what happens to producer surplus if the price falls from $12 to $6. First indicate the producer surplus lost by those sellers that leave the market because of this lower price. Label this A. Then indicate the decrease in producer surplus lost to those sellers that continue to sell pizza at the lower price. Label this B.
Answer:
attached below
Explanation:
Initial price of pizza at local parlor = $12
new price of pizza = $6
a) Product surplus = area above supply curve and below price ( A )
b) Decrease in producer surplus lost to sellers that continue selling pizza at lower price is represented with B
Catherine Jones has determined the following information about her own financial situation. Her checking account is worth $800 and her savings account is worth $1,500. She owns her own home that has a market value of $103,000. She has furniture and appliances worth $10,500 and a home computer and laptop worth $3,100. She has a car worth $14,000. She has recently purchased an annuity worth $5,400 and she has a retirement account worth $44,000. What is the value of her liquid assets
Answer:
$2,300
Explanation:
Calculation for the value of her liquid assets
Using this formula
Value of her liquid assets=Checking account worth+Savings account worth
Let plug in the formula
Value of her liquid assets=$800 + $1,500
Value of her liquid assets=$2,300
Therefore Value of her liquid assets will be $2,300
Consider a labor market in equilibrium. If the demand curve shifts to the right while the supply curve stays constant, then the wage rate in the market will ________. Group of answer choices increase decrease remain unchanged either increase or decrease or remain unchanged
Answer:
prices will increase or remain
When OSHA was enacted in 1970, it was heralded as the most important new source of protection for the U.S. worker in the second half of the twentieth century. From the information in this chapter, what is your opinion about the effectiveness or the ineffectiveness of the act? Should it be expanded, or it should businesses have more freedom to determine safety standards for their workers?
Explanation:
This act OSHA is effective in the establishment of safety and health standards in businesses. Without this act there would be unsafe working conditions for employees in some companies.
The act is ineffective because of the political administration of the day. A new administration may decide to increase the budget, while another may decide to cut it. There is no standard budget for OSHA.
I do not think the act should be expanded. But it does need an amendment which should follow technological advancements.
Although this act has set safety guidelines for companies to follow, so as to make sure that workers are safe where they work, I believe that companies, businesses, should be allowed to some extents to set safety standards for their workers above that of OSHA.
Cohen Company produces and sells socks. Variable cost is $6 per pair, and fixed costs for the year total $75,000. The selling price is $10 per pair. Required: 1. Calculate the breakeven point in units. 2. Calculate the breakeven point in sales dollars. 3. Calculate the units required to make a before-tax profit of $40,000. 4. Calculate the sales dollars required to make a before-tax profit of $35,000. (Do not round intermediate calculations.) 5. Calculate the sales, in units and in dollars, required to make an after-tax profit of $25,000 given a tax rate of 30%.
Answer:
Results are below.
Explanation:
a) To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 75,000 / 4
Break-even point in units= 18,750
b)To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 75,000 / (4/10)
Break-even point (dollars)= $187,500
c) Desired profit= $40,000
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (75,000 + 40,000) / 4
Break-even point in units= 28,750
d) Desired profit= $35,000
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= (75,000 + 35,000) / 0.4
Break-even point (dollars)= $275,000
e) Desired profit (before taxes)= 25,000/0.7= $35,714
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= 110,714/4
Break-even point in units= 27,679
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= 110,714/0.4
Break-even point (dollars)=$276,785
On January 1, 2024, Tyson Manufacturing Company purchased a machine for $41,100,000. Tyson's management expects to use the machine for 28,000 hours over the next six years. The estimated residual value of the machine at the end of the sixth year is $40,000. The machine was used for 4,000 hours in 2024 and 5,500 hours in 2025. What is the depreciation expense for 2024 if the company uses the units−of−production method of depreciation? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
Answer:
Annual depreciation= $5,865,714.29
Explanation:
Giving the following information:
Purchase price= $41,100,000
Salvage value= $40,000
Useful life in hours= 28,000
To calculate the depreciation expense for 2024, we need to use the following formula:
Annual depreciation= [(original cost - salvage value)/useful life of production in hours]*hours operated
Annual depreciation= [(41,100,000 - 40,000) / 28,000]*4,000
Annual depreciation= $5,865,714.29
The correct depreciation expense will be 5865714.28 dollars. This will be achieved only under the units of production depreciation method. In case of any other methods the values obtained will be different.
The units of production method of depreciation is obtained by calculated by dividing the machinery's net cost by its expected lifetime production and expense is calculated using the values obtained from this formula.
The annual depreciation expense will be determined only after calculation of depreciation under the method that follows the units of production method. The values have been given to us in the queries itself.The net cost of machinery is 41,100,000 expected life of machine is 28000 hours and the salvage value is 40000 at the end of 6 years. In this year the machine was used by Tyson Co. for 4000 hours.The values will be obtained by putting values to the formula of Depreciation under units of production method as[tex]Depreciation\ for\ 2024=\frac{Cost\ of\ purchase- salvage\ value}{total\ expected\ life}[/tex]
Putting the values in the formula we get[tex]depreciation\ for\ 2024=\frac{41100000-40000}{28000}[/tex]
[tex]depreciation\ for\ 2024=\frac{41060000}{28000}[/tex]
[tex]depreciation\ for\ 2024= 1466.42[/tex]
The value that has been obtained will now be put up in the formula of depreciation expense.[tex]Depreciation\ expense\ for\ 2024= 1466.42 *4000[/tex]
[tex]Depreciation\ expense\ for\ 2024= 5865714.28[/tex]
So, it is clear that the depreciation expense the firm has made is $5865714.28Hence, the correct choice for depreciation of Tyson Manufacturing company for the year 2024 will be $5865714.28
To know more about depreciation, click on the link below.
https://brainly.com/question/3023490
Convertible bonds are:________.
I. options attached to bonds that give the bondholder the right to purchase stock at a preset price without giving up the bond.
II. bonds in which the issue matures (converts) a little each year.
III. bonds collateralized with certain types of automobiles.
IV. bonds that may be converted to a certain number of shares of stock determined by the conversion ratio.
Answer: bonds that may be converted to a certain number of shares of stock determined by the conversion ratio.
Explanation:
Convertible bonds are simply refered to as the bonds that which despite the fact that they yield interest payments, such bonds can be converted into either equity shares or common stock. This is done based on the bondholder's discretion.
Convertible bonds are bonds that may be converted to a certain number of shares of stock determined by the conversion ratio.
You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $32.50 million in assets with $30.25 million in debt and $2.25 million in equity. LotsofEquity, Inc. finances its $32.50 million in assets with $2.25 million in debt and $30.25 million in equity.
Required:
a. Calculate the debt ratio.
b. Calculate the equity multiplier.
c. Calculate the debt-to-equity.
Answer:
See below
Explanation:
Lots of debt
1a.
Debt equity ratio
Debt ratio = debt 1 / Asset 1
Debt ratio = $30.25 / $32.50
Debt ratio = 93.1$
1b
Equity multiplier = Asset 1 / Equity 1
Equity multiplier = $32.50 / $2.25
Equity multiplier = 14.4 times
1c
Debt to equity ratio = debt 1 / equity 1
Debt to equity ratio = $30.25 / $2.25
Debt to equity ratio = 13.4%
Lots of equity inc.
2a
Debt equity ratio = debt 2 / asset 2
Debt equity ratio = $2.25 / $32.5
Debt to equity ratio = 6.9%
2b
Equity multiplier = Asset 2 / Equity 2
Equity multiplier = $32.5 / $30.25
Equity multiplier = 1.1 times
2c
Debt to equity ratio = Debt 2 / Equity 2
Debt to equity ratio = $2.25 / $30.25
Debt to equity ratio = 0.1 times
Jerome has insignificant influence of Melina Corporation because it owns less than 20% of the voting stock. The cost of the Melina stock is $5,000 and has a fair value of $6,000 on December 31 at the end of the first year it held the securities. Complete the necessary adjusting entry selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.
Answer:
Dec 31
Dr Fair value adjustment - stock $1,000
Cr Unrealized gain - Income $1,000
Explanation:
Preparation of the necessary adjusting entry
Based on the information given if The cost of the Melina stock was the amount of $5,000 in which it has a fair value of the amount of $6,000 on December 31 which means that the necessary adjusting entry will be :
Dec 31
Dr Fair value adjustment - stock $1,000
Cr Unrealized gain - Income $1,000
($6,000 - $5,000)
Rory has been an underwriting assistant at a large insurance company for the past few years. He is an extremely hard worker and goes above and beyond. He puts in long hours to ensure the accounts are current and ready for the underwriters. Noting his efforts, the company offers him a 15% pay raise along with a small bonus. Three months later, Rory submits his resignation letter and soon joins a startup organization as a senior underwriter. Which of the following best explains this situation?
A. Rory felt the pay raise was undeserved.
B. Rory found his work to be repetitive and boring.
C. Rory was motivated by the prospect of extrinsic rewards.
D. Rory was after a position with the competitor all along.
E. Rory, though highly skilled, lacked motivation
Answer:
B. Rory found his work to be repetitive and boring.
Explanation:
In this scenario, Rory is described as an individual who strives to be the best at what he does which is why he works so hard. The pay raise that they offered him at his current job was a good pay raise and it included a small bonus. Therefore, Rory did not care about the money. Instead, he most likely found the work to be repetitive and boring and probably wanted something new and interesting. Joining a startup and working on a new and innovative project where he can add real value to the team is most likely what Rory really wanted.
The following transactions occurred during May, the first month of operations for Hunter Products, Inc: * Issued 54,000 shares of capital stock to the owners of the corporation in exchange for $648,000 cash. * Purchased a piece of land for $440,000, making a $170,000 cash down payment and signing a note payable for the balance. * Made a $64,000 cash payment on the note payable from the purchase of land. * Purchased equipment on credit from BBW, Inc. for $67,000.
What is the balance in the Cash account at the end of May?
Answer:
$414,000
Explanation:
Calculation of balance of cash account:
Issuance of capital stock to the $648,000
owners of the corporation
Cash down payment for purchase ($170,000)
a piece of lane
Cash payment on the note payable ($64,000)
from the purchase of land
Balance in the Cash account $414,000
at the end of May
Melinda is excited about working on her financial plan. She has taken the time to look at all of her current resources, accounts, and investments. She also has identified some short- and long-term financial goals. What should Melinda do NEXT to continue her steps in the financial planning process?
Answer:
Melinda should save and invest for the short term as well as long term goal as she planned.
Explanation:
Financial planning is very important for a stable future in terms of finance and monetary matters. Financial planning may be defined as the process that will reduce the stress about the finances, helps to support the current needs. It also helps to build or save money for a long term goal. Financial planning is very important as it allows one to make the most use of one's assets, and also ensures one to meet their future goals.
In the context, Melinda is making a financial plan. She had looked over all her her current resources and investments and also made some long term and short term goal which will help her better plan for the future.
Once Melinda had identified her goal, she needs to act on it as soon as possible and contribute or save some money according to the plans. She should invest in the plans in order to support her long term goals.
Answer:
its A decide what her biggest financial risks are\
Explanation:
Which of the following takes less time to perform tasks and processes?
A. Intranet
B. Virtual private network (VPN)
C. Enterprise portal
D. Application service provider (ASP)
Answer:
D. Application service provider (ASP)
Explanation:
Cloud computing can be defined as a type of computing that requires shared computing resources such as cloud storage (data storage), servers, computer power, and software over the internet rather than local servers and hard drives.
Generally, cloud computing offers individuals and businesses a fast, effective and efficient way of providing services.
Cloud computing comprises of three (3) service models and these are;
1. Platform as a Service (PaaS).
2. Infrastructure as a Service (IaaS).
3. Software as a Service (SaaS).
Application service provider (ASP) takes less time to perform tasks and processes. It is also known as software as a service (SaaS).
Software as a Service (SaaS) can be defined as a cloud computing delivery model which involves the process of making licensed softwares available over the internet for end users on a subscription basis through a third-party or by centrally hosting it.
Hence, Application service provider (ASP) enhances or facilitates the automation of business services and effectively reduces the time required to perform various tasks.
Use this information for Magnum Company to answer the following question. The following totals for the month of April were taken from the payroll register of Magnum Company: Salaries $10,000 FICA taxes withheld 750 Income taxes withheld 2,000 Medical insurance deductions 450 Unemployment taxes 420 The entry to record the accrual of the employer's payroll taxes would include a
Answer:
Debit to pay roll tax expense for $1,170
Explanation:
Based on the information given The journal entry to record the accrual of the employer's payroll taxes would include a DEBIT to pay roll tax expense for $1,170 which is calculated as:
FICA taxes withheld 750
Add Unemployment taxes 420
Debit to pay roll tax expense for $1,170
(750+420)
Prepare an amortization schedule for a three-year loan of $114,000. The interest rate is 11 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan?
Answer:
$1254.000 loan
Explanation:
hope help keep learning
list the methods of obtaining information about foreign employment
Explanation:
social media
new papers
personal contact
recruitment website.
Your firm expects sales of $672,500 next year. The profit margin is 4.6 percent and the firm has a dividend payout ratio of 15 percent. What is the projected increase in retained earnings
Answer:
$26,294.8
Explanation:
Total expects sales at Next years = $672,500
The profit margin =4.6 percent
For the profit margin of expects sales at Next years= (4.6/100 ×$672,500)
= $30,935
dividend payout ratio =15 percent
distributed dividends= (15/100× $30,935)
= $26,294.75
the projected increase in retained earnings= difference between the profit margin of expects sales at Next years and distributed dividends
= ($30,935 - $4,640.25)
= $26,294.8
Which of the following statements about the W-2 form is TRUE?
1.AW-2 lists all the money you earned in cash over the last year
2. You need a separate W-2 form from EACH of your employers in order to file your taxes
3.The W-2 includes information about the interest you earned from your investments
4.The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form
Answer:
I believe it it the second option.
Explanation:
The Credit Card Processing unit of a bank receives 60 applications per hour. All applications first go through application processing that takes 6 minutes per application. There are 4 workers in the unit who process the applications. After the application is processed, all applications go through the credit check stage which takes 10 minutes per application. There are 6 workers at this stage. 20% of the applications fail the credit check and are rejected. Remaining 80% of applications that pass the credit check are sent for determining credit limit. There are 6 workers at the Determine credit limit stage, and it takes 15 minutes for a worker to process one application. After the credit limit is determined, all applications are sent to the issuing desk, who issue the credit card, and it takes 3 minutes per application.
What is the capacity of the "Credit Check" stage in number of applications per hour?
Answer:
36 applications/hour
Explanation:
Number of application/hour/worker = 60/processing time
Number of application/hour = (60/processing time) * Number of workers
Process No of Processing Number of application Number of
Workers Time (min) /hour/worker application/hour
Application 4 6 10 40
Processing
Credit Check 6 10 6 36
Determine 6 15 4 24
Credit Limit
Issue Card 2 2 30 60
Capacity of credit check in applications per hours = 36 applications/hour
g A physical inventory taken on December 31, 2020, resulted in an ending inventory of $1,150,000. Historically, Jensen's gross margin on sales has remained constant at 25%. Jensen suspects that an unusual amount of inventory may have been damaged and disposed of without appropriate tracking. At December 31, 2020, what is the estimated cost of missing inventory
Answer: $350,000
Explanation:
The Cost of Goods sold according to the Gross margin on sales is:
COGS = Revenue - (Gross margin * Revenue)
= 6,400,000 - (25% * 6,400,000)
= $4,800,000
The COGS according to the income statement formula:
= Opening inventory + Purchases - Closing inventory
= 1,300,000 + 5,000,000 - 1,150,000
= $5,150,000
The difference is the missing inventory
Difference = 5,150,000 - 4,800,000
= $350,000
Moby Enterprises reports the following information for 2019. ($ numbers are totals for 2019, not per unit) Selling price per unit $800 Beginning and ending balances of Work in Process Inventory 0 Beginning balance of Finished Goods Inventory (50 units) $28,750 Units produced 90 Units sold 100 Direct material used (variable) $12,000 Direct labor used (variable) $28,000 Manufacturing overhead (variable) $4,550 Manufacturing overhead (fixed) $10,800 Selling and admn. expenses: sales commission (variable) $4,000 fixed $10,000 Notes: Moby uses FIFO for maintaining its finished goods inventory account. The Beginning Finished Goods Inventory balance of $28,750 consists of $24,250 in variable manufacturing costs and $4,500 of fixed manufacturing overhead. REQUIRED: Part 1. Compute the following for 2019 using absorption costing: a. Total Manufacturing Costs b. Cost-of-Goods-Manufactured c. Per unit cost of production d. Ending balance of Finished Goods Inventory (in units and dollars) e. Cost-of-goods sold f. Gross Margin g. Net Income Part 2. Identify clearly how the fixed manufacturing overhead (both that in the opening inventory and that incurred in 2019) has moved.
Answer:
Moby Enterprises
Part 1:
a. Total Manufacturing Costs:
Direct material used (variable) $12,000
Direct labor used (variable) $28,000
Manufacturing overhead (variable) $4,550
Manufacturing overhead (fixed) $10,800
Total manufacturing costs = $55,350
b. Cost-of-Goods-Manufactured:
Total manufacturing costs = $55,350
c. Per unit cost of production = $55,350/90 = $615
d. Ending balance of Finished Goods Inventory (in units and dollars)
Beginning inventory of finished goods = 50
Plus units produced 90
Less units sold (100)
Ending inventory of finished goods = 40 units
Cost of ending inventory of finished goods = $24,600 (40 * $615)
e. Cost-of-goods sold:
Beginning Finished Goods Inventory $28,750
Cost of goods manufactured 55,350
Less Ending Finished goods inventory (24,600)
Cost of goods sold = $59,500
f. Gross Margin:
Revenue ($800 * 100) = $80,000
Cost of goods sold = (59,500)
Gross Margin = $20,500
g. Net Income:
Gross Margin $20,500
Less expenses (14,000)
Net income = $6,500
Part 2. Identify clearly how the fixed manufacturing overhead (both that in the opening inventory and that incurred in 2019) has moved.
Fixed manufacturing overhead in Beginning Inventory = $4,500
= $90 per unit ($4,500/50)
Fixed manufacturing overhead in current period = $10,800
= $120 per unit ($10,800/90)
This shows that the per unit cost of fixed manufacturing overhead has increased from $90 to $120.
Explanation:
a) Data and Calculations:
Selling price per unit $800
Beginning and ending balances of Work in Process Inventory 0
Beginning balance of Finished Goods Inventory (50 units) $28,750
$24,250 in variable manufacturing costs and $4,500 of fixed manufacturing overhead
Units produced 90
Units sold 100
Ending Finished Goods Inventory = 40 units (50 + 90 = 100)
Direct material used (variable) $12,000
Direct labor used (variable) $28,000
Manufacturing overhead (variable) $4,550
Manufacturing overhead (fixed) $10,800
Selling and admin. expenses:
sales commission (variable) $4,000
fixed $10,000
Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory.Feb. 2 Wrote a $350 check to establish a petty cash fund.5 Purchased paper for the copier for $16.55 that is immediately used.9 Paid $38.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.12 Paid $7.25 postage to deliver a contract to a client.14 Reimbursed Adina Sharon, the manager, $74 for mileage on her car.20 Purchased office paper for $68.77 that is immediately used.23 Paid a courier $19 to deliver merchandise sold to a customer, terms FOB destination.25 Paid $10.40 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.27 Paid $55 for postage expenses.28 The fund had $25.95 remaining in the petty cashbox. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.28 The petty cash fund amount is increased by $90 to a total of $440.
Answer:
Feb 2:
Petty Cash (Dr.) $350
Cash (Cr.) $350
Feb 28:
Petty Cash (Dr.) $90
Cash (Cr.) $90
Explanation:
Petty Cash Payments Report (February):
Feb 5 Purchased paper $16.55
Feb 9 Shipping Charges $38.50
Feb 12 Postage expense $7.25
Feb14 Reimbursement of mileage to Adina Sharon $74
Feb 23, Delivery of Customer Merchandise $19
Feb 25 Shipping charges $10.40
Feb 27 Postage expense $55
Total : $220.70
Lego Group in Bellund, Denmark, manufactures Lego toy construction blocks. The company is considering two methods for producing special-purpose Lego parts. Method 1 will have an initial cost of $360,000, an annual operating cost of $130,000, and a life of 3 years. Method 2 will have an initial cost of $760,000, an operating cost of $130,000 per year, and a 6-year life. Assume 13% salvage values for both methods. Lego uses an MARR of 13% per year.
Required:
a. Which method should it select on the basis of a present worth analysis?
b. If the evaluation is incorrectly performed using the respective life estimates of 3 and 6 years, will Lego make a correct or incorrect economic decision? Explain your answer.
Answer:
a) method 1 has a lower present worth, so it should be selected.
b) in order to properly compare both projects, we must assume that method 1 will be repeated at he end of year 3. That way both projects will have the same life span.
Explanation:
we must first determine the equivalent cash flows:
method 1 method 2
initial outlay -360,000 -760,000
cash flow year 1 -130,000 -130,000
cash flow year 2 -130,000 -130,000
cash flow year 3 -443,200 -130,000
cash flow year 4 -130,000 -130,000
cash flow year 5 -130,000 -130,000
cash flow year 5 -83,200 -31,200
the present worth of method 1 = -$1,074,266
the present worth of method 2 = -$1,232,226