Arsenio Company manufactures a single product that goes through two processes, mixing and cooking. The following data pertain to the mixing department for August:
Work-in-process inventory, August 1
Conversion: 70% complete 27,000 units
Work-in-process inventory, August 31
Conversion: 50% complete 34,000 units
Units started 73,000
Units completed and transferred out ?
Costs
Work-in-process inventory, August 1
Material X $ 52,000
Material Y 90,000
Conversion 118,940
Costs added during August
Material X 153,800
Material Y 114,600
Conversion
213,060
Material X is added at the beginning of work in the mixing department. Material Y is also added in the mixing department, but not until units are 70% complete with regard to conversion. Conversion costs are incurred uniformly during the process. The company uses the weighted-average cost method.
Required:
1. & 2. Calculate the equivalent units and costs per equivalent unit of material X, material Y, and conversion for the mixing department.
3. Calculate the cost of units transferred out.
4. Calculate the cost of the ending Work-in-Process Inventory.

Answers

Answer 1

Answer:

Arsenio Company

1. & 2. Equivalent units and cost per equivalent unit:

                                           Material X      Material Y  Conversion

Total equivalent units        100,000           66,000    83,000

Cost per equivalent unit    $2.058              $3.10        $4.00

3. Cost of units transferred out = $604,428

4. Cost of the ending Work-in-Process Inventory = $137,972

Explanation:

a) Data and Calculations:

                                               Units   % completed

August 1: Work-in-Process    27,000    18,900 (70%)

Units started                          73,000

Total units in process          100,000  

August 31: Work-in-Process 34,000    17,000 (50%)

Units completed and

 transferred out    =             66,000

Cost of production:

                                              Material X      Material Y  Conversion  Total

Work-in-process inventory,  $ 52,000      $90,000   $118,940  $260,940

August 1  

Costs added during August  153,800        114,600     213,060      481,460

Total cost for the period    $205,800    $204,600  $332,000  $742,400

Equivalent unit of production

Units completed and

 transferred out (66,000)   66,000 (100%) 66,000      66,000

Ending WIP (34,000)            34,000 (100%)   0               17,000 (50%)

Total equivalent units        100,000              66,000    83,000

Cost per equivalent unit:

Total cost for the period    $205,800    $204,600  $332,000

Total equivalent units         100,000         66,000       83,000

Cost per equivalent unit    $2.058              $3.10        $4.00

Cost assigned to:

Units completed and

 transferred out (66,000) $135,828    $204,600     $264,000  $604,428

Ending WIP                            69,972        0                    68,000      137,972

Total costs assigned       $205,800     $204,600     $332,000  $742,400


Related Questions

Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $260,000, and budgeted direct labor hours were 20,000. The average wage rate for direct labor is expected to be $25 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow:

Job 39 Job 40 Job 41 Job 42
Beginning balance $23,700 $34,600 $17,000 $0
Materials requisitioned 18,900 21,400 8,350 12,000
Direct labor cost 10,000 18,500 3,000 2,900

Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 120 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month.

Required:
a. Calculate the overhead rate based on direct labor cost.
b. Set up a simple job-order cost sheet for all jobs in process during June.

Answers

Answer:

Naranjo Company

a. The overhead rate = $0.52 or 52%.

b. Job-order Cost Sheet:

                                        Job 39      Job 40       Job 41       Job 42   Total

Beginning balance         $23,700    $34,600    $17,000    $0          $75,300

Materials requisitioned    18,900        21,400       8,350      12,000    60,650

Direct labor cost               10,000        18,500       3,000       2,900    34,400

Overhead applied             5,200         9,620        1,560        1,508     17,888

Total production costs $57,800      $84,120    $29,910    $16,408 $188,238

Explanation:

a) Data and Calculations:

Budgeted overhead for the year = $260,000

Budgeted direct labor hours = 20,000

Direct labor rate = $25 per hour

Total budgeted direct labor cost = $500,000 ($25 * 20,000)

Predetermined overhead rate, based on direct labor cost

= $260,000/$500,000 * 100 = 52% or $0.52

Job Sheet:

                                        Job 39      Job 40       Job 41       Job 42   Total

Beginning balance         $23,700    $34,600    $17,000    $0          $75,300

Materials requisitioned    18,900        21,400       8,350      12,000    60,650

Direct labor cost               10,000        18,500       3,000       2,900    34,400

Overhead applied             5,200         9,620        1,560        1,508      17,888

Total production costs $57,800      $84,120    $29,910   $16,408  $188,238

Applied Overhead:

Job 39: $10,000*52% = $5,200

Job 40: $18,500*52% = $9,620

Job 41: $3,000*52% = $1,560

Job 42: $2,900*52% = $1,508

Sales revenue             $69,360 ($57,800 * 120%)

Cost of goods sold     $57,800

Finished goods inventory               $84,120

Work in progress inventory                              $29,910    $16,408

Culture is a system of values and norms shared among a group of people and that when taken together constitute a design for living.

a. True
b. False

Answers

Answer:

a. True

Explanation:

The above is true because culture constitute a way of life of people who share common value. Culture refers to the beliefs, values and norms among group of people. For instance, in some culture, the male when greeting lay flat on the ground, while the female knee; these actions symbolizes respect for the people whom they are greeting.

Examples of cultural beliefs includes but not limited to tradition beliefs, religion beliefs, social standards etc.

In preparing a company's statement of cash flows for the most recent year, the following information is available: Loss on the sale of equipment $ 14,800 Purchase of equipment 153,000 Proceeds from the sale of equipment 134,000 Repayment of outstanding bonds 91,000 Purchase of treasury stock 66,000 Issuance of common stock 100,000 Purchase of land 123,000 Increase in accounts receivable during the year 47,000 Decrease in accounts payable during the year 79,000 Payment of cash dividends 39,000 Net cash flows from investing activities for the year were:__________.a. $233,000 of net cash provided.b. $142,000 of net cash used.c. $142,000 of net cash provided.d. $127,200 of net cash used.e. $268,000 of net cash used.

Answers

Answer:

b. $142,000 of net cash used.

Explanation:

The computation of the net cash flow from investing activities is shown below

= Purchase of equipment+ Proceeds from the sale of equipment  - Purchase of land

= -$153,000 + $134,000 - $123,000

= $142,000 of net cash used

Dominant religions in certain parts of the world have an effect on entrepreneurship as well as religious ethics pertaining to the cost of doing business.

a. True
b. False

Answers

Answer:

a. True

Explanation:

Religion can be defined as a collection of ritu-als and shared beliefs that are typically inclined or hin-ged on a sacred realm.

There are different types of religion practiced across the world and these includes; Islam, Christianity, Buddhism, Hinduism, etc.

Dominant religions in certain parts of the world have an effect on entrepreneurship as well as religious ethics pertaining to the cost of doing business.

This ultimately implies that, emphasis on ethics and values taught by these dominant religions usually have an effect on the followers, as they express it in the various areas of their lives such as in business (entrepreneurship).

Which organization would you work best in, an organically or mechanistically structured one, and why?

Answers

Answer:

i dont know

Explanation:

Why do you look like dababy?

Answers

letsss gooo you know it’s baby

Answer:

nah i am dababy if you try to be me again i will turn you into a convertible

Explanation:

Salespersons' Report and Analysis Walthman Industries Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended December 31 are as follows:

Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses
Case $610,000 $268,400 $109,800
Dix 603,000 241,200 96,480
Johnson 588,000 305,760 105,840
LaFave 586,000 281,280 123,060
Orcas 616,000 221,760 86,240
Sussman 620,000 310,000 124,000
Willbond 592,000 272,320 88,800

Required:
Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson.

Answers

Answer:

Walthman Industries Inc.

Table:

Salesperson Total Sales   Variable Cost     Contribution        Variable

                                            of Goods Sold      Margin        Selling Expenses

Case            $610,000    $268,400 (44%)  $341,600 (56%)  $109,800 (18%)

Dix                 603,000       241,200 (40%)    361,800 (60%)      96,480 (16%)

Johnson       588,000       305,760 (52%)   282,240 (48%)     105,840 (18%)

LaFave         586,000        281,280 (48%)   304,720 (52%)     123,060 (21%)

Orcas            616,000        221,760 (36%)  394,240 (64%)       86,240 (14%)

Sussman     620,000        310,000 (50%)   310,000 (50%)     124,000 (20%)

Willbond      592,000       272,320 (46%)   319,680 (54%)       88,800 (15%)

Explanation:

a) Data and Calculations:

Salesperson   Total Sales   Variable Cost          Variable

                                            of Goods Sold    Selling Expenses

Case              $610,000          $268,400            $109,800

Dix                   603,000             241,200                96,480

Johnson         588,000             305,760               105,840

LaFave           586,000              281,280               123,060

Orcas              616,000              221,760                86,240

Sussman       620,000              310,000               124,000

Willbond        592,000             272,320                88,800

During 2021, Oriole Company, which uses the allowance method of accounting for doubtful accounts, recorded bad debt expense of $52000 and in addition it wrote off, as uncollectible, accounts receivable of $9300. As a result of these transactions, net cash flows from operating activities would be calculated (indirect method) by adjusting net income with a:________

Answers

Answer:

$52,000 Increase

Explanation:

In the cash flow from operating activities only those transactions are listed which involves actual exchange of cash. When a company writes off some of account receivable it has not recorded as bad debt expense. When the company is confirmed about the uncollectible amounts then the company will write off the uncollectible amounts. These will be then adjusted in the net income to calculate net cash flow from operating activities.

Garland Inc. offers a new employee a single-sum signing bonus at the date of employment, June 1, 2021. Alternatively, the employee can receive $44,000 at the date of employment plus $15,000 each June 1 for four years, beginning in 2024. Assuming the employee's time value of money is 9% annually, what single amount at the employment date would make the options equally desirable

Answers

Answer: $‭84,902.17‬

Explanation:

Find the present value of the $44,000 and the $15,000 each June for 4 years.

First find the present value of the $15,000 in June 2024:

= 15,000 * Present value interest factor of Annuity due, 4 years, 9%

= 15,000 * 3.5313

= $‭‭52,969.5‬0

Then present value it to 2021:

= 52,969.50 / (1 + 9%)³

= $40,902.17

Add this to the $44,000 on June 2021:

= 44,000 + 40,902.17

= $‭84,902.17‬

Employee will be indifferent if $‭84,902.17‬ is received.

Explain the difference between a depository institution and a non-depository institution.

Answers

Explanation:

First, Depository institution

Institution that collect money from people and pay interest . You may can deposit your cash and withdraw it anytime . If you put longer they pay interest. Interest may be fixed or variable. On other words, from that institution you can send your money to other people ,can get credit or debit card to withdraw or shopping. They gave you loans. Such institution are:

Commercial bank , Saving institution,credit union and so on.

In last remember that those who pay you interest ,give loan facilities, business transaction and collect your money they are Depository. They have 3 types of account for people who want to deposit their money. 1. Current account 2. Saving Account 3. Fixed

Non Depository institution

Where you cannot put your money and withdraw it . You would not get interest. They are intermediary between borrowers and saver. They are:

Mutual funds: where you buy scheme in units. It like investment . Then they pay you bonus and even you can sales it on market. Don't confuse mutual funds collect money from public invest it on market and share their profit.

Insurance companies: they insure your belonginess. They pay when your things goes beyond the normal level. Like. Car theft,goods damage.

Pension fund:

Security firms: investment companies ,broker house.

Answer: A.    Depository institutions earn money from what customers put into the institution.

Explanation:

Took quiz. You're welcome ;)

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Answers

lol what’s the question?

How can creating a customer profile help entrepreneurs identify their target market

Answers

Creating a customer profile helps identify markets because the information on it is too persuade the buyer, customer or Purchaser. I'm in 6th grade don't judge x

exercise 4-9A Calculate the balance of cash using a bank reconciliation (LO4-5) Spielberg Company's general ledger shows a checking account balance of $22,830 on July 31, 2021. The July cash receipts of $1,745, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $41. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,320. The bank statement shows a balance of $22,364 on July 31.

Answers

Answer:

$22,789

Explanation:

One of the uses of the Bank Reconciliation Statement is to check the accuracy of the Cash Balance.

The Balance on the Bank Statement and that of the Cash Book in the Ledgers should always agree.

Bank Reconciliation Statement as a July 31

Balance as per Bank Statement                      $22,364

Add Lodgments not yet credited                       $1,745

Less unpresented checks                                 ($1,320)

Balance as per Cash Book                               $22,789

Therefore,

The balance of cash using a bank reconciliation is $22,789

common stock definition.​

Answers

Answer:

Common stock is a security that represents ownership in a corporation.

Explanation:

Holders of common stock elect the board of directors and vote on corporate policies.

How fast do you guys help students answer questions?

Answers

Usually takes 10 minutes it can be faster or longer I try to help everyone

Answer:

it depends on who is answering, what the question is, and what you want in the question. regularly answers come within 5 minutes, but if its really complicated then those questions almost never get answered

Which of the following would be considered a subtopic for a mind map?

uses
social media
photo sharing
blogging

Answers

Among the given terms, "uses" is most likely to be a subtopic for a mind map. Hence, the correct option is A.

A mind map is a visual tool that is used to organize and connect information in a hierarchical and organized way. It is often used to help generate ideas, plan projects, and solve problems. Among the given answers, options b, c and d could be used as main heading depending on topic. Uses is more likely to be a subtopic.

Therefore, the ideal selection is option A.

Learn more about, mind maps, here:

https://brainly.com/question/30403888

#SPJ1

Wattan Company reports beginning inventory of 14 units at $42 each. Every week for four weeks it purchases an additional 14 units at respective costs of $43, $44, $47, and $52 per unit for weeks 1 through 4. Compute the cost of goods available for sale and the units available for sale for this four-week period. Assume that no sales occur during those four weeks.

Answers

Answer:

$3192

70

Explanation:

the cost of goods available for sale = (14 X 42) + (14 X 43) + (14 X 44)  (14 X 47) + (14 X  52)  = $3192

14 X 5 = 70

At the start of the financial year, Lassan's Variety Store has debtors of $10 000. He
received cash of $30 500 from his customers during the year, having given various
discounts to his customers amounting to $3000. At the end of the year the
amount still owing to him was $7 000. What were Lassan's Variety Store total
credit sales for that period?​

Answers

20% because he was having a 3000 discount of everything. And that 20% of 30000 and then the 50 so it would be about 20.4 or 20.2 %

Splish Company took a physical inventory on December 31 and determined that goods costing $217,700 were on hand. Not included in the physical count were $26,450 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $23,320 of goods sold to Alvarez Company for $29,820, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Splish report as its December 31 inventory?

Answers

Answer: $267470

Explanation:

Based on the information given in the question, the amount that Splish should report as its December 31 inventory will be:

Goods in hand = $217,700

Add: Goods purchased from Pelzer Corporation = $26,450

Add: Goods sold to Alvarez Company = $23320

Total inventory value = $217,700 + $26,450 + $23320

= $267470

Therefore, the amount that Splish should report as its December 31 inventory will be $267470

A school realizes that they need a new copy machine for their main office. The copy machine costs $4,500. After speaking with the financial advisor, they decide to pay 10% of the cost of the machine in cash and finance the rest through their credit union. How much is their monthly payment if the credit union will charge 2% per year compounded monthly for 2 years

Answers

Answer:

The monthly payment is $172.29

Explanation:

The computation of the monthly payment is shown below:

Given that

NPER = 2 × 12 = 24

RATE = 2% ÷ 12 = 0.1666%

PV = $4,500 - $4500 × 10% = $4,050

FV = 0

The formula is given below:

= PMT(RATE,NPER,PV,FV,TYPE)

After applying the above formula

The monthly payment is $172.29

An Internet company located in Southern California has season tickets to the Los Angeles Lakers basketball games. The company president always invites one of the six vice presidents to attend games with him, and claims he selects the person to attend at random. One of the six vice presidents has not been invited to attend any of the last seven Lakers home games.

Required:
What is the likelihood this could be due to chance?

Answers

Answer:

27.91%

Explanation:

We are told that the company president invites one of the six vice presidents to attend the games with him. Thus, probability of a vice president getting invited is;

P(vice president invited) = 1/6

Now, we are told that One of the six vice presidents was not invited to attend any of the last seven Lakers home games.

Thus, the likelihood this could be due to chance is;

(1 - 1/6)^(7) = (5/6)^(7)

This gives; 0.2791 or 27.91%

Bruce Corporation makes four products in a single facility. These products have the following unit product costs:

Products
A B C D
Direct materials $16.10 $20.00 $13.00 $15.70
Direct labor 18.10 21.50 15.90 9.90
Variable manufacturing overhead 4.90 6.10 8.60 5.60
Fixed manufacturing overhead 28.00 14.90 15.00 17.00
Unit product cost 67.10 62.50 52.50 48.20

Additional data concerning these products are listed below.

Products
A B C D
Grinding minutes per unit 2.25 1.35 0.95 0.55
Selling price per unit $81.20 $73.60 $70.40 $65.10
Variable selling cost per unit $3.10 $3.60 $3.30 $4.00
Monthly demand in units 3,500 2,500 2,500 4,500

The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available per month on these machines. Direct labor is a variable cost in this company.

Required:
Which product makes the MOST profitable use of the grinding machines?

Answers

Answer:

Product D

Explanation:

Calculation to determine Which product makes the MOST profitable use of the grinding machines

First step is to calculate the Variable cost per unit

Products

A B C D

Direct materials $16.10 $20.00 $13.00 $15.70

Add Direct labor 18.10 21.50 15.90 9.90

Add Variable manufacturing overhead 4.90 6.10 8.60 5.60

Add Variable selling cost per unit $3.10 $3.60 $3.30 $4.00

Variable cost per unit $42.20 $51.60 $40.80 $35.20

Now let calculate the product that makes the MOST profitable use of the grinding machines

Selling price per unit $81.20 $73.60 $70.40 $65.10

Less Variable cost per unit $42.20 $51.60 $40.80 $35.20

=Contribution margin per unit $39 $22 $29.60 $29.90

÷Grinding minutes per unit 2.25 1.35 0.95 0.55

=Contribution per grinding minutes $17.33 $16.30 $31.16 $54.36

Therefore Based on the above calculation the product that makes the MOST profitable use of the grinding machines is PRODUCT D because it has the highest Contribution per grinding minutes of the amount of $54.36

You have acquired a new CT scanner at a cost of $750,000. You expect to perform 7,000 procedures per year over the estimated 5-year life of the scanner. Assuming no salvage value and an annual increase in replacement cost of 10 percent, what capital charge per procedure should the hospital levy to provide for replacement cost in the second year

Answers

Answer:

The capital charge per procedure that the hospital should levy to provide for replacement cost in the second year is:

= $64.82 per procedure.

Explanation:

a) Data and Calculations:

Cost of CT Scanner = $750,000

Annual increase in replacement cost = 10%

Estimated useful life of the scanner = 5 years

Number of procedures per year over the estimated 5-year life = 7,000

Total number of procedures = 35,000 (7,000 * 5)

Replacement cost in 2 years = $750,000 * FV factor

= $750,000 * 1.21

= $907,500

Amount to charge per procedure = $907,500/14,000

= $64.82

Echota Corporation has the following capital stock outstanding at December 31, 2020: 7% Preferred stock, $100 par value, cumulative 15,000 shares issued and outstanding $1,500,000 Common stock, no par, $10 stated value, 500,000 shares authorized, 350,000 shares issued and outstanding 3,500,000 The preferred stock was issued at $120 per share. The common stock was issued at an average per share price of $14. Prepare the paid-in capital section of the balance sheet at December 31, 2020. (Enter the account name only and do not provide the descriptive information provided in the question.)

Answers

Answer:

$6,700,000

Explanation:

Preparation of the paid-in capital section of the balance sheet at December 31, 2020.

Paid-in capital section of the balance sheet at December 31, 2020

7% Preferred stock, $100 par value, cumulative15,000 shares issued and outstanding $1,500,000

Add Common stock, no par, $10 stated value, 500,000 shares authorized, 350,000 shares issued andoutstanding 3,500,000

Total capital stock5,000,000

($1,500,000+3,500,000)

Add Additional paid-in capitalIn excess of par—preferred stock$ 300,000

(15,000 shares × $20 )

Add In excess of stated value—common stock1,400,000

(350,000 shares × $4)

Total paid-in capital$6,700,000

Therefore the paid-in capital section of the balance sheet at December 31, 2020 is $6,700,000

A company's corporate code of ethics is a document given to a newly hired employee on the first day of work. Usually he is asked to review it and to sign a document stating that he has read it and understands it. A corporation's code of ethics / mission statement can be easily found on the Internet and appears on the corporate websites of most companies.Research and summarize the corporate code of ethics of the company you work for or a company you are interested in. In a one page paper, name and summarize the company's corporate code of ethics. Explain any affect this code of ethics would have on an IT employee of this company. Submit your paper by the end of the day on Sunday. This assignment is worth 100 points.

Answers

Answer:

Answer is explained in the explanation section below.

Explanation:

Solution:

A Corporate Code of Ethics represents a set of business principles designed to regulate employee behaviour and to ensure that the mission and objectives of the company do not conflict. The most important ethical codes are listed below:

Integrity is a virtue.

Objectivity is a virtue.

Competence in the field.

Trustworthiness.

Professional conduct.

These are extremely important for us to maintain because they not only mark us as individuals, but also make us responsible employees of any organization that wishes to keep us together in the long run. WE MUST OBEDIENT TO THEM in order to ensure that, regardless of what we say or think, there will be a code of ethics that will help us to change over time and contribute to the progressive nature of things in our environment. This will also identify the IT firm employee, helping us to get a clearer understanding of the situation.

Pronghorn Corporation shipped $20,800 of merchandise on consignment to Gooch Company. Pronghorn paid freight costs of $2,200. Gooch Company paid $550 for local advertising, which is reimbursable from Pronghorn. By year-end, 57% of the merchandise had been sold for $22,300. Gooch notified Pronghorn, retained a 10% commission, and remitted the cash due to Pronghorn.Prepare Pronghorn's entry when the cash is received. (Round answers to 0 decimal places, e.g. 1,525. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answers

Answer:

Date                 Account Title                                       Debit            Credit

Year end          Cash                                                 $19,520

                       Advertising expenses                          $550

                       Commission expenses                    $2,230

                       Revenue from Consignment                               $22,300

                      Cost of Goods sold                          $13,110

                      Inventory on Consignment                                   $13,110

Cash received by Pronghorn:

= Cash - Advertising - Commission

= 22,300 - 550 - (10% * 22,300)

= 22,300 - 550 - 2,230

= $19,520

Cost of Goods sold:

= 57% * (Value of goods + Shipping)

= 57% * (20,800 + 2,200)

= $13,110

leases telecommunications equipment from Photon Company. Assume the following data for equipment leased from Photon Company. The lease term is 5 years and requires equal rental payments of $31,000 at the beginning of each year. The equipment has a fair value at the commencement of the lease of $150,000, an estimated useful life of 8 years, and a guaranteed residual value at the end of the lease of $15,500. Photon set the annual rental to earn a rate of return of 6%, and this fact is known to Callaway. The lease does not transfer title or contain a bargain purchase option, and is not a specialized asset.

Required:
How should Callaway classify this lease?

Answers

Answer:

Financial lease

Explanation:

The computation is shown below:

The Present value of minimum lease payments is

= Present value of rental payments + Present value of GRV

= $31,000 × Cumulative PV factor at 6% for 5 periods of annuity due + $15,500 × PV Factor at 6% for 5th period

= $31,000 × 4.46511 + $15,500 × 0.79209

= $138,418 + $12,277

= $150,695

Since the lease payments present value would be more than 90% of the fair value so it would be classified as the financial lease  

In Year 1, Lobo Corp. reported for financial-statement purposes the following revenue and expenses that were not included in taxable income:

Premiums on officers' life insurance under which the corporation is the beneficiary $5,000
Interest revenue on qualified-state or municipal bonds $10,000
Estimated future warranty costs to be paid in Year 2 and Year 3 $60,000

Lobo's enacted tax rate for the current and future years is 30%. Lobo has paid income taxes of $170,000 for the three-year period ended December 31, Year 1. There were no temporary differences in prior years. The deferred tax benefit to be applied against current income tax expense is:_________

a. $21,000
b. $19,500
c. $18,000
d. $22,500

Answers

Answer: $18,000

Explanation:

Interest from municipal bonds is tax free and will therefore result in a permanent difference along with the premium on officers' insurance.

Temporary difference will arise from the estimated future warranty costs to be paid in Year 2 and 3 and this will be a tax benefit because they will only be recognized in Year 2 and 3 but have already been recognized by the tax authority:

= 60,000 * 30%

= $18,000

A company had the following partial list of account balances at year-end: Sales returns and allowances $ 500 Account Receivables 9,000 Sales Discount 700 Sales Revenue 57, 200 Selling and Administrative Expense 300 The amount of net sales reported on the income statement would be:

Answers

Answer:

$56,000

Explanation:

The computation of net sales is shown below.

For the net sales reported, we'll add the sales revenue and deduct the sales return and allowances with sales discount

Net sales reported = Sales revenue - sales return and allowance - sales discount

= $57,200 - $500 - $700

= $56,000

Most effective bad-news messages contain a variety of components. Indirect bad-news messages contain the following components in this order: greeting, buffer, rationale for the bad news, the bad news, an expression of concern, an explanation of impacts on the bad-news recipients, possible solutions and a focus on the future, an expression of goodwill, and a closing.

Assume that you manufacture and sell exercise equipment. A customer recently purchased an elliptical from you. He sent a message requesting the replacement of a broken pedal. The parts warranty is for three months. The customer's message was sent to you four months after the purchase, so the warranty is no longer in effect. You will write a message to him denying his claim.

Match each of the options below to the items.

a. Closing
b. Concern
c. Rationale
d. Buffer
e. Bad News
f. Greeting
g. Possible Solutions
h. Focus on the Future

1. Since it's been four months since your purchase. the broken pedal is no longer under warranty.
2. We know it's inconvenient while your elliptical is not in use, and we'd like to help you get your pedal replaced as quickly as possible.
3. Match each of the options above to the items below.
4. Since it's been four months since your purchase, the broken pedal is no longer under warranty.
5. We know it's inconvenient while your elliptical is not in use, and we'd like to help you get your pedal replaced as quickly as possible.
6. Best wishes, Jenny Peterson

Answers

Answer:

1. Since it's been four months since your purchase. the broken pedal is no longer under warranty. ⇒ BAD NEWS.

This will fall under the Bad News because it is news that the customer would not want to receive.

2. We know it's inconvenient while your elliptical is not in use, and we'd like to help you get your pedal replaced as quickly as possible.⇒ CONCERN.

Falls under concern because it expresses sympathy at the customer's situation.

 

6. Best wishes, Jenny Peterson ⇒ CLOSING

This falls under Closing because such salutations are used to end a letter or response.

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