Answer: 0 units
Explanation:
Future Planned Production Orders = Expected goods requirement - Finished goods in inventory - Schedule production
= 550 - 450 - 150
= -50 units
Include no units because the finished goods and the scheduled production make up the requirement for the period.
Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with four years to maturity has a coupon rate of 4%. The yield to maturity (YTM) of the bond is 7.70%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note
Answer:
$8,744,669.10
Explanation:
Using the MS Excel Present value function
Value of the note = PV(Rate, Nper, PMT, -FV, Type)
Value of the note = PV(7.7%/2, 4*2, -1000000*4%/2, -1000000)
Value of the note = 8744669.0978
Value of the note = $8,744,669.10
So, the value of the Treasury note is $8,744,669.10
OK, WHO EVER IS IMPOSTER YOU BETTER TELL US NOW >:[
A) It's TOTALLY ME!!!
B) It's not me.
C) It's SOOOO not me :/
D) It's not me because *gives a whole big paragraph*
E) *silence*
F) I don't know :|
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
Total budgeted fixed overhead cost for the year $250,000
Actual fixed overhead cost for the year $254,000
Budgeted direct labor-hours (denominator level of activity) 25,000
Actual direct labor-hours 27,000
Standard direct labor-hours allowed for the actual output 26,000
Required:
a. Compute the fixed portion of the predetermined overhead rate for the year.
b. Compute the fixed overhead budget variance and volume variance.
Answer:
1. Predetermined overhead rate = Total fixed overhead cost year / Budgeted standard direct labor hours
Predetermined overhead rate = $250,000 / 25,000
Predetermined overhead rate = $10.00 per direct labor hour
2. Fixed overhead budget variance = Actual fixed overhead - Budgeted fixed overhead
Fixed overhead budget variance = $254,000 - $250,000
Fixed overhead budget variance = $4,000 (Unfavorable)
Fixed overhead volume variance = Budgeted fixed overhead - [Fixed overhead applied to work in process]
Fixed overhead volume variance = $250,000 - (26,000*$10)
Fixed overhead volume variance = $250,000 - $260,000
Fixed overhead volume variance = $10,000 (Favorable)
Ephraim Corporation acquired 80 percent of Lilac Corporation for $200,000 cash. Lilac reported net income of $25,000 each year and dividends of $5,000 each year for 20X2, 20X3, and 20X4. On January 1, 20X2, Lilac reported common stock outstanding of $160,000 and retained earnings of $40,000, and the fair value of the noncontrolling interest was $50,000. It held land with a book value of $90,000 and a market value of $100,000, and equipment with a book value of $40,000 and a market value of $48,000 at the date of combination. The remainder of the differential at acquisition was attributable to an increase in the value of patents, which had a remaining useful life of eight years. All depreciable assets held by Lilac at the date of acquisition had a remaining economic life of eight years. Ephraim uses the equity method in accounting for its investment in Lilac.
Based on the preceding information, what balance would Ephraim report as its investment in Lilac at January 1, 20X5?
a. $236,000
b. $248,000
c. $260,000
d. $300,000
Answer:
a. $236,000
Explanation:
Ephraim acquired 80% of Lilac corporation.
The consideration paid was $200,000 in cash
Lilac had income of $25,000 and paid $5,000 of dividend.
Land and equipment had book value different from market value.
market values are considered for the investment
$100,000 - $90,000 + $48,000 + $25,000 - $40,000 = $43,000
$43,000 * 80% = $34,000
Total investment value = $200,000 + $34,000 + dividend NCI
Total Investment Value = $236,000
"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
Madison Corporation purchased 40% of Jay Corporation for $300,000 on January 1. On June 20 of the same year, Jay Corporation declared total cash dividends of $75,000. At year-end, Jay Corporation reported net income of $375,000. The balance in Madison's Equity Method Investments—Jay Corporation account as of December 31 should be:
Answer:
$420,000
Explanation:
Given the above information,
Dividend
= $75,000 × 40%
= $30,000
Share in income
= $375,000 × 40%
= $150,000
Balance in investment account
= Beginning balance + Share in income - Dividend
= $300,000 + $150,000 - $30,000
= $420,000
Therefore, the balance in Madison's equity method investments - Jay Corporation accounts as of December 31 should be $420,000
a. Issued common stock to investors for $21.4 cash (example).
b. Purchased $1,621.6 of additional inventory on account.
c. Paid $34.1 on long-term debt principal and $2.6 in interest on the debt.
d. Sold $2,355 of products to customers on account; cost of the products sold was $1,456.6. (Hint: There are two separate effects needed for (d): one for earning revenue and one for incurring an expense.)
e. Paid cash dividends of $32 to shareholders.
f. Purchased for cash $32.4 in additional property, plant, and equipment.
g. Incurred $718.6 in selling expenses, paying three-fourths in cash and owing the rest on account.
h. Earned $1 of interest on investments, receiving 80 percent in cash.
i. Incurred $43 in interest expense to be paid at the beginning of next year.
Required:
For each of the transactions, write down the tabulation, indicating the effect (+ for increase and - for decrease) of each transaction.
Answer:
Following are the solution to this question:
Explanation:
[tex]Sheet \ balancing \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Declaration \ of \ revenue[/tex]
[tex]Payment \ \ \ Properties\ \ \ Liability \ \ \ \ equity \ of\ shareholders\ \ \ Revenues\ \ \ Expenses\ \ \ Net \ Income \\\\[/tex][tex]a\ \ \ \ \ \ \ \ \ \ \ \ 19.4 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 19.4 \\\\b \ \ \ \ \ \ \ \ \ \ \ 1676.6 \ \ \ \ \ \ \ \ \ 1676.6 \\\\[/tex]
[tex]c \ \ \ \ \ \ \ -54.7 \ \ \ \ \ \ \ \ \ \ -50.1 \ \ \ \ \ \ \ \ \ \ \ -4.6 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4.6 \ \ \ \ \ \ \ -4.6 \\\\[/tex]
[tex]d \ \ \ \ \ \ \ \ \ \ \ 2389.0 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2389.0 \ \ \ \ \ \ \ \ \ \ \ 2389.0 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2389.0\\\\[/tex]
[tex]-1421.6 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ -1421.6 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1421.6 \ \ \ \ \ \ \ \ \ \ \ \ -1421.6[/tex]
[tex]e \ \ \ \ \ \ \ \ \ -33.0 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ -33.0[/tex]
[tex]f \ \ \ \ \ \ \ \ \ \ 0.0 \ \ \ \ \ \ \ \ \ \ 0.0 \ \ \ \ \ \ \ \ \ \ 0.0 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0.0 \ \ \ \ \ \ \ \ \ \ 0.0\\\\g\ \ \ \ \ \ \ \ \ \ -533.7 \ \ \ \ \ \ \ \ \ \ 177.9\ \ \ \ \ \ \ \ \ \ -711.6 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 711.6 \ \ \ \ \ \ \ \ \ \ -711.6\\\\[/tex]
[tex]h\ \ \ \ \ \ \ \ \ \ 0.5 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0.5 \ \ \ \ \ \ \ \ \ \ 0.5 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0.5[/tex]
[tex]i \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 42.0 \ \ \ \ \ \ \ \ \ \ \ \ \ \ -42.0 \ \ \ \ \ \ \ \ \ \ \ \ \ \ 42.0\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ -42.0[/tex]
I need help with this question please
Consider a mutual fund with $219 million in assets at the start of the year and with 12 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $6 million. The stocks included in the fund's portfolio increase in price by 7%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 0.50%, which are deducted from portfolio assets at year-end.
What is the net asset value at the start and end of the year?
Answer:
$19.43
Explanation:
Net asset value at the end of the year = ($219,000,000 / 12,000,000 shares) * 1.07 * (1 - 0.005)
Net asset value at the end of the year = $18.25 * 1.07 * 0.995
Net asset value at the end of the year = $19.4298625
Net asset value at the end of the year = $19.43
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.
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 $17,150
Which is NOT a type of warranty in UCC Article 2 for the sales of goods?
warranty of title
warranty of fitness for a particular purpose
warranty of consumerability
warranty of merchantability
I am pretty sure the answer is the 3rd one
Answer:
Warranty of consumerability
Explanation:
edge 2021
Pulau Penang Island Resort. Theresa Nunn is planning a 30-day vacation on Pulau Penang, Malaysia, one year from now. The presentcharge for a luxury suite plus meals in Malaysian ringgit (RM) is RM1,045/day. The Malaysian ringgitpresently trades at RM3.1350/$. She figures out the dollar cost today for a 30-day stay would be$10,000. The hotel informed her that any increase in its room charges will be limited to any increase inthe Malaysian cost of living. Malaysian inflation is expected to be 2.75% per annum, while U.S. inflationis expected to be only 1.25%.
a. How many dollars might Theresa expect to need one year hence to pay for her 30-day vacation?
b. By what percent will the dollar cost have gone up? Why?
Answer:
A) $10124.83
B) 1.0125%
Explanation:
1) We are told that the present charge for a luxury suite is RM 1,045/day.
This means that the charge after one year will also include inflation charge.
Thus;
Charge after 1 year = 1045 × (1 + 2.75%)
= 1045 × 1.0275 = RM 1,073.7375 per day
For 30 days, charge is;
1073.7375 × 30 = RM 32212.125
Spot exchange rate in 1 year = spot rate × (1 + RM inflation rate)/(1 + US inflation rate)
Spot exchange rate in 1 year = 3.135 × (1 + 2.75%)/(1 + 1.25%) = 3.135 × 1.0275/1.0125 = 3.1815
Cost needed one year to pay for 30 day vacation = 32212.125/3.1815 = $10124.83
B) percent by which the dollar cost will have gone up = (10124.83/10000) × 100% = 1.0125%
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
Marginal product is rev: 06_21_2018 Multiple Choice the amount an additional worker adds to the firm's total output. a worker's output multiplied by the price at which each unit can be sold. the output of the least skilled worker. the amount any given worker contributes to the firm's total revenue.
Answer:
the amount an additional worker adds to the firm's total output.
Explanation:
The marginal product of an input is the change in total output as a result of the change in output by 1 unit
For example, the table below is the total product of labour
amount of labour output
1 10
2 20
3 40
the marginal product of the 3rd worker = (40 - 20) / (3 - 2) = 20
marginal product of the second worker = (20 - 10) / (2 -1 ) = 10
Average output = total output / labour
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
What does a sticky CTA do?
Answer:
It encourages users to revisit your website.
During this year, Weaver sold some equipment for $19 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $39 of its own stock. This year Weaver did not retire any bonds.
Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.)
Weaver Company
Statement of Cash Flows
For This Year Ended December 31
Operating activities:
Investing activities:
Financing activities:
Beginning cash and cash equivalents
Ending cash and cash equivalent
Answer:
Operating activities:
None
Investing Activities:
Loss on disposal (31 - 10 -19) $3
Financing Activities:
Gain on Long term investment (13 - 7) $6
Cash dividend paid $39
Explanation:
Weaver had incurred transactions which involved exchange of cash so they are reported in the statement of cash flows. These transactions are classified as either operating activity, investing activity or financing activity depending on the nature of transaction.
PLS ANSWER NEED ANSWER BY TOMORROW How Did The (TED)Wijsen Sisters Push Bali To Say 'Bye-Bye' To Plastic Bags?
Answer:’
Explanation:
"1. AudioCables, Inc., is currently manufacturing an adapter that has a variable cost of $.50 per unit and a selling price of $1.00 per unit. Fixed costs are $14,000. Current sales volume is 30,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $6,000. Variable costs would increase to $.60, but sales volume should jump to 50,000 units due to a higher-quality product. Should AudioCables buy the new equipment?"
Answer:
No.
Explanation:
Current profit of AudioCables, Inc without buying new equipment
Current Profit = Current sales volume * Selling price per unit - Fixed cost - Current sales volume * Variable cost per unit
= 30,000 * $1.00 - $14,000 - 30,000 * $0.50
= $30,000 - $14,000 - $15,000
= $1,000
So, the current profit of AudioCables, Inc., without buying new equipment is $1,000
Proposed profit of AudioCables, Inc after buying new equipment
Proposed Profit = Proposed sales volume * Selling price per unit – Fixed cost after buying new equipment - Proposed sales volume * Variable cost per unit after buying new equipment
= 50,000 * $1.00 - $20,000 – 50,000 * $0.60
= $50,000 - $20,000 - $30,000
= $0
So, the proposed profit of AudioCables, Inc., after buying new equipment is $0
Conclusion: As the profit of AudioCables, Inc., will reduce after buying new equipment from $1,000 to $0, therefore AudioCables should not buy the new equipment.
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:
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
Refining estimates may be necessary for a number of reasons. For example, people working on prototype development needing time to interact with the design engineers after the design is completed is a good example of
Answer:
Normal conditions not applying.
Explanation:
Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service. Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.
The fundamentals of Project Management includes;
1. Project initiation
2. Project planning
3. Project execution
4. Monitoring and controlling of the project
5. Adapting and closure of project.
Refining estimates may be necessary for a number of reasons. For example, people working on prototype development needing time to interact with the design engineers after the design is completed is a good example of normal conditions not applying because it follows the discretion of the manager or team involved.
Bell Inc. took a physical inventory at the end of the year and determined that $840,000 of goods were on hand. In Addition, the following items were not included in the physical count. Bell, Inc. determined that $96,000 of goods Be Purchased where in transit that were shipped f.o.b. destination (goods were actually received by the company three days after the inventory count).The company sold $40,000 worth of inventory f.o.b. shipping point. What amount should Be Reported as inventory at the end of the year
Answer:
Explanation:
r
A local bookstand believes that the demand for the Olympic edition of a sports magazine is normally distributed with a mean of 1,200 and a standard deviation of 200. Each copy of the magazine costs the bookstand $1.50 per copy, and the bookstand will sell the issue for $5.00. Following the Olympic Games, there will be no demand for the magazine, and all leftover copies will be recycled because they will have no salvage value. What is the optimal number of copies of the Olympic edition that the bookstand should order?
Answer:
1,304 copies
Explanation:
Overage cost (Co) means like cost of over ordering
Co = Cost price - Salvage value
Co = $1.50 - $0 (No salvage value)
Co = $1.50
Underage cost (Cu) means like cost of under ordering
Cu = Selling price - Cost price
Cu = $5.00 - $1.50
Cu = $3.50
Service level = Cu / (Cu + Co)
Service level = $3.50 / ($3.50 + $1.50)
Service level = $3.50 / $5.00
Service level = 0.7
Z-value = NORMSINV (Service level), Using Ms Excel
Z-value = NORMSINV (0.7)
Z-value = 0.52
Optimal Order Quantity (Q) = Mean Demand + (Z-value*Standard deviation)
Optimal Order Quantity Q = 1,200 + (0.52*200)
Optimal Order Quantity Q = 1,200 + 104
Optimal Order Quantity Q = 1,304 copies
The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $27 per unit. Variable costs for the casing are $14 per unit and fixed cost is $3 per unit. Cotwold executives would like for the Molding Division to transfer 10,000 units to the Assembly Division at a price of $19 per unit. Assume the Molding Division is operating at full capacity. Required: 1. Should it accept the transfer price proposed by management
Answer:
Cotwold Company
The Molding Division
The Molding Division should not accept the transfer price proposed by management. It is not reasonable and fair according to the rules for transfer pricing. However, the amount is above the marginal cost for the Molding Division.
Therefore, the division should exhaust opportunities for renegotiation of the transfer price. However, ultimately, management's decision will prevail.
Explanation:
a) Data and Calculations:
Price of casing to external customers = $27 per unit
Variable costs for the casing = $14 per unit
Fixed cost for the casing = $3 per unit
Quantity to the Assembly Division = 10,000
Agreed transfer price = $19
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.
Consider the simple 3-station assembly line illustrated below, where the 2 machines at Station 1 are parallel, i.e., the product only needs to go through one of the 2 machines before proceeding to Station 2. Station 1 Machine A has a capacity of 3 units per hour; Station 1 Machine B has a capacity of 3 units per hour; Station 2 has a capacity of 5 units per hour; Station 3 has a capacity of 10 units per hour What is the bottleneck time of this process
Answer:
The bottleneck time for this process is 20 minutes.
Explanation:
a) Data and Calculations:
Station Capacity per hour Time required per unit
1 A 3 20 minutes (60/3)
1 B 3 20 minutes (60/3)
2 5 12 minutes (60/5)
3 10 6 minutes (60/10)
Total demand for the process = 38 minutes (20+12+6)
b) The bottleneck is the station that requires the longest time for its outputs to be processed. The bottleneck in this process is given by Station One, requiring 20 minutes to meet output requirements through either machine A or machine B. The bottleneck constitutes a constraint on the process capacity to achieve results.
Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $40,190 per month plus $2709 per flight plus $10 per passenger. The company expected its activity in August to be 88 flights and 300 passengers, but the actual activity was 91 flights and 303 passengers. The actual cost for plane operating costs in August was $258,690. The plane operating costs in the planning budget for August would be closest to:
Answer:
$281,612
Explanation:
Plane Operating Cost = Fixed cost + (Variable cost per unit1 × q1) + (Variable cost per unit 2 × q2)
Plane Operating Cost = $40,190 + ($2709*88) + ($10 * 303)
Plane Operating Cost = $40,190 + $238,392 + $3,030
Plane Operating Cost = $281,612
So, the plane operating costs in the planning budget for August would be $281,612
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