Answer:
Indirect Materials Used 10,000
Explanation:
Cai Corporation
Raw Materials Opening balance 17,000
Purchases 97,000
Raw Materials Ending Balance 30,000
Raw Materials Used 84,000
Direct Materials Used 74,000
Indirect Materials Used 10,000
The indirect materials are requisitioned from the raw materials inventory but summed under the manufacturing/ factory overhead.
The Total Raw materials requisitioned was $ 84,000 out of which $ 74,000 was direct materials and only $ 10,000 was used as indirect materials.
Work In Process Opening 19,000
Add Direct materials 74,000
Add Direct labor 13,000
Add Overhead applied 257,000
Less Work In Process Credits 506,000
Ending Work In Process 143,000
The ending Work in Process balance is found out by subtracting the total credits from the total debits .
Uniform Supply accepted a $4,800, 90-day, 10% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on December 31, to record the accrued interest on the note
Answer:
The answer is
Dr: Notes Receivable $4,800
Dr: Interest Receivable $120
Cr: Sales $4,920
Explanation:
The yearly interest rate is 10%
So the interest rate for 90 days(assume 360 days make a year?
90/360 x 10%
2.5% is the interest rate for 90 days.
The interest payment for 90 days will be;
2.5% x $4,800
= $120
The entry will now be:
Dr: Notes Receivable $4,800
Dr: Interest Receivable $120
Cr: Sales $4,920
Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified three major activities and then completed the first-stage allocations of costs to the activity cost pools. The results appear below: Activity Cost Pool Activity Measure Total Cost Total Activity Serving a party of diners Number of parties served $ 33,000 6,000 parties Serving a diner Number of diners served $ 138,000 15,000 diners Serving a drink Number of drinks ordered $ 24,000 10,000 drinks The above costs include all of the costs of the restaurant except for organization-sustaining costs such as rent, property taxes, and top-management salaries. Some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. Other costs, such as washing plates and glasses, depends on the number of diners served or the number of drinks served. Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month (including organization-sustaining costs) was $240,000 and that 15,000 diners had been served. Therefore, the average cost per diner was $16.
Required:
1. According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? (Round your intermediate calculations and final answers to 2 decimal places.)
a. A party of four dinners who order three drinks-?
b. A party of two dinners who do not order any drinks-?
c. A party of one dinner who order two drinks-?
2. Convert the total costs you computed in (1) above to costs per diner. In other words, what is the average cost per diner for serving each of the following parties? (Round your intermediate calculations to 2 decimal places and final answers to 3 decimal places.)
a. A party of four dinners who order three drinks-?
b. A party of two dinners who do not order any drinks-?
c. A party of one dinner who order two drinks-?
Answer:
Kindly check attached picture
Explanation:
Required:
1. According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? (Round your intermediate calculations and final answers to 2 decimal places.)
a. A party of four dinners who order three drinks-?
b. A party of two dinners who do not order any drinks-?
c. A party of one dinner who order two drinks-?
2. Convert the total costs you computed in (1) above to costs per diner. In other words, what is the average cost per diner for serving each of the following parties? (Round your intermediate calculations to 2 decimal places and final answers to 3 decimal places.)
a. A party of four dinners who order three drinks-?
b. A party of two dinners who do not order any drinks-?
c. A party of one dinner who order two drinks-?
Kindly check attached picture for detailed explanation.
Average cost per dinner is $12.375, $11.95, $19.50 respectively
Average cost based problem:Computation:
1.A.
Activity pool Activity rate Activity Activity cost
Parties $5.5 1 $5.5
Dinners $9.2 4 $36.8
Drinks $2.4 3 $7.2
Total $49.50
1.B.
Activity pool Activity rate Activity Activity cost
Parties $5.5 1 $5.5
Dinners $9.2 2 $18.4
Drinks $2.4 0 0
Total $23.9
1.C.
Activity pool Activity rate Activity Activity cost
Parties $5.5 1 $5.5
Dinners $9.2 1 $9.2
Drinks $2.4 2 $4.8
Total $19.50
2. Average cost per dinner
A = 49.50 / 4 = $12.375 per dinner
B =23.9 / 2 = $11.95 per dinner
C = 19.50 / 1 = $19.50 per dinner
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On April 1, 10,000 shares of $20 par common stock were issued at $24.
Required:
Illustrate the effects on the accounts and the financial statements.
Answer:
The journal entry to record this transaction would be:
April 1, 10,000 shares issued
Dr Cash 240,000
Cr Common stock 200,000
Cr Additional paid in capital 40,000
The balance sheet is affected:
Assets = Liabilities + Stockholders' equity
Cash = NA Common stock APIC
$240,000 $200,000 + $40,000
increases increases increases
The cash flow statement is also affected since cash from financing activities increases by $240,000. The statement of shareholders' equity is also affected because equity increases by $240,000.
The income statement is not affected.
Use the following information to determine this company's cash flows from financing activities.
A. Net income was $473,000.
B. Issued common stock for $74,000 cash.
C. Paid cash dividend of $13,000.
D. Paid $125,000 cash to settle a note payable at its $125,000 maturity value.
E. Paid $119,000 cash to acquire its treasury stock.
F. Purchased equipment for $86,000 cash.
Use the above information to determine this company's cash flows from financing activities.
Answer:
The answer is ($183,000)
Explanation:
This section deals with cash flows used to fund(e.g borrowing and repayment of loans) the business
Statement of cash flow(Partial)
Issued common stock for cash----------------------------------------------------------$74,000
Paid cash dividend-------------- ($13,000)
Paid cash to settle a note payable -----------------------------------------------($125,000)
Paid cash to acquire its treasury stock----------------------------------------($119,000)
Net cash flow from financing activities-----------------------------------------($183,000)
Under the laws of agency, partners of a CPA firm may be liable for the work of others on whom they rely. This would not include:
Answer: employees of the audit client.
Explanation:
The options to the question are:
A. employees of the CPA firm.
B) employees of the audit client.
C) other CPA firms engaged to do part of the audit work.
D) specialists employed by the CPA firm to provide technical advice on the audit.
Agency law simply means the agent-principal relationships which is a relationship whereby one party has a legal authority to act and represent the other party.
Based on the above question, the partners of CPA firm are liable for the work of the firm that they are representing. In this case, they'll be liable for the employees of the CPA firm, other CPA firms engaged to do part of the audit work and the specialists employed by the CPA firm to provide technical advice on the audit.
Therefore, the employees of the audit client is not part of the people that them. Hence, this is the answer.
Consider the difference between Liechtenstein’s per capita GDP and the per capita GDP of the U.S. Chances are you have never heard of the country of Liechtenstein, so you may be surprised that such a small country can have a significantly higher per capita GDP than the U.S. Using at least two outside sources, research why Liechtenstein’s per-capita GDP is so high. To be sure your sources are reputable, follow these guidelines when searching: The author of the source should be clear. The author should have expertise in the field the person is writing on. For instance, if you are reading a source on an environmental issue, the author should have research experience with the topic. The source should be academic, meaning it is published by a respected site or source in the field of study (e.g. official government or university Web sites, academic journals, or reputable news sources). The source should not state opinions as facts. The source should clearly cite its sources and should not include dated information. In a brief paragraph, explain why Liechtenstein’s per-capita GDP is so high. Cite your sources, explain why your sources are reputable, and summarize the strengths and weaknesses of each source.
Answer:
The sources are various documents written by the OECD: The Organization for Economic Co-operation and Development, and official sources made by the Government of Liechtenstein.
There are many reasons why Liechtenstein has such a high GDP Per capita. The first reason is its political system, which is surprisingly federal, even for such a small state. This means that the different municipalities of Liechtenstein compete among themselves for investment and development, for example, by offering lower tax rates.
The second reason is precisely the economic incentives that the country offers to private businesses. Relatively low taxation, very good infraestructure, well-educated human capital, and closeness to the wealthy markets of Germany, Switzerland, and Austria are among the economic incentives that make Liechtenstein a country with more companies registered (around 70,000) than inhabitants (around 38,000).
The stock of Wiley United has a beta of 1. The market risk premium is 11.5 percent and the risk-free rate is 2.3 percent. What is the expected return on this stock in percent
Answer:
9.41%
Explanation:
Wiley United has a beta of 1
The market risk premium 11.5%
= 11.5/100
=0.115
Risk free rate is 2.3%
= 2.3/100
= 0.023
Therefore the expected rate of return can be calculated as follows
Expected rate of return= Risk free rate+beta(market return-risk free rate)
= 0.023+1(0.115-0.023)
= 1.023(0.092)
= 0.0941×100
=9.41%
Hence the expected return on the stock is 9.41%
The manufacturing of semiconductor chips produces 2% defective chips. Assume the chips are independent and that a lot contains 1000 chips.
(a) Approximate the probability that more than 25 chips are defective.
(b) Approximate the probability that between 20 and 30 chips are defective.
Answer:
P(X>25)=0.107488
P(20<X<30)= 0.440427
0r 0.53490
Explanation :
Given from the question that the percentage of defective chips produced in the manufacturing of semiconductor is 2%
We are to Assume that the chips are independent and that a lot contains 1000 chips.
Then the following probabilities are to be estimated
a)More than 25 chips are defective
b)Between 20 and 30 chips are defective.
The percentage of defective chips produced in the manufacturing of semiconductor is 2%, therefore, our p=0.02.
The total number of chips, hence our n=1000.
Let X denote the number of defective chips in the manufacturing of semiconductor. So we will be able to calculate our mean
So the mean of X,
np= (10000.02). = 20
The variance of X can also be calculated as
np(1-p)= (10000.020.98). = 19.6
nq= n(1-p)=1000(1-0.2)=980 >5
Since np>5 and n(1-p)>5, then the requirements are satisfied
a) the z- score which is the value decreased by the mean value np and divided by the standard deviation now = np(1-p)
Z=
can be determined here
Z= x-np/√np(1-p)
z= [25.5-1000(0.02)]/√[1000(0.02)(1-0.02)]
z=1.24
if we check the normal distribution table using P(X>25)= P(X>25.5) = P(z>1.24) then we have the value of 0.107488
b) z= 20.5-1000(0.2)/√1000(0.02)(1-0.02)
z= 0.11
z= x-np/√np-(1-np)
z= 29.5-1000(0.2)/√1000(0.02)(1-0.02) = 2.15
CHECK THE ATTACHMENT TO COMPLETE THE SOLUTION
Probabilities are used to determine the chances of events
The given parameters are:
[tex]p = 2\%[/tex] --- the proportion of defective chips[tex]n =1000[/tex] --- the number of defective chipsStart by calculating the mean and the standard deviation
[tex]\bar x = np[/tex]
[tex]\bar x = 2\% \times 1000[/tex]
[tex]\bar x = 20[/tex] --- the mean
[tex]\sigma = \sqrt{\bar x \times (1 -p)}[/tex]
[tex]\sigma = \sqrt{20 \times (1 -2\%)}[/tex]
[tex]\sigma = 4.43[/tex] ---the standard deviation
(a) The probability that more than 25 chips are defective
Using continuity correction, the probability is represented as:
[tex]P(x > 25) = P(x > 25.5)[/tex]
Start by calculating the z-score using:
[tex]z = \frac{x - \bar x}{\sigma}[/tex]
So, we have:
[tex]z = \frac{25.5 - 20}{4.43}[/tex]
[tex]z = \frac{5.5}{4.43}[/tex]
[tex]z = 1.241[/tex]
The probability is then represented as:
[tex]P(x > 25) = P(z > 1.241)[/tex]
Using z probability calculator, we have:
[tex]P(x > 25) = 0.1073[/tex]
Hence, the probability that more than 25 chips are defective is 0.1073
(b) The probability that between 20 and 30 chips are defective
Using continuity correction, the probability is represented as:
[tex]P(20 < x < 30) = P(20.5 < x < 29.5)[/tex]
Start by calculating the z-scores for both x values:
[tex]z = \frac{x - \bar x}{\sigma}[/tex]
So, we have:
[tex]z = \frac{20.5 - 20}{4.43}[/tex]
[tex]z = \frac{0.5}{4.43}[/tex]
[tex]z = 0.113[/tex]
[tex]z = \frac{29.5 - 20}{4.43}[/tex]
[tex]z = \frac{9.5}{4.43}[/tex]
[tex]z = 2.144[/tex]
The probability is then represented as:
[tex]P(20 < x < 30) = P(0.113 < z < 2.144)[/tex]
Rewrite as:
[tex]P(20 < x < 30) =P( z < 2.144) - P(z < 0.113 )[/tex]
Using z probability calculator, we have:
[tex]P(20 < x < 30) =0.98398 - 0.54498[/tex]
[tex]P(20 < x < 30) =0.4390[/tex]
Hence, the probability that between 20 and 30 chips are defective is 0.4390
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Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics
Answer:
Description
Explanation:
The description method of business buying is when the seller provides the list of features that the product should have and the seller has to provide a product that fulfills those characteristics. It is used when the product need to have certain features according to the company's needs. Because of this, the answer is that the method of business buying that is most likely to be used when the products being purchased are standardized based on certain characteristics is description.
On January 1, 2018,MechanicsCredit Union (MCU)issued 8 %,20-yearbonds payable with face value of $ 200 comma 000.These bonds pay interest on June 30 and December 31. The issue price of the bonds is 106.Journalize the following bond transactions:
A. Issuance of the bonds on January 1, 2018.
B. Payment of interest and amortization on June 30, 2018.
C. Payment of interest and amortization on December 31, 2018.
D. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded.
Answer:
A. Issuance of the bonds on January 1, 2018.
Dr Cash 212,000
Cr Bonds payable 200,000
Cr Premium on bonds payable 12,000
B. Payment of interest and amortization on June 30, 2018.
premium on bonds payable = $12,000 / 40 coupons = $300 per coupon
Dr Interest expense 7,700
Dr Premium on bonds payable 300
Cr Cash 8,000
C. Payment of interest and amortization on December 31, 2018.
Dr Interest expense 7,700
Dr Premium on bonds payable 300
Cr Cash 8,000
D. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded.
Dr Bonds payable 200,000
Cr cash 200,000
Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 4.70% per year. What is the real risk-free rate of return, r*
Answer:
2.30%
Explanation:
Data has given as:
Yield for 1 year T-bill = 7.00%
Future inflation rate = 4.7%
In order to find the risk-free rate of return we need to deduct future inflation rate from the yield for the year
Risk-free Rate of return = 1 year T-bill yield - inflation
Risk-free Rate of return = 7.00% - 4.70%
Risk-free Rate of return = 2.30%
In Japan, the _____ helps small companies identify potential export opportunities.
a. MITI
b. IMF
c. WTO
d. ITA
e. USEAC
Answer:
a. MITI
Explanation:
In Japan, the MITI helps small companies identify potential export opportunities
The full meaning of MITI his Ministry of International Trade and Industry which is the ministry which is responsible for always on the lookout for export opportunities and they are as well responsible for industry, investment, productivity as well as small and medium enterprise.
Lastly MITI also help in controlling Japan's foreign trade as well as helping to supervise the international commerce and ensuring the smooth flow of goods and service in the national economy.
Pronghorn Company purchased equipment for $251,930 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $14,160. Estimated production is 40,300 units and estimated working hours are 20,100. During 2017, Pronghorn uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Pronghorn is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to 0 decimal places, e.g. 45,892.)
Answer:
Pronghorn Company
Depreciation Expense under Production Hours & Production Units:
c) Production Unit:
Depreciation Rate =Depreciable amount/Production hours
= $5.90 per unit
for 1,100 units, Depreciation expense = 1,100 x $5,90 = $6,490
b) Production hours:
Depreciation Rate = Depreciable amount/Production hours
= $237,770/20,100 = $11.83 per hour
For 530 hours, depreciation expense = 530 x $11.83 = $6,270
Explanation:
1. Data:
Pronghorn Company:
October 1, 2017
Purchase of Equipment for $251,930
Salvage value 14,160
Depreciable amount $237,770
2. Depreciation Expenses based on production hours and hours are some of the methods to depreciate an equipment used for production. Using these methods, the depreciation rate is determined and then multiplied by usage (hours or units) to obtain the depreciation expense for the period. The methods are simple and logical for depreciating production equipment.
Hitzu Co. sold a copier costing $7,500 with a two-year parts warranty to a customer on August 16, 2017, for $15,000 cash. Hitzu uses the perpetual inventory system. On November 22, 2018, the copier requires on-site repairs that are completed the same day. The repairs cost $107 for materials taken from the repair parts inventory. These are the only repairs required in 2018 for this copier. Based on experience, Hitzu expects to incur warranty costs equal to 4% of dollar sales. It records warranty expense with an adjusting entry at the end of each year. 1. How much warranty expense does the company report in 2017 for this copier
Answer:
$600
Explanation:
The computation of the warranty expense for the year 2017 is shown below:
Warranty expense is
= Sales value in dollars × warranty cost percentage
= $15,000 × 4%
= $600
By multiplying the sales value with the warranty cost percentage so that the warranty expense could come and the same is to be considered
Therefore the other items values are not considered as they are not relevant
Park Co. is considering an investment that requires immediate payment of $27,000 and provides expected cash inflows of $9,000 annually for four years. If Park Co. requires a 10% return on its investments. What is the internal rate of return
Answer:
IRR = 12.92%
Explanation:
The IRR is the discount rate that equates the present value of cash inflows to that of cash outflows. At the IRR, the Net Present Value (NPV) of a project is equal to zero
If the IRR greater than the required rate of return , we accept the project for implementation
If the IRR is less than that the required rate , we reject the project for implementation
A project that provides annual cash flows of $24,000 for 9 years costs $110,000 today. Under the IRR decision rule, is this a good project if the required return is 8 percent?
Lets Calculate the IRR
Step 1: Use the given discount rate of 10% and work out the NPV
NPV = 9000× (1-1.10^(-4)/0.1) - 27,000 =1528.78
Step 2 : Use discount rate of 20% and work out the NPV (20% is a trial figure)
NPV = 9000× 1- 1.20^(-4)/0.2 - 27000 = -3701.38
Step 3: calculate IRR
IRR = a% + ( NPVa/(NPVa + NPVb)× (b-a)%
IRR = 10% + 1528.78/(1528.78+3701.38)× (20-10)%= 0.12923
= 0.129230153 × 100
IRR = 12.92%
When all firms earn zero economic profits producing the output level where P=MR=MC and P=AC and there is no incentive to leave or join the market, the market is in __________.
Answer:
Long-run equilibrium.
Explanation:
When all firms earn zero economic profits producing the output level where P=MR=MC and P=AC and there is no incentive to leave or join the market, the market is in long-run equilibrium.
In a perfectly competitive market in long-run equilibrium, a long-run equilibrium avails firms the opportunity to adjust all inputs and all fixed costs are maximized. Also, it's characterized by free entry and exit, as such there isn't a fixed number of firms. This simply means that, since the number of firms in a long-run equilibrium can change, a firm must exit the market as a result of losses i.e when the firm is unable to cover its fixed costs in the long-run while new firms are allowed entry into the market when it anticipates potential profits or gains.
However, the firms always strive to maximize profits by increasing their level of output, such that P = MC. Also, the firms wouldn't be willing to leave or enter into the market because they are not making any profit, such that P=AC.
In a nutshell, in the long run equilibrium P=MR=MC and P=AC.
Where, P represents the price.
Answer:
The correct answer is: long-run equilibrium.
Explanation:
To begin with, the market that is refered in the question is a perfect competitive one, you can tell by the fact that the price equals the marginal revenue(MR) and that equals the marginal costs(MC) and also the price equals the average cost and that combination only happens in the competitive market and therefore that the relationship established happen when that industry is in the long run equilibrium and there is no incentive to leave or join the market.
How can you avoid spending more than what is in your
bank account?
Check your bank statement once a month.
Ask your financial institution to notify you when you
are close to $0 in your account.
Keep your own records to compare with your
financial institution's records.
None of the above
Answer:
Check your bank statement once a month.
Ask your financial institution to notify you when you are close to $0 in your account.
Keep your own records to compare with your financial institution's records.
Explanation:
The three statements above represent ways that can be used to avoid spending more than what is in one's bank account.
Cheking one's bank statement once a month is the most effective method: by doing so, one can get informed about the exact amount of money left in the account.
Asking one's financial institution to notify you when you are close to $0 is also a good measure, although it could be dangerous to depend on that warning in case one has a tendency to overspend, and the notification comes too early in the month.
Finally, keeping personal records to compare with the records of the bank is more like a learning excercise, that also helps, but it is less effective because it is the bank record that will be right all of the time.
Answer: check your bank statement once a month
Explanation:
Promoters of an LLC are Select one: a. are never personally liable on pre-formation debt. b. always liable on pre-formation debt. c. only liable on pre-formation debt until a novation occurs.
Answer:
The answer is C. only liable on pre-formation debt until a novation occurs.
Explanation:
The corporation and the third-party agree to release the promoter from liability and to substitute the corporation in place of the promoter as the party liable on the contract. May be express or implied.
What is the value of zero-coupon bond with a par value of $1,000 and a yield to maturity of 5.20%? The bond has 12 years to maturity.
Answer:
$544.265
Explanation:
Given:
FV = $1,000
Yield to maturity = 5.2%
N = 12 years
Required:
Find the value of the zero coupon bond.
Use the formula:
PV = FV * PVIF(I/Y, N)
Thus,
PV = 1000 * PVIF(5.2%, 12)
= 1000 * 0.544265
= $544.265
The value of the zero coupon bond is $544.3
A registered representative wishes to give a speech to a group of 35 potential retail clients at a restaurant. The speech is scripted and is a general discussion about investing in securities. Which statement is TRUE?
Answer:
Prior principal approval must be obtained and a copy of the speech must be retained in your firm's Office of Supervisory Jurisdiction
Explanation:
Because the speech is to be givento 35 attendees, it is under the Retail Communication. Every speech should be honest and of good taste; and the speech must be informational, but far from promotional.
It is not required that the speech content has to be pre-filed with the SEC. A copy must be kept a period of f 3 years for inspection by FINRA examiners. The speech script would be kept on file in the firm's supervisory compliance office that is the Office of Supervisory Jurisdiction.
Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production 155,000
Fixed manufacturing overhead cost $ 653,000
Variable manufacturing overhead cost per machine-hour $ 4.70
Required:
1. Compute the plantwide predetermined overhead rate.
2. During the year, Job 400 was started and completed. The following information was available with respect to this job:
Direct materials $ 390
Direct labor cost $ 220
Machine-hours used 37
Compute the total manufacturing cost assigned to Job 400.
3. If Job 400 includes 60 units, what is the unit product cost for this job?
4. If Moody uses a markup percentage of 120% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?
find- Predetermined overhead rate =
total manufacturing cost=
If Job 400 includes 60 units, what is the unit product cost for this job?
If Moody uses a markup percentage of 120% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Machine-hours required to support estimated production 155,000
Fixed manufacturing overhead cost $ 653,000
Variable manufacturing overhead cost per machine hour $ 4.70
First, we need to calculate the predetermined overhead rate.
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (653,000/155,000) + 4.7
Predetermined manufacturing overhead rate= $8.91 per machine hour
Job 400:
Direct materials $ 390
Direct labor cost $ 220
Machine-hours used 37
To allocate overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 8.91*37= $329.67
Now, we can calculate the total cost and unitary cost:
Total cost= 390 + 220 + 329.67= 939.67
Unitary cost= 939.67/60= $15.66
Finally, the selling price for Job 400:
Selling price0 939.67*1.2= $1,127.6
Listmann Corp. processes four different products that can either be sold as is or processed further. Listed below are sales and additional cost data: Product Sales Value with no further Processing Additional Processing Costs Sales Value after further processing Premier $ 1,350 $ 900 $ 2,700 Deluxe 450 225 630 Super 900 450 1,800 Basic 90 45 180 Which product(s) should not be processed further?
Answer:
Which product(s) should not be processed further?
Deluxe products should not be processed further because the cost of further processing is higher than the additional benefits.
Explanation:
Product Sales value with Additional processing Sales value after
no further processing costs further processing
Premier $1,350 $900 $2,700
Deluxe $450 $225 $630
Super $900 $450 $1,800
Basic $90 $45 $180
further processing added value difference
costs
Premier $900 $1,350 $450
Deluxe $225 $180 ($180)
Super $450 $900 $450
Basic $45 $90 $45
In the current year, Riflebird Company had operating income of $220,000, operating expenses of $175,000, and a long-term capital loss of $10,000. How do Riflebird Company and Roger, the sole owner of Riflebird, report this information on their respective Federal income tax returns for the current year under the following assumptions
Note: If an amount is zero, enter "0".a. Riflebird Company is a proprietorship (Roger did not make any withdrawals from the business). Roger reports $ ________ net operating profit and $_______ long-term capital loss on his tax return.b. Riflebird Company is a C corporation (no dividends were paid during the year). Roger reports $__________ net operating profit and $________ long-term capital loss on his tax return.
Answer:
a. Riflebird Company is a proprietorship (Roger did not make any withdrawals from the business). Roger reports $45,000 net operating profit and $10,000 long-term capital loss on his tax return.
The IRS classifies sole proprietorships are pass through entities which are not taxed directly, instead their owners (proprietors) are taxed.
b. Riflebird Company is a C corporation (no dividends were paid during the year). Roger reports $35,000 net operating profit and $0 long-term capital loss on his tax return.
If Riflebird is classified as a corporation, then there is no such thing as capital gains or losses for corporations, all income and losses are considered operating income or losses.
Classy Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $ 80 per passenger. Classy Cruiseline's variable cost of providing the dinner is $ 40 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $ 360 comma 000 per month. The company's relevant range extends to 16 comma 000 monthly passengers. Use this information to compute the following: a. What is the contribution margin per passenger? b. What is the contribution margin ratio? c. Use the unit contribution margin to project operating income if monthly sales total 13 comma 000 passengers. d. Use the contribution margin ratio to project operating income if monthly sales revenue totals $ 775 comma 000.
Answer:
a. Contribution margin per passenger = $40
b. Contribution margin ratio = 50%
c. Operating Income = $160,000
d. Operating Income = $27,500
Explanation:
a. Contribution margin per passenger = Ticket price per passenger - Variable cost per passenger
Contribution margin per passenger = $80 - $40
Contribution margin per passenger = $40
b. Contribution margin ratio = Contribution margin per passenger / Ticket price per passenger
Contribution margin ratio = $40 / $80
Contribution margin ratio = 0.5
Contribution margin ratio = 50%
c. Contribution margin per passenger = $40
Sales (in units) = 13,000 Passengers
Total Contribution = $520,000
Fixed Costs = $360,000
Operating Income = $160,000
d. Sales revenue = $775,000
Contribution margin ratio = 50%
Total Contribution =$387,500 ($775,000 * 50%)
Fixed Costs = $360,000
Operating Income = $27,500
When analyzing stages of economic development in the United States, it appears that we have entered the "tertiary stage." This is a stage marked by a shift toward:_______
A) agriculture.B) manufacturing.C) services.D) population increases.
Answer:
C) services.
Explanation:
This is easily explained to be the stepping in to a tertiary stage. As it is explained that economic development analysis stages consists of different phases and levels. This services that is been denoted in this growth in the US plays a key role in financial services, humanity, health and other visible relevant parts which help in the building and aiding of economic growth of a country's economy.
Information technology and educational services in a product offering. These services are seen to boost different parts of an economy especially in developing countries is mostly concentrated in financial services, hospitality, retail, health and human services.
B2B co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $120,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 48,000 units of the equipment's product each year. The expected annual income related to this equipment follows.
Sales $75,000
Costs Materials, labor, and overhead (except depreciation on new equipment) 40,000
Depreciation on new equipment 10,000
Selling and administrative expenses 7,500
Total costs and expenses 57,500
Pretax income 17,500
Income taxes (40%) 7,000
Net income $10,500
Required:
a. Compute the payback period.
b. Compute the accounting rate of return for this equipment.
Answer:
a. 5.85 years
b. 17.5%
Explanation:
a. For the computation of payback period first we need to find out the annual cash flow which is shown below:-
Annual Cash Inflow = Sales - Material - Selling and Administrative Expenses - Income Tax
= $75,000 - $40,000 - $7,500 - $7,000
= $20,500
Payback period = Initial investment ÷ Annual cash flow
= $120,000 ÷ $20,500
= 5.85 years
b. The computation of the accounting rate of return is shown below:-
accounting rate of return = Net income ÷ Average investment
= $10,500 ÷ ($120,000 ÷ 2)
= $10,500 ÷ $60,000
= 17.5%
a. The payback period would be 5.85 years.
b. The accounting rate of return for the given equipment would be 17.5%.
The payback period is computed when the initial investment is divided by the annual cash flow of the business. Therefore, the annual cash flow would be derived as follows:
[tex]75,000 - $40,000 - $7,500 - $7,000\\=$20,500[/tex]
Here, material expense, selling and administrative expenses, and Income tax is all deducted from the total sales.
Now, the payback period is calculated below:
[tex]\frac{120,000}{20,500} \\=5.85[/tex]
Finally, the accounting rate of return computation would be:
[tex]\frac{10,500}{60,000} \\=0.175*100\\=17.5[/tex]
Here, the net income is divided by average investment, that is:
[tex]\frac{120,000}{2} \\=60,000[/tex]
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Lopez Corporation incurred the following costs while manufacturing its product:
Materials used in product $130,000 Advertising expense $46,100
Depreciation on plant $64,500 Property taxes on plant $20,000
Property taxes on store $7,600 Delivery expense $26,800
Labor costs of
assembly-line workers $120,900 Sales commissions $39,300
Factory supplies used $32,600 Salaries paid to sales clerks $54,900
Work in process inventory was $14,000 at January 1 and $16,700 at December 31.
Finished goods inventory was $61,800 at January 1 and $49,800 at December 31.
Required:
Compute cost of goods manufactured.
Cost of goods manufactured $
Answer:
Cost of goods manufactured is $365,300
Explanation:
Particulars Amount $
Materials used in product 130,000
Labor costs of assembly-line workers 120,900
250,900
Factory overheads
Depreciation on plant 64,500
Property taxes on plant 20,000
Factory supplies used 32,600
Add Work In Progress 14,000
Less: Work In Progress -16,700 114,400
Cost of goods manufactured $365,300
No Doubt Company includes one coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2020, No Doubt Company purchased 8,800 premiums at 80 cents each and sold 110,000 boxes of soap powder at $3.30 per box; 44,000 coupons were presented for redemption in 2014. It is estimated that 60% of the coupons will eventually be presented for redemption.
Instructions
Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2014.
Answer:
Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2014.
Explanation:
ere presented for redemption in 2014. It is estimated that 60% of the coupons will eventually be prese
The next dividend payment by Savitz, Inc., will be $2.12 per share. The dividends are anticipated to maintain a growth rate of 8 percent forever. If the stock currently sells for $43 per share, what is the required return?
Answer:
The answer is 12.9%
Explanation:
This question will be solved using the Dividend Discount Model(DDM).
Po = D1/r - g
Po is the current worth of stocks
D1 is the next dividend paid
r is the rate of return
g is the growth rate
$43 = $2.12/ r - 0.08
43r - 3.44 = 2.12
43r = 5.56
r = 5.56/43
=0.129
Expressed as a percentage:
The required return for Savitz, Inc., is therefore 12.9%
IBM lets frontline employees spend up to $5,000 to solve a customer problem on the spot, which is an example of which of the following steps that a marketing CEO can take to create a market- and customer-focused company?
A) Empower the employees.
B) Hire strong marketing talent.
C) Get outside help and guidance
.
D) Install a modern marketing planning system.
E) Develop strong in-house marketing training programs.
Answer:
A) Empower the employees.
Explanation:
Based on this information it can be said that the best step in order to create a market- and customer-focused company would be to empower the employees. Doing so will drastically increase employee productivity as they will be more willing to work, and strive to be as efficient as possible. This in term increases both market and customer focus overall as the employees will target customer satisfaction which leads to sales.