Answer:
Cameron Chemicals
Assembly Department:
a. Equivalent units: Materials Labor Overhead
Ending Work-in-Process (3,800) 3,040 2,280 2,280
b. Costs of ending inventory and the units transferred out:
Ending WIP:
Materials Labor Overhead
Cost per equivalent unit $14.40 $4.50 $7.90
Ending Work-in-Process (3,800) 3,040 2,280 2,280
Ending WIP = (3,040*$14.40 + 2,280*$4.50 + 2,280*$7.90) = $72,048
Units transferred out:
Materials Labor Overhead
Cost per equivalent unit $14.40 $4.50 $7.90
Completed and transferred out 25,100 25,100 25,100
Cost of units transferred out = 25,100*$14.40 + 25,100*$4.50 + 25,100*$7.90) = $672,680
c. Cost Reconciliation for January:
Materials Labor Overhead Total
Ending WIP = $43,776 $10,260 $18,012 $72,048
Units transferred out 361,440 112,950 198,290 $672,680
Total costs = $405,216 $123,210 $216,302 $744,728
Explanation:
a) Data and Calculations:
Total costs of beginning WIP and Units added = $691,870
Ending WIP 3,800 units, 80% complete (materials) and 60% complete (conversion)
Cost per equivalent unit:
Materials Labor Overhead
Cost per equivalent unit $14.40 $4.50 $7.90
Equivalent units: Materials Labor Overhead
Completed and transferred out 25,100 25,100 25,100
Ending Work-in-Process (3,800) 3,040 2,280 2,280
Total equivalent units = 28,140 27,380 27,380
External hiring reduces organizational diversity.
Answer:
The statement is not true.
Explanation:
External hiring does not reduce organizational diversity, it actually does the opposite: it increases organizational diversity.
External allows managers to include in their working teams new mebers who bring different knowledge and experience to the organization. In fact, one of the main motivations for managers to engage in external hiring is precisely increasing the variety of viewpoints inside the firm.
c. During a conversation with the credit manager, one of Tabor's sales representatives learns that a $1,281 receivable from a bankrupt customer has not been written off but was considered in the determination of the appropriate year-end balance of the Allowance for Bad Debts account balance. What is the effect of write-off on 2019 net income
Answer:
Tabor
The effect of the write-off of the bad debt or uncollectible is a reduction of the 2019 net income by $1,281.
Explanation:
The write-off of the bad debt also reduces the Allowance for Bad Debts account balance and the Accounts Receivable balance in the account of Tabor by $1,281. The purpose is to accurately report Tabor's net income by taking into account all expenses and losses, just as all revenues and incomes must be accounted for. This gives a more accurate picture of Tabor's financial performance during the current financial period.
In the Investment marketplace, Investors will likely accept a high-risk investment only if it promises
Select the best answer from the choices provided.
А.
real returns
B.
nominal returns
C. high returns
D. low, constant returns
Answer: C. high returns
Explanation: Risk-return tradeoff is an investing theory which indicates that as higher the risk, the greater the return reward. In order to determine an acceptable risk-return tradeoff, investors need to weigh several aspects, including total risk exposure, the ability to substitute missing capital, and more.
Damian invests $5,000 today in an account earning 6% per year. How much is the investment worth in 4 years
Answer:
$6,312
Explanation:
The amount that the investment will be worth in 4 years is known as the future value. We compound the Present Value using the interest rate to determine the future value.
Note : Here I will use a financial calculator to compute the future value
PV = $5,000
r = 6 %
P/yr = 1
n = 4
Pmt = $0
Fv = ?
Thus, the investment will be worth $6,312 in 4 years.
Sofia worries that if something happens to her husband and he dies, she will lose everything—their home, their cars, etc. Which type of business should Sofia consult to see if there is a plan available to cover her expenses if her husband dies?
A.
stock-held savings institution
B.
web-only financial institution
C.
mutual fund company
D.
life insurance company
Answer:
D
Explanation:
She is worried about losing everything and having life insurance is what everyone does when wanting to keep something after a love one dies.
Answer:
D.
life insurance company
Explanation:
D.
life insurance company
Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:
Engine parts $760,400
Shop direct labor 555,000
Shop and repair equipment depreciation 57,000
Shop supervisor salaries 158,500
Shop property taxes 28,800
Shop supplies 22,100
Advertising expense 15,200
Administrative office salaries 65,400
Administrative office depreciation expense 8,400
Total costs and expenses $1,670,800
The average shop direct labor rate is $15.00 per hour.
Required:
Determine the predetermined shop overhead rate per direct labor hour.
Answer:
See bekow
Explanation:
Number of direct labor hours = 555,000 / 15 = 37,000
Overhead cost = $57,000 + $158,500 + $28,800 + $22,100
A company is currently selling 10,000 units of product monthly for $40 per unit. The unit contribution margin is $27. The company believes that spending $50,000 per month on advertising will allow them to increase the selling price to $45 and that sales will increase by 750 units per month. The company should ______.
Answer:
The company should accept the idea reason been that the profit will increase by $24,000
Explanation:
Calculation to determine What should the company do
First step
Increased CM = [10,750 x (27+(40-45))]- (10,000 x 27)
Increased CM = [10,750 x(27+5)]- (10,000 x 27)
Increased CM = (10,750 x 32) - (10,000 x 27)
Increased CM = $344,000-$270,000
Increased CM = $74,000
Now let calculate the profit
Profit =$74,000-$50,000
Profit=$24,000 Increase
Therefore based on the above calculation The company should accept the idea reason been that the profit will increase by the amount of $24,000
Barbara's Bakery purchased three new 7-year assets last year. She chose NOT to use Section 179 immediate expensing or take bonus depreciation. The furnishings were purchased for $15,000 in April, the equipment for $6,000 in July, and the appliances for $40,000 in November. Using the appropriate MACRS depreciation tables in the Appendix, what amount of depreciation expense is allowable in the current (second) year of ownership?
a) $16,806
b) $14,939
c) $16,163
d) $16,072
Answer:
$ 4,748
Explanation:
The depreciation expenses = [tex]$(\$ 15000 \times 17.85 \%) + (\$ 6000 \times 10.71 \%)+(\$ 40000 \times 3.57 \%)$[/tex]
[tex]$= \$ 2677.50 + \$ 642.6 + \$ 1428$[/tex]
= $ 4748
Generally we have use half year convention for assets that are purchased during the year but here we used the mid quarter as of more than the 40% of the assets are being purchased in last quarter of the year
[tex]$=\frac{\text{assets purchased in last quarter}}{\text{total assets purchased in the year}} \times 100$[/tex]
[tex]$=\frac{40000}{61000} \times 100$[/tex]
[tex]$=65.57 \%$[/tex] (it is more than 40%)
Thus we can use the mid quarter mars depreciation rates for the 7 years assets that are purchased this year.
White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:
Department
Cutting Finishing
Direct labor-hours 6,100 72,000
Machine-hours 59,000 3,200
Total fixed manufacturing overhead cost $390,000 $443,000
Variable manufacturing overhead per machine-hour $3.00 -
Variable manufacturing overhead per direct labor-hour - $4.75
a. Compute the predetermined overhead rate to be used in each department.
b. Assume that the overhead rates you computed in (1) above are in effect. The job cost sheet for Job 203, which was started and completed during the year, showed the following:
Department
Cutting Finishing
Direct labor-hours 4 19
Machine-hours 80 4
Materials requisitioned $770 $360
Direct labor cost $36 $180
Compute the total manufacturing cost assigned to Jobe 203.
c. Would you expect substantially different amounts of overhead cost to be charged to some jobs if the company use a plantwide overhead rate based on direct labor-hours instead of using departmental rates?
Answer:
White Company
a. Predetermined overhead rates:
Departments Cutting Finishing
Total fixed manufacturing overhead cost $390,000 $443,000
Usage 6,100 3,200
Fixed overhead cost per unit $6.61 $6.15
Variable overhead cost per unit $3.00 $4.75
Predetermined overhead rates $9.61 $10.90
b. Job 203:
Department
Cutting Finishing
Direct labor-hours 4 19
Machine-hours 80 4
Materials requisitioned $770 $360
Direct labor cost $36 $180
Total manufacturing cost assigned to Job 203:
Cutting Finishing
Materials requisitioned $770 $360
Direct labor cost $36 $180
Manufacturing overhead $769 $207
Total manufacturing costs $1,575 $747
c. Yes. The amounts of overhead cost assigned to some jobs would be substantially different.
Explanation:
a) Data and Calculations:
Departments Cutting Finishing
Direct labor-hours 6,100 72,000
Machine-hours 59,000 3,200
Total fixed manufacturing overhead cost $390,000 $443,000
Variable manufacturing overhead per m/h $3.00 -
Variable manufacturing overhead per dlh - $4.75
Lauren Fine Clothing manufactures clothes for professional women. Lauren applies overhead at the rate of $15 per direct labor hour. During April, the company has budgeted 9,420 direct labor hours. At the end of April, 9,200 direct labor hours and $132,670 in manufacturing overhead had been incurred. To adjust for the difference between applied and incurred overhead, which journal entry would the firm record (using the pro-rated approach) given the following ending balances:
Answer: Debit MOH and credit cost if goods sold by 5330.
Explanation:
From the question, we are given the following information:
Overhead rate = $15 per direct labor hour
Direct labor hour incurred = 9,200
Manufacturing overhead cost incurred $132,670
We will then calculate the value for the applied manufacturing overhead which will be the direct labor hour incurred multiplied by the predetermined overhead rate. This will be:
= 9,200 x 15
= $138,000
Then, we have to calculate the overapplied manufacturing overhead which will be:
= $138,000 - $132,670
= $5,330
The journal entry will then be:
Debit: Manufacturing overhead (MOH) $5330
Credit: Cost of goods sold $5330