Answer:
a. Beginning Work-In Process inventory
Transferred in Costs = 100%
All the transferred in costs will be accounted for in beginning Work-In Process inventory
Direct Materials = 0%
Conversion costs are not up to 90% so no Direct materials will be added.
b. Ending Work-In Process Inventory
Transferred in Costs = 100%
All the transferred in costs will be accounted for in ending Work-In Process inventory
Direct Materials = 0%
Conversion costs are not up to 90% so no Direct materials will be added.
Nell and Kirby are in the process of negotiating their divorce agreement. What should be the tax consequences to Nell and Kirby if the following, considered individually, became part of the agreement?
a. In consideration for her one-half interest in their personal residence, Kirby will transfer to Nell stock with a value of $200,000 and $50,000 of cash. Kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. They purchased the residence three years ago for $300,000.
Nell's basis for the stock is _______$ X
Kirby's basis in the house is ______$ X
b. Nell will receive $1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be made to her estate.
The payments (qualify, do not qualify) as alimony and are (included in, excluded from) Nell's gross income as they are received.
c. Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life.
$ X per month is alimony that is (included in, excluded from) Nell's gross income, and the remaining $ X per month is considered(child support, property settlement) and is (nontaxable, taxable) to Nell.
Answer:
Explanation:
CHECK THE COMPLETE QUESTION BELOW;
The transfers of the stock and residence pursuant to the divorce are nontaxable to Nell
and Kirby. Nell assumes Kirby's basis in the stock of $150,000, and Kirby's basis in the house is $300,000. However, the $50,000 cash paid by Kirby will be alimony
unless the agreement specifies that the payment is "not alimony."
Nell and Kirby are in the process of negotiating their divorce agreement. What should be the tax consequences to Nell and Kirby if the following, considered individually, became part of the agreement?
A) In consideration for her one-half interest in their personal residence, Kirby will transfer to Nell stock with a value of $200,000 and $50,000 of cash. Kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. They purchased the residence three years ago for $300,000.
a) The transfer of the property is a _____event.
b) Nell's basis for the stock is $
c) Kirby's basis in the house is $
B). Nell will receive $1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be made to her estate.
The payments (qualify, do not qualify) as alimony and are (included in, excluded from) Nell's gross income as they are received.
C) Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life.
$ X per month is alimony that is (included in, excluded from) Nell's gross income, and the remaining $ X per month is considered(child support, property settlement) and is (nontaxable, taxable) to Nell.
ANSWER AND EXPLANATION:
A). In consideration for her one-half interest in their personal residence, Kirby will transfer to Nell stock with a value of $200,000 and $50,000 of cash. Kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. They purchased the residence three years ago for $300,000.
ANSWER:
a) The transfer of the property is a __non negotiatiable___event.
b) Nell's basis for the stock is $150,000
c) Kirby's basis in the house is $300,000
Hints;
✓ From the question, it was stated at the onset of their agreement that ""Nell and Kirby are in the process of negotiating their divorce agreement". Hence it is a non negotiatiable event.
✓ from the question as well, Nell assumes ""Kirby's basis in the stock of $150,000, and Kirby's basis in
the house is $300,000." Hence, the basis for Nell and Kirby are $150,000 and $300,000 respectively.
B). Nell will receive $1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be made to her estate.
The payments (qualify, do not qualify) as alimony and are (included in, excluded from) Nell's gross income as they are received.
ANSWER: The payments "Do NOT QUALIFY""as alimony and are "EXCLUDED FROM""Nell's gross income as they are received.
HINTS: As the payment is been received, it cannot be recorded as the Nell's gross profit ,and cannot be counted as alimony, reason behind this is that even if Nell should die,the payment continues.
Note that, alimony can be regarded as the payment that are to be paid from one of the couple to the other after divorce as part of finance support, usually ordered by court of law.
C). Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life.
$ X per month is alimony that is (included in, excluded from) Nell's gross income, and the remaining $ X per month is considered(child support, property settlement) and is (nontaxable, taxable) to Nell.
ANSWER: "$300 per month" is alimony that is" INCLUDED IN"" Nell's gross income, and the remaining $900 per month is considered "CHILD SUPPORT"child and is "NON TAXABLE to Nell.
HINTS:it was stated that Nell should receive $1200 monthly for Bobby's child support as well as alimony, out of this $900 goes for child support and $300 for alimony, provided that all the stated Condition stated in the question is followed duely.
You recommend the following: We should discontinue our policy of reimbursing employees for meals and incidental expenses. In place of this policy, we should provide $100 daily stipends. This recommendation is best classified as what
Answer:
the options are missing:
Specific, actionable, and justified
Specific but not actionable and not justified
Specific and actionable but not justified
The answer is:
Specific, actionable, and justifiedThis proposition is very specific (it is the only thing that all three options agree upon).
In order for a recommendation to be actionable, it must be relevant and feasible.
This recommendation is feasible since 83% of the employees prefer the $100 stipend. It is also relevant because the company can save approximately $61 per employee per day.
This $61 savings per day per employee also makes this proposition justifiable since the company's employees travel a lot.
Reimbursement is the payment that the company does to its employees for their service. The proposal is Specific, actionable, and justified.
What is Reimbursement ?It is the money paid to the employees/customer/parties for their services provided. It's a business expense and paid after complying with the tax rules.
The proposal is Specific, actionable, and justified.
The recommendation should be feasible to be actionable. It is feasible because 83% of employees agreed to the $100 stipend daily for meals and incidental expenses. And it is at the same time beneficial to the company, as it would save $61 per employee per day.
Therefore, it can be said that the above explanation aptly describes the statement.
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Daily demand for a certain product is normally distributed with a mean of 138 and a standard deviation of 13. The supplier is reliable and maintains a constant lead time of 7 days. The cost of placing an order is $17 and the cost of holding inventory is $0.40 per unit per year. There are no stock-out costs, and unfilled orders are filled as soon as the order arrives. Assume sales occur over 358 days of the year.
Your goal here is to find the order quantity and reorder point to satisfy a 73 percent probability of not stocking out during the lead time.
a. To manage inventory, the company is using
Continuous review system
Periodic review system
b. Find the order quantity. (Round your answer to the nearest whole number.)
Order quantity books
c. Find the reorder point. (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.)
Reorder point
Answer:
A. Continuous review system
B. Order quantity = 2,049 Books
C. Reorder point=987
Explanation:
a. To manage inventory, the company is using CONTINUOUS REVIEW SYSTEM
b. Calculation to find the order quality
Using this formula
Order quantity = √((2DS)/H)
Let plug in the morning
Order quantity=√ ((2 x 49,404 x 17)/0.40)
Order quantity = 2,049 Books
Calculation for annual demand
Annual demand=138*358 days
Annual demand=49,404
C. Calculation for reorder point
First step is to find the σL
73 % S.L. - z = 0.613
Using this formula to find the σL
σL = (Lσ^2)
Let plug in the formula
σL=√(7(13)^2)
σL= 34.39
Second step is to find the Reorder point using this formula
Reorder point = d bar(L) + zσL
Let plug in the formula
Reorder point = (138)(7) + 0.613(34.39)
Reorder point = 966+21
Reorder point=987
Darby Company, operating at full capacity, sold 500,000 units at a price of $94 per unit during the current year. Its income statement is as follows:
Sales $47,000,000
Cost of goods sold 25,000,000
Gross profit $22,000,000
Expenses:
Selling expenses $4,000,000
Administrative expenses 3,000,000
Total expenses 7,000,000
Income from operations $15,000,000
The division of costs between variable and fixed is as follows:
Variable Fixed
Cost of goods sold 70% 30%
Selling expenses 75% 25%
Administrative expenses50% 50%
Management is considering a plant expansion program for the following year that will permit an increase of $3,760,000 in yearly sales. The expansion will increase fixed costs by $1,800,000 but will not affect the relationship between sales and variable costs.
Required:
1. Determine the total variable costs and the total fixed costs for the current year.
Total variable costs $_____
Total fixed costs $_____
2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.
Unit variable cost $_____
Unit contribution margin $_____
3. Compute the break-even sales (units) for the current year.
4. Compute the break-even sales (units) under the proposed program for the following year.
5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $15,000,000 of income from operations that were earned in the current year.
6. Determine the maximum income from operations possible with the expanded plant.
7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?
8. Based on the data given, would you recommend accepting the proposal?
a. In favor of the proposal because of the reduction in break-even point.
b. In favor of the proposal because of the possibility of increasing income from operations.
c. In favor of the proposal because of the increase in break-even point.
d. Reject the proposal because if future sales remain at the current level, the income from operations will increase.
e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales.
Answer:
1. Determine the total variable costs and the total fixed costs for the current year.
Total variable costs = $17,500,000 + $3,000,000 + $1,500,000 = $22,000,000 Total fixed costs = $10,000,0002. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.
Unit variable cost = $22,000,000 / 500,000 = $44 Unit contribution margin = $94 - $44 = $503. Compute the break-even sales (units) for the current year.
break even point = $10,000,000 / $50 = 200,000 units4. Compute the break-even sales (units) under the proposed program for the following year.
break even point = $11,800,000 / $50 = 236,000 units5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $15,000,000 of income from operations that were earned in the current year.
units = ($11,800,000 + $15,000,000) / $50 = 536,000 units6. Determine the maximum income from operations possible with the expanded plant.
total units sold 500,000 + 40,000 = 540,000total contribution margin = 540,000 x $50 = $27,000,000operating income = $27,000,000 - $11,800,000 = $15,200,0007. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?
operating income = (500,000 x $50) - $11,800,000 = $13,200,000represents a decrease of $15,000,000 - $13,200,000 = $1,800,0008. Based on the data given, would you recommend accepting the proposal?
b. In favor of the proposal because of the possibility of increasing income from operations.On January 1, Merry Walker established a catering service. Listed below are accounts to use for transactions (a) through (f), each identified by a number. Following are the transactions that occurred in Walker's first month of operations. You need to indicate for each transaction the accounts that should be debited and credited by selecting the account number(s).
1. Cash
2. Accounts Receivable
3. Supplies
4. Prepaid Insurance
5. Equipment
6. Truck
7. Notes Payable
8. Accounts Payable
9. Merry Walker, Capital
10. Merry Walker, Drawing
11. Fees Earned
12. Wages Expense
13. Rent Expense
14. Utilities Expense
15. Truck Expense
16. Miscellaneous Expense
17. Insurance Expense
Answer:
a. Recorded jobs completed on account and sent Invoices to customers.
Account to be Debited ⇒ 2. Accounts Receivable
Account to be Credited ⇒ 11. Fees Earned
The fees are to be credited as it is revenue. The amount will be debited to Accounts receivables because the customers owe the company.
b. Received an invoice for truck expense to be paid in February.
Account to be Debited ⇒ 15. Truck Expense
Account to be Credited ⇒ 8. Accounts Payable
This is an expense so it is debited as expenses are debited when they increase. As it is to be paid in future, it is a liability and will be credited to Payables.
c. Paid utilities expense
Account to be Debited ⇒ 14. Utilities Expense
Account to be Credited ⇒ 1. Cash
As explained, this is an expense and will have to be debited. It was paid with cash which will reduce the cash balance so Cash should be credited.
d. Received cash from customers on account
Account to be Debited ⇒ 1. Cash
Account to be Credited ⇒ 2. Accounts Receivable
Debtors are paying the company cash which will increase the cash balance so Cash is debited. The Receivables will be credited to reflect that they are decreasing from the debt settlement.
e. Paid Employees Wages
Account to be Debited ⇒ 12. Wages Expense
Account to be Credited ⇒ 1. Cash
As explained, this is an expense and will have to be debited. It was paid with cash which will reduce the cash balance so Cash should be credited.
f. Withdrew cash for personal use.
Account to be Debited ⇒ 10. Merry Walker, Drawing
Account to be Credited ⇒ 1. Cash
The owner withdrew cash for personal use and so this is sent to the Drawings account. It is debited to reflect that it is reducing capital. Cash will be credited as it is decreasing.
Three explorers are getting kidnapped by an evil tribe deep in the jungle, and their life now depends on their ability to correctly answer the following challenge the evil tribe's chief has for them. The explorers are tied to three trees facing each other and are presented with the chief's 5 wives: 3 brunettes, and 2 blondes. The three explorers are now blindfolded, and the chief picks three of his five wives to stand behind the trees the explorers are tied to, one behind each tree. The remaining two wives disappear from view. Then the blindfolds come off, and each explorer is able to see the two wives that are standing behind his two colleagues, but not the one behind himself. Each explorer now has up to 10 minutes time to think, after which each has to correctly answer what hair color the wife has that is standing behind him, or lose his life. When you, as one of the three explorers, gain your sight after the blindfold comes off, you see two brunettes standing behind your two colleagues. And now your life depends on figuring out who is behind you: a blonde or a brunette?
Answer:
Brunette
Explanation:
Originally there were 3 brunettes and 2 blondes. If once you are able to see, you realize that 2 brunettes are standing behind your friends, that means that behind you there could be one of two blondes or the remaining brunette.
The possibility of the wife behind you being a blonde is 2/3 or 67%, while the chance of her being brunette is only 33%. But this question is not about probability, instead it is about game strategy. I would bet that the wife behind me is a brunette.
Imagine that the two women that you saw were blondes, then you would immediately say brunette. Even if you only saw one blonde wife, your obvious choice would be brunette. This applies to all 3 friends and the chief is gambling against you all 3. He will not give any of you any type of advantage.
"The​ ________ includes all international economic transactions with income or payment flows occurring within the year."
Answer:
Current account
Explanation:
The current account is the account that involves all the transactions deals in an economic way and have international transactions. This shows the income generated and the flows of payment arise within the year or for the present period.
It could be in terms of trading of goods, trading of services, income, present transfers
Therefore the given situation represent the current account
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $360,000. During 2021, Halifax sold merchandise on account for $12,100,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $594,000 in sales for credit, with $328,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year.
Required:
1. Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 of merchandise that was sold during 2021, and (c) adjust the refund liability to its appropriate balance at year-end.
2. What is the amount of the year-end refund liability after the adjusting entry is recorded?
1a. Record the actual sales return of merchandise sold prior to 2021.
1b. Record the cost of merchandise returned for goods sold prior to 2021.
1c. Record the actual sales return of merchandise sold during 2021.
1d. Record the cost of merchandise returned for goods sold during 2021.
1e. Record the year-end adjusting entry for estimated returns.
1f. Record the adjusting entry for the estimated return of merchandise to inventory.
3. What is the amount of the year-end refund liability after the adjusting entry is recorded?
Answer:
Halifax Manufacturing
a. Record the actual sales return of merchandise sold prior to 2021.
Debit Refund Liability $328,000
Credit Accounts Receivable $328,000
To record actual returns for sales prior to 2021.
1b. Record the cost of merchandise returned for goods sold prior to 2021.
Debit Inventory $229,600
Credit Estimated Inventory Returns $229,600
To record the cost of merchandise returned for goods sold prior to 2021.
1c. Record the actual sales return of merchandise sold during 2021.
Debit Sales Returns $266,000
Credit Accounts Receivable $266,000
To record actual returns for the current year.
1d. Record the cost of merchandise returned for goods sold during 2021.
Debit Inventory $186,200
Credit Cost of Goods sold $186,200
To record the cost of goods returned for sales during the year.
1e. Record the year-end adjusting entry for estimated returns.
Debit Sales Returns $591,700
Credit Refund Liability $591,700
To record sales returns adjusting entry for the current year.
1f. Record the adjusting entry for the estimated return of merchandise to inventory.
Debit Estimated Inventory Returns $414,190
Credit Cost of goods sold $414,190
To record the adjusting entry for the estimated inventory returns.
3. What is the amount of the year-end refund liability after the adjusting entry is recorded?
= $623,700
Explanation:
a) Data and Calculations:
Refund liability (beginning balance) = $360,000
Sales = $12,100,000
Cost of merchandise = $8,470,000 (70% * $12,100,000)
Actual returns during the year = $594,000
Returns for prior years = 328,000
Returns for current year = 266,000
Estimated sales returns allowance = 5% for year-end adjusting entry.
Refund liability (beginning balance) = $360,000
Actual return for prior years = (328,000)
Allowance for current year = 591,700
Refund liability (ending balance) = $623,700
Kim Co. purchased goods with a list price of $175,000, subject to trade discounts of 20% and 10%, with no cash discounts allowable. How much should Kim Co. record as the cost of these goods
Answer:
the cost of these goods is $126,000
Explanation:
The computation of the cost of these goods is shown below:
= List price × (1 - first discount rate) × (1 - second discount rate)
= $175,000 × (1 - 0.20) × (1 - 0.10)
= $126,000
Hence, the cost of these goods is $126,000
We simply applied the above formula so that the correct amount could come
The same is to be relevant
The cost of goods sold is the value of goods at which they are made available to the customers at an affordable price. The costs are the particular term used for the product's value to specify that the goods and services when availed to the customers carries a value or the price.
The computation of the cost of these goods is shown below:
[tex]\begin{aligned}\text{Cost of Goods}&= \text{list price} \times (1 - \text{first discount rate}) \times (1 - \text{second discount rate})\\&=\$175,000 \times (1 - 0.20)\times(1 - 0.10)\\& = \$126,000\end{aligned}[/tex]
Hence, the cost of these goods is $126,000
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Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $56,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $20,000. In year 1, Beau Geste incurs a loss of $187,500 and does not make any distributions to the partners.
-In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $67,800. This includes $13,800 of passive income from other passive activities.
-In year 2, Beau Geste earns income of $38,400. In addition, Molly contributes an additional $31,380 to Beau Geste during year 2. Molly's AGI in year 2 is $71,700 (excluding any income or loss from Beau Geste). This amount includes $10,160 in income from her other passive investments.
Based on the above information, complete the following tables: (Leave no answers blank. Enter zero if applicable.) What are the cumulative total passive suspended losses at the end of year 2?
Answer:
$20,770
Explanation:
Share of passive loss in year 1
[187,500 × 30%]
$56,250
Less: Passive income from other activities
($13,800)
Suspended loss in year 1
$42,450
Less: Share of passive income from Beau Geste in year 2 (38,400 × 30%).
($11,520)
Less passive income from other activities
($10,160)
Cumulative total passive suspended losses at the end of year 2.
$20,770
Many assets provide a series of cash inflows over time; and many obligations require a series of payments. When the payments are equal and are made at fixed intervals, the series is an annuity. There are three types of annuities: (1) __________ (2)_________, and (3) __________-. One can find an annuity's future and present values, the interest rate built into annuity contracts, and the length of time it takes to reach a financial goal using an annuity.
Answer:
Fixed annuities
Variable annuities
Indexed annuities
Explanation:
Annuities are defined as contract that pays out regular amounts over time at a particular interest rate.
Usually there is an initial investment of a lumps sum or a series of deposits.
Annuities are classified based on level of risk and payout potential into 3:
- Fixed annuity give out a fixed guaranteed payout amount. The risk is low but the payout is low. Slightly above certificate of deposits.
- Variable annuity is one that gives room for a higher payout but risk is also higher. A set of mutual funds are invested in and payout is dependent on how they perform.
- Indexed annuity gives higher return that is tied to the performance of an index like the S&P 500. The risk is lower than that of variable annuity
Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms:
Silver Enterprises
Current assets $ 10,000
Current liabilities $ 7,840
Other assets 3,100
Long-term debt 5,110
Net fixed assets 17,300
Equity 17,450
Total $ 30,400
Total $ 30,400
All Gold Mining
Current assets $ 2,920
Current liabilities $ 2,620
Other assets 1,380
Long-term debt 0
Net fixed assets 6,110
Equity 7,790
Total $ 10,410
Total $ 10,410
Construct the balance sheet for the new corporation if the merger is treated as a purchase for accounting purposes. The market value of All Gold Mining's fixed assets is $7,510; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $14,660 in new long-term dept to finance the acquisition.
Answer:
Silver Enterprises Post Merger Balance Sheet
Current Assets 12,920 Current liabilities 10,460
Other Asset 4,480 Long-term debt 19,770
Net Fixed Asset 24,810 Equity 17,450
Goodwill 5,470
$47,880 $47,680
Explanation:
Current assets = 10,000 + 2,920 = 12,920
Other assets = 3,100 + 1,380 = 4,480
Current liabilities = 7,840 + 2,620 = 10,460
Net fixed assets = 17,300 + 7,510= 24,810
Long-term debt = 5,110 + 14,660 = 19,770
Equity = $17,450
Definition of economic costs
Darnell lives in Philadelphia and runs a business that sells pianos. In an average year, he receives $842,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $452,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $38,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Darnell does not operate this piano business, he can work as an accountant and receive an annual salary of $48,000 with no additional monetary costs. No other costs are incurred in running this piano business.
Identify each of Darnell's costs in the following table as either an implicit cost or an explicit cost of selling pianos.
Implicit Cost
Explicit Cost
The wholesale cost for the pianos that Darnell pays the manufacturer
The salary Darnell could earn if he worked as an accountant
The wages and utility bills that Darnell pays
The rental income Darnell could receive if he chose to rent out his showroom
Complete the following table by determining Darnell's accounting and economic profit of his piano business.
Profit
(Dollars)
Accounting Profit
Economic Profit
If Darnell's goal is to maximize his economic profit, he( should, should not) stay in the piano business because the economic profit he would earn as an accountant would be $______.
Answer:
Definition of Economic Costs
Implicit and Explicit Costs:
The wholesale cost for the pianos that Darnell pays the manufacturer Explicit Cost
The salary Darnell could earn if he worked as an accountant Implicit Cost
The wages and utility bills that Darnell pays Explicit Costs
The rental income Darnell could receive if he chose to rent out his showroom Implicit Cost
Complete the following table by determining Darnell's accounting and economic profit of his piano business.
Profit
(Dollars)
Accounting Profit $89,000
Economic Profit $3,000 ($89,000 - 86,000)
If Darnell's goal is to maximize his economic profit, he( should, should not) stay in the piano business because the economic profit he would earn as an accountant would be $__86,000____.
This economic profit includes the rental and salary income that Darnell can earn.
Explanation:
a) Data:
Sales Revenue = $842,000
Cost of goods sold 452,000
Wages & Utilities = 301,000
Opportunity cost of showroom = $38,000
Opportunity cost of employment = $48,000
Total opportunity cost = $86,000
Profit (Dollars)
Sales Revenue = $842,000
Cost of goods sold 452,000
Gross profit $390,000
Wages & Utilities = 301,000
Net Income $89,000
Opportunity cost of showroom = $38,000
Opportunity cost of employment = $48,000
Total opportunity cost = $86,000
Wainwright Corporation owns and operates a wholesale warehouse.
The following transactions occurred during March 2016:
1. Issued 30,000 shares of capital stock in exchange for $300,000 in cash.
2. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed.
3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000.
5. Paid $5,000 in rent on the warehouse building for the month of March.
6. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2016.
7. Paid $70,000 on account for the merchandise purchased in 3.
8. Collected $55,000 from customers on account.
9. Recorded depreciation expense of $1,000 for the month on the equipment.
Required:
1.Analyze each transaction and classify each as a financing, investing and/or operating activity.
A transaction can represent more than one type of activity.
Also indicate the cash effect of each, if any.
Activities:
Transaction Financing Investing Operating
1
2
3
4
5
6
7
8
9
Answer:
Operating transactions
-$5000
-$6000
-$70000
$55000
Total = -$26000
Financing transactions
+ $300000
+ $30000
Total = $330000
Investing transactions
-$10000
- $30000
Explanation:
Operating transactions
-$5000
-$6000
-$70000
$55000
Total = -$26000
Financing transactions
+ $300000
+ $30000
Total = $330000
Investing transactions
-$10000
- $30000
What are the key factor(s) for success in this industry/market
Answer:
Strategic Focus (Leadership, Management, Planning) People (Personnel, Staff, Learning, Development) Operations (Processes, Work) Marketing (Customer Relations, Sales, Responsiveness)
Explanation:
Whether you're operating an established small business or just starting out, an effective, ongoing marketing strategy is vital. But marketing without a plan will not only waste time and money; it may alienate your customers and stall the growth of your business.
To match your marketing strategies to the needs and expectations of your target customers and ensure that your business continues to grow, start by identifying your key success factors.
Key success factors (or KSF) are business strategies that are critical to a successful relationship with your customers.
Key success factors are decided by the needs and preferences of your market and customers, not by your business. However, consumers aren't going to tell you what those KSF are. Discovering your key success factors requires researching your customers to understand who they are, what they want from your company, and what prompts them to make a purchase.
A business generally has three to five key success factors that it needs to focus on to achieve its goals. Key success factors also may relate to areas of weakness that you must overcome to create a stronger relationship with your customers.
Once you understand and begin using your key success factors, they become part of your brand and business style.
Assume the bonds below have the same term and principal and that the state or local government that issues the municipal bond has a good credit rating. Which list has bonds correctly ordered from the one that pays the highest interest rate to the one that pays the lowest interest rate
Answer:
b. corporate bond, U.S. government bond, municipal bond
Explanation:
If we assume that the bonds have the similar time period and the principal amount so the bond that pays the highest interest to the bond that pays the lowest interest rate is described below:
The ranking can be done
Corporate bond - highest interest rates
Municipal bonds - lowest interest rates
The same is to be considered
Therefore the option b is correct
Pargo Company is preparing its master budget for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 1,900,000 units. Quarterly sales are 22%, 27%, 25%, and 26%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $45 per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be 10% higher than the budgeted sales for the first quarter of 2020.
Production Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $11 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2021 are 495,000 pounds me Prepare the sales, production, and direct materials budgets by quarters for 2020
Answer:
Pargo Company
1. Sales Budget
Quarterly sales 1st 2nd 3rd 4th 2021
Sales 22% 27% 25% 26%
Sales in quantity 418,000 513,000 475,000 494,000 459,800
Sales price $40 $40 $40 $45 $45
Sales value ('000) $16,720 $20,520 $19,000 $22,2300 $20,691
2. Production Budget
Quarterly production 1st 2nd 3rd 4th 2021
Sales in quantity 418,000 513,000 475,000 494,000 459,800
Ending inventory 128,250 118,750 123,500 114,950
Beginning inventory 0 128,250 118,750 123,500
Total Production 546,250 503,500 479,750 485,450
3. Direct Materials Budget
Quarterly production 1st 2nd 3rd 4th
Total Production (units) 546,250 503,500 479,750 485,450
Materials per unit (pounds)1,092,500 1,007,000 959,500 970,900
Ending Inventory 100,700 95,950 97,090 49,500
Beginning Inventory 109,250 100,700 95,950 97,090
Purchases 1,083,950 1,002,250 960,640 923,310
Cost of purchases $11,923,450 $11,024,750 $10,567,040$10,156,410
Explanation:
a) Data and Calculations:
Expected sales = 1,900,000
Quarterly sales 1st 2nd 3rd 4th 2021
Sales 22% 27% 25% 26%
Sales in quantity 418,000 513,000 475,000 494,000 459,800
Sales price $40 $40 $40 $45 $45
Sales value ('000) $16,720 $20,520 $19,000 $22,2300 $20,691
Ending inventory 128,250 118,750 123,500 114,950 units
Every 6 months, Leo Perez takes an inventory of the consumer debts he has outstanding. His latest tally shows that he still owes $4,250 on a home improvement loan (monthly payments of $100); he is making $50 monthly payments on a personal loan with a remaining balance of $825; he has a $1,500, secured single- payment loan that's due late next year; he has a $70,000 home mortgage on which he's making $850 monthly payments; he still owes $12,500 on a new car loan (monthly payments of $550); and he has a $1,200 balance on his Mastercard (minimum payment of $50), a $50 balance on his Shell credit card (balance due in 30 days), and a $500 balance on a personal line of credit ($90 monthly payments).
a. Use Worksheet to prepare an inventory of Leo's consumer debt.
Type of Consumer Debt Creditor Currently Monthly Latest Balance Due
Payment
Auto loans
Personal installment loans
Home improvement loan
Single-payment loans
Credit cards Mastercard
(retail charge cards, bank
cards, T&E Shell cards, etc.)
Personal line of credit $ $
Totals $
b. Find his debt safety ratio, given that his take-home pay is $2,000 per month. Round the answer to 1 decimal place. %
c. Would you consider this ratio to be good or bad?
Answer:
The answer is "87%".
Explanation:
Please find the attached file.
Cari created a list of ways to reduce her spending. Which activity should she omit from her list? Choose the correct answer below. use less expensive places for services such as haircuts wear items of clothing for an extra season buy store brands instead of name brands for food and other items rely on friends to treat me when I am out of money
Answer:
b
Explanation:
The difference between a firm's future cash flows if it accepts a project and the firm's future cash flows if it does not accept the project is referred to as the project's: Group of answer choices
Answer:
Incremental cash flows.
Explanation:
An incremental cash flow can be defined as the additional cash flow with respect to operating activities or costs that is generated when an organization from executing a new project entirely.
Hence, the difference between a firm's future cash flows if it accepts a project and the firm's future cash flows if it does not accept the project is referred to as the project's Incremental cash flows.
For example, when Toyota purchase Uber transport.
Sunset Products manufactures skateboards. The following transactions occurred in March. Purchased $24,500 of materials on account. Issued $1,450 of supplies from the materials inventory. Purchased $25,900 of materials on account. Paid for the materials purchased in transaction (1) using cash. Issued $30,900 in direct materials to the production department. Incurred direct labor costs of $29,500, which were credited to Wages Payable. Paid $22,400 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop. Applied overhead on the basis of 120 percent of direct labor costs. Recognized depreciation on manufacturing property, plant, and equipment of $5,900.
The following balances appeared in the accounts of Sunset Products for March:
Beginning Ending
Materials Inventory $ 13,500 ?
Work-in-Process Inventory 24,750 ?
Finished Goods Inventory 97,500 $ 54,750
Cost of Goods Sold 120,000
Required:
a. Prepare journal entries to record the transactions. (If o entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Transactions General Journal Debit Credit
1.
2.
3.
4.
5.
6.
7.
8.
9.
b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
Materials Inventory
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Work in Progress Inventory
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Manufacturing Overhead Control
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Applied Manufacturing Overhead
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Accounts Payable
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Cash
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Wages Payable
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Accumulated Depreciation-Property, Plant, and Equipment
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Finished Goods Inventory
Beg. bal. ___________ ____________
Goods Completed ___________ ____________ Transfer to Cost of Goods Sold
End. bal. ___________ ____________
Cost of Goods Sold
Beg. bal. ___________ ____________
Finished Goods Inventory ___________ ____________
End. bal. ___________ ____________
Answer:
Sunset Products
a) Journal Entries:
Transactions General Journal Debit Credit
Materials Inventory $24,500
Accounts Payable $24,500
To record the purchase of materials on account.
Manufacturing Overhead $1,450
Materials Inventory $1,450
To record the issue of supplies.
Materials Inventory $25,900
Accounts Payable $25,900
To record the purchase of materials on account.
Accounts Payable $24,500
Cash Account $24,500
To record the payment on account.
Work-in-Process Inventory $30,900
Materials Inventory $30,900
To record the issue of direct materials to the production department.
Work-in-Process Inventory $29,500
Factory Wages $29,500
To record direct labor costs to work in process.
Manufacturing Overhead $22,400
Cash Account $22,400
To record the payment for utilities and other expenses.
Work-in-Process Inventory $35,400
Manufacturing Overhead $35,400
To apply overhead to work in process.
Manufacturing Overhead $5,900
Depreciation Expense $5,900
To recognize depreciation on property, plant, and equipment.
Manufacturing overhead applied $29,750
Manufacturing overhead $29,750
To transfer manufacturing overhead to the overhead applied account.
b) T-accounts:
Materials Inventory
Transaction Details Debit Credit
Beginning balance $ 13,500
Accounts Payable 24,500
Manufacturing overhead $1,450
Accounts Payable 25,900
Work-in-Process Inventory 30,900
Ending balance $31,550
Work-in-Process Inventory
Transaction Details Debit Credit
Beginning balance $24,750
Materials Inventory 30,900
Factory Wages 29,500
Manufacturing Overhead 35,400
Finished Goods Inventory $71,600
Ending balance 54,200
Finished Goods Inventory
Transaction Details Debit Credit
Beginning balance $97,500
Work-in-Process 71,600
Cost of goods sold $114,350
Ending balance 54,750
Cost of Goods Sold
Transaction Details Debit Credit
Beginning balance $120,000
Overapplied overhead $5,650
Ending balance 114,350
Manufacturing Overhead Control Account
Transaction Details Debit Credit
Materials Inventory $1,450
Cash Account 22,400
Depreciation expense 5,900
Manufacturing overhead applied $29,750
Manufacturing Overhead Applied
Transaction Details Debit Credit
Work in Process $35,400
Manufacturing overhead $29,750
Overapplied overhead 5,650
Accounts Payable
Transaction Details Debit Credit Materials Inventory $24,500
Materials Inventory 25,900
Cash Account $24,500
Cash Account
Transaction Details Debit Credit
Accounts Payable $24,500
Manufacturing Overhead 22,400
Explanation:
a) Data and Calculations:
Accounts balances of Sunset Products for March:
Beginning Ending
Materials Inventory $ 13,500 ?
Work-in-Process Inventory 24,750 ?
Finished Goods Inventory 97,500 $ 54,750
Cost of Goods Sold 120,000
Crawford Corporation incurred the following transactions:1. Purchased raw materials on account $47,000.2. Raw Materials of $44,200 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,300 was classified as indirect materials.3. Factory labor costs incurred were $60,100, of which $51,000 pertained to factory wages payable and $9,100 pertained to employer payroll taxes payable.4. Time tickets indicated that $54,400 was direct labor and $5,700 was indirect labor.5. Manufacturing overhead costs incurred on account were $83,600.6. Depreciation on the company's office building was $8,600.7. Manufacturing overhead was applied at the rate of 160% of direct labor cost.8. Goods costing $94,800 were completed and transferred to finished goods9. Finished goods costing $81,800 to manufacture were sold on account for $110,300.Required:Journalize the above transactions.
Answer:
Crawford Corporation
General Ledger
1.
Raw Materials $47,000 (debit)
Account Payable $47,000 (credit)
2.
Work In Process : Direct Materials $36,900 (debit)
Work In Process : Indirect Materials $7,300 (debit)
Raw Materials $44,200 (credit)
3.
Work In Process $51,000 (debit)
Salaries Expenses $9,100 (debit)
Salaries Payable $60,100 (credit)
4.
Work In Process : Direct Labor $54,400 (debit)
Work In Process : Indirect Labor $5,700 (debit)
Salaries Expenses $9,100 (debit)
Salaries Payable $60,100 (credit)
5.
Overheads $83,600 (debit)
Accounts Payable $83,600 (credit)
6.
Depreciation Expense - Building $8,600 (debit)
Accumulated Depreciation - Buildings $8,600 (credit)
7.
Work In Process $87,040 (debit)
Overheads $87,040 (credit)
8.
Finished Goods $94,800 (debit)
Work In Process $94,800 (credit)
9.
Accounts Receivable $110,300 (debit)
Cost of Goods Sold $81,800 (debit)
Sales Revenue $110,300 (credit)
Finished Goods $81,800 (credit)
Explanation:
See the Journal entries for Crawford Corporation and their respective transaction number recorded above.
Which of the following changes in retained earnings during a period will be reported in the financing activities section of the statement of cash flows? Declaration and payment of a cash dividend during the period. Net income for the period.
Answer:
Net income for the period.
Explanation:
the statement of cash flow is a financial statement which gives a summary of amount of money or money equivalents that are going into a company and also going out of the company. it gives a measurement of how well the cash position is being managed by the company. the net income for the period is going to be reported in the section called financing activities.
What is the situation when a home currency purchases more goods and services at home than abroad when converted to a foreign currency
Answer:
The domestic currency is undervalued .
Explanation:
In the situation when a home currency purchases more goods and services at home than abroad when converted to a foreign currency, then The domestic currency is undervalued
A currency is undervalue whenever the "exchange rate" value to other currency arround the world is comparatively low. Under the economic condition the whenever the consumer purchase goods from foreign countries they tends to pay high because the value of that home currency is weak and low compare to the foreign currency. Most home currency are usually rate against US dollar.
A company issues $50 million of bonds at par on January 1, 2018. The bonds pay 10% interest semi-annually on 12/31 and 6/30 and mature in 20 years. The journal entry when the bonds are sold is:
Answer: Please see explanation for answer
Explanation:
Journal entry to record sale of bonds
Account titles Debit Credit
Cash $50,000,000
Bonds Payable $50,000,000
On December 31, 2021, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $15 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $13 million. The loss from operations of the segment during 2021 was $4.8 million. Pretax income from continuing operations for the year totaled $7.8 million. The income tax rate is 25%.
Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions.)
Answer:
Income from continuing operations before income taxes 7,800,000
Less Income tax expenses (7,800,000*25%) (1,950,000)
Income from continuing operations 5,850,000
Discontinued operations:
Loss from operations of discontinued component (2,800,000)
Income tax benefit 700,000
Loss on discontinued operations (2,100,000)
Net Income (loss) 3,750,000
Working
Loss from operations of discontinued component
= Gain from sale of semiconductor business - loss from operations of the segment
= (15 - 13 ) - 4.8
= -$2.8 million
Income tax benefit
= 2,800,000 * 25%
= $700,000
All the following are characteristics of a tradable market except a. Easy Access b. Parity c. Liquidity d. Fungibility e. Lack of a Trend
Answer:
e. Lack of a Trend
Explanation:
The tradable market is the market in which the trading is to be done
It involves various attributes like parity, liquidity, fungibility but does not involve the lacking of a trend
Therefore according to the given situation, the option e is correct as it does not come under the tradable market characteristics
Therefore option e is right and the same is to be considered
Assignment 3 Suggested Length: 750 to 1000 words Ethical Theories to Apply: Golden Rule and Virtue Ethics
1. Task You work in the Ethics Department for ABC Company (ABC). Your department is dedicated to advising its employees about their ethical obligations in the corporate setting. You are an internal consultant who provides advice and most importantly, recommendations for action to employees of the firm. All communications you receive in this capacity are confidential. Luke, an employee of ABC, comes to you with the following scenario and asks for your advice. He wants to fully consider the situation. Your task is to advise and recommend a course of action based on the specified ethical lenses and facts as given. Below are the facts that Luke provides to you. ***** Luke has been asked to work on a project that involves developing land recently purchased by ABC to build an adult entertainment retail store. According to the plan, the land is located on the corner of the neighborhood where Owen, Luke’s brother, lives. Luke knows that as soon as the plans for the store are made public, property values for the surrounding neighborhood will decrease significantly. ABC plans to publicly announce the project one month from today. Luke is concerned about his obligations of confidentiality to his company. However, Luke is also very close to Owen, who recently told Luke that he received an offer to sell his house at an "okay" price given the current real estate market. Owen is considering selling but hasn’t made any final decision yet. He wonders if he might get a better offer a few years from now when the real estate market improves. What is the ethical issue, why is this an issue, and what should Luke do about it?
***** For assignment 3, prepare a memo, setting out your analysis and recommendations, that considers ONLY the following two theories: Golden Rule and Virtue Ethics.
Answer:
My answer is a little long, so you will probably need to summarize it.
The ethical issue here is that you work for a company that is about to open a store that will make the price of your brother's house to plummet. Your brother has the option to sell his house right now, but if you tell him to accept the offer, you will be breaching your employment duties.
Is your duty towards your brother more or less important than the duty towards the company?
We can analyze both possible outcomes:
You do not tell your brother and he does not sell his house. After the store is announced, your brother's house will decrease in value. That means that your brother will lose a lot of money, but you complied with the obligation of confidentiality that you have with your company. The downside is that once your brother knows about it, he will hate you for the rest of his life. And the hatred will probably not be limited to only your brother, most, if not all of your family will be very unpleased and terribly mad at you. Your family will probably wonder why your parents didn't abort you?, or are you adopted?, or do you simply hate humanity? On the other hand, you decide that you value your brother and whole family, and you decide to tell him to accept the offer. You will have breached your confidentiality obligation towards the company, but you will have literally saved your brother's financial situation, and you will have saved any type of relationship that you have with your family. Will the company be hurt by your decision? No, it will not make any difference to them. They are announcing the decision in just a few days, so anything that you tell your brother will not make any difference. Since your brother will try to sell his house, he will keep the information to himself, since telling other people will only ruin any possible sale.If we follow the golden rule: do to others what you would like them to do to you, then obviously we should tell Owen about our company's plans. If we were Owen, that information would be really important for us.
If we follow virtue ethics, then it gets a little bit more complicated. Is telling Owen about the new store a virtuous action? Would a virtuous person do it? To be honest, I'm not really sure what exactly is a virtuous person.
What I understand is that virtue ethics is based on who you are, and not what you really will do. So, the question here would be: Are you a good (or virtuous) brother? Are you a good (or virtuous) employee? In this case, you cannot be a virtuous employee and a virtuous brother at the same time, so it depends on which you value the most. Going back to the possible outcomes, I would prefer to be a virtuous brother in this case.
Based on the preceding information, which of the following is an consolidating entry needed to prepare a full set of consolidated financial statements at December 31, 20X8:
A. Common Stock 200,000
Retained Earnings 150,000
Income from Tester Co. 40,000
Dividends declared 10,000
Investment in Tester Co. 285,000
NCI in NA of Tester Co. 95,000
B. Depreciation Expense 5,000
Income from Tester Co. 4,000
NCI in NI of Tester Co. 1,000
C. Common Stock 200,000
Retained Earnings 150,000
Income from Tester Co. 30,000
NCI in NI of Tester Co. 10,000
Dividends declared 10,000
Investment in Tester Co. 285,000
NCI in NA of Tester Co. 95,000
D. Patents 50,000
Accumulated Depreciation 10,000
Investment in Tester Co. 30,000
NCI in NA of Tester Co. 10,000
Answer:
Based on the preceding information, which of the following is an consolidating entry needed to prepare a full set of consolidated financial statements at December 31, 20X8:
Based on the preceding information, which of the following is an consolidating entry needed to prepare a full set of consolidated financial statements at December 31, 20X8:
A. Common Stock 200,000
Retained Earnings 150,000
Income from Tester Co. 40,000
Dividends declared 10,000
Investment in Tester Co. 285,000
NCI in NA of Tester Co. 95,000
Explanation:
Data:
A is the only correct answer. With it, the following accounts are debited:
Common Stock 200,000
Retained Earnings 150,000
Income from Tester Co. 40,000
And these accounts are credited:
Dividends declared 10,000
Investment in Tester Co. 285,000
NCI in NA of Tester Co. 95,000
With these, the debit side and the credit side are made to be equal. Again, debiting and crediting the above accounts eliminate them from the combined or consolidated financial statements since they are reflected on opposite sides of the parent and subsidiary's financial statements.
The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3. How many rosebushes would she have to produce and sell in order to break even
Answer:
Break-even point in units= 2,000
Explanation:
Giving the following information:
Fixed costs= $6,000
Selling price= $6 each
Unitary variable cost= $3
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 6,000 / 3
Break-even point in units= 2,000