Answer:
$173.18
Explanation:
First and foremost, we need to determine the prices for the bond at 9% and 5% yields respectively, using a financial calculator as shown below:
The financial calculator should be set to its end mode before making the following inputs:
9% yield:
N=5(number of annual coupons in 5 years)
PMT=90(annual coupon=face value*coupon rate=$1000*9%=$90)
I/Y=9(yield of 9% without the "%" sign)
FV=1000
CPT
PV=$1000.00
5% yield:
N=5(number of annual coupons in 5 years)
PMT=90(annual coupon=face value*coupon rate=$1000*9%=$90)
I/Y=5(yield of 5% without the "%" sign)
FV=1000
CPT
PV=$1,173.18
change in price=$1,173.18-$1,000.00
change in price=$173.18
A voluntary market works in the concept of?
Answer: The concept of voluntary exchange: The act of buyers and sellers freely and willingly engaging in market transactions.
Explanation: The principle of voluntary exchange is based on consumers and producers acting in their self-interest. A voluntary exchange between a consumer and a producer makes both parties better off than they were before the exchange.
Retro Rides, Incorporated, operates two divisions: (1) a Management Division that owns and manages classic automobile rentals in Miami, Florida and (2) a Repair Division that restores classic automobiles in Clearwater, Florida. The Repair Division works on classic motorcycles, as well as other classic automobiles. The Repair Division has an estimated variable cost of $60.50 per labor-hour and has a backlog of work for automobile restoration. They charge $80.00 per hour for labor, which is standard for this type of work. The Management Division complained that it could hire its own repair workers for $62.00 per hour, including leasing an adequate work area. What is the minimum transfer price per hour that the Repair Division should obtain for its services, assuming it is operating at capacity?
A) $28.50.
B) $30.00.
C) $39.00.
D) $48.00.
Answer:
D) $48
Explanation:
The minimum transfer price for the Repair division will be the variable cost which is standard for the same type of work. In the given scenario the price is $80 which is the maximum transfer price while $48 will be the minimum transfer price for Repair division.
The net income reported on the income statement for the current year was $245,000. Depreciation was $40,000. Account receivable and inventories decreased by $12,000 and $35,000, respectively. Prepaid expenses and accounts payable increased, respectively, by $1,000 and $8,000. How much cash was provided by operating activities
Answer:
$339,000
Explanation:
Computation of operating activity as is as seen below;
= Net income + Depreciation + Accounts receivable + Inventories decrease - Prepaid expenses + Accounts payable increase
= $245,000 + $40,000 + $12,000 + $35,000 - $1,000 + $8,000
= $339,000
Therefore, the sum of $339,000 was provided as cash for operating activities.
Following is information from Best Industries for Year 1. Total Year 1 revenue $1,977,040 Projected revenue growth rate, for next five years 3% Terminal revenue growth rate, after year 5 1% Net operating profit margin (NPM) 6.4% Net operating asset turnover (NOAT) 2.35 Projected Year 3 total revenue would be Select one:
Answer: $2,097,442.2
Explanation:
Projected Year 3 total revenue would be calculated thus:
Since the revenue will increase at the rate of 3% for every year and year 3, there'll be 2 years from year 1, this will then be expressed as:
= Total Year 1 revenue × (1 + 3%)²
= $1,977,040 × (1 + 0.03)²
= $1,977,040 × 1.03²
= $1,977,040 × 1.0609
= $2,097,442.2
Sue purchased a stock for 45 a share, held it for one year received a 2.34 divided and sold the stock for 46.45. what nominal rate of return did she earn?
Answer:
8.4
Explanation:
nominal return - price return + dividend yield
price return = 46.45 /45 - 1 = 3.2%
dividend yield = 2.34 / 45 = 5.2%
quick please I need help
Answer:
Answer below
Explanation:
Income
Monthly income $60 ( the $15 per week * 4 the number of weeks in a month ).
Grandparents $30
Total income $90
Essential expenses ( fixed )
Bicycle tune up $20
Essential expenses ( variable )
New bike tire $5
Non-essential expenses
Game $50
Total expenses $75
Total savings $15
I REALLY HOPE THIS HELPED YOU
Bronks Co. had pension plan assets and PBO of $160,000 on 1/1/19. Service cost for the year was $40,000. It contributed $30,000 during the year and paid benefits of $20,000. The interest rate was 10%. The actual return was $15,000. Compute pension expense, PBO and PA at the end of the year.
Answer:
Pension expense:
= Service cost + Interest on PBO - actual return
= 40,000 + (10% * 160,000) - 15,000
= $41,000
PBO at end of year:
= Beginning PBO+ Service cost + Interest on PBO - Benefits paid
= 160,000 + 40,000 + (10% * 160,000) - 20,000
= $196,000
Pension Assets at end of year:
= Beginning PBO + Return + Contribution - Benefits
= 160,000 + 15,000 + 30,000 - 20,000
= $185,000
The financial statements of an Enterprise fund are prepared using the :_______
Answer:
Accrual Method
Explanation:
I’m not sure if this is what this question is referring to or not, but the Enterprise fund uses the accrual method.
Jammer Company uses a weighted average perpetual inventory system that reports the following August 2 purchase 19 units at $16 per unit August 18 purchase 21 units at $15 per unit August 29 sale 38 units August 31 purchase 24 units at $19 per unit what was the per-unit value of ending inventory on August 31
Answer:
$23.19
Explanation:
The the weighted average perpetual inventory system recalculates a new unit cost whenever a new purchase is made. This unit cost is used to value cost of sales and inventory balance.
Unit Cost = Total Cost of units available for sale ÷ Total units available for sale
August 18
Unit Cost = [(19 units x $16) + (21 units x $15)] ÷ 40 units
= $15.475
August 31
Unit Cost = [(2 units x $15.475 ) + (24 units x $19)] ÷ 21 units
= $23.1880 or $23.19
therefore,
The per-unit value of ending inventory on August 31 is $23.19.
Scientific management were more concerned with the problems at the.........a. operational b.High level
Answer:
The correct option is a. operational level.
Explanation:
Scientific management is a management theory that examines and combines workflows. Its fundamental goal is to increase economic efficiency, particularly worker productivity at thee operational level.
Operational level is a level at which operational activities of a business are carried out. Operational activities are company functions that are directly tied to supply of goods and/or services to the market. Basic business activities include producing, distributing, marketing, and selling a product or service.
Therefore, the correct option is a. operational level. That is, scientific management were more concerned with the problems at the operational level.
Emily Company has 20,000 shares of cumulative preferred stock outstanding, with annual dividends paid at a rate of $2 per share. The company also has 40,000 shares of common stock outstanding. Preferred dividends are in arrears from the prior year and the number of shares remained the same for this year and last year. If the company declares a $400,000 dividend in the current year, each outstanding share of common stock would receive:
Answer:
$8.00
Explanation:
Preference Stock has preference when it comes to payment of dividends. The remainder is paid to common stock. When the preference stocks are cumulative, the previous dividends outstanding have to be paid up before current year dividends.
Preference Dividend :
Preference Dividend = 20,000 shares x $2 = $40,000
Thus in current year $80,000 dividend ($40,000 x 2) need to be paid up
Common Stock Dividend :
Dividend = $400,000 - $80,000 = $320,000
Dividend per stock = $320,000 ÷ 40,000 shares = $8.00
therefore,
Each outstanding share of common stock would receive: $8.00
. True / False. The hedonic property value method can be used to estimate lost non-use value associated with oil pollution at remote, uninhabited locations. Explain. (3 points)
Answer:
False.
Explanation:
The hedonic property value method determines the extent that environmental or ecosystem factors affect the price of a home. This implies that the method cannot be used to estimate lost, non-use value associated with oil pollution at remote, uninhabited locations, as stated in the question. Since the hedonic property value method is used to estimate the housing prices that reflect the value of local environmental attributes, it is not useful for uninhabited, remote locations and properties.
Blue Lite manufactures decorative weather vanes that have a standard materials cost of two pounds of raw materials at $2 per pound. During November 500 pounds of raw materials costing $4 per pound were used in making 450 weather vanes. The materials price and quantity variance are: Group of answer choices
Answer: See explanation
Explanation:
The material price variance will be calculated as:
= (Standard price - Actual price) × Actual quantity of material used
= ($2 - $4) × 500
= -$2 × 500
= $-1000
= $1000 Unfavourable
The material quantity variance will be:
= Standard quantity - Actual quantity) × Standard price
=[(450 × 2) -500] × $2.00
= (900 - 500) × $2.00
= 400 × $2.00
= $800 Favorable
A(n) _________ refers to each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it.
Answer:
A touch point refers to each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it.
Explanation:
A touch point can be described as any way through which a customer can interact with a company, whether it is through a website, a person-to-person interaction, an app, or any other kind of communication.
A touch point simply refers to a point of contact or connection, particularly between a company and its clients or customers.
Therefore, the correct answer to fill in the gap is a touch point.
Outdoor Company is located in Kirkland, Washington, where the city and the state have minimum wage laws. Outdoor pays its starting employees the legal minimum rate, which, among the governing laws, is Group of answer choices the federal minimum wage. the city minimum wage. the highest of the minimum wages. the state minimum wage.
Answer: the highest of the minimum wages.
Explanation:
The company will have the pay the minimum wage that is the highest because they are under the authority of all three governments and paying the highest minimum wage would ensure that they automatically follow the minimum wages set by the other two authorities.
For instance; the federal minimum wage is $7.25 per hour, the state minimum wage is $10 per hour and the city minimum is $12 per hour. When the company pays $12 an hour, they would be adhering to the city minimum and automatically adhering to the Federal and State minimums as well.
What are the implications of CIC’s approach to staffing project teams? Is the company using project teams as training grounds for talented fast-trackers, or as dumping grounds for poor performers?
Answer:
CIC's methodology to projects team employment is based on functional structure. It gathers team individuals from several departments. They grant team players very little influence. They are not permitted to review the effectiveness of task team participants however, operational heads are permitted to do so.
Training under this approach is a very positive thing and should be welcomed by the individuals. It gives the the candidates to enhance their skill and become appropriate for the job environment.
12. An invoice for hosiery is dated Aug 22 with terms 1/10, FOB store. The total billed cost of merchandise is $876.90 and shipping charges are $18.60. If the invoice is paid on September 5, how much should be remitted
Answer:
$895.5
Explanation:
Calculation to determine how much should be remitted using this formula
Remitted Amount=Total billed cost of merchandise +Shipping charges
Let plug in the formula
Remitted Amount=$876.90+ $18.60
Remitted Amount=$895.5
Therefore how much should be remitted is $895.5
Ingrid Inc. has strict credit policies and only extends credit to customers with outstanding credit history. The company examined its accounts and determined that at January 1, 2019, it had balances in Accounts Receivable and Allowance for Doubtful Accounts of $478,000 and $7,900 (credit), respectively. During 2019, Ingrid extended credit for $3,075,000 of sales, collected $2,715,000 of accounts receivable, and had customer defaults of $4,280. Ingrid performed an aging analysis on its receivables at year end and determined that $6,800 of its receivables will be uncollectible.
Required:
a. Calculate Ingrid's balance in accounts receivable on December 31, 2018, prior to the adjustment.
b. Calculate Ingrid's balance in allowance for doubtful accounts on December 31, 2018, prior to the adjustment.
c. Prepare the necessary adjusting entry for 2018.
Answer:
Ingrid Inc.
a. Ingrid's balance in accounts receivable on December 31, 2018, prior to the adjustment is:
= $833,720.
b. Ingrid's balance in allowance for doubtful accounts on December 31, 2018, prior to the adjustment is:
= $6,800.
c. Adjusting Entry:
Debit Bad Debts Expense $3,180
Credit Allowance for Doubtful Accounts $3,180
To record the bad debts expense for the year and bring the balance of the Allowance for Doubtful Accounts to a credit balance of $6,800
Explanation:
a) Data and Calculations:
January 1, 2019 balances:
Accounts Receivable $478,000
Allowance for Doubtful Accounts $7,900 (credit)
Accounts Receivable $3,075,000 Sales Revenue $3,075,000
Cash $2,715,000 Accounts Receivable $2,715,000
Allowance for Doubtful Accounts $4,280 Accounts Receivable $4,280
Ending balance:
Allowance for Doubtful Accounts $6,800 (Credit)
T-Accounts
Account Titles Debit Credit
Beginning balance $478,000
Sales Revenue $3,075,000
Cash $2,715,000
Allowance for Doubtful Accounts $4,280
Ending balance $833,720
Allowance for Doubtful Accounts
Account Titles Debit Credit
Beginning balance $7,900
Accounts Receivable $4,280
Bad Debts Expense 3,180
Ending balance $6,800
In January 2021 Vega Corporation purchased a patent at a cost of $203,000. Legal and filing fees of $50,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In January 2024, Vega spent $24,000 in legal fees for an unsuccessful defense of the patent and the patent is no longer usable. The amount charged to income (expense and loss) in 2024 related to the patent should be:
Answer:
$201,100
Explanation:
Calculation to determine The amount charged to income (expense and loss) in 2024 related to the patent should be:
Total patent cost= $203,000 + $50,000
= $253,000
Amortized cost till year 2024 is
= ($253,000 ÷ 10 years) × 3 years
= $75,900
The three years is counted from 2021 to 2024
Now
Book value on Jan 2024 is
= $253,000 - $75,900
= $177,100
So,
Amount charged to income is
= $177,100 + $24,000
= $201,100
Therefore The amount charged to income (expense and loss) in 2024 related to the patent should be:$201,100
If Jerry deposits $462 of cash in a checking account in the Tenth National Bank, what's the maximum change in the money supply in the economy
Answer:
$4620
Explanation:
It is assumed that the required reserve is 10%
Reserve requirement is the portion of deposit received by banks that the central bank requires to be kept as deposit.
Increase in the total value of checkable deposit is determined by the money multiplier
Money multiplier = amount deposited / reserve requirement
462 /0,1 = $4620
The article discusses actions taken by Mary Conger, a master plumber who teaches mandated continuing education classes so that plumbers can maintain their licenses. If we take an opportunistic view of her action, it is a good example of what? Choose one: A. copyright infringement B. consolidation C. rent-seeking behavior D. quality assurance
Answer:
Option D
Explanation:
In simple words, Quality assurance, described by ISO 9000 as element of quality control focusing on ensuring trust that performance standards will be met," is a method of preventing errors and failures in manufacturing goods and avoiding issues when supplying products or services to consumers.
Thus, from the above we can conclude that the correct answer is D.
As a result if this we can see that opportunistic view of her action, it is a good example of quality assurance.
According to the question, we are to discuss actions taken by Mary Conger, a master plumber who teaches mandated continuing education classes so that plumbers can maintain their licenses.
Therefore, option D is correct because her action, it is a good example of quality assurance.
Learn more about quality assurance at:
https://brainly.com/question/17493537
During 2021, Sysco Corp. had 950,000 shares of common stock and 100,000 shares of 7% preferred stock outstanding. The preferred stock does not have cumulative or convertible features. Sysco declared and paid cash dividends of $400,000 and $200,000 to common and preferred shareholders, respectively, during 2021. On January 1, 2020, Sysco issued $2,100,000 of convertible 5% bonds at face value. Each $1,000 bond is convertible into five common shares. Sysco's net income for the year ended December 31, 2021, was $6.00 million. The income tax rate is 20%. What will Sysco report as diluted earnings per share for 2021, rounded to the nearest cent?
a. None of these answer choices are correct
b. 56.25
c. $6.03
d. $6.35
Answer:
c. $6.03
Explanation:
Earnings available to common shareholders
Net Income $6,000,000
Less: Preference dividend $200,000
Net Income available to common shareholders $5,800,000
Number of Common shares = 950,000
Equivalent common shares for convertible 5% Bonds = 10,450. [Number of bonds = 2,100,000/1,000 = 2,100 shares. Equivalent common shares = 2,100 * 5 = 10,500 shares]
Weighted average number of common shares outstanding = 950,000 + 10,500 = 960,500
Earnings per share = Earnings available to common shareholders / Weighted average number of common shares outstanding
Earnings per share = $5,800,000 / 960,500
Earnings per share = 6.038521603331598
Earnings per share = $6.04
The Town of Drexel has the following financial transactions. Prepare the journal entries necessary for the preparation of fund financial statements.
1. The town council adopts an annual budget for the general fund estimating general revenues of $1.7 million, approved expenditures of $1.5 million, and approved transfers out of $120,000.
2. The town levies property taxes of $1.3 million. It expects to collect all but 3 percent of these taxes during the year. Of the levied amount, $40,000 will be collected next year but after more than 60 days.
3. The town orders two new police cars at an approximate cost of $110,000.
4. A transfer of $50,000 is made from the general fund to the debt service fund.
5. The town pays a bond payable of $40,000 along with $10,000 of interest using the money previously set aside.
6. The Town of Drexel issues a $2 million bond at face value in hopes of acquiring a building to convert into a high school.
7. The two police cars are received with an invoice price of $112,000. The voucher has been approved but not yet paid.
8. The town purchases the building for the high school for $2 million in cash and immediately begins renovating it.
9. Depreciation on the new police cars is computed as $30,000 for the period.
10. The town borrows $100,000 on a 30-day tax anticipation note.
Answer:
1. A. FUND: GENERAL FUND
Dr Estimated Revenues control $1,700,000
Cr Appr. Control $1,500,000
Cr Est. OFU control $120,000
Cr Budgetary Fund Balance 80,000
GOVERNMENT
No journal entry
2. FUND: GENERAL FUND
Dr Property Tax Receivable $1,300,000
Cr Allowance for uncollectible taxes $39,000
Cr Deferred Revenue $40,000
Cr Revenues-Property taxes $1, 221,000
GOVERNMENT: GOVERNMENTAL ACTIVITIES
Dr Property Tax Receivable $1,300,000
Cr Allowance for uncollectible taxes $39,000
Cr Revenues - Property taxes $1,261,000
3. FUND: GENERAL FUND
Dr Encumbrances control $110,000
Cr Fund-balance: reserve for Encumbrances
$110,000
GOVERNMENT
Commitments are not reported
4. FUND: GENERAL FUND
Dr OFU: transfer out $50,000
Cr Cash $50,000
FUND: DEBT SERVICES FUND
Dr Cash $50,000
Cr OFU: Transfer in $50,000
GOVERNEMNT
No journal entry
5. FUND: DEBT SERVICES FUND
Dr Expenditures - Principal $40,000
Dr Expenditures - Interest $10,000
Cr Cash $50,000
GOVERNMENT
Dr Bonds Payable $40,000
Dr Interest Expense $10,000
Cr Cash $50,000
6. FUND:CAPITAL PROJECTS FUND
Dr Cash $2,000,000
Cr Other Financing Sources-Bond Proceeds
$2,000,000
GOVERNMENT
Dr Cash $2,000,000
Cr Bonds Payable $2,000,000
7. FUND: GENERAL FUND
Dr Fund balance- reserve for Encumbrances $110,000
Cr Encumbrances control $110,000
Dr Expenditure: police vehicles $112,000
Cr Vouchers payable $112,000
GOVERNMENT
Dr Police Cars $112,000
Cr Vouchers Payable $112,000
8. FUND: CAPITAL PROJECTS FUND
Dr Expenditures - Building $2,000,000
Cr Cash $2,000,000
GOVERNMENT
Dr Building $2,000,000
Cr Cash $2,000,000
9. FUND
No journal entry
GOVERNMENT
Dr Depreciation Expense $30,000
Cr Accumulated Depreciation $30,000
10. FUND: GENERAL FUND
Dr Cash $100,000
Cr Tax Anticipation Note Payable $100,000
GOVERNMENT
Dr Cash $100,000
Cr Tax Anticipation Note Payable $100,000
Explanation:
Preparation of the journal entries necessary for the preparation of fund financial statements
1. FUND: GENERAL FUND
Dr Estimated Revenues control $1,700,000
Cr Appr. Control $1,500,000
Cr Est. OFU control $120,000
Cr Budgetary Fund Balance $80,000
($1,700,000-$1,500,000-$120,000)
GOVERNMENT
No journal entry
2. FUND: GENERAL FUND
Dr Property Tax Receivable $1,300,000
Cr Allowance for uncollectible taxes $39,000
(3%*1,300,000)
Cr Deferred Revenue $40,000
Cr Revenues-Property taxes $1, 221,000
($1,300,000-$39,000-$40,000)
GOVERNMENT: GOVERNMENTAL ACTIVITIES
Dr Property Tax Receivable $1,300,000
Cr Allowance for uncollectible taxes $39,000
(3%*1,300,000)
Cr Revenues - Property taxes $1,261,000
($1,300,000-$39,000)
3. FUND: GENERAL FUND
Dr Encumbrances control $110,000
Cr Fund-balance: reserve for Encumbrances
$110,000
GOVERNMENT
Commitments are not reported
4. FUND: GENERAL FUND
Dr OFU: transfer out $50,000
Cr Cash $50,000
FUND: DEBT SERVICES FUND
Dr Cash $50,000
Cr OFU: Transfer in $50,000
GOVERNEMNT
No journal entry
5. FUND: DEBT SERVICES FUND
Dr Expenditures - Principal $40,000
Dr Expenditures - Interest $10,000
Cr Cash $50,000
($40,000+$10,000)
GOVERNMENT
Dr Bonds Payable $40,000
Dr Interest Expense $10,000
Cr Cash $50,000
($40,000+$10,000)
6. FUND:CAPITAL PROJECTS FUND
Dr Cash $2,000,000
Cr Other Financing Sources-Bond Proceeds
$2,000,000
GOVERNMENT
Dr Cash $2,000,000
Cr Bonds Payable $2,000,000
7. FUND: GENERAL FUND
Dr Fund balance- reserve for Encumbrances $110,000
Cr Encumbrances control $110,000
Dr Expenditure: police vehicles $112,000
Cr Vouchers payable $112,000
GOVERNMENT
Dr Police Cars $112,000
Cr Vouchers Payable $112,000
8. FUND: CAPITAL PROJECTS FUND
Dr Expenditures - Building $2,000,000
Cr Cash $2,000,000
GOVERNMENT
Dr Building $2,000,000
Cr Cash $2,000,000
9. FUND
No journal entry
GOVERNMENT
Dr Depreciation Expense $30,000
Cr Accumulated Depreciation $30,000
10. FUND: GENERAL FUND
Dr Cash $100,000
Cr Tax Anticipation Note Payable $100,000
GOVERNMENT
Dr Cash $100,000
Cr Tax Anticipation Note Payable $100,000
Too Young, Inc., has a bond outstanding with a coupon rate of 6.7 percent and semiannual payments. The bond currently sells for $948 and matures in 24 years. The par value is $1,000. What is the company's pretax cost of debt
Answer:
4%
Explanation:
The company's pretax cost of debt is 4%
Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $305,000, variable expenses of $153,600, and traceable fixed expenses of $70,800. The Alpha Division has sales of $615,000, variable expenses of $337,800, and traceable fixed expenses of $132,700. The total amount of common fixed expenses not traceable to the individual divisions is $134,200. What is the company's net operating income
Answer:
$2,000
Explanation:
net operating income = total contribution - common fixed expenses
The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead (a) 479,232 (b) 399,360 Bal. 79,872 Work in Process Bal. 13,640 (c) 742,000 288,000 89,000 (b) 399,360 Bal. 48,000 Finished Goods Bal. 42,000 (d) 656,000 (c) 742,000 Bal. 128,000 Cost of Goods Sold (d) 656,000 The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows: Work in Process, ending $ 23,040 Finished Goods, ending 61,440 Cost of Goods Sold 314,880 Overhead applied $ 399,360 For example, of the $48,000 ending balance in work in process, $23,040 was overhead that had been applied during the year. Required: 1. Identify reasons for entries (a) through (d). 2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. 3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.
Answer:
Part 1:
a) We see that the actual Mfg OH is being debited with the amount incurred.
b) Work in Process Inventory Debit (b) 399,360
Mfg OH ( applied) Credit (b) 399,360
c) CGS debit (c) 742,000
WIP Credit (c) 742,000
d) CGS debit (d) 656,000
Finished Goods credit (d) 656,000
Part 2:
The journal entry is
Cost of Goods Sold $79872 Debit
Factory Overhead $ 79 872 Credit
Part 3:
Journal Entry
Work in Process, $ 24960 debit
Finished Goods, 66560 debit
Cost of Goods Sold (11648) credit
Manufacturing Overheads $ 79872 credit
Explanation:
The given accounts are
Manufacturing OverheadDebit Credit
(a) 479,232 (b) 399,360
Bal. 79,872
Work in ProcessDebit Credit
Bal. 13,640 (c) 742,000
288,000
89,000
(b) 399,360
Bal. 48,000
Finished GoodsDebit Credit
Bal. 42,000 (d) 656,000
(c) 742,000
Bal. 128,000
Cost of Goods Sold(d) 656,000
Part 1:
a) Actual manufacturing overhead
We see that the actual Mfg OH is being debited with the amount incurred.
b) Manufacturing overhead applied to Work in Process Inventory
Work in Process Inventory Debit (b) 399,360
Mfg OH ( applied) Credit (b) 399,360
c) Cost of Goods Manufactured
CGS debit (c) 742,000
WIP Credit (c) 742,000
d) Cost of Goods Sold
CGS debit (d) 656,000
Finished Goods credit (d) 656,000
Part 2:
The actual overhead is $ 479232 and applied overhead is $399,360 which is less than actual overhead.
The journal entry is
Cost of Goods Sold $79872 Debit
Factory Overhead $ 79 872 Credit
To transfer under applied overhead to cost of goods sold.
Part 3:
We find the differences between actual and applied overheads and then pass the journal entry.
Work in Process, ending $ 23,040
Finished Goods, ending 61,440
Cost of Goods Sold 314,880
Overhead applied $ 399,360
Work in Process, ending $ 48,000
Finished Goods, ending 128,000
Cost of Goods Sold 303,232
Actual Overhead $ 479,232
Work in Process, ending =$ 48,000 -$ 23,040 =$ 24960
Finished Goods, ending= 128,000-61,440 = 66560
Cost of Goods Sold = 303,232 -314,880 = (11648)
Journal Entry
Work in Process, $ 24960 debit
Finished Goods, 66560 debit
Cost of Goods Sold (11648) credit
Manufacturing Overheads $ 79872 credit
n a continuous review system, the average daily demand for a part is Normally distributed with mean 20 and standard deviation of 4. The lead time to receive the part from the time it is ordered is 9 days. The appropriate re-order point for this part if we want a 95% service level is a. 200 b. 20 c. 180 d. 184
Answer: 200
Explanation:
Based on the information given in the question, the appropriate re-order point for this part if we want a 95% service level will be:
Mean demand = 20
Standard deviation of demand = 4
Lead time = 9 days
Service level = 95% = 95/100 = 0.95
Re-order Point will be:
= (demand × lead time) + (z* × std dev × ✓leadtime)
= (20 × 9) + (1.645 × 4 × ✓9)
= (180) + (1.645 × 4 × 3)
= 199.74
= 200 approximately
The re-order point is 200
A perfectly elastic demand curve implies that the firm Select one: a. The demand curve for a purely competitive firm is downsloping, but the demand curve for a purely competitive industry is perfectly elastic. b. The demand curves are perfectly elastic for both a purely competitive firm and a purely competitive industry. c. The demand curves are downsloping for both a purely competitive firm and a purely competitive industry. d. The demand curve for a purely competitive firm is perfectly elastic, but the demand curve for a purely competitive industry is downsloping.
Answer: d. The demand curve for a purely competitive firm is perfectly elastic, but the demand curve for a purely competitive industry is downsloping.
Explanation:
In a purely competitive market, all the firms are selling the same product so there is a lot of competition. The market sets the price in this industry at the point where quantity demanded equals quantity supplied and the demand curve for the whole industry is downward sloping.
When it comes to the demand curve for the individual firm however, it is elastic because price is not set by the firm. This perfectly elastic demand shows that if the firm tries to sell at a price that is different from the market, quantity demanded from that firm would change by infinity because people would prefer the market price.
Steve Pratt, who is single, purchased a home in Spokane, Washington, for $347,500. He moved into the home on February 1 of year 1. He lived in the home as his primary residence until June 30 of year 5, when he sold the home for $705,000. (Leave no answer blank. Enter zero if applicable.) a. What amount of gain will Steve be required to recognize on the sale of the home
Answer: $107,500
Explanation:
There is an "Exclusion of gain on sale of home" provision by the IRS that allows for a single tax payer to exclude up to $250,000 from the sale of their primary home. A home qualifies as primary if the owner has lived in it for 2 years or more so Steve's home here is a primary home.
The gain he received was:
= 705,000 - 347,500
= $357,500
From this gain, $250,000 can be excluded so total gain recognized:
= 357,500 - 250,000
= $107,500
A long position of the three-month forward contract on a commodity that was negotiated three months ago has a delivery price of $40. The current forward price for a three-month forward contract is $42. The current spot price of this commodity is also $42. The three month risk-free interest rate (with continuous compounding) is 8%. What is the value of this long forward contract now
Answer:
$1.96
Explanation:
The disparity between the delivery price and the actual forward price discounted at the specified discount rate will be the current value.
Thus, it can be calculated by using the following formula:
[tex]Value = \dfrac{forward price - Delivery price}{e^{(rate * \dfrac{no \ of \ months}{12})}}[/tex]
[tex]Value = \dfrac{42 - 40}{e^{(0.08 * \dfrac{3}{12})}}[/tex]
[tex]Value = \dfrac{2}{e^{0.02}}[/tex]
[tex]Value = \dfrac{2}{1.02020134}[/tex]
[tex]\mathbf{Value =\$1.96 }[/tex]