Answer:
Predetermined manufacturing overhead rate= $7.19 per direct labor hour
Explanation:
Giving the following information:
Estimated direct labor hours= 210,000
Estimated overhead costs= $1,510,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,510,000 / 210,000
Predetermined manufacturing overhead rate= $7.19 per direct labor hour
THESE ARE TRUE OR FALSE!! PLEASE HELP ASAP!!
1. A letter of application is just a general business letter.
- 2. Getting a position interview is the main purpose of a letter of application.
3. It is important that a letter of application be businesslike and courteous.
– 4. It is not necessary to include a personal data sheet if you have a well-written and complete
letter of application.
5. It is a good idea to restrict yourself to just one good source of job leads.
6. Completing the position application form is not very important in the job-search process.
7. Some employers use ability tests to find out how well job applicants can do certain job
tasks.
8. Being dressed very informally for a position interview lets the employer know that you are
"cool" and will get along well with everybody.
9. A positive attitude toward work has many benefits.
10. When you leave a job, you should exit as soon as possible.
Select the correct answer from each drop-down menu.
Jerry's company has launched a new product following the market penetration pricing. What rates would his products have and on what would he
spend a lot on?
Jerry's company has launched a new product following the market penetration pricing. Thus, his products have____
and he is spending a lot on
____the product.
price
First blank:
A.) a high
B.) a low
C.) an above average
Second blank:
A.) packaging
B.) manufacturing
C.) advertising
Jerry's company has launched a new product following the market penetration pricing. Thus, his products have a low price and he is spending a lot on the advertising product price.
Using a lower price during the initial offering of a new product or service, firms utilize penetration pricing as a marketing approach to draw clients to the new offering.
A new product or service can more easily enter the market and draw clients away from rivals thanks to a reduced price. Pricing for market penetration is based on the principle of initially offering a new product at low rates to attract the attention of as many consumers as possible.
A price penetration strategy seeks to increase market share by luring consumers to test new products in the hopes that they would remain loyal after prices return to normal. An online news site that offers a trial month of a subscription-based service is an example of penetration pricing.
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Complete the following sentence.
Today, marketing strategies are generally divided into two sectors: inbound and
Answer:
Today, marketing strategies are generally divided into two sectors: inbound and
outbound.
Explanation:
Marketing strategies are broadly divided into two. One is inbound marketing strategy, which aims to attract customers, who have already indicated interest in an entity's products and services. They are already out there trying to reach out to the entity in order to satisfy their needs. As a marketing strategy category, it utilizes pull marketing activities to create brand awareness and attract willing new customers, including content, blogs, events, search engine optimization (SEO), and social media marketing. Outbound marketing strategy uses push marketing activities to chase customers. For example, it uses TV, radio, and other media ads, trade shows, cold calling, and cold emails.
Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on March 31, 2022. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period:
$3,000,000, 12% note
$7,000,000, 7% bonds
Construction expenditures incurred were as follows:
July 1, 2021 $ 700,000
September 30, 2021 990,000
November 30, 2021 990,000
January 30, 2022 930,000
The company’s fiscal year-end is December 31.
Required:
Calculate the amount of interest capitalized for 2021 and 2022.
Calculate the amount of interest capitalized for 2021. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%).)
Date Expenditure Weight Average
July 1, 2021 x =
September 30, 2021 x =
November 30, 2021 x =
Accumulated expenditures
Amount Interest Rate Capitalized Interest
Average accumulated expenditures x % x =
2021
Date Expenditure Weight Average
January 1, 2022 x =
January 30, 2022 x =
Amount Interest Rate Capitalized Interest
Average accumulated expenditures x x =
Solution :
The interest capitalization for 2021
Date Expenditure x Weight = Average
1 July,2021 700,000 6/12 350,000
30 Sept,2021 990,000 3/12 247,500
30 Nov, 2021 990,000 1/12 82,500
Total 2,680,000 680,000
Amount x interest rate = Capitalization interest
Average total expenditure 680,000 8.50% 57,800
The weighted average interest rate
[tex]$=\frac{3,000,000 \times 12\% + 7,000,000 \times 7\%}{3,000,000+7,000,000}$[/tex]
= 8.5 %
Balance as on 1st Jan, 2022 = [tex]$2,680,000+57,800 = 2,737,800$[/tex]
The interest Capitalized for 2022
Date Expenditure x Weight = Average
1 Jan,2022 2,737,800 12/12 2,737,800
30 Jan, 2022 930,000 11/12 852,500
Accumulated 3,667,800 3,590,300
expenditures
Amount x interest rate = Capitalization interest
Average accumulated 3,590,000 8.50% 305,175.5
expenditure
Speedy has net income of $30,955, and assets at the beginning of the year of $212,000. Assets at the end of the year total $258,000. Compute its return on assets.
Answer:
13.17%
Explanation:
Given that;
Net income = $30,955
Asset at the beginning of the year = $212,000
Asset at the end of the year = $258,000
Return on assets = Net income / Average total assets
But,
Average total assets = (Assets at the beginning of the year + Assets at the end of the year ) / 2
Average total assets = ($212,000 + $258,000) / 2
Average total assets = $235,000
Therefore,
Return on assets = ($30,955 / $235,000) × 100
Return on assets = 13.17%
You are considering an investment that costs $152,000 and has projected cash flows of $71,800, $86,900, and -$11,200 for years 1 to 3, respectively. If the required rate of return is 15.5 percent, should you accept the investment based solely on the internal rate of return rule? Why or why not?
a. Yes; The IRR exceeds the required return.
b. No; The IRR exceeds the required return.
c. You cannot apply the IRR rule in this case.
d. Yes; The IRR is less than the required return.
Answer:
c
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
The IRR would give conflicting answers in this case because a stream of positive cash flows is followed by negative cash flow
IRR can only be used when a negative cash flow is followed by positive cash flows
In this question there are two negative cash flows in year 0 and year 3
Money is neutral in:___________
A. the short run, since it cannot alter the real aggregate output or price level in the short run.
B. both the short and long run, since it cannot alter price levels or aggregate output in the long and short run.
C. the long run, since it only affects the price level, but not aggregate output or interest rates.
D. the short run, since it cannot alter the price levels or interest rate in the short run.
Answer:
C
Explanation:
Money neutrality is a theory which submits that money supply only affect nominal variable and not real variables.
Nominal variables include price, wages and exchange rate
real variables include employment and real GDP
Money is only neutral in the long run and not in the short run because of money illusion. Money illusion causes economic agents to respond to money supply changes.
Money is neutral only in the long run
While on vacation, Kyle Kingston, the president and chief executive officer of Remstat, Inc., is called by the CEO of Viokam Corporation, who asks Kingston if Remstat would be interested in buying 25 percent of the outstanding shares of Viokam. Remstat is a billion dollar conglomerate which has contemplated acquiring Viokam for some time. Kingston tells Viokam's CEO that Remstat is not interested. Kingston tells Viokam’s CEO, however, that KKIM, Inc., would be willing to buy the shares of Viokam. Kingston is the 100 percent shareholder of KKIM. Viokam sells the shares to KKIM for $35 million. A year later, KKIM sells the shares for $55 million to a mutual fund company. When Remstat's directors discover KKIM's purchase and sale of the Viokam shares, they bring an action against Kingston on behalf of Remstat. Which of the following is correct?
1. Kingston may be held liable to Remstat because he usurped a corporate opportunity.
2. Kingston may not be held liable to Remstat because he became aware of this opportunity outside the scope of his duties as an officer of Remstat.
3. Kingston may not be held liable to Remstat because he acted within the discretion afforded him under the business judgment rule.
4. Kingston may be held liable to Remstat because he exceeded his authority to act for the corporation.
Answer: A. Kingston may be held liable to Remstat because he usurped a corporate opportunity.
Explanation:
Based on the information given in the question, the correct option is that Kingston may be held liable to Remstat because he usurped a corporate opportunity.
Usurpation of a corporate opportunity is typically regarded as a form of breach of duty and it arises when a worker in a particular company uses the information that he has for his own personal gain.
In this case, Kingston is the 100 percent shareholder of KKIM and uses the information that he has regarding the sabres to his benefit.
Therefore, the correct option is A.
Current Attempt in Progress
Wildhorse Company uses a periodic inventory system. For April, when the company sold 570 units, the following information is
available.
Units
Unit Cost
$28
April 1 inventory
April 15 purchase
April 23 purchase
250
350
400
1,000
34
36
Total Cost
$7,000
11,900
14,400
$33,300
Compute the April 30 inventory and the April cost of goods sold using the LIFO method.
Ending inventory
$
Cost of goods sold
$
e Textbook and Media
re to search
o
SI
* 5 0
Answer:
units
Explanation:
Units Unit Cost Total Cost
April 1 inventory 250 $28 $ 7,000
April 15 purchase 350 34 11,900
April 23 purchase 400 36 14,400
1,000 $33,300
On September 30, 2018, Corso Steel acquired a patent from Thermo Steel. The agreement specified that Corso will pay Thermo $1,000,000 immediately and then another $1,000,000 on September 30, 2020. An interest rate of 8% reflects the time value of money for this type of loan agreement.
What amount of interest expense, if any, would Corso record on December 31, 2019, the company’s fiscal year end?
a. $68,687.
b. $80,000.
c. $60,000.
d. $69,959.
Answer: $69,959
Explanation:
The amount of interest expense, that Corso will record on December 31, 2019, the company’s fiscal year end will be calculated thus:
First, we calculate the present value of payment which will be made on September 30,2020 and this will be:
= $1000000 × 0.857339
= $857339
Then, the interest expense on December 31,2018 will be:
= $857339 × 8%/12 × 3
= $17147
Therefore, the Interest expense on December 31,2019 will be:
= ($857339 + $17147) × 8%
= $874486 × 0.08
= $69959
Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow
Units Dollars
April (actual) 4,500 720,000
May (actual) 2,200 352,000
June (budgeted) 5,000 800,000
July (budgeted) 4,000 799,000
August (budgeted) 3,000 600,000
All sales are on credit. Recent experience shows that 28% of credit sales are collected in the month of the sale, 42% in the month after the sale, 27% in the second month after the sale, and 3% prove to be uncollectible. The product's purchase price is $110 per unit, 60% of purchases made in a month is paid in that month and the other 40% is paid in the next month. The company has the policy to maintain an ending monthly inventory of 18% of the next month's unit sales plus a safety stock of 180 units. The April 30 and May 31 actual Inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,584,000 and are paid evenly throughout the year In cash. The company's minimum cash balance at the month-end is $120,000. This minimum is maintained, If necessary, by borrowing cash from the bank. If the balance exceeds $120,000, the company repays as much of the loan as It can without going below the minimum. This type of loan carries an annual 13% interest rate. On May 31, the loan balance is $39,500, and the company's cash balance Is $120,000
Required:
a. Prepare a schedule that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July.
b. Prepare a schedule that shows the computation of budgeted ending inventories (in units) for April, May, June, and July.
c. Prepare the merchandise purchases budget for May, June, and July. Report calculations in units and then show the dollar amount of purchases for each month.
d. Prepare a schedule showing the computation of cash payments for product purchases for June and July.
e. Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance at the end of each month.
Answer:
a. Total cash collections are as follows:
June = $605,760
July = $715,580
b. Ending units are as follows:
April = 623 units
May = 1,295 units
June = 1,055 units
July = 815 units
c-1. Units purchased are as follows:
May = 2,872 units
June = 4,760 units
July = 2,130 units
c-2. Purchases amount are as follows:
May = $315,920
June = $523,600
July = $234,300
d. Cash payments for product purchases are as follows:
June = $440,528
July = $350,020
e. Loan Balance End of Month are as follows:
June = $1,324,163
July = $2,226,541
Explanation:
Note: See the attached excel file for requirements a, b, c, d, and e.
In the attached excel file under requirement e, the following calculations is made:
June additional loan = Minimum required cash balance - June Preliminary cash balance = $110,000 - (-$1,169,663) = $110,000 + $1,169,663 = $1,279,663
July additional loan = Minimum required cash balance - July Preliminary cash balance = $110,000 - (-$792,378) = $110,000 + $792,378 = $902,378
You are evaluatig an equity investment in a public company called Corona Corp (ticker: COR). You expect the company will pay a $2.00 dividend per share at the end of next year and that dividends will grow at a constant rate of 5% annually in the future. You require a 13% return on investments in equity. Based on these assumptions, what is the fair value of a share of COR stock today?
Answer:
$25
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
2/ 0.13 - 0.08 = $25
Grouper Company purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase.
List price of new melter $21,804
Cash paid 13,800
Cost of old melter (5-year life, $966 salvage value) 15,456
Accumulated Depreciation-old melter (straight-line) 8,694
Secondhand fair value of old melter 7,176
Required:
Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Sage’s fiscal year ends on December 31, and depreciation has been recorded through December 31, 2020.
Answer and Explanation:
The journal entries are shown below;
a. the exchange has commercial substance
Depreciation expense (($15,456 - $966) ÷ 5 × 4 ÷ 12 ) $966
To Accumulate depreciation $966
(being depreciation expense is recorded)
New Melter ($13,800 + $7,176) $20,976
accumulated depreciation ($8,694 + $966) $9,660
To loss on sale of melter $1,380
To old melter $15,456
To cash $13,800
(being equipment exchange is recorded)
b. The exchange lacks commercial substance
Depreciation expense (($15,456 - $966) ÷ 5 × 4 ÷ 12 ) $966
To Accumulate depreciation $966
(being current depreciation expense is recorded)
New Melter ($13,800 + $7,176) $20,976
accumulated depreciation ($8,694 + $966) $9,660
To loss on sale of melter $1,380
To old melter $15,456
To cash $13,800
(being equipment exchange is recorded)
Sabrina, Kris, and Kelly are the only three residents of the small town of Charleston. They are considering whether to hire a police officer to patrol the town. Sabrina values the police officer at $610 per week, Kris values the police officer at $230 per week, and Kelly values the police officer at $150 per week. The competitive wage for a police officer is $900 per week.
a. If the protection provided by the police officer to one resident does not diminish the protection provided to the other residents, then the police officer is ____________
1. a commons
2. an excludable
3. a rival
4. a nonrival
5. a nonexcludable good.
b. Suppose Sabrina proposes a tax whereby all three residents split the cost of the police officer equally.
1. Will the majority of them support this tax?
2. No, they will not support the tax.
3. Yes, they will support the tax.
4. Is this outcome socially efficient?
5. This outcome is not socially efficent.
6. This outcome is socially efficient.
Answer:
a. 4. a nonrival
b. 1. a. No, they will not support the tax.
2. b. This outcome is socially efficient.
Explanation:
When the services provided by a good to one person does not diminish the good's ability to provide those same services for another, the good is said to be non-rival in nature.
If an equal tax is proposed, not everyone would be in support of it because some would be paying more than they value the policeman. An equal tax would be:
= 900 salary / 3 = $300
This is more than the value that both Kris($230) and Kelly ($150) value the police officer at.
This outcome however, is socially efficient because when costs are split evenly, a socially optimal and efficient outcome often results.
On July 1, Lopez Company paid $1,500 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. Zim Company has a Supplies account balance of $5,600 at the beginning of the year. During the year, it purchased $2,300 of supplies. As of December 31, a physical count of supplies shows $950 of supplies available.
Required:
Prepare the adjusting journal entry to correctly report the balance of the Supplies account and the Supplies Expense account as of December 31, 2017.
Answer:
Dr Supplies expense $6,950
Cr Supplies $6,950
Explanation:
Preparation of the adjusting journal entry to correctly report the balance of the Supplies account and the Supplies Expense account as of December 31, 2017.
Dr Supplies expense $6,950
Cr Supplies $6,950
($5,600+$2,300-$950)
(To record the balance of the Supplies account and the Supplies Expense account)
Beginning Supplies account balance $5,600
Add purchased $2,300
Less physical count of supplies $950
=$6,950
Assume that Speedo International received $400,000 cash by signing a long-term promissory note. They are required to make cash interest payments on April 30 and October 31 at an annual rate of 6%. Assuming a 12/31 year end.
Required:
What journal entries would be required at December 31?
Answer:
Dr Interest expense $4,000
Cr Interest payable $4,000
Explanation:
Based on the information given the appropiate
journal entries thatwould be required at December 31 will be to DEBIT INTEREST EXPENSE with the amount of$4,000 and CREDIT INTEREST PAYABLE with the amount of $4,000
December 31
Dr Interest expense $4,000
Cr Interest payable $4,000
(6%*$400,000*2/12)
Baker Inc. acquired equipment from the manufacturer on 10/1/11 and gave a noninterest-bearing note in exchange. Baker is obligated to pay $918,000 on 4/1/12 to satisfy the obligation in full. If Baker accrued interest of $9,000 on the note in its 2011 year-end financial statements, what is its imputed annual interest rate?
A. 2%
B. 5%
C. 6%
D. 4%
Answer:
D. 4%
Explanation:
Calculation to determine what is its imputed annual interest rate
Imputed annual interest rate=(2 x $9,000)/$918,000
Imputed annual interest rate=$18,000/$918,000
Imputed annual interest rate=2% for 6 months, (Approximately) or 4% annually
Therefore its imputed annual interest rate is 4% annually
Biopure is a company that manufactures and markets oxygen therapeutics. Its products are Hemopure for human use and Oxyglobin for animal use. Both have been developed as alternatives to red blood cell transfusions. Which of the following would be part of Biopure's internal environment?
a. approval by the U.S.Food and Drug Administration to allow veterinarians to use Oxyglobin.
b. the global market for the raw materials needed to make Hemopure and Oxyglobin
c. the patented manufacturing process that Biopure uses to produce Hemopure and Oxyglobin
d. a competitor developing a similar product
e. changes in patent law
Answer: c. the patented manufacturing process that Biopure uses to produce Hemopure and Oxyglobin
Explanation:
The internal environment of a company refers to those actions and activities that have to do with the way the company is running from within the country such as corporate culture and management.
In patenting, the Patent that was received will be company propriety and as no one outside the company can access it, it is part of the internal environment that works to ensure that that the company is ran smoothly.
The following transactions occurred during July:
a. Received $1,090 cash for services provided to a customer during July.
b. Issued common stock for $5,800 cash.
c. Received $940 from a customer in partial payment of his account receivable which arose from sales in June.
d. Provided services to a customer on credit, $565.
e. Borrowed $7,900 from the bank by signing a promissory note.
f. Received $1,440 cash from a customer for services to be performed next year.
Required:
What was the amount of revenue for July?
Answer:
$1,655
Explanation:
Revenue results from transactions with customers. We recognize revenue when services or goods have been transferred to customers not as when they are paid.
Calculation of Revenue for July :
Transaction a $1,090
Transaction d $565
Total Revenue $1,655
therefore,
The amount of revenue for July is $1,655.
On January 1, Year 1, Missouri Company purchased a truck that cost $56,000. The truck had an expected useful life of 10 years and a $5,000 salvage value. The amount of depreciation expense recognized in Year 2 assuming that Missouri uses the double declining-balance method is:__________
Answer:
Annual depreciation= $8,160
Explanation:
Giving the following information:
Purchase price= $56,000
Useful life= 10 years
Salvage value= $5,000
To calculate the annual depreciation, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year 1:
Annual depreciation= 2*[(56,000 - 5,000) / 10]
Annual depreciation= $10,200
Year 2:
Annual depreciation= 2*[(51,000 - 10,200) / 10]
Annual depreciation= $8,160
a.) Suppose that South Pangean debt is $100 million and the interest rate it pays on that debt is 4 percent. That means its interest payments must be $ million.
b.) If South Pangean expenditures are $30 million without interest payments, that means its expenditures with interest payments are $ million.
Answer:
a
$4 million
b.
expenditures with interest payments
Explanation:
a.
The interest payment is the value of debt taken multiplied by the interest rate on the debt.
In other words, the interest payment is computed using the below formula:
annual interest payment=value of debt*interest rate
value of debt=$100 million
interest rate=4%
annual interest payment=$100 million*4%
annual interest payment=$4 million
b.
The expenditures with interest payments are is the expenditures without interest payments plus interest payments determined as $4million above
expenditures with interest payments=expenditures without interest payments+interest payments
expenditures without interest payments=$30 million
interest payments=$4 million
expenditures with interest payments=$30million+$4million
expenditures with interest payments=$34million
The interest amount for the $ 100 million at 4% interest rate has been $4 million. The expenditure of South Pangean with interest has been $34 million.
(a) Interest has been the amount paid to the sum principal amount based on the interest rate.
Annual interest can be calculated as:
Interest = Interest rate [tex]\times[/tex] Principal sum
Interest = 4% [tex]\times[/tex] $100 Million
Interest = [tex]\rm \dfrac{4}{100}[/tex] [tex]\times[/tex] $100 Million
Interest = $ 4 Million.
(b) The expenditures with interest have been the sum of expenditure and the interest amount.
Expenditure with interest = Expenditure + Interest
Expenditure with interest = $ 30 + $ 4 million
Expenditure with interest = $ 34 million.
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A good is non-rivalrous if:____.
A. It is not possible to prevent an individual from using the good.
B. Those who are unwilling or unable to pay for the good do not obtain its benefits.
C. The quantity of the good is affected by the price a consumer pays for the good.
D. One person's benefit from the good does not reduce the benefit available to other people.
Answer:
D. One person's benefit from the good does not reduce the benefit available to other people.
Explanation:
A product (good) can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
According to the economist Philip Kotler in his book titled "Marketing management" he stated that, there are five (5) levels of a product. This includes;
1. Core benefit.
2. Generic product.
3. Expected product.
4. Augmented product.
5. Potential product.
The core benefit of a product can be defined as the basic (fundamental) wants or needs that is being satisfied, met and taken care of when a customer purchase a product.
A non-rivalrous product (good) is one in which a person's (buyer's) benefit from through the purchase of a good does not reduce or annul the benefit available to other people.
how to vote correctly? explain your answer
Carts Corporation
is trying to determine how long it takes for one product to pass through the production process. The following information was gathered regarding how many days the product spent in various production activities:
Activity Number of Days
Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Assembly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Handling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Painting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Packaging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
a. Which of the above activities are value-added?
b. What is Carts' total cycle time?
c. Determine Carts' manufacturing efficiency ratio.
d. If Carts implements a total quality management program and a just-in-time inventory system, which of the above activities could be eliminated? What would be the change in Carts' manufacturing efficiency ratio?
Answer:
Following are the solution to the given points:
Explanation:
For point a:
[tex]\text{Value added activities = Assembly and Paintings}[/tex]
For point b:
[tex]Activity \ \ \ \ \ \ \ \ \ \ \ \ \ Number \ of \ days \\\\[/tex]
[tex]Inspection \ \ \ \ \ \ \ \ \ \ \ \ \ 4 \\\\ Storage\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3\\\\ Assembly\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 5\\\\ Handling \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2\\\\ Painting \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3\\\\ Packaging \ \ \ \ \ \ \ \ \ \ \ \ \ 1\\\\ Total \ cycle\ time \ \ \ \ \ 18\ days[/tex]
For point c:
[tex]\text{Efficiency ratio of production} = \frac{\text{time added value}}{\text{total cycle time}} \\\\[/tex]
[tex]\text{VAT = 5 days assembled + 3 days in paint = 8 days in painting}[/tex]
[tex]= \frac{8}{18} \\\\ = 44.44\%[/tex]
For point d:
In inspection, TQM will cut back 4 days
JIT reduces storage time by 3 days.
Reduction total = 7 days
Retrofiled The total time of the cycle[tex]= 18 \ days - 7 \ days = 11\ days[/tex]
Revised efficiency of production [tex]=\frac{8 \ days}{ 11\ days} =72.73\%[/tex]
The value added activities are assembly and paintings, the total chart's time is 18 days, the manufacturing ratio is 44.44% and the revised value of efficiency is 72.73%.
For point A:
What are value added activities?Value Added Activities are those activities that modify the product from raw material into finished goods that the customer is willing to pay for.
Hence, the value added activities are assembly and paintings.
For point B:
The chart of the total cycle time is given in the image below:
For option C:
[tex]\text{Production Efficiency Ratio}=\dfrac{\text{Time Value Added}}{\text{Sum of Time Cycle}}\\\\\text{Value Added Time(VAT)}= \text{Assembled 5 Days}+\text{Days in Paint}\\\\=8\text{Days}\\\\=\dfrac{8}{18}= 44.44\%.[/tex]
For option D:
Time Quantity Management = 4 days,
Just-in-time Inventory Shortage Time= 3 days,
Reduction Total = 7 days,
[tex]\text{Total Time of cycle}=\text{18 days - 7 days}\\\\=11\text{days}[/tex]
[tex]\text{Revised Efficiency Production}=\frac{\text{8 days}}{\text{11 days}}\\\\\\=72.73\%.[/tex]
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On January 1, 2018, Splash City issues $340,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $373,648.
Required:
1. Complete the first three rows of an amortization table.
Date Cash Paid Interest Expense Decrease in Carrying Value Carrying Value
1/1/18
6/30/18
12/31/18
On January 1, 2018, Splash City issues $340,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $373,648.
2. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018.
Answer:
Splash City
1. 1. The first three rows of an amortization table.
Date Cash Paid Interest Expense Decrease in Carrying Value
Carrying Value
1/1/18 $0 $373,648
6/30/18 $15,300 $14,946 $354 373,294
12/31/18 $15,300 14,932 368 372,926
2. Journal Entries:
January 1, 2018L:
Debit Cash $373,648
Credit 9% Bonds Payable $340,000
Credit Bonds Premium $33,648
To record the proceeds from the bond issue, including the premium.
June 30, 2018:
Debit Interest Expense $14,946
Debit Amortization of Bonds Premium $354
Credit Cash $15,300
To record the first semiannual interest payment.
December 31, 2018:
Debit Interest Expense $14,932
Debit Amortization of Bonds Premium $368
Credit Cash $15,300
To record the second semiannual interest payment.
Explanation:
a) Data and Calculations:
January 1, 2018:
Face value of 9% bonds issued = $340,000
Proceeds from issue of bonds = 373,648
Premium on issue of bonds = $33,648
Coupon Interest rate = 9%
Payment = Semiannually on June 30 and December 31
Market interest rate = 8%
June 30:
Interest expense = $14,946 ($373,648 * 4%)
Cash payment = 15,300 ($340,000 * 4.5%)
Amortized premium $354
Fair value of bonds = $373,294 ($373,648 - $354)
December 31:
Interest expense = $14,932 ($373,294 * 4%)
Cash payment = 15,300 ($340,000 * 4.5%)
Amortized premium $368
Fair value of bonds = $372,926 ($373,294 - $368)
The financial statements for Highland Corporation included the following selected information:
Common stock $ 1,000,000
Retained earnings $ 770,000
Net income $ 1,020,000
Shares issued 100,000
Shares outstanding 77,000
Dividends declared and paid $ 690,000
The common stock was sold at a price of $31 per share.
1. What is the amount o f additional paid-in capital?
2. What was the amount of retained earnings at the beginning of the year?
3. How many shares are in treasury stock?
Answer:
Highland Corporation
1. The amount of additional paid-in capital is:
= $210,000.
2. The amount of the retained earnings at the beginning of the year is:
= $440,000.
3. The number of shares in treasury stock is:
= 23,000 shares.
Explanation:
a) Data and Calculations:
Common stock $ 1,000,000
Retained earnings $ 770,000
Net income $ 1,020,000
Shares issued 100,000
Shares outstanding 77,000
Dividends declared and paid $ 690,000
Price of common stock = $31 per share
1. The amount of additional paid-in capital is:
Issued stock = 100,000 * ($31 - $10) = $210,000
2. The amount of the retained earnings at the beginning of the year:
Retained earnings at the ending $ 770,000
Add dividend 690,000
Total available for distribution $1,460,000
Less Net income 1,020,000
Retained earnings at the beginning $440,000
3. Treasury stock = 23,000 (100,000 - 77,000)
Acct. Optimistic Likely Activity Variance
ID Description Predecessor Mosta a Pessimistic Time (te) [(b - a)/6]2 Critical 7
(a) (m) (b)
1 Design package None 6 12 24 13 9 x
2 Design product 1 18 19 28 20.33 2.78 x
3 Build package 1 4 7 10 7 1
4 Secure patent 2 21 30 39 30 9 x
5 Build product 2 17 29 47 30 25 x
6 Paint 3,4,5 4 7 12 7.3 1.78 x
7 Test market 6 13 18 19 16 1 x
(m) (b) Time (te) 1 Design package
The Variance for the activity Secure patent equals to:_____.
Answer thats dificult
Explanation: thats dificult
Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation $17,167 Indirect labor 42,545 Factory electricity 4,852 Indirect materials 10,076 Selling expenses 23,885 Administrative expenses 13,435 Total costs $111,960 Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case:
Budgeted Volume (Cases) Processing Hours Per Case Tortilla chips 2,700 0.10 Potato chips 1,500 0.15 Pretzels 3,900 0.12 Total 8,100 If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate. per processing hour
b. Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each of the three products under generally accepted accounting principles. Total Factory Overhead Per-Case Factory Overhead Tortilla chips Potato chips Pretzels Total $
Answer:
Scrumptious Snacks Inc.
a. Single plantwide factory overhead rate = $77.51 per hour
b. Total Factory Per-Case Factory
Overhead Overhead
Tortilla chips $20,928 $7.75
Potato chips 17,440 11.63
Pretzels 36,275 9.30
Total $74,643
Explanation:
a) Data and Calculations:
Budgeted costs:
Factory depreciation $17,167
Indirect labor 42,545
Factory electricity 4,852
Indirect materials 10,076
Total factory overhead = $74,640
Selling expenses 23,885
Administrative expenses 13,435
Total costs $111,960
Production budget and processing hours per case:
Budgeted Volume Processing Total
(Cases) Hours Per Case Hours
Tortilla chips 2,700 0.10 270
Potato chips 1,500 0.15 225
Pretzels 3,900 0.12 468
Total 8,100 963
a. Single plantwide factory overhead rate = $77.51 ($74,640/963)
b. Overhead allocated to each product:
Total Total Budgeted Per Case
Hours Overhead Cases Overhead
Tortilla chips 270 * $77.51 = $20,928 2,700 $7.75
Potato chips 225 * $77.51 = 17,440 1,500 $11.63
Pretzels 468 * $77.51 = 36,275 3,900 $9.30
Total 963 = $74,643 8,100
A non-governmental not-for-profit university in California charges its students tuition of $10,000,000. However, financial aid grants total $2,200,000. In addition, the school receives a $1,000,000 grant restricted for faculty salaries. Of this amount, $300,000 is spent appropriately this year. On the statement of activities, the school reports three categories: (1) revenues and support, (2) net assets released from restrictions, and (3) expenses. Which of the following is not true?
A. In the unrestricted net assets, the revenues and support should total $1.14 million.
B. Unrestricted net assets shows the $160,000 as a direct reduction to the tuition revenue balance.
C. Unrestricted net assets should recognize expenses of $24,000.
D. Unrestricted net assets should show an increase of $24,000 for net assets reclassified.
Answer:
b. In the unrestricted net assets, the revenues and support should total $10,000,000.
Explanation:
Based on the information given the statements that is NOT true will be "IN THE UNRESTRICTED NET ASSETS, THE REVENUES AND SUPPORT SHOULD TOTAL $10,000,000 reason been that in a non-governmental not-for-profit school the the financial grant that was provided by the school will reduce the tuition revenue which therefore means that the FINANCIAL SUPPORT OR GRANTS REVENUES AND SUPPORT should total only the amount of $7,800,000 calculated as ($10,000,000-$2,200,000).
In the trade-off theory, debt levels chosen to balance interest tax shield against the costs of financial distress imply:________
a. an interior optimum (firm value maximizing) debt ratio
b. that investors are irrational, since they require lower returns the hgher the risk
c. that a firm would use little to no debt
d. that a firm would borrow as much as possible
Answer:
a) an interior optimum (firm value maximizing) debt ratio
Explanation:
Trade off Theory is about capital structure of an economic unit. It mentions about the benefit of debt - ie tax saving, as interest on debt is tax deductible; & cost of debt - bankruptcy & insolvency risk, due to fix interest cost.
The theory depicts the debt level, which is best to - balance interest tax shield against the costs of financial distress imply, which implies that it seeks a balance between benefit & cost of debt.
So, the theory finds the best interior optimum (firm value maximising) debt equity ratio.