Answer:
Laesch Company
Journal entries:
Sale of 1,430 units
Debit Cash or Accounts Receivable $40,040
Credit Sales Revenue $40,040
To record the sale of 1,430 units of inventory at $28.
Debit Cost of goods sold $27,170
Credit Inventory $27,170
To record the cost of the goods sold at $19.
Sale of 1,390 units
Debit Cash or Accounts Receivable $38,920
Credit Sales Revenue $38,920
To record the sale of 1,390 units of inventory at $28.
Debit Cost of goods sold $26,410
Credit Inventory $26,410
To record the cost of the goods sold at $19.
Explanation:
Laesch Company can use Journal entries to record its business transactions as they occur on a daily basis. Journal entries show the accounts involved in any transaction and the one to be debited or credited. From the journal, postings are made to the general ledger into individual accounts.
Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows:
Inventory at the start of the year was 975 planters. The desired inventory of planters at the end of each month should be equal to 25% of the following month's budgeted sales. Each planter requires four pounds of polypropylene (a type of plastic). The company wants to have 30% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.20 per pound.
Number of planters to be sold
January 3900
February 3200
March 3700
April 4400
May 4900
Required:
Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter.
Answer:
Production budget for the first quarter of 202x
Particulars January February March Total
Expected sales 3,900 3,200 3,700 10,800
Required ending 800 925 1,100 2,825
inventory
Less beginning 975 800 925 2,700
inventory
Required number 3,725 3,325 3,875 10,925
of units to be produced
The production budget for the first quarter includes the months of January, February and March. It doesn't include any materials, since they are included in the materials purchase budget.
The technique used to help strategic managers choose among alternative choices by defining the task environment, developing a set of various forecasts, and using pro forma financial statements is called________.
1. Decision trees.
2. SWOT analysis.
3. Industry scenarios.
4. CAPM [Capital Asset Pricing Model].
Answer:
Corporate scenarios is the right answer
Explanation:
The correct answer is not listed in the options. Corporate scenarios is the answer to the question.
Corporate scenarios can be said to be pro forma balance sheets and income statements which do the job of forecasing what the effect of individual alternative strategy and their different programs may likely have on the division and return on investment.
Therefore none is the answer
Ngân hàng thương mại có tỷ lệ an toàn vốn tối thiểu là 8% và tỷ suất sinh lời trên tài sản có hằng năm như sau : năm 1998 có ROA là 14.3% , năm 1999 có ROA là 17.0% , năm 2000 có ROA là 15.1% , năm 2001 có ROA là 12.2% , năm 2002 có ROA 9.8%, năm 2003 có ROA là 7.5% , năm 2004 có ROA là 13.8% , năm 2005 có ROA là 13.5% , năm 2006 có ROA là 16.3% , năm 2007 có ROA là 15.7% , năm 2008 có ROA là 15.8% , năm 2009 có ROA là 16.0% , năm 2010 có ROA là 14.9% , năm 2011 có ROA là 14.6% , năm 2012 có ROA là 12.4% . yêu cầu : ước lượng chỉ số Z đánh giá nguy cơ phá sản ?
Answer:
???????
Explanation:
The law of comparative advantage indicates that if a group of individuals wants to maximize their joint output, then each good should be supplied by
Answer:
b. the low opportunity cost producer.
Explanation:
Here are the options to this question :
a. the person with the lowest wage rate.
b. the low opportunity cost producer.
c. the person with the most advanced technical knowledge.
d. the person that can accomplish the task most rapidly.
a country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
For example, country A produces 10kg of beans and 5kg of rice. Country B produces 5kg of beans and 10kg of rice.
for country A,
opportunity cost of producing beans = 5/10 = 0.5
opportunity cost of producing rice = 10/5 = 2
for country B,
opportunity cost of producing rice = 5/10 = 0.5
opportunity cost of producing beans = 10/5 = 2
Country A has a comparative advantage in the production of beans and country B has a comparative advantage in the production of rice
Jane Cagle’s company wants to establish kanbans to feed a newly established work cell. The following data have been provided. How many kanbans are needed?Daily demand 750 unitsLead time 1/2 daysSafety stock 1/4 daysKanban size 25 untis
Answer:
22.5
Explanation:
According to the given situation, the computation of the number of kanbans is shown below:-
Number of kanbans needed = [(Demand × Lead time) + (Demand × Safety stock)] ÷ Kanban size
= (750 × 0.5) + (750 × 0.25) ÷ 25
= 22.5
Therefore for computing the number of Kanbans we simply applied the above formula by considering all items
Dan's cat Empurrium is planning for the new opening in either Seattle, Everett or Bellevue! Using historical data from the first location, management has determined that over a 9 hour workday, on average we get a steady stream of customers throughout the day totaling 1,033 per day. Our new training program ensures that our staff can serve a customer within 2.7 minutes on average.
a. Your hiring department wants to know what the lowest number of staff we should hire.
b. How your queue should be set up in the new store and why? This should include the style of line and the number of servers. Justify your decisions using costs and queueing metrics?
Answer:
add all together 19 x1000
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $345,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows:Product Selling Price Quarterly OutputA $ 19.00 per pound 12,800 poundsB $ 13.00 per pound 20,000 poundsC $ 25.00 per gallon 4,000 gallonsEach product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below:Product Additional Selling Processing Costs PriceA $ 68,500 $ 24.00 per poundB $ 98,250 $ 19.00 per poundC $ 41,600 $ 33.00 per gallonRequired:1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point?
2. Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further?
Answer and Explanation:
1. The computation of financial advantage (disadvantage) of further processing is shown below:-
Particulars Product A Product B Product C
Selling price after further
processing a 24.00 19.00 33.00
Selling price at the
split-off point b 19.00 13.00 25.00
Incremental revenue per
pound or gallon 5.00 6.00 8.00
(c = a - b)
Total quarterly output in
pounds or gallons d 12,800 20,000 4,000
Total incremental
revenue $64,000 $120,000 $32,000
(e = c × d)
Total incremental
processing costs f $68,500 $98,250 $41,600
Financial advantage (disadvantage)
of further
processing ($4,500) $21,750 ($9,600)
(g = e - f)
2. Product A and Product C will be sold at the split-off point
Therefore, Product B will be processed further
Victorinox is the name of the company that manufactures Swiss army knives. As a result of new regulations governing what passengers could carry with them on airplane trips, the company has lost 30 percent of its business. In other companies, this might have led to business failure, but because Victorinox had _____ plans, it was able to continue to operate profitably.
Answer: contingency plans
Explanation:
A contingency plan is a plan that's designed in order to take into consideration ever possible event or circumstance that may occur in the future.
The aim of a contingency plan is to help an organization hat back to its feet as soon as possible when an unforeseen event o circumstance happens.
Suppose the benefit of owning a painting, in terms of your personal enjoyment, is worth 5% of the value of the painting. If the expected rate of return on stocks is 7%, then the painting should grow in value by _________ per year.
Answer:
7%
Explanation:
It would grow by 7% each year which is the rate of return on stocks
Since the expected rate of return is 7%, then, the painting should grow in value by 2% per year.
Given Information
Expected rate of return = 7%
Present rate of return = 5%
Growth rate = Expected rate of return - Present rate of return
Growth rate = 7% - 5%
Growth rate = 2%
In conclusion, the painting should grow in value by 2% per year.
Read more about expected rate of return
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You are aware that your neighbor trades stocks based on confidential information he overhears at his workplace. This information is not available to the general public. This neighbor continually brags to you about the profits he earns on these trades. Given this, you would tend to argue that the financial markets are at best _____ form efficient.
Answer:
Semi-strong Form Efficient.
Explanation:
There are three levels of market efficiency as weak, semi-strong and strong.
In a semi-strong form efficient market, the stock prices change independently of the previous return points and the current information so it is not possible to predict the future stock prices.
The example given in the question, which states that the neighbor has non-public information, can be classified as a semi-strong form efficient market.
I hope this answer helps.
A self-employed client has an annual income of $200,000 and is in a high tax bracket. He is not covered by a retirement plan and would like to make the maximum contribution to one to reduce his taxable income. He believes that he will be in a lower tax bracket once he retires. The BEST recommendation is to contribute to a:
Answer:
Simplified Employee Pension IRA (SEP)
Explanation:
Simplified employee pension IRA is most suitable for this client because it is easy to set up and operate. Most importantly it requires a maximum of 20% of the contributor's income. The amount required is capped at $54,000.
In this case 20% of the employee's income is 0.20 * 200,000 = $40,000
So this is a right fit.
Roth IRA will not work because maximum contribution is $5,500
Traditional IRA will also not work because it requires a maximum contribution of $5,500 or when it is a 401(k) plan a maximum of $18,000. It is also expensive to set up and operate as it is designed for big companies.
Wayne, Inc., wishes to expand its facilities. The company currently has 5 million shares outstanding and no debt. The stock sells for $40 per share, but the book value per share is $10. Net income is currently $4 million. The new facility will cost $50 million, and it will increase net income by $820,000. Assume a constant price-earnings ratio.
a-1. Calculate the new book value per share. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
a-2. Calculate the new EPS. (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
a-3. Calculate the new stock price. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
a-4. Calculate the new market-to-book ratio. (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
b. What would the new net income for the company have to be for the stock price to remain unchanged? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)
Answer:
a-1. Calculate the new book value per share.
current book value = stocks outstanding x book value = 5,000,000 x $10 = $50,000,000
new book value = $50,000,000 + $50,000,000 = $100,000,000
new stocks issued = $50,000,000 / $40 = 1,250,000
total stocks outstanding = 5,000,000 + 1,250,000 = 6,250,000
new book value per stock = $100,000,000 / 6,250,000 = $16
a-2. Calculate the new EPS.
old EPS = $4,000,000 / 5,000,000 = $0.80 per stock
new EPS = $4,850,000 / 6,250,000 = $0.776 per stock
a-3. Calculate the new stock price.
price to earnings ratio = $40 / $0.80 = 50
new stock price:
50 = new stock price / $0.776
new stock price = 50 x $0.776 = $38.80
a-4. Calculate the new market-to-book ratio.
market to book ratio = market capitalization / book value = $242,500,000 / $100,000,000 = 2.425
b. What would the new net income for the company have to be for the stock price to remain unchanged?
0.8 = net income / 6,250,000
net income = 6,250,000 x 0.8 = $5,000,000
Which of these inventory changes would be accounted for prospectively? Select one: a. FIFO to LIFO, but not LIFO to FIFO b. LIFO to FIFO, but not FIFO to LIFO c. Both FIFO to LIFO and LIFO to FIFO d. Neither FIFO to LIFO nor LIFO to FIFO
Answer: a. FIFO to LIFO, but not LIFO to FIFO
Explanation:
Well the inventory changes which would likely be accounted for is the FIFO ( first in first out system ) to LIFO ( last in first out system ). But not the LIFO ( last in first out ) to FIFO ( first in first out ). This system are mostly used in sales where for FIFO the first goods to arrive leaves first and for LIFO the opposite of FIFO
A security company offers to provide CCTV coverage for a parking garage for ten years for an initial payment of $45,000 and additional payments of $25,000 per year. What is the equivalent annual annuity of this deal, given a cost of capital of 4%?
Answer:
Equivalent Annual Annuity =$30,548.09
Explanation:
The equivalent annuity is the annual cash cash flows that is the same in value to the present value of the total cost associated with providing the CCTV coverage.
Equivalent Annual Annuity = Total PV of cost /Annuity factor
To determine the total prsent value of cost associated with CCTV would sum the present value of the additional payment for 10 years and the initial cost.
Initial cost - 45,000
Additional payment = 25,000
PV of additional payment = A× 1-(1+r)^(-n)/r
= 25,000 × 1- 1.04^(-10)/0.04 = 202,772.39
Total PV of cost = 202,772.39 + 45,000 = 247,772.39
Total PV of cost = 247,772.39
Equivalent Annual Annuity = Total PV of cost /Annuity factor
Annuity factor = 1-(1+r)^(-n)/r = ( 1- 1.04^(-10)/0.04) = 8.1109
Equivalent Annual Annuity =247,772.39 /8.1109 = 30,548.09
Equivalent Annual Annuity =$30,548.09
A stock has an expected return of 10.8 percent, the risk-free rate is 4 percent, and the market risk premium is 5 percent. What must the beta of this stock be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
β = 1.36
Explanation:
Expected return = Rf+β×Rp
Rf is risk free return
Rp is risk premium
β is Beta
10.8% = 4%+β×5%
5*β= 10.8% - 4%
β = 6.8%/5%
β = 1.36
Hence, the Beta of this stock = 1.36
To judge whether a particular diversification move has good potential for building added shareholder value, the move should pass the following tests:___________.
A) the attractiveness test, the barrier-to-entry test, and the growth test.
B) the strategic fit test, the resource fit test, and the profitability test.
C) the barrier-to-entry test, the growth test, and the shareholder value test.
D) the attractiveness test, the cost-of-entry test, and the better-off test.
E) the resource fit test, the strategic fit test, the profitability test, and the shareholder value test.
Answer:
D) the attractiveness test, the cost-of-entry test, and the better-off test.
Explanation:
To judge a diversification change, an organization needs to pass the attractiveness tests, the entry cost test and the best situation test.
These tests will be decisive to analyze the potential that diversification will have to create added value for the shareholder.
The attractiveness test will list the ability that the market has to ensure that there is a safe return on investments.
The cost-of-entry will aim to ensure that when entering a new sector, the organization does not have higher costs that can influence the generation of profitability.
Finally, the better-off test will analyze whether the planned diversification will be so profitable that it will help to improve the performance of the integration of organizational businesses.
Answer:
OPTION d
Explanation:
Pharoah Company has a factory machine with a book value of $90,800 and a remaining useful life of 7 years. It can be sold for $27,200. A new machine is available at a cost of $407,400. This machine will have a 7-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $640,100 to $581,800. Prepare an analysis showing whether the old machine should be retained or replaced. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the third column, enter net income increases as positive amounts and decreases as negative amounts. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer:
Analysis of Total cost over the period of 7 years
Retain Old Buy New Total
1.Variable Operating Cost $640,100 $581,800 ($58,300)
2.Old Machine Book Value
Retain; Annual Depreciation $12,971 $0 ( $12,971)
Replace: Lump sum Written Off $0 $90,800 $90,800
3.Old Machine Disposal Value $0 ($27,200) ($27,200)
4.Initial Purchase Cost New $0 $407,400 $407,400
Total Cost $653,071 $1052,800 $399,729
Explanation:
Replacement of Machine is a Capital Investment or Long term decision.One aspect of asset replacement is how to deal with book value (written down value) of old equipment.
Bland Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2003, and charged the $4,200 premium to Insurance expense. At its December 31, 2003, year-end, Bland Foods would record which of the following adjusting entries?A) Insurance expense 875 Prepaid insurance 875
B) Prepaid insurance 875 Insurance expense 875
C) Insurance expense 875
Prepaid insurance 3,325
Insurance payable 4,200
D) Prepaid insurance 3,325
Insurance expense 3,325
Answer:
D) Prepaid insurance 3,325
Insurance expense 3,325
Explanation:
insurance cost per month = $4,200 / 24 months = $175 per month
August, September, October, November and December = 5 months = $875
$4,200 - $875 = $3,325
The correct journal entries should have been:
August 1, 2003, purchased 2 year insurance policy
Dr Prepaid insurance 4,200
Cr Cash 4,200
December 31, 2003, accrued insurance expense
Dr Insurance expense 875
Cr Prepaid insurance 875
But, since the purchase was incorrectly journalized as:
Dr Insurance expense 4,200
Cr Cash 4,200
the adjusting entry must be:
Dr Prepaid insurance 3,325
Cr insurance expense 3,325
You bought a stock one year ago for $49.52 per share and sold it today for $57.04 per share. It paid a $1.14 per share dividend today. How much of the return came from dividend yield and how much came from capital gain?
Answer:
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I enjoy working with this team because we all trust each other and respect what each person brings to the team. Which characteristic of team excellence am I displaying
Answer: Collaborative climate
Explanation:
When an individual enjoys working with this team because they all trust each other and respect what each person brings to the team, the characteristic of team excellence displayed is referred to as collaborative climate.
Collaborative teams come together and work together in order to achieve the aims and objectives of the organization. A collaborative team bonds and trust each other.
A monopolist's maximized rate of economic profits is $1500 per week. Its weekly output is 500 units, and at this output rate, the firm's marginal cost is $32 per unit. The price at which it sells each unit is $42 per unit. At these profit and output rates, what are the firm's average total cost and marginal revenue?
Answer:
Average total cost = $39
Marginal revenue = $32 per unit
Explanation:
The computation of average total cost and marginal revenue is shown below:-
Average total cost = Selling price - (Economic profit ÷ Weekly output)
= $42 - ($1,500 ÷ 500)
= $42 - 3
= $39
Marginal revenue = Marginal cost
So,
Marginal revenue = $32 per unit
Therefore for computing the average total cost and marginal revenue we simply applied the above formula.
Explain about pricing objectives
Answer:
Some examples of pricing objectives include maximising profits, increasing sales volume, matching competitors' prices, deterring competitors – or just pure survival. Each pricing objective requires a different price-setting strategy in order to successfully achieve your business goals
Answer:
Pricing objectives refer to the goals that drive how your business sets prices for your product or service. These objectives can and should apply to pricing for both new and existing customers. The direction provided by pricing objectives is crucial to adjusting prices over time in order to meet your objectives.
At what phase should security planning begin in a conceptual and proposed "from the start" international acquisition program?
Answer:
Material Solution Analysis
Explanation:
This is a phase in which potential solutions are accessed and analyzed for an Initial Capabilities Document (ICD) and to meet the criteria for the next program of the MDA.
This planning stage of MSA is necessary to choose the best available technology that would meet the needs of a client.
Therefore, the phase that security planning begins in a conceptual and proposed "from the start" international acquisition program is Material Solution Analysis.
A friend wants to borrow money from you. He stated that he will pay you $2500 every 6 months for 7 years with the first payments exactly 3 years and six months from today. The interest rate is 4.8 percent compounded semiannually. What is the value of the payments today?
Answer:
The value of the payments today is $35.00.
Explanation:
The Value of Payments today is known as the Present Value (PV) and is calculated as follows :
Pmt = - $2,500
P/yr = 2
n = 7 × 2 = 14
Fv = 0
Pv = ?
Using a Financial Calculator, the Present Value (PV) of the payments would be $35.00
Company A has 800 employees, and it decides to grant each of the employees 50 share options as part of its new rewards plan. The options are exercisable over 5 years and subject to a 3-year service condition. The fair value of each option at the grant date is $16. The company estimates that 80% of its employees will meet the service condition required for receiving the options. Calculate the total share-based payment expense for Company A assuming that 80% of the employees actually meet the service condition.
Review Later
$853,333
$170,667
$512,000
$341,333
Answer:
$512,000
Explanation:
Because the service condition is 3 years, the total share-based payment expense will be recognized over 3 years. The expense recognized in each year is calculated as:
Year 1 = 50 options x 800 employees x 80% x $16 x 1/3 years = $170,667
Year 2 = 50 options x 800 employees x 80% x $16 x 2/3 years - $170,667 = $170,667
Year 3 = 50 options x 800 employees x 80% x $16 x 3/3 years - $170,667 x 2 = $170,667
Total share-based payment expense = $170,667 + $170,667 + $170,667 = $512,000
Granite Stone Creamery sold ice cream equipment for $17,600. Granite Stone originally purchased the equipment for $94,000, and depreciation through the date of sale totaled $73,000. What was the gain or loss on the sale of the equipment
Answer:loss on the sale of the equipment =$3,400
Explanation:
---We first compute the book value of the equipment
Cost of asset=$94,000
accumulated depreciation = $73,000
Book Value of assets = Cost of asset-accumulated depreciation
= $94,000 - $73,000= $21,000
---Gain or Loss on the asset
Sale value of equipment = $17,600
Book value of equpment= $21,000
loss on sale of equipment = Sale value of equipment-Book value of equipment=$17,600- $21,000= -$3,400
Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 135,000 units per year. The total budgeted overhead at normal capacity is $877,500 comprised of $337,500 of variable costs and $540,000 of fixed costs. Byrd applies overhead on the basis of direct labor hours.
During the current year, Byrd produced 78,100 putters, worked 87,600 direct labor hours, and incurred variable overhead costs of $152,295 and fixed overhead costs of $452,650.
Required:
Compute the predetermined variable overhead rate and the predetermined fixed overhead rate.
Answer:
Results are below.
Explanation:
Giving the following information:
Estimated direct labor hours= 135,000
Estimated varaible overhead= $337,500
Estimated fixed overhead= $540,000
To calculate the predetermined 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
Variable:
Predetermined manufacturing overhead rate= 337,500/135,000= $2.5 per direct labor hour
Fixed:
Predetermined manufacturing overhead rate= 540,000/135,000= $4 per direct labor hour
Suppose Cho is considering emigrating from her home country.A fictional country of Flaxon has the same policies and institutions as Cho's home country, except that it has greater price stability. If Cho's decision to emigrate is based solely on the prospects for economic growth, she would
Answer: Migrate to Flaxon
Explanation:
If Flaxon country has the same policies and institutions as Cho's home country but also has greater price stability, Cho would emigrate if she wanted more economic growth because Price stability contributes to the growth of the economy.
Price stability means that the country is not going to experience inflation (deflation) that is too high (low) and lasts too long as well as one that is erratic.
This benefits the economy because;
Savings will not be easily eroded by inflation.Decisions can be made easier as inflation rates can be better predictable. For instance, people can save or invest at a particular rate that they know will bring them real return as it will be over the inflation rate. Unexpected deflation will not cause companies to make losses which can increase unemployment and company shutdowns and,Financial institutions can borrow out loans at more stable rates for investments because in a less stable market they would have to charge higher rates to ensure that they do not make losses should inflation change. These stable rates will attract companies and individuals who will use the funds for investment and improve the economy.The following information describes the production activities of Mercer Manufacturing for the year.
Actual direct materials used 28,000 lbs. at $4.90 per lb.
Actual direct labor used 8,650 hours for a total of $174,730
Actual units produced 51,600
The budgeted standards for each unit produced are 0.50 pounds of direct material at $6.85 per pound and 10 minutes of direct labor at $21.20 per hour.
1. Compute the direct materials price and quantity variances. Do not round intermediate calculations.
2. Compute the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. Do not round intermediate calculations.
Answer:
Actual Quantity = 28,000
Actual Price = 4.90
Standard Quantity = 25,800
Standard Price = 4.85
1)a. Direct Material Price variance = (Standard price – Actual Price)*Actual Quantity
= (4.85 - 4.90) * 28,000
= $1,400 U
b. Direct Material Quantity variance = (Standard Quantity – Actual Quantity)*Standard price
= (51,600*0.5 - 28,000)*4.85
= $10,670 U
2) a. Direct Labor Rate Variance = (Standard Rate – Actual Rate)*Actual Hours
= (21.20 - 20.2) * 8,650
= $8,650 F
b. Direct Labor Efficiency variance = (Standard Hours – Actual Hours)*Standard rate
= (51,600*1/6 - 8,650) * 21.20
= $1,060 U
Using the following accounts and balances, prepare the "Stockholders’ Equity" section of the balance sheet using 20,000 shares of common stock authorized, and 1,000 shares have been reacquired.
Common Stock, $ 120 par $48,000,000
Paid In Capital from Sale of Treasury Stock 45,00,000
Paid In Capital in Excess of Par—Common Stock 64,00,000
Retained Earnings 63,680,000
Treasury Stock 5,200,000
Answer and Explanation:
The preparation of the stockholder equity of the balance sheet is presented below:
Shares issued $48,000,000
Add: Paid-In Capital in Excess of Par $6,400,000
Add: Paid in Capital from Sale of Treasury Stock $4,500,000
Add: Retained Earnings $63,680,000
Less: Treasury Stock, 40,000 shares -$5,200,000
Total stockholders' equity $117,380,000