Answer:
a.
Account Title Debit Credit
Research and Development Expense $36,000,000
Software Development Costs $18,000,000
Cash $54,000,000
b. The higher of the Straight-line and Percentage Revenue should be used:
Straight Line method:
= Software Development Costs / useful life
=18,000,000/5
= $3,600,000
Percentage Revenue method:
= Current revenue / Total revenue * Software Development Costs
= 27,000,000/90,000,000 * 18,000,000
= $5,400,000
Amortization = $5,400,000
c. $12,600,000
= Software development cost - Amortization for 2022
= 18,000,000 - 5,400,000
= $12,600,000
Money is: multiple choice any good that buyers and sellers have a desire to purchase, use, or hold. anything that both buyers and sellers will accept in exchange for goods and services. the gold and silver behind the currency and the coins that are issued by the government. only the printed paper currency and the coins that are produced by the government.
Answer:
Money is: any good that buyers and sellers have a desire to purchase, use, or hold. only the printed paper currency and the coins that are produced by the government. anything that both buyers and sellers will accept in exchange for goods and services. the gold and silver behind the currency and the coins that are issued by the government.
Explanation:
if it is helpful..... plzz like and follow
Answer:
Money is: anything that both buyers and sellers will accept in exchange for goods and services
Explanation:
Money is not a good to be desired, but is a representation of value. Money is anything that is accepted as payment for goods or services or as repayment of debt. According to economists, money refers to something beyond just paper bills and coins. It is a medium of exchange, unit of account and store of value. Money can be used to transport purchasing power from one time period to another.
Identifying effects of transactions using the accounting equation LO PI
Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions.
A. Owner invested $59,000 cash in the company along with equipment that had a $14,000 market value.
B. The company paid $2,000 cash for rent of office space for the month.
C. The company purchased $11,000 of additional equipment on credit (payment due within 30 days).
D. The company completed work for a client and immediately collected the $2,300 cash earned.
E. The company completed work for a client and sent a bill for $7,600 to be received within 30 days.
F. The company purchased additional equipment for $5,800 cash.
G. The company paid an assistant $3,400 cash as wages for the month.
H. The company collected $4,500 cash as a partial payment for the amount owed by the client in transaction e.
I. The company paid $11,000 cash to settle the liability created in transaction c.
J. Owner withdrew $1,200 cash from the company for personal use.
Required:
Enter the impact of each transaction on individual items of the accounting equation.
Answer:
A. Asset as cash will increase by $59,000, asset in equipment will increase $14,000
B. Asset side in increased and decreased
C. Asset and liability will increase by $11,000
D. Asset will increase
E. Asset will increase
F. Asset will increase and decrease by $5,800
G. Asset will decrease
H. Asset will increase
I. Liability will decrease
J. Asset and capital will decrease by $1,200
Explanation:
Accounting equation is Asset = Liabilities + Capital
Accounting equation is affected in business transaction. The transaction in business have different effects some transaction are like hybrid which impacts the multiple accounts balances. There are some transactions which just involve asset side transaction increase and decrease on the same account this will offset the balance and no effect on equation.
Question 2: Allocating costs using ABC You have an ABC system with three pools number of cost driver units total cost in the pool product A product B total pool 1 $20,000 4,000 DL$ 6,000 DL$ 10,000 DL$ pool 2 $15,000 20 setups 30 setups 50 setups pool 3 $10,000 50 hours 150 hours 200 hours Compute the activity rates and the allocated costs for products A and B. activity rate allocated costs for product A allocated costs for product B pool 1 $ per DL$ $ $ pool 2 $ per setup $ $ pool 3 $ per hour $ $ total allocated costs for each product $ $
Answer:
Results are below.
Explanation:
To calculate the activities rates, we need to use the following formula on each pool:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Pool 1= 20,000/10,000= $2 per direct labor dollar
Pool 2= 15,000/50= $300 per setup
Pool 3= 10,000/200= $50 per hour
Now, we can allocate costs to each product:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product A:
Pool 1= 2*4,000= 8,000
Pool 2= 300*20= 6,000
Pool 3= 50 *50= 2,500
Total allocated costs= $16,500
Product B:
Pool 1= 2*6,000= 12,000
Pool 2= 300*30= 9,000
Pool 3= 50 *150= 7,500
Total allocated costs= $28,500
:How is a ‘provision for reserve’ in a balance sheet, a liability or an asset. Explain.
Explanation:
A provision is indeed an item freed up from either a company's revenue to cover potential future costs or a probable property price decrease. It shows up as spending on the financial statements and is documented as a current liabilities.
Journalize the following transactions for the Evans Company. Assume the company uses a perpetual inventory system.
a. Sold merchandise for $645 cash. The cost of goods sold was $375.
b. Sold merchandise for $432 and accepted VISA as the form of payment. The cost of goods sold was $195.
c. Sold merchandise on account for $670. The cost of goods sold was $438.
d. Paid credit card fees for the month of $85.If an amount box does not require an entry, leave it blank.
Answer:
Evans Company
General Journal
Part a.
Debit : Cash $645
Debit : Cost of goods sold $375
Credit : Sales Revenue $645
Credit : Merchandise $375
Part b.
Debit : Cash $432
Debit : Cost of goods sold $195
Credit : Sales Revenue $432
Credit : Merchandise $195
Part c.
Debit : Accounts Receivable $670
Debit : Cost of goods sold $438
Credit : Sales Revenue $670
Credit : Merchandise $438
Part d.
Debit : Credit Card fees $85
Credit : Cash $85
Explanation:
The Perpetual inventory system calculates the cost of sale and inventory balance on each and every sale made hence the journals above.
Hypothetically, your MNE is the largest foreign investor in Vietnam, where dissidents and religious leaders are reportedly being persecuted. As the country manager there, you understand that the MNE is being pressured by NGOs to help the oppressed groups in Vietnam. But you also understand that the host government would be upset if your firm were found to engage in local political activities deemed inappropriate. These alleged activities, which you personally find distasteful, are not directly related to operations. How would you proceed
Answer:
69
Explanation:
i think its 69
If your body does not have enough nutrients, it will begin to
a. shut down
b. make its own
C. find others
d.
use energy
Please select the best answer from the choices provided
А
B
Ο Ο Ο Ο
C
Answer:
Its A i just did the test its not D
Explanation:
Classification of Transactions
Below are several transactions that took place in Seneca Company last year:
A. Paid suppliers for inventory purchases.
B. Bought equipment for cash.
C. Paid cash to repurchase its own stock.
D. Collected cash from customers.
E. Paid wages to employees.
F. Equipment was sold for cash.
G. Common stock was sold for cash to investors.
H. Cash dividends were declared and paid.
I. A long-term loan was made to a supplier.
J. Income taxes were paid to the government.
K. Interest was paid to a lender.
L. Bonds were retired by paying the principal amount due.
Required:
Indicate how each of the above transaction would be classified on a statement of cash flows.
Answer:
Classification on the statement of cash flows will be as follows :
A. Cashflow from Operating Activities
B. Cashflow from Investing Activities
C. Cashflow from Financing Activities
D. Cashflow from Operating Activities
E. Cashflow from Operating Activities
F. Cashflow from Investing Activities
G. Cashflow from Financing Activities
H. Cashflow from Financing Activities
I. Cashflow from Financing Activities
J. Cashflow from Operating Activities
K. Cashflow from Operating Activities
L. Cashflow from Financing Activities
Explanation:
There are three categories of classifying Cash flows on the Statement of Cash flows which are : Cashflow from Operating Activities, Cashflow from Investing Activities and Cashflow from Financing Activities.
SCENARIO The Forest Stewardship Council (FSC) was formed in 1993 to promote sustainable management of the world’s forests. The FSC quickly began to certify lumber based on whether the forest that it was taken from was managed according to its guidelines. Soon thereafter, several builders in California began to specialize in the construction of "Green" buildings that only used FSC-certified lumber. This was seen as a viable business because some customers were willing to pay a premium to have their projects completed with FSC lumber. These builders have an opportunity to order this lumber once every 3 months because the forests involved must be harvested in accordance with certain restrictions. Consequently, builders who focused on this market were forced to hold large inventories. On the other hand, builders who only used "traditional" wood which was not FSC-certified could order on a just-in-time basis, meaning they did not have to hold any lumber in their own lumberyards. Consider the following 3 scenarios and related questions.
1. A green builder must decide how much FSC lumber to purchase to meet demand for the next 3 months. Demand is normally distributed with a mean of 40,000 board-feet and a standard deviation of 15,000 board feet. (A board-foot is a standard unit for lumber.) The purchase price for the builder is $4.00 per board-foot. At the end of a 3-month period the wood will dry and may warp, reducing its value. Of any lumber remaining in the builder’s lumber yard at the end of the 3-month period, approximately half will be worthless. The builder will use any wood that is not warped in the next period. However, buying the wood now, rather than in the next period incurs a holding cost of 4% of the purchase cost. If the builder has too little FSC certified wood to meet demand, he will be forced to substitute traditional lumber which he can buy for $3.35 per board foot. In addition, the green builder assigns a shortage cost of $2.00 per board foot for the loss of good will and damage to his reputation. How many board feet of FSC certified lumber should the builder purchase?
2. Suppose a lumber-yard (Nice Lumber) agrees to serve as a distributor for a builder. This means Nice Lumber will stock the FSC-certified lumber for one green builder. Nice Lumber will pay $4.00 per board foot for FSC-certified wood and sell it to the builder for $4.20 per board foot. If demand exceeds the inventory, the green builder will buy traditional wood from a different lumber yard to meet the demand at price of $3.20 per board-foot. In addition to the lost sale, Nice assigns a cost of $2.00 per board foot of shortage of FSC lumber. If the inventory of FSC-certified lumber exceeds demand, Nice will immediately substitute the excess FSC certified lumber to meet demand from other customers and reduce its purchases of traditional lumber accordingly. Nice pays $3.20 per board foot for traditional lumber. How many board feet of FSC certified lumber should Nice Lumber purchase?
3. Suppose Nice Lumber will stock the FSC certified lumber for 10 green builders. For each of these builders, demand is normally distributed with a mean of 40,000 board feet and a standard deviation of 15,000 board feet, and each builder’s demand is independent of other builders’ demand. How many board feet of FSC certified lumber should Nice lumber purchase per builder?
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
Board-Feet = Mean + Z*SD
Where SD = Standard Deviation
Mean = 40,000;
SD= 15,000;
Z = NORMSINV(SL); SL (Service Level) = Cu/(Cu + Co)
1.
Solution:
Cu = $(4 - 3.35 + 2)
Since he would gain $4 - $3.35 by substituting lumber for conventional wood, he would lose $2 in goodwill and credibility loss.
Cu = 2.65
And,
Co = (4 - 2 + 4% x 4)
Since half of the lumber becomes scrap after three months and he pays 4% as a holding cost for keeping $4/unit as inventory, he incurs a holding cost of 4%.
Co = 2.16
Service Level SL = Cu/(Cu+Co)
Service Level SL = 2.65/(2.65+2.16)
Service Level SL = 0.550936
Z = NORMSINV(0.550936)
Z = 0.12
Hence,
Board-Feet = Mean + Z*SD
Board-Feet = 41,920.38
2.
Solution:
Cu = $(2 - 4.2 + 3.2)
Since he would gain $4.2-$3.2 by substituting lumber for conventional wood, he would lose $2 in goodwill and credibility loss.
Cu = 1
In the event of overstocking, he does not specify the price at which he will replace FSC lumber with conventional lumber. Only his price, which is $3.2/board-foot for traditional lumber, is issued.
Co = 4 - 3.4
since he'll have to market the excess FSC lumber inventory at conventional wood's price; ASSUMING traditional lumber rate at the rate $3.4/board-feet
Co = 0.6
So,
Service Level SL = Cu/(Cu+Co) = 1/(1+0.6)
SL = 0.625
Z = NORMSINV(0.625)
Z = 0.318639
Board-Feet = 44,779.59
3.
Solution:
Here, everything will be same except the formula for calculate the Board -Feet. New formula is:
Board-Feet = Mean + [tex]\frac{Z * SD}{\sqrt{n} }[/tex]
Here, n = 10
Just plugging in the values, we get:
Board-Feet = 40,000 + [tex]\frac{0.318639 * 15000}{\sqrt{10} }[/tex]
Board-Feet = 41,511.44
Gundy Corporation produces area rugs. The following per unit cost information is available: direct materials $15, direct labor $9, variable manufacturing overhead $6, fixed manufacturing overhead $8, variable selling and administrative expenses $4, and fixed selling and administrative expenses $6. Using a 40% markup on total per unit cost, compute the target selling price.
Answer:
$67.2
Explanation:
With regards to the above,
Total unit cost = $15 + $9 + $6 + $8 + $4 + $6 = $48
Target selling price = Total unit cost × (1 + mark up)
Since markup percentage is 40% or 0.40
Therefore,
Target selling price = $48 × (1 + 0.4)
= $48 × 1.4
= $67.2
Therefore the target selling price is $67.2
Give me a couple countries that have a low and high quality of life index
Answer:
Countries with have mediocre quality of Life index: Puerto Rico, South Korea, Greece, Bulgaria, Romania
Assume that a Parent company owns 100% of its Subsidiary. On January 1, 2016 the Parent company had a $1,000,000 (face) bond payable outstanding with a carrying value of $1,070,000. The bond was originally issued to an unaffiliated company. On that same date, the Subsidiary acquired the bond for $996,000. During 2016, the Parent company reported $630,000 of (pre-consolidation) income from its own operations (i.e. prior to any equity method adjustments by the Parent company) and after recording interest expense. The Subsidiary reported $420,000 of (pre-consolidation) income from its own operations after recording interest income. Related to the bond during 2016, the parent reported interest expense of $110,000 while the subsidiary reported interest income of $95,000.
Determine the following amounts that will appear in the 2016 consolidated income statements.
a. Interest income from bond investment
b. Interest expense on bond payable
c. Gain (loss) on constructive retirement of bond payable
d. Consolidated net income
Answer:
a. Interest income from bond investment
intercompany transaction gains or losses are eliminated when preparing consolidated financial statements
b. Interest expense on bond payable
intercompany transaction gains or losses are eliminated when preparing consolidated financial statements
c. Gain (loss) on constructive retirement of bond payable
gain on retirement of bond = $1,070,000 - $996,000 = $74,000
d. Consolidated net income
consolidated net income = income from parent company + income from subsidiary + net gain from retirement of bond = $630,000 + $420,000 + $74,000 = $1,124,00022)
If the economy heads into a recession due to a global pandemic, which types of businesses would be less affected by a
decrease in consumer spending due to larger capital investments?
hlight
ime
maining
06:17
le Tools
A)
partnership
B)
corporation
sole trader
D)
sole proprietorship
E)
limited liability partnership
Answer:
A and B
Explanation:
Answer:
its A and B and D
Explanation:
i just took the quiz
The tiny isolationist nations of Lorland and Zhangia are considering opening their borders to trade with each other. Both nations produce only two goods: smoothies and sandals. Currently, a worker in Lorland can produce 2 smoothies per day or 8 sandals per day, while a worker in Zhangia can produce 1 smoothie per day or 5 sandals per day. Using this information, please match each nation and good to the most accurate description.
Write each item to its matching item .
a. the nation that will specialize in producing smoothies once trading begins
b. the nation that will specialize in producing sandals once trading begins
c. the good that Lorland will import from Zhangia after trading begins
d. the good that Lorland will export to Zhangia after trading begins
Zhangia Sandals Smoothies Lorland
Answer:
Lorland
Zhangia
sandals
smoothies
Explanation:
A country should specialise goods for which it has a comparative advantage in its production.
A country should import goods for which it has no comparative advantage in its production.
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
Lorland
Opportunity cost in the production of one smoothie = 8/2 = 4
Opportunity cost in the production of one sandal = 2/8 = 0.25
Zhangia
Opportunity cost in the production of one smoothie = 5/1 = 5
Opportunity cost in the production of one sandal = 1/5 = 0.2
Zhangia has a comparative advantage inn the production of sandals and should specialise in the production of sandals while lorland has a comparative advantage in the production of smoothies specialise in the production of smoothies
Loriland should import sandals and export smoothies
4. Now that you have calculated the number of workers needed each period in Problem 3, Tameka wants to see how the plan would actually work. You need to: a. Show what would happen if this plan were implemented. b. Calculate the costs associated with this plan. c. Evaluate the plan in terms of cost, customer service, operations, and human resources.
Answer:
47
Explanation:
i know it
Cross-price elasticity of demand measures how a. the price of one good changes in response to a change in the price of another good. b. the quantity demanded of one good changes in response to a change in the quantity demanded of another good. c. strongly normal or inferior a good is. d. the quantity demanded of one good changes in response to a change in the price of another good
Answer:
d. the quantity demanded of one good changes in response to a change in the price of another good
Explanation:
Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If cross price elasticity of demand is positive, it means that the goods are substitute goods.
Substitute goods are goods that can be used in place of another good.
If the cross-price elasticity is negative, it means that the goods are complementary goods.
Complementary goods are goods that are consumed together
Example 1
If the percentage change in good A is 10% and the percentage change in quantity demanded of good B is -20%. Cross price elasticity = -20%/ 10% = -2. the goods are complementary goods
Example 2
If the percentage change in good A is 20% and the percentage change in quantity demanded of good B is 80%. Cross price elasticity = 80%/ 20% = 4. the goods are substitute goods goods
Pharoah Leasing Company agrees to lease equipment to Novak Corporation on January 1, 2020. The following information relates to the lease agreement.
1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years.
2. The cost of the machinery is $502,000, and the fair value of the asset on January 1, 2020, is $739,000.
3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $45,000. Novak estimates that the expected residual value at the end of the lease term will be 45,000. Novak amortizes all of its leased equipment on a straight-line basis.
4. The lease agreement requires equal annual rental payments, beginning on January 1, 2020.
5. The collectibility of the lease payments is probable.
6. Pharoah desires a 10% rate of return on its investments. Novak's incremental borrowing rate is 11%, and the lessor's implicitrate is unknown.
1. Discuss the nature of this lease for both the lessee and the lessor.
2. Calculate the amount of the annual rental payment required.
3. Compute the value of the lease liability to the lessee.
4. Prepare the journal entries Novak would make in 2020 and 2021 related to the lease arrangement.
5. Prepare the journal entries Pharoah would make in 2020 and 2021 related to the lease arrangement.
Suppose Novak expects the residual value at the end of this lease term to be $40,000 but still guarantees a residual of $50,000. Compute the value of the lease liability at lease commencement.
Answer:
1. Novak Corporation is the lessee and this is a Capital Lease for it. Lease for Pharoah Leasing Company is the lessor and this is an Operating Lease for it.
2. Annual rental payment required = $133,683
3. Lease Liability to the lessee = $720,909
4. See the attached excel file.
5. See the attached excel file.
Explanation:
1. Discuss the nature of this lease for both the lessee and the lessor.
Novak Corporation is the lessee and this is a Capital Lease for it. The reason this is a capital lease to Novak Corporation is that the lease of the equipment will be treated as an asset in the books of accounts of Novak Corporation.
Lease for Pharoah Leasing Company is the lessor and this is an Operating Lease for it. The reason this is an operating lease to Pharoah Leasing Company is that the ownership of the asset is not transferred by Pharoah Leasing Company to Novak Corporation and the useful life of the asset will remains after the lease term expires.
2. Calculate the amount of the annual rental payment required.
Note: See L in the attached excel file for the calculation of the amount of the annual rental payment required.
From the attached excel file, we have:
Annual rental payment required = $133,683
3. Compute the value of the lease liability to the lessee.
Note: See O in the attached excel file for the computation of the value of the lease liability to the lessee.
From the attached excel file, we have:
Lease Liability to the lessee = $720,909
4. Prepare the journal entries Novak would make in 2020 and 2021 related to the lease arrangement.
Note: See the attached excel file for the journal entries Novak would make in 2020 and 2021 related to the lease arrangement.
5. Prepare the journal entries Pharoah would make in 2020 and 2021 related to the lease arrangement.
Note: See the attached excel file for the journal entries Pharoah would make in 2020 and 2021 related to the lease arrangement.
Natick Industries leased high-tech instruments from Framingham Leasing on January 1, 2021. Natick has the option to renew the lease at the end of two years for an additional three years. Natick is subject to a $45,000 penalty after two years if it fails to renew the lease. Framingham Leasing purchased the equipment from Waltham Machines at a cost of $250,177.
Related Information:
Lease term 2 years (8 quarterly periods)
Lease renewal option for an additional 3 years (12 quarterly periods)
Quarterly lease payments $11,000 at Jan. 1, 2021, and at Mar.
31, June 30, Sept. 30, and Dec. 31
thereafter
Economic life of asset 5 years
Interest rate charged by the lessor. 4%
Required:
Prepare appropriate entries for Natick Industries from the beginning of the lease through March 31, 2021. Appropriate adjusting entries are made quarterly.
Answer:
1-Jan-21
Dr Right- of-use asset $250,177
Cr Lease payable $250,177
1-Jan-21
Dr Lease payable $11,000
Cr Cash $11,000
31-Mar-21
Dr Interest expense $2,392
Dr Lease payable $8,608
Cr Cash $11,000
31-Mar-21
Dr Amortization expense $12,509
Cr Right-of-use asset $12,509
Explanation:
Preparation of the appropriate entries for Natick Industries from the beginning of the lease through March 31, 2021.
Journa Entry- Lease-Natick Industries
1-Jan-21
Dr Right- of-use asset
($11,000 * PVAF at 1%for 0-20)
($11000*22.74336) $250,177
Cr Lease payable $250,177
(To Record Lease at Inception)
1-Jan-21
Dr Lease payable $11,000
Cr Cash $11,000
(To Record First Lease Payment made)
31-Mar-21
Dr Interest expense
[($250,177 - 11000 )*1%] $2,392
Dr Lease payable $8,608
($11,000-$2,392)
Cr Cash $11,000
(To Record Second Lease Payment made)
31-Mar-21
Dr Amortization expense
($250,177/ 20) $12,509
Cr Right-of-use asset $12,509
(To Record Amortisation Expense)
Alex Karev has taken out a $ loan with an annual rate of percent compounded monthly to pay off hospital bills from his wife Izzy's illness. If the most Alex can afford to pay is $ per month, how long will it take to pay off the loan? How long will it take for him to pay off the loan if he can pay $ per month? Use five decimal places for the monthly percentage rate in your calculations.
Answer:
the question is incomplete, so I looked for a similar one:
Alex Karev has taken out a $180,000 loan with an annual rate of 11% compounded monthly to pay off hospital bills from his wife Izzy's illness. If the most Alex can afford to pay is $3,500 per month, how long will it take to pay off the loan? How long will it take for him to pay off the loan if he can pay $4,000 per month?
PVIFA = $180,000 / $3,500 = 51.42857
PVIFA = [1 - 1/(1 + i)ⁿ ] / i = [1 - 1/(1 + 0.11/12)ⁿ] / 0.11/12
51.42857 x 0.11/12 = 1 - 1/(1 + 0.11/12)ⁿ
0.47143 = 1 - 1/(1 + 0.11/12)ⁿ
1/(1 + 0.11/12)ⁿ = 1 - 0.47143 = 0.52857
1 / 0.52857 = (1 + 0.11/12)ⁿ
1.89189 = 1.009167ⁿ
n = log 1.89189 / log 1.009167 = 0.2769 / 0.003963 = 69.87
n = 69.87 months
PVIFA = $180,000 / $4,000 = 45
PVIFA = [1 - 1/(1 + i)ⁿ ] / i = [1 - 1/(1 + 0.11/12)ⁿ] / 0.11/12
45 x 0.11/12 = 1 - 1/(1 + 0.11/12)ⁿ
0.4125 = 1 - 1/(1 + 0.11/12)ⁿ
1/(1 + 0.11/12)ⁿ = 1 - 0.4125 = 0.5875
1 / 0.5875 = (1 + 0.11/12)ⁿ
1.70213 = 1.009167ⁿ
n = log 1.70213 / log 1.009167 = 0.23099 / 0.003963 = 58.29
n = 58.29 months
The Converting Department of Soft Touch Towel and Tissue Company had 760 units in work in process at the beginning of the period, which were 60% complete. During the period, 16,000 units were completed and transferred to the Packing Department. There were 840 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production.
Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".
Soft Touch Towel and Tissue Company
Number of Equivalent Units of Production
Whole Units Direct Materials Equivalent Units Conversion Equivalent Units
Inventory in process, beginning
Started and completed
Transferred to Packing Department
Inventory in process, ending
Total
Answer:
Direct materials equivalent units 16,080
Conversion costs equivalent units 16,048
Explanation:
Calculation to Determine the number of equivalent units of production with respect to direct materials and conversion costs.
Soft Touch Towel and Tissue Company
Number of Equivalent Units of Production
Whole Units Direct Materials Equivalent Units Conversion Equivalent Units
Inventory in process, beginning
760 0 (760*40% = 304)
Started and completed
15,240 15,240 15,240
(16,000-760=15,240)
Transferred to Packing Department
16,000 15,240 15,544
Inventory in process, ending
840 840 (840*60% = 504)
Total 16,840 16,080 16,048
Therefore the number of equivalent units of production with respect to direct materials is 16,080 and conversion costs is 16,048
consider ktu as a production system in which the final product is graduate for this
a) define quality form the producers and consumers perspective
b) develop fitness for use description for final product quality
c) give examples of the cost of poor quality ( internal and and external failure cost ) and the cost of quality assurance ( prevention and appraisal) costs.
Deb has found it very difficult to repay her... Deb has found it very difficult to repay her loans. Because of these difficulties, the bank decided to forgive one of her most recent loans, an amount of $91,000. After the loan was discharged, Deb had total assets of $247,000 and her remaining loans totaled $239,000. What amount must Deb include in her gross income
Answer: $8000
Explanation:
The following information can be gotten from the question:
Total assets = $247000
Remaining loans = $239000
The amount that Deb must include in her gross income will be the difference between the total assets and the remaining loans which will be:
= $247000 - $239000
= $8000
=
Cost of Spoiled Units Lieu Company is a specialty print shop. Usually, printing jobs are priced at standard cost plus 50 percent. Job 631 involved printing 400 wedding invitations with the following standard costs: Direct materials $220 Direct labor 80 Overhead 80 Total $380 Normally, the invitations would be taken from the machine, the top one inspected for correct wording, spelling, and quality of print, and all of the invitations wrapped in plastic and stored on shelves designated for completed jobs. In this case, however, the technician decided to go to lunch before inspecting and wrapping the job. He stacked the unwrapped invitations beside the printing press and left. One hour later, he returned and found the invitations had fallen on the floor and been stepped on. It turned out that about 50 invitations were ruined and had to be discarded. An additional 50 invitations were then printed to complete the job. Required: 1. Calculate the cost of the spoiled invitations. If required, round your answer to the nearest cent. $fill in the blank 1 2. What is the price of Job 631
Answer: $47.50
Explanation:
Direct materials = $220
Direct labor = $80
Overhead = $80
Total = $380
Number of wedding invitation = 400
Cost per invitation = $380/400 = $0.95
Since the Number of spoiled invitation = 50, then the cost of the spoiled invitation will be;
= 50 × $0.95
= $47.50
The cost of the spoiled invitation is $47.50
Surendra’s personal residence originally cost $340,000 (ignore land). After living in the house for five years, he converts it to rental property. At the date of conversion, the fair market value of the house is $320,000. As to the rental property, calculate Surendra’s basis for:________.
a. Loss.
b. Depreciation.
c. Gain.
d. Could Surendra have obtained better tax results if he had sold his personal residence for $320,000 to hold as rental property?
Answer:
a. Loss
The basis for Loss is the lower of the basis after it is adjusted for its new purpose or the fair market value.
Adjusted = $340,000
Fair market value = $320,000
Loss basis will therefore be the lower value of $320,000
b. Depreciation:
This is the same as the loss basis because the residence was converted from personal use to business use.
= $320,000
c. Gain
= Adjusted basis of the property
= $340,000
d. No.
Because he would be converting to rental property which is a business use, the loss that he would have incurred of $20,000 would have been disallowed and he wouldn't be able to deduct it.
Loss = Cost - fair value = 340,000 - 320,000 = $20,000
Mrs Blake is paid a weekly wage of $248. During a certain week she worked 5 hours
overtime. Her total wages were $285.50.
Calculate
her overtime wages
(2 marks)
(11)
the overtime rate of pay.
2 marks)p
285.50 -
248.00
037.50
A) 37.50 Dollars
B) $7.50 per hour overtime
37.50÷5
5_/37.50
07.50
On September 1, 2018, ABC signed a $100,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2019. ABC records the appropriate adjusting entry for the note on December 31, 2018. In recording the payment of the note plus accrued interest at maturity on March 1, 2019, ABC would
Answer: b. Debit Interest Expense, $1,500.
Explanation:
On the date of maturity in 2019, the journal entry will look something like this:
Date Account title Debit Credit
March 2019 Note Payable $100,000
Interest Payable $3,000
Interest expense $1,500
Cash $104,500
The interest payable is the portion of interest that accrued in the 4 months in 2018 which was in the previous period so would have to be recorded as a liability instead of an expense.
The interest expense is for the interest accrued in 2019 which would be for 2 months and is:
= 100,000 * 9% * 2/12
= $1,500
In connection with the office use in the home deduction, comment on the following:
a. The exclusive use requirement.
b. The distinction between direct and indirect expenses.
c. The effect on deduction of taxpayer's work status i.e. employed or self employed.
d. The ownership status of residence i.e. owned or rented.
e. The tax treatment of office furnishings i.e. desk, chairs, and file cabinets.
f. The treatment of expenses that exceed the gross income from the business.
Answer:
a. The exclusive use requirement means that office space is used solely for business purpose.
b. Indirect expense are related to business operating costs and distinction must be made wile deductions between business and personal use. Direct expense is solely related to the business and is deducted in full.
c. Employee deductions are allowed and they are deducted from Adjusted Gross Income.
d. The ownership status of resident is criteria for deductions. Resident status is allowed for deducting depreciation.
e. Office furnishing are deductible expense.
f. Any excesses are carried to the next yearly period.
Explanation:
The deductions are required to be distinct between personal and professional use. It is responsibility of the business owner to calculate deductible expenses and then prepare tax status. The income from business are recorded at full and is subject to tax.
The following information is related to the defined benefit pension plan of Melissa Larson Company for the year: Service cost $ 94,000 Contributions to pension plan 147,000 Benefits paid to retirees 116,000 Plan assets (fair value), January 1 549,000 Plan assets (fair value), December 31 662,000 Actual return on plan assets 82,000 PBO, January 1 810,000 PBO, December 31 869,000 Discount rate 10 % Long-term expected return on plan assets 9 % Assuming no other relevant data exist, what is the pension expense for the year
Answer:
$125,590
Explanation:
Calculation for the pension expense for the year
Service cost$94,000
Add Interest cost (810,000 × 10%) $81,000
Less Expected return on plan assets ($49,410)
(549,000 × 9%)
Pension expense $125,590
Therefore the pension expense for the year is $125,590
The short run industry supply curve is the Group of answer choices sum of all of the individual firms' ATC curves above the MC. average of all of the individual firms' marginal cost curves above the AVC. sum of all of the individual firms' marginal cost curves above the AVC. average of all of the individual firms' ATC curves above the MC.
Answer:
sum of all of the individual firms' marginal cost curves above the AVC.
Explanation:
Marginal Cost (MC) can be defined as the cost incurred in the production of one unit of a product.
Average Variable Cost (AVC) can be defined as the total variable cost per unit of production. It is calculated by dividing total variable cost (TVC) by total output of production (Q);
[tex] AVC = \frac{TVC}{Q} [/tex]
In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.
This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
The short run industry supply curve is the sum of all of the individual firms' marginal cost curves above the average variable cost (AVC). It is typically considered to be marginal cost curve for the industry.
Generally, industries always strive to maximize profits by increasing their level of output, such that P = MC. Also, the firms wouldn't be willing to leave or enter into the market because they are not making any profit, such that P=AC.
For each separate case below, follow the 3-step process for adjusting the accrued expense account: Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record an adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year.
a. Salaries Payable. At year-end, salaries expense of $18,000 has been incurred by the company, but is not yet paid to employees.
b. Interest Payable. At its December 31 year-end, the company owes $375 of interest on a line-of-credit loan. That interest will not be paid until sometime in January of the next year.
c. Interest Payable. At its December 31 year-end, the company holds a mortgage payable that has incurred $1,000 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year.
Answer:
a. Salaries expense (Dr.) $18,000
Salaries Payable (Cr.) $18,000
b. Interest Receivable (Dr.) $375
Interest Earned (Cr.) $375
c. Interest Expense (Dr.) $1,000
Interest Payable (Cr.) $1,000
Explanation:
The adjusting entries will be made once the expenses are paid. For now these expense are recorded as current liability because the payment needs to be made for the expenses that has already incurred. The salaries expense is recorded in contra account of salaries payable, once these salaries are paid then the expense will recorded as cash outflow.