Freshmart, Inc., began the year with 250 units of inventory at a cost of $55 per unit using variable costing, produced 1,000 units, and sold 1,250 units at a selling price of $100 per unit. Fixed overhead costs totaled $30,000 and fixed selling and administrative expenses were $15,000. Variable production costs were $25.00 per unit while variable selling and administrative expenses were $10.00 per unit. Using variable costing, net income was:

Answers

Answer 1

Answer:

The net income will be "$36,250".

Explanation:

The given values are:

Administrative expenses

= $15,000

Fixed overhead costs

= $30,000

According to the question:

The sales will be:

=  [tex]1250 \ units\times 100 \ per \ units[/tex]

=  [tex]125000[/tex]

The production cost of the variable will be:

=  [tex]1250 \ units \times 25 \ per \ units[/tex]

=  [tex]31250[/tex]

Variable selling will be:

=  [tex]1250 \ units\times 10 \ per \ units[/tex]

=  [tex]12500[/tex]

The net income will be:

⇒  [tex]Sales-Production \ cost \ of \ variable-admin \ expenses-fixed \ costs-fixed \ selling[/tex]

On substituting the values, we get

⇒  [tex]125000-31250-12500-30000-15000[/tex]

⇒  [tex]36250[/tex] ($)


Related Questions

On the first day of the fiscal year, a company issues $65,000, 6%, five-year installment notes that have annual payments of $15,431. The first note payment consists of $3,900 of interest and $11,531 of principal repayment. Journalize the following transactions. Be sure to include the year in the date for both entries. Refer to the Chart of Accounts for exact wording of account titles.
2016
Jan. 1 Installment notes are issued
2017
Jan. 1 First annual note payment is made

Answers

Answer: Please see explanation column for answer.

Explanation:

a) Journal to record issuance of Installment notes

Date            Account                 Debit                  Credit

Jan. 1, 2016    Cash                  $65,000

              Notes payable                                      $65,000

b) Journal to record First annual note payment

Date            Account                      Debit                  Credit

Jan. 1, 2017 Interest expense      $3,900

              Notes   payable             $11, 531

                  Cash                                                        $15,431                    

Filling your individualf ederal tax returns would be best described what type of value chain?

Answers

Answer: Government to customer (G2C)

Explanation:

Filing is one of the requirements of any business person to give proper record of what they did in their business and how they delivered to the masses. This is proper for tax clearance and returns. When filing your individual tax returns the value chain is known as government to customer (G2C). This is recommended.

Millitech is a sports equipment manufacturer. It wants to form a merger with an athletic wear company. This would be a

Answers

Answer:

Market extension merger.

Explanation:

If a sports equipment manufacturer wants to form a merger with an athletic wear company this would be known as a market extension merger. To further understand what a market extension merger is, here is a brief explanation.

A market extension merger has to do with when two companies that are involved in similar products, either in production or sales come together to combine their different markets. Both companies would benefit from this merger because through this they would reach a bigger customer base.

The capital expansion will cost 320,000. they are planning on receiving a revenue of 3.00 per unit and a varible cost of 1.20 per unit. How many units are needed to break even?

Answers

Answer:

177,777.78

Explanation:

Breakeven point is the number of units produced and sold at which net income is equal to zero

Break even point = fixed cost / price - variable cost

320,000 / 3 - 1.2 = 177,777.78

Intricate Wiring Corp., based in Ohio, creates a brand new high-tech product. The demand for the product in the United States is high but very low or non-existent elsewhere. The company decides not to locate manufacturing facilities elsewhere and will simply meet the small foreign demand via exports. The theory that best explains the company's policy is

Answers

Answer:a. product life cycle theory.

Explanation:

The Product Life Cycle Theory was created to explain the International trade pattern of a new product. The theory attempts to show that when a product is first invented, its demand and production inputs such as capital and labor, come from the area it was invented in. As the product starts getting more recognised and it's demand increases elsewhere, it will start to export and then continue until it starts manufacturing in other areas to feed the demand of those areas as well.

Intricate Wiring Corp's new high-tech product is following this theory because it has just started out and so its demand is based in its country of origin being the United States. For as long as this is the case, the company should focus on producing in the United States until demand picks up substantially enough to produce elsewhere.

The Cash account of Gate City Security Systems reported a balance of $2,530 at December 31​, 2018. There were outstanding checks totaling $ 500 and a December 31 deposit in transit of $ 400. The bank​ statement, which came from Park Cities​ Bank, listed the December 31 balance of $3,120. Included in the bank balance was a collection of $ 500 on account from Jane Lindsey​, a Gate City customer who pays the bank directly. The bank statement also shows a $20 service charge and $ 10 of interest revenue that Gate City earned on its bank balance.

Requried:
Prepare Gate City​'s bank reconciliation at December 31.

Answers

Answer:

Gate City Security Systems

Bank Reconciliation at December 31, 2018

Book:  

Balance , December 31, 2018  $2,530

Add:

Collection from Jane Lindsey $500  

Interest revenue $10

Less:

Service charges  $20

Adjusted book balance December 31, 2018  $3,020

Bank:

Balance , December 31,2018  $3,120

Add:

Deposit in transit  $400

Less:

Outstanding cheque  $500

Adjusted bank balance December 31, 2018  $3,020

Pearson Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 10%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC is 13.00%. What is Pearson's cost of common equity

Answers

Answer:

0.175  or 17.5%

Explanation:

The calculation of the cost of common equity is shown below:-

WACC = Weight of Equity × Cost of Equity + Weight of Debt × ( 1- Tax rate) × Cost of Debt

0.13 = (0.55 × Cost of equity) + ((0.45 × (1 - 0.25) × 0.10)

0.13 = (0.55 × Cost of equity) + 0.045 × 0.75

(0.55 × Cost of equity) = 0.13 - 0.03375

(0.55 × Cost of equity) = 0.09625

Cost of equity = 0.09625 ÷ 0.55

= 0.175

Therefore for computing the cost of equity we simply applied the above formula.

IAS 16. Fixed Assets. We are a graphic arts company, and at the beginning of 2016, we acquired a new printer. The price of this printer was 25,000 euros. The additional expenses of the purchase were as follows:

Answers

Answer:

1.Initial Acquisition cost €24,882.15

2.Amortization fee €1,688.215

3.The costs derived from daily maintenance €30,000

Explanation:

1. Calculation for the initial cost of the acquisition for IAS 16. Fixed Assets.

Using this formula

Initial Acquisition cost = (Purchase price + Additional direct expenses relative to acquisition) - (Depreciation + Amortization + taxes + impairment costs)

Let plug in the formula

Initial Acquisition cost= (25,000+ 3.00+1.150) - (122)

Initial Acquisition cost =25,004.15-122

Initial Acquisition cost = 24,882.15 Euro

Therefore the Initial Acquisition cost will be €24,882.15

2.Calculation for the amortization fees.

Using this formula

Amortization fees = total interest amount/period in the debt's life

Let plug in the formula

Interest amount= 24,882.15-5000- (250*12)

Interest amount =19,882.15-3,000

Interest amount= 16,882.15

Hence, Amortization fee will be :

Interest amount/Period in the debt's life

Where,

Interest amount=16,882.15

Period in the debt's life=10 years

Amortization fee =16,882.15/10 years

Amortization fee= €1,688.215

Therefore the Amortization fee will be €1,688.215

3.Calculation for he costs derived from daily maintenance

The costs derived from daily maintenance will be ;

Using this formula

Costs derived from daily maintenance= Specialised weekly maintenance× 12 month ×Numbers of years

Let plug in the formula

Costs derived from daily maintenance= 250*12*10

Costs derived from daily maintenance=30,000

Therefore the costs derived from daily maintenance will be €30,000

A car dealership spends $140,000 on cars to stock their lot. After a day of sales, they earn a total revenue of $300,000. What is the car dealership's profit

Answers

Answer:

$160,000

Explanation:

Calculation of the car dealership's profit

Using this formula

Profit= Total revenue- Amount Spend

Where,

Total revenue=$300,000

Amount Spend=$140,000

Let plug in the formula

Profit =300,000-140,000

Profit =160,000

Therefore the car dealership's profit will be $160,000

The December 31, 2014 balance sheet of Barone Company had Accounts Receivable of $400,000 and a credit balance in Allowance for Doubtful Accounts of $32,000. During 2015, the following transactions occurred: sales on account $1,500,000; sales returns and allowances, $50,000; collections from customers, $1,250,000; accounts written off $36,000; previously written off accounts of $6,000 were collected.A. Journalize the 2015 transactions.B. If the company uses the percentage-of-sales basis to estimate bad debt expense and anticipates 3% of net sales to be uncollectible, what is the adjusting entry at December 31, 2015?C. If the company uses the percentage of receivables basis to estimate bad debt expense and determines that uncollectible accounts are expected to be 8% of accounts receivable, what is the adjusting entry at December 31, 2015?D. Which basis would produce a higher net income for 2015 and by how much?

Answers

Answer:

Barone Company

General Journal for 2015 transactions:

Debit Accounts Receivable $1,500,000

Credit Sales Revenue $1,500,000

To record sales on account.

Debit Sales Returns $50,000

Credit Accounts Receivable $50,000

To record sales returns and allowances.

Debit Cash Account $1,250,000

Credit Accounts Receivable $1,250,000

To record cash collections from customers.

Debit Allowance for Doubtful Accounts $36,000

Credit Accounts Receivable $36,000

To record uncollectible written-off.

Debit Accounts Receivable $6,000

Credit Allowance for Doubtful Accounts $6,000

To reinstate previously written off accounts.

Debit Cash Account $6,000

Credit Accounts Receivable $6,000

To record collection of previous write-off.

Adjusting Entry at December 31, 2015:

B. Using 3% of net sales:

Debit Bad Debt Expense $41,500

Credit Allowance for Doubtful Accounts $41,500

To record bad debt expense.

C. Using 8% of Receivables:

Debit Bad Debt Expense $43,120

Credit Allowance for Doubtful Accounts $43,1`20

To record bad debt expense.

D. 3% of net sales produces a higher net income and by $1,620

Explanation:

1. Accounts Receivable

Beginning balance (debit) = $400,000

Sales                                     1,500,000

Sales Returns & allowances   (50,000)

Cash Collections                (1,250,000)

Uncollectible write-off            (36,000)

Reinstatement of write-off       6,000

Cash Collection                       (6,000)

Ending balance                  $564,000

2. Allowance for Doubtful Accounts

Beginning balance (Credit)   $32,000

Uncollectible write-off            (36,000)

Reinstatement of write-off        6,000

Balance pre-year adjustment $2,000

Using 3% of net sales

Bad debt expense                 $41,500

Ending balance (credit)        $43,500

Balance pre-year adjustment $2,000

Using 8% of receivable balance

Bad debt expense                 $43,120

Ending balance (credit)         $45,120

3. Allowance for Doubtful Accounts (Ending balance)

3% of net sales = $1,450,000 x 3% = $43,500

8% of receivables = $564,000 x8% = $45,120

If the December 31, 2014 balance sheet of Barone Company had Accounts Receivable of $400,000 and a credit balance in Allowance for Doubtful Accounts of $32,000.  The journal entries will be:

A. Journalize the 2015 transactions.

Debit Accounts Receivable $1,500,000

Credit Sales Revenue $1,500,000

(To record credit sales)

Debit Sales Returns and Allowances $50,000  

Credit Accounts Receivable $50,000

(To record credit to customers)

Debit Cash  $1,250,000  

Credit Accounts Receivable $1,250,000

(To records collection of receivables)

Debit Allowance for Doubtful Accounts $36,000  

Credit Accounts Receivable $36,000

(To record write of specific account)

Debit Accounts Receivable $6,000

Credit Allowance for Doubtful Accounts $6,000

(To record written off accounts)

Debit Cash Account $6,000

Credit Accounts Receivable $6,000

(To record collection of previous write-off)

B. Preparation of the journal entry using the percentage-of-sales basis

Percentage-of-sales basis:

Sales revenue $1,500,000

Less: Sales Returns and Allowances $50,000

Net Sales $1,450,000

($1,500,000-$50,000)

Bad debt percentage 3%

Bad debt provision $43,500

(3%×$1,450,000)

Journal entry

Dec. 31

Debit  Bad Debt Expense $43,500

Credit Allowance for Doubtful Account $43,500

C.  Preparation of the journal entry using the percentage of receivables basis

Percentage of receivables basis

Account receivable

Dr                          Cr

$400,000           $50,000

$1,500,000         $1,250,000

$6,000                 $36,000

                             $6.000

Bal. $564,000

Allowance for Doubtful Accounts

Dr                                Cr

$36,000                     $32,000

                                   $6,000

                                   Bal. $2,000

Required balance  $45,120

($564,000 × .08)

Less Balance before adjustment $2,000

Adjustment required $43,120

($45,120-$2,000)

Journal entry

Dec. 31

Debit Bad Debt Expense $43,120

Credit Allowance for Doubtful Account $43,120

D. Calculation to determine the basis that would produce a higher net income for 2015 and by how much?

Percentage-of-sales basis $43,500

(3%×$1,450,000)

Percentage of receivables basis $43,120

[($564,000 × .08) -$2,000]

Difference $380

Percentage-of-sales basis will produce a higher net income for 2015 by $380

Learn more here:

https://brainly.com/question/15776572

_____ affects the perceptual process because employees are more likely to remember information that is consistent with their self-concept and nonconsciously screen out information (particularly negative information) that seems inconsistent with it.

Answers

Answer:

Self-Verification

Explanation:

Self-verification refers to verify themselves by other peoples. How other people understand them based on their feelings, beliefs, etc. In other words we can say self views that also includes self concepts and self esteem

In the given situation, since it affects the perceptual process as we recognized that the employees have a good memory with respect to self concept and especially negative information

The primary thing that this more sophisticated measure of ROA better captures that the simpler version, defined as ROA* = Net Income / Total Assets, is:

Answers

Answer:

The question is incomplete, the options are missing. The options are the following:

a) It better measures how we did with our assets, irrespective of the mix of debt and equity used to finance those assets

b) It adjusts for non-recurring items in net income

c) It takes out non-cash charges that are in net income

d) It gives a higher number, so it makes the firm look better

And the correct answer is the option A: It better measures how we did with our assets, irrespective of the mix of debt and equity used to finance those assets.

Explanation:

To begin with, the term of "Return on Assets" refers to the measure that is used in the companies and in the financial world in order to understand how the company is doing with the relationship between the net income and the assets so in that way the company can be more certain about what percentage of the assets are more profitable in getting revenue back after the sales.

Assume the same data as in Problem 2 for the cost to make a Widget. What if we could sell the widgets we make for $50 to other customers. We receive a special order for 1,000 more widgets but that customer wants to just pay $30. It would not affect our current orders or our fixed costs and we have plenty of plant capacity.

Answers

Answer:

Effect on income= number of units soldünitary contribution margin

Explanation:

Giving the following information:

We receive a special order for 1,000 more widgets but that customer wants to just pay $30.

We weren't provided with enough information regarding variable costs. But, I can provide a small example and formulas.

Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.

Variable cost per unit (materials, labor, variable overhead)= $28

To calculate the effect on income, we need to use the following formula:

Effect on income= number of units soldünitary contribution margin

Effect on income= 1,000*(30 - 28)

Effect on income= $2,000 increase

The user of a(n) ________ conflict style assertively attempts to resolve conflict by working together with the other person to find an acceptable solution.

a. Avoiding
b. Accommodating
c. Negotiating
d. Collaborating

Answers

Answer:

d. Collaborating

Explanation:

The user of a collaborating conflict style assertively attempts to resolve conflict by working together with the other person to find an acceptable solution. It is one of the most commonly used conflict resolving styles, reason why it is also referred to as the problem solving style.

Individuals engaging in a collaborating conflict style are usually very cooperative and assertive in the process of resolving the problem.

This ultimately implies that, it usually leads to a peaceful resolution and arguably the best conflict resolving method. Also, individuals participating are availed the best opportunity.

Based on the company’s 2013 10-K, how much long term debt is maturing between 2014 and 2016? Please provide your answer in millions without comma separator or decimal (Ex: 2345).

Answers

Answer:

Colgate Palmolive Company

The company's 2013 10-K Long-term debts maturing between 2014 and 2016:

Maturing:   Amount

Year          $'millions

2014            895

2015            491

2016           255

Total          1641

Explanation:

The long-term debts of Colgate Palmolive, according to the company's 2013 10-K reports are mainly commercial papers and notes, with various maturity dates.  These debts would not be paid off in 2013.  However, it looks like there was a misclassification of the long-term debts since the 2014 long-term debts would not take more than 12 months to mature.  They should have been classified as current out-right, though there was an acknowledgement and indication that some of these long-term debts were maturing currently.

Bibby Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Bibby estimated that the total overhead costs would be $72,000 and that the total labour hours would be 2,400. At the end of the year, Bibby obtained the actual overhead costs from the ledger and found that the shop had incurred $65,800 and had worked 2,350 labour hours.
1. Compute the redetermined (budgeted) overhead rate.
Overhead Rate:__________.
2. Compute the overhead amount that was applied for the year.Was overhead under applies or over applied?
3. Prepare the journal entry to close the overhead account. Assume that the underapplied and overapplied overhead was not material.

Answers

Answer:

Answer:

1.) Overhead Absorption rate= $30 per hour

2) Absorbed overhead= $70,500

Over-absorbed overhead=$4700

3) Journal entry:

Debit  Manufacturing overhead expense  $4,700

    Credit Cost of goods sold $4,700

Explanation:

Overhead Absorption rate = Budgeted overhead /Budgeted labour hours

= 72,000 /2,400 hours = $30  per hour

Absorbed overhead = OAR × Actual labour hours

        =$30 × 2350 = $70,500

Over-absorbed overhead = Absorbed overhead - Actual overhead

                                      = $70,500  - $65,800 = $4700

Journal entry:

Debit  Manufacturing overhead expense  $4,700

    Credit Cost of goods sold $4,700

Answer:

Overhead Absorption rate= $30 per hour

Absorbed overhead= $70,500

Over-absorbed overhead=$4700

Journal entry:

Debit  Manufacturing overhead expense  $4,700

    Credit Cost of goods sold $4,700

Top management at Prinze Auto Sales has decided to replace their traditional marketing approach with an approach that emphasizes relationship marketing. Under this new approach, Prinze's salespeople will be expected to devote less time to current customers and a larger share of their time searching for new customers.
1. True2. False

Answers

Answer:

2. False

Explanation:

Relationship management is considered an important part of CRM (customer relationship management) and it emphasizes on building and increasing customer loyalty and long term commitment.

If this company was to replace their traditional marketing approach with relationship marketing, they would devote more time to build a solid relationship with existing customers and less time searching for new customers.

Darin has a tax basis of $7,000 and an at-risk amount of $5,000 in a partnership where he is a 25% owner. The partnership incurred a loss of $40,000 in the current year. How much of the loss will be allocated to Darin and how much will he be able to deduct in the current year assuming he materially participates in the business

Answers

Answer:

Darin will have a $10000 and also he will be able to deduct $5,000.

Explanation:

Solution

Recall that:

Darin tax basis =$7000

Risk amount = $5000

Loss incurred = 40,000 (current year)

Ownership =25%

Now

With regards to his share the loss will be 25% of $40000, that is $10000 and he will be able to deduct only $5000 because of his at-risk amount is this and as per Sec. 465.

Or

40000 * 25% = $10000

He will deduct $5000 from $10000 only

Hence $10,000 of the loss will flow-through to Darin, and he will be able to deduct $5,000.

A hedge fund with net asset value of $62 per share currently has a high water mark of $66. Is the value of its incentive fee more or less than it would be if the high water mark were $67?

Answers

Answer:

The incentive fee will be less valuable in a situation where the high- water mark is the amount of $67, instead of the amount of $66 which means that when we have a high-water mark of the amount of $67, the net asset value of the fund have to reach $67 before the hedge fund can assess the incentive fee.

Explanation:

The incentive fee will be equal to 20% of the amount of the hedge fund’s profits which will be beyond a specific benchmark rate of return and in a situation where a fund has had or

experienced some losses in the past, this means that the fund may be unable to charge the incentive fee unless the fund is above its previous high water mark.

Therefore the incentive fee will be less valuable in a situation where the high- water mark is the amount of $67, instead of the amount of $66 which means that when we have a high-water mark of the amount of $67, the net asset value of the fund have to reach $67 before the hedge fund can assess the incentive fee.

Vijay Company reports the following information regarding its production costs. Direct materials $ 9.40 per unit Direct labor $ 19.40 per unit Overhead costs for the year Variable overhead $ 9.40 per unit Fixed overhead $ 103,600 Units produced 14,000 units Compute its product cost per unit under variable costing.

Answers

Answer:

Unitary cost= $38.2

Explanation:

Giving the following information:

Direct materials $9.40 per unit

Direct labor $19.40 per unit

Variable overhead $ 9.40 per unit

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead) to calculate the unitary cost.

UNitary cost= 9.4 + 19.4 + 9.4

Unitary cost= $38.2

Ennis, Inc. has 35,000 common shares issued at a $2.25 par value of which 22,000 are outstanding. If Ennis has no other outstanding stock, what size dividend must be paid such that each share receives $3.20

Answers

Answer:

$70,400

Explanation:

The company has:

Number of Shares = 35,000

Par value = $2.25

Outstanding = 22,000

The question requires that we find the size of dividend that must be paid if each share receives $3.20:

Only Outstanding shares are included in dividends contribution.

So to pay 22,000 shares at $3.20

= 22,000 x $3.20

= $70,400

O'Brian's Department Stores allocates the costs of the Personnel and Payroll departments to three retail sales departments, Housewares, Clothing, and Furniture. In addition to providing services to the operating departments, Personnel and Payroll provide services to each other. O'Brian's allocates Personnel Department costs on the basis of the number of employees and Payroll Department costs on the basis of gross payroll. Cost and allocation information for June is as follows:

Personel Payroll Housewares Clothing Furniture
Direct department cost $6,500 $3,300 $11,900 $20,000 $16,350
Number of employees 5 3 9 15 3
Gross payroll $6,400 $3,400 $11,400 $17,800 $8,000

Required:
a. Determine the percentage of total Personnel Department services that was provided to the Payroll Department.
b. Determine the percentage of total Payroll Department services that was provided to the Personnel Department.
c. Prepare a schedule showing Personnel Department and Payroll Department cost allocations to the operating departments, assuming O'Brian's uses the step method.

Answers

Answer:

O'Brian's Department Stores

a. Determination of the percentage of total Personnel Department services provided to the Payroll Department:

= No. of payroll department employees/Total number of employees x 100

= 3/35 x 100 = 8.57%

b. Determination of the percentage of total Payroll Department services provided to the Personnel Department:

= No. of personnel department employees/Total number of employees x 100

= 5/35 x 100 = 14.29%

c. Schedule showing Personnel Department and Payroll Department Cost Allocations to the Operating Departments, using the step method:

                  Personnel  Payroll    House   Clothing   Furniture       Total

                                                      Wares

Number of

 employees      5               3             9             15              3               35

Direct department

 cost              $6,500   $3,300   $11,900  $20,000   $16,350    $58,050

Gross payroll $6,400   $3,400   $11,400    $17,800    $8,000   $47,000

Personnel    -12,900      1,290      3,870        6,450       1,290       12,900

Payroll            0            -7,990      2,449        3,823         1,718        7,990

Total allocated 0             0       $29,619    $48,073  $27,358  $105,050

Explanation:

a) Data:

1. Personnel and Payroll departments' cost to Housewares, Clothing, and Furniture

2. Personnel and Payroll provide services to each other.

3. Basis of Service Departments' Cost Allocation:

Personnel Department:  Number of employees

Payroll Department: Gross Payroll

4. Cost and Allocation Information for June:

                    Personnel  Payroll    House   Clothing   Furniture    Total

                                                      Wares

Direct department

 cost              $6,500    $3,300    $11,900  $20,000   $16,350     $58,050

Number of

 employees      5               3             9             15              3               35

Gross payroll $6,400    $3,400   $11,400    $17,800    $8,000    $47,000

Personnel    -12,900       1,290      3,870        6,450       1,290       12,900

Payroll            0             -7,990      2,449        3,823         1,718        7,990

Total allocated 0             0        $29,619    $48,073  $27,358  $105,050        

b) Cost Allocation Calculations:

Personal cost = Personal Cost divided by the number of employees in the other departments

= $12,900/30 = $430 per employee

Payroll cost = Payroll cost divided by the total gross payroll in the other departments, excluding personnel and payroll departments

= $7,990/37,200 = $0.21478

c) Allocation of service departments' costs is a method of apportioning costs incurred by service departments to the production departments so that the costs could be captured in the production costs.  There are three methods for allocating service departments' costs to the production departments.  The first and the simplest is the direct method, whereby the costs of service departments are allocated directly to each production department based on the consumption of the service department's services.

The second method is the step method.  With this method, the costs of one service department with the highest cost are allocated to all other departments, including production and other service departments following a stepping methodology.  The costs of the next service department are allocated to the remaining departments.  This step is continued until all the service departments' costs have been allocated.  Note that a service department whose costs have been completely allocated would not be allocated any other cost.

The third method is the reciprocal method.  This establishes the relationship among the service departments and uses the established relationship in a linear equation to allocate the costs of service departments.  While it is more accurate, it is also the most complicated.  Three steps are followed as follows: determine allocation bases, set up the formula, which shows the relationships, and finally add up the allocated costs to the production departments.  Details cannot be discussed here.

An investment of $800 was deposited to a bank semiannually for two years. The bank offered an interest rate of 8%, compounded continuously at the time of deposit. How much money will be in the account at the end of two years

Answers

Answer:

The amount of money that will be in the account at the end of two years is $3,533.06.

Explanation:

Since the deposit will be made at the beginning of each period, the relevant formula to use is the formula for calculating the Future Value (FV) of an Annuity Due is employed as follows:

FV = M * {[(1 + r)^n - 1] ÷ r} * (1 + r) ................................. (1)

Where,

FV = Future value or the amount in the account after 2 years =?

M = Semiannual deposit = $800

r = Semiannual interest rate = 8% ÷ 2 = 4%, 0.04

n = Number of periods the deposit will be made = 2 years × 2 = 4

Substituting the values into equation (1), we have:

FV = $800 * {[(1 + 0.04)^4 - 1] ÷ 0.04} * (1 + 0.04)

FV = $800 * 4.246464 * 1.004

FV = $3,533.06

Therefore, the amount of money that will be in the account at the end of two years is $3,533.06.

Lifeline, Inc., has sales of $603,000, costs of $255,000, depreciation expense of $62,000, interest expense of $29,000, and a tax rate of 30 percent. The firm paid out $45,000 in cash dividends. What is the net income for this firm?

Answers

Answer:

The net income of this firm is $179,900.

Explanation:

Net income of firm refers to sales of the firm minus cost of goods, operating expenses, selling and administrative expenses, depreciation, interest expense, taxes, and among others.

Net income is also referred to as net earnings and investors usually employ it as a metric to determine the amount by which a firm's revenue is greater than its expenses.

For this question, net income can be determined by preparing the firm's income statement as follows:

                     Lifeline, Inc.

              Income Statement

                   For the Year ...

Particular                                Amount ($)

Sales                                          603,000

Cost of sales                           (255,000)

Gross profit                               348,000

Depreciation expense              (62,000)

Interest expense                      (29,000)  

Income bore tax                       257,000

Tax (30% * 257,000)                 (77,100)  

Net income                               179,900

Dividends                                 (45,000)  

Retained earnings                     134,900  

From the income statement above, the net income of this firm is $179,900.

A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 6 workers, who together produced an average of 70 carts per hour. Workers receive $18 per hour, and machine cost was $30 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour while output increased by 6 carts per hour.
A. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity.
B. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure.
C. Comment on the changes in productivity according to the two measures.

Answers

Answer:

A. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity.

old system = 70 carts / 6 workers = 11.67 carts per workernew system = 76 carts / 5 workers = 15.2 carts per worker

B. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure.

old system = 70 carts / ($108 + $30) = 0.51 carts per dollarnew system = 76 carts / ($90 + $41) = 0.58 carts per dollar

C. Comment on the changes in productivity according to the two measures.

The new system is more productive and efficient since it uses less workers to produce a higher output. The additional costs of implementing the new system are lower than the cost of employing more workers.

Explanation:

Multi factor productivity = total output / (cost of wages + material cost + overhead cost)

A company acquired three machines for $100,000 in a package deal. The three assets had a book value of $80,000 on the seller's books. An appraisal costing the purchaser $1,000 indicated that the three machines had the following market values.

Machine 1: $30,000 ($20,000)
Machine 2: $40,000 ($25,000)
Machine 3: $50,000 ($35,000)

At what amount should the three assets be individually recorded in the buyer’s books?

Answers

Answer:

The Individual assets will be recorded by the buyer as :

Machine 1 = $25,250

Machine 2=  $33,667

Machine 3=  $42,083

Explanation:

On Initial measurement, IAS 16 requires assets to be measured at cost to the buyer.

Apportion the Cost of $101,000 ($100,000 + $1,000) using individual market values of the assets.

Machine 1 = $30,000 / $120,000 × $101,000

                = $25,250

Machine 2= $40,000  / $120,000 × $101,000

                = $33,667

Machine 3= $50,000  / $120,000 × $101,000

                = $42,083

The company had a net income of $248,462, and depreciation expenses were equal to $72,487. What is the firm's cash flow from financing activities?

Answers

Complete Question:

The complete question can be seen the in the attachment at the end of the solution of the question.

Answer:

Option B. -$182,057

Explanation:

The Cash flow from financing activities can be calculated by using the following formula:

Cash flow from financing activities = Changes in the equity finance

+ Changes in long term borrowings + Changes in short term borrowings

- Interest paid - Dividends paid

Here

Changes in the equity = $175,000 common stock in year 2008

- $125,000 common stock in year 2008 = $50,000

Changes in long term Borrowings = $61,290 - $78,445 = - $17,155

Changes in short term Borrowings = $16,753 - $12,004 = $4749

Interest paid is $0 because interest rate is not given hence we can't calculate it.

Dividends paid = $190,568 Opening Retained Earnings + $248,462 Net Profit for the year - $219,379 Closing Retained Earnings  = $219,651

Now, by putting values in the above equations, we have:

Cash flow from financing activities = $50,000 - $17,155 + $4749 - 0 - $219,651 = -$182,057

Laurel inc and Hardy corp both have 10 percent coupon bonds outstanding, with semiannual interest payments, and both are currently priced at the par value of $1,000. The Laurel, Inc., bond has five years to maturity, whereas the Hardy Corp. bond has 16 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? If the interest rates fall by 2 percent?

Answers

Answer:

current bond price $1,000

interest rate 10%

Laurel bond matures in 5 years, 10 semiannual payments

Hardy bonds matures in 16 years, 32 semiannual payments

if market interest increases to 12%

Laurel bond:

$1,000 / (1 + 6%)¹⁰ = $558.39

$50 x 7.36009 (annuity factor, 6%, 10 periods) = $368.00

market price = $926.39

% change = -7.36%

Hardy bond:

$1,000 / (1 + 6%)³² = $154.96

$50 x 14.08404 (annuity factor, 6%, 32 periods) = $704.20

market price = $859.16

% change = -14.08%

current bond price $1,000

interest rate 10%

Laurel bond matures in 5 years, 10 semiannual payments

Hardy bonds matures in 16 years, 32 semiannual payments

if market interest decreases to 8%

Laurel bond:

$1,000 / (1 + 4%)¹⁰ = $675.56

$50 x 8.1109 (annuity factor, 4%, 10 periods) = $405.55

market price = $1,081.11

% change = 8.11%

Hardy bond:

$1,000 / (1 + 4%)³² = $285.06

$50 x 14.08404 (annuity factor, 4%, 32 periods) = $704.20

market price = $1,178.74

% change = 17.87%

Rank the steps of the (sandwich) ELISA procedure from first step to last step. Do not overlap any steps.

Answers

Answer and Explanation:

The ELISA refers to the enzyme-linked immunosorbent assay (ELISA) It is used to determine the existence of an antigen in a sample with the help of antibiotics

The ELISA procedure in sequence form is shown below:

1. The capture antibody is added and then clean it

2. Now adding the blocking buffer and then clean it

3. Now add the samples with controls, Hatch it and clean it

4. Add horseradish peroxidase (HRP) conjugated with the antibody, Hatch it and clean it

5. Add Thymidine monophosphate (TMP)

6. And finally, the last step is to record the results

If a firm's goal is to maximize its earnings per share, this is the best way to maximize the price of the common stock and thus shareholders' wealth.

Answers

Answer:

False

Explanation:

As maximization of the earnings per share might not be the same thing as the wealth maximization which is the primary goal of the company because the company not only has to generate higher profits but also manage all the risks of the entity which might increase by unethical trading in race to increase earnings per share. Furthermore, to enjoy less costly debt finance which would increase the earnings per share, would result in increase in financial risk, which might again head the company towards disaster if not well managed.

The other solid point against the statement would be that the primary purpose can not be the maximization of earnings per share as it stresses upon spending less on corporate social responsibility and as the result the company stock will be less valued at stock exchange. The less valued stock is because the companies like Dow and S & P Global adds no green value to the stock if the company is not spending on social responsibility programs.

Hence the statement is incorrect.

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