Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year:
A. Raw materials purchased for use in production, $295,000.
B. Raw materials requisitioned for use in production (all direct materials), $280,000.
C. Utility bills were incurred, $78,000 (95% related to factory operations, and the remainder related to selling and administrative activities).
D. Salary and wage costs were incurred:
Direct labor (890 hours) $325,000
Indirect labor $109,000
Selling and administrative salaries $205,000
E. Maintenance costs were incurred in the factory, $73,000.
F. Advertising costs were incurred, $155,000.
G. Depreciation was recorded for the year, $91,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment).
H. Rental cost incurred on buildings, $105,000 (85% related to factory operations, and the remainder related to selling and administrative facilities).
I. Manufacturing overhead cost was applied to jobs, $ ?.
J. Cost of goods manufactured for the year, $960,000.
K. Sales for the year (all on account) totaled $2,150,000. These goods cost $990,000 according to their job cost sheets.
The balances in the inventory accounts at the beginning of the year were:
Raw materials $49,000
Work in process $40,000
Finished Goods $79,000
Required:
1. Prepare journal entries to record the above data. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Post your entries to T-accounts. (Don’t forget to enter the opening inventory balances below.) Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account.
3. Prepare a schedule of cost of goods manufactured
4. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. Prepare a schedule of cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
5. Prepare an income statement for the year.
6. Job 412 was one of the many jobs started and completed during the year. The job required $9,900 in direct materials and 35 hours of direct labor time at a total direct labor cost of $10,800. If the job contained six units and the company billed at 60% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer?

Answers

Answer 1

Answer:

Froya Fabrikker A/S of Bergen, Norway

1. Journal Entries:

a. Debit Raw materials $295,000

Credit Cash $295,000

To record purchase of raw materials

b. Debit Work in Process $280,000

Credit Raw materials $280,000

To record direct materials requisitioned for production.

c. Debit Manufacturing overhead $74,100

Debit Selling and Admin. $3,900

Credit Utilities Expenses $78,000

To record utilities expense for manufacturing and selling and admin.

d. Debit Work in Process $325,000

Debit Manufacturing overhead $109,000

Debit Selling and Admin. $205,000

Credit Salary and Wages Expense $639,000

To record labor costs for production, etc.

e. Debit Manufacturing overhead $73,000

Credit Maintenance Expense $73,000

To record factory maintenance expense.

f. Debit Selling and Admin. $155,000

Credit Advertising Expense $155,000

Tor record advertising expense.

g. Debit Manufacturing overhead $72,800

Debit Selling and Admin. $18,200

Credit Depreciation Expense $91,000

To record depreciation expense for production and selling and admin.

h. Debit Manufacturing overhead $89,250

Debit Selling and Admin $15,750

Credit Rent Expense $105,000

Rent expense for the year.

i. Debit Work in Process $326,000

Credit Manufacturing overhead $326,000

To apply overhead to production.

j. Debit Finished Goods $960,000

Credit Work in Process $960,000

To transfer completed jobs to finished goods inventory.

k. Debit Account Receivable $2,150,000

Credit Sales Revenue $2,150,000

To record the sale of goods on account.

k. Debit Cost of Goods Sold $990,000

Credit Finished Goods $990,000

To record the cost of goods sold.

2. T-accounts

Raw materials

Account Titles              Debit        Credit  

Beginning Balance   $49,000

Cash                         295,000

Work in process                        $280,000

Ending balance                              64,000

Work in process

Account Titles              Debit        Credit  

Beginning Balance    $40,000

Raw materials           280,000

Salaries and wages  325,000

Overhead                 326,000

Finished Goods inventory        $960,000

Ending balance                               11,000

Finished Goods

Account Titles              Debit        Credit  

Beginning Balance $79,000

Work in Process     960,000

Cost of goods sold                  $990,000

Ending balance                            49,000

Cost of Goods Sold

Account Titles               Debit        Credit

Finished Goods         $990,000

Underapplied overhead 92,150

Income Summary                       $1,082,150

Manufacturing Overhead

Account Titles              Debit        Credit  

Utilities expense      $74,100

Salaries and wages 109,000

Maintenance exp.     73,000

Depreciation exp.     72,800

Rent expense          89,250

Work in Process                     $326,000

Underapplied overhead             92,150

Totals                     $418,150    $418,150

Cash

Account Titles              Debit        Credit  

Raw materials        $295,000

Accounts receivable

Account Titles              Debit        Credit

Sales Revenue         $2,150,000

Sales Revenue

Account Titles              Debit        Credit

Accounts receivable                $2,150,000

Selling and Admin.

Account Titles              Debit        Credit  

Utilities expense          $3,900

Salaries and wages  205,000

Advertising expense 155,000

Depreciation exp.        18,200

Rent expense              15,750

3. Schedule of Cost of Goods Manufactured

Beginning WIP          $40,000

Raw materials           280,000

Direct labor               325,000

Overhead                 326,000

Total cost of production $971,000

Less ending WIP                 (11,000)

Cost of goods manufactured $960,000

4. Journal Entry to close Manufacturing Overhead to Cost of Goods Sold

Debit Cost of Goods Sold $92,150

Credit Manufacturing overhead $92,150

To close manufacturing overhead to cost of good of goods sold.

Schedule of Cost of Goods Sold

Finished Goods Inventory   $960,000

Underapplied overhead           92,150

Total cost of goods sold    $1,052,150

5. Income Statement for the year ended December 31

Sales Revenue               $2,150,000

Cost of goods sold           1,052,150

Gross profit                    $1,097,850

Selling and Admin expenses:

Utilities expense          $3,900

Salaries and wages  205,000

Advertising expense 155,000

Depreciation exp.        18,200

Rent expense              15,750

Total selling and admin. $397,850

Net Income                     $700,000

6. Job 412

Selling price per unit = $9,253

Explanation:

Estimated manufacturing overhead = $360,000

Estimated direct labor hours = 900

Predetermined overhead rate = $360,000/900 = $400 per DLH

Beginning Inventory Balances:

Raw materials $49,000

Work in process $40,000

Finished Goods $79,000

Job 412

Direct materials = $9,900

Direct labor hours = 35

Direct labor cost = $10,800

Applied overhead = $14,000 ($400 * 35)

Total cost = $34,700

Units in Job 412 = 6

Unit cost = $5,783 ($34,700/6)

Selling price = 60% markup


Related Questions

An investor purchased a "par bond" for $300 with the principal $300. Over n = 5 years the bond will pay 8% coupon annually. Find the IRR of the cash flow stream (also called Yield to Maturity).

Answers

Answer:

8%

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 = $-300

Cash flow each year from year 1 to 4 = [tex]\frac{8}{100}[/tex] × $300 = $24

Cash flow in year 5 = $300 + 24 = $324

  IRR = 8%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

How fast do you guys help students answer questions?

Answers

Usually takes 10 minutes it can be faster or longer I try to help everyone

Answer:

it depends on who is answering, what the question is, and what you want in the question. regularly answers come within 5 minutes, but if its really complicated then those questions almost never get answered

Assume that Amazon has a stock-option plan for top management. Each stock option represents the right to purchase a share of Amazon $1 par value common stock in the future at a price equal to the fair value of the stock at the date of the grant. Amazon has 4,900 stock options outstanding, which were granted at the beginning of 2020. The following data relate to the option grant. Exercise price for options $39 Market price at grant date (January 1, 2020) $39 Fair value of options at grant date (January 1, 2020) $6 Service period 5 years. The following data relate to the option grant.

Exercise price for options $38
Market price at grant date (January 1, 2017) $38
Fair value of options at grant date (January 1, 2017) $6
Service period 5 years

Required:
a. Prepare the journal entries for the first year of the stock-option plan.
b. Prepare the journal entries for the first year of the plan assuming that, rather than options, 700 shares of restricted stock were granted at the beginning of 2017.

Answers

Answer:

A. 1/1/2020

No entry

12/31/2020

Dr Compensation Expense $5,880

Cr Paid-in Capital—Stock Options $5,880

B. 1/1/2020

Dr Unearned Compensation $26,600

Cr Common Stock $700

Cr Paid-in Capital in Excess of Par $25,900

12/31/2020

Dr Compensation Expense $5,320

Cr Unearned Compensation $5,320

Explanation:

A. Preparation of the journal entries for the first year of the stock-option plan.

1/1/2020

No entry

12/31/2020

Dr Compensation Expense $5,880

($6 X 4,900 ÷ 5)

Cr Paid-in Capital—Stock Options $5,880

B. Preparation of the journal entry (ies) for the first year of the plan assuming that 700 shares of restricted stock were granted at the beginning of 2020.

1/1/2020

Dr Unearned Compensation $26,600

($38 X 700)

Cr Common Stock $700

($1 X 700)

Cr Paid-in Capital in Excess of Par $25,900

($26,600-$700)

12/31/2020

Dr Compensation Expense $5,320

($26,600 ÷ 5)

Cr Unearned Compensation $5,320

common stock definition.​

Answers

Answer:

Common stock is a security that represents ownership in a corporation.

Explanation:

Holders of common stock elect the board of directors and vote on corporate policies.

Windsor, Inc. just began business and made the following four inventory purchases in June:
June 1 129 units $890 June 10 172 units 1340 June 15 172 units 1440 June 28 129 units 1140 $4810
A physical count of merchandise inventory (rounded to whole dollar) on June 30 reveals that there are 180 units on hand. The inventory method which results in the highest gross profit for June is:_______.
a. the FIFO method.
b. the LIFO method.
c. the average cost method.
d. not determinable.

Answers

Answer:

c. the average cost method.

Explanation:

Windsor INC. purchased inventory during the month of June as follows:

June 1 129 units at $890

June 10 172 units at $1340

June 15 172 units at $1440

June 28 129 units at $ 1140

and at the end of the period, there are 180 units on hand.

In order to get highest gross profit the closing sock should be the highest, accordingly the value of inventory at hand should as as follows under different method explain below:

Under FIFO method the inventory first enter into the enterprise is available for sale at first so the inventory of 180 units at end should be values at the last price mentioned in the question i.e $1140, therefore the value amounts to $1140*180 units=$205200

Under LIFO method, likewise the last entered inventory will be available for sale and the inventory at the end of period will be valued at the price at which the inventory first bought i.e $890, therefore the value amounts to 180 units*$890=$160200

Under Average cost method the effect of differential price is distributed over the quantity bough during a period so that the company remains in ineffective condition during the period from the price change

Average cost per unit= (129*$890 +172*$1340+ 172*$1440+129*$1140)/602 units

=$1229.29

and for the 180 units the value amounts to 180*$122.29=$221271.429

so, as per explanation given above, it is certain that the highest value will be in average cost method.

The correct option is - c. the average cost method.

Inventory records for Dunbar Incorporated revealed the following:
Date Transaction Number Unit
of Units Cost
Apr. 1 Beginning inventory 550 $2.33
Apr. 20 Purchase 310 2.68
Dunbar sold 560 units of inventory during the month. Ending inventory assuming weighted-average cost would be:__________.
a. $737.
b. $694.
c. $817.
d. $752.

Answers

Answer:

a. $737.

Explanation:

The computation of the ending inventory using weighted average cost is shown below:

But before that first determine the average cost per unit

= (Beginning cost + purchase cost) ÷ (Beginning units + purchased units)

= (550 × $2.33 + 310 × $2.68) ÷ (550  units + 310 units)

= ($1,281.5 + $830.8) ÷ (860 units)

= $2.46

Now the ending inventory is

= (860 units - 560 units) × $2.46

= $737

describe the role of the public sector​

Answers

Answer:

The public sector includes all sorts of government (central, state, and local). It provides basic goods or services that are either not, or cannot be, provided by the private sector, for example, schools, roads, etc.

Explanation:

hope this helps!! please mark brainliest :))

What is a transition?
A. An animation that happens on a single slide
B. An outline format that uses roman numerals
C. An image file imported to a title slide
D. An effect that happens between slides

Answers

Answer:

d

Explanation:

i jus answered it

Answer:

d

Explanation:

i just took the test

Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible budgets that are based on the following data: Sales commissions 14% of sales Advertising expense 18% of sales Miscellaneous administrative expense $6,500 per month plus 12% of sales Office salaries expense $28,000 per month Customer support expenses $12,000 per month plus 20% of sales Research and development expense $30,000 per month Prepare a flexible selling and administrative expenses budget for March for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.)

Answers

Answer:

Selling and administrative expenses budget for March

Sales Volume                                             $400,000   $500,000  $600,000

Sales commissions at 14 %                           $56,000     $70,000     $84,000

Advertising expense at 18%                          $72,000    $90,000    $108,000

Miscellaneous at $6,500 + 12%                   $54,500      $66,500     $78,500

Office salaries at                                           $28,000     $28,000     $28,000

Customer support at $12,000 + 20%          $92,000     $112,000    $132,000

Research and development at                     $30,000     $30,000     $30,000

Total                                                             $332,500   $396,500    $460,500

Explanation:

A flexible is a budget that is adjusted to the actual activity. Thus, adjust the costs items to the appropriate Sales Volumes.

Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 6,100 units, but its actual level of activity was 6,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:

Fixed element per month Variable element per unit
Revenue - $32.60
Direct labor $0 $3.90
Direct materials 0 12.10
Manufacturing overhead 33,400 1.80
Selling and administrative expenses 28,300 0.40
Total expenses $61,700 $18.20
Actual results for May:


Revenue $200,564
Direct labor $22,786
Direct materials $73,824
Manufacturing overhead $43,922
Selling and administrative expenses $31,896

The direct labor in the planning budget for May would be closest to:_________

a. $23,010
b. $22,633
c. $22,786
d. $23,166

Answers

Answer:

$23,595

Explanation:

The computation of the direct labor in the planning budget is shown below:

Direct labor in planning budget is

= Actual level of Activity × Direct labor per unit

= 6,050 × $3.90

= $23,595

For calculating the direct labor in the planning budget we simply multiplied the actual activity level by the direct labor per unit

This is the answer but the same is not provided in the given options

Identify what type of unemployment each of the individuals faces.
1. James is an architect who has been laid off owing to a slump in the demand for property. He feels he will have to wait until the economy picks up before he can get a new job. James is facing Eric is an experienced project manager who lost his job at a tech start-up because the company's product failed to become popular. He is confident he can get a new job and has already rejected a number of offers.
2. Eric is facing Craig lost his job several months ago. He is having a hard time finding a job that pays him more than unemployment insurance does.
3. Craig is facing Sarah is a recent economics graduate who is entering a difficult labor market, due to a severe recession. She is continuing to look for work but is having a hard time getting interviews.
4. Sarah is facing Hamid has just graduated as a lawyer from an esteemed law school. He is confident of getting a job and has already refused a few lower‑paying jobs.
5. Hamid has just graduated as a lawyer from an esteemed law school. He confident of getting a job and has already refused a few lower paid jobs.

Answers

Answer:

1.James - CYCLICAL UNEMPLOYMENT

Eric frictional unemployment

2.Craig -  structural unemployment

3. Sarah cyclical unemployment

4. Hamid - frictional unemployment.

Explanation:

structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition . Structural unemployment tends to be permanent.  

Frictional unemployment . the period of time a person is unemployed from the period he leaves his current job and the time he gets another job.  

Voluntary unemployment : e.g. worker at a fast-food restaurant who quits work and attends college.

Cyclical unemployment : it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom  

Suppose a monopolist is producing a level of output such that MR > MC. Which of the following best describes what will happen as the firm moves to its profit-maximizing equilibrium? A) Marginal revenue will rise and marginal cost will fall. B) Marginal cost and marginal revenue will both rise. C) Marginal revenue will fall and marginal cost will rise. D) Marginal cost and marginal revenue will both fall.

Answers

Answer: C) Marginal revenue will fall and marginal cost will rise.

Explanation:

The profit-maximizing equilibrium is the production point where the Marginal Revenue equals the Marginal cost.

As the monopolist moves towards this point, they will see their marginal costs increase because they will be producing more goods.

For a monopolist to sell more goods however, they will need to reduce their prices. This means that Marginal revenue will come down.

Marginal revenue will keep decreasing and Marginal cost will keep increasing until both of them become equal to each other.

Litton Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all of the jobs were 4,780. If the actual factory overhead totaled $141,800, determine the over- or underapplied amount for the month.

Answers

Answer:

Overapplied overhead= $7,575

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 1,250,000 / 40,000

Predetermined manufacturing overhead rate= $31.25 per machine hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 31.25*4,780

Allocated MOH= $149,375

Finally, the over/under allocation:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 141,800 - 149,375

Overapplied overhead= $7,575

Answer the below case problem, giving the legal issue, the governing law and the rationale in support of your conclusion.
Arthur Jensen, Inc., was a corporation engaged in the housing construction business.
Arthur Jensen set up and was the sole owner and president of the corporation. Alaska Valuation Service [AVS] conducted housing appraisals for Jensen on numerous occasions over the years. When AVS took the orders for appraisals, it was not aware that it was dealing with a corporation. It believed that it was dealing directly with Jensen [i.e., as a sole proprietor]. Jensen never specifically informed AVS of his status as the president of Arthur Jensen, Inc. When AVS was not paid for appraisal services that it had performed, AVS sued Arthur Jensen, attempting to hold him personally liable for the unpaid appraisals.
Arthur Jensen argued that he could not be personally liable because he had acted on behalf of his corporation.
1. Decide the case based on the above stated facts.
2. Assuming Arthur Jensen could be held personally liable, how could Arthur
Jensen have better protected himself? [we discussed this in class]

Answers

Answer:

1. Decide the case based on the above stated facts.

Corporations provide limited liability to their owners, and one person corporations are legal in all states. Depending on how Arthur handled his business, the corporate veil might or not be lifted. If he separated the corporate account and managed the corporation separately for his other assets, then he is not liable.

On the other hand, if he paid the bills using his personal account, or used the corporation's assets as his own, then the outcome might change. We are not given enough details.

2. Assuming Arthur Jensen could be held personally liable, how could Arthur Jensen have better protected himself?

Simple, he should sign as the president of the corporation and pay using the corporation's account.

Lonergan Company occasionally uses its accounts receivable to obtain immediate cash. At the end of June 2021, the company had accounts receivable of $920,000. Lonergan needs approximately $570,000 to capitalize on a unique investment opportunity. On July 1, 2021, a local bank offers Lonergan the following two alternatives:
A. Borrow $570,000, sign a note payable, and assign the entire receivable balance as collateral. At the end of each month, a remittance will be made to the bank that equals the amount of receivables collected plus 10% interest on the unpaid balance of the note at the beginning of the period.
B. Transfer $620,000 of specific receivables to the bank without recourse. The bank will charge a 3% factoring fee on the amount of receivables transferred. The bank will collect the receivables directly from customers. The sale criteria are met.
Required:
1. Prepare the journal entries that would be recorded on July 1 for:
a. alternative a.
b. alternative b.
2. Assuming that 70% of all June 30 receivables are collected during July, prepare the necessary journal entries to record the collection and the remittance to the bank for:____.
a. alternative a.
b. alternative b.

Answers

Answer:

1.

ALTERNATIVE A

01-Jul

Dr Cash $570,000

Cr Notes Payable $570,000

ALTERNATIVE B

01-Jul

Dr Cash 601,400

Dr Loss on sale of receivables $18,600

Cr Accounts Receivables $620,000

2.

ALTERNATIVE A

Dr Cash $644,000

Cr Notes Payable $644,000

Dr Interest Expense $4,750

Dr Notes Payable 570,000

Cr Cash 574,750

ALTERNATIVE B

Dr Cash $210,000

Cr Accounts Receivable $210,000

Explanation:

1. Preparation of the journal entries that would be recorded on July 1 for alternative a and

alternative b.

ALTERNATIVE A

01-Jul

Dr Cash $570,000

Cr Notes Payable $570,000

(Notes payable collected)

ALTERNATIVE B

01-Jul

Dr Cash 601,400

($620,000-$18,600)

Dr Loss on sale of receivables $18,600 (3%*$620,000)

Cr Accounts Receivables $620,000

(Remittance to bank)

2. Preparation of the necessary journal entries to record the collection and the remittance to the bank for alternative a and

alternative b.

ALTERNATIVE A

Dr Cash (920,000 x 70%) $644,000

Cr Notes Payable $644,000

Dr nterest Expense($570,000 x 10%x 1/12) $4,750

Dr Notes Payable 570,000

Cr Cash 574,750

($570,000+$4,750)

ALTERNATIVE B

Dr Cash [ (920,000 -620,000)x 70%] $210,000

Cr Accounts Receivable $210,000

Presented below is a condensed version of the comparative balance sheets for Ravensclaw Corporation for the last two years at December 31.

2019 2018
Cash $230,100 $101,400
Accounts receivable 234,000 240,500
Investments 67,600 96,200
Equipment 387,400 312,000
Accumulated Depreciation-Equipment (137,800 ) (115,700 )
Current liabilities 174,200 196,300
Common stock 208,000 208,000
Retained earnings 399,100 230,100

Additional information:
Investments were sold at a loss of $13,000; no equipment was sold; cash dividends paid were $39,000; and net income was $208,000.

Required:
Create a Statement of Cash Flows for 2019.

Answers

Answer:

Ravensclaw Corporation

Statement of Cash Flows for the year ended December 31, 2019:

Net income                           $208,000

Add non-cash expense:

Depreciation expense              22,100

Loss from sale of investment  13,000

Cash from operations         $243,100

Adjustments of working capital:

Accounts receivable               $6,500

Current liabilities                    -22,100

Net cash from operations $227,500

Investing activities:

Cash from investment sale   15,600

Equipment                            -75,400

Financing activities:

Cash dividends paid            -39,000

Net cash flows                   $128,700

Explanation:

a) Data and Calculations:

                                            2019          2018      Differences

Cash                               $230,100     $101,400  +$128,700

Accounts receivable       234,000     240,500   -$6,500

Investments                      67,600        96,200   -$28,600

Equipment                      387,400       312,000   +$75,400

Accumulated Depreciation-

Equipment                    (137,800)      (115,700)   +$22,100 Depreciation Exp.

Current liabilities           174,200       196,300     -$22,100

Common stock            208,000      208,000      $0

Retained earnings        399,100      230,100      +$169,000

Cash dividends                                                    +$39,000

Net income = $208,000 ($169,000 + $39,000)

Cash from sold investments = $15,600 ($28,600 - $13,000)

The information below pertains to Barkley Company for 2015.
Net income for the year $2,240,000
9% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 2,112,000
6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock 4,707,000
Common stock, $10 par value 6,959,000
Tax rate for 2015 45%
Average market price of common stock $25 per share
There were no changes during 2015 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 75,800 shares of common stock at $15 per share.
(a) Compute basic earnings per share for 2015. (Round answer to 2 decimal places, e.g. $2.55.)
Basic earnings per share
$
(b) Compute diluted earnings per share for 2015. (Round answer to 2 decimal places, e.g. $2.55.)
Diluted earnings per share
$

Answers

Ok I am so sorry I don’t know the answer to this question 2/3 + 4:2

Muecke Inc. is working on its cash budget for April. The budgeted beginning cash balance is $40,000. Budgeted cash receipts total $150,000 and budgeted cash disbursements total $158,000. The desired ending cash balance is $50,000. To attain its desired ending cash balance for April, the company needs to borrow: Group of answer choices $18,000 $0 $50,000 $82,000

Answers

Answer:

See

Explanation:

For the coming year, Cleves Company anticipates a unit selling price of $100, a unit variable cost of $60, and fixed costs of $480,000.

Required:
1. Compute the anticipated break-even sales in units.
2. Compute the sales (units) required to realize a target profit of $240,000.
3. Construct a cost-volume-profit chart, assuming maximum sales of 20,000 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even.

$1,200,000 SelectBreak-evenLossProfitItem 3
$1,000,000 SelectBreak-evenLossProfitItem 4
$800,000 SelectBreak-evenLossProfitItem 5
$400,000 SelectBreak-evenLossProfitItem 6
$200,000 SelectBreak-evenLossProfitItem 7

4. Determine the probable income (loss) from operations if sales total 16,000 units.

Answers

Solution :

1. The break even sales in units is given by :

   Break even sales in units = [tex]$\frac{\text{fixed cost}}{\text{contribution per unit}}$[/tex]

Where, contribution per unit = selling price per unit - variable cost per unit

The anticipated break even sales in units of Cleaves company in the coming year is :

Break even sales in units = [tex]$\frac{480,000}{40}$[/tex]

Contribution per unit = $ 100 - $ 60

                                   = $ 40

So the company anticipates its breakeven sales at 12,000 units.

2. In order tot earn profit the sales generated should overcome the breakeven point. The desired profit is $240,000, the sales required to earn the desired profit can be computed using the formula :

Desired sales in units = [tex]$\frac{\text{fixed cost + desired cost}}{\text{contribution per unit}}$[/tex]

                                    [tex]$=\frac{480,000+240,000}{40}$[/tex]

                                    = 18,000 units

Thus, the sales in units required to earn a profit of $ 240,000 are 18,000 units.

3. The sales in excess of the breakeven point would yield a profit on the contrary the sales below the breakeven point would result in a loss.

In the given sales in dollar =  breakeven sales in units x selling price per unit

                                           = 12,000 x 100

                                           = $ 1,200,000

∴ the sales above $1,200,000 would result in a profit whereas the sales below $1,200,000 would result in loss.

The cost volume profit chart below indicates the profit, loss, breakeven at different sales levels :

Sales levels           Result

1,200,000          Breakeven

1,000,000           Loss

800,000             Loss

400,000             Loss

200,000            Loss

4. The income on sale of 16,000 units is computed below :

Particulars                        Amount is $

Sales                                 1,600,000

Less : variable cost           960,000

Contribution                      640,000

Less : Fixed cost               480,000

Profit                                  160,000

The break-even sales in units are calculated as follows:

What is Break Even Point ?

Breakeven unit sales =

In this case, contribution per unit equals selling price per unit minus variable cost per unit.

The Cleaves Company's estimated break-even unit sales for the upcoming year are:

Breakeven unit sales =

Contribution per unit equals $100 minus $60.

= $ 40

The business therefore projects 12,000 units as its breakeven sales.

(2) 2. Sales must exceed the breakeven point in order to create a profit. The sales needed to achieve the desired profit, which is $240,000, can be calculated using the formula:

Ideally, sales would equal

= 18,000 units

Thus, the sales in units required to earn a profit of $ 240,000 are 18,000 units.

(3)  3. Sales beyond the breakeven threshold would result in a profit; sales below the breakeven point, on the other hand, would result in a loss.

Sales in dollars for the given period equal breakeven sales in units times selling price per unit.

= 12,000 x 100

= $ 1,200,000

Sales that exceed $1,200,000 generate a profit, whilst sales that go below that threshold generate a loss.

The following cost volume profit chart shows the profit, loss, and breakeven points at various sales levels:

Resulting sales levels

Breakeven is 1,000,000

1,000,000 Loss

800,000 Loss

400,000 Loss

200,000 Loss

4. The earnings from the sale of 16,000 units are calculated as follows:

Particulars The amount is $

Sales 1,600,000

Variable cost is 960,000 less.

640,000 dollars were contributed.

Less: 480,000 in fixed costs.

Gain of 160,000

Learn more about Break Even Point here

https://brainly.com/question/29063970

# SPJ 2

central bank definition ​

Answers

Explanation:

a national bank that provides financial and banking services for its country's government and commercial banking system, as well as implementing the government's monetary policy and issuing currency.

Statute of frauds is used as a defense to a lawsuit and not as an offense. For example, S owns a lot that B wishes to purchase. They enter into a verbal contract whereby B will deliver $6,000 at noon on Friday to S, and S will provide B with the deed to the property. If either party breaches the contract for the sale of the real estate lot and is sued by the other party, the defendant may raise statute of frauds as a defense, saying that there is nothing in writing or signed by the defendant.

Required:
What is the result?

Answers

Answer:

Since both parties can breach the contract without fearing any penalty as a result of doing it, its execution will depend on the good will of both parties. It will also require a coordinated action where B hands out the money at the same time they are receiving the deed. If both things do not occur simultaneously, for example, S promises to deliver the deed the next day or B promises to pay the next day, they will not do it. For example, B pays the $5,000 and S decides to increase the price to $10,000. Or S gives the deed and B says that the agreed price was $1,000.

Question 7 (4 points)
Saved
Which of the following inestments would be considered the most liquid?

Question 7 options:

Real Estate


A one year CD


A standard savings account


A 401k

Answers

i think A
hope this helps!! <3

Problem 8-15 Nonconstant Growth [LO1] Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $15 per share 10 years from today and will increase the dividend by 6 percent per year thereafter. If the required return on this stock is 12 percent, what is the current share price

Answers

Answer:

$84.14

Explanation:

P9 = Nest dividend (D10) / Required rate (r) - Growth rate (g)

P9 = $14 / 12% - 6%

P9 = $14 / 0.06

P9 = $233.33

P0 = P9 / (1+Required rate of return)^9

P0 = $233.33/(1+0.12)^9

P0 = $233.33/2.7731

P0 = $84.1404926

P0 = $84.14

So, the current share price is $84.14

LUVFINANCE, Inc. is estimating its WACC. It is operating at its optimal capital structure. Its outstanding bonds have a 12 percent coupon, paid semiannually, a current maturity of 17 years, and sell for $1,162. It has 100,000 bonds outstanding. The firm can issue new 20-year maturity semiannual bonds at par but will incur flotation costs of $50 per bond. The firm could sell, at par, $100 preferred stock that pays a 12 percent annual dividend that is currently selling for $120. The firm currently has 1,000,000 shares of preferred stock outstanding. Rollins' beta is 0.94, the risk-free rate is 3.72 percent, and the market risk premium is 6 percent. The common stock currently sells for $100 a share and there are 5,000,000 shares outstanding. The firm's marginal tax rate is 40 percent.

Required:
What is the WACC?

Answers

Solution :

Given :

The cost of the debt is yield to the maturity of the bonds.

The yield on the bond is 10%

The tax rate is 40%

After the tax cost of the debt = 10 ( 1- 0.4 )

                                          = 6 %

Add floatation cost at the rate of 5% = 11%

Cost of the preferred stock = [tex]$\frac{\text{dividend}}{\text{price}}$[/tex]

                                             = [tex]$\frac{120}{12}$[/tex] = 10%

The cost of equity = risk free rate + β x market risk premium

                              = 3.72 + 0.94 x 6

                              = 9.36%

WACC is weighted average of the individual securities :

Particulars  Value per  No. of       Market value   Weight   Cost of    Product

                   security    securities                                         security

Bonds           1162        100,000   116,200,000     0.1578      11         1.73621298

Preferred      120       1,000,000  120,000,000    0.1629     10         1.6299918

stocks

Equity           100        5,000,000 500,000,000   0.6791    9.36      6.356968

                                                      736,200,000       1         WACC    9.7231730

Therefore, WACC of the firm is 9.72%

Bruce Corporation makes four products in a single facility. These products have the following unit product costs:

Products
A B C D
Direct materials $16.10 $20.00 $13.00 $15.70
Direct labor 18.10 21.50 15.90 9.90
Variable manufacturing overhead 4.90 6.10 8.60 5.60
Fixed manufacturing overhead 28.00 14.90 15.00 17.00
Unit product cost 67.10 62.50 52.50 48.20

Additional data concerning these products are listed below.

Products
A B C D
Grinding minutes per unit 2.25 1.35 0.95 0.55
Selling price per unit $81.20 $73.60 $70.40 $65.10
Variable selling cost per unit $3.10 $3.60 $3.30 $4.00
Monthly demand in units 3,500 2,500 2,500 4,500

The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available per month on these machines. Direct labor is a variable cost in this company.

Required:
Which product makes the MOST profitable use of the grinding machines?

Answers

Answer:

Product D

Explanation:

Calculation to determine Which product makes the MOST profitable use of the grinding machines

First step is to calculate the Variable cost per unit

Products

A B C D

Direct materials $16.10 $20.00 $13.00 $15.70

Add Direct labor 18.10 21.50 15.90 9.90

Add Variable manufacturing overhead 4.90 6.10 8.60 5.60

Add Variable selling cost per unit $3.10 $3.60 $3.30 $4.00

Variable cost per unit $42.20 $51.60 $40.80 $35.20

Now let calculate the product that makes the MOST profitable use of the grinding machines

Selling price per unit $81.20 $73.60 $70.40 $65.10

Less Variable cost per unit $42.20 $51.60 $40.80 $35.20

=Contribution margin per unit $39 $22 $29.60 $29.90

÷Grinding minutes per unit 2.25 1.35 0.95 0.55

=Contribution per grinding minutes $17.33 $16.30 $31.16 $54.36

Therefore Based on the above calculation the product that makes the MOST profitable use of the grinding machines is PRODUCT D because it has the highest Contribution per grinding minutes of the amount of $54.36

Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.2%, a YTM of 7.2%, and has 17 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 7.2%, a YTM of 9.2%, and also has 17 years to maturity. Assume the interest rates remain unchanged and both bonds have a par value of $1,000.
1. What are the prices of these bonds today?
2. What do you expect the prices of these bonds to be in one year?
3. What do you expect the prices of these bonds to be in three years?
4. What do you expect the prices of these bonds to be in eight years?
5. What do you expect the prices of these bonds to be in 12 years?
6. What do you expect the prices of these bonds to be in 17 years?

Answers

Answer:

I used an Excel spreadsheet to calculate the answers (see attached file):

1. What are the prices of these bonds today?

bond X = $1,194

bond Y = $830

2. What do you expect the prices of these bonds to be in one year?

bond X = $1,194

bond Y = $830

3. What do you expect the prices of these bonds to be in three years?

bond X = $1,175

bond Y = $844

4. What do you expect the prices of these bonds to be in eight years?

bond X = $1,131

bond Y = $879

5. What do you expect the prices of these bonds to be in 12 years?

bond X = $1,083

bond Y = $921

6. What do you expect the prices of these bonds to be in 17 years?

bond X = $1,046

bond Y = $1,036

A food worker has prepared a large pot of rice that must be cooled. How should the food worker cool the rice safely?

Answers

Answer:

Cover the pot and leave it at room temperature.

Explanation:

That's how a food worker would cool rice safely.

Answer: Cover the pot and leave it at room temperature.

Explanation: took the test

Bob is a farmer and is required to use the accrual method. At the beginning of the year, Bob has inventory, including livestock held for resale, amounting to $10,000. During the year, Bob purchased livestock totaling $3,000. Bob's ending inventory was $4,000. Bob's net sales for the year totaled $17,000. What is Bob's gross profit for the current year

Answers

Answer:

$3,000

Explanation:

Gross Profit = Sales - Cost of Sales

Prepare a Trading Account for Bob to determine gross profit.

On March 1, 2019, Rasheed Company assigns $825,000 of its accounts receivable to the Third National Bank as collateral for a $600,000 loan due April 1, 2019. The assignment agreement calls for Rasheed Company to continue to collect the receivables. Third National Bank assesses a finance charge of 2.5% of the accounts receivable, and interest on the loan is 8% (a realistic rate of interest for a note of this type).

Required:
a. Prepare the March 1, 2019, journal entry for Rasheed Company.
b. Prepare the journal entry for Rasheed's collection of $750,000 (need to factor out discounts and sales returns) of the accounts receivable during March of 2019. Sales discounts of $8,000 apply, as well as $22,000 of sales returns.
c. On April 1, 2019, Rasheed paid Third National all that was due from the loan it secured on March 1, 2019. Prepare the journal entry to record this payment.

Answers

Answer:

A.Dr Cash 579,375

Dr Finance charge 20,625

Cr Loan payable 600,000

Dr Accounts Receivable Assigned 825,000

Cr Accounts Receivable 825,000

b) Dr Cash 750,000

Cr Sales discounts 8,000

Cr Sales returns 22,000

Cr Accounts Receivable Assigned 720,000

c)Dr Loan Payable 600,000

Cr nterest expense 4,000

Cr Cash 596,000

Explanation:

a. Preparation for March 1, 2019, journal entry for Rasheed Company

March 01,2019

Dr Cash 579,375

(600,000-20,625)

Dr Finance charge (825,000*2.5%) 20,625

Cr Loan payable 600,000

(Loan amount received)

March 01,2019

Dr Accounts Receivable Assigned 825,000

Cr Accounts Receivable 825,000

(Assigning Accounts receivable)

b.Preparation of the journal entry for Rasheed's collection of the amount of $750,000 of the accounts receivable during March of 2019

March, 2019

Dr Cash 750,000

Cr Sales discounts 8,000

Cr Sales returns 22,000

Cr Accounts Receivable Assigned 720,000

(750,000-8,000-22,000)

C.Preparation of the journal entry to record this payment.

April 01,2019

Dr Loan Payable 600,000

Cr nterest expense (600,000*8%*1/12) 4,000

Cr Cash 596,000)

(600,000-4,000)

(Loan settled along with interest)

Nancy, the owner of a very successful hotel chain in the Southeast, is exploring the possibility of expanding the chain into a city in the Northeast. She incurs $35,000 of expenses associated with this investigation. Based on the regulatory environment for hotels in the city, she decides not to expand. During the year, she also investigates opening a restaurant that will be part of a national restaurant chain. Her expenses for this are $53,000. The restaurant begins operations on September 1.
Determine the amount Nancy can deduct in the current year for investigating these two businesses.

Answers

Answer:

$3,133.

As regard to opening a restaurant,  investigation expense = 53,000 - 2000 = $51,000.

Explanation:

Before diving straight into the solution to this problem, let's take out some of the parameters given in the question above.

=> Nancy incurs $35,000 of expenses associated with the investigation of the possibility of expanding the chain into a city in the Northeast.

=> Nancy expenses for investigates opening a restaurant that will be part of a national restaurant chain are $53,000.

The first thing to do right now is to determine the value for the  investigation as regard to the opening of a restaurant = [ 2000 × (51,000/180 months) × 4] = $3,133.

The next thing is to determine the value for the deduction which is available. This can be done below as:

The amount Nancy can deduct in the current year for investigating these two businesses = 5000 - [ 53000 - 50000] = $2, 000

As regard to opening a restaurant,  investigation expense = 53,000 - 2000 = $51,000.

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