Answer:
Good Night, Inc.
Cost of goods sold budget
Beginning Finished Goods Inventory $51,000
Add Cost of Goods Manufactured $980,000
Less Ending Finished Goods Inventory ($48,000)
Cost of goods sold $947,000
Explanation:
Step 1 : Determine the Direct Materials used in Production
Beginning Materials Inventory $33,000
Add Material Purchases $555,000
Less Ending Materials Inventory ($29,000)
Direct Materials used in Production $559,000
Step 2 : Determine the Cost of Goods Manufactured
Beginning Work In Process Inventory $28,000
Add Manufacturing Costs :
Direct Materials used $559,000
Direct labor $252,000
Factory overhead $176,000 $987,000
Less Ending Work In Process Inventory ($35,000)
Cost of Goods Manufactured $980,000
Step 3 : Prepare the Cost of goods sold budget
Beginning Finished Goods Inventory $51,000
Add Cost of Goods Manufactured $980,000
Less Ending Finished Goods Inventory ($48,000)
Cost of goods sold $947,000
Problem 10-39 (LO. 2, 3, 4, 5, 6, 7) Linda, who files as a single taxpayer, had AGI of $280,000 for 2020. She incurred the following expenses and losses during the year: Medical expenses (before the 7.5%-of-AGI limitation) $33,000 State and local income taxes 4,800 State sales tax 1,300 Real estate taxes 6,000 Home mortgage interest 5,000 Automobile loan interest 750 Credit card interest 1,000 Charitable contributions 7,000 Casualty loss (before 10% limitation but after $100 floor; not in a Federally declared disaster area) 34,000 Unreimbursed employee business expenses 7,600 Calculate Linda's allowable itemized deductions for the year. $fill in the blank 1 .
Answer: $34,000
Explanation:
As of the Tax Cuts and Jobs Act of 2017, Unreimbursed employee business expenses and Casualty loss can no longer be deducted.
Linda's itemized deductions are:
= Medical expenses + State and local taxes + Home mortgage interest + Charitable contributions.
Medical expenses after 7.5% of AGI limitation:
= 33,000 - (7.5% * 280,000)
= $12,000
State and local taxes have a maximum deduction of $10,000.
Linda's allowable itemized deductions for the year:
= 12,000 + 10,000 + 5,000 + 7,000
= $34,000
Take a deck of playing cards and remove the aces, jacks, queens, kings, and jokers. Imagine that any remaining card in the deck is a single individual, either a seller or a consumer, and all are gathered at a single perfectly competitive market. Red cards are sellers, and black cards are consumers. The number on a card indicates the individual's WTP or MC. Each seller owns a single unit of an indivisible good. Each consumer can buy at most one unit of the good from a seller. Then the market outcome will be
Answer:
the equilibrium price is 6 and units sold is 10
Explanation:
In the case when we eliminate all the jacks, queens, aces and kings we have a total of 36 card that left with the numbers from 2 to 10
also there are 18 red card of sellers and 18 black card of buyers
Now the following table should be prepared
Price Quantity demanded Quantity supplied
2 18 2
3 16 4
4 14 6
5 12 8
6 10 10
7 8 12
8 6 14
9 4 16
10 2 19
As we can see that at the price of 6 the quantity demanded would be equivalent to the quantity supplied
So, the equilibrium price is 6 and units sold is 10
Sujito Electronix makes headphones for $22 and sells them for $32. Sujito has sold at least 50 headphones on average per week in the past, though the actual demand is unknown. Sujito has also often run short of supply in the past. After three months of release, the headphones are sold at 40 percent discount. The spreadsheet below shows Sujito's sales and demand for the headphones. We take demand at 51, and quantity produced at 55. Newsvendor model for Sujito's headphones Data Selling Price $32 Cost $22 Discount Price $19.2 Model Demand 51 Produced Quantity 55 Quantity Sold Surplus Quantity What is the net profit for the headphones
Answer:
The net profit for the headphones is $498.80.
Explanation:
Quantity produced = 55
Quantity sold at normal selling price of $32 = Demand = 51
Quantity sold at discount price of $19.20 = Quantity produced - Demand = 55 - 51 = 4
Total revenue = (Demand * $32) + (Quantity sold at discount price of $19.20 * $19.20) = (51 * $32) + (4 * $19.20) = $1,708.80
Total cost = Cost * Quantity produced = $22 * 55 = $1,210
Net profit = Total revenue - Total cost = $1,708.80 - $1,210 = $498.80
Therefore, the net profit for the headphones is $498.80.
8. What is an example of a situation in which a shortage is caused by a change in
supply?
Answer:
Temporary supply constraints, e.g. supply disruption due to weather or accident at a factory.
Fixed prices – and unexpected surge in demand, e.g. demand for fuel in cold winter.
Government price controls, such as maximum prices.
Monopoly which restricts supply to maximise profits.
You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.12 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio
Answer:
Beta for the other stock = 1.88
Explanation:
A portfolio is said to be as risky as the market where its beta is exactly equal to 1. A beta of greater than 1 implies the portfolio is riskier than the average market, and less risky where the beta is less than 1.
A portfolio that has an equal proportion of three asset would mean a weight of 1/3 for each asset
So we can represent the portfolio beta as follows:
1 = 1/3×(0) + 1/3× (1.12) + 1/3×y
1= 0.37 + 0.33y
0.33y = 0.626
y= 0.626/0.33
y= 1.88
Beta for the other stock = 1.88
Fred is a car owner with automobile insurance with coverage only for accident liability. Choose the statements that accurately
describes the out-of-pocket costs to Fred for an accident that was determined to be Fred's fault.
A)
Fred must pay for the damages to the car with which he was in an accident
B)
Fred must pay for the damages done to his own car resulting from the
accident
Fred must pay for the bodily injuries to the other driver involved in the
accident
Fred must pay for any increases to his insurance premium occurring due to
the accident
D)
E)
Fred must pay for any of his own medical bills not covered by his own
health insurance resulting from the accident.
Answer:
B) Fred must pay for the damages done to his own car resulting from the accident.E) Fred must pay for any of his own medical bills not covered by his own health insurance resulting from the accident.Explanation:
Fred has insurance coverage for only accident liability. This means that his insurance will only pay for damage to the other party in the accident if it was Fred's fault and they will not cover Fred's own expenses.
Fred must therefore pay for damages done to his own car because his insurance will not cover that. Any medical bills that he incurs as a result of the accident that his medical insurance does not pay for will also have to be paid by him.
An economy that produces goods and services based on long standing
customs is a
A command economy
D. market economy
c. mixed economy
ОО
D. traditional economy
Answer:c
Explanation:
SOMEONE PLEASE HELP I WILL GIVE BRAINLIEST
Answer:
Can you paste it?
Explanation:
Your company, a small start-up corporation, buys raw materials from Regina Fabrics on credit. Because her company has had several problems over the recent months, Regina demands either full payment in advance or a guaranty from someone with proof of assets to cover the debt. Your company does not have the cash on hand but you have sufficient assets to cover the debt and so you sign a guaranty on a six-month loan for the fabric. After two months, your company has the cash to pay off the loan and your financial officer offers to pay Regina. Because of some issues with her company, she refuses to accept payment and requests that you continue to pay the monthly payments. A month later your company is now short on cash and Regina comes to you as the guaranty and requests that you make the payment. You are unhappy that she didn't accept the payment when you had the cash. Evaluate whether or not you should have to pay as the guaranty.
Answer: See explanation
Explanation:
I believe that the main thing here that can favor my company is if there's documentation for every process involved with my dealings with Regina Fabrics.
This could have been solved if she didn't reject the cash that was offered to her company after two months, so there should be a formal documents that shows that she rejected the cash which should be acknowledged and signed by her. Also, the monthly payments received by her should be documented as well.
With regards to the above, if there is a formal documentation in place, then I won't have to pay as the guaranty but if this isn't in place, then I may have to pay since there won't be evidences against her.
Gundy Company expects to produce 1,304,400 units of Product XX in 2020. Monthly production is expected to range from 87,000 to 127,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $7, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $1.
In March 2020, the company incurs the following costs in producing 107,000 units: direct materials $455,000, direct labor $746,000, and variable overhead $971,000. Actual fixed costs were equal to budgeted fixed costs.
Prepare a flexible budget report for March. (List variable costs before fixed costs.)
Answer:
Gundy Company
Manufacturing Flexible Budget Report
For the Month Ended March 31, 2020
Budget Actual
Units produced 107,000 107,000
Variable Costs:
Direct Materials $428,000 $455,000 $27,000 U
($4 * 107,000)
Direct labor $749,000 $746,000 $3,000 F
($7 * 107,000)
Overhead $963,000 $971,000 $8,000 U
($9 ×* 107,000)
Total variable costs $2,140,000 $2,172,000 $32,000 U
Fixed Costs:
Depreciation $434,800 $434,800 $0
Supervision $108,700 $108,700 $0
Total fixed costs $543,500 $543,500 $0
Total costs $2,683,500 $2,715,500 $32,000 U
Workings:
Depreciation = (1,304,400 * $4) / 12 = $5,217,600 / 12 = $434,800
Supervision = (1,304,400 * $1) / 12 = $1,304,400 / 12 = $108,700
M&M's Proposition II suggests that in a world of no taxes and no bankruptcy, ________. A. in simple terms, as the firm adds more debt to the financing mix, the shareholders require a higher and higher return on equity such that it exactly offsets the use of the cheaper debt B. no matter what the debtequity ratio is, the Ra or WACC of the firm increases with debt C. the value of the firm is sensitive to the funding choice between debt and equity D. Statements A, B, and C are all incorrect.
Answer:
A
Explanation:
Why is it important for developers to be careful when using cascading deletes?
They may create orphaned records.
They may link to data in external databases.
They may delete more records than intended.
They may disconnect the bond between tables.
Answer:
C. They may delete more records than intended.
Explanation: Just answered it on edg. 2021
Answer:
(C) They may accidentally delete more records than intended.
Explanation:
an Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 9,100,000 $ 21,000,000 Net operating income $ 455,000 $ 1,470,000 Average operating assets $ 2,275,000 $ 10,500,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 12%. Compute the residual income for each division.
Answer:
Part 1 - ROI
In terms of Margin :
Division Osaka = 20 %
Division Yokohama = 14 %
In terms of Turnover :
Division Osaka = 400 %
Division Yokohama = 200 %
Part 2 - Residual Income
Division Osaka = $182,000
Division Yokohama = $210,000
Explanation:
Return on investment (ROI) = Divisional Profit Contribution / Assets Employed in the division x 100
In terms of Margin :
Division Osaka = $ 455,000 / $ 2,275,000 x 100 = 20 %
Division Yokohama = $ 1,470,000/ $ 10,500,000 x 100 = 14 %
In terms of Turnover :
Division Osaka = $ 9,100,000 / $ 2,275,000 x 100 = 400 %
Division Yokohama = $ 21,000,000/ $ 10,500,000 x 100 = 200 %
Residual income = Controllable Profit - Cost of Capital Charge on Controllable Investment
Therefore,
Division Osaka = $ 455,000 - $ 2,275,000 x 12 % = $182,000
Division Yokohama = $ 1,470,000 - $ 10,500,000 x 12 % = $210,000
Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year: Budgeted Operating Results MT ET MT ET Price per pound $ 40 $ 60 $ 50 $ 56 Variable cost per pound 20 36 24 40 Sales (in pounds) 4,000 4,000 3,960 5,040 The total market was estimated to be 80,000 pounds at the time of budget. The actual total market for the year is 75,000 pounds. What is the total contribution margin sales volume variance
Answer:
$24,160 favorable
Explanation:
The computation of the total contribution margin sales volume variance is given below:
The Budgeted contribution margin per pound of MT is
= $40 - $20
= $20 per pound
Now the budgeted contribution margin per pound of ET is
= $60 - $30
= $24 per pound
MT's contribution margin sales volume variance is
= (Actual sales quantity - Budgeted sales quantity) × Budgeted contribution margin per pound
= (3960 - 4000) × $20
= $800 Unfavorable
ET's contribution margin sales volume variance is
= (Actual sales quantity - Budgeted sales quantity) × Budgeted contribution margin per pound
= (5,040 - 4000) × $24
= $24,960 favorable
Now the total contribution margin sales volume is
= $800 unfavorable + $24,960 favorable
= $24,160 favorable
who is she what’s her product and company??
Answer:Harpo Productions (or Harpo Studios) is an American multimedia production company founded by Oprah Winfrey and based in West Hollywood, California. It is the sole subsidiary of her media and entertainment company Harpo, Inc.
Explanation:
If foreign manufacturers cut manufacturing costs and profit margins in response to a depreciation in the U.S. dollar, the effect of these actions is to a. lengthen the amount of time in which the depreciation leads to a smaller trade deficit. b. shorten the amount of time in which the depreciation leads to a smaller trade surplus. c. shorten the amount of time in which the depreciation leads to a smaller trade deficit. d. lengthen the amount of time in which the depreciation leads to a smaller trade surplus.
Answer:
a. lengthen the amount of time in which the depreciation leads to a smaller trade deficit.
Explanation:
Depreciation can be defined as the reduction of cost of a fixed asset systematically until the value of the asset becomes zero.
The Modified Accelerated Cost Recovery System (MACRS) can be defined as a depreciation system that avails business owners or companies the ability and opportunity to recover or recoup the cost basis of physical assets that have experienced deterioration over a specific period of time.
In the United States of America, the Modified Accelerated Cost Recovery System (MACRS) is used mainly for tax purposes because it gives room for faster depreciation of a physical asset in its first years or initial usage and reduces depreciation as it is being used over a long period of time.
Hence, if foreign manufacturers cut or reduce their manufacturing costs and profit margins in response to a depreciation in the U.S. dollar, the effect of these actions is certainly to lengthen or increase the amount of time in which the depreciation in the U.S dollars leads to a smaller trade deficit.
A deficit can be defined as an amount by which money, falls short of its expected value.
In Financial accounting, deficit is usually as a result of revenue falling below expenses or expense exceeding revenue at a specific period of time.
For instance, if in a country liabilities exceeds assets or import exceeds export there would be a deficit in the financial account of the country. This is simply as a result of a country having to import more goods and services than it is exporting to other countries in trade.
In conclusion, a trade deficit is caused because the value of goods and services exported is lower than the value of goods and services being imported in a particular country.
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 12%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC is 10.30%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
11.36%
Explanation:
According to the scenario, computation of the given data are as follows,
Debt = 45%
Common equity = 55%
YTM = 12%
Tax rate = 25%
WACC = 10.30%
So, we can calculate the cost of equity by using following formula,
WACC = Debt × YTM (1 - Tax rate) + Common Equity × Cost of Equity
By putting the value, we get
10.30% = 45% × 12% × (1 - 25%) + 55% × Cost of Equity
0.103 = 0.45 × 0.12 ( 0.75) + 0.55 × Cost of Equity
0.103 = 0.0405 + 0.55 × cost of equity
0.103 - 0.0405 = 0.55 × cost of equity
Cost of equity = 0.0625 ÷ 0.55
So, Cost of equity = 0.1136 or 11.36%
Kumar Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $214,000,000 at both cost and realizable value. At December 31, 2020, the inventory was $286,000,000 at cost and $265,000,000 at realizable value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method. g
Answer:
A. Dr Cost of Goods Sold $21,000,000
Cr Allowance to Reduce Inventory to Market $21,000,000
B. Dr Loss Due to Market Decline of Inventory $21,000,000
Cr Allowance to Reduce Inventory to Market $21,000,000
Explanation:
A.Preparation of the necessary December 31 entry under the cost-of-goods-sold method
COST-OF-GOODS-SOLD METHOD
Dr Cost of Goods Sold $21,000,000
Cr Allowance to Reduce Inventory to Market $21,000,000
($286,000,000 - $265,000,000)
B.Preparation of the necessary December 31 entry under the Loss method
LOSS METHOD
Dr Loss Due to Market Decline of Inventory $21,000,000
Cr Allowance to Reduce Inventory to Market $21,000,000
($286,000,000 - $265,000,000)
Differential Chemical produced 14,000 gallons of Preon and 28,000 gallons of Paron. Joint costs incurred in producing the two products totaled $7,800. At the split-off point, Preon has a market value of $6.00 per gallon and Paron $2.00 per gallon. Compute the portion of the joint costs to be allocated to Preon if the value basis is used.Multiple Choice$1,560.$5,845.$2,600.$4,680.$3,120.
Answer: $4680
Explanation:
The joint cost allocated to Preon will be calculated below as:
Preon's value will be:
= 14000 × $6.00
= $84000
Paron's value will be:
= 28000 × $2.00
= $56000
Total value = Preon's value + Paron's value
= $84000 + $56000
= $140000
The joint cost allocated to Preon will be
= 7800 × 84000/140000
= $4680
Honey Bell Corporation has the following information about its Eclipse Product: Honey Bell Corporation Eclipse Product Expected Sales 10,000 units Direct material and labor costs $ 150 per unit Variable manufacturing overhead $ 20 per unit Fixed manufacturing overhead $ 300,000 Fixed selling and administrative expenses $ 150,000 Average operating assets $ 2,000,000 Required return on investment 20 % What is the amount of the markup percentage on the absorption cost that should be used to derive the selling price of this product
Answer:
Mark- up = 23.3%
Explanation:
Absorption costing is method of costing where overheads are charged to units produced using volume-based bases. e.g machine hours, labour hours e.t.c. Units are valued using full cost per unit
Full cost per unit= Direct material cost + direct labor cost + Variable production overhead + Fixed production overhead
Fixed production overhead = Budgeted overhead/Budgeted production units
Fixed production overhead = $300,000/150,000 units=2
Total cost = 150 + 20 + 2= $172
Total cost per unit using absorption costing = $172
Desired ROI = 20%. × 2,000,000= $400,000
Profit per unit = 400,000/10,000 units =40
Mark- up = Profit/Cost = 40/172× 100 = 23.3%
Mark- up = 23.3%
Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2018. The manufacturing cost of the computers was $130,000. This noncancelable lease had the following terms: Lease payments: $23,000 semiannually; first payment at January 1, 2018; remaining payments at June 30 and December 31 each year through June 30, 2022. Lease term: five years (10 semiannual payments). No residual value; no purchase option. Economic life of equipment: five years. Implicit interest rate and lessee's incremental borrowing rate: 5% semiannually. What is the outstanding balance of the lease liability in Lone Star's December 31, 2018, balance sheet
Answer:
$89,350
Explanation:
Calculation to determine the outstanding balance of the lease liability in Lone Star's December 31, 2018, balance sheet
First step is to calculate the Balance after first payment
Initial lease liability $130,000
Less: First payment $23,000
Balance after first payment $107,000
Second step is to calculate the Interest expense for June 30,2021
Interest expense for June 30,2021= $107,000*5%
Interest expense for June 30,2021=$5,350
Third step is to calculate the Principal payment for June 30,2021
Principal payment for June 30,2021=$23,000-$5,350
Principal payment for June 30,2021=$17,650
Now let calculate the Outstanding balance on June
Balance after first payment. $107,000
Less: Principal payment for June $17,650
Outstanding balance on June $89,350
Therefore the outstanding balance of the lease liability in Lone Star's December 31, 2018, balance sheet is $89,350
One of the departments at Yolo Industries has entered into a 9 year lease for a piece of equipment. The annual payment under the lease will be $3,800, with payments being made at the beginning of each year. If the discount rate is 12%, the present value of the lease payments is closest to (Ignore income taxes.): Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided.
Answer:
PV= $22,677.03
Explanation:
Giving the following formula:
Number of periods (n)= 9 years
Annual payment (A)= $3,800
Discount rate (i)= 12%
First, we will calculate the future value of the payments using the following formula:
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
FV= {3,800*[(1.12^9) - 1]} / 0.12 + {[3,800*(1.12^9)] - 3,800}
FV= 56,147.49 + 6,737.7
FV= $62,885.19
Now, the present value:
PV= FV / (1 + i)^n
PV= 62,885.19 / (1.12^9)
PV= $22,677.03
Inventories Raw materials $ 42,000 $ 32,000 Work in process 9,100 18,300 Finished goods 57,000 34,300 Activities and information for May Raw materials purchases (paid with cash) 172,000 Factory payroll (paid with cash) 100,000 Factory overhead Indirect materials 6,000 Indirect labor 23,000 Other overhead costs 103,000 Sales (received in cash) 1,000,000 Predetermined overhead rate based on direct labor cost 55 %
Compute the following amounts for the month of May using T-accounts
1. Cost of direct materials used
2. Cost of direct labor used
3. Cost of goods manufactured
4. Cost of goods sold.
5. Gross profit
6. Overapplied or underapplied overhead
Prepare journal entries for the above transactions for the month of May. View transaction list Journal entry worksheet Record the application of overhead to work in process
Note: Enter debits before credits.
Transaction General Journal Debit Credit
Record entry Clear entry View general journal
Answer:
a. Computation of the following amounts for the month of May using T-accounts:
1. Cost of direct materials used = $176,000
2. Cost of direct labor used = $77,000
3. Cost of goods manufactured = $286,150
4. Cost of goods sold = $308,850
5. Gross profit = $691,150
6. Overapplied or underapplied overhead = $89,650 (underapplied)
b. Journal Entries:
Debit Raw materials $172,000
Credit Cash $172,000
To record the purchase of raw materials for cash.
Debit Factory payroll $100,000
Credit Cash $100,000
To record the payroll paid in cash.
Debit Factory overhead:
Indirect materials $6,000
Indirect labor $23,000
Other overhead costs 103,000
Credit Raw materials $6,000
Credit Factory payroll $23,000
Credit Cash $103,000
To record indirect materials, labor and other costs.
Debit Work in process $42,350
Credit Factory overhead $42,350
To apply overhead based on direct labor cost 55%.
Debit Cash $1,000,000
Credit Sales Revenue $1,000,000
To record the sale of goods for cash.
Explanation:
a) Data and Calculations:
Inventories:
Raw materials $ 42,000 $ 32,000
Work in process 9,100 18,300
Finished goods 57,000 34,300
Activities for May:
Raw materials purchases (paid with cash) 172,000
Factory payroll (paid with cash) 100,000
Factory overhead:
Indirect materials 6,000
Indirect labor 23,000
Other overhead costs 103,000
Sales (received in cash) 1,000,000
Predetermined overhead rate based on direct labor cost 55%
T-accounts:
Raw materials
Beginning balance $ 42,000
Cash 172,000
Manufacturing overhead 6,000
Work in process 176,000
Ending balance $ 32,000
Work in process
Beginning balance 9,100
Raw materials 176,000
Payroll 77,000
Overhead applied 42,350
Finished goods 286,150
Ending balance 18,300
Finished goods
Beginning balance 57,000
Work in process 286,150
Cost of goods sold 308,850
Ending balance 34,300
Manufacturing overhead
Indirect materials 6,000
Indirect labor 23,000
Other overhead costs 103,000
Work in process 42,350
Underapplied overhead 89,650
Sales revenue $1,000,000
Cost of goods sold 308,850
Gross profit $691,150
Analysis of Transactions:
Raw materials $172,000 Cash $172,000
Factory payroll $100,000 Cash $100,000
Factory overhead:
Indirect materials $6,000 Raw materials $6,000
Indirect labor $23,000 Factory payroll $23,000
Other overhead costs 103,000 Cash $103,000
Work in process $42,350 Factory overhead $42,350
Predetermined overhead rate based on direct labor cost 55%
Cash $1,000,000 Sales Revenue $1,000,000
The net income reported on the income statement is $97,309. However, adjusting entries have not been made at the end of the period for the
supplies expense of $2,135 and accrued salaries of $1,163. Net income, as corrected, is
a. $96,146
b. $97,309
c. $94,011
d. $95,174
DeShawn wants to fill out a financial application For post secondary education. What personal Information does DeShawn Most likely need to fill Out the application?
His income
His childhood address
His extracurricular activities
His grade point average in high school.
Answer:his income
Explanation:
His income should be need to fill out the application.
The following information should be considered:
Since the person wants to fill out the financial application. So here only his income needs to fill so that his earning capacity should be known. The address, extracurricular activities, and the grade point should not be relevant in the given situation.Therefore we can conclude that His income should be need to fill out the application.
Learn more: brainly.com/question/16115373
As a bank loan officer, you are considering a loan application by Peak Performance Sporting Goods. The company has provided you with the following information: Cash $ 25,000 Accounts Receivable 45,000 Inventory 140,000 Fixed Assets 190,000 Current Liabilities 70,000 Long-term Liabilities 90,000 Peak Performance's debt to owners' equity ratio (rounded to the nearest tenth of a percent) is:
Answer:
66.7%
Explanation:
Calculation to determine Peak Performance's debt to owners' equity ratio
First step is to calculate the Owner's Equity using this formula
Owner's Equity=Total Assets - Total Liabilities
Where,
Total Assets =$25,000 + $45,000 + $140,000 + $190,000
Total Assets = $400,000
Total Liabilities =$70,000 + $90,000
Total Liabilities=$160,000
Let plug in the formula
Owner's Equity=$400,000-$160,000
Owner's Equity=$240,000
Now let Calculate the debt to owners equity ratio using this formula
Debt to owners equity ratio= Debt [total Liabilities]/Owner's Equity
Let plug in the formula
Debt to owners equity ratio = $160,000/$240,000
Debt to owners equity ratio = 0.667*100
Debt to owners equity ratio= 66.7%
Therefore Peak Performance's debt to owners' equity ratio is 66.7%
Investing $2,000,000 in TOM's Channel Support Systems initiative will at a minimum increase demand for your products 3.0% in this and in all future rounds. (Refer to the TOM Initiative worksheet in the CompXM Decisions menu.) Looking at the Round 0 Inquirer for Andrews. last year?s sales were $163,189,230. Assuming similar sales next year. the 3.0% increase in demand will provide $4,895,677 of additional revenue. With the overall contribution margin of 34.1%. after direct costs this revenue will add $1,669,426 to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year's levels. How long will it take to achieve payback on the initial $2,000,000 TQM investment, rounded to the nearest month?
a) TOM investment will not have a significant financial impact
b) 5 months
c) 14 months
d) 10 months
Answer:
c) 14 months
Explanation:
Initial investment = $2,000,000
Revenue = $1,669,426
Profit = $2,000,000 - $1,669,426 = $330,574
Payback period = 1 + [Profit/Revenue]
Payback period = 1 + [$330,574/$1,669,426]
Payback period = 1 + 0.198017
Payback period = 1.198017 years
Payback period = 1.198017 * 12 months
Payback period = 14.376204 months
Payback period = 14 months approximately.
Bandar Industries manufactures sporting equipment. One of the company’s products is a football helmet that requires special plastic. During the quarter ending June 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. The plastic cost the company $171,000. According to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 35,000 helmets? 2. What is the standard materials cost allowed (SQ × SP) to make 35,000 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance?
Answer:
1. 21,000 kg of plastic
2. $168,000
3. $3000 Unfavorable
4. Materials Price variance $9000 Favaorable
Materials Quantity variance $12,000 Unvaforable
Explanation:
1. Calculation to determine the standard quantity of kilograms of plastic (SQ) that is allowed to make 35,000 helmets
Using this formula
Standard quantity of kilograms of plastic (SQ) = Standard quantity required per helmet x Total no. of helmets
Let plug in the formula
Standard quantity of kilograms of plastic (SQ) = 0.60 kg x 35,000
Standard quantity of kilograms of plastic (SQ) = 21,000 kg of plastic
Therefore The standard quantity of kilograms of plastic (SQ) that is allowed to make 35,000 helmets is 21,000 kg of plastic
2. Calculation to determine the standard materials cost allowed (SQ X SP) to make 35,000 helmets
Using this formula
Standard materials cost allowed (SQ X SP) = Standard quantity required per helmet x Standard cost per kg x Total no. of helmets
Let plug in the formula
Standard materials cost allowed (SQ X SP)= 0.60 x $8 x 35,000
Standard materials cost allowed (SQ X SP)= $168,000
Therefore The standard materials cost allowed (SQ X SP) to make 35,000 helmets is $168,000
3. Calculation to determine the materials spending variance
First step is to calculate the Materials Price variance
Using this formula
Materials Price variance = (AQ × AP) - (AQ × SP)
Let plug in the
Materials Price variance= $171,000 - (22,500 x $8)
Materials Price variance= $171,000 - 180,000
Materials Price variance= -$9,000
= $9000 Favaorable
Second step is to calculate the Materials Quantity variance using this formula
Materials Quantity variance = (AQ × SP) - (SQxSP)
Let plug in the formula
Materials Quantity variance=
Materials Quantity variance= 180,000 - $168,000
Materials Quantity variance=$12,000
Materials Quantity variance= $12,000 Unvaforable
Now let calculate the Materials spending variance using this formula
Materials spending variance = Price variance + Quantity variance
Let plug in the formula
Materials spending variance= -$9,000+ $12,000 Materials spending variance= $3,000
Materials spending variance= $3000 Unfavorable
Therefore Materials spending variance is $3000 Unfavorable
4. Calculation to determine the materials price variance and the materials quantity variance
Calculation for the Materials Price variance Using this formula
Materials Price variance = (AQ × AP) - (AQ × SP)
Let plug in the formula
Materials Price variance= $171,000 - (22,500 x $8)
Materials Price variance= $171,000 - 180,000
Materials Price variance= -$9,000
Materials Price variance= $9000 Favaorable
Therefore Materials Price variance is $9000 Favaorable
Calculation to determine Materials Quantity variance using this formula
Materials Quantity variance = (AQ × SP) - (SQxSP)
Let plug in the formula
Materials Quantity variance= = 180,000 - $168,000
Materials Quantity variance=$12,000
Materials Quantity variance= $12,000 Unvaforable
Therefore Materials Quantity variance is $12,000 Unvaforable
Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information: Activity Cost Driver Amount M XY Production setups Number of setups $ 73,000 12 18 Material handling Number of parts 49,000 68 23 Packaging costs Number of units 246,000 96,000 60,000 $ 368,000 What is the total overhead per unit allocated to Product XY using activity-based costing (ABC)
Answer:
Results are below.
Explanation:
First, we need to calculate the allocation rates:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Production setups= (73,000 / 30)= $2,433.33 per setup
Material handling= (49,000 / 91)= $538.46 per number of part
Packaging costs= (246,000 / 156,000)= $1.58 per unit
Now, we need to allocate costs to Product XY:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Production setups= 2,433.33*18= 43,799.94
Material handling= 538.46*23= 12,384.58
Packaging costs= 1.58*60,000= $94,800
Total allocated costs= $150,984.52
Finally, per unit basis:
Unitary cost= 150,984.52 /60,000= $0.27
For an open economy under a floating exchange rate regime, _________________________.
a.) Monetary policy is highly effective.
b.) Fiscal policy is highly effective.
c.) Monetary policy is ineffective.
d.) B and C.