Answer:
32,500 units must be sold to realize an operating income of $250,000.
Explanation:
a) Calculations:
Using the break-even plus target profit analysis, we can calculate the target quantity of sales that will generate a target profit.
To break-even, the company needs to sell the following quantity,
Break-even point = fixed costs/contribution margin per unit = $400,000/$20 = 20,000 units.
To achieve a target profit, the company needs to sell the following quantity,
Break-even with target profit = (Fixed cost + target profit)/contribution margin per unit = ($400,000 + 250,000) / $20 = $650,000/$20 = 32,500 units.
b) Break-even analysis is a managerial accounting technique for determining the units should a company can sell or produce in order to even revenue and costs. From the analysis, a company can also determine the units to sell in order to realize a target profit. This helps a lot in decision making.
You own 500 shares of ABC stock. The stock has been declining in price and is now selling for $30 a share. You decide to sell all your shares and place a limit sell order at a price of $30 a share. When you order reaches the trading desk, the market price has declined to $29 a share. The next day the price falls to $18 a share. What is the status of your order
Answer:
The order has not yet been executed which means you still own 500 share
Explanation:
The status of your order is that the order has not yet been executed which means you still own 500 share because despite that you own the 500 shares of ABC stock in which the stock has been declining in price but now sells for $30 per share in which you wanted to sell all the shares thereby placing a limit sell order at a price of $30 per share but the shares continue to decline from $30 per share to $29 per share to $18 per share, their wont be any cause for alarm because the order has not yet been executed which means that the 500 shares is still in your custody.
Swiss Clothing Store had a balance in the Accounts Receivable account of $820,000 at the beginning of the year and a balance of $780,000 at the end of the year. Net credit sales during the year amounted to $7,200,000. The accounts receivable turnover ratio was
Answer:
9
Explanation:
accounts receivable turnover ratio = net credit sales / average accounts receivables
net credit sales = $7,200,000average accounts receivable = (beginning balance + ending balance) / 2 = ($820,000 + $780,000) / 2 = $1,600,000 / 2 = $800,000accounts receivable turnover ratio = $7,200,000 / $800,000 = 9
The accounts receivable turnover ratio measures how effectively can a company collect its accounts receivables during a certain period.
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
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
Nike decides to invest $60,000,000 into a shoe factory in Vietnam from its money market account. The money market account was earning 1% in interest per year or $600,000. Nike could have also earned $200,000 from investing the $60,000,000 in a handbag factory. What is its opportunity cost for Nike based off of the information in presented this situation
Answer:
$200,000
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
The opportunity cost of Nike is what they would have earned if they invested in the bag industry instead. so it is, $200,000.
I hope my answer helps you
On January 1, Concord Corporation had 113000 shares of $10 par value common stock outstanding. On March 17 the company declared a 5% stock dividend to stockholders of record on March 20. Market value of the stock was $15 on March 17. The entry to record the transaction of March 17 would include a
Answer and Explanation:
The Journal entry is shown below:-
March 17
Stock Dividend Dr, $84,750 (113,000 × 5% × $15)
To Common Stock Dividend Distributable $56,500 (113000 × 5% × $10)
To Paid in capital in excess of Par - Common Stock $28,250
(Being stock dividend is recorded)
Here we debited the stock dividend and we credited the Common Stock Dividend Distributable and Paid in capital in excess of Par - Common Stock
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.
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 workerB. 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 dollarC. 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)
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).
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.
A sale by IBM of new stock to the public would be a(n) Group of answer choices secondary-market transaction. short sale. private placement. initial public offering. seasoned equity offering.
Answer:
seasoned equity offering
Explanation:
A sale by IBM of new stock to the public would be a seasoned equity offering. This term refers to when additional shares or bonds are offered for sale by an existing publicly-traded company, such as IBM in this scenario. Usually, these offerings may include shares sold by existing shareholders, new shares, or even maybe both. But in this particular case are new stocks.
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.
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.
Millitech is a sports equipment manufacturer. It wants to form a merger with an athletic wear company. This would be a
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.
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.
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
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
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.
Filling your individualf ederal tax returns would be best described what type of value chain?
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.
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
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.
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:
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
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?
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
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?
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
The primary thing that this more sophisticated measure of ROA better captures that the simpler version, defined as ROA* = Net Income / Total Assets, is:
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.
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
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?
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.
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?
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
Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours at $16 per direct labor hour. The variable overhead rate is $1.10 per direct labor hour and the fixed overhead rate is $1.50 per direct labor hour. Andrews expects to have 620 chairs in ending inventory. There is no beginning inventory of office chairs.
Required:
1. Calculate the unit product cost. (Note: Round to the nearest cent.)$
2. Calculate the cost of budgeted ending inventory. (Note: Round to the nearest dollar.)$
Answer:
Instructions are below.
Explanation:
Giving the following information:
Direct material= $14
Direct labor= 1.9 direct labor hours at $16 per direct labor hour.
Variable overhead= $1.10 per direct labor hour
Fixed overhead rate= $1.50 per direct labor hour.
Ending inventory (units)= 620
We can calculate the unitary product cost using the absorption or variable costing method. The first one includes the unitary fixed overhead to the unitary product cost.
Absorption costing:
Unitary cost= 14 + 1.9*16 + (1.1+1.5)*1.9= $49.34
Ending inventory= 49.34*620= $30,590.8
Variable costing:
Unitary cost= 14 + 1.9*16 + 1.1*1.9= $46.49
Ending inventory= 46.49*620= $28,823.8
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?
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
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.
Answer:
O'Brian's Department Storesa. 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.
On December 31, there were 41 units remaining in ending inventory. These 41 units consisted of 5 from January, 7 from February, 9 from May, 7 from September, and 13 from November. Using the specific identification method, what is the cost of the ending inventory
Answer:
$6,023
Explanation:
Calculation for the Ending inventory
Using this formula
Ending inventory =January units ×costs +February units×costs +May units × cost+September units ×costs + November units × costs
Let plug in the formula
Ending inventory =5×123+7×133+9×143+7×153+13×163
Ending inventory =$615+$931+$1,287+$1,071+$2,119
Ending inventory =$6,023
Therefore the Ending inventory is $6,023
On 12/31/19, Hite Industries reported retained earnings of $537,500 on its balance sheet, and it reported that it had $135,000 of net income during the year. On its previous balance sheet, at 12/31/18, the company had reported $445,000 of retained earnings. No shares were repurchased during 2019. How much in dividends did the firm pay during 2019
Answer:
Dividends paid= $227,500
Explanation:
The dividend paid during the year 2019 would be the determined by sum of the opening balance of retained earnings and net income and less the closing balance of retained earnings.
Dividends paid = Retained earnings at the beginning + net income - retained earnings at the end.
Note that the payment of dividends would reduce the amount of retained earnings balance
Dividends paid = 537,500 + 135,000 - 445,000= 227,500
Dividends paid= $227,500
Rank the steps of the (sandwich) ELISA procedure from first step to last step. Do not overlap any steps.
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
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?
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%
_____ 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.
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
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
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.