Answer:
Period cost
Explanation:
The process was abnormal potentially for that period only - it is not a product issue but a process issue. So it would considered period cost
If the amount of loss in a manufacturing process is abnormal, it should be classified as a Period cost. The correct option is A. Irregular loss (a cost) is given credit to the process account, while irregular gain (a benefit) is debited.
What is the treatment for abnormal loss of inventory?The rate column is always calculated as a quotient using the relationship Value Quantity. To calculate Net Output, deduct the abnormal loss in quantity terms from the gross input. To calculate the Net Cost of Output, deduct the cost of abnormal loss units from the total cost.
An abnormal loss, on either hand, is defined as any loss that happens by chance as a result of unexpected events. Because they are considered an expense to the firm, the cost of these is not included in the cost of production.
Thus, the ideal selection is option A.
Learn more about an abnormal loss here:
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Edison has just paid an annual dividend of $3 per share. If the expected growth rate for Con Ed is 10%, and your required rate of return is 16%, how much are you willing to pay for this stock
Answer:
$55 per share
Explanation:
This can be calculated using the dividend discount model (DDM) formula as follows:
P = D1/(r - g) ............................ (1)
Where,
P = Current stock price or the amount you are willing to pay today
D1 = Next dividend = Current dividend * (1 + Growth rate) = $3 * (1 + 0.10) = $3.30
r = required return = 16%. or 0.16
g = growth rate = 10% = 0.10
Substituting the values into equation (1), we have:
P = $3.30 / (0.16 - 0.10) = $55 per share
Therefore, you are willing to pay $55 per share for this stock.
Exercise 5-10 Lower of cost or market LO P2 Martinez Company's ending inventory includes the following items. Product Units Cost per Unit Market per Unit Helmets 36 $ 58 $ 54 Bats 29 76 82 Shoes 50 95 99 Uniforms 54 40 40 Compute the lower of cost or market for ending inventory applied separately to each product.
Answer:
Helmets $ 1,944
Bats $ 2,204
Shoes $ 4,750
Uniforms $ 2,000
Explanation:
We will compare between the cost and the proceeds from sale of the units. As accounting wants to represent reality it cannot value the company goods higher than it can acceess to it in the market regardless of the purchase cost.
This may generate losses to represent the decrease in the overall value of the good.
Helmets 36 $ 58 $ 54
Helmets cost is higher than market so we recognize a loss an valued at $54
36 units x $54 = $1,944
Bats 29 $76 $82
Bats productions cost is lower so we keep it.
29 units x $76 = $2,204
Shoes 50 $95 $99
Shoes also has a lower production cost
50 units x $95 = $4,750
Uniforms 54 $40 $40
As they are the same we just leave with $40
50 units x $40 = $2000
The textile industry in a foreign country is controlled by four major companies. Last week, one of the companies decided to cut prices as a way to expand inventory. Since this industry is an oligopoly, what will be the likely response of the other three companies
Answer: e. They will make similar price cuts.
Explanation:
In an Oligopoly, there are few Firms in the market and as such if they colluded, they could control the market.
They rarely do however due to the legal and operational complexities of such a move so they exist in a sort of state where all the firms charge a set price and avoid changing this.
This is because if one firm increases price, they will lose market share.
If another firm reduces price, they might be able to capture more Market share so all the other firms reduce price as well to maintain their market share. This latter scenario would see them all maintain market share but have less profit due to charging less.
I digressed.
When a firm in an Oligopolistic Market reduces price, the other firms follow suit.
Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows:
Direct materials $54.00
Direct labor 35.00
Variable overhead 40.00
Fixed overhead 34.00
Total $163.00
Crayola Technologies Inc. has contacted Rubium with an offer to sell 6,000 of the subassemblies for $144.00 each. Rubium will eliminate $89,000 of fixed overhead if it accepts the proposal. Should Rubium make or buy the subassemblies? What is the difference between the two alternatives?
Answer:
If the company buys the units, income will decrease by $1,000.-
Explanation:
Giving the following information:
Direct materials $54.00
Direct labor 35.00
Variable overhead 40.00
Crayola Technologies Inc. has contacted Rubium with an offer to sell 6,000 of the subassemblies for $144.00 each. Rubium will eliminate $89,000 of fixed overhead if it accepts the proposal.
First, we need to determine the total cost of making the units:
Total cost= total variable costs + avoidable fixed costs
Total costs= (54 + 35 + 40)*6,000 + 89,000= $863,000
Now, the cost of buying:
Total cost= 6,000*144= $864,000
If the company buys the units, income will decrease by $1,000.-
On June 8, Williams Company issued an $80,000, 5%, 120-day note payable to Brown Industries. Assuming a 360-day year, what is the maturity value of the note? When required, round your answer to the nearest dollar. $84,000 $82,600 $88,200 $81,333
Answer:
$81,333
Explanation:
Williams company issued an principal of $80,000
The principal was issued at a 5% rate
The time period is 120-day payable to Brown industries.
The first step is to calculate the interest
Interest= principal × rate × time
= $80,000×0.05×(120/360)
= $80,000 × 0.05 × 0.33333
= $1,333.32
Therefore, the maturity value can be calculated as follows
Maturity value= Interest+principal
= 1,333.32+$80,000
= $81,333.2
= $81,333
Hence the maturity value on the note is $81,333
Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 700,000 units are expected to be produced taking 0.75 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?
Estimated: Department 1 Department 2
Manufacturing overhead costs $3,141,500 $1,571,000
Direct labor hours 167,000 DLH 267,000 DLH
Machine hours 267,000 MH 192,000 MH
a. $10.86 per unit
b. $8.73 per unit
c. $4.22 per unit
d. $11.77 per unit
e. $10 per unit
Answer:
$7.70 per unit
Explanation:
For computing the overhead rate per unit we first need to compute the estimated amount which is as follows
Total manufacturing cost
= Department 1 + department 2
= $31,41,500.00 + $15,71,000.00
= $47,12,500.00
Total machine hours
= Department 1 + department 2
= 267,000 MH + 192,000 MH
= 459000 MH
Now predetermined overhead rate is
= Total manufacturing cost ÷ Total machine hours
= $4,712,500 ÷ 459,000 MHs
= $10.27 per MH
Now overhead per unit is
= Pre-determined overhead rate per MH × Machine Hours required per unit
= $10.27 per MH × 0.75 MHs per unit
= $7.70 per unit
This is the answer but the same is not provided in the given options
Jim agreed to show Donna's car to a potential buyer. Donna was not able to be home since she had to attend a meeting. After showing the car, Jim left the keys in it and the car was stolen. Which statement is correct?
a. Since Jim is a gratuitous agent, he will only be liable for the loss of the car if his conduct constitutes gross negligence.
b. Since Jim is a gratuitous agent, he will be liable for the loss of the car if his conduct constitutes ordinary negligence.
Answer:
The option (a) is correct
Explanation:
The statement that is correct is the first option which says since Jim is a gratuitous agent, he will only be responsible for the loss of the car if his conduct amount to gross negligence.
Gross negligence: refers to awareness or carelessness in reckless ignorance for the protection or lives of others and properties which is so great that it is visible to be a conscious violation of other people's rights to safety.
In this case Jim will be held responsible for the Donna's car been stolen if he was conscious of what he did by leaving the keys in the car deliberately even when it to get stolen.
Rusty Industries has decided to save $50,000 a year for two years and then increase that amount to $80,000 for an additional three years. Which one of these formulas will correctly compute the future value of these savings as of Year 5 at a rate of 7 percent
Answer:
FVA5 = [$50,000 * (1.075 -1) / 0.07] + [$30,000 * (1.073 - 1) / 0.07]
Explanation:
Future value is value of asset or security at a later date in future with incorporating the effects of growth rate. Rusty Industries have decided to save $50,000 which will then grow to $80,000 for three years. The year 5 rate is 7% which will be used to compute the future value of savings.
OTR Trucking Company runs a fleet of long-haul trucks and has recently expanded into the Midwest, where it has decided to build a maintenance facility. This project will require an initial cash outlay of $ 21.5 million and will generate annual cash inflows of $4.4 million per year for Years 1 through 3. In Year 4, the project will provide a net negative cash flow of $5.4 million due to anticipated expansion of and repairs to the facility. During Years 5 through 10, the project will provide cash inflows of $ 2.3 million per year.a. Calculate the project's NPV and IRR where the discount rate is 11 percent. Is the project a worthwhile investment based on these two measures? Why or why not? b. Calculate the project's MIRR. Is the project a worthwhile investment based on this measure? Why or why not? a. The project's NPV where the discount rate is 11% is $____ million. (Round to two decimal places.)
Answer:
year cash flows
0 -$21,500,000
1 $4,400,000
2 $4,400,000
3 $4,400,000
4 -$5,400,000
5 $2,300,000
6 $2,300,000
7 $2,300,000
8 $2,300,000
9 $2,300,000
10 $2,300,000
I used an excel spreadsheet to calculate the project's NPV, IRR and MIRR.
a. Calculate the project's NPV and IRR where the discount rate is 11 percent. Is the project a worthwhile investment based on these two measures? Why or why not?
NPV = -$7,895,194IRR = 0.09%Since the NPV is negative, the company should not invest in this project.b. Calculate the project's MIRR. Is the project a worthwhile investment based on this measure? Why or why not?
Since we are not given any financing rate nor WACC, we must assume that the company's discount rate is equal to its financing rate and WACC:
MIRR = 6.88%Since the MIRR is too low (lower than the company's WACC), the company should not invest in this project.When you calculate MIRR, you must assume that the company will invest the cash inflows at their normal WACC while the outflows are financed at a different rate.
There are many distinct characteristics that classify a market as Perfectly Competitive including: Very large number of firms Homogenous products Entry and exit into the market free of barriers Perfect Information Individual firms are price takers Long run economic profits will be zero Instructions Given these characteristics of a perfectly competitive market, select one of the characteristics listed. In your post: Fully explain what that characteristic means and what its importance is to classifying a market as perfectly competitive. If you have noticed this characteristic in a certain market, explain where you have seen it before or provide your own example. Would you see the characteristic you are discussing in any of the other three market structures - monopolistic competition, oligopoly or monopoly
Answer:
Characteristics of a Perfectly Competitive Market
One of the characteristics is the presence of many firms:
In a perfectly competitive market or industry, there is a large number of small firms producing homogeneous, identical, and unbranded products. As they are small in comparison to the overall market size, no single firm is able to exert market control over the price or quantity at which the firms sell to the buyers. In such a market, all the characteristics of a perfectly competitive market are present. Buyers and sellers have perfect knowledge of the product, prices, quantity, information, and technology. Under this scenario, if one firm doubles its production or stops production entirely in order to influence the market indexes, the market remains unaffected. With this, the price remains constant. There is no scarcity or surplus. The demand curve is always in equilibrium. There is no elasticity of price, since there is no change in the price of the product. Unfortunately, there is no market that is perfectly competitive. It is only an ideal situation. A close resemblance to this market is in the market for salt, because of the relatively cheap prices of salt. But, many firms have branded their products so differently that consumers make choices, but firms have not been able to influence the market. Unfortunately, this characteristic of perfectly competitive market is not present in the other three markets: monopolistic competition, oligopoly, or monopoly given their own basic characteristics.
Explanation:
A perfectly competitive market or industry has large number of small firms, with no exit or entry barriers. There is perfect knowledge of the market so that buyers and sellers have equal access to information. The goods in such a market is so identical that firms do not brand their goods to look different from others. As earlier mentioned, this type of market exists in the ideal world. Other market types are monopolistic competition, oligopoly, and monopoly. There are practical examples of the existence of such markets in the world.
The campground will make the most economic profit whenit has property rights to a clean lake . True or False: The fish cannery will use the recycling method, regardless of who has the property rights. True False
Answer:
hi your question is incomplete here is the complete question
Consider a lake found in the town of Center Barnstead,
The town has a campground whose visitors use the lake for recreation. The town also has a fish cannery that dumps industrial waste into the lake. This pollutes the lake and makes it a less desirable vacation destination. That is, the fish cannery's waste decreases the campground's economic profit.
Suppose that the fish cannery could use a different production method that involves recycling water. This would reduce the pollution in the lake to levels safe for recreation, and the campground would no longer be affected. If the fish cannery uses the recycling method, then the fish cannery's economic profit is $1,500 per week, and the campground's economic profit is $1,800 per week. If the fish cannery does not use the recycling method, then the fish cannery's economic profit is $2,000 per week, and the campground's economic profit is $1,000 per week. These figures are summarized in the following table.
Action
Profit
Fish Cannery
Campground
Total
(Dollars)
(Dollars)
(Dollars)
No Recycling 2,000 1,000
Recycling 1,500 1,800
Total economic profit is highest when the recycling production method is .
When the fish cannery uses the recycling method, the campground earns $1,800−$1,000=$800$1,800−$1,000=$800 more per week than it does with no recycling. Therefore, the campground should be willing to pay up to $800 per week for the fish cannery to recycle water. However, the recycling method decreases the fish cannery's economic profit by $2,000−$1,500=$500$2,000−$1,500=$500 per week. Therefore, the fish cannery should be willing to use the recycling method if it is compensated with at least $500 per week.
Suppose the campground has the property rights to the lake. That is, the campground has the right to a clean (unpolluted) lake. In this case, assuming the two firms can bargain at no cost, the fish cannery will the recycling method and will pay the campground per week.
Now, suppose the fish cannery has the property rights to the lake, including the right to pollute it. In this case, assuming the two firms can bargain at no cost, the fish cannery will the recycling method, and the campground will pay the fish cannery per week.
ANSWER
TrueTrueExplanation:
The campground will make the most economic profit when it has property rights to a clean lake : True. this is true because the Fish cannery will be using the recycling method and from the table it is seen that when the recycling method is used The Campground make the most economic profit
The fish cannery will use the recycling method regardless of who has the property right : TRUE . this is because the Fish cannery will use the recycling method anyways because the recycling method would not pollute the water hence not interfering with the campground activities in case they own the property rights.
Motorcycle Manufacturers, Inc., projected sales of 51,500 machines for the year. The estimated January 1 inventory is 6,000 units, and the desired December 31 inventory is 7,410 units. The budgeted production for the year is:________
Answer:
Budgeted Production = 52910 units
Explanation:
The budgeted production should be enough to meet the yearly sales requirement plus provide enough inventory at the year end to cover for the required level of desired inventory. The opening inventory at the start of the year should be deducted to calculate the budgeted production.
Budgeted production = Sales + Closing Inventory - Opening Inventory
Budgeted Production = 51500 + 7410 - 6000
Budgeted Production = 52910 units
Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance $ 34,000 Legal fees for drawing the contract 9,000 Pro-rated property taxes for the period after acquisition 54,000 State transfer fees 5,800 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.5 and $1.5 million, respectively. Shortly after acquisition, Samtech spent $100,000 to construct a parking lot and $58,000 for landscaping. Required: 1. Determine the initial valuation of each asset Samtech acquired in these transactions. 2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $430,000 and the salvaged materials were sold for $6,500. In addition, Samtech spent $97,000 clearing and grading the land in preparation for the construction of a new building.
Answer:
1)
total price $4,000,000
if purchased separately, land was worth $3,500,000 and building $1,500,000.
cost of land:
70% x $4,000,000 purchase cost = $2,800,000
70% x $34,000 title insurance = $23,800
70% x $9,000 legal fees = $6,300
70% x $5,800 state transfer fees = $4,060
total cost of land = $2,834,160
cost of building:
30% x $4,000,000 purchase cost = $1,200,000
30% x $34,000 title insurance = $10,200
30% x $9,000 legal fees = $2,700
30% x $5,800 state transfer fees = $1,740
total cost of land = $1,214,640
Property taxes for the period after acquisition are expenses and cannot be capitalized. Landscaping and parking lots are reported separately because they have different useful lives than the building.
2)
cost of land:
$4,000,000 purchase cost
$34,000 title insurance
$9,000 legal fees
$5,800 state transfer fees
$430,000 demolition costs
- $6,500 sale of salvaged value
$97,000 land grading
total cost of land = $4,569,300
cost of building = $0
Property taxes for the period after acquisition are expenses and cannot be capitalized. Landscaping and parking lots are reported separately because they have different useful lives than the building.
Journalizing the entry to record the indirect labor costs incurred for general factory use would include a debit to a.Wages Expense b.Factory Overhead c.Wages Payable d.Cost of Goods Sold
Answer: b.Factory Overhead
Explanation:
Indirect Labor Costs are those costs associated with people who helped the production process but were not directly involved in the production process.
For example, machinery repair men, the guards, the Accountants for the Factory and the Quality control people amongst others.
These costs are treated as an expense and Debited to the Factory Overhead Account in a general factor setting unlike direct Labor that will be Debited to to Work in Progress.
C&A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier who charges C&A $30 per order and $50 per bottle. C&A's annual holding cost percentage is 40%. Assume C&A operates 50 weeks in a year. What is C&A's total ordering and holding cost per year if C&A orders 500 bottles at a time?
Answer: $6,800
Explanation:
The following can be deduced based on the information above:
The annual requirement will be the weekly demand multiplied by the number of operational weeks. This will be:
= 600 x 50
= 30,000 Bottles
Then, the number of orders will be the annual demand divided by the order size. This will be:
= 30,000 ÷ 500
= 60
Then, we calculate the ordering cost which will be the number of orders multiplied by the ordering cost per order. This will be:
= 60 x $30
= $1,800
The average inventory will be the lot size divided by 2. This will be:
= 500 / 2
= 250 Bottles
Then, the holding cost per unit will be the price multiplied by the percentage of the holding cost. This will be:
= $50 x 40%
= $50 × 0.4
= $20 per unit
Holding cost of thenverage inventory will be the average inventory multiplied by the holding cost per unit. This will be:
= 250 x $20
= $5,000
Therefore, C&A's total ordering and holding cost per year if C&A orders 500 bottles at a time will be:
= $1,800 + $5,000
= $6,800
To calculate return on assets (ROA), the numerator will include which of the following? a. net income plus tax expense b. net income plus interest expense c. net income minus preferred dividends d. net income
Answer:
d. net income
Explanation:
The formula to compute the return on assets is as follows
Return on assets = Net income ÷ Total assets
Or
Return on assets = Net income ÷ Average of total assets
As the case maybe
By dividing the net income from the total assets or average of total assets we can get the return on assets and the same is to be considered
hence, the correct option is d. net income
A client has been following a certain security and tells his broker that he would like to buy it if the price reaches a certain level. The client leaves town for 2 weeks, and during that time, the security rises to the level mentioned as the buying target. The representative should:
Answer:
the representative cannot take any action without the customer's specific authorization.
Explanation:
In a normal circumstance since the security has hit the level that was mentioned by the client then the representative would normally purchase the security at that level. Unfortunately, since the situation makes no mention whatsoever of the customer giving the representative a written power of attorney over the account; then the representative cannot take any action without the customer's specific authorization. Otherwise, this would be considered illegal.
Gibson Energy Ltd.’s general ledger account for Cash in Bank showed the following at December 31, 2019:
Cash in Bank Acct. No. 101
Balance DR (CR)
Date Description Folio Debit Credit Balance
Nov. 30 Balance (overdraft) 221,000
Dec. 1-31 Cash receipts CRJ10 813,000 1,034,000
Dec. 1-31 Cash Payments CDJ21 972,000 62,000
December deposits made and checks issued were as follows:
Deposits Checks
Date Amount No. Amount
Dec. 5 30,000 232 110,000
7 210,000 233 83,000
9 85,000 234 25,000
12 32,000 235 59,000
15 26,000 236 590,000
21 420,000 237 17,000
24 16,000 238 28,000
26 51,000 239 77,000
28 21,000
31 15,000
$813,000 $972,000
The December bank statement showed:
First Chartered Bank
Gibson Energy Ltd. Bank Statement
Month Ended December 31, 2019
Date Type Out In Balance
Dec. 3 Deposit 70,000 215,000
4 NR XYZ Corp. 80,000 295,000
5 Ck. 232 110,000 185,000
6 Ck. 231 70,000 115,000
6 Deposit 30,000 145,000
7 Deposit 210,000 355,000
10 Ck. 234 25,000 330,000
12 Ck. 236 590,000 (260,000)
13 Deposit 32,000 (228,000)
14 Ck. 52094* 62,000 (290,000)
14 NSF ABC. Inc. 7,000 (297,000)
15 Deposit 26,000 (271,000)
16 Ck. 238 28,000 (299,000)
17 Deposit 420,000 121,000
18 Ck. 235 59,000 62,000
20 Ck. 237 17,000 45,000
24 Deposit 16,000 61,000
26 Deposit 51,000 112,000
28 Deposit 21,000 133,000
31 OD int 1,320 131,680
31 SC 60 131,620
*drawn in error on Gibson’s bank account
NR = note receivable collected from XYZ Corp. including interest of:
$1,951
NSF = not sufficient funds
SC = service charge
OD int = overdraft interest expense
Outstanding items at November 30, 2019 were as follows:
Nov. 30 deposit $70,000
Ck. 231 $70,000
Required:
1. Complete the bank reconciliation at December 31, 2019.
2. Prepare the adjusting journal entries required to make the Cash in Bank account in the general ledger agree with the adjusted cash balance on the December 31 bank reconciliation. Include descriptions.
Answer:
1. Adjusted cash balance = Adjusted bank statement balance = $133,620.
2. See the adjusting journal entries and explanation in part 2. below.
Explanation:
Note: The data in the question are merged and they are first sorted in the attached excel file before the questions are answered as follows:
1. Complete the bank reconciliation at December 31, 2019.
The bank reconciliation is presented in two ways as follows:
a) Starting with cash book balance
Gibson Energy Ltd.
Bank Reconciliation
at 31 December 2019
Particulars Amount ($)
Cash book bal. at 31 Dec. yet to be reconciled 62,000
Add:
Collected note receivable from XYZ Corp 80,000
Less:
Dishonored NSF check (7,000)
Overdraft interest expense (1,320)
Bank service charge (60)
Adjusted cash balance at Dec 31 133,620
b) Starting with bank statement balance
Gibson Energy Ltd.
Bank Reconciliation
at 31 December 2019
Particulars Amount ($)
Bank statement bal. at Dec 31 yet to reconciled 131,620
Add:
Cash deposited on December 9th yet be credited 85,000
Cash deposited on December 31 yet be credited 15,000
Check #52094 wrongly drawn 62,000
Less:
Outstanding checks 233 (83,000)
Outstanding checks 239 (77,000)
Adjusted bank statement balance at Dec. 31 133,620
2. Prepare the adjusting journal entries required to make the Cash in Bank account in the general ledger agree with the adjusted cash balance on the December 31 bank reconciliation. Include descriptions.
Date Accounts title & explanation DR ($) CR ($)
31 Dec 19 Cash 80,000
Note Receivable 78,049
Interest on note receivable 1,951
(To record note receivable & int. collected from XYZ)
31 Dec 19 Overdraft interest expense 1,320
Service charge 60
Cash 1,380
(To record interest expense and bank charges)
31 Dec 19 Account Receivable 7,000
Cash 7,000
(To record NSF check dishonored)
Under which conditions would a plant manager elect to use a fixed-order quantity model as opposed to a fixed-time period model? What are the disadvantages of using a fixed-time period ordering system?
Answer: The answers are provided below
Explanation:
The fixed order quantity system is an arrangement whereby the inventory level is typically continuously monitored and also the replenishment stock is ordered based on the previously-fixed quantities while for a fixed time period model, the inventory levels are checked on regular basis for the items e.g every week.
A plant manager may elect to use a fixed-order quantity model as opposed to a fixed-time period model when the holding cost is much higher. Typically, fixed order quantity model is typically used for the costly items.
The disadvantages of using a fixed-time period ordering system are:
i. It doesn't consider market structure changes
ii. There should be a high level of inventory in order to avoid stock out.
iii. It leads to rigidity in the system as it makes the decision on time period complex when there's need for urgency.
Depletion Entries Alaska Mining Co. acquired mineral rights for $67,500,000. The mineral deposit is estimated at 30,000,000 tons. During the current year, 4,000,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimals places. $ b. Journalize the adjusting entry on December 31 to recognize the depletion expense. Dec. 31
Answer:
a. $ 9,000,000
b.
Depletion Expense $ 9,000,000 (debit)
Accumulated Depletion $ 9,000,000 (credit)
Explanation:
The depletion expense is calculated using the formula :
Depletion expense = Cost of Asset / Estimated total contents in units × Number of units taken in the period
= $67,500,000 / 30,000,000 tons × 4,000,000 tons
= $ 9,000,000
The entry to recognize the depletion expense will be :
Depletion Expense $ 9,000,000 (debit)
Accumulated Depletion $ 9,000,000 (credit)
On October 1, 2022, Sheridan Company places a new asset into service. The cost of the asset is $81000 with an estimated 5-year life and $21000 salvage value at the end of its useful life. What is the depreciation expense for 2022 if Sheridan Company uses the straight-line method of depreciation
Answer:
the depreciation expense for 2022 is $3,000
Explanation:
Straight line method of depreciation charges a fixed amount of depreciation over the period of use of an asset.
Depreciation Expense = (Cost - Residual Value) / Number of useful life
= ($81000 - $21000) / 5
= $12,000
The Annual depreciation charge for this machine will be $12,000 for each of the years that it is used in the business.
However since it was paced in use during the year that is 1 October, we have to apportion the Annual charge withe number of months that its has been in use during 2022.
It has been used for 3 months thus depreciation charge is :
Depreciation = 3/ 12 × $12,000
= $3,000
An unfavorable materials quantity variance indicates that: Multiple Choice actual usage of material exceeds the standard material allowed for output. actual material price is less than the standard price. actual material price exceeds standard price. actual usage of materials is less than the standard material allowed for output.
Answer:
actual usage of material exceeds the standard material allowed for output.
Explanation:
Material quantity variance is defined as a difference between the actual amount of materials used for production and what was expected to be used.
It is a measure of production efficiency of a business. When more quantity above the standard amount is used it indicates the system is inefficient and vice versa.
Unfavourable material variance can be caused by low quality of material, damage while transporting, damage during production, poor training of employees, and incorrect material standard.
1. Because of sanctions over their involvement in Ukraine in 2014, the Bank of Russia has raised its benchmark interest rate from 8% to 9.5%. What affect does this have on the exchange rate for the Russian Rubble versus the Euro
Answer:
This would make the rubble more attractive than the euro when investing.
Explanation: The effects of this increase in interest rate, is it would make it more expensive when planning on borrowing money in Russia. Which would make the rubble more attractive than the euro from an investors or investment part, as more money can be made when euro is converted back to rubble. This would help drive up the cost of rubble.
Ronald is an assistant librarian at the local public library but hopes to be able to become a head librarian in the near future. For him to accomplish this, he must move to another location. To help him find openings in other locations, he has joined the American Library Association and will be attending their national conference next month. He is excited about meeting and talking with fellow librarians about their jobs across the United States. This is an illustration of
Answer:
Ronald, the Librarian
What Ronald is doing "is an illustration of" Networking in practise.
Explanation:
According to investopedia.com, "Networking is the exchange of information and ideas among people with a common profession or special interest, usually in an informal social setting. Networking often begins with a single point of common ground."
The advantages of networking include, strengthening connections through information sharing, acquisition of fresh ideas, knowledge, and perspectives, avenue for career advancement and access to job opportunities, and the reception of career advice and support. It also builds one's confidence through the process of interaction with more knowledgeable professionals. Those who seek, find. And "iron sharpens iron," as people rob minds.
Networking also helps to develop and improve skill set, stay on top of the latest trends in your industry, keep a pulse on the job market, meet prospective mentors, partners, and clients, and gain access to the necessary resources that will foster your career development.
Tom owns a Pizza Restaurant. Expenses for the restaurant include raw material for pizza at $9.22 per slice, $106.00 as monthly rental and $55.00 monthly as insurance. A restaurant sells pizza at a rate of $14.22/slice. How many slices should the restaurant sell in a month to break even?
Answer:
Break-even point in units= 32 slices
Explanation:
Giving the following information:
Selling price= $14.22
Unitary variable cost= $9.22
Fixed costs= 106 + 55= $161
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 161/ (14.22 - 9.22)
Break-even point in units= 32 slices
During her lifetime, Betty accumulated a large quantity of registered gold coins totaling over $500,000 in value. Betty began to see the sun setting in the waning years of her life and began making plans to dispose of her assets among her beloved children. Part of her plans was to give her collection of coins to her favorite son, Carlos, who at the time was performing mission work deep in the jungles of South America. Betty executed and filed a registration of transfer of the coin collection to Carlos. She then attempted to contact Carlos on his satellite phone and called his last known location to advise him of the transfer, but she was unable to contact him. The best she could do was to leave Carlos multiple messages. One month later, Betty passed away without ever hearing from Carlos. Betty's will was read, and it was discovered that the language in the will bequeathed all of her coins to her daughter, Carey. Carey took possession of the registered gold coins. If you were Carlos, how would you convince Carey to give you the coins after returning from your trip
Answer:
Show the messages sent by Betty to me before her death
Explanation:
In law, believable evidence could take several forms which includes providing a written "proof of intent". Carlos can argue that the messages received from Betty explicitly shows are wishes–that he receives a collection of her coins, thus the transfer of ownership was implicitly binding.
Carey's reading of the multiple messages evidently provides convincing evidence that she has not fulfilled the will of her death mother, thus Carlos can use her emotional attachment of fulfilling mother's wishes by pressurising her to give him the coins.
Carlos can convince Carey to give him the coins after returning from trip by
showing her the multiple messages sent from Betty and confirming with
the appropriate authority.
What is Registration of transfer?Thus is a document which confirms that an asset or property has been
transferred to a new owner.
In this scenario, she was unable to reach him but left messages which is an
evidence about the transfer of the coins. The appropriate authority should
also be contacted to confirm if the transfer of the coins was appropriately
done.
Read more about Transfer here https://brainly.com/question/523607
The company's net income for the year was $52 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $9. The net cash provided by (used in) investing activities for the year was:
Answer:
The net cash provided by (used in) investing activities for the year was: $ 0
Explanation:
Investing Activities consists of activities that result from Purchase or Sale of Capital expenditure items.
Types of Capital expenditure items are Machinery, Equipment, Plant or any Non-Current assets that is used by the company.
The question you provided does not have any purchase or sale of the Property, Plant and Equipment items. So no cash movement from Investing Activities during the period.
For each of the following scenarios, classify the type of spending (C,I,G,Xn), describe its impact on gross domestic product (increase, decrease, not impacted), and explain.
A. A new airplane purchased by United Parcel Service.
B. The tuition you pay during your first year of college.
C. The social security check your grandmother receives.
D. A new purchase of 50,000 shares of Time/Warner stock.
E. A new pair of tennis shoes made in China and purchased by an American shoe store.
Answer:
A. A new airplane purchased by United Parcel Service.
Investment (in fixed assets), GDP growsB. The tuition you pay during your first year of college.
Consumption (of services), GDP growsC. The social security check your grandmother receives.
Not included in GDP, social security checks are considered transfer payments.D. A new purchase of 50,000 shares of Time/Warner stock.
Not included in GDP, only IPOs are included in GDPE. A new pair of tennis shoes made in China and purchased by an American shoe store.
Import, GDP decreases since net exports decreaseExplanation:
The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. The reporting statement of a company is shown. A table with four columns is shown. The first column has no heading; the second columns heading is 20Y3; the third column heading is 20Y2; the third column heading is 20Y1. The headings, 20Y3, 20Y2 and 20Y1 are set in bold. The transactions listed are as follows: Accounts receivable, end of year is $ 725,000; $ 650,000 and $ 600,000; account are 5,637,500 and 4,687,500. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round to the nearest dollar and one decimal place. Answer Check Figure: Accounts receivable turnover, 20Y3, 8.2 Pencil What conclusions can be drawn from these data concerning accounts receivable and credit policies
Answer: For 20Y3 --8.2 times, 44.5 days
For 20Y2----7.5 times 48.7 days
Explanation:
20Y3 20Y2 20Y1
Accounts receivable, end of years $ 725,000; $ 650,000 $ 600,000'
Sales on account 5,637,500 4,687,500
For 20Y3 --
Accounts receivable turnover = Net credit Sales / Average Account receivable
Net Credit sales= $5,637,500
Average Account receivable
=(End of years of yr2 and 3)/ 2=($ 725,000 +$ 650,000) /2 = $1.375,000/2= $687, 500
Accounts receivable turnover = $5,637,500/ $687,500=8.2 times
Number of days sales in receivables = 365 days / Accounts receivable turnover
= 365/8.2 = 44.5 days
For 20Y2
Accounts receivable turnover = Net credit Sales / Average Account receivable
Net Credit sales= $4,687,500
Average Account receivable
=(End of years of yr2 and 1)/2 = ($ 650,000 + $ 600,000') /2 = $/2= $625,000
Accounts receivable turnover = $4,687,500/ $625,000=7.5 times
Number of days sales in receivables = 365 days / Accounts receivable turnover
= 365/7.5= 48.7 days
b. Accounts receivable in cash owed by clients to a company from the invoices the company sent to them
Also, Credit policy is a requirement that establishes the payment terms of a company to its clients so as to eliminate the risk of loss. The credit policy differs and from company and comprises of the payment terms( the duration of time) or credit period, collections, discounts and operational standard
---->The relationship between credit policy and account receivables is that is that when a company establishes that payment terms are increased and on credit, the accounts receivables increases reducing a company''s finance. A company that establishes a decrease in the credit period duration will have a reduced account receivable providing fast financial returns to the company.
From the results obtained from 20Y3 and 20Y2, We will see that
Particulars 20Y3 20Y2 Remark
Aturnover ratio 8.2times 7.5 times Increase by 0.7 times
Number of days sales
in receiviable 44.5 days 48.7days Decrease by 4.2 days
In year 20Y3, THE higher ratio of accounts receivable turnover shows that cash for sales will more likely to be collected than a 20Y2 with a lower ratio of accounts receivable turnover.
Coronado Industries acquired a tract of land containing an extractable natural resource. Coronado is required by its purchase contract to restore the land to a condition suitable for recreational use after it has extracted the natural resource. Geological surveys estimate that the recoverable reserves will be 2560000 tons, and that the land will have a value of $1080000 after restoration. Relevant cost information follows: Land $7420000 Estimated restoration costs 1480000 If Coronado maintains no inventories of extracted material, what should be the charge to depletion expense per ton of extracted material
Answer:
Depletion expenses per cost is $3.06
Explanation:
Geological surveys estimate that the recoverable reserves will be $2,560,000 tons, and that the land will have a value of $1,080,000 after restoration
The cost of the Land is $7,420,000 and the Estimated restoration costs is $1,480,000.
Therefore we will calculate the total cost.
Total Asset cost=$7,420,000 +$1,480,000
Total Asset cost=$8,900,000
The depletion expenses of Coronado Industries is:
Depletion expenses per cost= (Asset cost - Residual value) / Number of unit of depletion
Depletion expenses per cost = ($8,900,000 - $1,080,000) / $2,560,000
Depletion expenses per cost = 7820000/2560000
Depletion expenses per cost = 3.0546875
Depletion expenses per cost = $3.06