Answer:
Enter the following formula in a cell K2:
=IF(OR([at[College Graduate]]="Yes",[at[Service Years]]>5),"Yes","No")
Please replace "at" in the formula with its symbol.
Explanation:
The formula has an IF function which checks a condition.
There are two conditions here to be checked:
A) if the staff member's Service Years is greater than 5.
B) if the staff member's college graduate status is "Yes".
According to the given criteria this IF function should return Yes if a staff member meets one OR both of the above mentioned criteria. Otherwise the function should return No.
This means if any one of the criteria evaluates to true then the text Yes is returned. For example if staff member's Service Years is greater than 5, then function returns Yes. For instance if staff member is a college graduate which means that his college graduate status is "Yes", then the function returns Yes.
The function still returns if either of the two criteria is true. For instance if staff member's Service Years is less than 5 but staff member's college graduate status is "Yes" then the function returns Yes.
However if neither the staff member's Service Years is greater than 5 nor the staff member's college graduate status is "Yes" then the function returns No.
So we use OR function here which with IF function so that the IF function returns true if either of the two criteria is met, otherwise returns false. This takes the form:
IF(OR(Argument 1 is True, Argument 2 is True), YES if True, NO if False)
Also there is at symbol used in the formula. Square brackets are used for structured references. They make clear and easier to reference. Structure reference is used if we want to use a table name in a formula such that we used in this IF OR formula, instead of a normal cell reference. "at" is used to refer only the mentioned/current rows or cells in the table. If you do not use this at then all the columns will be selected. For example [at[Service Years]]>5 is a reference to the cell in the Service Years at the current row. But [[Service Year]] is a reference to the entire column. So only those cells are checked where the Service Year is greater than 5.
Please replace the at word in the formula with its symbol.
Suppose $1 comma 500 is deposited in a bank account today (time 0), followed by $1 comma 500 deposits in years 2, 4, 6, and 8. At 9% annual interest, how much will the future equivalent be at the end of year 12?
Answer:
$15,391.91
Explanation:
the first step is to find the present value of the cash flows. After the future value of the sum would be determined.
present value is the sum of discounted cash flows.
present value can be determined using a financial calculator
Cash flow in year 0 = $1500
Cash flow in year 1 = 0
Cash flow in year 2 = $1500
Cash flow in year 3 = 0
Cash flow in year 4 = $1500
Cash flow in year 5 = 0
Cash flow in year 6 = $1500
Cash flow in year 7 = 0
Cash flow in year 8 = $1500
I = 9%
PV = $5472.36
The formula for calculating future value:
FV = P (1 + r) n
FV = Future value
P = Present value
R = interest rate
N = number of years
$5472.36(1.09)^12 = $15,391.91
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Increased use of portfolio and performance assessment techniques in the schools has been suggested to:
Answer:
Reduce the pressure to test for only fact and specific skills
Explanation:
PORTFOLIO assessments techniques can be defined as a form of assessment that help to focus on the self-reflection as well as the evidence of growth over time , and this is carried out through the samples of work products.
PERFORMANCE assessments techniques can be defined as the type of assessment that require the students to directly apply all what they might have learned in realistic situations.
Therefore Increased use of the portfolio as well as the performance assessment techniques in the schools has been suggested to help reduce the pressure on the students to test only fact and specific skills thereby enhancing their performance.
"Clauss Company transfers out 14,000 units and has 2,000 units of ending work in process that are 25% complete. Materials are entered at the beginning of the process and there is no beginning work in process. Assuming unit materials costs of $3 and unit conversion costs of $5, what are the costs to be assigned to units (a) transferred out and (b) in ending work in process
Answer:
a. $112,000
b. $7,500
Explanation:
(a) transferred out
Units transferred out are 100% complete for both materials and conversion costs, thus multiply the Total Cost per Equivalent units with the number of units transferred.
Cost of units transferred out = $8 × 14,000 units
= $112,000
(b) in ending work in process
Units of ending work in process are 100% complete in terms of materials ( since materials are entered at the beginning of the process) whilst 25% complete in terms on conversion cost (applied uniformly during production).
Cost of ending work in process
Materials ($3 × 2,000 units) = $6,000
Conversion ($3 × (2,000 units × 25%)) = $1,500
Total Cost = $7,500
Neither payback period nor discounted payback period techniques for evaluating capital projects account for: Group of answer choices
Answer: C. cash flows that occur after payback.
Explanation:
The Payback Period and Discounted Payback Period capital budgeting evaluation techniques are used to find out how long it will take for an investment to pay back it's initial outlay.
Once this point is gotten to however, the method stops working and as such does not take into account cashflows after the Payback period has been reached. This means that the method does not cater for profit but rather for Break-Even points alone which can be very unattractive because people embark on capital projects mostly to make profits.
A system of rewarding managers by linking bonuses to income computed under absorption costing may result in:
Answer:
excess inventory buildup
Explanation:
The absorption costing is the costing which covers full costing i.e direct costing and indirect costing
Here directing costing could be in terms of direct material, direct labor
While the indirect costing could be in terms of manufacturing overhead or indirect cost
In the given case since the managers who are rewarding in order to link bonus to income so it would be results in building excess inventory and the same is to be considered
Which of the following is an incorrect statement? a If individual audit risk remains the same, detection risk bears an inverse relationship to inherent and control risk. b The greater the inherent and control risk the auditor believes exist the less detection risk that can be accepted. c The auditor might make separate or combined assessments of inherent risk and control risk. d Detection risk cannot be changed at the auditor’s discretion.
Answer:
d Detection risk cannot be changed at the auditor’s discretion.
Explanation:
Audit risk can be defined as the risk that financial reports issued by an auditor are materially incorrect due to fraud or errors, despite the fact that the inappropriate audit opinion states that the financial reports are void of any material misstatements. There are two (2) main components of an audit risk, these are;
1. Detection risk: this deals with the fact that procedures used by the auditor will not detect any material misstatement as a result of errors.
2. Risk of material misstatement: this deals with the material misstatements of financial statements before auditing. There are two main types namely, inherent and control risks.
The following statements are true and correct;
A. If individual audit risk remains the same, detection risk bears an inverse relationship to inherent and control risk.
B.The greater the inherent and control risk the auditor believes exist the less detection risk that can be accepted.
C. The auditor might make separate or combined assessments of inherent risk and control risk.
However, saying that detection risk cannot be changed at the auditor’s discretion is false. Since it is arises as a result of error, if the auditor conducts a proper sampling procedure it can be detected and eventually changed.
if a firm's total revenue is equal to $800 and its total costs are equal to $472, what are its profits?
Answer:
Gross profit= $328
Explanation:
Giving the following information:
Sales revenue= $800
Total costs= $472
To calculate the total profit of this company, all we have to do is deduct from earnings all the cost components. I will assume that total costs include both fixed and variable costs.
Gross profi= 800 - 472
Gross profit= $328
sysyster corp. has an ROE of 16 percent and a payout ratio of 24 percent. what is its sustainable growth rate?
Answer:
The answer is 13.84 percent
Explanation:
The formula for sustainable growth rate is:
(Return on equity(ROE) x retention rate)/1 - Return on equity(ROE) x retention rate
Retention rate = 1 - payout ratio.
So, retention rate = 1 - 0.24
= 0. 76
Return on equity(ROE)= 0.16
(0.16 x 0.76) / 1 - ( 0.16 x 0.76)
= 0.1216 / 1 - 0.1216
0.1216/0.8784
=0.1384
Expressed as a percentage:
13.84percent
When talking about economic profits in a perfectly competitive market, the difference between the long run and the short run is that, in the short run, firms:
Two mutually exclusive projects have an initial cost of $60,000 each. Project A produces cash inflows of $30,000, $27,000, and $20,000 for Years 1 through 3, respectively. Project B produces cash inflows of $80,000 in Year 2 only. The required rate of return is 10 percent for Project A and 11 percent for Project B. Which project(s) should be accepted and why
Answer:
Project B
Explanation:
The computation of the net present value is shown below:
For project A
(in dollars) (in dollars)
Year Cash flows Discount factor at 10% Present value
0 -60000 1 -60000.00 (A)
1 30000 0.9090909091 27272.73
2 27000 0.826446281 22314.05
3 20000 0.7513148009 15026.30
Total present value 64613.07 (B)
Net present value 4613.07 (B - A)
For project B
(in dollars) (in dollars)
Year Cash flows Discount factor at 11% Present value
0 -60000 1 -60000.00 (A)
1 0 0.9009009009 0
2 80000 0.8116224332 64929.79
3 0 0.7311913813 0
Total present value 64929.79 (B)
Net present value 4929.79 (B - A)
As we can see that project B has high net present value as compared with project A so project B should be accepted
Your portfolio consists of 100 shares of CSH and 50 shares of EJH, which you just bought at $20 and $30 per share, respectively.What fraction of your portfolio is invested in CSH? In EJH?If CSH increases to $23 and EJH decreases to $29, what is the return on your portfolio?
Answer:
7.14%
Explanation:
Investment in CSH= $ 100*20 = $ 2000
Investment in EJH=$ 50*30 =$ 1500
Total Investment=$ 2000+$ 1500=$3500
fraction of your portfolio in CSH= $ 2000/$3500 = 0.5714
fraction of your portfolio in EJH= $ 1500/$3500 = 0.4286
If CSH increases to $23 and EJH decreases to $29,
new value of portfolio
= $23*100+$29*50
=$2300+$1450
= $3750
return in portfolio=(new value of portfolio/Total Investment)-1
return in portfolio=($3750/$3500)-1
return in portfolio=1.0714 - 1
return in portfolio=.0714=7.14%
The fraction in CSH is 0.5714.
The fraction of EJH is 0.4286.
The return on the portfolio is 7.14%.
The calculation is as follows:Investment made in CSH= $ 100 × $20 = $2,000
Investment in EJH = $50 × 30 = $1,500
So,
Total Investment is
= $2,000 + $1,500
= $3,500
Now
Fraction of the portfolio in CSH is
= $2,000 ÷ $3,500
= 0.5714
Fraction of the portfolio in EJH is
= $1,500 ÷ $3,500
= 0.4286
Now
If CSH increases to $23 and EJH decreases to $29.
So,
The new value of the portfolio is
= $23 × 100 + $29 × 50
= $2,300 + $1,450
= $3,750
Now
Return in portfolio is
= (New value of portfolio ÷ Total Investment) - 1
= ($3,750 ÷ $3,500) - 1
= 1.0714 - 1
=.0714
=7.14%
Therefore we can conclude that
The fraction in CSH is 0.5714.
The fraction of EJH is 0.4286.
The return on the portfolio is 7.14%.
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Based on the differences in terminal and line-haul costs, which form of transportation is preferred over long distances?
Answer:
Water
Explanation:
Based on these differences it is said that the preferred form of transportation over long distances is Water. Since over 70% of the Earth is covered in water and there are very few barriers to overcome in order to transport through water then it gives many advantages for long-distance transportation of goods. Such advantages includes cheap, fewer maintenance costs, ease of transport, available during natural calamities, important for foreign trade, useful for large and bulky goods, etc.
Chang Co. issued a $50,172, 120-day, discounted note to Guarantee Bank. The discount rate is 10%. Assuming a 360-day year, the cash proceeds to Chang Co. are:___________.
A. $55,189
B. $50,172
C. $50,590
D. $48,500
Assuming a 360-day year, the cash proceeds to Chang Co. are $50,172. Thus, option (B) is correct
What is the rate?A number, amount, or degree measured in relation to another object. She typed at a speed of 80 words per minute. a charge or payment based on another quantity. more specifically: the premium per insurance unit. A rate in mathematics is the comparison of two related values expressed in different units.
Discounted note to Guarantee Bank. The discount rate is 10%. Assuming a 360-day year, the cash proceeds to Chang Co. are $50,172Investors buy discount notes at a price less than the note's face value since they are issued at a discount to par.
60 miles per hour is a standard or measure for a specific number or amount of one item when compared to a unit of another thing. a set price per quantity unit: 10 cents per pound is the price. To lower costs and prices for all home furniture.
Therefore, Thus, option (B) is correct
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The price elasticity of supply for basmati rice (an aromatic strain of rice) is likely to be which of the following?
A. High in both the long run and the short run, because the inputs required to produce basmati rice can easily be duplicated.
B. Low in both the long and short runs, because rice farming requires only unskilled labor.
C. High, because consumers have a lot of other kinds of rice and other staple foods to choose from.
D. Higher in the long run than the short run, because farmers cannot easily change their decisions about how much basmati rice to plant once the current crop has been planted.
Answer: D. Higher in the long run than the short run, because farmers cannot easily change their decisions about how much basmati rice to plant once the current crop has been planted.
Explanation:
Price Elasticity of Supply refers to how Supply changes in response to a change in price. Essentially, if the price of a good increases, will Supplier supply more or less of that good as a result and by how much will they do so.
In the short run, the farmers would have already planted the crops and so would be unable start changing the quantity that they expect from the harvest. They will therefore supply the amount they harvested regardless of a price change.
In the long run however, they can change the amount of rice planted depending on the price of the rice in the market. Price Elasticity is therefore higher in the long run than in the short run.
Swinnerton Clothing Company's balance sheet showed total current assets of $1,800, all of which were required in operations. Its current liabilities consisted of $575 of accounts payable, $300 of 6% short-term notes payable to the bank, and $145 of accrued wages and taxes. What was its net operating working capital that was financed by investors? Select the correct answer. a. $1,096 b. $1,088 c. $1,112 d. $1,080 e. $1,104
Answer:
d. $1,080
Explanation:
The computation of the net operating working capital that was financed by investors is shown below:
= Total current assets - account payable - accrued wages and taxes
= $1,800 - $575 - $145
= $1,080
By deducting the account payable and accrued wages from the total current assets we can calculate the net operating working capital and the same is to be considered
Ashley is an attorney who specializes in family law. She uses the cash method of accounting and is a calendar-year taxpayer. Last year, she represented a client in a lawsuit and billed the client $5,000 for her services. Although she made repeated attempts, Ashley was unable to collect the outstanding receivable. Finally, in November of the current year, she finds out that the individual has moved without leaving any forwarding address. Ashley’s attempts to locate the individual are futile. What is the amount, if any, of the deduction that she may claim in connection with this bad debt?
Answer:
The Answer is explained below
Explanation:
Ashley is unable to collect the outstanding receivable after repeated attempts. In order to claim any deduction in connection with this bad debt Ashley has to record the income first but Ashley is using the cash method of accounting here. Therefore she can only claim any deduction when she receives any payment.
The Physical Inventory Worksheet is used when: Multiple Choice inventory items are physically placed in the warehouse All of the choices are correct the computer system goes down taking a physical count of inventory on hand
Answer:
taking a physical count of inventory on hand
Explanation:
The Physical Inventory Worksheet is used when taking a physical count of inventory on hand. This is the only way to tell how many items are really available for sale and allows a business to do it efficiently. An example would be counting the number of steaks the restaurant has on hand on a Saturday afternoon. This also allows the business to analyze the expected sales with the actual inventory in order to determine whether or not they need more.
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years, because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $14 per share 10 years from today and will increase the dividend by 5 percent per year thereafter.
Required:
If the required return on this stock is 14 percent, what is the current share price?
Answer:
we have to divide the money
Explanation:
as it is written its
When a customer deposit is recorded using the Make Deposits window, behind the screen QuickBooks converts the transactions into a journal entry that:
Answer: Debits checking account, Credits undeposited funds
Explanation:
QuickBooks is a very popular Accounting Software that is mostly used by Small to Medium Enterprises to keep their books in order.
When a customer makes a payment from a customer, QuickBooks sends this to the Undeposited Funds account and debits it. When you then use the Make Deposits window to record the deposit, the corresponding amount is taken from the Undeposited Funds account by way of a credit. It is then debited to your Checking Account (Bank account).
Company F purchased 40% of the outstanding stock of company K on June 30, 20XX. Both of the companies have a December 31st, year end. Company K is a publicly traded company and reports its net income to company F. Company K also pays a hefty dividend to the shareholders of company F. How should company F report the above facts on its December 31, 20XX balance sheet and income statement
Answer and Explanation:
Within the U.S. GAAP, Company F is an owner owning greater than 20 percent but smaller than or equivalent to 50 percent of Company K's stock and is thus considered to have the right to exercise considerable control on Company K's financial affairs.
According to the GAAP, there is nothing exist explicit information that there is no substantial impact.
Company F will use the EQUITY method to compensate for all assets in the 20 to 50 percent ownership range.
Within this approach,
Business F will pass the following journal entry on the purchase of shares in K:
Particulars Debit Credit
Investment In K Dr, XXXXXX
To Cash XXXXXX
(Being cash paid is recorded)
For recording this we debited the investment as it increased the assets and credited the cash as it decreased the assets
If Company K declares net income in Dec 20XX, Company F will instantly recognize its share of income for the proportionate period of keeping the 40 percent (that is 6 months net income) by way of a journal entry is shown below: (Total net income of K × 40 percent × 6 ÷ 12)
Particulars Debit Credit
Investment in K Dr, XXXXXX
To Investment Income -Co. K XXXXXX
(Being the investment is recorded)
For recording this we debited the investment as it increased the assets and credited the investment income as it also increased the income
If Company K pays dividends to company owners F
The investment account reduces by the amount of cash dividend earned, and the below entry must be passed on to F's books:
Particulars Debit Credit
Cash Dr, XXXXXX
To Investment in K XXXXXX
(Being the cash is recorded)
For recording this we debited the cash as it increased the assets and credited the investment as it decreased the assets
Once Company F sells shown above investment it makes a clear entry:
Particulars Debit Credit
Cash Dr, XXXXXX
To Investment in K XXXXXX
(Being the cash is recorded)
For recording this we debited the cash as it increased the assets and credited the investment as it decreased the assets
The investment carrying value come by
= Purchase price + Net income accrued - Dividends received
Any balance shall be debited in respect of losses on the selling of investment in K-equity securities or Credited to Investment in K -Equity Securities Gain on Sale
So this amount of investment in other companies' equity (40 percent), includes forwarding the above-mentioned journal entries, in the buying company's accounts.
sales of $1.67 million, cost of goods sold of $810,800, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. What is the company’s net income? Set up an income statement to answer the question.
Answer:
Net income= 561,506.25
Explanation:
Giving the following information:
sales of $1.67 million, cost of goods sold of $810,800, depreciation expenses of $175,000, and interest expenses of $89,575.
Tax= 35 percent
We need to determine the net income.
Sales= 1,670,000
COGS= (810,800)
Gross profit= 859,200
Depresiation= (175,000)
Interest= (89,575)
EBT= 594,625
Tax= (594,625*0.35)= (208,118.75)
Depreciation= 175,000
Net income= 561,506.25
Suppose there is a two good economy that produces medical devices and computers. Suppose the economy goes from 80 percent of its economy devoted to the production medical devices to 100 percent, and there is relatively large opportunity costs in terms of computer production. What is the most likely cause of the relatively large opportunity costs in terms of computer production
Answer:
A. Resources are being converted that have a comparative advantage in computer production
Explanation:
As additional resources are diverted, the marginal grow in output will convert into smaller and smaller due to the law of diminishing returns in the production possibility frontier.
In the meantime, computer production would cost high and potential, as more and more resources are being diverted to the production of medical devices. In order for the economy to go 100% in the manufacture of medical devices, it would have to shift resources that are better at making computers and would thus face high opportunity costs because such resources with a competitive advantage in computer production could have produced far more computers than medical devices.
The equal total payments pattern for installment notes consists of changing amounts of interest but constant amounts of principal over the life of the note.
A. True
B. False
Answer:
B. False
Explanation:
The equal total payments pattern for installment notes is when the regular payments on an installment note are always for the same amount. However, the amounts of interest and principal change over the life of the note because at the begining, most of the payment amount goes toward the interest and as you make payments your principal starts to decrease making the amount that goes toward the interest to decrease and the money that goes towards the principal to increase. According to that, the statement is false.
Assume that the number of people affected by these external costs is large. If the government wishes to establish an optimal allocation of resources in this market, it should
Answer:
tax producers so that the market supply shift leftward (upward)
Explanation:
Since S is the market supply curve, and S1 is the supply curve composed of all the other costs of production even external costs.
We recognize that external costs are the expenses involved when such goods and services are generated by third parties (who were not a part of the transaction).
A company's output imposes higher external costs on the people and hence the people most affected by such external costs is large.
Therefore, if the government needs to launch an appropriate resource allocation wherein resources are efficiently allocated at least contribute, the producers should be taxed.
The costs of production rise whenever the producers are taxed, which reduces the quantity given.
This will upward shift the supply curve from S to S1 to the left.
Swifty Corporation purchased from its stockholders 5,500 shares of its own previously issued stock for $275,000. It later resold 1,700 shares for $53 per share, then 1,700 more shares for $48 per share, and finally 2,100 shares for $42 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock.
Answer: The answer is given below
Explanation:
A journal is a book that is used in accounting to record the transactions that takes place in a company.
It should be noted that in the attached file, the amount that was paid in capital from the treasury stock was calculated as:
= 5,100 - 3,400
= 1,700
The retained earnings was also calculated as:
= 105,000 - 88,200 - 1,700
= 15,100
Check the attached file for further information.
Answer with its Explanation:
1. The repurchase of 5,500 shares from the sharesholders will be recorded as under:
Dr Treasury Stock $275,000
Cr Cash $275,000
2. The sale of 1,700 shares at $53 per share would be recorded as under:
Dr Cash ( 1,700 shares * $53 ) $90,100
Cr Treasury Stock ( 1,700 shares * $50 ) $85,000
Cr Paid in capital ( 1,700 shares * $3 ) $5,100
3. The Selling of the 1,700 shares at $48 each will be recorded as under:
Dr Cash ( 1,700 Shares * $48) $81,600
Dr Paid in capital ( 1,700 shares * $2) $3,400
Cr Treasury Stock ( 1,700 shares * $ 50 ) $85,000
4. The selling of 2,100 shares at $42 will be recorded as under:
Dr Cash ( 2,100 shares * $ 42 ) $88,200
Dr Paid in capital from treasury stock $1,700 ........ Step 1
Dr Retained Earnings $15,100 ...... Balancing Figure
Cr Treasury Stock ( 2,100 shares * $ 50 ) $105,000
Step 1. Paid in capital from Treasury Stock
Paid in capital from Treasury Stock = 5,100 - 3,400 = $1,700 Paid In capital
Retained Earnings will be Balancing Figure = 105,000 - 88,200 - 1,700 Paid In capital = $15,100
Define opportunity cost.
Select the correct answer below:
A. All possible consumption combinations of goods that someone can afford when all income is spent.
B. A cost that is made in the past and cannot be recovered.
C. All possible combinations of consumption that someone can afford given the prices of goods and the individual's income.
D. The measure of cost by what is given up in exchange for what is obtained.
Answer:
the measure of cost by what is given up in exchange for what is obtained
Explanation:
The idea behind opportunity cost is that the cost of one item is the lost opportunity to do or consume something else. In short, opportunity cost is the value of what we give up in order to have it.
If a major misdeed is committed by a brokerage that results in a substantial drain on the real estate recovery trust account, what options are available to replenish the fund?
Answer:
Explanation:
Real Estate Recovery Trust Account are accounts that are funded by administrative penalties and dispersed to consumers that are owed damages due to a license holder's conduct and subsequent inability to pay. These licence holders may be charged an additional $10 fee on the renewal date in order to make up for the substantial drain, or receive a special assessment if the replenishment is urgent.
Buckeye Incorporated has operating income of $ 434,000, a sales margin of 7%, and a capital turnover rate of 2. What amount would Buckeye report for sale
Answer:
The amount Buckeye would report for sale is $6,200,000.
Explanation:
Sale refers to income or revenue that a company got by selling its goods or providing its services.
In accounting ratio analysis, sales margin is obtained by dividing the operating profit by sale. Therefore, the formula for sales margin can be written as follows:
Sales margin = Operating income / Sale ................... (1)
To obtain Sale, we can substitute the figures for sales margin and operating profit from the question into equation (1) and then solve for sale as follows:
7% = $434,000 / Sale
Sale * 7% = $434,000
Sale = $434,000 / 7%
Sale = $6,200,000
Therefore, the amount Buckeye would report for sale is $6,200,000.
In the manufacture of 10,000 units of a product, direct materials cost incurred was $135,700, direct labor cost incurred was $82,000, and applied factory overhead was $37,500. What is the total conversion cost
Answer:
The total conversion cost is $119,500.
Explanation:
Conversion cost refers to all the costs of converting or turning raw materials into finished goods. Conversion cost can therefore be obtained by deducting the cost of raw materials from the cost of production. This implies that conversion cost is the the addition of direct labor costs and manufacturing costs.
Based on the above explanation, total conversion cost for this question can therefore be calculated as follows:
Total conversion cost = Direct labor cost + Applied factory overhead = $82,000 + $37,500 = $119,500
Therefore, the total conversion cost is $119,500.
Shawn exchanges a factory building for an apartment building in a qualifying like-kind exchange. The factory has a basis of $350,000 and the apartment building has a fair market value of $320,000.a. What is Shawn’s realized gain or loss and the basis of the apartment building?b. What alternative could you suggest to Shawn?
Answer:
a.$30,000
b.The alternative i could suggest to Shawn is that he may sell the factory building instead of him to purchase the apartment building in order for him to recognize the loss which will inturn lower his taxes.
Explanation:
a. Calculation of what is Shawn’s realized gain or loss and the basis of the apartment building
Since Shawn tend to received the apartment building which has a Fair Market Value of $320,000 in exchange of his $350,000 worth of factory , this means he had a lost of $30,000 which is calculated as ($320,000-$350,000) which can therefore be deferred
b. The alternative i could suggest to Shawn is that he may sell the factory building instead of him to purchase the apartment building in order for him to recognize the loss which will inturn lower his taxes.