Answer: B. Individuals experiencing temporary fluctuations in their incomes are more likely to maintain moderate spending habits.
C. The richest quintile has the ability to save a larger percentage of its income
Explanation:
Income inequality has to do with the differences in the income of people. It has to do with how incomw I'm an economy are distributed unevenly.
The reason for the difference between income inequality and consumption inequality is that the poor generally spend more of their income on the consumption of goods while the rich save more.
Also, the individuals experiencing temporary fluctuations in their incomes are more likely to maintain moderate spending habits.
Therefore, the correct options are B and C.
The reason behind the stark disparity between income and consumption inequality are;
Individuals experiencing temporary fluctuations in their incomes are more likely to maintain moderate spending habits.The richest quintile has the ability to save a larger percentage of its income.What is the reason behind difference between income inequality and consumption inequality? Low income earns only moderate-income which is only sufficient to fulfill their consumption need with no saving ability. Rich people have a higher tendency to save and invest more than low-income group due to their higher marginal propensity to save.Learn more about income and consumption disparity here:
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Prince Company owns 104,000 of the 130,000 shares outstanding of Serf Corporation. Serf Corporation sold equipment to Prince Company on January 1, 2017 for $740,000. The equipment was originally purchased by Serf Corporation on January 1, 2016 for $1,280,000 and at that time its estimated depreciable life was 8 years. The equipment is estimated to have a remaining useful life of four years on January 1, 2017. Both companies use the straight-line method to depreciate equipment. In 2018 Prince Company reported net income from its independent operations of $3,270,000, and Serf Corporation reported net income of $820,000 and declared dividends of $60,000. Prince Company uses the cost method to record the investment in Serf Company.
Required: A. Prepare, in general journal form, the workpaper entries relating to the intercompany sale of equipment that are necessary in the December 31, 2018 consolidated financial statements workpapers.
Answer:
Journal 1
At the beginning of the year
Debit : Equipment $380,000
Credit : Retained Earnings ($380,000 - $95,000) $285,000
Credit ; Accumulated Depreciation $95,000
Journal 2
During the year :
Debit : Depreciation $95,000
Credit : Accumulated depreciation $95,000
Explanation:
The sale of equipment to Prince Company is an intragroup transaction and must be eliminated from Prince Company Consolidated Financial Statements as follows :
Carrying Amount before sale :
Carrying Amount = Cost - Accumulated Depreciation
= $1,280,000 - ($1,280,000 ÷ 8)
= $1,120,000
Unrealized gain / loss =Selling Price - Carrying Amount
= $740,000 - $1,120,000
= $380,000 loss
Eliminate this loss on sale of equipment
2017
Unrealized depreciation = $380,000 ÷ 4
= $95,000
Eliminate this depreciation charge deferred at the beginning of 2018
2018
Unrealized depreciation = $380,000 ÷ 4
= $95,000
Eliminate this depreciation charge deferred during 2018
Question 1 (14 points)
Imagine that you own your business. You are producing a product (it could be a service). You would like to differentiate your product.
a. (6 points) Why would you want to differentiate your product?
b. (8 points) How would you do it? How would your product differ? Please provide a specific product: a detailed explanation of your original product and how you would differentiate it. Please do not use the examples covered in class.
Question 2 (15 points)
Imagine that you own your business. It does not need to be the same as in other questions, you are allowed to pick a different firm or product. Imagine further that you or your consumers face an asymmetric information problem.
a. (5 points) Please explain in detail what this asymmetric information problem, and who is facing it (your firm or your consumers).
b. (10 points) Please explain how you solved this problem.
Question 3 (11 points)
Imagine that you own your business. It does not need to be the same as in other questions, you are allowed to pick a different firm or product.
a. (3 points) Think about your production process. Please explain the technology that you use in the production process.
b. (8 points) How do you think the technology that you use, affects the market structure and/or the demand of your product? Note that this question is NOT about how technology affects your production process, therefore, NOT about productivity, NOT about the cost structure.
Answer:
a. (6 points) Why would you want to differentiate your product?
Because differentiating your product is one of the two basic business strategies, the other one being reducing the price of the product. Differentiating your product allows you to gain competitiveness in a contested market.
b. (8 points) How would you do it? How would your product differ?
An product that can be differentiated is a yogurt. The market for yogurt is very competitive so differentiation is necessary. The yogurt could be flavored in less common ways: like saffron, kiwi or cucumber, and the technique could be adapted from Greek Yogurt to give a healthier style.
a. (5 points) Please explain in detail what this asymmetric information problem, and who is facing it (your firm or your consumers).
The problem of asymmetric information occurs when one party of the transaction has more information than the other party. In a typical business transaction, the managers of the firm have more information than consumers, so consumers would be facing the problem of asymmetric information.
b. (8 points) How do you think the technology that you use, affects the market structure and/or the demand of your product?
Technology can make the market structure more competitive or less, but it usually makes it more competitive. Technology also improves the productiviy and efficiency of the production process, which leads to costs reductions than pass through price. This in turn raises demands for the product.
A company sells 500 shirts at a price of $15 each with a cost of goods sold of $2 per shirt. The company has selling and administrative expenses of $2,500, depreciation expenses of $500, interest expenses of $1,000, and a tax rate of 35%. Calculate the EBT
Answer:
EBT= $5,000
Explanation:
We need to calculate the earnings before taxes:
Sales= 500*15= 7,500
COGS= 500*2= (1,000)
Gross profit= 6,500
Depreciation= (500)
Interest= (1,000)
EBT= 5,000
Now, if we want to continue and calculate the net income:
EBT= 5,000
Tax= (5,000*0.35)= (1,750)
Depreciation= 500
Net income= 3,750
The key to using the cost-benefit principle is to think about _____ aspects of a decision. Group of answer choices only nonfinancial neither financial nor nonfinancial only financial both financial and nonfinancial
Answer:
both financial and nonfinancial
Explanation:
The cost benefit analysis means the approach where we analyze the strength and weakness of the alternatives available and determine the optimal solution that help in accomplish the benefits.
So in order to use the cost-benefit principle here both financial and non-financial should be used
Therefore the last option is correct
You purchase 150 shares for $70 a share ($10,500), and after a year the price rises to $80. Calculate the percentage return on your investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense):
Answer:
57.14%
Explanation:
Missing word "25 percent."
Gain on the stock = (150*$80) - $10,500
Gain on the stock = $ 12,000 - $10,500
Gain on the stock = $1,500
If Margin requirement is 25%, The Margin = 10,500*25% = $2,625
Return on Investment = $1,500/$2,625 * 100 = 0.571429 * 100 = 57.1429% = 57.14%
Do you think that some people are more susceptible to psychological marketing than others? Explain
Answer: yes, because some people studied the material which would make it easier for the to catch on.
Explanation:
On average, workers in Australia can produce 3 units of agriculture output or 9 units of manufacturing output per day. In Guyana, workers can produce 4 units of agriculture or 8 units of manufacturing output per day.
1. What is the opportunity cost of agricultural output in Canada? units of manufacturing output?
2. What is the opportunity cost of agricultural output in Guyana? units of manufacturing output?
Answer:
3 UNITS OF MANUFACTURING OUTPUT
2 units of manufacturing output?
Explanation:
Opportunity cost or implicit is the cost of the option forgone when one alternative is chosen over other alternatives.
the opportunity cost of agricultural output in Australia = manufacturing output per day / agricultural output
= 9/3 = 3
the opportunity cost of agricultural output in Guyana = manufacturing output per day / agricultural output
= 8/4 = 2
Your customer purchased 100 shares of Cuesta Verde Homes at $15 per share in a margin account. How much must the customer deposit by settlement day to pay for the trade
Answer:
$1,500
Explanation:
Calculation for How much must the customer deposit by settlement day to pay for the trade
Deposit=100 shares*$15 per share
Deposit=$1,500
Therefore the amount that the customer must deposit by settlement day to pay for the trade is $1,500
"Many service companies collect data via a follow-up survey of their customers. Suppose, in order to ascertain customer sentiment, a certain air line sends an email to customers immediately following a flight. The following question is asked, among others. How likely are you to recommend this air line to others?"
Answer: Categorical; Ordinal
Explanation:
The data that are collected by the airline in this case is referred to as categorical.
The categorical variables are simply referred to as categorical variables because they can be segregated into groups. Also, the measurement of scale that is used is the ordinal scale.
Ordinal data is a kind of categorical data with a set order or scale to it.
Comment
There are different ways to respond to an issue. Due to the fact that the response stated are five choices, therefore, the response is a categorical response.
When you look at the five responses for the labels for the customer responses, you will see that a nominal scale is being used.What is a categorical response?
Categorical is known to be the term for all single-choice or multiple-choice response to a given question.
See full question below
Airline Customer Satisfaction. Many service companies collect data via a fol-low-up survey of their customers. For example, to ascertain customer sentiment, Delta Air Lines sends an email to customers immediately following a flight. Among other questions, Delta asks:
How likely are you to recommend Delta Air Lines to others?
The possible responses are: Definitely
Will
Probably Will
May or May Not
Probably Will Definitely Will Not
Not
a. Are the data collected by Delta in this example quantitative or categorical?
Learn more about categorical response from
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The Kreidler Kids company can produce swing sets for $1,000. Kendra wants a new swing set for her children and will pay $1,500 for it. Kendra finds the swing set she wants and pays $1,500 for it from the Kreidler Kids company. The Kreidler Kids company has
Answer:
The Kreidler Kids company has a producer surplus of $500.
Explanation:
Producer surplus can be described or calculated as the amount a producer is willing to supply or sell goods and the actual amount the supplier received.
For this question, the producer surplus can therefore be calculated as follows:
The amount Kreidler Kids company can produce swing sets = $1,000
The amount paid by Kendra for the the swing set = $1,500
Producer surplus = The amount paid by Kendra for the the swing set - The amount Kreidler Kids company can produce swing sets = $1,500 - $1,000 = $500
Therfore, the Kreidler Kids company has a producer surplus of $500.
A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts:
Karaoke Machines CDs
Price Price
Quantity (Dollars) Quantity (Dollars)
2017 20 30 40 8
2018 25 50 60 10
Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is__________
Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is ____________ Which of the following statements is correct? Check all that apply.
a. The inflation rate in 2018 is not the same using the two methods.
b. The CPI allows the basket of goods and services to change.
c. The GDP deflator holds the basket of goods and services constant.
Answer:
1. 52.17%
2. 50.41%
3. a. The inflation rate in 2018 is not the same using the two methods
Explanation:
1.
We are to calculate the % change in overall price level
Market basket:
Year 2017 = (30x2) + (8x4)
= 60 +32
= $92
Year 2018 = (50x2) + (10x4)
= 100+40
= $140
Cpi in 2017 = market basket in this year/market basket in base year x 100
= 92/92 x 100
= 100
Cpi in 2018
= 140/92 x 100
= 152.17
% change = 152.17 - 100 / 100
= 0.5217 x100
= 52.17%
2.
Nominal gdp in year 2017 = (20x30) +(40x8)
= 920 dollars
Real gdp in same year = 920 dollars
Gdp deflator (2018) = nominal/real x 100
= 920/920 x 100
= 100
Real gdp (2018) = (25*30) + (60x8)
= $1230
Nominal gdp(2018) = 25x50 + 60x10
= $1850
Gdp deflator = 1850/1230 x 100
= 150.41
% change in overall price level = 150.41-100/100
= 0.5041 x 100
= 50.41%
3. Using the 2 methods inflation rate in 2018 is not the same. The cpi's rate of inflation holds basket of goods to be fixed. Gdp deflator allows a fluctuation (it changes)
M. Bramble Corporation has 14,000 shares of 8%, $100 par value, cumulative preferred stock outstanding at December 31, 2020. No dividends were declared in 2018 or 2019. If M. Bramble wants to pay $360,000 of dividends in 2020, what amount of dividends will common stockholders receive
Answer:
Dividend - Common stock = $24000
Explanation:
The cumulative preferred stock refers to the kind of preferred stock that accrues the dividends in case the dividend on these stocks is not paid in a certain year. Such dividend is to be paid first whenever the business declares dividends in the future.
The total dividend per year on the cumulative preferred stock for M. Bramble Corporation is,
Dividend - Preferred stock = 14000 * 100 * 0.08 = $112000
The dividends in arrears at the start of 2020 = 112000 * 2 = $224000
The total dividend payable on preferred stock at the end of 2020 = 224000 + 112000 = $336000
As the dividends on preferred stock is payable before dividends on common stock, the dividends on common stocks will be,
Dividend - Common stock = 360000 - 336000 = $24000
Lucas is working in ABC organization. He looks after the logical components of Active Directory which are mapped to the organizational and business requirements of an organization. Which of the following are those logical components?
a. Active Directory domains
b. OUs
c. Groups
Answer:
The logical components of Active Directory are:
a. Active Directory domains
Explanation:
Three main components are identified in the Active Directory. They are the domains, trees, and forests, with several objects like users and devices. The logical components, as administrative entities in Active Directory, assign logical systems, allowing Lucas to organize resources so that their layout in the directory reflects the logical structure of ABC organization.
Which is the simplest way to setup a business?
A. Cooperative
B. Corporation
C. Partnership
D. Sole
Cosmo Company produces its finished product in two processing departments--Assemblyand Packaging. The following information is available for the month of July:
Assembly Department:
The beginning work-in-process inventory cost was $62,744 and consisted of 4,100 units that were 40% completed as to conversion costs.
During July, an additional 16,800 units were started into production. A total of 15,600 units were completed and transferred out to the Packaging Department.
The ending work-in-process inventory consisted of 5,300 units which were 80% complete as to conversion costs.
The following costs were incurred during July: direct materials $124,320; direct labor $140,000; and factory overhead $98,420.
Direct materials are added at the beginning of the process in the Assembly Department and conversion costs are incurred evenly throughout the production process.
Packaging Department:
The beginning work in process inventory cost was $80,936 and consisted of 3 ,200 units that were 20% complete as to conversion costs.
During July, a total of 14,600 units were completed and transferred out to Finished Goods Inventory.
The ending work in process inventory consisted of 4,200 units which were 60% complete as to conversion costs.
The following costs were incurred during July: direct materials $207,320, direct labor $100,000; and factory overhead costs $ 162,032.
Direct materials are added at the end of the process in the Packaging Department and conversion costs are incurred evenly throughout the production process.
REQUIRED:
Prepare a production report for Jul v for the Assembly Departmen.
Answer:
Production Cost Report
INPUTS
units costs
Beginning Inventory
Units 4,100
Cost at the beginning $62,744
Incurred during the period :
Units started 16,800
Materials $124,320
Conversion costs $238,420
Total 20,900 $425,484
OUTPUTS
Completed and transferred 15,600 $302,952
Ending Work in Process 5,300 $90,185
Total 20,900 $393,137
Explanation:
Note : I will use the FIFO method for this question since the information given is only suitable for this method.
Assembly Department
First, calculate the equivalent units of production with respect to materials and conversion costs :
1.Materials
To finish Opening Work In Process (4,100x0%) = 0
Started and Completed ((15,600 - 4,100) x100%) = 11,500
Ending Work In Process (5,300x 100%) = 5,300
Equivalent units with respect to materials = 16,800
2.Conversion costs
To finish Opening Work In Process (4,100x60%) = 2,460
Started and Completed ((15,600 - 4,100) x100%) = 11,500
Ending Work In Process (5,300x 80%) = 4,240
Equivalent units with respect to conversion costs = 19,840
Next, calculate the total costs with respect to materials and conversion costs :
1. Materials
FIFO method only accounts for costs incurred during the period
Costs Incurred during the period = $124,320
Total Material costs = $124,320
2. Conversion Costs
FIFO method only accounts for costs incurred during the period
Costs Incurred during the period ($140,000 + $98,420) = $238,420
Total Conversion costs = $238,420
Next, calculate the cost per equivalent unit of materials, conversion costs and in total
1. Materials
Cost per equivalent = Total Costs / Total Equivalent Units
Therefore,
Cost per equivalent = $124,320/ 16,800
= $7.40
2. Conversion Costs
Cost per equivalent = Total Costs / Total Equivalent Units
Therefore,
Cost per equivalent = $238,420/ 19,840
= $12.02
3. Total
Total unit cost = materials unit cost + Conversion unit cost
= $7.40 + $12.02
= $19.42
Finally, calculate the total cost of units completed and transferred out and units still in process
1. units completed and transferred out
Total cost = units completed and transferred out x total unit cost
= 15,600 units x $19.42
= $302,952
2. units still in process
Total cost = material costs + conversion costs
= 5,300 x $7.40 + 4,240 x $12.02
= $90,184.80
Production Cost Report
INPUTS
units costs
Beginning Inventory
Units 4,100
Cost at the beginning $62,744
Incurred during the period :
Units started 16,800
Materials $124,320
Conversion costs $238,420
Total 20,900 $425,484
OUTPUTS
Completed and transferred 15,600 $302,952
Ending Work in Process 5,300 $90,185
Total 20,900 $393,137
Honeywell, Goodrich, and UTC Aerospace are among the suppliers to Embraer. If these companies want to look for other export opportunities or information on exporting, the most comprehensive source of information in the United States is the
Answer:
U.S. Department of Commerce.
Explanation:
The U.S Department of Commerce can be defined as a governmental organization that is saddled with the responsibility of promoting economic growth and development, better standard of living for the citizens and provision of job opportunities.
Basically, the U.S Department of Commerce have specialized tools and resources to help gather economic information and demographic data such as amount of export and imports into the United States of America.
In this scenario, Honeywell, Goodrich, and UTC Aerospace are among the suppliers to Embraer. If these companies want to look for other export opportunities or information on exporting, the most comprehensive source of information in the United States is the U.S. Department of Commerce.
Prepare a business plan for farming five cows for milk production ?
Answer:
Creating a dairy farming business plan is always a good strategy, it will be your saviour as it will act as a reference guide for your business.
Executive summary
Summary.
Company description.
Market Analysis.
Organization description.
Product Line.
Marketing plan.
Marketing team.
Funding request and use.
Explanation:
Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted. Sales $ 605,000 Cost of goods sold 425,000 Salaries 112,000 ($15,000 is indirect) Utilities 14,000 ($3,000 is indirect) Depreciation 42,000 ($10,000 is indirect) Office expenses 20,000 (all indirect) 1. Prepare a departmental income statement for 2019. 2.
Answer:
Part 1
JANSEN COMPANY
Departmental Income Statement—Ski Department
Sales $605,000
Cost of Sales ($425,000)
Gross Profit $180,000
Direct Expenses
Salaries ($97,000)
Utilities ($11,000)
Depreciation ($32,000)
Other Expenses ($38,000)
Operating profit $2,000
Part 2
JANSEN COMPANY
Departmental Contribution to Overhead—Ski Department
Sales $605,000
Cost of Sales ($425,000)
Gross Profit $180,000
Direct Expenses ($140,000)
Contribution $40,000
Less Overheads
Salaries ($15,000)
Utilities ($3,000)
Depreciation ($10,000)
Office Expenses (20,000)
Total Overheads $48,000
Contribution to overhead $40,000 : $48,000
Part 3
No. Jansen should not eliminate the ski department because it is making a profit on it on (Contributing towards the company costs)
Explanation:
Hie, I have attached the full question as pdf below
If the department is making a loss on its own, it must be eliminated. Departments must make a contribution towards the costs of the company overall
Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 41,000 speaker sets:
Sales $3,362,000
Variable costs 840,500
Fixed costs 2,310,000
Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable costs are expected to average $20.00 per set; annual fixed costs are anticipated to be $1,986,000.
Required:
1. Calculate the company’s current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States.
2. Determine the break-even point in speaker sets if operations are shifted to Mexico.
3. Assume that management desires to achieve the Mexican break-even point; however, operations will remain in the United States.
4. If variable costs remain constant, by how much must fixed costs change?
5. If fixed costs remain constant, by how much must unit variable cost change?
6. Determine the impact (increase, decrease, or no effect) of the following operating changes.
A) Effect of an increase in direct material costs on the break-even point.
B) Effect of an increase in fixed administration costs on the unit contribution margin.
C) Effect of an increase in the unit contribution margin on net income.
D) Effect of a decrease in the number of units sold on the breakeven point.
Answer:
1. $211,500 and $3,644,000
2. 32,033 speaker sets (Mexican)
3. 32,033 speaker sets (Mexican required Break even)
4. $323,954 decrease
5. $11,11 decrease
6. Determining Effects :
A. decrease
B. no effect
C. increase
D. no effect
Explanation:
Part 1
a
Income = Contribution (Sales - Variable Costs) - Fixed Costs
therefore,
Income = $3,362,000 - $840,500 - $2,310,000 = $211,500
b
Double the figure of income = $211,500 x 2 = $423,000
Sales to achieve target profit = Target Profit + Fixed Cost ÷ Contribution Margin
where,
Contribution Margin = Contribution (Sales - Variable Costs) ÷ Sales
= ($3,362,000 - $840,500) ÷ $3,362,000
= 0.75
therefore,
Sales to achieve $423,000 profit = ($423,000 + $2,310,000) ÷ 0.75
= $3,644,000
Part 2
Break even point (speaker sets) = Fixed Cost ÷ Contribution per unit
where,
Fixed Cost = $1,986,000
Contribution per unit = ($3,362,000 / 41,000) - $20.00 = $62.00
therefore,
Break even point (speaker sets) = $1,986,000 ÷ $62.00
= 32,033 speaker sets
Part 3
Mexico :
Break even point (speaker sets) = Fixed Cost ÷ Contribution per unit
where,
Fixed Cost = $1,986,000
Contribution per unit = ($3,362,000 / 41,000) - $20.00 = $62.00
therefore,
Break even point (speaker sets) = $1,986,000 ÷ $62.00
= 32,033 speaker sets
United States :
Break even point (speaker sets) = Fixed Cost ÷ Contribution per unit
where,
Fixed Cost = $2,310,000
Contribution per unit = ($3,362,000 / 41,000) - ($840,500 / 41,000) = $61.50
therefore,
Break even point (speaker sets) = $2,310,000 ÷ $61.50
= 37,561 speaker sets
Part 4
Break even point (speaker sets) = Fixed Cost ÷ Contribution per unit
where,
US Fixed Cost = $2,310,000
Fixed Cost Required = Unknown
Contribution per unit = $82.00 - $20.00 = $62.00
therefore,
Fixed Cost = Breakeven Point x Contribution per unit
= 32,033 speaker sets x $62.00
= $1,986,046
Change in Fixed Costs = $323,954 decrease ($2,310,000 - $1,986,046)
Part 5
Break even point (speaker sets) = Fixed Cost ÷ Contribution per unit
where,
US Fixed Cost = $2,310,000
US Contribution per unit = $82.00 - $20.00 = $62.00
Contribution per unit = $82.00 - V = Unknown
therefore,
Contribution per unit = Fixed Costs ÷ Breakeven point
= $2,310,000 ÷ 32,033 speaker sets
= $73.11
Variable Cost = Selling Price - Contribution per unit
= $82.00 - $73.11
= $8.89
Change in Variable Cost = $11,11 decrease ($20.00 - $8.89)
Locate the website of any company that publishes a corporate social responisbility report (also referred to as a sustainability report). Describe three nonfinancial performance measures included in the report. Why do you think the company publishes this report
Answer:
Employee turnover
Customer complains
Repairs and warranty claims
Explanation:
Corporate social responsibility is an important part which is included in financial statements. The companies report their attitude towards the betterment of society and ensure that there is no harm to the society and environment by the business activities. Non financial measures are important as they are contributors to business success. Employees turnover should not be high as it indicates the customers that business is not motivating its employees and retaining skilled employee is difficult for the business.
Brief Exercise 22-02 Paige Company estimates that unit sales will be 10,100 in quarter 1, 12,100 in quarter 2, 14,800 in quarter 3, and 18,800 in quarter 4. Using a sales price of $82 per unit. Prepare the sales budget by quarters for the year ending December 31, 2020.
Answer:
Paige Company
Sales budget by quarters for the year ending December 31, 2020:
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Sales in units 10,100 12,100 14,800 18,800 55,800
Unit sales price $82 $82 $82 $82 $82
Sales value $828,200 $992,200 $1,213,600 $1,541,600 $4,575,600
Explanation:
a) Data and Calculations:
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Sales in units 10,100 12,100 14,800 18,800 55,800
Unit sales price $82 $82 $82 $82 $82
Sales value $828,200 $992,200 $1,213,600 $1,541,600 $4,575,600
b) Paige's sales budget is a financial plan which computes the expected sales revenue based on an expected selling price and sales unit. Paige uses the sales budget to forecast its future sales revenue. The preparation of the sales budget by Paige Company will ensure the efficient allocation of business resources, thereby saving time, effort, and money.
A responsibility center is best described as: Multiple Choice any part of an organization whose manager has control over and is accountable for cost, profit, or investments. any part of an organization that has responsibility for managing product and service quality. any financial sub-unit within an organization that has the responsibility to account for the performance of other organizational sub-units. any part of an organization that has responsibility for optimizing customer service and satisfaction
Answer:
any financial sub-unit within an organization that has the responsibility to account for the performance of other organizational sub-unit
Explanation:
The responsibility center is the functional entity within a business that have their own goals and objectives, staff who is dedicated to their work, rules, regualtions, policies, procedures. It generally provide the managers the responsibility for the generation of the revenue, expenses that are incurred or the fund that is invested
So the above represent the answer
When a company changes from one inventory costing method to another, the change must be fully disclosed in a footnote to the financial statements explaining the reasons for the change and the effect on net income.
A. True
B. False
Answer:
A. True
Explanation:
In the case when the company wants to change from one method of inventory to the other method of inventory so this would be disclosed in the foot note of the financial statement with a proper reason and also the impact on the net income would be disclosed
Therefore the given statement is true
Swann Company sold a delivery truck on April 1, 2016. Swann had acquired the truck on January 1, 2012, for $45,500. At acquisition, Swann had estimated that the truck would have an estimated life of 5 years and a residual value of $3,000. At December 31, 2015, the truck had a book value of $11,500. Required: 1. Prepare any necessary journal entries to record the sale of the truck, assuming it sold for: a. $11,125 b. $7,525 2. How should the gain or loss on disposal be reported on the income statement
Answer:
1.
Journal Entries
a.
Dr. Cash_________________$11,125
Dr. Accumulated Depreciation $36,125
Cr. Truck ________________ $45,500
Cr. Gain on Disposal ________$1,750
b.
Dr. Cash_________________$7,525
Dr. Loss on Disposal ________$1,850
Dr. Accumulated Depreciation $36,125
Cr. Truck ________________ $45,500
2.
a.
The gain is reported as a realized gain in the income statement after operating income for the period.
b.
The loss is reported as a realized loss in the income statement after operating income for the period.
Explanation:
1.
We need to calculate the depreciation for the 3 months of 2016.
Depreciation for the period = ( ( Initial cost -Residual Value ) / Useful life ) x Time Fraction = ( ( $45,500 -$3,000 ) / 5 ) x 3/12 = $2,125
Book Value on April 1, 2016 = Book Value on December 31, 2015 - Depreciation for 2016 = $11,500 - $2,125 = $9,375
Accumulated Depreciation = Initial cost - Book value = $45,500 - $9,375 = $36,125
Now compare The bok value o sale price to calculate the gain or losss
a.
Gain = Sale Value - Book value = $11,125 - $9,375 = $1,750
b.
Loss = Book Value - Sale value = $9,375 - $7,525 = $1,850
2.
As she prepared financial documents to be discussed at her company's
annual shareholders' meeting, Linda added an appendix to the financial overview that details all financial transactions in the last fiscal year.
Which of the accounting principles below is she observing?
a) Matching Principle
b) Measurement Principle
c) Full Disclosure Principle
d) Time Period Principle
Answer: c) Full Disclosure Principle
Explanation:
The Full Disclosure Principle is a principle in accounting that tries to reduce any information asymmetry between a company and the people who are to have access to their financial statement.
It does so by requiring that all relevant information to the financial statements such as financial overviews for the period are added to the statements so that the readers can understand the transactions that took place as well as the accounting methodology used.
Develop an Excel model for the following LP transportation problem. Solve the problem using Solver and match the correct answer to the questions. Warehouse City E City F City G City H Warehouse Supply A 0.53 0.21 0.52 0.41 4500 B 0.31 0.37 0.41 0.28 5000 C 0.56 0.32 0.56 0.33 4000 D 0.41 0.54 0.34 0.52 5500 City Demand 4,400 3,500 5,500 5,600 Match the correct answer to the following questions: 1. What is the value of the objective function
Answer:
The objective function is:
Minimization (Z) = 0.53Xae + 0.21Xaf + 0.52Xag + 0.41Xah + 0.31Xbe + 0.37Xbf + 0.41Xbg + 0.28Xbh + 0.56Xce + 0.32Xcf + 0.56Xcg + 0.33Xch + 0.41Xde + 0.54Xdf + 0.34Xdg + 0.52Xdh
Explanation:
Solution:
We are asked to find the value of the objective function in this data given.
So,
Let Xae be the number of units shipping from warehouse A to city E.
Similarly, we have Xaf, Xag, Xah
Let Xbe be the number of units shipping from warehouse B to city E .
Similarly, we have Xbf, Xbg, Xbh
Let Xce be the number of units shipping from warehouse C to city E .
Similarly, we have Xcf, Xcg, Xch
Let Xde be the number of units shipping from warehouse D to city E .
Similarly, we have Xdf, Xdg, Xdh
Furthermore,
0.53 is the shipping cost of 1 unit from warehouse A to City E.
So, the shipping cost of Xae units from warehouse A to City E is 0.53Xae.
Similarly, we have other corresponding costs.
Hence,
The objective function is:
Minimization (Z) = 0.53Xae + 0.21Xaf + 0.52Xag + 0.41Xah + 0.31Xbe + 0.37Xbf + 0.41Xbg + 0.28Xbh + 0.56Xce + 0.32Xcf + 0.56Xcg + 0.33Xch + 0.41Xde + 0.54Xdf + 0.34Xdg + 0.52Xdh
Johnson Inc. is a job-order manufacturing company that uses a predetermined overhead rate, based on direct labor hours, to apply overhead to individual jobs.
For the current year, estimated direct labor hours are 95,000 and estimated factory overhead is $617,500.
The following information is for September of the current year:
September 1, inventories:
Materials inventory $ 7,500
Work-in-process inventory (All Job A) 31,200
Finished goods inventory 67,000
Material purchases 104,000
Direct materials requisitioned:
Job A 65,000
Job B 33,500
Direct labor hours:
Job A 4,200
Job B 3,500
Labor costs incurred;
Direct labor ($8.50/hour) 65,450
Indirect labor 13,500
Supervisory salaries 6,000
Rental costs:
Factory 7,000
Administrative offices 1,800
Total equipment depreciation costs:
Factory 7,500
Administrative offices 1,600
Indirect materials used 12,000
Job A was completed during September and Job B was started but not finished.
Required:
1. What is the total cost of Job A?
2. What is the total factory overhead applied during September?
3. What is the over-applied or under-applied overhead for September?
Answer:
1. $159,200
2. $50,050
3. $4,050 overapplied
Explanation:
1. Calculation for The total cost of Job A?
TOTAL COST OF JOB A
Direct materials requisitioned $ 65,000
Add Direct labor costs $ 35,700
(4,200 hours * $ 8.50 per hour)
Add Applied overheads $ 27,300
(4,200 hours * $ 6.50 per hour)
($617,500/95,000=$ 6.50 per hour)
Add Work in process $ 31,200
Total Cost of Job A $ 159,200
Therefore Total Cost of Job A will be $ 159,200
2. Calculation for What is the total factory overhead applied during September
First step is to calculate Predetermined Overhead Rate
Predetermined Overhead Rate=$617,500/95,000
Predetermined Overhead Rate=$ 6.50 per hour
Now let calculate the total factory overhead applied
Total factory overhead applied =(Job A 4,200+Job B 3,500) × ($6.50)
Total factory overhead applied =7,700×$6.50
Total factory overhead applied =$50,050
Therefore the total factory overhead applied will be $50,050
3. Calculation for What is the over-applied or under-applied overhead for September
First step is to calculate Actual factory overhead
Actual factory overhead :
Indirect labor 13,500
Supervisory salaries 6,000
Rental costs:Factory 7,000
Factory 7,500
Indirect materials used 12,000
Actual factory overhead =$46,000
Second step is to calculate Predetermined Overhead Rate
Predetermined Overhead Rate=$617,500/95,000
Predetermined Overhead Rate=$ 6.50 per hour
Now let calculate the over-applied or under-applied overhead for September
Over-applied or under-applied overhead =(Job A 4,200+Job B 3,500*$ 6.50 per )-$46,000
Over-applied or under-applied overhead =(7,700*$6.50)-$46,000
Over-applied or under-applied overhead =$50,050-$46,000
Over-applied or under-applied overhead =$4,050 overapplied
Therefore the over-applied for September is $4,050
Future Value of Annuity. Twins Jessica andJoshua, both 25, graduated from college andbegan working in the family restaurant business.The first year, Jessica began putting $2,000 peryear in an individual retirement account andcontributed to it for a total of ten years. After tenyears, she made no further contributions untilshe retired at age 65. Joshua did not start makingcontributions to his individual retirement accountuntil he was 35, but he continued making contributions of $2,000 each year until he retired at age 65.Assuming that both Jessica and Joshua receive10% interest per year, how much will Jessica haveat retirement
Answer:
Jessica will have $611,816.70 at retirement.
Explanation:
a) Data and Calculations:
Jessica:
Annual contribution in IRA for 10 years = $2,000
Retirement age = 65 years
Interest rate per year = 10%
Annuity value for investing $2,000 annually is $35,062.33
FV (Future Value) $35,062.33
PV (Present Value) $13,518.05
N (Number of Periods) 10.000
I/Y (Interest Rate) 10.000%
PMT (Periodic Payment) $2,000.00
Starting Investment $0.00
Total Principal $20,000.00
Total Interest $15,062.33
Amount received after investing $35,062.33 for 30 years.
Using an online finance calculator:
FV (Future Value) $611,816.70
PV (Present Value) $35,062.33
N (Number of Periods) 30.000
I/Y (Interest Rate) 10.000%
PMT (Periodic Payment) $0.00
Starting Investment $35,062.33
Total Principal $35,062.33
Total Interest $576,754.37
In 2018 the NFL football team, the Carolina Panthers, have an owner accused of sexual harassment. The fans’ demand for team jerseys has dropped with the scandal this year. At about the same time the cost to manufacture the jerseys in China increased by 20%. Describe what the new equilibrium price and quantity is like compared with the prior year’s Panthers’ jersey market before the scandal and increased manufacturing costs?
Question Completion with Options:
1. The demand curve shifted to the right, the supply curve shifted to the left, the equilibrium price and quantity increased from 2017
2. Supply and demand curves have shifted to the left and the equilibrium quantity has decreased from 2017 but it is impossible to determine the effect on the equilibrium price.
3. The demand curve shifted to the left, the supply curve shifted to the right, the equilibrium price and quantity increased from 2017 Od.
4. Supply and demand curves have shifted to the left and the equilibrium price and quantity for Panthers' jersey market has decreased since 2017.
Answer:
This is how the new equilibrium price and quantity are like compared with the prior year’s Panthers’ jersey market before the scandal and increased manufacturing costs:
2. Supply and demand curves have shifted to the left and the equilibrium quantity has decreased from 2017 but it is impossible to determine the effect on the equilibrium price.
Explanation:
The scenario presents a decrease in supply of the jersey caused by the increase in the cost of production by 20%. This is why supply shifted to the left. Based on this factor, price is supposed to increase but this does not reflect on the data because the scandal also dampened demand. No wonder demand also shifted to the left, resulting in further decrease. These two leftward shifts caused the equilibrium quantity to decrease. However, we cannot establish whether the price decreased as well because it is supposed to increase due to the increased production cost in China.
F brown lent us 4000 giving us the money by cheque
Answer:
See below
Explanation:
This transaction is affecting the bank's balance and F brown accounts. It is increasing the bank balance( asset account) by 4000 and increasing accounts payable/F brown ( liabilities account) by 4000.
An increase in assets is debited while an increase in liabilities is credited.
The journal entry will be
Bank A/c Dr. 4000
F brown A/c 4000