Answer:
Instructions are below.
Explanation:
Giving the following information:
Japan Company produces lamps that require 3 standard hours per unit at an hourly rate of $13.10 per hour.
Production of 6,100 units required 18,670 hours at an hourly rate of $12.70 per hour.
To calculate the direct labor efficiency and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (3*6,100 - 18,670)*13.1
Direct labor time (efficiency) variance= $4,847 unfavorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (13.1 - 12.7)*18,670
Direct labor rate variance= $7,468 favorable
Consider the following timeline detailing a stream of cash flows: The timeline starts at Date 0 and ends at Date 4. The cash flow on Date 0 is indicated by a question mark. On Date 1, the cash flow is 100 dollars. On Date 2, the cash flow is 100 dollars. On Date 3, the cash flow is 200 dollars. On Date 4, the cash flow is 200 dollars. If the current market rate of interest is 6%, then the present value (PV) of this stream of cash flows is closest to:
Answer:
$509.68
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
cash flow in year 1 = $100
cash flow in year 2 = $100
cash flow in year 3= $200
cash flow in year 4 = $200
I = 6%
PV = $509.68
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
A client believes that XYZZY stock has topped out in price and is ready for a steep drop. What recommendation would give the customer the smallest profit if this occurs
Answer: Buy XYZZ stock and sell an XYZZ call
Explanation:
Since the buyer seems convinced that XYZZ stock has bottomed its price, he should purchase the stock since it has gotten to its cheapest Point.
And since he believes that XYZZ's price would rebound soon, He should exercise a little patience and not sell at a call option for XYZZ. Because if he attempts to sell at a call option then his earnings becomes very limited, since the price set at the call option would be very low.
My best advice would be for him to hold on to XYZZ stock for a while and allow for its price to rebound.
A company is planning for its financing needs and uses the basic fixed-order quantity inventory model. Which of the following is the total cost (TC) of the inventory given an annual demand of 10,000, setup cost of $32, a holding cost per unit per year of $4, an EOQ of 400 units, and a cost per unit of inventory of $150?
(Show your Work)
A) $1,501,600
B) $1,501,600
C) $500,687
D) $500,687
E) None of the above
Answer:
$1,501,600
Explanation:
We have Q = 400
Average inventory = Q/ 2
= 400/2
= 200
Holding cost/year = $4
Annual holding cost = $800
Annual set up cost = 10,000/400
= 25
25 x 32 = 800
Demand x cost per unit
= 10000 x $150
= 1,500,000
Total cost TC = 1500000 + 800 + 800
= $1,501,600
A process capability index of 2 means that the upper and lower specification limits of the process are six standard deviations above and below the mean respectively. True or False? Eliminating variations is always possible. True or False?
Answer:
True
Explanation:
The formula to compute the process capability index is shown below:
Cpk = minimum [(Mean - LSL) ÷ 3σ , (USL – Mean) ÷ 3σ]
Now
If Cpk = 2,
so
(Mean - LSL) ÷ 3σ = 2 or (USL – Mean) ÷ 3σ = 2
Mean – LSL = 6σ or USL – Mean = 6σ
Therefore, if Cpk = 2, the process's USL or LSL is six standard deviations (6σ) up or down mean
Hence, the given statement is true
Solis Company uses the FIFO method to compute equivalent units. It has 4,000 units in beginning work in process, 20% complete as to conversion costs and 50% complete as to materials costs, 66,000 units started, and 6,000 units in ending work in process, 30% complete as to conversion costs, and 80% complete as to materials cost. How much are the equivalent units for materials under the FIFO method
Answer:
The equivalent units for materials under the FIFO method are 68,800 units
Explanation:
Equivalent units is a measurement of number of units completed in terms of percentage of inputs of production in output inventory.
Calculation of Equivalent Units under FIFO method.
To finish Opening work in process ( 4,000 units × 50%) = 2,000
Started and Completed units (66,000 - 4,000) × 100% = 62,000
Closing Work In Process (6,000 × 80%) = 4,800
Equivalent units of Production = 68,800
Conclusion :
The equivalent units for materials under the FIFO method are 68,800 units.
The following is an example of the reasoning of a rule utilitarian:
"If the practice of stealing is bad, then one ought not to steal now, even if in this case to steal would actually bring about better consequences."
a. True
b. False
Answer:
The correct answer is the option B: False.
Explanation:
To begin with, the concept of "Rule Utilitarism" refers to a type of utilitarism in where the main characteristic is in the belief that an action is right when it conforms to a rule that leads to the greatest good. Therefore that under this type of ideology, the utilitarians believe that an action would be right when the amount of good that it brings is greater than the action itself. And that is why that for an utilitarian to steal would not be wrong in the case that a greater good would come afterwards for the majority, so that means, better consequences.
Waterway Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $346,775 for the year, and machine usage is estimated at 126,100 hours. For the year, $369,500 of overhead costs are incurred and 130,800 hours are used.
Manufacturing overhead rate $ per machine hour
Manufacturing Overhead $
Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.
Answer:
Waterway Company
Journal entry:
Debit Cost of goods sold $9,800
Credit Manufacturing overhead expense $9,800
To assign the underapplied overhead to cost of goods sold.
Explanation:
a) Data and calculations:
Estimated overhead costs = $346,775
Estimated machine usage = 126,100 hours
Overhead rate applied = $346,775/126,100 = $2.75 per hour
Actual overhead costs = $369,500
Actual machine usage = 130,800 hours
Actual overhead rate = $369,500/130,800 = $2.82
Overhead was underapplied by the difference between actual overhead costs applied and actual overhead.
Actual overhead applied = $2.75 x 130,800 = $359,700
Actual overhead costs = $369,500
Difference (underapplied) is $9,800
When the overhead is underapplied or overapplied because of the rate used based on actual usage, the underapplied overhead is a debit or credit to the cost of goods sold respectively. While underapplied overhead increases the cost of goods sold, overapplied reduces the cost of goods sold by the amount of under- or over-application.
Western Electric has 31,000 shares of common stock outstanding at a price per share of $77 and a rate of return of 13.10 percent. The firm has 7,200 shares of 7.60 percent preferred stock outstanding at a price of $94.00 per share. The preferred stock has a par value of $100. The outstanding debt has a total face value of $398,000 and currently sells for 110 percent of face. The yield to maturity on the debt is 8.02 percent. What is the firm's weighted average cost of capital if the tax rate is 39 percent
Answer:
Weighted average cost of capital = 11.10%
Explanation:
Market value of common stock = $31,000 * 77 = $2,387,000
Market value of preferred shares = $7,200 * 94 = 676,800
Market value of debt = $398,000 * 110% = 437,800
Total market value = Market value of common stock + Market value of preferred shares + Market value of debt
= 2,387,000 + 676,800 + 437,800
= 3,501,600
Weight of common stock = Market value of common stock / Total market value
= $2,387,000 / $3,501,600
= 0.6817
Weight of debt = Market value of preferred shares / Total market value
=437,800 / 3,501,600
= 0.1250
Weight of preferred stock = Market value of debt / Total market value
= 676,800 / 3,501,600
= 0.1933
Preferred dividend = 7.6% of 100 = 7.6
Cost of preferred stock = (Preferred dividend / price) * 100
Cost of preferred stock = (7.6 / 94) * 100
Cost of preferred stock = 8.0851%
Weighted average cost of capital = (Weight of equity *cost of equity) + (Weight of preferred stock * cost of preferred stock) + (Weight of debt * after tax cost of deb t)
Weighted average cost of capital = (0.6817 * 13.10%) + (0.1933 * 0.080851) + (0.1250 *0.0802*(1 - 0.39)
Weighted average cost of capital = 0.089303 + 0.015628 + 0.006115
Weighted average cost of capital = 0.1110
Weighted average cost of capital = 11.10%
What is the market value of a stock that paid a dividend of $3.80 last year if the dividend is increasing at 10% annually and the required rate of return on the stock is 20%
Answer:
The market value of the stock is $41.8
Explanation:
Div 1 = Div 0 (1+r)
=3.80 (1+0.10)
=3.80(1.10)
=4.18
Market value of the stock= Dividend 1 / (r-g)
= 4.18 / 0.2 - 0.1
= 4.18 / 0.1
= $41.8
The market value of the stock is $41.8
An office building owned by Milo was destroyed by Hurricane Mel on September 25, Year 4. On October 2, Year 4, the President of the United States declared the area where the office building was located a federal disaster area. Milo received settlement of his insurance claim for the destruction of his building on January 2, Year 5. In order to qualify for nonrecognition of gain on this involuntary conversion, what is the last date for Milo to acquire qualified replacement property
Answer:
December 31, year 9
Explanation:
Here, we want to state that date that is possible for Milo to acquire qualified replacement property.
In order to avoid being taxed on a gain resulting from an involuntary conversion, the property subject to the conversion must be replaced within a specified time, measured from the end of the calendar year in which the proceeds are received.
Generally, the period is 2 years, but it is 3 years when the involuntary conversion results from government condemnation or eminent domain and is extended to 4 years when the loss is in connection with a declared federal disaster area.
We are told from the question that Milo received the recovery on January 2, Year 5, the property would have to be replaced within 4 years from the end of Year 5 or by December 31, Year 9
Louie Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $112,000; benefits paid to retirees, $10,000; interest cost, $7,500. The discount rate applied by the actuary was 10%. What was the service cost for the year
Answer: $39,500
Explanation:
Service Cost for the year = Ending PBO - Opening PBO - Interest cost + Benefits paid
Opening PBO
Opening PBO is the amount that the interest was charged on.
Discount rate of 10% came out to be $7,500.
The opening balance = 7,500/10%
= $75,000
Service Cost = 112,000 - 75,000 - 7,500 + 10,000
Service Cost for the year = $39,500
CoolBreeze Manufacturing produces a single product, a tabletop fan. They reported the following information from their operations last period:___________.
Cost of Direct Materials used in production: $50,000
Cost of Direct Labor wages: $37,500
Variable Manufacturing Overhead: $25,000
Fixed Manufacturing Overhead: $125,000
Total units produced: 10,000
Under absorption costing what was the per-unit cost of the units produced?
a. None of the above
b. $23.75
c. $12.50
d. $11.25
e. $8.75
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Cost of Direct Materials used in production: $50,000
Cost of Direct Labor wages: $37,500
Variable Manufacturing Overhead: $25,000
Fixed Manufacturing Overhead: $125,000
Total units produced: 10,000
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
First, we need to calculate the total cost:
Total cost= 50,000 + 37,500 + 25,000 + 125,000
Total cost= $237,500
Now, the unitary cost:
Unitary cost= 237,500/10,000= $23.75
Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,500 monthly. The contract currently sells for $115,000. What is the monthly return on this investment vehicle
Answer:
1.3%
Explanation:
To find the monthly return , the formula is =
Interest payment/ present value
$15,000 / $115,000 = 0.013043 = 1.3%
I hope my answer helps you
Major Manuscripts, Inc.
2012 Income Statement
Net sales
$
7,800
Cost of goods sold
6,865
Depreciation
210
Earnings before interest and taxes
$
725
Interest paid
31
Taxable Income
$
694
Taxes
284
Net income
$
410
Dividends
$
187
Major Manuscripts, Inc.
2012 Balance Sheet
2012
2012
Cash
$
2,400
Accounts payable
$
1,550
Accounts rec.
880
Long-term debt
300
Inventory
2,700
Common stock
$
3,100
Total
$
5,980
Retained earnings
4,430
Net fixed assets
3,400
Total assets
$
9,380
Total liabilities & equity
$
9,380
Major Manuscripts, Inc., is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio will remain constant. In 2013, no new equity will be raised and sales are projected to increase by 10 percent. Construct the pro formas for 2013 and answer the following questions (show your work!).
Projected total assets= $______
Projected retained earnings= $______
Additional new debt required= $______
Answer: Projected total assets = $10,318
Projected retained earnings = $4,675.30
Additional new debt required = $537.70
Explanation:
external financing needed ( EFN )= [(total assets/total sales) x ( sales )] - [(total current liabilities/total sales) x ( sales )] - [profit margin x forecasted sales in $ x (1 - dividend payout ratio)]
total assets = $9,380,
projected total assets = $9,380 x 1.1 = $10,318
total sales = $7,800
sales = $780
current liabilities = $1,550
profit margin = net income / sales
= $410 / $7,800
= 0.052564
forecasted sales = $7,800 x 1.1 = $8,580
dividends payout ratio = dividends / net income
= $187 / $410
= 0.4561
Therefore:
EFN = [($9,380/$7,800) x ($780)] - [($1,550/$7,800) x ($780)] - [0.052564 x $8,580 x (1 - 0.4561)]
EFN = $938 - $155 - $245.30
EFN = $537.70
projected retained earnings = current retained earnings - projected net income - projected dividends
= $4,430 + $451 - $205.70
= $4,675.30
The _____ technique consists of having multiple raters above, equal to, and below the manager providing input into a manager's evaluation.
Answer:
360-degree appraisal
Explanation:
The term being described by the question is known in business as a 360-degree appraisal. During this appraisal method, a staff member's work during a specific time interval is discussed and critiqued by various other employees as well as the supervisors, unlike other methods that focus only on the point of view of the employees' supervisors and bosses.
Understanding Persuasion in a Social and Mobile Age
Contemporary businesses have embraced leaner corporate hierarchies, simultaneously relying on teams, eliminating division walls, and blurring the lines of authority. As teams and managers are abandoning the traditional command structure, excellent persuasive skills are becoming ever more important at work.
Consumers must be alert to_______ that influence behaviors.
a. persuasive practices
b. standard practices
c. unethical practices
d. routine practices
The most striking developmesection, are less than three decades old.
How has persuasion changed .
A. Persuasion is simple and more personal
B. Persuasive techniques are bold and blunt
C. Persuasive messages spread at warp speed
D. All businesses are in the persuasion business
E. The volume and reach of persuasive messages have exploded
Answer: 1. a. persuasive practices
2. A. Persuasion is simple and more personal
C. Persuasive messages spread at warp speed
D. All businesses are in the persuasion business
E. The volume and reach of persuasive messages have exploded
Explanation:
1. Being able to persuade your consumers to buy the company products leads to better sales and better bottomlines for the company. This is why employees try their best to be persuasive to consumers some times for products that won't even benefit them. This will put the employees in a better position at work. Consumers therefore need to be wary of these persuasive skills to be able to stand their ground should they not want a product.
2. Persuasion in this day and age is employing tried and tested psychological methods to achieve better results. One of these is to be simpler and personal. By relating to the actual person involved, they are able to build a relationship and convince people faster.
With the scale and magnitude of Information and Communication Technology in the world right now, persuasive messages are easier to spread. They are spread so fast to multiple geographical locations thus increasing their reach as well.
It would also seem as though these days that all businesses are in the persuasion business. Whether it's consumers, suppliers, the Government etc, all businesses are engaged in trying to persuade entities in such a way that their interests are pushed forward.
An eight-year bond has a yield of 10% and a duration of 7.208 years. If the bond's yield increases by 50 basis points, what is the percentage change in the bond's price as predicted by the duration formula
Answer:
3.28%
Explanation:
For the computation of percentage change in the bond's price first, we need to find out the modified duration which is shown below:-
Modified duration = duration ÷ (1+yield)
= 7.208 ÷ (1 + 10%)
= 6.553
Percentage change in price = modified duration × change in yield
= 6.553 × 0.5%
= 3.28%
Therefore for computing the percentage change in the bond's price we simply applied the above formula.
Peroni Corporation sold a parcel of land valued at $300,000. Its basis in the land was $250,000. For the land, Peroni received $75,000 in cash in the current year and a note providing Peroni with $225,000 in the subsequent year. What is Peroni's recognized gain in the current and subsequent year, respectively
Answer:
Peroni's recognized gain in the current and subsequent year is $12,502 and $37,507
Explanation:
In order to calculate Peroni's recognized gain in the current and subsequent year we would have to calculate first the Gross profit on sale with the following formula:
Gross profit on sale=(parcel of land sold-land basis)/parcel of land sold
Gross profit on sale=($300,000-$250,000)/$300,000
Gross profit on sale=16.67%
Hence, Peroni's recognized gain in the current and subsequent year would be as follows:
current year=amount received in cash*Gross profit on sale
current year=$75,000*16.67%
current year=$12,502
subsequent year=$225,000*16.67%
subsequent year=$37,507
Peroni's recognized gain in the current and subsequent year is $12,502 and $37,507
If the supply decreases in the market for sweet rolls, what do you expect to happen to equilibrium quantity (Qe) and equilibrium price (Pe)?
a. Qe decreases; Pe increases.
b. Qe decreases: Pe decreases
c. Qe increases; Pe decreases
d. Qe increases; Pe increases
Answer:
The correct answer is the option A: Qe decreases; Pe increases.
Explanation:
To begin with, the situation in where the supply of a certain product decreases due to the decrease in its production will implicate that the equilibrium in the market will be changed, so what will happen is that the the supply curve will shift to the left and the price will increase because now there is less of the good in the market and its value is higher because of that and with that the quantity will decrease as well because the price has risen.
Which is the correct sequence for recording transactions and preparing financial statements?
a. Ledger, trial balance, journal, financial statements
b. Journal, ledger, trial balance, financial statements
c. Financial statements, trial balance, ledger, journal
d. Ledger, journal, trial balance, financial statements
Answer:
The answer is B.
Explanation:
The first is the journal. A journal entry may be a summary of the debits and credits of the transaction entry to the journal.
Followed by a ledger which may be a book containing accounts during which the classified and summarized information from the journals is posted as debits and credits.
Trial balance which is that the listing of all accounts (asset, liability, equity, revenue, expense) with the ending account balance or or its a report that lists the balances of all book accounts of a corporation at a specific point in time.
And lastly the financial statements. they're written records of a business's financial situation
The IRS reports that the mean refund for a particular group of taxpayers was $1,600. The distribution of tax refunds follows a normal distribution with a standard deviation of $850.
Required:
a. What percentage of the refunds are between $1,600 and $2,000?
b. What percentage of the refunds are between $900 and $2,000?
c. What percentage of the refunds are between $1,800 and $2,000?
d. Ninety-five percent of the refunds are for less than what amount?
Answer:
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Explanation:
?nuaity Nopla?¿
Company X got a loan of e4,000,000. The company agreed repay this loan as follows: a first payment of e2,400,000 one year from now and a second payment of 2,200,000 within two years. The tax rate is 25%. Determine the cost of this loan
Answer:
The cost of loan is $600000.
Explanation:
The loan amount = 4000000
The cost of loan refers to the interest rates and other charges that borrower pays. So in the given question first installment is 2400000 in the first year and second installment is 2200000. Here, lets assume any amount other then actual amount of loan amount is the amount spent on loan.
So, the cost of loan = (2400000 + 2200000) – 4000000 = $600000
Property owners on one street have petitioned the city to install paved alleys behind their homes. If Marcus has a rectangular lot that measures 90 feet by 140 feet, on what amount would he pay the special assessment?
Answer: 90 feet
Explanation:
From the question, we are told that Property owners on one street have petitioned the city to install paved alleys behind their homes and that Marcus has a rectangular lot that measures 90 feet by 140 feet.
He would pay the special assessment based on 90 feet which is the width of the rectangular lot.
On March 12, Medical Waste Services provides services on account to Grace Hospital for $10,900, terms 3/10, n/30. Grace pays for those services on March 20.
Required:
For Medical Waste Services, record the service on account on March 12 and the collection of cash on March 20.
Answer:
March 12
Dr Accounts Receivable 10,900
Cr Service Revenue 10,900
March 20
Dr Cash 10,673
Dr Sales Discounts 327
Cr Accounts Receivable 10,900
Explanation:
Preparation of the Journal entry For Medical Waste Services,on March 12 and the collection of cash on March 20.
Journal entry to record the service on account on March 12
Since we were told that Medical Waste Services provides services on account to Grace Hospital for $10,900 on March 12, this means the transaction will be recorded as:
March 12
Dr Accounts Receivable 10,900
Cr Service Revenue 10,900
Journal entry to record the collection of cash on March 20.
Since we were told that Grace pays for those services on March 20 for the terms of 3/10, n/30 this means that the transaction will be recorded as:
March 20
Dr Cash 10,673
(10,900-327)
Dr Sales Discounts 327
(10,900×3%)
Cr Accounts Receivable 10,900
The US dollar/euro exchange rate is $1.6/€ while the Canadian dollar/US dollar exchange rate is C$1.25/$. You also observe that the actual euro/Canadian dollar cross exchange rate is €.65/C$. Find the triangular arbitrage profit (in USD) available to someone that has access to $1,000,000. Round intermediate steps to four decimals and your final answer to two decimals. Do not use the dollar sign when entering your answer.
Answer:
$300,000
Explanation:
I have $1,000,000 which I can use to buy C$1,250,000 (C$ = $1,000,000 x 1.25). Then I would use my C$1,250,000 to buy €812,500 (€ = C$1,250,000 x 0.65). Finally, if you use your €812,500 you can purchase $1,300,000 ($ = €812,500 x 1.6).
We started with $1,000,000 and ended up with $1,300,000 by purchasing Canadian dollars first and then Euros.
Taco Loco is unsure whether the amount of beef that their computer thinks is in inventory is correct. What is the range in values for beef inventory that would not affect the optimal product mix? A) 26 to 38.22 pounds B) 27.55 to 28.45 pounds C) 17.78 to 30 pounds D) 12.22 to 28 pounds
Answer:
C: 17.78-30 pounds
Below are several amounts reported at the end of the year. Currency located at the company $ 675 Supplies 1,700 Short-term investments that mature within three months 1,575 Accounts receivable 2,000 Balance in savings account 7,000 Checks received from customers but not yet deposited 275 Prepaid rent 1,075 Coins located at the company 100 Equipment 7,900 Balance in checking account 4,700 Required: Calculate the amount of cash to report in the balance sheet.
Answer:
The total amount of cash to report in the balance sheet is $14,325
Explanation:
The amount of cash to report in the balance sheet is computed below
Items Amount
Currency located at the company $675
Short-term investments that $1,575
mature within three months
Balance in savings account $7,000
Checks received from customers $275
but not yet deposited
Coins located at the company $100
Balance in checking account $4,700
Total Cash $14,325
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.
April 30 May 31
Inventories
Raw materials $ 43,000 $ 52,000
Work in process 10,200 21,300
Finished goods 63,000 35,600
Activities and information for May
Raw materials purchases (paid with cash) 210,000
Factory payroll (paid with cash) 345,000
Factory overhead
Indirect materials 15,000
Indirect labor 80,000
Other overhead costs 120,000
Sales (received in cash) 1,400,000
Predetermined overhead rate based on direct labor cost 70 %
rev: 06_09_2015_QC_CS-17114
Exercise 15-8 Journal entries for materials LO P1
1. Raw materials purchases for cash.
2. Direct materials usage.
3. Indirect materials usage.
Exercise 15-9 Journal entries for labor LO P2
1. Direct labor usage.
2. Indirect labor usage.
3. Total payroll paid in cash.
Prepare journal entries for the above transactions for the month of May.
Transaction General Journal Debit Credit
1
Answer:
Exercise 15-8
1. Raw materials purchases for cash.
Raw Materials $210,000 (debit)
Cash $210,000 (credit)
2. Direct materials usage.
Work In Process : Indirect Materials $186,000 (debit)
Raw Materials $186,000 (credit)
3. Indirect materials usage.
Work In Process : Direct Materials $15,000 (debit)
Raw Materials $15,000 (credit)
Exercise 15-9
1. Direct labor usage.
Work In Process : Direct Labor $265,000 (debit)
Salaries and Wages Payable $265,000 (credit)
2. Indirect labor usage.
Work In Process : Indirect Labor $80,000 (debit)
Salaries and Wages Payable $80,000 (credit)
3. Total payroll paid in cash.
Salaries and Wages Payable : $345,000 (debit)
Cash $345,000 (credit)
Explanation:
Raw Materials - T Account (To determine the Materials Transferred to Production)
Debit
Opening Balance $ 43,000
Add Purchases $210,000
Totals $253,000
Credit
Closing Balance $ 52,000
Transferred to Production (Balancing figure) $201,000
Totals $253,000
Thus, Direct Materials = $201,000 - 15,000 = $186,000
Answer:
Explanation:
Raw materials purchases for cash.
Direct materials usage.
Indirect materials usage.
Prepare journal entries for the above transactions for the month of May.
DEBIT CREDIT
A 1 Raw materials inventory 2 10,000
Cash 210,000
B 2 Work in process inventory 186,000
Raw materials inventory 186,000
C 3 Factory overhead 15,000
Raw materials inventory 15,000
Nieman Company purchased merchandise on account from Springhill Company for $5,400, terms 1/10, n/30. Nieman returned merchandise with an invoice amount of $900 and received full credit. a. If Nieman Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar.
Answer:
The amount of cash required for the payment is $4,455.
Explanation:
When Nieman Company purchased merchandise the entries will be :
Merchandise $5,400 (debit)
Account Payable : Springhill Company $5,400 (credit)
When Nieman Company returned some merchandise and received full credit, the entries will be:
Account Payable : Springhill Company $900 (debit)
Merchandise $900 (credit)
When Nieman Company finally pays the invoice within the discount period.
1. They are granted a cash discount of 1%
2. Pay 99% of amount owing less the credit previously granted on returned merchandise.
Entries will be :
Account Payable : Springhill Company $4,500 (debit)
Discount received $45 (credit)
Cash $4,455 (credit)
Conclusion :
The amount of cash required for the payment is $4,455.
Determine which type of merger has occurred for this scenario. GrillerTech manufactures propane grills for cooking. It wants to form a merger with Tinseltech, a party favor manufacturing company. This would be a __________ merger.
Answer:
Vertical merger
Explanation:
A vertical merger occurs between firms in the same industry but they are usually in different stages of the supply chain.
In this case, Tinseltech wants to merge with a company that produces raw materials needed by Tinseltech
I hope my answer helps you
Answer:
vertical
Explanation:
A vertical merger is when two or more companies that are part of the same industry but that have different products in the supply chain merge. According to that, the answer is that this would be a vertical merger because the two companies have products that are used in the same industry and the merge allows them to increase the synergies and have control of the supply chain.