Answer: 12%
Explanation:
A coupon payment on a bond is simply the annual interest payment which the bondholder will get from the bond's issue date till the bond matures. It should be noted that coupons are described in their coupon rate, and this is calculated when one adds the sum of the coupons that are paid per year and then divide it by the face value to f the bond.
Im this case, we are told that Kaiser Industries has bonds on the market making annual payments, with 14 years to maturity, and selling for $1,382.01 and that at this price, the bonds yield 7.5 percent.
Using Excel, the coupon payment will be $120. The coupon rate will now be:
= Coupon payment/Face value
= 120/1000
= 0.12
= 12%
Therefore, the coupon rate is 12%
Hazel owns an event planning company that specializes in very high-end events. Several years ago, Hazel purchased a magnificent chocolate fountain for $3,000 and has since taken $1,200 in depreciation deductions on the fountain. Hazel is now ready to replace the fountain with tools for creating ice sculptures, but she is not sure what the tax consequences of selling the fountain will be. Which of the following statements is true regarding the tax consequences of selling the fountain?A. If Hazel sells the chocolate fountain for $1,800, she will have a $1,200 ordinary loss.B. If Hazel sells the chocolate fountain for $1,700, she will have a $100 capital loss.C. If Hazel sells the chocolate fountain for $2,000, she will have an ordinary gain of $200 and no capital gain.D. If Hazel sells the choclate fountain for $3,300, she will have a $1,500 capital gain.
Answer:
D. If Hazel sells the chocolate fountain for $3,300, she will have a $1,500 capital gain.
Explanation:
I´m assuming that Hazel is a person that owns this event planning company.
The current book value of the chocolate fountain = purchase cost - accumulated depreciation = $3,000 - $1,200 = $1,800
If the chocolate fountain (or any asset) is sold at a higher price than book value, then a capital gain must be recognized. If the chocolate fountain is sold at a lower price than book value, then a capital loss should be recognized.
$3,300 (selling price) - $1,800 (book value) = $1,500 capital gain
The study of economic growth concentrates on understanding the determinants of the: Group of answer choices change in per capita GDP over time.
Answer:
the long term change in per capita GDP
Explanation:
please find attached the full question.
economic growth is the persistent rise in the amount of goods and services produced by an economy, it is the increase in the level of wealth of an economy overtime.
Per capita GDP = GDP / population
it is the GDP per person.
by understanding the factors that lead to long term changes in per capita GDP, one can determine what causes economic growth
Mcmurtry Corporation sells a product for $170 per unit. The product's current sales are 10,000 units and its break-even sales are 8,100 units. The margin of safety as a percentage of sales is closest to:
Answer:
19%
Explanation:
Margin of safety = (Current sales - Break even sales) / Current sales * 100
= (10,000 - 8,100) /10,000 *100
= 1,900 / 10,000 * 100
= 19%
Eight years ago you bought your house for $115,000. You just sold it for $267,000. What was the average annual appreciation of your home
Answer:
$19,000
Explanation:
appreciation is the difference between the price at which the house was bought and the price at which the house was sold
$267,000 - $115,000 = $152,000.
Average annual appreciation = $152,000 / 8 =$19,000
Answer:
(C) y = 115,000(1.05)x
Explanation:
i just took the test
Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $28,861 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Deposit in transit 3,550 Outstanding checks 1,404 Additionally, a $48 check correctly written and recorded by the company was recorded by the bank as a $84 deduction. The adjusted cash balance per the bank records should be:
Answer:
$31,043
Explanation:
The computation of adjusted cash balance is shown below:-
Adjusted cash balance = Balance as per bank statement + Deposits in transit + Check wrongly recorded - Outstanding checks
= $28,861 + $3,550 + ($84 - $48) - $1,404
= $32,447 - $1,404
= $31,043
Therefore for computing the adjusted cash balance we simply applied the above formula.
g on january 1 playa company acquires 90 percent ownership in seaside corporation for 180,000 the fair value of noncontrolling interest what will be the amount of consolidated net assets that would be reported
The question is incomplete, the complete question is:
On January 1, Playa Company acquires 90 percent ownership in Seaside Corporation for $180,000. The fair value of the noncontrolling interest at that time is determined to be $20,000. Seaside reports net assets with a book value of $200,000 and fair value of $200,000. Playa Company reports net assets with a book value of $480,000 and a fair value of $525,000 at that time, excluding its investment in Seaside. What will be the amount of consolidated net assets that would be reported immediately after the combination?
Answer:
$680,000
Explanation:
Since Playa Company owns 90% of Seaside Corporation, it is considered Seaside's parent company and it must include all of Seaside's assets when it presents its consolidated balance sheet.
Total net assets reported = $480,000 (Playa's net assets at book value) + $200,000 (Seaside's net assets) = $680,000
YellowCard Company manufactures accessories for iPods. It had the following selected transactions during 2017. (Note: For any part of this problem requiring an interest or discount rate, use 10%.)
1. YellowCard provides a 2-year warranty on its docking stations, which it began selling in 2017. During 2017, YellowCard spent $6,000 servicing warranty claims. At year-end, YellowCard estimates that an additional $45,000 will be spent in the future to service warranties related to 2017 sales.
2. YellowCard has a $200,000 loan outstanding from First Trust Corp. The loan is set to mature on February 28, 2018. For several years, First Trust has agreed to extend the loan, as long as YellowCard makes all its quarterly interest payments (interest is due on the last days of each February, May, August, and November) and maintains an acid-test ratio (also called "quick ratio") of at least 1.25. First Trust has provided YellowCard a "commitment letter" indicating that First Trust will extend the loan another 12 months, providing YellowCard makes the interest payment due on March 31.
3. During 2016, YellowCard constructed a small manufacturing facility specifically to manufacture one particular accessory. YellowCard paid the construction contractor $5,000,000 cash (which was the total contract price) and placed the facility into service on January 1, 2017. Because of technological change, YellowCard anticipates that the manufacturing facility will be useful for no more than 10 years. The local government where the facility is located required that, at the end of the 10-year period, YellowCard remediate the facility so that it can be used as a community center. YellowCard estimates the cost of remediation to be $500,000.
Prepare all 2017 journal entries relating to YellowCard’s warranties.
Prepare all 2017 journal entries relating to YellowCard’s loan from First Trust Corp
Prepare all 2017 journal entries relating to the new manufacturing facility YellowCard opened on January 1, 2017
Answer:
warrant expense 51,000 debit
cash 6,000 credit
warranty liability 45,000 credit
--to record warrant-related accounts--
interest payable 16,667 debit
interest expense 3,333 debit
cash 20,000 credit
--to record interest expense for the loan and installment--
Manufacturing Facilities 5,192,772 debit
Cash 5,000,000 credit
Restoration Liability 192,772 credit
-- to record the payment to contractor--
Explanation:
Warranty: the additional expected expense are considered warranty laibility
Loan: we previously recorded accrued interest from March 1st to Dec 31th
That is: 200,000 x 10% x 10/12 months = 16,667 payable
At February 28th we recognize the last two month of interest
200,000 x 10% x 2/12 months = 3,333 expense
in total we have 16,667 + 3,333 = 20,000 cash outlay
Facility: the asset should add to all the cost necessary to acquire it:
As the conversion into community center is mandatory it is part of the cost:
present value of the 500,000 in ten years:
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity $500,000.00
time 10.00
rate 0.10000
[tex]\frac{500000}{(1 + 0.1)^{10} } = PV[/tex]
PV 192,771.6447
Total cost:
5,000,000 cashg + 192,772 liability = 5,192,772
A country's travel exports (good and services that international travelers buy while visiting the country) are increasing exponentially. The value of such exports, t years after 2011, can be approximated by V(t)equals111.83 e Superscript 0.088 t, where V is in billions of dollars. a) Estimate the value of the country's travel exports in 2018 and 2020. b) Estimate the growth rate of the country's travel exports in 2018 and 2020.
Answer:
(a)In 2018, V(t)=$207.05 billion
In 2020, V(t)=$246.90 billion
(b)The export growth rate in 2018 is $18.22 billion per year
The export growth rate in 2020is $21.73 billion per year
Explanation:
The value of exports, t years after 2011 can be approximated by:
[tex]V(t)=111.83 e^{0.088 t}[/tex]
(a)We want to estimate the value of the country's travel exports in 2018 and 2020.
Now, 2018-2011=7 years
Therefore, in 2018
[tex]V(7)=111.83 e^{0.088 *7}\\=\$207.05$ billion[/tex]
Now, 2020-2011=9 years
Similarly, in 2020
[tex]V(9)=111.83 e^{0.088 *9}\\=\$246.90$ billion[/tex]
(b)Growth rate
If [tex]V(t)=111.83 e^{0.088 t}[/tex], then:
[tex]V'(t)=111.83(0.088) e^{0.088 t}\\V'(t)=9.84104 e^{0.088 t}[/tex]
Growth rate in 2018 (at t=7)
[tex]V'(7)=9.84104 e^{0.088*7}\\=\$18.22$ billion per year[/tex]
Growth rate in 2020 (at t=9)
[tex]V'(9)=9.84104 e^{0.088*9}\\=\$21.73$ billion per year[/tex]
A job cost sheet of Fugate Company is given below.
Job Cost Sheet
Date Direct Materials Direct Labor Manufacturing Overhead
5/10 1,330
12 1,120
15 550 825
22 480 720
24 1,000
27 1,870
31 670 1,005
Cost of completed job:
Direct materials.
Direct labor.
Manufacturing Overhead.
Total cost.
Unit cost.
Requried:
a. What is the predetemined manufacturing overhead rate?
b. What are the total cost and the unit cost of the completed job?
c. Prepare the entry to record the completion of the job.
Answer:
A.Direct material 5,320
Direct labour 1,700
Manufacturing overhead 2,550
B. Total cost 9,570
Unit cost 6.38
C. Dr Finished goods inventory account 9,570
Cr Work in Process inventory account 9,570
Explanation:
A. Calculation for the predetemined manufacturing overhead rate
Date Direct material Direct Labour Manufacturing Overhead
5/10 1,330
12 1,120
15 550 825 825
22 480 720 720
24 1,000
27 1,870
31 670 1,005
Total 5,320 1,700 2,550
B. Calculation for the total cost and the unit cost of the completed job
Cost of Completed job :
Direct material 5,320
Direct Labour 1,700
Manufacturing Overhead 2,550
Total Cost 9,570
Unit Cost = Total Cost / Number of units
Unit cost = 9,570/1,500
Unit cost = 6.38
C.Therefore when a job is fully completed, thebFinished goods inventory account will be
debited with the correspondent credit of Work in progress account.
Journal entry
May.31
Dr Finished goods inventory account 9,570
Cr Work in Process inventory account 9,570
After posting the transactions from Part A, you should have the following account balances. Use this information to prepare either a multiple step income statement or a contribution format income statement.
Account Name Debit Credit
Raw Materials $33,400
Cash $133,100
Work in Process $391,800
Salaries Expense $47,000
Rent Expense $5,100
Advertising Expense $12,000
Sales Commissions Expense $26,000
Accumulated Depreciation $21,000
Depreciation Expense $5,000
Cost of Goods Sold $203,600
Sales Revenue $51 9,000
Answer: Its B
Explanation:
Watson Manufacturing Company employs a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of operations:
1. Direct materials requisitioned during the month:
Job 101………………………………..$20,000
Job 102…………………………………16,000
Job 103…………………………………24,000
…………………………………………$60,000
2. Direct labor incurred and charged to jobs during the month was:
Job 101…………………………………$30,000
Job 102…………………………………..28,000
Job 103…………………………………..20,000
…………………………………………..$78,000
3. Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on 75% of direct labor costs.
4. Actual manufacturing overhead costs incurred during the month amounted to $66,000.
5. Job 101 consisting of 1,000 units and Job 103 consisting of 200 units were completed during the month.
Prepare journal entries to record the above transactions.
Instructions
(a) Prepare journal entries to record the above transactions.
(b) Answer the following:
1. How much manufacturing overhead was applied to Job 103 during the month?
2. Compute the unit cost of Jobs 101 and 103.
3. What is the balance in Work In Process Inventory at the end of the month?
4. Determine if manufacturing overhead was under- or overapplied during the month. How much?
Answer:
Watson Manufacturing Company
a) Journal Entries:
Description Debit Credit
Job 101 $20,000
Job 102 16,000
Job 103 24,000
Direct materials $60,000
To record direct materials requisitioned during the month.
Job 101 $30,000
Job 102 28,000
Job 103 20,000
Direct labor $78,000
To record direct labor incurred and charged to jobs during the month.
Job 101 $22,500
Job 102 21,000
Job 103 15,000
Manufacturing Overhead $58,500
To record manufacturing overhead costs applied
Manufacturing Overhead $66,000
Cash Account $66,000
To record the payment for manufacturing overhead.
Finished Goods Inventory $131,500
Job 101 $72,500
Job 103 $59,000
To transfer Jobs 101 & 103 to finished goods inventory.
b.1) Manufacturing overhead applied to Job 103 during the month is $15,000.
b.2) Computation of unit cost of Jobs 101 and 103:
Jobs 101 Job 103
Direct materials $20,000 $24,000
Direct labor 30,000 20,000
Manufacturing overhead applied 22,500 15,000
Total production costs $72,500 $59,000
Units produced 1,000 200
Unit costs $72.50 $295
b.3) Work in Process Inventory:
Job 102:
Direct materials $`16,000
Direct labor 28,000
Overhead applied 21,000
Total $65,000
4. Under- or overapplication of Manufacturing Overhead:
Actual overhead expense = $66,000
Applied overhead costs = 58,500
Underapplied by $7,500
Explanation:
a) We used journal entries to record the transactions for the jobs as they occurred during the month. The entries showed which account was to be debited and which was to be credited, as every transaction affects the two sides of the accounting equation. One account gave value and the other account received the value. It is from the journal entries that the postings to the ledger accounts would be carried out.
b) In Watson Manufacturing Company's job costing system, each completed job is transferred out to the finished goods inventory account for sale.
c) Sometimes, the manufacturing overhead is underapplied or overapplied as Watson Manufacturing Company uses a predetermined rate of 75% of direct labor to apply overheads to the jobs. It is underapplied when the actual overhead expense is higher than the applied costs, and vice versa.
d) The unit cost of Jobs 101 and 103 is determined by summing the direct material, labor, and overhead applied costs and then dividing by the number of units produced.
e) Job 102 was not completed during the period, and its costs are transferred to the Work In Process Inventory.
The weather report says that a devastating and unexpected freeze is expected to hit Florida tonight during the peak of the citrus harvest. In an efficient market, one would expect the price of Florida Orange's stock to Group of answer choices increase immediately. drop immediately. gradually increase for the next several weeks. unable to determine. gradually decline for the next several weeks.
Answer:
A. drop immediately.
Explanation:
In an efficient market, assets within it are expected to accurately represent all of the knowledge that affects that asset. The market is very sensitive to and changes accordingly to new knowledge.
When the weather forecast states that it is expected that a catastrophic and unpredictable freeze will strike Florida tonight during the height of the citrus harvest, the price of Orange 's stock will instantly drop.
A later good news could trigger an increase in stock prices.
the pure expectations theory holds, which of the following statements is CORRECT? a. The maturity risk premium would be zero. b. The yield curve for Treasury securities would be flat, but the yield curve for corporate securities might be downward sloping. c. If 2-year bonds yield more than 1-year bonds, an investor with a 2-year time horizon would almost certainly end up with more money if he or she bought 2-year bonds. d. The yield curve for both Treasury and corporate bonds should be flat. e. The yield curve for Treasury securities cannot be downward sloping.
Answer: The Maturity Risk Premium would be zero.
Explanation:
The Pure Expectations Theory believes that forward rates are just a representation of what people expect Future rates to be.
For this reason therefore, it believed that the Maturity Premium is Zero amongst Long Term Treasury Securities and that the difference in interest rates attached to Treasury bonds of different maturities is simply a result of what people perceive future interest rates to look like but as for Maturity Premiums, it doesn't exist in long term Treasury Securities.
In 2019, Linda gave her son, Jonathan 425 shares of School Products Inc., common stock. Linda paid $9,350 for the stock in 2013. At the date of the gift, the FMV of the stock was $6,800. Assuming that there is no gift tax paid, if Jonathan sells the stock for $6,000, he will recognize:
Answer:
Lol
Explanation:
Goteem
You have been appointed to lead an existing group. Your boss, who informed you of the assignment, made these comments: "These people have some real issues. They have been a problem for years. They stick together like family but never seem to get much work done." Which of these would best describe this group?
Answer:
This is a group that can be defined by its high cohesiviness and low performance norms.
Explanation:
In this case, the new leader must focus on solving this problem that already exists where team members have high cohesion, but who have a low performance with regard to compliance with internal rules and procedures.
The ideal in this case would be for the leader to review the set of company policies and standards and seek to establish new rules and procedures for living and working together.
Having a cohesive team is not a weakness for an organization, the ideal is to know how to exploit the potential of each member of that team, so that each one delivers to the company an effective job that contributes to the achievement of the objectives and organizational goals.
The manager can also invest in training, redesigning the layout of work and tasks, setting deadlines for completing activities, delivering warnings to ward off inappropriate behavior during working hours, etc.
When information about two different enterprises has been prepared and presented in a similar manner, the information exhibits the characteristic of
Answer:
Comparability
Explanation:
Comparability is a characteristic of the information presentation of accounting information. It is required that the use of standardized accounting principles aid in making the accounts of two different enterprises to be compared to enable decision making among investors or for the allocation of investible resources. Without this comparability it becomes difficult to determine where resources would be put. Comparability can also be applied with the same company when it is able to compare its performance from one period to the other. This is also enabled by the use of standardized principles which have been consistently applied.
Which of the following statements best describes how a change in a firm’s stock price would affect a stock’s capital gains yield? The capital gains yield on a stock that the investor already owns has a direct relationship with the firm’s expected future stock price. The capital gains yield on a stock that the investor already owns has an inverse relationship with the firm’s expected future stock price.
Answer: The capital gains yield on a stock that the investor already owns has a direct relationship with the firm’s expected future stock price.
Explanation:
The Capital Gains on a security refers to the increase in the price of the security from the cost that it was bought at. The Yield can therefore be calculated by dividing the difference between the Security Price now and the Security Price at cost by the Security Price at Cost.
If the price is higher than the cost, that is a Capital Gain. The reverse is a loss.
Therefore, a Company's future stock price is directly related to the Capital Gains Yield of an investor who is already holding the stock. If the future price increases, the Capital Gains Yield on that stock will go up. The reverse is true.
Home equity line interest. Sean and Amy Anderson have a home with an appraised value of $180,000 and a mortgage balance of only $90,000. Given that an S&L is willing to lend money at a loan-to-value ratio of 75 percent, how big a home equity credit line can Sean and Amy obtain? How much, if any, of this line would qualify as tax-deductible interest if their house originally cost $100,000?
Answer:
$135,000
$75,000
Explanation:
Home value = $180,000
Loan to Value ratio = 75%
Formula: Maximum loan amount = Home value x loan to value ratio
Maximum loan amount = $180,000 x 75%
Maximum loan amount = $135,000
If the value of house is $100,000 then,
$100,000 x 75% = $75,000
$75,000 would qualify as Tax deductible interest
Viking Corporation is owned equally by Sven and his wife Olga, each of whom hold 160 shares in the company. Viking redeemed 80 shares of Sven's stock for $1,900 per share on December 31, 20X3. Viking has total E&P of $580,000. What are the tax consequences to Viking because of the stock redemption?
Answer:
A reduction of $152,000 in E&P because of the exchange
Explanation:
Solution
Recall that:
Sven and Olga hold shares of =160
Viking redeemed 80 shares of Sven's stock for the amount = $1,900
Total E&P = $580,000
Now
The redemption will be treated as a dividend so, because Viking decreases its E&P by the amount issued.
Which of the following products is most likely to be produced in a process operations system?
A. Airplanes
B. Cereal Bridges
C. Designer bridal gowns
D. Custom cabinets
Answer:
Cereal
Explanation:
Process operations system which is also known as either process manufacturing or process production can be defined as the way of producing a product in mass, by making use of mass production method and this product are often produce in a continuous flow.
Therefore CEREAL is the products that is most likely to be produced in a process operations system because the production of Cereal is mostly carried out or produce in a process operations system.
You plan to borrow $ 3 comma 000$3,000 from a bank. In exchange for $ 3 comma 000$3,000 today, you promise to pay $ 3 comma 210$3,210 in one year. What does the cash flow timeline look like from your perspective? What does it look like from the bank's perspective? What does the cash flow timeline look like from your perspective? (Select the best choice below.)
Answer:
There are no options included in the question, but the answers should include something like:
cash flow timeline from my perspective:
today (or year 0) $3,000
year 1 -$3,210
cash flow timeline from the bank's perspective:
today (or year 0) -$3,000
year 1 $3,210
Today (year 0) you will receive $3,000, so your cash inflow will be $3,000. On the other hand, the bank will give you the money, so they have a cash outflow of -$3,000.
In one year when you payback the loan, your cash outflow will be -$3,210, but the bank's cash inflow will be $3,210.
In its first year of operations, Swifty Corporation purchased available-for-sale debt securities costing $80,000 as a long-term investment. At December 31, 2022, the fair value of the securities is $76,400. Prepare the adjusting entry to record the securities at fair value.
Answer:
Dr Unrealized Gain/ Loss-Income $3,600
Cr Fair Value Adjustment-Trading $3,600
Explanation:
Preparation of the adjusting entry to record the securities at fair value for Swifty Corporation
Since the Corporation purchased available-for-sale debt securities at the cost of $80,000 as a long-term investment in which the fair value of the securities was the sum of $76,400 at December 31,2022, this means to record the transaction we have to Debit Unrealized Gain/ Loss-Income with the sum of $3,600 and Credit Fair Value Adjustment-Trading with same amount.
Hence, the transaction is calculated as:
Available-for-sale debt securities -Fair value of the securities
$80,000-$76,400= $3,600
Swifty Corporation Journal entry
Dec.31
Dr Unrealized Gain/ Loss-Income $3,600
Cr Fair Value Adjustment-Trading
( $80,000-$76,400) $3,600
Roan Paper Co. produces the paper used by wallpaper manufacturers.
Roan's four-stage process includes mixing, cooking, rolling and cutting.
On March 1, the Mixing Department had 300 rolls of paper in process.
During March, the Mixing Department completed the mixing process for those 300 rolls and also started and completed the mixing process for an additional 4,200 rolls of paper.
The department started but did not finish the mixing process for an additional 500 rolls, which were 20% complete with respect to both direct materials and conversion work at the end of March.
Direct materials and conversion costs are incurred evenly throughout the mixing process.
The Mixing Department compiled the following data for March:
Direct Materials Direct Labor Manufacturing Overhead Allocated Total Costs
Beginnning
inventory, Mar. 1 $350 $245 $200 $795
Costs added
during March 4,940 3,000 3,225 11,165
Total costs $5,290 $3,245 $3,425 $11,960
Required:
1. Prepare a production cost report for the Mixing Department for March.
The company uses the weighted-average method.
2. Journalize all transactions affecting the company's mixing process during March.
Assume labor costs are accrued and not yet paid.
Answer:
Roan Paper Co.
Mixing Department
Production Cost Report for March:
Direct Direct Manufacturing Total Costs
Materials Labor O/h Allocated
Beginning inventory $350 $245 $200 $795
Costs added during
March 4,940 3,000 3,225 11,165
Total costs $5,290 $3,245 $3,425 $11,960
less Ending inventory $115 $71 $74 $260
Cost of production $5,175 $3,174 $3,351 $11,700
2. General Journal:
Date Description Debit Credit
March
Cost of production $11,700
Direct Materials $5,175
Direct Labor $3,174
Manufacturing overhead $3,351
To record the cost of production for march.
Direct Materials costs $5,175
Direct Labor costs $3,174
Manufacturing overhead $3,351
Cash Account $8,526
Wages Payable $3,174
To record costs of materials, labor and overhead.
Explanation:
a) Data and Calculations for March:
Direct Direct Manufacturing Total Costs
Materials Labor O/h Allocated
Beginning inventory $350 $245 $200 $795
Costs added during
March 4,940 3,000 3,225 11,165
Total costs $5,290 $3,245 $3,425 $11,960
Total units = 5,000 ( Beginning = 300, March started = 4,200 and Ending = 500 units)
Beginning inventory of 300 and started and completed, 4,200 were 100% complete = 4,500
Ending inventory of 500 were 20% complete = 100 units.
b) Calculation of Equivalent units:
Direct Direct Manufacturing Total Costs
Materials Labor O/h Allocated
Units completed 4,600 4,600 4,600 4,600
Ending inventory 100 100 100 100
Production for March 4,500 4,500 4,500 4,500
Unit cost per
equivalent unit $1.15 $0.71 $0.74 $2.60
Cost of Ending WIP $115 $71 $74 $260
Cost of production $5,175 $3,174 $3,351 $11,700
b) Equivalent units are the units under production multiplied by their percentage of completion. Usually, completed units have 100% completion, while work in process do not have 100% completion with respect to conversion costs, especially. The purpose of calculating equivalent units is to determine accurate costs of units completed.
c) The weighted-average method in allocating production costs means that the beginning inventory, units started and completed in the period, and the equivalent units of ending inventory are added. Then the costs of materials, labor, and overhead are allocated based on the average costs.
a. Prepare a cost of goods manufactured statement for January.
b. Determine the cost of goods sold for January.
Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows:
Inventories January 1 January 31
Materials $314,000 $276,800
Work in process 216,000 239,800
Finished goods 163,200 189,000
January 31
Direct labor $567,000
Materials purchased during the month 606,600
Factory overhead incurred during the month:
Indirect labor 60,520
Machinery depreciation 32,000
Heat, light, and power 12,200
Supplies 8,220
Property taxes 8,880
Miscellaneous costs 16,460
Answer:
a.Cost OF Goods Manufactured $ 1324,680
b.Cost OF Goods Sold 1298,880
Explanation:
Sandusky Manufacturing Company
Cost of Goods Manufactured Statement
For the Month Ended January 31
Materials Inventories Beginning $314,000
Add Materials purchased during the month 606,600
Less Materials Inventories January 31 Ending $276,800
Total Materials Used $ 643,800
Direct labor $567,000
Factory overhead incurred during the month: $ 138280
Indirect labor 60,520
Machinery depreciation 32,000
Heat, light, and power 12,200
Supplies 8,220
Property taxes 8,880
Miscellaneous costs 16,460
Total Manufacturing Costs 1349,080
Add Work in process Beginning 216,000
Cost OF Goods Available For Manufacture $ 1565,080
Less Work in process Ending 239,800
Cost OF Goods Manufactured $ 1325,280
The Cost OF Goods Manufactured Statement is obtained by the following formula
Cost OF Goods Manufactured = Materials used+ direct labor+ FOH + WIP Beginning - WIP Ending.
Sandusky Manufacturing Company
Cost of Goods Sold Statement
For the Month Ended January 31
Cost OF Goods Manufactured $ 1325,280
Add Finished goods Beginning 163,200
Cost OF Goods Available For Sale 1488,480
Less Finished goods Ending 189,000
Cost OF Goods Sold 1299,480
The Cost OF Goods Sold Statement is obtained by the following formula
Cost OF Goods Sold = Cost OF Goods Manufactured+ FG Beginning - FG Ending.
On January 1, 2021, Tabitha Designs purchased a patent for $240,000 giving it exclusive rights to manufacture a new type of synthetic clothing. While the patent had a remaining legal life of 15 years at the time of purchase, Tabitha expects the useful life to be only eight more years. In addition, Tabitha purchased equipment related to production of the new clothing for $140,000. The equipment has a physical life of 10 years, but Tabitha plans to use the equipment only over the patent's service life and then sell it for an estimated $20,000. Tabitha uses straight-line for all long-term assets. The amount to expense in 2024 related to the patent and equipment should be:
Answer:
The amount to expense in 2024 related to the patent and equipment should be: $45,000.
Explanation:
Note that Tabitha uses straight-line Method for all long-term assets.
Straight lime method charges a fixed amount of expense (depreciation / amortization) over the period of use of an asset.
Depreciation / Amortization Charge = (Cost - Residual Value) / Estimated Useful Life
Patent = $240,000 / 8 years
= $30,000
Equipment = ($140,000 - $20,000) / 8 years
= $15,000
Conclusion :
The amount to expense in 2024 related to the patent and equipment should be: $45,000 ( $30,000 + $15,000).
Job-Order Costing and Decision Making [LO2-1, LO2-2, LO2-3]
Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production 225,000
Fixed manufacturing overhead cost $ 4,275,000
Variable manufacturing overhead cost per machine-hour $ 2.00
Required:
1. Compute the plantwide predetermined overhead rate.
2. During the year, Job P90 was started, completed, and sold to the customer for $3,700. The following information was available with respect to this job:
Direct materials 1,702
Direct labor cost $ 1,221
Machine-hours used 84
Compute the total manufacturing cost assigned to Job P90.
Answer:
a. $21 per machine hours
b. $4,855
Explanation:
a. The computation of the plantwide predetermined overhead rate is shown below:
Plantwide predetermined overhead rate is
= Variable overhead cost rate per machine hour + Fixed overhead cost rate per machine hour
= $2 + (fixed manufacturing overhead cost ÷ Estimated machine hours)
= $2 + ($4,275,000 ÷ 225,000 machine hours)
= $2 + $19
= $21 per machine hour
b. Now the total manufacturing cost assigned is
Particulars Amount
Direct material $1,702
Direct labor $1,221
Variable manufacturing overhead $168
(84 × $2)
Total variable cost $3,091
Add:
Fixed manufacturing overhead
(84 × $21) $1,764
Total manufacturing cost assigned
to Job P90 $4,855
tock is trading at $100 and you buy a put option on it with one year to expiration and a strike price of $110. The put premium is $15. What is the maximum profit you can make on this put option if you wait until expiration
Answer:
The answer is -$5
Explanation:
A put option gives its owner/holder the right but not the obligation to sell. The holder of a put option is expecting the price of the underlying asset(stock) to drop.
The formula is:
Profit = max(0, X - St) - P
where X is the strike or exercise price
St is the market value or the spot price of the underlying asset
P is the premium
max(0, $110 - $100) - $15
10 - $15
-$5
In the __________ phase of the training process, organizational and employee performance issues are considered to determine if training can help.
Answer:
needs assessment.
Explanation:
The needs assessment phase corresponds to the analysis that the company conducts on the performance of employees and identifies if there are any flaws that can be corrected with the aid of training.
Therefore, it is necessary for the company to define what are the goals and objectives that can be achieved in this process and to define which type of training will be most effective for the development of the employees' skills and competences to reach the determined objectives.
There are several reasons why companies need to assess whether there is a need for training, some are usually the result of new hires, job redesign, changes in organizational processes, new systems, technologies, etc.
It is necessary that the data collection for the needs assessment be carried out through research and constant monitoring of the tasks, in order to identify what can be improved in the company from training.
This method is effective for organizations to increase the capacity of employees by encouraging learning and motivation to work, in addition to reducing employee turnover and unnecessary expenses, in addition to being a process that encourages continuous improvement, which is essential for the processes organizations operate at their optimal capacity.
You can determine a company’s cash situation by analyzing the cash flow statement. The cash flow statement also helps determine whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets.
Which of the following is true for the statement of cash flows?
a. It reflects cash generated and used during the reporting period.
b. It reflects revenues when earned.
Answer: a. It reflects cash generated and used during the reporting period
Explanation:
The Cash flow statement is very important and is useful to various stakeholders in a company with the most important being the Company Management itself and Creditors.
Management are able to use the Cash flow statement to see how much actual cash was spent in the year as well as how much was used. This is important because the Income statement contains entries that might show revenue that have not being received or expenses such as depreciation that did not impact the actual cash the company has. The Cash flow statement fixes this by showing those actual figures thus enabling the company to plan better.
It is also useful to Creditors so that they see if a company is able to pay them for the period.
Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 21 years Coupon rate: 9 percent Semiannual payments Calculate the price of this bond if the YTM is (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):
Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 21 years Coupon rate: 9 percent Semiannual payments Calculate the price of this bond if the YTM is 6% (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):
Answer:
Price of bond = $982.63
Explanation:
The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond for Microhard can be worked out as follows:
Step 1
PV of interest payments
Semi annul interest payment
= 9% × 1000 × 1/2 = 45
Semi-annual yield = 6%/2 = 3 % per six months
Total period to maturity (in months)
= (2 × 21) = 42 periods
PV of interest =
45 × (1- (1+0.03)^(-21)/0.03)= 693.6
Step 2
PV of Redemption Value
= 1000 × (1.03)^(-21×2) =288.95
Price of bond
= 693.6 + 288.95 =982.63
Price of bond = $982.63